Financial Performance - The company reported a pre-tax loss of HKD 12,448,000 for the six months ended September 30, 2023, compared to HKD 11,813,000 for the same period in 2022, indicating an increase of approximately 5.4% in losses year-over-year[9]. - The pre-tax profit decreased from approximately HKD 8.8 million to a loss of about HKD 25.0 million, primarily due to the reduction in gross profit[29]. - The group reported a pre-tax loss of HKD 24,986,000 for the six months ended September 30, 2023, compared to a profit of HKD 8,820,000 in the same period of the previous year[50]. - The group reported a total comprehensive income of HKD 8,820,000 for the six months ended September 30, 2023[60]. Revenue and Costs - Revenue increased from approximately HKD 98.1 million for the six months ended September 30, 2022, to approximately HKD 108.1 million for the six months ended September 30, 2023, representing a growth of about 10.1%[20]. - Direct costs rose from approximately HKD 85.4 million to approximately HKD 127.3 million, an increase of about 49.1%, primarily due to unexpected complexities in projects and additional subcontracting costs[21]. - The group incurred a gross loss of HKD 19,219,000 for the six months ended September 30, 2023, compared to a gross profit of HKD 12,776,000 in the previous year[50]. - The gross profit margin for the renovation and extension engineering segment decreased from approximately 13.4% to about 4.3%[23]. - The gross profit margin for the civil engineering segment decreased from a profit of approximately 14.7% to a loss of about 43.2%[26]. - Administrative expenses increased from approximately HKD 6.0 million to approximately HKD 6.7 million, mainly due to higher remuneration expenses[28]. Employee Costs - Employee costs, including director remuneration, amounted to HKD 12,448,000, which is an increase of 5.4% from HKD 11,813,000 in the previous year[9]. - Total employee costs for the six months ended September 30, 2023, amounted to approximately HKD 12,400,000, an increase from HKD 11,800,000 for the same period in 2022, reflecting a growth of about 5.08%[44]. - The group’s short-term benefits for key management personnel increased to HKD 2,981,000 for the six months ended September 30, 2023, compared to HKD 2,652,000 for the same period last year, representing a growth of about 12%[108]. Assets and Liabilities - As of September 30, 2023, the group had cash and cash equivalents totaling approximately HKD 130.6 million[36]. - The net asset value decreased to HKD 171,434,000 as of September 30, 2023, from HKD 196,420,000 as of March 31, 2023, indicating a decline of approximately 12.7%[52]. - Trade receivables as of September 30, 2023, were HKD 34,800,000, compared to HKD 18,827,000 as of March 31, 2023, indicating a significant increase in receivables[82]. - Trade payables increased to HKD 55,995,000 as of September 30, 2023, compared to HKD 42,329,000 as of March 31, 2023, reflecting a growth of about 32%[95]. - The aging analysis of trade payables shows that payables aged 1 to 30 days rose significantly to HKD 48,582,000 from HKD 21,621,000, indicating a substantial increase of approximately 125%[96]. Corporate Governance - The company is committed to achieving high standards of corporate governance to protect shareholder interests and enhance corporate value[124]. - The company has adopted the Corporate Governance Code and has complied with its principles and relevant provisions as of September 30, 2023[125]. - The audit committee consists of three independent non-executive directors, ensuring adherence to corporate governance standards[138]. Regulatory Compliance - The company confirmed compliance with the standard code of conduct for securities trading by all directors as of September 30, 2023[126]. - The company has maintained the minimum public float requirement of 25% as of November 17, 2023, after a sale of 2,500 shares[131]. - The company has applied for a temporary exemption from strict compliance with the public float requirements due to a shortfall in public holdings, which was granted until November 24, 2023[130]. Business Operations - The company focuses on renovation, extension works, and civil engineering, with its main operating subsidiaries specializing in these areas[17]. - The company operates primarily through three subsidiaries, focusing on renovation, extension works, and civil engineering services in Hong Kong[65]. - The company has not made any acquisitions of property, plant, and equipment during the reporting period, compared to HKD 307,000 in the same period last year[81]. Shareholder Information - The company did not recommend the payment of an interim dividend for the six months ended September 30, 2023, consistent with the previous year[73]. - As of September 30, 2023, Kyosei Technology Inc. holds a beneficial interest of 465,000,000 shares, representing 75% ownership[115]. - The total number of shares available for issuance under the stock option plan is 62,000,000, equivalent to 10% of the company's total issued share capital[122].
B & D STRATEGIC(01780) - 2024 - 中期财报