Financial Performance - For the six months ended September 30, 2025, the company reported revenue of HK$377,247,000, an increase of 4.1% compared to HK$362,293,000 in the same period of 2024[16]. - Gross profit for the period was HK$25,334,000, reflecting a decrease of 25.2% from HK$33,863,000 in 1H2024[16]. - The company incurred a loss of HK$22,630,000 for the period, which is a 7.1% increase from the loss of HK$21,123,000 in 1H2024[16]. - Loss attributable to owners of the company was HK$19,046,000, representing a 28.2% increase compared to HK$14,856,000 in the previous year[16]. - The EBITDA for the period was reported at (HK$11,935,000), a significant increase of 248.7% from (HK$3,423,000) in 1H2024[16]. - The net loss for 1H2025 was approximately HK$21.8 million, a slight increase of HK$1.7 million compared to the net loss of HK$20.1 million for 1H2024[134]. - Loss attributable to owners of the Company for 1H2025 was approximately HK$19.1 million, compared to HK$14.9 million for 1H2024[134]. - The construction segment recorded a loss of approximately HK$7.4 million in 1H2025, compared to a loss of approximately HK$0.7 million in the corresponding period[135]. - Gross profit decreased by HK$8.5 million to HK$25.3 million in 1H2025, down from HK$33.9 million in 1H2024, mainly due to poor performance in the construction business[138]. Financial Position - The gearing ratio as of September 30, 2025, was 158.0%, up from 148.4% as of March 31, 2025[17]. - The current ratio decreased to 0.81 as of September 30, 2025, compared to 0.90 as of March 31, 2025[17]. - Cash and cash equivalents decreased to HK$43,703,000 from HK$115,170,000 as of March 31, 2025[17]. - As of September 30, 2025, the Group's total assets decreased by approximately HK$67.2 million to HK$1,144.4 million[152]. - The net current liabilities increased to HK$73.9 million as of September 30, 2025, compared to HK$44.8 million as of March 31, 2025[153]. - Total interest-bearing loans, including lease liabilities, rose to approximately HK$276.1 million as of September 30, 2025, from HK$236.4 million as of March 31, 2025, an increase of HK$39.7 million due to a finance lease for the Hefei Plant[157]. - The Group's total assets decreased by approximately HK$67.2 million to HK$1,144.4 million as of September 30, 2025, compared to HK$1,211.6 million as of March 31, 2025, attributed to a decline in trade receivables and cash[155]. Business Segments - The construction business generated revenue of approximately HK$316.3 million, a modest increase of 0.8% compared to HK$313.8 million in 1H2024[20]. - Revenue from the Environmental Protection Business increased by approximately 25.6% to approximately HK$60.9 million compared to HK$48.5 million in the first half of 2024[32]. - Revenue generated from kitchen waste treatment was approximately HK$53.43 million, up from approximately HK$45.5 million in the first half of 2024, driven by improvements in the Hefei Plant and Shenzhen Huamingsheng[35][38]. - The Hefei Plant operated at a daily capacity of around 180 tons during the period, generating revenue of approximately HK$22.50 million[36]. - The Xuancheng Plant has a planned capacity of 300 tons per day and is currently in trial commercial operation, with a treatment volume gradually increasing to 130 tons per day[37]. - The Dunhua project remains on hold due to incomplete land acquisition by the municipal government, with a planned capacity of 200 tons per day and a concession period of 30 years[42][45]. - The Guoyang project has a planned capacity of 126 tons per day and is currently 40% complete, with commercial operations yet to commence[43][45]. - The Hanzhong project, which is 80% owned by the Group, has not commenced any business activities or construction due to unresolved concession arrangements with the municipal government[46][49]. - The Hancheng project has been on hold since FY2020 due to design deficiencies in its wastewater system and related penalties, with an impairment loss of approximately HK$1.95 million recognized for project costs[51][55]. Investments and Acquisitions - The Group acquired 100% equity interest in Shanxi Tianhe for RMB 1,000,000, which is engaged in the harmless treatment of diseased livestock and poultry[60]. - The Yixing Plant project is scheduled for completion in June 2026, with approximately 92% of the construction completed as of September 30, 2025[68]. - A syndicated loan agreement for RMB 100 million was entered into for the Yixing Plant, with approximately RMB 88 million drawn down as of September 30, 2025[64]. - The Group established a joint venture, Yisheng Zhihui, with a registered capital of US$10 million, in which the Group holds a 62.5% ownership[69]. - Shenzhen Huamingsheng acquired a 30% equity interest in Zaozhuang High Energy Materials for RMB 1 million, with a cash contribution obligation of RMB 2 million and a non-cash contribution of RMB 6 million in technology management[84]. - An equity transfer agreement was signed on November 26, 2025, for the acquisition of 12% equity interest in Guangxi Ronghe Bioenergy Technology Co., Ltd. for a total consideration of RMB 24,000,000[121]. Operational Challenges - The construction market in Hong Kong is facing challenges due to economic uncertainty, which has affected the company's construction business, with expectations of keen competition in 2026[131]. - The production line at the Shenzhen facility was suspended in June 2024 and is expected to resume in January 2026 after relocation and upgrades[78]. - The Group is exposed to foreign exchange fluctuations as certain operations are denominated in RMB, and no hedging arrangements are currently in place[196]. - The Group is in the process of recovering the Dingxin Loan of HK$19.3 million, with a full provision for expected credit loss[192]. Corporate Governance - The company has changed auditors, appointing Asian Alliance (HK) CPA Limited effective April 28, 2025, following the resignation of BDO Limited[113]. - The company amended its memorandum and articles of association to reflect a new capital structure following a share consolidation effective on October 10, 2025[118]. - Internal control measures have been enhanced to prevent late announcements regarding financial assistance provisions, following a loan agreement entered into on December 26, 2022[120].
创业集团控股(02221) - 2026 - 中期财报