Financial Performance - The Group's revenue for the six months ended 30 September 2023 was approximately HK$317.9 million, representing an increase of approximately HK$25.3 million or 8.6% compared to HK$292.6 million for the previous period[14]. - The Group achieved a gross profit margin improvement to approximately 16.6% for the period, up from approximately 15.8% in the previous period[15]. - The Group's profit for the period increased by approximately HK$0.8 million, primarily due to an increase in gross profit of approximately HK$9.3 million, offset by the absence of government subsidies and an increase in administrative expenses of approximately HK$3.4 million[25]. - Profit for the period was HK$24,210,000, a slight increase of 3.3% from HK$23,427,000 in the prior year[82]. - Basic and diluted earnings per share rose to 4.35 HK cents, compared to 3.90 HK cents in the same period last year, reflecting a 11.5% increase[82]. - Total comprehensive income for the period ended September 30, 2023, was HK$22,967,000, compared to HK$21,658,000 for the same period in 2022[88]. Revenue Segmentation - Segment revenue for the six months ended September 30, 2023, totaled HK$317,899,000, an increase from HK$292,621,000 for the same period in 2022, representing an 8.6% growth[107]. - The Structural Engineering Works segment generated revenue of HK$288,214,000, while the Supply and Installation of Building Material Products segment contributed HK$24,460,000, and Trading of Building Material Products added HK$5,225,000[107]. - Sales to external customers in the Structural Engineering Works segment increased from HK$264,761,000 in 2022 to HK$288,214,000 in 2023, reflecting a growth of 8.9%[110]. Expenses and Costs - Administrative and other operating expenses increased by approximately 17.0% to approximately HK$23.4 million, primarily due to advance provision for year-end discretionary bonuses[16]. - Finance costs rose approximately 183.0% to approximately HK$1.7 million, driven by an increase in interest rates[17]. - Employee benefit expenses increased to HK$32,563,000 in 2023 from HK$23,290,000 in 2022, representing an increase of 39.9%[117]. - The Group's depreciation expenses for the period were HK$3,062,000, slightly up from HK$3,060,000 in the previous year[117]. Assets and Liabilities - As of 30 September 2023, the Group's current assets were approximately HK$463.9 million, while current liabilities were approximately HK$210.2 million, resulting in a current ratio of approximately 2.2 times[29]. - The Group's net current assets as of 30 September 2023 were approximately HK$253.8 million, an increase from approximately HK$246.7 million as of 31 March 2023[33]. - The total available banking and other facilities as of 30 September 2023 amounted to approximately HK$277.0 million, up from approximately HK$245.0 million as of 31 March 2023[30]. - The gearing ratio as of 30 September 2023 was 9.8%, a significant decrease from approximately 20.8% as of 31 March 2023, due to the repayment of short-term loans[32]. Corporate Governance - The company maintained a high standard of corporate governance practices, meeting all code provisions during the reporting period[70]. - The company has established an audit committee, a remuneration committee, and a nomination committee to enhance corporate governance standards[70]. - The company confirmed compliance with the Model Code for Securities Transactions by Directors throughout the reporting period[68]. Future Outlook - The outlook for the Group is positive, driven by large-scale construction activities from the Lantau Tomorrow Vision and Northern Metropolis development plans[11]. - The Group expects a steady flow of business opportunities in the coming years due to ongoing government infrastructure projects[11]. Shareholder Information - As of September 30, 2023, substantial shareholders included Success Wing Investments Limited with a beneficial ownership of 325,930,000 shares, representing 58.52% of the issued share capital[63]. - Ms. Lam Suk Lan Bonnie and Ms. Wu Janet each held interests of 393,700,000 shares, equating to 70.69% of the issued share capital as spouses of substantial shareholders[63]. Cash Flow and Investments - For the six months ended September 30, 2023, the net cash generated from operating activities was HK$42,102,000, compared to a net cash used of HK$34,843,000 in the same period of 2022[88]. - The company reported a net cash generated from investing activities of HK$9,722,000 for the six months ended September 30, 2023, compared to a net cash used of HK$386,000 in the same period of 2022[88]. Miscellaneous - The Group did not recommend a payment of an interim dividend for the six months ended September 30, 2023, consistent with the previous period[49]. - The Group did not engage in any significant acquisitions or disposals during the period[41]. - There were no significant contingent liabilities as of 30 September 2023[42]. - No significant issues related to labor disputes or difficulties in recruiting experienced staff were reported as of September 30, 2023[54].
应力控股(02663) - 2024 - 中期财报