Financial Performance - For the six months ended September 30, 2024, the revenue was approximately HKD 21,722,000, compared to HKD 48,578,000 for the same period last year, representing a decline of about 55.3%[5]. - The loss attributable to owners of the company for the six months ended September 30, 2024, was approximately HKD 2,557,000, compared to a loss of HKD 2,367,000 for the same period last year, indicating an increase in loss of about 8%[5]. - Total revenue for the six months ended September 30, 2024, was approximately HKD 21,722,000, a decrease of about 55.28% compared to HKD 48,578,000 in the same period last year[37]. - Gross profit for the period was HKD 7,041,000, down from HKD 11,273,000 year-on-year[39]. - The company recorded a pre-tax loss of HKD 3,865,000, compared to a loss of HKD 769,000 in the previous year[39]. - Total comprehensive loss for the period amounted to HKD 1,333,000, compared to HKD 7,238,000 in the same period last year[44]. - The net cash used in operating activities for the six months ended September 30, 2024, was HKD (3,180,000), compared to HKD (2,711,000) in 2023[59]. - The group reported a loss of HKD (3,527,000) for the six months ended September 30, 2024, compared to a loss of HKD (1,554,000) in 2023[64]. Revenue Sources - Revenue from smart advertising and railway media services amounted to approximately HKD 20,943,000 for the six months ending September 30, 2024[16]. - Revenue from agricultural and consumer products was approximately HKD 2,000 for the six months ending September 30, 2024[17]. - Revenue from mobile advertising media services was HKD 20,943,000, a decline of 53.9% from HKD 45,441,000 in 2023[64]. Market Conditions - The Chinese digital advertising market faced significant challenges in 2024, with economic slowdown and regulatory uncertainties impacting growth prospects[8]. - The Chinese real estate market is expected to face significant challenges in 2024, with new home sales projected to drop below half of 2021 levels, and property values may decline by 20-25%[13]. - Domestic travel in China has shown a full recovery, with travel volume reaching approximately 85% of pre-pandemic levels in Q3 2024, totaling around 1.1 billion domestic trips[9]. - The agricultural sector in China is facing increasing challenges due to environmental degradation and geopolitical pressures, with the reliance on U.S. soybean imports decreasing from 40% in 2016 to 18% in 2024[10]. - The global supply chain industry is experiencing unprecedented impacts from geopolitical instability and labor shortages, with a 15.2% increase in carbon emissions index in Q1 2024 indicating growing environmental pressures[12]. Cash and Liabilities - As of September 30, 2024, the group's cash and bank deposits were approximately HKD 5,929,000, a decrease of about 27.34% from HKD 8,160,000 on March 31, 2024[29]. - The group had net current liabilities of approximately HKD 67,542,000 as of September 30, 2024, compared to HKD 62,293,000 on March 31, 2024[29]. - Current liabilities were HKD 195,152,000, compared to HKD 191,158,000 in the previous period[47]. - The company's equity attributable to owners was HKD (18,834,000), compared to HKD (18,091,000) in the previous period[51]. - The company experienced a total capital deficit of HKD (3,559,000) as of September 30, 2024, compared to HKD (1,765,000) previously[53]. Strategic Initiatives - The company is actively exploring investment opportunities in the traditional Chinese medicine sector to tap into the mass market[17]. - The company plans to strengthen existing business lines while entering new high-growth areas to address current macroeconomic challenges[22]. - The company aims to diversify its revenue sources and enhance its resilience through strategic exploration of new business avenues[22]. - The company is leveraging its proprietary big data and AI technology platform to identify new growth opportunities in the advertising sector[14]. - The company is optimistic about the future prospects of its property despite current market conditions and is monitoring the market for favorable selling opportunities[20]. Corporate Governance - The company has applied the corporate governance code as per GEM Listing Rules during the six months ending September 30, 2024[145]. - The board consists of three executive directors and three independent non-executive directors, responsible for reviewing and implementing the company's strategies and policies[156]. - The audit committee, composed of three independent non-executive directors, regularly meets with senior management to review the effectiveness of internal control systems[158]. - The nomination committee reviews the composition of the board and proposes qualified candidates when necessary[159]. - The remuneration committee determines the remuneration policies for directors and senior management[162]. Shareholder Information - As of September 30, 2024, Zhao Xinyan holds 1,750,000 personal shares and 47,378,000 company shares, totaling 49,128,000 shares, representing 14.78% of the issued share capital[163]. - Wu Meiqi holds 33,792,000 company shares, representing 10.17% of the issued share capital[164]. - The company has a total of 47,378,000 shares held by Zansheng Limited, representing approximately 14.25% of the issued share capital[169]. - Gold City Assets Holdings Ltd. holds 33,792,000 shares, accounting for 10.17% of the issued share capital[171]. - The company did not repurchase any shares during the six months ending September 30, 2024[174].
世大控股(08003) - 2025 - 中期业绩