Financial Performance - Total revenue for the six months ended September 30, 2024, was HKD 403,400,000, a decrease of 33.8% compared to HKD 608,967,000 in the same period of 2023[7]. - The gross profit for the period was HKD 15,991,000, down 69.6% from HKD 52,506,000 year-on-year[7]. - The operating loss for the six months was HKD 32,699,000, compared to an operating loss of HKD 6,898,000 in the previous year, indicating a significant increase in losses[9]. - The net loss attributable to owners of the company was HKD 36,332,000, compared to HKD 12,690,000 in the same period last year, reflecting a 186.5% increase in losses[9]. - Basic loss per share for the period was HKD (46.08), compared to HKD (16.09) in the previous year, indicating a worsening financial performance[9]. - The company reported a total comprehensive loss of HKD 33,297,000 for the period, compared to HKD 6,709,000 in the previous year, highlighting a significant decline in overall financial health[12]. - The group recorded a loss attributable to the owners of the company of approximately HKD 36,332,000, compared to a loss of HKD 12,690,000 in the same period last year[59]. - The net loss from financial assets measured at fair value through profit or loss was approximately HKD 27,186,000, compared to a loss of HKD 4,703,000 in the same period last year[70]. Assets and Liabilities - Total assets as of September 30, 2024, were HKD 636,685,000, a decrease from HKD 668,577,000 as of March 31, 2024[14]. - Current liabilities decreased to HKD 70,781,000 from HKD 83,248,000, showing a reduction in short-term obligations[14]. - Cash and cash equivalents at the end of the period were HKD 333,735,000, down from HKD 390,265,000 at the end of the previous reporting period[14]. - The carrying amount of property, plant, and equipment decreased from HKD 93,634,000 as of September 30, 2023, to HKD 88,502,000 as of September 30, 2024, reflecting a depreciation of HKD 3,606,000[41]. - As of September 30, 2024, the company's net assets were approximately HKD 709,084,000, down from HKD 756,007,000 as of March 31, 2024[76]. - The company has no significant contingent liabilities as of September 30, 2024, indicating a stable financial position[77]. Cash Flow and Operating Activities - The net cash used in operating activities for the six months ending September 30, 2024, was (39,748) thousand HKD, compared to (59,313) thousand HKD in the same period of 2023, indicating an improvement of 33.1%[24]. - The company’s cash and cash equivalents decreased to 333,735 thousand HKD as of September 30, 2024, down from 390,265 thousand HKD at the beginning of the period, reflecting a reduction of 14.5%[24]. - The total cash and cash equivalents at the end of the period were 333,735 thousand HKD, which is a significant decrease of 57,356 thousand HKD compared to the previous period[24]. Revenue Breakdown - Distribution sales of cosmetics and skincare products decreased to approximately HKD 403,400,000 from HKD 608,967,000 year-on-year, primarily due to prolonged recovery from the COVID-19 pandemic[65]. - Revenue from beauty and body services was approximately HKD 28,089,000, a decrease of about 4.3% from HKD 29,366,000 in the previous year[58]. - The company’s revenue from skincare products for the six months ending September 30, 2024, was not specified but is part of the overall revenue decline[30]. Expenses and Costs - The total employee cost for the period was approximately HKD 24,854,000, compared to HKD 26,524,000 in the previous year, with a workforce reduction from 218 to 198 employees[78]. - The company incurred a total tax expense of 1,939 thousand HKD for the six months ending September 30, 2024, down from 2,265 thousand HKD in the same period of 2023, representing a decrease of 14.4%[37]. - The total impairment loss recognized during the period was HKD 1,450,000, contributing to the overall increase in losses[41]. Strategic Initiatives - The company’s market strategy includes potential expansions and investments in new technologies, although specific details were not disclosed in the financial report[49]. - The group aims to continue introducing innovative beauty and body treatments and equipment to strengthen its market position[61]. - The group is focused on maintaining its leadership in the beauty and body service industry amid increasing competition and changing consumer behavior[62]. Governance and Compliance - The company has established a formal and transparent procedure to protect shareholders' rights and has complied with the corporate governance code, except for providing monthly updates to the board, which management believes is sufficient with quarterly updates[97]. - The audit committee has been formed in accordance with GEM listing rules and consists of three independent non-executive directors who reviewed the unaudited financial performance for the six months ending September 30, 2024[99]. - The company has confirmed that all directors have complied with the trading standards as per GEM listing rules[102]. Shareholder Information - Major shareholder Qiu Zhongzong holds 15,119,000 shares, representing 19.17% of the company's issued share capital as of September 30, 2024[93]. - The group did not recommend the payment of an interim dividend for the six months ended September 30, 2024, compared to no dividend in the previous year[57].
修身堂(08200) - 2025 - 中期财报