Financial Performance - For the six months ended September 30, 2024, the group recorded unaudited revenue of approximately HKD 11,600,000, a decrease of about HKD 5,900,000 or 33.7% compared to HKD 17,500,000 for the same period in 2023[10] - The unaudited loss attributable to owners of the company for the six months ended September 30, 2024, was approximately HKD 6,400,000, compared to HKD 10,900,000 for the same period in 2023[10] - Basic and diluted loss per share for the six months ended September 30, 2024, was HKD 0.24, an improvement from HKD 0.41 for the same period in 2023[10] - The group reported a gross profit of HKD 8,128,000 for the six months ended September 30, 2024, down from HKD 10,348,000 in the same period of 2023[13] - Operating loss for the six months ended September 30, 2024, was HKD 5,089,000, a reduction from HKD 10,476,000 for the same period in 2023[13] - The group reported total revenue of HKD 11,593,000 for the six months ended September 30, 2024, a decrease of 33.6% compared to HKD 17,467,000 for the same period in 2023[48] - Revenue from the restaurant and related business was HKD 10,380,000, down 26.5% from HKD 14,183,000 in the previous year[48] - The group incurred a loss before tax of HKD 5,280,000 for the six months ended September 30, 2024, compared to a loss of HKD 10,955,000 for the same period in 2023[41] - The company reported a loss attributable to shareholders of HKD 6,398,000 for the six months ended September 30, 2024, compared to a loss of HKD 10,893,000 for the same period in 2023, representing a 41.5% improvement in losses year-over-year[59] Cash Flow and Liquidity - Cash and cash equivalents decreased significantly to HKD 686,000 as of September 30, 2024, from HKD 9,114,000 as of March 31, 2024[18] - Operating cash flow for the six months ended September 30, 2024, was HKD 596,000, a significant improvement from a cash outflow of HKD 4,942,000 in the same period last year[25] - The cash and cash equivalents decreased by HKD 8,455,000 during the reporting period, ending with HKD 686,000[25] - As of September 30, 2024, the company's total liabilities exceeded its total assets by approximately HKD 16,288,000[33] - The company has committed to providing ongoing financial support to ensure sufficient liquidity for operations[33] - The group has sufficient operating funds to meet its financial obligations for the next twelve months[34] Assets and Liabilities - Total assets less current liabilities amounted to HKD (16,288,000) as of September 30, 2024, compared to HKD (7,077,000) as of March 31, 2024[18] - Current liabilities increased to HKD 26,099,000 as of September 30, 2024, from HKD 25,935,000 as of March 31, 2024[18] - The company's equity attributable to owners decreased to HKD (15,708,000) as of September 30, 2024, from HKD (9,337,000) as of March 31, 2024[22] - The company had a total capital and reserves of HKD (16,288,000) as of September 30, 2024[21] - The company reported a decrease in accumulated losses to HKD (155,921,000) as of September 30, 2024, from HKD (149,523,000) as of April 1, 2024[22] Cost Management - The company implemented cost-saving measures to control administrative expenses and improve operating cash flow[33] - Administrative expenses decreased by approximately 19.4% from HKD 6,700,000 for the six months ending September 30, 2023, to HKD 5,400,000 for the same period in 2024, mainly due to reductions in cleaning, remuneration, and fixed costs[111] - Employee costs increased by approximately 9.7% to about HKD 10,200,000 for the six months ended September 30, 2024, from HKD 9,300,000 for the same period in 2023[103] Business Operations - The group has gradually closed its restaurants in Hong Kong due to financial losses and is reviewing future business plans in the restaurant sector[92] - The group established a liquor supply department and is collaborating with clients to develop brewing formulas and negotiate with brewers for custom liquor production[90] - A framework agreement was signed with Nanjing Zerui Longxiang Supply Chain Management Co., Ltd. to provide platform services for selling and distributing the group's products through its e-commerce platform[91] - The group’s major operational costs include the cost of sold inventory, employee costs, and property rent, which are critical to overall financial performance[145] Corporate Governance - The board believes that preparing the financial statements on a going concern basis is appropriate[34] - The audit committee, consisting of three independent non-executive directors, has reviewed the interim financial statements for the six months ending September 30, 2024[170] - The company has adopted a code of conduct for directors' securities transactions, ensuring compliance with GEM listing rules[167] - The board emphasizes high standards of corporate governance to maintain transparency and protect shareholder interests since the company’s listing on August 8, 2016[147] Future Outlook - The company plans to strengthen its existing business development and seek stable returns and growth prospects for shareholders[92] - The group has no plans for significant investments or capital assets beyond what has been disclosed in the report as of September 30, 2024[146] - The group’s operations in China and Hong Kong are susceptible to economic developments and unforeseen events, which could significantly impact business performance[141] Shareholder Information - As of September 30, 2024, Tian Shield Investment Limited holds 1,730,560,000 shares, representing 65.46% ownership in the company[161] - Mr. Zhou Feng is the sole beneficial owner of Tian Shield Investment Limited, which is registered in the British Virgin Islands[161] - The company has a stock option plan established on July 21, 2016, with a total of 140,000,000 options available for grant, accounting for approximately 5.3% of the total issued shares as of September 30, 2024[167] - No stock options were granted, exercised, or cancelled in the six months ending September 30, 2024[166] Risk Factors - The group faces significant credit risk primarily associated with accounts receivable, deposits, and cash equivalents, with the maximum credit risk arising from the book value of confirmed financial assets[134] - The minimum wage in Hong Kong has increased from HKD 37.5 to HKD 40.0 per hour, effective May 1, 2023, which may further impact employee costs[145] - The group relies on a stable supply of food ingredients and liquor, with prices subject to fluctuations, which may affect cost control measures[145] - As of September 30, 2024, the group has not purchased, sold, or redeemed any shares, including any treasury shares[149]
皇玺集团(08300) - 2025 - 中期财报