Hao Tian International Construction Investment Group (1341) H2 2024 earnings summary

Executive summary

• Reported a net loss of HK$512 million for the year ended 31 March 2024, compared to a profit of HK$108 million in the previous year, mainly due to fair value losses, share of associates' losses, and credit loss provisions.

• Revenue declined to HK$173 million from HK$246 million year-over-year, reflecting lower demand in construction machinery and reduced financial services activity.

• No dividend was declared for the year.

Financial highlights

• Gross profit decreased to HK$64 million from HK$82 million year-over-year.

• Other losses, net, amounted to HK$174 million (2023: gain of HK$76 million), mainly from fair value losses on financial assets.

• Provision for expected credit loss of financial assets was HK$37 million, compared to a reversal of HK$39 million last year.

• Share of loss of associates was HK$325 million, mainly from the Cambodia property project.

• Basic and diluted loss per share was HK6.08 cents (2023: earnings of HK1.42 cents).

Outlook and guidance

• Plans to diversify business portfolio and explore high-quality asset investments globally, especially in natural resources.

• Intends to phase out money lending business and focus on expanding financial advisory and asset management services.

• Will continue to seek property development opportunities in Cambodia and Malaysia.