Financial Performance - For the six months ended September 30, 2025, the revenue decreased to HK$51,320,000 from HK$185,663,000 in the same period of 2024, representing a decline of approximately 72.5%[13]. - Gross profit for the period was HK$955,000, down from HK$10,365,000, indicating a decrease of about 90.8%[13]. - The loss before tax for the period was HK$8,193,000 compared to a profit of HK$2,303,000 in the previous year, marking a significant turnaround[13]. - The total comprehensive loss for the period was HK$8,231,000, compared to a comprehensive income of HK$2,036,000 in the same period last year[13]. - Basic loss per share for the period was HK$0.97, compared to earnings of HK$0.26 per share in the same period last year[13]. - The Group recorded a loss of approximately HK$8.2 million for the six months ended 30 September 2025, compared to a profit of approximately HK$2.1 million for the same period in 2024, primarily due to a significant reduction in gross income from approximately HK$10.0 million to HK$1.0 million[154]. Assets and Liabilities - As of September 30, 2025, total assets less current liabilities amounted to HK$65,468,000, a decrease from HK$57,898,000 as of March 31, 2025[14]. - Current liabilities increased to HK$226,096,000 from HK$271,081,000, reflecting a reduction of approximately 16.6%[14]. - The company's net current liabilities stood at HK$66,866,000, compared to HK$58,002,000 in the previous reporting period[14]. - Non-current assets increased to HK$1,398,000 from HK$104,000, indicating a significant growth in long-term investments[14]. - The company's total equity as of September 30, 2025, was negative HK$66,129,000, compared to negative HK$57,898,000 as of March 31, 2025[16]. - The Group's financial liabilities at amortized cost total HK$226,568,000 as of September 30, 2025, compared to HK$270,913,000 as of March 31, 2025[120]. Cash Flow and Financing - Cash generated from operations for the six months ended September 30, 2025, was HK$3,151,000, a significant decrease from HK$23,857,000 in the prior year, reflecting a decline of approximately 86.8%[20]. - The Company had cash and cash equivalents of HK$899,000 at the end of the period, down from HK$5,420,000 at the end of September 30, 2024, indicating a decrease of approximately 83.4%[20]. - The Group's outstanding borrowings decreased to approximately HK$94.4 million as of 30 September 2025, down from HK$135.0 million as of 31 March 2025, all repayable on demand or within one year[156]. - The secured bank loans decreased from HK$110,344,000 as of March 31, 2025, to HK$70,768,000 as of September 30, 2025, representing a reduction of approximately 36%[99]. - The effective interest rates for secured bank loans ranged from 3.00% to 6.83% as of September 30, 2025, compared to 6.31% to 7.43% as of March 31, 2025[106]. Revenue and Contracts - For the six months ended September 30, 2025, the Group's revenue from construction services for residential properties was HK$50,429,000, a decrease of 72.7% compared to HK$184,871,000 for the same period in 2024[41]. - Revenue from contracts with customers totaled HK$51,320,000, down 72.5% from HK$185,663,000 in the previous year[41]. - Major customers included Customer A, contributing HK$31,957,000 (62.2% of total revenue) and Customer B, contributing HK$18,471,000 (36.0% of total revenue) for the period[49]. - The Group had two ongoing projects with a total contract value of HK$572.9 million, with approximately HK$50.4 million recognized as revenue during the reporting period[130]. - The Group was awarded three new projects during the reporting period, with a total contract sum of approximately HK$17.8 million[130]. Expenses and Costs - The Group's cost of services for the same period was approximately HK$50.4 million, down from HK$175.3 million in the corresponding period in 2024[140]. - Total staff costs decreased significantly to HK$2,517,000 in 2025 from HK$23,386,000 in 2024, reflecting a reduction of approximately 89.3%[64]. - Directors' remuneration was HK$735,000 for the period, down from HK$3,004,000 in 2024, indicating a decrease of about 75.6%[64]. - Finance costs decreased to approximately HK$2.6 million for the six months ended 30 September 2025, down from HK$5.0 million for the same period in 2024, due to the full settlement of loans totaling HK$44.5 million[152]. Management and Governance - The Group emphasizes the importance of risk management practices to mitigate operational and financial risks effectively[181]. - The Group has not disclosed any other interests or short positions in shares, convertible notes, or debentures by Directors or chief executives as of September 30, 2025[190]. - There are no competing business interests reported among Directors and their associates for the six months ended September 30, 2025[200]. Market Outlook and Strategy - The forecast for residential building completions in Hong Kong is 20,862 new units in 2025 and 20,098 new units in 2026, indicating a slight decline in demand for façade and curtain wall works[131]. - The Company plans to diversify operations by expanding into complementary sectors, including interior decoration, electrical and drainage works, and logistics and frozen storage warehouse[136].
宝发控股(08532) - 2026 - 中期财报