Financial Performance - The Group recorded revenue of approximately HK$7.1 million for the Financial Period, a decrease of approximately 36% from HK$11.1 million in the Previous Financial Period[10]. - Loss attributable to the owners of the Company decreased to approximately HK$93.45 million, representing a decrease of approximately 15.41% from HK$110.48 million in the Previous Financial Period[11]. - The decrease in revenue was primarily due to the adverse impact of the COVID-19 pandemic on the trading of beauty equipment and products[22]. - The trading revenue from beauty equipment and products was adversely affected by the surge of the COVID-19 pandemic[23]. - Revenue for the six months ended September 30, 2020, was HK$7,152,000, a decrease of 35.5% from HK$11,126,000 in the same period of 2019[113]. - Gross profit for the same period was HK$765,000, down 27.3% from HK$1,052,000 year-over-year[114]. - Loss before tax for the period was HK$94,207,000, an improvement from a loss of HK$111,296,000 in the prior year, representing a 15.4% reduction[115]. - Total comprehensive expense for the period was HK$94,233,000, compared to HK$111,828,000 in the previous year, indicating a 15.8% decrease[118]. - Basic loss per share for the period was HK$6.38, slightly improved from HK$7.55 in the same period last year[123]. - The company reported a loss for the period of HK$110,479,000 for the six months ended September 30, 2020[138]. - The total comprehensive expense for the period was HK$111,011,000, reflecting the company's financial challenges during this timeframe[138]. - For the six months ended 30 September 2020, the consolidated loss was HK$94,207,000, a decrease from HK$111,296,000 in the same period of 2019, representing a 15.5% improvement[157]. Research and Development - The Group is developing a technology for oral insulin administration, currently in Phase III clinical trials, with plans to commercialize by Q4 2022[16]. - The in-process research and development project for the oral insulin product is recorded as an intangible asset with a carrying value of HK$1,373 million[25]. - Patient enrollment for the clinical trial commenced in July 2020, with 23 hospitals invited to participate, and 18 hospitals have accepted the invitation[32]. - The clinical trial for the first group of subjects began in August 2020 and is expected to take approximately 24 weeks, with all 650 subjects anticipated to complete testing by Q4 2021[33]. - The Group expects the product to start generating revenue by the fourth quarter of 2022, following the completion of the clinical trials[34][41]. - The intangible assets include an in-process research and development project for an oral insulin product, with a recoverable amount based on fair value calculations using a discount rate of 22.98% over a 10-year period[181]. - The company believes that no impairment on the in-process R&D should be recognized based on the recoverable amount estimation[184]. - The management's cash flow projections for the in-process R&D are based on key assumptions regarding market development and expected future economic benefits[181]. - The company renewed its collaboration agreement with Tsinghua University for an additional five years, extending to October 2023[181]. Financial Position - As of September 30, 2020, the Group had bank and cash balances of approximately HK$11.9 million, down from approximately HK$22.9 million as of March 31, 2020[48]. - Total borrowings of the Group were approximately HK$921.7 million as of September 30, 2020, compared to approximately HK$835.7 million as of March 31, 2020[49]. - As of September 30, 2020, the Group's current assets to current liabilities ratio was 0.04, down from 0.60 as of March 31, 2020[52]. - The Group's gearing ratio increased to 0.66 as of September 30, 2020, compared to 0.60 as of March 31, 2020, with total liabilities of approximately HK$930.9 million and total assets of approximately HK$1,404.5 million[52]. - Current assets decreased to HK$28,400,000 from HK$42,186,000, reflecting a decline of 32.7%[128]. - Net current liabilities increased significantly to HK$701,661,000 from HK$28,354,000, indicating a substantial rise in financial obligations[131]. - Total assets less current liabilities were HK$674,404,000, down from HK$1,348,338,000, showing a significant reduction in asset value[131]. - As of September 30, 2020, total equity decreased to HK$473,540,000 from HK$567,773,000 as of March 31, 2020, representing a decline of approximately 16.6%[136]. - The equity attributable to owners of the Company was reported at HK$(483,848,000) as of September 30, 2020, compared to HK$(390,373,000) as of March 31, 2020, indicating a worsening position[135]. Corporate Governance - The Company has not established a dividend policy, preferring to determine dividend payments based on financial performance and market conditions[79]. - Following the resignation of an independent non-executive director, the Company currently has two independent non-executive Directors, which is below the minimum requirements under the Listing Rules[80]. - The Audit Committee has reviewed the Group's unaudited interim financial statements for the Financial Period, ensuring compliance with relevant accounting policies and practices[81]. - The company is actively seeking suitable candidates to fill vacancies in its committees to comply with listing rules and codes[82]. - The company has confirmed that no other directors or executives have interests or short positions in the shares of the company as of September 30, 2020[96]. - The company has adopted the Model Code for Securities Transactions by Directors, and all directors confirmed compliance throughout the financial period[86]. - The company is working to ensure compliance with listing rules and corporate governance codes following recent changes in its board composition[82]. Operational Highlights - The Group aims to improve its attractiveness and profitability through cooperation, joint ventures, and investments with suitable partners[17]. - The management performed impairment assessments at the end of each reporting period for the intangible assets[25]. - The Group will cautiously explore trading business opportunities in Hong Kong while reinforcing risk management policies due to the unpredictable impacts of the COVID-19 pandemic and trade conflicts[39][42]. - The management remains optimistic about the long-term recovery of the markets while being cautious about near-term market directions[40][43]. - Total staff costs, including Directors' remuneration, for the Financial Period amounted to approximately HK$4.1 million, an increase from approximately HK$3.9 million in the previous Financial Period[65]. - The Group had 28 full-time employees as of September 30, 2020, a slight decrease from 29 employees as of March 31, 2020[64]. - The company did not have any significant investments or acquisitions during the Financial Period, except for the disposal of shares of Extrawell[54]. - There were no charges on the Group's assets as of September 30, 2020, consistent with the situation as of March 31, 2020[55]. - The company did not purchase, sell, or redeem any of its listed securities during the financial period[111]. - The company did not transfer any amount from retained profits to the statutory reserve during the six months ended September 30, 2020, due to incurred net losses[145]. Segment Information - The Group operates three segments: trading of beauty equipment and products, securities investment, and research and development[153]. - Total segment profit for the reporting segments was a loss of HK$1,166,000, compared to a loss of HK$760,000 in the previous year[156]. - Corporate and other expenses increased to HK$93,041,000 from HK$86,723,000, reflecting an increase of 7.6%[156]. - The effective interest expense on convertible bonds rose to HK$86,913,000 from HK$74,131,000, marking a 17.4% increase[162]. - No dividends were paid, declared, or proposed during the interim period, consistent with the previous year[170]. - The weighted average number of ordinary shares for the purpose of basic and diluted loss per share remained unchanged at 1,464,193 shares[174].
领航医药生物科技(00399) - 2021 - 中期财报