Revenue Performance - Revenue for the six months ended 30 September 2023 amounted to approximately HK$155,868,000, a decrease of 13.3% compared to HK$179,842,000 for the same period in 2022[12] - The Group's total revenue decreased by approximately HK$23,974,000 or approximately 13.3%, from approximately HK$179,842,000 for the six months ended 30 September 2022 to approximately HK$155,868,000 for the Reporting Period[25] - Revenue from foundation construction works decreased by approximately 23.3%, from approximately HK$150,009,000 to approximately HK$115,005,000, due to a decrease in the number of sizeable projects tendered[28] - Revenue from ground investigation services increased by approximately 43.7%, from approximately HK$28,150,000 to approximately HK$40,460,000, attributed to an increase in sizeable projects tendered[29] - Revenue from financial services represented approximately 0.3% of total revenue, a decrease from 0.9% in the previous year[23] - No revenue was generated from the trading of beauty and skin care products during the Reporting Period, consistent with the previous year[24] Profitability - Profit attributable to equity shareholders for the Reporting Period was approximately HK$18,378,000, significantly up from HK$473,000 in the previous year[14] - Basic and diluted earnings per share for the Reporting Period were approximately HK cents 1.98, compared to HK cents 0.05 for the same period in 2022[14] - The Group's gross profit amounted to approximately HK$41,175,000 for the Reporting Period, compared to approximately HK$26,004,000 for the six months ended 30 September 2022[32] - The overall gross profit margin during the Reporting Period was approximately 26.4%, an increase from approximately 14.5% for the previous period[32] - Profit from operations rose significantly to HK$25,062,000, compared to HK$6,700,000 in the previous year, marking a 273.5% increase[171] - Profit before taxation reached HK$20,475,000, a substantial increase from HK$1,272,000 in the prior year[171] Expenses and Costs - General and administrative expenses decreased by approximately 31.8% to approximately HK$17,055,000 from approximately HK$24,998,000[47] - Finance costs decreased to approximately HK$4,587,000 from approximately HK$5,386,000, primarily due to partial repayment of amounts due to a related company[48] - The total remuneration cost incurred by the Group for the reporting period was approximately HK$31,643,000, slightly up from HK$31,526,000 for the six months ended September 30, 2022[165] Credit and Loan Management - The Group recognized a reversal of expected credit losses of approximately HK$9,102,000, resulting in an aggregate expected credit loss of approximately HK$26,148,000 as of 30 September 2023[61] - Loan receivable A was past due with an outstanding principal of approximately HK$5,960,000 as of 30 September 2023, and the last installment is due on or before 31 October 2023[69] - Loan receivable B has been past due since June 2020, with an outstanding principal of approximately HK$14,900,000 as of 30 September 2023, and the last installment is due on or before 30 September 2025[72] - The total outstanding balance for Loan receivable B was approximately HK$14,900,000, with a full provision made for this amount due to significant credit risk increases since initial recognition[81][82] - The Group has initiated winding up procedures against the customer responsible for Loan receivable B, which was overdue since June 2020, but withdrew the petition after signing a supplemental agreement in July 2023[81][82] Financial Position - As of September 30, 2023, the Group had a total outstanding loan principal amount of approximately HK$20,860,000, down from approximately HK$31,900,000 as of March 31, 2023[105] - The Group's net current assets rose to approximately HK$122,594,000 as of September 30, 2023, an increase of approximately HK$20,983,000 from HK$101,611,000 as of March 31, 2023[138] - Cash and bank balances amounted to approximately HK$127,489,000 as of September 30, 2023, compared to approximately HK$116,478,000 as of March 31, 2023[142] - The total current liabilities were HK$236,311,000 as of September 30, 2023, slightly up from HK$234,216,000 as of March 31, 2023, indicating a marginal increase of 0.9%[174] Use of Proceeds - The net proceeds from the placing of 160,000,000 new ordinary shares amounted to approximately HK$134.0 million[112] - Approximately HK$20.8 million of the proceeds was used for investment and financial services, with plans to utilize up to HK$36.5 million for developing the money lending business in the next 12 months[118] - The Group intended to change the use of up to approximately HK$76.7 million of the outstanding net proceeds to fund the acquisition of approximately 51.315% of Blue Marble Limited, which had a total consideration of HK$320,000,000[118] - The planned use of net proceeds includes funding further possible acquisitions, with approximately HK$70.7 million allocated for this purpose[117] Shareholder Matters - The Share Consolidation was approved by shareholders, consolidating every ten existing shares into one consolidated share, effective November 22, 2023[162] - The Share Consolidation aims to comply with trading requirements and reduce transaction costs, making shares more attractive to a broader range of investors[162] Overall Financial Review - The Group's financial review indicates a focus on managing credit risks associated with trade receivables and loan receivables amid challenging economic conditions[79][81] - The Group's liquidity position is maintained through prudent financial management and ongoing credit assessments of customers[148] - The Group's audit committee has reviewed the unaudited condensed consolidated interim financial information[184] - The Group operates four reportable segments, including foundation construction, which serves clients in Hong Kong[200]
宏基集团控股(01718) - 2024 - 中期财报