Financial Performance - Revenue for the six months ended September 30, 2023, was HKD 194,597,000, an increase of 7.5% compared to HKD 181,461,000 for the same period in 2022[7] - Gross profit for the same period was HKD 32,604,000, up 83.4% from HKD 17,779,000 year-on-year[7] - Operating profit decreased to HKD 16,681,000 from HKD 38,895,000, reflecting a decline of 57.1%[7] - The company reported a loss attributable to equity holders of HKD 12,695,000, compared to a profit of HKD 27,088,000 in the previous year[9] - Basic and diluted loss per share was HKD 4.67, compared to earnings of HKD 9.96 per share in the same period last year[7] - Total revenue for the group was HKD 194,597,000, reflecting a growth of 7% from HKD 181,461,000 in the previous year[28] - The group reported a net loss of HKD 12,695,000 for the period, compared to a profit of HKD 27,088,000 in the previous year[71] Assets and Liabilities - Total assets decreased to HKD 147,656,000 from HKD 207,441,000, a decline of 28.8%[12] - Current liabilities increased to HKD 56,071,000 from HKD 84,581,000, indicating a reduction of 33.8%[12] - The company's net assets decreased significantly to HKD 39,800,000 from HKD 76,967,000, a drop of 48.2%[12] - Cash and cash equivalents decreased to HKD 57,244,000 from HKD 68,651,000, a reduction of 16.5%[12] - The total accounts payable as of September 30, 2023, was HKD 5,306,000, a decrease from HKD 5,912,000 as of March 31, 2023, representing a decline of 10.2%[52] - The total lease liabilities as of September 30, 2023, amounted to HKD 114,000, compared to HKD 32,888,000 as of March 31, 2023[54] Cash Flow - Net cash inflow from operating activities for the six months ended September 30, 2023, was HKD 54,155,000, a decrease of 27% from HKD 74,441,000 in 2022[16] - The net cash inflow from investing activities was HKD 9,968,000, compared to a cash outflow of HKD 5,463,000 in the previous year, primarily due to a decrease in fixed deposits by HKD 10,000,000[78] Income and Expenses - Total other income for the six months ended September 30, 2023, was HKD 4,772,000, compared to HKD 4,466,000 for the same period in 2022, reflecting an increase of 6.8%[29] - Interest income significantly increased to HKD 1,014,000 in 2023 from HKD 74,000 in 2022, marking a growth of 1,267.6%[29] - Financing costs decreased to HKD 2,379,000 for the six months ended September 30, 2023, down from HKD 2,620,000 in 2022, a reduction of 9.2%[34] - Direct fuel costs decreased to HKD 31,380,000 in 2023 from HKD 36,508,000 in 2022, a decline of 14.1%[36] - Employee benefits expenses amounted to HKD 97,289,000, representing 52.0% of total costs, an increase from 50.8% in the previous year due to rising labor costs[89] Government Subsidies and Dividends - The group received government subsidies of HKD 225,000 for the acquisition of properties, machinery, and equipment[16] - Dividends paid increased significantly to HKD 24,472,000 from HKD 8,157,000 in the previous year, marking a rise of 200%[16] - The company received no government subsidies in the current period, compared to HKD 37,409,000 in the previous period, indicating a significant decrease[35] - No interim dividend was declared for the six months ended September 30, 2023, while a final dividend of HKD 24,472,000 was approved for the previous fiscal year[40] Operational Insights - The passenger volume has continued to recover following the end of the COVID-19 pandemic, contributing to improved operational performance[68] - The group faced challenges in recruiting and retaining drivers, leading to increased labor costs by 4.2% to HKD 75,049,000[74] - The company is facing challenges in recruiting and retaining drivers, but has received approval to bring in experienced drivers from mainland China, expected to arrive within one to two months[93] - The introduction of skilled drivers from mainland China aims to enhance service quality and operational capacity, with comprehensive training programs planned to ensure adaptation to local regulations and procedures[93] - The expansion of the Hong Kong railway network presents challenges for the minibus industry, but the company believes that a balanced transportation system, including cooperation between rail and minibuses, is essential to meet commuter needs[94] Future Outlook - Management expects that upcoming fare increase applications will contribute to revenue growth, despite ongoing operational pressures from high fuel prices and labor costs[92] - Passenger volume has not fully recovered to pre-pandemic levels, particularly during peak evening hours, but management is optimistic about improvements in the second half of the year due to ongoing economic stimulus measures and local economic recovery[92] Corporate Governance - The company has complied with the Corporate Governance Code during the six months ending September 30, 2023[105] - The Audit Committee, consisting of three independent non-executive directors, reviewed the unaudited interim financial information on November 30, 2023[106] - The executive directors include the chairman and CEO, with a total of four executive directors and three independent non-executive directors[108]
进智公共交通(00077) - 2024 - 中期财报