Financial Performance - For the six months ended September 30, 2020, the group recorded unaudited total revenue of approximately HKD 18.8 million, a decrease of about 55.4% compared to HKD 42.1 million for the same period in 2019[9]. - The group reported an unaudited loss attributable to owners of approximately HKD 0.5 million, a decrease of about HKD 9.4 million from a profit of HKD 8.8 million for the same period in 2019[9]. - Revenue decreased from approximately HKD 42.1 million for the six months ended September 30, 2019, to about HKD 18.8 million for the six months ended September 30, 2020, a decline of approximately 55.4%[17]. - Gross profit fell from approximately HKD 22.8 million to about HKD 8.9 million, with the gross margin decreasing from 54.2% to 47.5%[18]. - Operating loss for the six months was HKD 559,000, compared to an operating profit of HKD 10,263,000 in the previous year[51]. - The company reported a net loss attributable to owners of HKD 546,000 for the six months, compared to a profit of HKD 8,810,000 in the same period last year[55]. - Revenue for the six months ended September 30, 2020, was HKD 18,764,000, a decrease of 55.4% compared to HKD 42,082,000 in 2019[65]. - Gross profit for the same period was HKD 8,904,000, down 61.0% from HKD 22,806,000 in 2019[51]. Revenue Breakdown - Revenue from the sale of LED lighting devices decreased from approximately HKD 37.8 million in the six months ended September 30, 2019, to approximately HKD 13.4 million in the same period in 2020, representing a decline of about 64.6% or HKD 24.4 million[13]. - Revenue from LED lighting system consulting and maintenance services increased from approximately HKD 2.0 million in the six months ended September 30, 2019, to approximately HKD 2.2 million in the same period in 2020, an increase of about 10.0% or HKD 0.2 million[15]. - Revenue from integrated LED lighting solution services rose from approximately HKD 2.2 million in the six months ended September 30, 2019, to approximately HKD 3.1 million in the same period in 2020, an increase of about 40.9% or HKD 0.9 million[16]. - Sales of LED lighting devices for the three months ended September 30, 2020, were HKD 5,321,000, down 76.1% from HKD 22,273,000 in 2019[65]. - Sales of audio-visual systems for the six months ended September 30, 2020, were HKD 37,000, compared to HKD 25,000 in 2019, indicating a growth of 48%[65]. Operational Challenges - The decline in sales revenue was primarily due to the impact of the COVID-19 pandemic, which led to operational suspensions and decreased sales[12]. - The group experienced delays in resuming production and returning employees to work, which increased operational costs[12]. - The COVID-19 pandemic has significantly impacted global economic activities, particularly in China, affecting the company's operations and requiring regular assessments of its overall impact[50]. - The company has faced delays in factory operations due to the need for further evaluation of the potential impacts of US-China trade tensions, pushing the factory's operational start from June 2018 to April 2020[45]. Financial Position - Cash and bank balances increased to approximately HKD 65.9 million as of September 30, 2020, compared to HKD 63.3 million as of March 31, 2020[28]. - Current ratio decreased from 5.6 to 4.1, and quick ratio decreased from 5.6 to 3.9 from March 31, 2020, to September 30, 2020[25]. - The total equity attributable to owners increased to approximately HKD 67.2 million as of September 30, 2020, from approximately HKD 66.8 million as of March 31, 2020[29]. - Total assets decreased to HKD 75,444,000 as of September 30, 2020, compared to HKD 69,705,000 as of March 31, 2020[53]. - The company’s non-current assets decreased to HKD 12,232,000 from HKD 13,230,000[53]. - The company’s total equity increased to HKD 67,234,000 as of September 30, 2020, from HKD 66,771,000 as of March 31, 2020[53]. Expenditure and Utilization of Funds - Capital expenditure for property, plant, and equipment was approximately HKD 5,000 for the six months ended September 30, 2020, down from approximately HKD 8.6 million for the year ended March 31, 2020[37]. - As of September 30, 2020, the company has utilized approximately HKD 27.4 million of the net proceeds from the IPO, with an unutilized amount of HKD 20.4 million remaining[45]. - The company plans to fully utilize the remaining funds for factory and employee dormitory rent and operational expenses by March 31, 2022[45]. - The actual amount used for recruiting high-quality employees was HKD 2.0 million as of September 30, 2020, with an unutilized amount of HKD 2.3 million expected to be used by March 31, 2022[46]. - The company has not yet utilized the HKD 13.0 million allocated for seeking suitable acquisitions, with plans to fully utilize it by December 31, 2022[47]. - The funds allocated for improving the enterprise resource planning system, amounting to HKD 2.0 million, remain unutilized, with expectations to use them by March 31, 2022[48]. Corporate Governance - The board does not recommend the payment of an interim dividend for the six months ended September 30, 2020[9]. - The company has adopted a code of conduct for directors' securities transactions, ensuring compliance with GEM listing rules[99]. - The audit committee has reviewed the unaudited consolidated results for the six months ended September 30, 2020, and found them compliant with applicable accounting standards and GEM listing rules[107]. - The audit committee consists of independent non-executive directors, including Mr. Zhu Xian Gan (Chairman), Dr. Li Hui Xin, and Mr. Xia Yao Rong[107]. - The board is committed to high levels of corporate governance to enhance transparency and protect shareholder interests[103]. Shareholder Information - Mr. Tan Yiming holds 490,000,000 shares, representing 49% of the company's equity[92]. - Eight Dimensions owns 260,000,000 shares, accounting for 26% of the company's equity[94]. - Garage Investment, fully owned by Mr. Tan, holds 490,000,000 shares, which is 49% of the total equity[94]. - Mr. Yang indirectly holds 260,000,000 shares through Eight Dimensions, also representing 26%[101]. - The total number of issued and fully paid ordinary shares remained at 1,000,000,000 as of both September 30, 2020, and March 31, 2020[86]. Miscellaneous - The company has not granted any stock options under the stock option plan since its adoption[98]. - No purchases, sales, or redemptions of the company's listed securities occurred during the six months ending September 30, 2020[102]. - The company maintains sufficient public float as of the report date[105]. - There have been no significant subsequent events following the report period up to the report date[104]. - The report was issued on November 9, 2020, by the Chairman and CEO, Mr. Tan Yi Ming[107].
英马斯集团(08136) - 2021 - 中期财报