Financial Performance - The group recorded revenue of approximately HKD 220,300,000 and gross profit of about HKD 21,500,000 for the six months ended September 30, 2024, representing a decrease of approximately 38.8% and 44.0% respectively compared to the same period in 2023[2]. - The group incurred a loss of approximately HKD 18,200,000 for the six months ended September 30, 2024, compared to a profit of approximately HKD 1,400,000 for the same period in 2023[2]. - Basic loss per share for the six months ended September 30, 2024, was HKD 2.92, compared to basic earnings per share of HKD 0.22 for the same period in 2023[2]. - The company reported a pre-tax loss of HKD 19,268 thousand for the six months ended September 30, 2024, compared to a pre-tax profit of HKD 1,490 thousand for the same period in 2023[29]. - The company reported a loss attributable to shareholders of HKD 18,222,000 for the six months ended September 30, 2024, compared to a profit of HKD 1,368,000 for the same period in 2023, indicating a significant decline in performance[42]. - For the fiscal year 2024, the company recorded a loss of approximately HKD 18,200,000 compared to a profit of approximately HKD 1,400,000 in the fiscal year 2023[71]. Revenue Breakdown - For the six months ended September 30, 2024, the total revenue was HKD 220,276 thousand, a decrease of 38.8% compared to HKD 360,063 thousand for the same period in 2023[22]. - The distribution business generated revenue of HKD 106,072 thousand, down 59.8% from HKD 263,113 thousand in the previous year[17]. - The system integration solutions business reported revenue of HKD 114,204 thousand, an increase of 17.5% from HKD 96,950 thousand in the prior year[18]. - Revenue recognized over time was HKD 33,279 thousand, up 3.3% from HKD 32,224 thousand in the previous year[25]. - Total revenue decreased by approximately HKD 139.8 million or 38.8% from about HKD 360.1 million in the fiscal period ending September 30, 2023, to about HKD 220.3 million in the fiscal period ending September 30, 2024[55]. - Revenue from the distribution business for the fiscal period 2024 was approximately HKD 106.1 million, a decrease of about HKD 157 million or 59.7% compared to approximately HKD 263.1 million in the fiscal period 2023[55]. - Revenue from the system integration solutions business increased by approximately HKD 17.2 million or 17.8%, from about HKD 97 million in the fiscal period 2023 to approximately HKD 114.2 million in the fiscal period 2024[55]. Expenses and Costs - The total operating expenses, including sales and distribution expenses and administrative expenses, amounted to HKD 32,337 thousand for the current period[29]. - Employee costs, including director remuneration, increased to HKD 31,884,000 from HKD 30,213,000 year-on-year, reflecting a rise of approximately 5.5%[6]. - The cost of inventory recognized as an expense decreased significantly to HKD 153,218,000 from HKD 294,089,000, representing a reduction of about 47.9%[6]. - Selling and distribution expenses increased by approximately HKD 400,000 or 2.4% to about HKD 17 million in the fiscal period 2024, mainly due to increased commission expenses in the system integration solutions segment[67]. - Administrative expenses decreased by approximately HKD 1.8 million or 10.5% to about HKD 15.3 million in the fiscal period 2024, primarily due to reduced legal and professional fees[68]. - Financing costs increased by approximately HKD 300,000 or 17.6% to about HKD 2 million in the fiscal period 2024, mainly due to increased bank borrowings[69]. Assets and Liabilities - Total assets less current liabilities amounted to HKD 181,114,000 as of September 30, 2024, compared to HKD 200,326,000 as of March 31, 2024[6]. - Non-current assets were valued at HKD 27,187,000 as of September 30, 2024, slightly down from HKD 27,752,000 as of March 31, 2024[6]. - Current liabilities decreased to HKD 264,383,000 as of September 30, 2024, from HKD 280,432,000 as of March 31, 2024[6]. - The group reported a net asset value of HKD 175,875,000 as of September 30, 2024, down from HKD 193,862,000 as of March 31, 2024[9]. - The group’s total equity decreased to HKD 175,875,000 as of September 30, 2024, from HKD 193,862,000 as of March 31, 2024[9]. - Total trade receivables as of September 30, 2024, amounted to HKD 307,373,000, down from HKD 372,810,000 as of March 31, 2024, indicating a decrease of approximately 17.5%[46]. - The total amount of trade payables as of September 30, 2024, was HKD 144,536,000, a decrease from HKD 184,556,000 as of March 31, 2024, reflecting a decline of about 21.7%[49]. - As of September 30, 2024, the company's bank borrowings amounted to approximately HKD 60,700,000, a slight increase of about HKD 800,000 or 1.4% from HKD 59,900,000 on March 31, 2024[73]. - The company's net debt decreased from approximately HKD 57,700,000 on March 31, 2024, to approximately HKD 57,300,000 on September 30, 2024[73]. - The company's total equity decreased from approximately HKD 193,900,000 on March 31, 2024, to approximately HKD 175,900,000 on September 30, 2024[73]. - The net capital debt ratio increased from approximately 29.6% on March 31, 2024, to approximately 32.7% on September 30, 2024[73]. Dividends and Shareholder Returns - The board of directors did not recommend the payment of any interim dividend for the six months ended September 30, 2024[2]. - The company did not declare or recommend any dividends for the six months ended September 30, 2024, consistent with the previous year[40]. - The company has not purchased, sold, or redeemed any of its listed securities in the six months ending September 30, 2024[98]. Corporate Governance and Compliance - The company has adopted the corporate governance code and has complied with its provisions, except for a deviation regarding the separation of the roles of Chairman and CEO[99][101]. - The audit committee, consisting of three independent non-executive directors, has reviewed and agreed on the accounting principles and practices adopted by the group[103]. Capital Expenditures and Investments - The company acquired property and equipment for approximately HKD 65,000,000 during the six months ended September 30, 2024, compared to HKD 114,000,000 in the same period of 2023[43]. - The company incurred capital expenditures of HKD 100,000 for the acquisition of property, plant, and equipment, consistent with the previous fiscal year[76]. - As of September 30, 2024, the company had no significant investments[86]. Use of Proceeds - The estimated net proceeds from the share sale are approximately HKD 71.2 million, with the actual net proceeds being around HKD 66 million after deducting underwriting fees and expenses[91]. - As of September 30, 2024, the planned use of the net proceeds includes expanding the IT distribution segment with an allocation of HKD 36.5 million, which has been fully utilized[94]. - The expansion of the system integration solutions segment has an allocated amount of HKD 13.5 million, with HKD 5.9 million utilized and HKD 7.6 million expected to be fully utilized by March 31, 2025[94][96]. - A new centralized service department for IT maintenance and support services has been established with an allocation of HKD 5.1 million, which has been fully utilized[94]. - Marketing efforts to enhance brand awareness have an allocation of HKD 1.3 million, which has been fully utilized[94]. - Upgrading the group's equipment, software, hardware, and ERP systems has an allocation of HKD 2.9 million, with HKD 2 million utilized and HKD 0.9 million expected to be fully utilized by March 31, 2025[94][97]. - As of September 30, 2024, the total utilized and unutilized net proceeds amount to HKD 66 million, with HKD 57.5 million utilized and HKD 8.5 million remaining[94]. Employee Information - The company employed approximately 184 employees as of September 30, 2024, an increase from 180 employees on March 31, 2024[88]. Other Information - The company has reached a preliminary settlement agreement with the Competition Commission, agreeing to pay approximately HKD 1,345,000, which includes a fine of HKD 1,190,000 and investigation costs of HKD 155,000[52]. - There were no significant events occurring after September 30, 2024[90]. - The company applied new and revised Hong Kong Financial Reporting Standards, which did not have a significant impact on the financial position and performance for the current and prior periods[14]. - The tax expense for the six months ended September 30, 2024, was HKD (1,046) thousand, compared to HKD 122 thousand for the same period in 2023[36]. - The company operates in Hong Kong, China (excluding Hong Kong and Macau), and Macau, focusing on distributing IT products and providing related services[20]. - The company has not disclosed asset and liability analysis by operating and reportable segments as it is not regularly reviewed by the chief operating decision maker[34]. - The company reported a net foreign exchange loss of HKD 126,000 for the six months ended September 30, 2024, down from a loss of HKD 319,000 in the previous year[6].
数科集团(02350) - 2025 - 中期业绩