Financial Performance - Revenue increased from approximately HK$262.7 million for the six months ended 30 September 2022 to approximately HK$282.8 million for the six months ended 30 September 2023, representing an increase of approximately HK$20.1 million or 7.7%[12] - Gross profit decreased from approximately HK$32.0 million for the six months ended 30 September 2022 to approximately HK$29.3 million for the six months ended 30 September 2023, representing a decrease of approximately HK$2.7 million or 8.4%[12] - The Group recorded a profit and total comprehensive income for the period attributable to owners of the Company of approximately HK$16.6 million for the six months ended 30 September 2023, down from approximately HK$36.3 million for the same period in 2022[12] - Basic earnings per share attributable to owners of the Company was approximately HK1.7 cents for the six months ended 30 September 2023, compared to approximately HK4.8 cents for the same period in 2022[12] - Profit and total comprehensive income for the period decreased from approximately HK$36.3 million for the six months ended September 30, 2022, to approximately HK$16.6 million for the six months ended September 30, 2023, representing a decrease of approximately HK$19.7 million or 54.2%[43] - Operating profit decreased significantly to HK$19,050,000, a decline of 53.0% from HK$40,547,000 in the previous year[136] - The company reported a profit of HK$16,614,000 for the six months ended September 30, 2023, compared to HK$36,310,000 for the same period in 2022, indicating a decline of approximately 54.5%[143] Revenue and Projects - The increase in revenue was mainly driven by the increase in the amount of works performed by the Group in ongoing sizeable projects, including redevelopment projects at Kwai Chung Hospital and projects relating to the Kai Tak Development[16] - The Group had 60 projects on hand as of September 30, 2023, with a backlog value of approximately HK$758.8 million, compared to 53 projects and approximately HK$621.4 million as of March 31, 2023[21] - For the six months ended September 30, 2023, the Group's revenue from wet trades work was HK$282,839,000, an increase of 7.3% from HK$262,707,000 in the same period of 2022[173] - Revenue from major customers included contributions of HK$51,105,000 from Customer 1, HK$43,562,000 from Customer 2, and HK$38,646,000 from Customer 3, all exceeding 10% of total revenue for the period[177] Costs and Expenses - Gross profit margin was approximately 10.4% for the six months ended September 30, 2023, compared to 12.2% for the same period in 2022[32] - Other income decreased from approximately HK$18.6 million for the six months ended September 30, 2022, to approximately HK$0.1 million for the six months ended September 30, 2023, representing a decrease of approximately HK$18.5 million[33] - Administrative expenses increased from approximately HK$6.6 million for the six months ended September 30, 2022, to approximately HK$9.9 million for the six months ended September 30, 2023, representing an increase of approximately HK$3.3 million[34] - The cost of services increased from approximately HK$230.7 million for the six months ended September 30, 2022, to approximately HK$253.6 million for the six months ended September 30, 2023, representing an increase of approximately HK$22.8 million or 9.9%[30] - Total employee benefit expenses for the six months ended September 30, 2023, were approximately HK$16,613,000, a decrease of 10.4% from HK$18,543,000 in 2022[184] - The Group's employee benefit expenses included in cost of services were approximately HK$12,251,000 for the six months ended September 30, 2023, down from approximately HK$14,503,000 in 2022, a decrease of 15.5%[185] Dividends and Shareholder Information - The Board has resolved not to recommend the declaration of an interim dividend for the six months ended 30 September 2023 and 2022[12] - The company did not declare an interim dividend for the six months ended September 30, 2023, consistent with the decision for the same period in 2022[199] - As of September 30, 2023, Mr. Chan Kiu Sum and Mr. Chan Wing Ping each hold 750,000,000 shares, representing a 75% interest in the company[103] - Evolve Billion Limited, beneficially owned by Mr. Chan Kiu Sum (80%) and Mr. Chan Wing Ping (20%), holds a long position of 750,000,000 shares, equating to a 75% interest[111] Liquidity and Financial Position - As of September 30, 2023, the Group maintained a liquidity position with net current assets of approximately HK$319.7 million and cash and cash equivalents of approximately HK$54.2 million, compared to HK$303.6 million and HK$47.9 million as of March 31, 2023, respectively[44][49] - The company had no bank borrowings as of September 30, 2023, down from HK$5,634,000 as of March 31, 2023, indicating a complete repayment of bank loans[141] - Total liabilities decreased to HK$41,385,000 from HK$51,577,000 as of March 31, 2023, representing a reduction of approximately 19.7%[141] - Cash and cash equivalents increased to HK$54,236,000 from HK$47,942,000 as of March 31, 2023[138] Capital Expenditures and Investments - The company incurred capital expenditures of approximately HK$1.6 million for the six months ended September 30, 2023, compared to approximately HK$0.8 million for the same period in 2022[55][62] - The Group incurred capital expenditure of approximately HK$1.6 million during the six months ended September 30, 2023, compared to approximately HK$0.8 million in the same period of 2022, indicating a 100% increase[200] - There were no significant investments, acquisitions, or disposals of subsidiaries, associates, and joint ventures during the six months ended September 30, 2023[66][72] Governance and Compliance - The company has complied with the Corporate Governance Code during the reporting period, except for the separation of roles between the chairman and CEO[88] - The company has not entered into any management contracts concerning the administration of its business during the six months ended September 30, 2023[114] - The independent non-executive directors reviewed the compliance of the controlling shareholders with the Non-competition Undertaking and found no breaches[115] Market Outlook and Strategy - The Group remains cautiously optimistic about the prospects of the local construction market despite the economic slowdown in Hong Kong[22] - The Group intends to explore opportunities in overseas markets, particularly in Southeast Asia, to strengthen its income sources[23] Labor and Training Initiatives - The Group has established good business partnerships with experienced subcontractors to minimize the impact of the labor shortage in the construction industry[15] - The Group actively studies the Government's strategies for labor importation and participates in relevant forums and discussions[15] - The Group has started to develop internal training programs for potential imported workers to familiarize them with requisite standards and safety measures[15]
GC CONSTRUCTION(01489) - 2024 - 中期财报