Financial Performance - The Group's revenue for the Reporting Period amounted to approximately HK$331.3 million, representing an increase of approximately HK$6.0 million, or 1.8%, compared to the same period last year[17]. - The Group's gross profit increased by approximately 48.7% or HK$7.6 million, totaling HK$23.2 million for the Reporting Period[17]. - The Group's net profit amounted to approximately HK$5.4 million, reflecting an increase of approximately HK$0.4 million, or 8.0%[17]. - For the Reporting Period, the Group's revenue increased by approximately HK$6.0 million or approximately 1.8%, from approximately HK$325.3 million to approximately HK$331.3 million, primarily due to an increase in the number of projects[24][28]. - The Group's gross profit increased by approximately HK$7.6 million or approximately 48.7%, from approximately HK$15.6 million to approximately HK$23.2 million, with a gross profit margin of approximately 7.0%, up from approximately 4.8% in the corresponding period in 2022[25][29]. - Profit before income tax increased to HK$7,272,000, up 16.9% from HK$6,223,000 in the prior year[84]. - The total comprehensive income for the period was HK$5,387,000, compared to HK$4,983,000 for the same period in 2022, reflecting an increase of 8.1%[84]. - Profit for the period attributable to equity holders of the Company was HK$5,388,000, an increase from HK$4,983,000, which is an 8% growth[154]. Expenses and Costs - Administrative expenses rose by approximately HK$3.8 million or approximately 37.6%, from approximately HK$10.1 million to approximately HK$13.9 million, mainly due to increased marketing and consulting expenses[32][37]. - Finance costs increased by approximately HK$61,000 or approximately 77.2%, from approximately HK$79,000 to approximately HK$140,000, primarily due to an increase in borrowings[33][38]. - Income tax expense increased by approximately HK$0.7 million or approximately 58.3%, from approximately HK$1.2 million to approximately HK$1.9 million, driven by an increase in deferred tax expense[34][39]. - The total staff costs incurred by the Group for the Reporting Period was approximately HK$63.3 million, compared to approximately HK$48.7 million for the corresponding period in 2022[76]. - Employee costs for the period amounted to approximately HK$63.3 million, an increase of 30% from HK$48.7 million in the same period last year[79]. - Profit before income tax for the six months ended September 30, 2023, was impacted by increased staff costs totaling HK$63,264,000, compared to HK$48,728,000 in 2022, an increase of 29.9%[141]. Cash Flow and Financial Position - As of 30 September 2023, the Group had total cash, bank balances, and pledged bank deposits of approximately HK$97.5 million, an increase from approximately HK$96.3 million as of 31 March 2023[43]. - The Group's short-term bank borrowings and corporate bonds amounted to approximately HK$6.0 million, up from approximately HK$1.9 million as of 31 March 2023, resulting in a gearing ratio of approximately 2.6%[44]. - The net cash from operating activities for the six months ended September 30, 2023, was HK$11,789,000, a decrease of 68.9% compared to HK$37,953,000 for the same period in 2022[96]. - The cash and cash equivalents at the end of the period on September 30, 2023, were HK$77,643,000, down from HK$124,223,000 at the end of September 2022[96]. - The balance of retained earnings increased to HK$159,086,000 as of September 30, 2023, up from HK$153,698,000 as of April 1, 2023[96]. - The Group's total equity as of September 30, 2023, was HK$269,027,000, an increase from HK$263,282,000 as of April 1, 2023[96]. Investments and Projects - The Group was awarded 4 projects with an original contract sum of approximately HK$505.3 million during the Reporting Period[17]. - The Group is expanding into supplementary businesses, including cross-border trading of construction materials and modular integrated construction in Hong Kong[23][27]. - There were no significant investments, acquisitions, or disposals of subsidiaries during the Reporting Period[58]. Market Outlook and Government Initiatives - The Hong Kong government forecasts a real GDP growth of 4.0% to 5.0% for the year, with a 2.0% underlying inflation rate[18]. - The construction sector is experiencing increased optimism, as indicated by the latest data from the government's Business Outlook Quarterly Survey[19]. - The Hong Kong government plans to significantly increase public housing units over the next five years and enhance land supplies[20]. Accounting Policies and Standards - The Group has adopted new or amended Hong Kong Financial Reporting Standards (HKFRSs) effective from April 1, 2023, for the preparation of its condensed consolidated interim financial statements for the six months ended September 30, 2023[109]. - The Group's significant judgements and estimates in preparing the interim financial statements remain consistent with those applied in the annual consolidated financial statements for the year ended March 31, 2023[119]. - The Group's financial reporting will not be significantly impacted by the adoption of the new or amended HKFRSs for the current and prior periods[107]. Trade Receivables and Payables - Trade receivables from third parties amounted to HK$49,140,000 as of September 30, 2023, up from HK$39,078,000 as of March 31, 2023[168]. - The expected credit loss (ECL) allowance on trade receivables increased to HK$840,000 as of September 30, 2023, from HK$262,000 as of March 31, 2023[173]. - Trade payables decreased to HK$34,576,000 as of September 30, 2023, from HK$36,702,000 as of March 31, 2023, showing a decline of approximately 5.8%[196]. Employee and Workforce - The Group employed a total of 277 full-time employees as of September 30, 2023, down from 304 as of March 31, 2023[76]. - The Group did not declare any interim dividend for the Reporting Period, consistent with the previous year[60].
龙昇集团控股(06829) - 2024 - 中期财报