Financial Performance - Revenue for the six months ended December 31, 2023, was HKD 4,114.5 million, an increase of 10.8% compared to HKD 3,712.1 million for the same period in 2022[3]. - Gross profit decreased by 3.5% to HKD 516.4 million from HKD 535.0 million year-on-year[3]. - Profit attributable to shareholders was HKD 255.4 million, down 8.6% from HKD 279.5 million in the previous year[3]. - Basic earnings per share decreased to HKD 0.56 from HKD 0.61, reflecting an 8.2% decline[3]. - The interim dividend declared was HKD 0.224 per share, down from HKD 0.245 per share in the prior period[3]. - Adjusted profit excluding government subsidies was HKD 2.345 billion, a decrease of 1.5% compared to the adjusted profit of HKD 2.440 billion for the same period in 2022[3]. - The company reported a total comprehensive income of HKD 257.5 million for the period, down from HKD 278.4 million in the previous year[6]. - The company reported a net profit of HKD 255,455,000 for the period, after tax expenses of HKD 46,765,000[20]. - The adjusted profit attributable to shareholders, excluding government subsidies, was HKD 231.0 million, a decrease of 1.5% from HKD 234.5 million in the previous year[72]. Revenue Segments - The revenue from the Integrated Living Services segment was HKD 2,142,602,000, up from HKD 1,849,373,000 in the previous year, indicating a growth of about 15.9%[15]. - The revenue from the Electromechanical Engineering Services segment reached HKD 1,642,124,000, compared to HKD 1,505,943,000 in the prior period, reflecting an increase of approximately 9.1%[15]. - Revenue from Hong Kong increased to HKD 3,763,035,000 from HKD 3,488,626,000, marking a growth of 7.9%[25]. - The cleaning and pest control services segment saw a significant revenue increase of 36.4%, reaching HKD 1,128.1 million[57]. - The property and facility management services segment's revenue decreased by 7.6% to HKD 329.8 million, primarily due to a reduction in temporary government building projects[56]. Assets and Liabilities - Total assets as of December 31, 2023, were HKD 3,859.7 million, down from HKD 3,990.4 million as of June 30, 2023[7]. - The company's total liabilities decreased to HKD 3,007,126,000 as of December 31, 2023, down from HKD 3,291,013,000 as of June 30, 2023, a reduction of about 8.6%[8]. - Current assets net value was HKD 622,790,000, a decrease from HKD 723,432,000 as of June 30, 2023, representing a decline of approximately 13.9%[8]. - The company reported a decrease in lease liabilities from HKD 28,174,000 to HKD 17,470,000, a reduction of about 38.1%[8]. - The company confirmed government subsidies totaling HKD 24.4 million for the six months ended December 31, 2023, down from HKD 45.1 million in the previous year[39]. Strategic Focus and Growth - The company continues to focus on expanding its Integrated Living Services and Electromechanical Engineering Services to drive future growth[15]. - The management has indicated that the financial performance aligns with the strategic goals set for the fiscal year, with a focus on operational efficiency and market expansion[15]. - The company plans to expand its environmental services, including the installation and maintenance of water treatment systems and IoT solutions, to enhance service offerings[19]. - The group plans to leverage its workforce of over 5,000 employees by integrating innovative technologies and IoT applications to enhance service efficiency and effectiveness[84]. - The group is actively seeking market opportunities and has invested resources to enhance competitiveness in government contract tenders, aiming to increase market share[89]. Market Opportunities and Trends - The group expects strong demand for professional property management services due to government policies increasing residential unit supply over the next 10 years[84]. - The anticipated influx of high-skilled talent through new immigration plans is expected to boost housing demand, providing more opportunities for the group in sales and leasing services[84]. - The demand for security services is expected to grow significantly, driven by the need for 440,000 public and private housing units over the next decade[92]. - The environmental services sector is expected to see substantial opportunities due to increasing public demand for sustainable solutions and government initiatives[95]. - The group is focusing on smart facilities to enhance building sustainability and energy management, capitalizing on government initiatives for electric vehicle infrastructure[96]. Employee and Operational Insights - The group employs over 12,000 staff and manages over 80 municipal vehicles, showcasing its extensive operational capacity in the cleaning and pest control sector[44]. - Employee costs, including salaries and benefits, amounted to HKD 1.7566 billion for the period, up from HKD 1.5166 billion in the previous year, indicating a growth driven by the increase in employee numbers[82]. - The group has a strong team of over 500 trained technicians, ensuring smooth operation and compliance with legal requirements in property and facility management[86]. - The group has implemented technology applications in over 120 sites to enhance operational efficiency and provide top-notch services[85]. Corporate Governance and Compliance - The company has complied with all provisions of the corporate governance code, except for provision F.2.2, which requires the chairman to attend the annual general meeting[105]. - The chairman, Dr. Zheng Jiachun, was unable to attend the 2023 annual general meeting due to prior commitments, with Mr. Du Huikai acting as the chairman for the meeting[106]. - The audit committee, consisting of five independent non-executive directors, reviewed the unaudited interim financial statements for the six months ending December 31, 2023[107]. - The external auditor, PwC, conducted the review of the interim financial information in accordance with the relevant standards[107].
丰盛生活服务(00331) - 2024 - 中期业绩