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 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] - The basic and diluted loss per share for the six months ended September 30, 2024, was approximately HKD 0.45, compared to earnings of HKD 0.52 per share for the same period in 2023[19] - For the six months ended September 30, 2024, the group reported total revenue of HKD 15,512,000, a decrease of 5.3% compared to HKD 16,235,000 for the same period in 2023[74] - Gross profit for the same period was HKD 2,875,000, representing an increase of 6.8% from HKD 2,692,000 in 2023[74] - The group incurred a loss before tax of HKD 1,175,000, compared to a profit before tax of HKD 3,847,000 in the previous year[74] - The net loss attributable to owners of the company for the period was HKD 1,308,000, compared to a profit of HKD 3,721,000 in 2023[76] - Total comprehensive loss for the period was HKD 1,308,000, compared to a total comprehensive income of HKD 1,715,000 in the same period last year[76] Revenue Breakdown - Revenue from two-way radios increased by approximately 65.3% to HKD 15,100,000 for the six months ended September 30, 2024, from HKD 9,100,000 for the same period in 2023[23] - Revenue from baby monitors dropped significantly to zero from HKD 5,900,000 for the same period in 2023, a decrease of 100%[23] - Revenue from plastic products decreased by approximately 59.1% to HKD 400,000 for the six months ended September 30, 2024, from HKD 1,000,000 for the same period in 2023[23] - Revenue from external customers in Asia for the six months ended September 30, 2024, was HKD 15,112,000, down 4.2% from HKD 15,769,000 in 2023[117] - Other income decreased significantly to HKD 388,000 in 2024 from HKD 4,436,000 in 2023, a decline of 91.2%[119] Cost and Expenses - The group's 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 six months ended September 30, 2024, while the gross profit margin increased from about 16.6% to approximately 18.5%[30] - Selling and distribution expenses rose from approximately HKD 40,000 to about HKD 430,000, primarily due to increased marketing expenses[31] - The 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] - Financing costs decreased to HKD 23,000 in 2024 from HKD 158,000 in 2023, a reduction of 85.4%[122] - The cost of inventory recognized as an expense was HKD 12,630,000 for the six months ended September 30, 2024, down from HKD 13,509,000 in 2023[123] Equity and Liabilities - As of September 30, 2024, the company's equity attributable to owners was approximately HKD 10,900,000, an increase of about 71.2% from HKD 6,400,000 as of March 31, 2023[36] - The group's debt-to-asset ratio improved to approximately 93.1% as of September 30, 2024, down from about 158.6% as of March 31, 2024[38] - Current liabilities rose to HKD 38,313,000 from HKD 34,959,000, resulting in a net current liability of HKD 5,776,000[80] - The company's current liabilities exceeded its current assets by HKD 5,776,000, raising significant doubts about its ability to continue as a going concern[97] - The company's total liabilities as of September 30, 2024, included trade and other payables of HKD 28,200,000, up from HKD 24,950,000 as of March 31, 2024, an increase of 9.0%[139] Cash Flow - For the six months ended September 30, 2024, the net cash used in operating activities was HKD (7,009,000), compared to HKD (1,329,000) for the same period in 2023, indicating a significant increase in cash outflow[86] - The net cash generated from financing activities was HKD 5,770,000, a recovery from a cash outflow of HKD (135,000) in the previous year[86] - As of September 30, 2024, the company's cash and cash equivalents decreased to HKD 3,609,000 from HKD 5,048,000 in the prior year, reflecting a decline of approximately 28.5%[86] - The company reported a net cash decrease of HKD 1,239,000 for the period, compared to a decrease of HKD 1,375,000 in the same period last year[86] Corporate Governance and Compliance - The company has adhered to the corporate governance code as per GEM listing rules during the six months ending September 30, 2024[64] - The company has confirmed compliance with the trading standards and code of conduct for directors during the six months ending September 30, 2024[65] - The company did not redeem any of its shares during the six months ending September 30, 2024, nor did it purchase or sell any listed securities[67] - The company did not declare any dividends for the six months ended September 30, 2024[47] - The company did not recommend any dividend for the six months ended September 30, 2024, consistent with 2023[132] Future Plans and Investments - The company plans to enhance its product portfolio and strengthen information management systems and marketing to develop existing businesses[28] - The company will continue to invest in R&D for new product lines and seek new customers and sales channels[28] - The company aims to diversify its revenue sources and expects this to contribute to revenue growth[28] - The company will continue to explore and evaluate potential investment opportunities[28] - The company is expanding its business through the acquisition of new product lines[97] Share Capital and Options - A new placement agreement was signed on April 12, 2024, to issue up to 172,350,000 new shares at a price of HKD 0.034 per share, which was completed on May 8, 2024[53] - The total number of options and rewards available for issuance under the new share option plan is 17,235,127 shares, representing approximately 8.3% of the company's issued share capital[69] - The new share option plan aims to incentivize participants by granting options or rewards, effective for 10 years from its adoption date[68] - 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 its issued share capital[147] Assets and Receivables - The group's current assets increased to HKD 32,537,000 as of September 30, 2024, up from HKD 24,734,000 as of March 31, 2024[78] - Trade receivables increased to HKD 25,435,000 as of September 30, 2024, compared to HKD 17,563,000 as of March 31, 2024, representing a growth of 45.1%[134] - Total trade and other receivables amounted to HKD 27,982,000 as of September 30, 2024, up from HKD 19,022,000 as of March 31, 2024, indicating a rise of 47.2%[134] - The aging analysis of trade receivables shows that amounts overdue by more than 180 days increased to HKD 6,981,000 from HKD 1,791,000, reflecting a significant increase of 289.5%[136] Other Information - The company had no major investments or capital asset plans as of the report date[46] - As of September 30, 2024, the company had no significant contingent liabilities[41] - The company has access to credit financing of approximately HKD 10,000,000 from related parties, which has not yet been drawn down[97] - Management is actively monitoring financial performance and liquidity, implementing cost control measures including rent negotiations and salary reductions[97] - The financial statements were prepared in accordance with Hong Kong Financial Reporting Standards, with no significant changes in accounting policies compared to the previous year[91] - The fair value of trade and other receivables, bank balances, and trade and other payables is similar to their carrying amounts as of September 30, 2024[106] - The company has not reported any significant events after September 30, 2024, up to the report date[72] - The board approved the unaudited interim financial statements on November 29, 2024[155]
善裕集团控股(08245) - 2025 - 中期财报