Financial Performance - For the six months ended September 30, 2023, the Group recorded an unaudited consolidated revenue of HK$659.8 million, representing an increase of 16.5% from HK$566.4 million for the same period last year[31]. - The unaudited consolidated loss for the six months ended September 30, 2023, was HK$108.1 million, compared to a net loss of HK$77.6 million for the same period in 2022, marking a 39.3% increase in net loss[12]. - The increase in net loss is primarily attributed to higher interest expenses and a further decrease in the revaluation of investment properties and properties under development for sale[12]. - The Group's overall financial performance reflects challenges, with increased losses and varying revenue across divisions, necessitating strategic adjustments moving forward[68]. Revenue by Division - The revenue of the Construction Division for the six months ended 30 September 2023 was HK$446.1 million, up 6.9% from HK$417.5 million in the previous year[45]. - The Interior and Renovation Division recorded revenue of HK$141.4 million, representing a 22.3% increase from HK$115.6 million for the same period in 2022[38]. - The Building Materials Division saw revenue rise to HK$57.8 million, a significant increase of 181.5% compared to HK$20.5 million in the prior year[40]. - The Property Development Division recorded no revenue for the six months ended 30 September 2023, consistent with the same period in 2022[53]. - The Property Investment Division recorded a revenue of HK$37.2 million for the six months ended September 30, 2023, up from HK$29.9 million in the same period last year, representing a growth of approximately 24.4%[92]. - The Property Agency and Management Division's revenue decreased to HK$3.1 million for the period under review, down from HK$8.9 million for the same period last year, reflecting a decline of approximately 65.2%[98]. - The Health Products Division recorded a revenue of HK$7.6 million for the six months ended 30 September 2023, up from HK$6.1 million for the same period in 2022, representing a growth of approximately 24.6%[103]. Dividends and Shareholder Returns - The Board has resolved to pay an interim dividend of HK1.0 cent per share for the six months ended September 30, 2023, down from HK2.5 cents for the same period in 2022[13]. - The dividend is expected to be paid to shareholders on December 8, 2023[13]. Strategic Focus and Market Conditions - The Group continues to focus on expanding its construction contracts, including major projects awarded during the period[17]. - The Group's financial position reflects ongoing challenges in the real estate market, impacting property valuations and development[12]. - The management is actively exploring new strategies to mitigate losses and enhance operational efficiency[12]. - The Group's performance indicates a need for strategic adjustments in response to market conditions and financial pressures[12]. - The Group's Property Development and Investment Divisions are closely monitoring local and global economic and political developments to adapt accordingly[118]. Construction and Development Projects - Major construction works undertaken during the period included public housing developments at Java Road and Hin Fat Lane, Tuen Mun[45]. - The Group received the Silver Award in the Life First 2023 Walk the Talk Award for the construction of public housing development at Hin Fat Lane, Tuen Mun[38]. - The Group's ongoing residential development projects include land conversion applications that have been completed, with development work currently in progress[88]. - The Group's joint venture disposed of land for Phase 2 and Phase 3 development, with the disposal completed in October 2023[55]. - The joint venture project Johnson Place, in which the Group has a 50% interest, has received approval for the planning application for bonus plot ratio, and demolition of the existing building will commence soon[90]. Financial Position and Liquidity - The Group's total bank balances and cash decreased from HK$399.5 million as of March 31, 2023, to HK$346.0 million as of September 30, 2023[123]. - The current ratio declined from 1.85 times as of March 31, 2023, to 0.79 times as of September 30, 2023[123]. - The Group has access to bank facilities totaling HK$3,479.5 million, with HK$1,696.4 million in bank loans drawn down as of September 30, 2023[124]. - The Group's liquidity position is expected to remain healthy with sufficient financial resources to meet obligations and future development requirements[125]. Share Repurchase Activity - The group repurchased 17,964,000 shares during the six months ended September 30, 2023, for a total consideration of approximately HK$19,999,000[155]. - The total number of shares repurchased in the six months ended September 30, 2022, was 2,568,000, indicating a significant increase in repurchase activity in the current period[200]. - During the year ended March 31, 2023, the company repurchased 20,644,000 shares for a total consideration of approximately HK$23,866,000, with 15,396,000 shares cancelled in that year and 5,248,000 shares cancelled in the six months ended September 30, 2023[172][173]. Environmental and Social Responsibility - The Group is actively researching and implementing environmentally friendly technologies and green building materials in response to global concerns for environmental protection[113]. - The Health Products Division aims to expand online sales channels and engage in social media promotions to capture consumer purchasing behavior post-COVID-19[119]. Market Outlook - The Hong Kong Government plans to increase the supply of public housing to 300,000 units over the next decade, maintaining a housing supply target of 430,000 units with a 70:30 ratio of public to private units[112]. - More than 19,000 private residential units are expected to be completed each year for the five years beginning in 2023[112]. - The construction industry is expected to benefit from new projects driven by infrastructure spending and housing development, providing additional opportunities for growth[117]. - The Labour Importation Scheme for the construction sector is expected to help address labor shortages and an aging workforce[112].
兴胜创建(00896) - 2024 - 中期财报