Financial Performance - For the six months ended September 30, 2024, the company's revenue was approximately HKD 15,500,000, a decrease of about 4.5% compared to HKD 16,200,000 for the same period in 2023[19] - The loss attributable to owners of the company for the six months ended September 30, 2024, was approximately HKD 1,300,000, compared to a profit of approximately HKD 3,700,000 for the same period in 2023[19] - Basic and diluted loss per share for the six months ended September 30, 2024, was approximately HKD 0.45 cents, compared to earnings of HKD 0.52 cents for the same period in 2023[19] - Revenue for the six months ended September 30, 2024, was HKD 15,512,000, a decrease of 4.5% compared to HKD 16,235,000 for the same period in 2023[26] - The company reported a total comprehensive income of HKD 10,861 thousand for the six months ended September 30, 2024, compared to HKD 5,001 thousand for the same period in 2023[83] - The company incurred a loss of HKD 1,308,000 for the six months ended September 30, 2024, compared to a profit of HKD 3,721,000 in the prior year, reflecting a significant decline[76] Revenue Breakdown - The revenue from two-way radios increased by approximately 65.3% from HKD 9,100,000 for the six months ended September 30, 2023, to approximately HKD 15,100,000 for the same period in 2024[23] - Revenue from baby monitors significantly decreased to zero from HKD 5,900,000 for the six months ended September 30, 2023, due to a reduction in purchase orders from customers[23] - Revenue from plastic products decreased by approximately 59.1% from HKD 1,000,000 for the six months ended September 30, 2023, to approximately HKD 400,000 for the same period in 2024[23] - Revenue from other products decreased to zero from HKD 200,000 for the six months ended September 30, 2023, primarily due to reduced demand[24] - Total revenue from external customers for the six months ended September 30, 2024, was HKD 15,512,000, a decrease of 4.4% from HKD 16,235,000 for the same period in 2023[108] Cost and Profitability - The sales cost decreased by approximately 6.7% from HKD 13,500,000 for the six months ended September 30, 2023, to HKD 12,600,000 for the same period in 2024[30] - Gross profit margin increased from approximately 16.6% for the six months ended September 30, 2023, to approximately 18.5% for the same period in 2024[30] - Gross profit for the same period was HKD 2,875,000, an increase from HKD 2,692,000 year-over-year, indicating a growth of about 6.8%[74] - The cost of inventory recognized as an expense was approximately HKD 12,630,000 for the six months ended September 30, 2024, down from HKD 13,509,000 in the same period of 2023, indicating a reduction of about 6.5%[136] Cash Flow and Liquidity - The net cash used in operating activities for the six months ended September 30, 2024, was HKD (7,009) thousand, compared to HKD (1,329) thousand for the same period in 2023[86] - The net cash generated from financing activities for the six months ended September 30, 2024, was HKD 5,770 thousand, while it was HKD (135) thousand in the previous year[86] - The cash and cash equivalents at the end of the period decreased to HKD 3,609 thousand from HKD 5,048 thousand year-on-year[86] - As of September 30, 2024, the group's current liabilities exceeded current assets by HKD 5,776,000, with cash and cash equivalents amounting to HKD 3,609,000, raising significant doubts about the group's ability to continue as a going concern[97] Share Capital and Financing - The net proceeds from the share placement completed on October 12, 2023, amounted to HKD 8,630,000, allocated for general working capital, repayment of other loans, and machinery purchases[51][53] - A second share placement agreement was signed on April 12, 2024, with a maximum of 172,350,000 new shares to be placed at HKD 0.034 per share, completed on May 8, 2024[53] - The net proceeds from the second share placement amounted to HKD 5,770,000, with approximately HKD 2,480,000 allocated for general working capital and HKD 1,000,000 for loans to subsidiaries[54] - The company completed a placement of 172,350,000 new shares at a price of HKD 0.034 per share on May 8, 2024, increasing the issued share capital[147] Corporate Governance and Compliance - The company maintained compliance with the GEM Listing Rules and corporate governance codes throughout the six months ended September 30, 2024[64] - The company did not repurchase any of its listed securities during the six months ended September 30, 2024[67] - The board approved and authorized the publication of the unaudited interim financial statements on November 29, 2024[155] Employee and Operational Costs - Total employee costs for the six months ended September 30, 2024, were approximately HKD 1,500,000, down from HKD 2,000,000 for the same period in 2023[49] - The group is actively taking measures to control operating costs, including negotiating rent reductions and implementing management salary cuts[97] Other Key Information - The company has no significant investments or capital asset plans as of September 30, 2024[46] - The company was incorporated in the Cayman Islands and primarily engages in the manufacturing and trading of two-way radios, baby monitors, and plastic products[88] - The company reported no tax provision for the six months ended September 30, 2024, as there were no taxable profits generated in China[125] - The company had no acquisitions of property, plant, or equipment during the six months ended September 30, 2024, maintaining the same status as the previous year[133]
善裕集团控股(08245) - 2025 - 中期业绩