According to the Zhitong Finance App, Ajkbang Leasing (01496) announced that the group expects net profit of about HK$3.7 million to about HK$4.2 million for the six months ending September 30, 2023 (first half of 2024), while net profit for the six months ending September 30, 2022 (first half of 2023) is about HK$7.4 million.
The Board believes that the expected decline in net profit is mainly due to the net impact of the following:
1. Despite the increase in the Group's rental equipment leasing revenue from other construction projects and activities in Hong Kong, China, there was a net decline in the total rental income of rental equipment due to the decline in demand for rental equipment for the regional construction project in Kai Tak; and the fact that it has received rental equipment leasing revenue of about HK$7.3 million in the past, is related to the construction and operation of community isolation facilities built and operated by the Hong Kong Government of China in response to the Covid-19 pandemic in the first half of 2023, but no relevant leasing revenue was generated in the first half of 2024;
2. There were no government subsidies from the Hong Kong, China and Macau governments in the first half of 2024;
3. In the first half of 2024, revenue from the sale of property, machinery and equipment was approximately HK$3.5 million, while in the first half of 2023 it was approximately HK$5.6 million. The reason is that used trucks were sold in the first half of 2023, which constituted the main part of the proceeds from the sale of property, machinery and equipment in the first half of 2023;
4. In the first half of 2024, employee costs increased, mainly due to increased demand for equipment operation services; increased operator salaries; increased directors' remuneration; and annual employee salary increases to keep up with the human resources markets in Hong Kong, China and Singapore;
5. Exchange losses were obtained in the first half of 2024, while exchange gains were obtained in the first half of 2023. The reason for the purchase of rental machinery was that the relevant payments were recorded in euros and yen as accounts payable, while the euro and yen depreciated in the first half of 2023;
6. There were no confirmed impairment losses on property, machinery and equipment in the first half of 2024; and
7. Net reimbursement of confirmed lease receivables and trade receivables impairment losses was obtained in the first half of 2024 in the first half of 2024 based on anticipated credit loss patterns, due to a decrease in the amount of accounts receivable and an improvement in the recovery rate in the first half of 2024.