新质数字(02322) - 2024 - 中期业绩

Financial Summary Condensed Consolidated Statement of Profit or Loss and Other Comprehensive Income Summary For the six months ended September 30, 2023, the Group turned profitable with a profit for the period of approximately HKD 4.4 million, compared to a loss of approximately HKD 15.7 million in the prior period, primarily due to a significant increase in fair value gains on financial assets held for trading; however, total revenue decreased by 36.4% year-on-year to approximately HKD 88 million, and gross profit also decreased by 45.3% to approximately HKD 11.4 million Key Profit or Loss Data (For the Six Months Ended September 30) | Metric | 2023 (HKD Thousands) | 2022 (HKD Thousands) | Year-on-Year Change | | :--- | :--- | :--- | :--- | | Revenue | 87,998 | 138,359 | -36.4% | | Gross Profit | 11,438 | 20,914 | -45.3% | | Operating Profit/(Loss) | 3,440 | (15,729) | Turnaround to Profit | | Profit/(Loss) for the Period | 4,379 | (15,652) | Turnaround to Profit | | Profit/(Loss) Attributable to Owners of the Company | 4,397 | (15,632) | Turnaround to Profit | | Basic Earnings/(Loss) Per Share | 0.11 HK cents | (0.38) HK cents | Turnaround to Profit | - The primary driver for the turnaround to profitability was a fair value gain of HKD 32.84 million on financial assets held for trading, compared to a loss of HKD 0.77 million in the prior period[2] Condensed Consolidated Statement of Financial Position Summary As of September 30, 2023, the Group's total assets were HKD 893 million, a slight decrease from HKD 916 million as of March 31, 2023; total equity decreased from HKD 833 million to HKD 799 million, mainly due to exchange differences from RMB depreciation against HKD, while net current assets remained stable Key Balance Sheet Data | Metric | September 30, 2023 (HKD Thousands) | March 31, 2023 (HKD Thousands) | Change | | :--- | :--- | :--- | :--- | | Total Assets | 893,362 | 916,102 | -2.5% | | Total Liabilities | 94,810 | 83,007 | +14.2% | | Total Equity | 798,552 | 833,095 | -4.1% | | Net Current Assets | 576,243 | 578,059 | -0.3% | Segment Revenue and Results The Group's operations are divided into four main segments: trade business revenue significantly declined with expanded losses; lending and factoring business revenue remained stable but profit decreased; finance lease business turned profitable due to impairment reversal; and financial services business revenue decreased but losses narrowed Segment Performance by Business (For the Six Months Ended September 30, 2023) | Business Segment | Segment Revenue (HKD Thousands) | Segment Results (HKD Thousands) | Prior Period Results (HKD Thousands) | | :--- | :--- | :--- | :--- | | Trading | 76,831 | (16,046) | (1,573) | | Lending and Factoring | 8,629 | 3,483 | 5,081 | | Finance Lease | 295 | 1,658 | (3,605) | | Financial Services | 2,243 | (9,492) | (15,331) | | Total | 87,998 | (20,397) | (15,428) | - The expanded loss in the trading business was primarily due to decreased revenue and increased impairment provision for trade receivables[52] - The finance lease business turned profitable mainly due to the reversal of impairment losses on finance lease receivables[55] Management Discussion and Analysis Financial Review The Group successfully turned profitable during the period, recording a profit of approximately HKD 4.4 million, primarily due to an increase of approximately HKD 24 million in total gains from fair value changes of financial assets held for trading, which effectively offset the negative impacts of decreased gross profit and increased impairment losses on receivables, alongside a reduction in administrative expenses - The turnaround to profitability for the period was primarily influenced by the net effect of four factors[51]: - Total gains from fair value changes and disposal of financial assets held for trading increased by approximately HKD 24 million - Gross profit and other income decreased by approximately HKD 11.4 million - Total impairment losses on receivables increased by approximately HKD 3.4 million - Administrative expenses decreased by approximately HKD 9.1 million Business Review The Group's business segments showed mixed performance during the period: trading business revenue declined with expanded losses due to macroeconomic factors; lending and factoring business remained stable; finance lease business achieved profitability through successful debt recovery; financial services business narrowed losses amid a weak market; and the Group is actively seeking potential acquisition opportunities in the healthcare sector Trading Business Trading business revenue decreased by 36% year-on-year to HKD 76.8 million, with losses expanding from HKD 1.6 million to HKD 16 million, primarily due to an unfavorable macroeconomic environment in China impacting demand for non-essential consumer goods like electronics and imported seafood, alongside an impairment loss of approximately HKD 16 million on receivables from a specific customer Trading Business Performance | Metric | Current Period (HKD Thousands) | Prior Period (HKD Thousands) | | :--- | :--- | :--- | | Revenue | 76,800 | 120,000 | | Loss | (16,000) | (1,600) | - The Group made a full impairment provision of approximately HKD 12.3 million for receivables from a customer due to unsatisfactory recovery[52] Lending and Factoring Business Lending and factoring business interest income totaled approximately HKD 8.6 million, consistent with the prior period, but profit decreased from HKD 5.1 million to HKD 3.5 million, mainly due to increased administrative expenses; as of period-end, the outstanding loan portfolio had a carrying value of approximately HKD 176 million, and factoring receivables were approximately HKD 18.3 million Lending and Factoring Business Performance | Metric | Current Period (HKD Thousands) | Prior Period (HKD Thousands) | | :--- | :--- | :--- | | Interest Income | 8,600 | 8,400 | | Profit | 3,500 | 5,100 | - As of September 30, 2023, the loan portfolio comprised 23 customers, with the top five clients accounting for approximately 47% of the total carrying value of the loan business portfolio[56] Finance Lease Business The finance lease business successfully turned profitable, recording a profit of approximately HKD 1.7 million (compared to a loss of HKD 3.6 million in the prior period), primarily due to successful recovery of overdue receivables from certain customers, resulting in an impairment reversal of approximately HKD 2.7 million on finance lease receivables; no new loans were granted during the period due to prudent operations, leading to a decrease in interest income Finance Lease Business Performance | Metric | Current Period (HKD Thousands) | Prior Period (HKD Thousands) | | :--- | :--- | :--- | | Revenue | 300 | 1,100 | | Profit/(Loss) | 1,700 | (3,600) | - The key to the turnaround in performance was the recognition of an impairment reversal of approximately HKD 2.7 million on finance lease receivables[55] Financial Services Business Financial services business losses narrowed from HKD 15.3 million in the prior period to HKD 9.5 million, primarily benefiting from cost control and reduced impairment losses on margin client receivables; however, revenue from brokerage, margin financing, and underwriting businesses decreased to HKD 2.2 million due to a persistently sluggish stock market Financial Services Business Performance | Metric | Current Period (HKD Thousands) | Prior Period (HKD Thousands) | | :--- | :--- | :--- | | Revenue | 2,200 | 8,900 | | Loss | (9,500) | (15,300) | - The Group has initiated legal action regarding the profit guarantee provided by the vendor during the acquisition of this business and has reached a repayment arrangement with the vendor for the second installment of the guaranteed profit compensation[60] Potential Business Development and Outlook Looking ahead, the Group will actively seek new investment and business opportunities to expand its revenue base; currently, the Group has signed a non-legally binding memorandum of understanding to acquire a company engaged in medical device, nutritional health product promotion, and clinic management system businesses in China - The Group is conducting due diligence for a potential acquisition of a company engaged in healthcare-related businesses in China, and the due diligence period for the related memorandum of understanding has been extended to May 2024[61] Liquidity, Financial Resources and Liabilities The Group maintains a sound financial position, primarily relying on internal resources to meet working capital needs; as of period-end, the debt-to-equity ratio decreased from 2.69% to 2.18%, and the current ratio was 7.69 times, indicating strong solvency and ample liquidity Liquidity and Financial Resources Metrics | Metric | September 30, 2023 | March 31, 2023 | | :--- | :--- | :--- | | Cash and Bank Balances | HKD 127 million | HKD 139 million | | Debt-to-Equity Ratio | 2.18% | 2.69% | | Current Ratio | 7.69 | 9.33 | Securities Investment Portfolio As of September 30, 2023, the Group held two Hong Kong-listed securities investments with a total market value of approximately HKD 40.3 million, with the investment in Ying Fai Enterprise Holdings recording a fair value gain of approximately HKD 33.1 million during the period Details of Securities Held for Trading | Company Name | Stock Code | Shareholding Percentage | Acquisition Cost (HKD Thousands) | Fair Value at Period-End (HKD Thousands) | Fair Value Change Gain for the Period (HKD Thousands) | | :--- | :--- | :--- | :--- | :--- | :--- | | Ying Fai Enterprise Holdings Limited | 2195 | 6.31% | 8,367 | 37,830 | 33,101 | | Vicon Holdings Limited | 3878 | 4.6% | 3,915 | 2,451 | (262) | Other Significant Matters Interim Dividend The Board does not recommend the payment of an interim dividend for the six months ended September 30, 2023 - The Board does not recommend the payment of an interim dividend for the six months ended September 30, 2023 (prior period: nil)[33][64] Corporate Governance The Company fully complied with the Listing Rules' Corporate Governance Code during the reporting period; the Audit Committee reviewed the unaudited condensed consolidated financial statements for the period, and no shares of the Company were purchased, sold, or redeemed by the Company or any of its subsidiaries during the period - The Company fully complied with all provisions of the Corporate Governance Code for the six months ended September 30, 2023[70] - The Audit Committee, comprising three independent non-executive directors, reviewed the Group's accounting principles, internal controls, and financial reporting matters, including these interim financial statements, with management[74] - During the period, neither the Company nor any of its subsidiaries purchased, sold, or redeemed any shares of the Company[70]