Financial Performance - For the six months ended September 30, 2024, the group's revenue was approximately HKD 5,995,000, a decrease of about 7% compared to HKD 6,448,000 for the same period in 2023[4] - The profit attributable to the owners of the company for the same period was approximately HKD 631,000, down from HKD 660,000 in 2023[4] - Gross profit for the period was HKD 3,897,000, down from HKD 4,063,000, reflecting a decline in profitability[24] - The total comprehensive income attributable to the company's owners was HKD 631,000 for the six months ended September 30, 2024, compared to HKD 660,000 for the same period in 2023[25] - The company reported a profit before tax of approximately HKD 631,000 for the six months ended September 30, 2024, compared to HKD 660,000 for the same period in 2023, indicating a decrease of about 4.4%[38] Revenue Breakdown - Revenue from the sale of smart card systems and RFID systems decreased by 14% to approximately HKD 1,553,000, compared to HKD 1,802,000 in the same period last year[11] - Maintenance revenue also decreased by 4% to approximately HKD 4,442,000, down from HKD 4,646,000 in the previous year[11] Expenses and Costs - Administrative expenses slightly increased by 1% to approximately HKD 3,937,000, primarily due to rising employee costs[11] - Employee costs, including directors' remuneration, amounted to approximately HKD 4,300,000 for the six months ended September 30, 2024, an increase of 16.2% from HKD 3,700,000 in the previous year[18] - Employee costs, including director remuneration, increased to HKD 4,311,000 in 2024 from HKD 3,722,000 in 2023, representing an increase of approximately 15.8%[35] - The company’s research and development costs decreased to HKD 382,000 in 2024 from HKD 517,000 in 2023, indicating a reduction of approximately 26.0%[35] Cash Flow and Liquidity - Cash and cash equivalents decreased to HKD 17,656,000 as of September 30, 2024, from HKD 18,570,000 at the beginning of the period[29] - Operating cash flow generated was HKD 922,000 for the six months ended September 30, 2024, compared to a cash outflow of HKD 479,000 in the same period of 2023[29] - The group maintained a current ratio and cash ratio of 5.23 as of September 30, 2024, compared to 5.83 on March 31, 2024[12] Liabilities and Financial Position - The company’s total liabilities increased to HKD 3,286,000 as of September 30, 2024, compared to HKD 2,563,000 as of March 31, 2024, marking an increase of approximately 28.2%[41] - The company’s contract liabilities increased significantly to HKD 1,544,000 as of September 30, 2024, compared to HKD 858,000 as of March 31, 2024, representing an increase of approximately 80.0%[41] - Trade receivables rose to HKD 1,087,000 as of September 30, 2024, compared to HKD 640,000 as of March 31, 2024, reflecting an increase of approximately 69.8%[39] Corporate Governance and Compliance - The audit committee reviewed the interim financial results for the six months ending September 30, 2024, and confirmed compliance with applicable accounting standards and GEM listing rules[51] - The company has maintained compliance with the corporate governance code as per GEM listing rules during the period ending September 30, 2024[52] - The board of directors is currently led by Mr. Liu Han Guang, who serves as both chairman and CEO, with no immediate plans to separate these roles[53] - The audit committee is composed of three independent non-executive directors and meets at least twice a year to discuss financial reporting and internal controls[51] Shareholder Matters - The company did not recommend an interim dividend for the six months ended September 30, 2024, consistent with the previous year[37] - The company did not repurchase any shares during the period ending September 30, 2024, with zero shares bought back as authorized by shareholders[49] - The average number of ordinary shares in issue remained stable at 925,508,000 for both periods reported[38] Strategic Direction - The group aims to develop innovative smart city solutions to meet future demands and contribute to public health and sustainability[6] Changes in Management - There were changes in the board of directors, with Ms. Wu Wan Ying appointed as an executive director effective October 1, 2024, and Mr. Cheng Guo Xiong ceasing to be an authorized representative on the same date[55] Risk Management - The company does not currently have any hedging measures in place to manage foreign exchange risks, as the costs are deemed higher than the benefits[21] - The company recorded a net foreign exchange loss of HKD 5,000 in the previous year, which was not present in the current reporting period[35] - There were no significant contingent liabilities reported as of September 30, 2024[22] Other Information - The company has not established any new share option plans since the previous plan expired on August 7, 2021[48] - The company has not disclosed any significant contracts involving directors with substantial interests as of the settlement date[47] - The company has not reported any competitive interests from directors or major shareholders that could conflict with the group's business as of September 30, 2024[50] - The company has adopted a code for securities trading by directors, ensuring compliance with GEM listing rules during the reporting period[54]
ITE HOLDINGS(08092) - 2025 - 中期财报