Revenue Performance - Revenue decreased by approximately HK$28.9 million, or 5.9%, from approximately HK$490.0 million in the last period to approximately HK$461.1 million in the current period[11]. - Revenue for the six months ended September 30, 2023, was HK$461,149,000, a decrease of 5.9% compared to HK$489,954,000 for the same period in 2022[124]. - Revenue from the supply, installation, and maintenance of mechanical ventilation and air conditioning (MVAC) systems was HK$279,467,000, down 28.7% from HK$391,924,000 in 2022[149]. - Revenue from low voltage electrical system services increased significantly to HK$181,682,000, up 85.2% from HK$98,030,000 in 2022[149]. - The Group's revenue is solely derived from electrical and mechanical engineering services, focusing on the supply, installation, and maintenance of mechanical ventilation and air-conditioning systems and low voltage electrical systems in Hong Kong[145]. Project Awards and Contributions - The Group was awarded 3 projects in the current period with an aggregate contract sum of approximately HK$158.4 million, down from HK$185.5 million in the previous year[12]. - Major projects awarded include MVAC system installation for a property development at Aberdeen, Hong Kong, with a contract sum of HK$103.7 million[16]. - The contract sum for MVAC system installation for a housing development at Kai Tak, Kowloon, is HK$31.0 million[16]. - The five largest projects undertaken in the current period contributed significantly to revenue, with specific details to be outlined[20]. - Revenue contribution from MVAC system projects accounted for approximately 60.6% in the current period, compared to 80.0% in the previous year[19]. - The Group's revenue from low voltage electrical system projects accounted for approximately 39.4% in the current period, up from 20.0% in the previous year[19]. Financial Performance - The Group recorded a loss before taxation of approximately HK$12.5 million, compared to a loss of HK$11.4 million in the previous year, with an effective tax rate of approximately 12.2%[44]. - Loss attributable to owners of the Company was approximately HK$11.0 million for the Current Period, compared to HK$9.7 million in the previous year[45]. - Gross profit slightly increased by approximately HK$0.3 million, or 10.3%, from approximately HK$2.9 million to approximately HK$3.2 million, with a gross profit margin increase of 0.1 percentage points to approximately 0.7%[32]. - Total comprehensive loss for the period was HK$10,977,000, compared to HK$9,736,000 in the same period last year, indicating an increase of 12.8%[124]. - Basic loss per share was HK(2.7 cents), compared to HK(2.4 cents) for the same period in 2022, representing a 12.5% increase in loss per share[124]. Cash Flow and Liquidity - The Group held bank balance and cash of approximately HK$36.0 million as of 30 September 2023, down from HK$61.4 million as of 31 March 2023[48]. - The current ratio of the Group was approximately 1.7 times as of 30 September 2023, compared to 1.6 times as of 31 March 2023[49]. - For the six months ended September 30, 2023, the net cash used in operating activities was HK$128,918,000, compared to HK$45,953,000 for the same period in 2022, indicating a significant increase in cash outflow[133]. - The cash and cash equivalents at the end of the period decreased to HK$35,985,000 from HK$83,111,000 at the end of the previous period[133]. - The total cash used in operations was HK$128,051,000, reflecting a substantial increase in operational cash outflows compared to the previous year[133]. Capital Structure and Borrowings - As of 30 September 2023, the Group's capital structure consisted of equity of approximately HK$233.1 million and bank borrowings of HK$40.0 million[46]. - As of September 30, 2023, the Group's total bank borrowings amounted to HK$40.0 million, compared to nil as of March 31, 2023[56]. - The Group's gearing ratio was approximately 17.2% as of September 30, 2023, up from 0% as of March 31, 2023[57]. - New bank loans raised amounted to HK$40,000,000 during the financing activities, contributing to a net cash inflow of HK$38,601,000[133]. Employee and Operational Costs - Total staff costs for the current period were approximately HK$54.4 million, compared to HK$51.8 million in 2022[76]. - Total employee costs for the period amounted to approximately HKD 54.4 million, compared to HKD 51.8 million in 2022, reflecting a year-on-year increase of about 5%[80]. - Administrative expenses were HK$13,991,000, slightly higher than HK$13,756,000 in the previous year, indicating a 1.7% increase[124]. - Salaries for key management personnel increased to HK$3,452,000 for the six months ended 30 September 2023, up from HK$3,319,000 in the previous year, reflecting a growth of approximately 4%[194]. Shareholding and Corporate Governance - As of September 30, 2023, Yu Cheung Choy held a long position of 246 million shares, representing 61.50% of the issued share capital[94]. - Lau Man Ching held a long position of 54 million shares, representing 13.50% of the issued share capital[94]. - The company has adopted the Corporate Governance Code and complied with all relevant provisions during the current period[86]. - The Group maintains a register of substantial shareholders, with disclosures made in accordance with the Securities and Futures Ordinance[96]. Investments and Assets - The Group's property and equipment, along with right-of-use assets, amounted to HK$20,788,000 as of 30 September 2023, up from HK$18,960,000 as of 31 March 2023[152]. - The Group's investment in unlisted funds in overseas decreased to HK$17,145,000 as of 30 September 2023 from HK$22,170,000 as of 31 March 2023, representing a decline of about 23%[192]. - The Group's investment in listed bonds includes a bond with a fixed interest of 7.95% maturing in October 2023, valued at HK$227,000[191]. - The Group recognized HK$3,238,000 of right-of-use assets and HK$3,175,000 of lease liabilities for two new lease agreements during the six months ended 30 September 2023[173]. Performance Guarantees - Performance guarantees provided by banks in favor of the Group's customers amounted to approximately HK$158.5 million as of September 30, 2023, down from HK$178.9 million[66]. - As of 30 September 2023, performance guarantees amounted to HK$157,516,000, a decrease from HK$178,899,000 as of 31 March 2023[198]. - The Group does not consider it probable that a claim will be made against it regarding the performance guarantees[199].
顺兴集团控股(01637) - 2024 - 中期财报