Financial Performance - The company recorded revenue of approximately HKD 359.2 million for the six months ended September 30, 2025, a decrease of about 25.2% compared to HKD 480.0 million for the same period in 2024[5]. - Net profit decreased from approximately HKD 12.2 million for the six months ended September 30, 2024, to about HKD 3.0 million for the current period, primarily due to reduced revenue and declining gross margins[5]. - Gross profit decreased from approximately HKD 34.1 million to HKD 14.5 million, with gross margin dropping from 7.1% to 4.0%, primarily due to reduced revenue and intense market competition[16]. - Net profit fell from approximately HKD 12.2 million to HKD 3.0 million, mainly attributed to decreased revenue during the period[20]. - Revenue for the six months ended September 30, 2025, was HKD 359,216,000, a decrease of 25.2% compared to HKD 479,970,000 for the same period in 2024[33]. - Gross profit for the same period was HKD 14,472,000, down 57.6% from HKD 34,118,000 in 2024[33]. - Net profit for the period was HKD 3,013,000, a decline of 75.7% compared to HKD 12,182,000 in the previous year[33]. - Operating cash flow for the six months was HKD 37,615,000, down 40.1% from HKD 62,709,000 in 2024[37]. - The group reported a total segment profit of HKD 8,098,000, down 63.2% from HKD 22,039,000 in the previous year[47]. - The profit before tax was HKD 3,013,000, a decrease of 75.3% compared to HKD 12,183,000 for the same period in 2024[58]. Revenue Breakdown - Revenue from construction projects was approximately HKD 244.8 million, contributing about 68.1% of total revenue, down from HKD 330.7 million and 68.9% in the previous period[9]. - Revenue from construction machinery leasing was approximately HKD 114.4 million, compared to HKD 149.3 million in the previous period[8]. - Revenue from construction engineering was HKD 244,779,000, down 26.0% from HKD 330,662,000 in 2024[45]. - Revenue from construction machinery leasing was HKD 114,437,000, a decline of 23.4% from HKD 149,308,000 in 2024[45]. Market Conditions - The construction market remains under pressure with residential prices facing challenges and consumer sentiment being cautious[5]. - The Hong Kong government plans to invest an additional HKD 30 billion in infrastructure and housing projects over the next three years, providing a stable demand source for the construction industry[6]. - Major ongoing projects include the Northern Metropolis Development Strategy and various railway projects, despite a generally sluggish construction market[6]. - The outlook indicates a potential slowdown in overall market demand due to the completion of major projects, although government infrastructure initiatives are expected to provide stable public sector engineering opportunities[23]. Cost Management - Administrative expenses decreased to approximately HKD 10.5 million from HKD 11.6 million, mainly due to a reduction in employee-related costs[18]. - Financing costs decreased by 49.5% to approximately HKD 3.1 million, attributed to a reduction in outstanding interest-bearing debt and lower applicable interest rates[19]. - The group employed 349 staff as of September 30, 2025, down from 467, with total employee costs of approximately HKD 81.5 million compared to HKD 123.9 million in the previous period[27]. - Cash outflow from leases totaled approximately HKD 18,631,000 for the six months ended September 30, 2025, down from HKD 35,516,000 in the same period of 2024, a decrease of about 48%[71]. Assets and Liabilities - Total assets decreased to HKD 398,957,000 from HKD 409,360,000 as of March 31, 2025[34]. - Current liabilities decreased to HKD 230,268,000 from HKD 274,311,000[34]. - The company's net asset value increased to HKD 293,724,000 from HKD 290,711,000[35]. - The total trade receivables as of September 30, 2025, were HKD 240,688,000, a decrease of 17.0% from HKD 290,105,000 as of March 31, 2025[61]. - The group had a bank balance of approximately HKD 29.8 million as of September 30, 2025, with interest-bearing debt of approximately HKD 97.1 million, resulting in a debt-to-equity ratio of 33.0%, down from 40.3%[21]. Corporate Governance - The company maintains a strong commitment to corporate governance, emphasizing transparency and accountability to enhance shareholder value[80]. - The company has complied with the corporate governance code as per the listing rules, with a focus on enhancing governance practices[81]. - The audit committee, consisting of three independent non-executive directors, has reviewed the unaudited condensed consolidated interim financial information for the period[92]. - The company is committed to strengthening its corporate governance practices to align with its business operations and development[81]. Shareholder Information - As of September 30, 2025, Mr. Hu holds 244,398,000 shares, representing approximately 58.89% of the company's total shares[83]. - The company does not plan to declare any interim dividends for the period[22]. - The company did not declare or recommend any dividends for the six months ended September 30, 2025, nor for the same period in 2024[57]. - The company has not purchased, sold, or redeemed any of its listed securities during the reporting period[90].
进升集团控股(01581) - 2026 - 中期财报