Financial Performance - The company reported revenue of HKD 9,209,000 for the six months ended September 30, 2024, a decrease of 35.4% compared to HKD 14,223,000 for the same period in 2023[5]. - The net loss for the period was HKD 6,740,000, improving from a net loss of HKD 12,929,000 in the previous year, representing a reduction of 47.9%[5]. - Revenue from customer contracts for the six months ended September 30, 2024, totaled 5,587 thousand HKD, a decrease of 59.3% from 13,730 thousand HKD in the same period of 2023[13]. - The total comprehensive loss for the six months ended September 30, 2024, was 6,686 thousand HKD, compared to a total comprehensive loss of 12,944 thousand HKD in the same period of 2023[8]. - The company reported a loss attributable to shareholders of HKD 6,740,000 for the six months ended September 30, 2024, compared to a loss of HKD 12,929,000 for the same period in 2023, representing a 48.9% improvement[29]. - The basic loss per share decreased to HKD 1.69 for the six months ended September 30, 2024, from HKD 3.23 in the same period of 2023, indicating a reduction of 47.6%[29]. Assets and Liabilities - The company's total assets decreased to HKD 104,131,000 as of September 30, 2024, down from HKD 115,385,000 as of March 31, 2024, reflecting a decline of 9.7%[6]. - Cash and cash equivalents were reported at HKD 39,038,000, a decrease of 11.8% from HKD 44,254,000 at the end of the previous fiscal year[6]. - The company’s total equity decreased to HKD 98,846,000 from HKD 106,332,000, indicating a decline of 7.0%[6]. - Trade receivables decreased to HKD 1,643,000 from HKD 2,160,000, a decline of 24.0%[6]. - The net current assets as of September 30, 2024, were approximately HKD 41.4 million, down from HKD 46.7 million as of March 31, 2024[77]. - The group maintains sufficient cash and bank balances to meet short-term liquidity needs, with total financial liabilities amounting to HKD 2,517,000 as of September 30, 2024[84]. Expenses and Cost Management - Employee benefit expenses were reduced to HKD 8,859,000, down 52.5% from HKD 18,643,000 in the same period last year[5]. - The company reported a net cash outflow from operating activities of 3,499 thousand HKD for the six months ended September 30, 2024, an improvement compared to 11,446 thousand HKD for the same period in 2023[9]. - Other expenses increased by approximately 18% to HKD 3.1 million for the six months ended September 30, 2024, compared to HKD 2.6 million in the same period of 2023[73]. - R&D expenses were approximately HKD 5.2 million for the six months ended September 30, 2024, down from HKD 11.9 million in the same period of 2023[70]. Revenue Sources - For the six months ended September 30, 2024, the revenue from Financial Trading Solutions and Other IT Services was HKD 5,587,000, while Precious Metals Trading Services generated HKD 3,622,000, totaling HKD 9,209,000[19]. - The company reported a net gain of HKD 3,622,000 from precious metals trading contracts for the six months ended September 30, 2024, compared to HKD 493,000 in the same period of 2023[42]. - Revenue from precious metals trading increased by approximately HKD 3.1 million, primarily due to the acquisition of the subsidiary engaged in precious metals trading[66]. - Revenue from licensing and maintenance services decreased by approximately 24% or about HKD 1.6 million, mainly due to reduced services provided to existing clients[65]. - Initial setup and customization service revenue plummeted by approximately 93% from about HKD 7.0 million to approximately HKD 0.5 million for the six months ended September 30, 2024[65]. Strategic Initiatives - The company plans to focus on market expansion and new product development in the upcoming quarters[5]. - The company is reallocating resources to explore new business opportunities and has established a subsidiary in Singapore to tap into the Asian market[63]. - The company plans to enhance existing trading systems with automated trading or risk management features in the future[63]. - A strategic acquisition is planned to enhance technological capabilities, with an estimated cost of HKD 100 million[104]. Shareholder Information - The company declared a final dividend of HKD 0.002 per ordinary share for 2024, up from HKD 0.001 in 2023, resulting in a total payout of HKD 800,000 compared to HKD 400,000 in the previous year[33]. - The weighted average number of ordinary shares issued was 400,000,000 for both periods, showing no change year-over-year[31]. - As of September 30, 2024, the company has a total of 210,000,000 shares held by Essential Strategy, representing 52.5% of the issued shares[94]. - Expert Wisdom Holdings Limited, owned by the CEO, holds 90,000,000 shares, accounting for 22.5% of the issued shares[95]. Compliance and Governance - The company has established an audit committee to oversee financial reporting and internal controls, consisting of three independent non-executive directors[102]. - The chairman and non-executive director, Mr. Wei Ming, confirmed compliance with securities trading regulations throughout the reporting period[99]. - There were no reported violations of the securities trading code by any directors during the relevant period[99]. - The company has adopted strict compliance standards for securities trading as per GEM listing rules[99].
连成科技集团(08635) - 2025 - 中期财报