Financial Highlights Condensed Consolidated Statement of Profit or Loss and Other Comprehensive Income During the reporting period, the company's revenue increased by 60.8% to HKD 140.22 million, driven by contact lens and computer equipment leasing businesses, but net loss significantly widened to HKD 88.43 million due to asset impairment and increased financing costs, with basic loss per share expanding from HKD 0.05 cents to HKD 0.32 cents Key Consolidated Statement of Profit or Loss Data (For the six months ended September 30) | Metric | 2023 (Thousand HKD) | 2022 (Thousand HKD) | Y-o-Y Change | | :--- | :--- | :--- | :--- | | Revenue | 140,220 | 87,203 | +60.8% | | Gross Profit | 20,061 | 3,551 | +464.9% | | Loss Before Tax | (75,683) | (36,021) | +100.1% | | Loss for the Period | (88,428) | (1,216) | +7172.0% | | Loss Attributable to Owners of the Company | (64,879) | (10,541) | +515.5% | | Basic Loss Per Share (HK cents) | (0.32) | (0.05) | +540.0% | - The significant increase in loss during the reporting period was primarily due to: 1) substantial impairment losses on production equipment and inventories in the contact lens business; 2) impairment of properties held for sale due to a weak property market; 3) inability to capitalize financing costs as major construction projects were completed; and 4) the absence of a significant tax credit present in the prior period164 Condensed Consolidated Statement of Financial Position As of September 30, 2023, the company's total assets were HKD 2.29 billion, total liabilities HKD 1.73 billion, and net assets (total equity) HKD 556.19 million, all decreasing from March 31, 2023, with a net current liability position of approximately HKD 241.85 million indicating short-term liquidity pressure Key Financial Position Data | Metric | September 30, 2023 (Thousand HKD) | March 31, 2023 (Thousand HKD) | Change | | :--- | :--- | :--- | :--- | | Total Assets | 2,287,700 | 2,378,267 | -3.8% | | Total Liabilities | 1,731,512 | 1,755,839 | -1.4% | | Net Assets (Total Equity) | 556,188 | 622,428 | -10.6% | | Net Current Liabilities | (241,845) | (225,879) | -7.1% | - Despite the net current liabilities, the Directors believe the Group has sufficient working capital for the next 12 months, considering good banking relationships and internally generated funds, thus the financial statements are prepared on a going concern basis2041 Notes to the Financial Statements Segment Reporting The Group operates six business segments, with the computer equipment leasing and trading business being the sole profitable segment, contributing HKD 10.92 million in profit, while the contact lens and property development segments incurred the largest losses of HKD 48.97 million and HKD 29.34 million respectively, with these three segments also being the primary revenue sources - The Group primarily operates six business segments: (1) Property Development; (2) Hotel Business; (3) International Business Settlement; (4) Contact Lens Business; (5) Leasing and Trading of Computer Equipment; and (6) Financing Business4472 Revenue and Results by Business Segment (For the six months ended September 30) | Business Segment | 2023 Revenue (Thousand HKD) | 2023 (Loss)/Profit (Thousand HKD) | 2022 Revenue (Thousand HKD) | 2022 (Loss)/Profit (Thousand HKD) | | :--- | :--- | :--- | :--- | :--- | | Property Development | 42,544 | (29,337) | 33,627 | (4,464) | | Hotel Business | – | – | – | – | | International Business Settlement | – | (5,030) | – | (4,078) | | Contact Lens Business | 40,066 | (48,966) | 26,376 | (22,249) | | Leasing and Trading of Computer Equipment | 57,610 | 10,922 | 27,200 | 2,007 | | Financing Business | – | 154 | – | (654) | | Total | 140,220 | (72,257) | 87,203 | (29,438) | Revenue from External Customers and Non-Current Assets by Geographical Region | Region | 2023H1 Revenue (Thousand HKD) | 2022H1 Revenue (Thousand HKD) | Non-Current Assets as of Sep 30, 2023 (Thousand HKD) | Non-Current Assets as of Mar 31, 2023 (Thousand HKD) | | :--- | :--- | :--- | :--- | :--- | | Hong Kong | 57,610 | 27,200 | 141,407 | 181,117 | | China | 82,610 | 60,003 | 494,827 | 556,788 | | Total | 140,220 | 87,203 | 636,234 | 737,905 | Management Discussion and Analysis Overall Performance Review During the reporting period, Group revenue grew by 60.8% to HKD 140.22 million, with gross profit margin significantly improving from 4.07% to 14.31% due to increased contact lens production line utilization, yet net loss dramatically widened from HKD 1.22 million to HKD 88.43 million primarily due to asset impairment losses and expensed financing costs - Revenue growth was primarily driven by increased contributions from the contact lens segment and the leasing and trading of computer equipment segment182 - Gross profit margin significantly improved to 14.31% (compared to 4.07% in the prior period), mainly due to a substantial increase in contact lens production line utilization returning to normal levels post-pandemic163 - The expanded loss for the period was mainly attributable to: HKD 27.16 million impairment of contact lens related assets, HKD 9.88 million impairment of properties held for sale, HKD 28.03 million in financing costs that could not be capitalized, and the absence of a HKD 36.08 million tax credit present in the prior period164 Business Review and Prospects Business segments showed mixed performance, with computer equipment leasing and trading becoming a core growth and profit driver with plans for reinvestment, while the contact lens business saw sales rebound after strategic investment but still faced losses, property development suffered from market weakness and impairments, international business settlement stalled due to geopolitical factors and subsidiary liquidation, and the financing business adopted a cautious approach with no new loans Property Development and Hotel Business The property development business, centered on the 'Zhenghe City' project in Liuzhou, Guangxi, generated HKD 42.54 million in revenue from approximately 6,000 square meters of sales, but segment loss expanded to HKD 29.34 million due to HKD 28.03 million in expensed financing costs and HKD 9.88 million in impairment losses from a weak market, while the hotel business is expected to commence operations in 2024 - The increase in segment loss was primarily due to the expensing of financing costs and impairment losses on properties held for sale237 - An impairment loss of HKD 9.88 million was recognized after external expert assessment, as the net realizable value was below the carrying amount209 - Construction of the hotel business building is complete, with operations expected to commence in 2024, generating revenue300 International Business Settlement Affected by the global political environment and subsidiary liquidation, this business segment made no substantial progress and generated no revenue during the reporting period, incurring a segment loss of HKD 5.03 million primarily from rent and staff costs, while the company continues to monitor opportunities for alternative clearing and settlement channels arising from de-dollarization trends - Due to geopolitical conflicts and limited development of central bank digital currencies, the settlement platform project made no substantial progress, with no additional investment during the period185 - Due to a winding-up petition filed against IBS Hong Kong, a wholly-owned Lithuanian subsidiary engaged in settlement business, this segment generated no revenue during the period, resulting in a segment loss of HKD 5.03 million186276 Contact Lens Business The contact lens business, which previously underperformed, introduced strategic investor Aier Eye Hospital Group in July 2023, leading to increased sales revenue of HKD 40.07 million due to market recovery and operational improvements, but segment loss remained high at HKD 48.97 million due to salaries, depreciation, R&D, and production equipment impairment, with the Group's stake to decrease to 34% post-transaction - The Group introduced Aier Eye Hospital Group, a listed company, as a strategic investor, selling part of its equity and injecting capital, with the Group's shareholding to decrease to 34% upon completion of the transaction240294 Contact Lens Business Performance | Metric | 2023H1 (Thousand HKD) | 2022H1 (Thousand HKD) | | :--- | :--- | :--- | | Sales Revenue | 40,066 | 26,376 | | Segment Loss | (48,966) | (22,249) | - The first installment of investor capital injection has been received, with the transaction expected to be completed in early 2024212 Leasing and Trading of Computer Equipment This business performed strongly, becoming a primary revenue and profit source for the Group, with income from leasing data storage equipment (servers) reaching HKD 57.61 million, more than doubling year-on-year, and segment profit at HKD 10.92 million; the company reinvested rental income to acquire an additional 450 servers, bringing the total to 1,410, all fully leased, providing stable income Leasing and Trading of Computer Equipment Business Performance | Metric | 2023H1 (Thousand HKD) | 2022H1 (Thousand HKD) | | :--- | :--- | :--- | | Revenue | 57,610 | 27,200 | | Segment Profit | 10,922 | 2,007 | - The company reinvested rental income to acquire an additional 450 servers, bringing the total to 1,410 units, all fully leased, providing a stable income source for the Group260 - The company is optimistic about the demand for secure, encrypted cloud storage and is monitoring Hong Kong's cryptocurrency-friendly policies, potentially leading to further involvement in cryptocurrency trading and asset production in the future242301 Financing Business Given macroeconomic uncertainties, the Group adopted a cautious strategy for its financing business, issuing no new loans during the reporting period, while continuing to monitor fully impaired overdue loans by inventorying collateral and exploring recovery possibilities - Due to the uncertain macroeconomic environment, the Group adopted a cautious strategy for its future financing business, with no new loans issued during the period261 - For impaired overdue loans, the company continues to monitor collateral status and explore recovery opportunities216 Financial Review As of the reporting period end, the Group recorded net current liabilities of HKD 241.85 million and a current ratio of 0.85, indicating short-term liquidity strain; total borrowings were approximately HKD 825 million, with a debt-to-equity ratio of 1.48, slightly up from the period start, funded primarily by internal resources, borrowings, and past equity financing, with approximately HKD 24.38 million in unutilized bank facilities Key Financial Ratios | Metric | September 30, 2023 | March 31, 2023 | | :--- | :--- | :--- | | Current Ratio | 0.85 | 0.86 | | Debt-to-Equity Ratio (Total Borrowings/Total Equity) | 1.48 | 1.45 | - As of September 30, 2023, bank balances and cash were approximately HKD 332 million, with net current liabilities of approximately HKD 241.85 million247 - Total borrowings were approximately HKD 825 million, with 85% due within one year; approximately HKD 358 million of property, plant, and equipment were pledged as collateral for borrowings248251 Other Disclosures Dividend Policy The Board of Directors has resolved not to declare any interim dividend for the period ended September 30, 2023 - The Board has resolved not to declare any interim dividend for the reporting period (2022: nil)110254 Corporate Governance The company largely complied with the Corporate Governance Code during the reporting period, with a key deviation being the vacant positions of Chairman and Chief Executive Officer, whose responsibilities are collectively handled by the executive directors, and the Audit Committee has reviewed the interim financial information - The company deviated from the Corporate Governance Code as both the Chairman and Chief Executive Officer positions are vacant, with their responsibilities collectively undertaken by the executive directors305307 - The company's Audit Committee, comprising three independent non-executive directors, has reviewed this interim financial report and deemed it properly prepared with sufficient disclosures311 - The company's auditors have reviewed this interim financial information in accordance with relevant standards and found no material issues312
国际商业结算(00147) - 2024 - 中期业绩