Financial Performance - The company's revenue for the six months ended September 30, 2023, was approximately HKD 24,900,000, a decrease of 40.7% compared to HKD 42,000,000 for the same period in 2022[4] - The loss attributable to the owners of the company for the six months ended September 30, 2023, was approximately HKD 18,100,000, compared to a loss of HKD 8,400,000 for the same period in 2022, representing an increase of 115.5%[4] - The gross profit for the six months ended September 30, 2023, was HKD 11,339,000, down 51.1% from HKD 23,231,000 in the same period of 2022[5] - Operating loss for the six months ended September 30, 2023, was HKD 17,620,000, compared to HKD 7,989,000 for the same period in 2022, indicating a deterioration in operational performance[5] - The company reported a net loss of HKD 18,138,000 for the six months ended September 30, 2023, compared to a net loss of HKD 8,368,000 for the same period in 2022, indicating a deterioration in performance[20] - Total revenue for the six months ended September 30, 2023, was HKD 24,937,000, a decrease from HKD 42,013,000 in the same period of 2022, reflecting a decline of approximately 40.6%[20] - The company reported a pre-tax loss of HKD 8,368,000 for the six months ended September 30, 2023, compared to a loss of HKD 4,650,000 for the same period in 2022, indicating a worsening of financial performance[24] - Basic and diluted loss per share for the six months ended September 30, 2023, was HKD 18,092,000, compared to HKD 8,368,000 for the same period in 2022, reflecting an increase in losses[30] Dividend and Equity - The board of directors does not recommend the payment of an interim dividend for the six months ended September 30, 2023, consistent with the previous year[4] - The total equity attributable to the owners of the company as of September 30, 2023, was HKD 169,069,000, a slight decrease from HKD 171,706,000 as of March 31, 2023[11] - The company’s total equity as of September 30, 2023, was HKD 169,069,000, a decrease from HKD 207,623,000 at the end of the previous reporting period[20] - The company issued new shares generating HKD 17,200,000 during the period, which helped to bolster its equity position despite ongoing losses[20] Cash Flow and Liquidity - The company's cash and cash equivalents decreased to HKD 8,197,000 as of September 30, 2023, down from HKD 25,820,000 as of March 31, 2023[9] - The net current assets as of September 30, 2023, were HKD 102,498,000, compared to HKD 120,420,000 as of March 31, 2023, reflecting a decline in liquidity[11] - The company incurred a net cash outflow from operating activities of HKD 24,411,000 for the six months ended September 30, 2023, compared to HKD 6,512,000 in the previous year, representing a significant increase in cash burn[14] - Cash and cash equivalents decreased by HKD 17,623,000 during the period, ending at HKD 8,197,000 compared to HKD 17,156,000 at the end of the same period last year[14] Revenue Segments - The retail and wholesale segments generated revenues of HKD 8,133,000 and HKD 16,804,000 respectively, contributing to a total segment revenue of HKD 24,937,000[22] - The lending business generated revenue of approximately HKD 8.1 million during the six-month period, with expectations for sustainable income in the future[54] - Retail and wholesale business revenue was approximately HKD 16.8 million, down about 34.7% from HKD 25.8 million in the same period last year[56] Employee and Management - The total expenses related to employee benefits for the six months ended September 30, 2023, were HKD 9,897,000, down from HKD 12,148,000 in the same period of 2022, showing a reduction of approximately 18.5%[27] - The total remuneration for key management personnel for the six months ended September 30, 2023, was HKD 2,268,000, up from HKD 1,625,000 for the same period in 2022, representing an increase of about 39.6%[41] - The company has approximately 57 employees as of September 30, 2023, down from 89 employees a year earlier[64] Corporate Governance - The company has established an Audit Committee to review financial reports and internal control processes, consisting of four independent non-executive directors[74] - The company has complied with the corporate governance code as per GEM Listing Rules during the six-month period[73] - The company has formed a Remuneration Committee to review and set remuneration policies based on operational performance and market practices[77] - The company has established a Nomination Committee to review and recommend changes in directorship[78] - The Audit Committee has reviewed the unaudited consolidated results for the six-month period, confirming compliance with applicable accounting standards[76] Investments and Impairments - The company experienced a loss of HKD 1,662,000 from impairment of interests in associates during the reporting period, indicating challenges in its investment portfolio[20] - The company’s investment in associates showed a net decrease in value due to impairment losses, with a recorded loss of HKD 16,132,000 as of September 30, 2023[33] - The company’s share of results from associates was HKD 13,000 for the six months ended September 30, 2023, a decrease from HKD 1,287,000 in the same period of 2022[24] Financial Assets - The total value of financial assets at fair value through profit or loss increased from HKD 32,571,000 as of March 31, 2023, to HKD 35,763,000 as of September 30, 2023[35] - The fair value of listed equity securities increased to HKD 4,222,000 as of September 30, 2023, compared to HKD 954,000 as of March 31, 2023, indicating a substantial rise of approximately 342.5%[43] - The fair value of unlisted funds was HKD 27,941,000 as of September 30, 2023, slightly decreasing from HKD 28,017,000 as of March 31, 2023, a decrease of about 0.3%[43] Shareholder Information - As of September 30, 2023, Mr. Chen En-Te holds approximately 34.94% of the company's issued share capital through Baofeng Management Limited, which he fully owns[70] - The total issued and paid-up ordinary shares increased to 518,644,031 shares as of September 30, 2023, from 432,644,031 shares as of March 31, 2023, reflecting an increase of approximately 19.9%[38] Future Plans - The company proposed a rights issue to raise approximately HKD 70 million, with a subscription price of HKD 0.045 per share[60] - The company launched new product lines in pet products and human health supplements, leading to a significant increase in inventory and deposits[57]
仍志集团控股(08079) - 2024 - 中期财报