Financial Performance - For the six months ended September 30, 2023, the group's revenue increased significantly to approximately HKD 218.0 million, representing a 124.0% increase compared to approximately HKD 97.3 million for the same period in 2022[11]. - The group's gross profit rose by approximately HKD 4.1 million or 62.1% to about HKD 10.7 million, with a gross profit margin of approximately 4.9% for the six months ended September 30, 2023[14]. - The company recorded a net loss of approximately HKD 0.4 million for the six months ended September 30, 2023, a decrease of HKD 4.3 million compared to the same period in 2022, primarily due to increased revenue and gross profit as the economy continues to recover[40]. - Revenue for the six months ended September 30, 2023, was HKD 218,039,000, a significant increase from HKD 97,288,000 in the same period of 2022, representing a growth of 124.4%[80]. - Gross profit for the same period was HKD 10,685,000, compared to HKD 6,643,000 in 2022, indicating a gross margin improvement[80]. - Loss before tax decreased to HKD 350,000 from HKD 4,653,000 year-on-year, showing a reduction in losses by approximately 92.5%[80]. - Basic and diluted loss per share improved to HKD (0.07) from HKD (0.97) in the previous year, reflecting a positive trend in earnings performance[80]. Expenses and Costs - Administrative and other operating expenses decreased by 6.9% to approximately HKD 8.1 million, down from approximately HKD 8.7 million in the same period last year[16]. - The group's financial costs increased by approximately HKD 0.3 million or 11.5% to about HKD 2.9 million, primarily due to interest on existing borrowings[16]. - Employee costs for the six months ended September 30, 2023, totaled approximately HKD 11.5 million, up from HKD 10.0 million for the same period in 2022, indicating a year-on-year increase of 15%[74]. - Total direct costs increased to HKD 207,354,000 from HKD 90,645,000, primarily driven by higher subcontracting costs which rose to HKD 143,099,000 from HKD 62,763,000[100]. - Administrative expenses rose to HKD 3,871,000 from HKD 3,103,000, marking an increase of 25%[124]. Assets and Liabilities - The asset-liability ratio increased from approximately 48.5% as of March 31, 2023, to about 50.8% as of September 30, 2023, mainly due to an increase in interest payable[18]. - The total cash and cash equivalents, along with restricted cash, amounted to approximately HKD 40.3 million as of September 30, 2023, up from approximately HKD 20.1 million as of March 31, 2023, driven by a net cash inflow from operating activities of approximately HKD 20.2 million[42]. - Current liabilities increased to HKD 95,872 thousand from HKD 28,101 thousand, representing a significant rise of approximately 241%[56]. - Non-current liabilities decreased significantly, with borrowings reduced from HKD 48,000,000 to zero, indicating improved financial stability[82]. - The company’s total liabilities included 48,000 thousand HKD due within one year as of September 30, 2023[162]. Market and Economic Outlook - The Hong Kong government forecasts a GDP growth of 3.2% for the year, with an inflation rate of 1.8%[12]. - The group anticipates a positive recovery in the renovation industry in the short term, driven by the improving economic conditions post-COVID-19[13]. - The Hong Kong government plans to increase public housing units and accelerate urban redevelopment projects, which is expected to generate significant demand for renovation projects in Hong Kong[36]. - The residential property market saw a year-on-year transaction value decline of 18%, influenced by global economic uncertainty and rising local interest rates[32]. Shareholder and Corporate Governance - The company has not declared any interim dividend for the six months ended September 30, 2023, consistent with the same period in 2022[26]. - The company and its concert parties collectively own 360,000,000 shares, equivalent to 75.0% of the total issued share capital following the completion of a sale agreement on September 22, 2023[24]. - The company has complied with all provisions of the corporate governance code as of September 30, 2023[196]. - The audit committee consists of three members, all of whom are independent non-executive directors[197]. Operational Highlights - The company continues to focus on its core business of renovation services and supply of renovation materials, with all operations based in Hong Kong[87]. - Major client A1 contributed HKD 211,141,000 to revenue, up from HKD 74,711,000 in the previous year, indicating a growth of 182%[120]. - The company reported related party compensation of HKD 2,567,000 for the six months ended September 30, 2023, compared to HKD 1,671,000 for the same period in 2022[187]. - The company has not made any significant investments, acquisitions, or disposals of subsidiaries or associated companies during the reporting period[22].
耀高控股(01796) - 2024 - 中期财报