Business Segments - For the six months ended September 30, 2024, Minshang Creative Technology Holdings Limited reported its unaudited consolidated results, with a focus on trading, IT solutions, and renewable energy technology businesses[2][3]. - The trading business, through its subsidiary Minshang Ningbo, focused on B2B sales of 3C electronic products, frozen foods, and grain & oil products, adapting procurement strategies based on market trends[5][6]. - The IT solution business operated through Qianhai Minshang and Changjing Wanxiang, providing digital solutions for industrial upgrading and customer marketing, targeting banks, real estate developers, and other institutions[12][13][18]. - Qianhai Minshang's services included customer acquisition solutions for banks, enhancing risk control and operational support, while also offering marketing systems for real estate developers[13][15]. - Changjing Wanxiang provided SaaS systems and IT solutions, focusing on membership services and direct sales to end users, including food items and brand vouchers[18][19][23]. - The renewable energy technology business was established through a cooperation agreement with Beijing Bio-Energy and Hainan Energy, forming a subsidiary with a registered capital of RMB50 million, where Minshang Shenzhen holds a 51% stake[24]. - The company operates three segments: trading business in the PRC, IT solution business, and renewable energy technology business, with a focus on sustainable development and low-carbon transformation[183]. - The Group's trading business in the PRC remains a key focus area, alongside the IT solution business which includes SaaS and software customization services[183]. Financial Performance - The Group's revenue decreased by approximately HK$7.83 million, from HK$7.84 million for the six months ended 30 September 2023 to HK$0.01 million for the Period, primarily due to a drop in revenue from the IT solution business amid a severe macro-economic environment in the PRC[31]. - The Group's IT solution business revenue significantly declined by 100%, or HK$7.57 million, to HK$Nil for the Period, reflecting the weak and uncertain economic situation[41]. - The loss attributable to the shareholders of the Company was approximately HK$11.11 million for the Period, compared to a profit of approximately HK$14.91 million for the Last Corresponding Period[54]. - The total comprehensive loss for the period amounted to HK$14,306,000, compared to a total comprehensive income of HK$12,737,000 in the previous period[155]. - The company reported a loss for the period due to currency translation differences amounting to HK$11,113,000, which contributed to the overall comprehensive loss[164]. - The total comprehensive income for the period ending September 30, 2023, was HK$12,737,000, indicating a positive performance compared to the current period's loss[164]. - The company incurred a loss before income tax of HK$12,581 for the six months ended September 30, 2024[190]. - The segment results for the trading business showed a loss of HK$457, while the IT solutions business reported a loss of HK$2,865[190]. Cost and Expenses - The Group's staff costs increased by 83.9%, or HK$1.99 million, from HK$2.37 million for the Last Corresponding Period to HK$4.36 million for the Period, mainly due to an increase in headcount for the development of renewable energy technology[44]. - The Group's property rentals and related expenses decreased by 80.3%, or HK$2.36 million, from HK$2.94 million for the Last Corresponding Period to HK$0.58 million for the Period, primarily due to the disposal of the restaurant business[45]. Funding and Investments - The Group entered into two subscription agreements to raise funds of HK$30 million, with approximately 95% of the net proceeds invested in the Renewable Energy Technology Business[30]. - The gross proceeds from the subscription amounted to HK$30 million, with net proceeds of approximately HK$29 million after expenses[77]. - The company intends to use approximately HK$1 million from the subscription proceeds for general working capital[77]. - The company plans to allocate approximately HK$28 million from the recent subscription proceeds for the development of the Renewable Energy Technology Business[77]. - The Group established a non-wholly owned subsidiary, Xuke Qingchun, with a registered capital of RMB50 million, where the Group contributed RMB25.5 million, representing 51% of the registered capital[27]. Strategic Goals and Future Outlook - The Group's management remains cautious regarding the trading business due to minimal profit margins compared to other segments, reallocating resources to achieve better returns[32]. - The Group has gathered a team of seasoned professionals to focus on developing its Renewable Energy Technology Business[28]. - The Group signed a memorandum of understanding with the local government in the PRC for project development in the region, alongside establishing a research laboratory for technical research[28]. - The company's long-term goal is to establish a diversified e-commerce platform while exploring opportunities in low-carbon and green energy transformation[87]. - The Group anticipates significant growth in the IT solution business due to the shift towards cloud-based infrastructure among Chinese enterprises[117]. - The SaaS industry in the PRC has substantial room for expansion as many enterprises transition from hardware to cloud solutions[117]. - The renewable energy technology segment is expected to play a significant role in China's renewable energy development over the next five years, with government policies encouraging the use of renewable methanol[187]. Corporate Governance - The Company is committed to good corporate governance, recognizing its importance in management structures and risk management procedures[135]. - The Company has adopted the Corporate Governance Code and complied with all applicable provisions during the Period[136]. - The Audit Committee reviewed the accounting standards and policies adopted by the Group for the Period, ensuring compliance with relevant standards[144]. - No Director had interests in any competing business during the Period, ensuring no conflicts of interest[138]. Liquidity and Financial Position - As of 30 September 2024, the Group's cash and cash equivalents were HK$14.0 million, representing an increase of 33.3%, or HK$3.5 million, compared to HK$10.5 million as of 31 March 2024[55]. - The Group's total current assets were HK$54.7 million and current liabilities were HK$28.7 million, resulting in a current ratio of about 1.9 times as of 30 September 2024[57]. - The Group had no bank and other borrowings as of 30 September 2024, maintaining a stable financial position[57]. - The Group's liquidity position improved with cash and cash equivalents increasing significantly over the reporting period[55]. - The total net proceeds utilized amount to HK$67.9 million, with HK$3.0 million remaining for future use[66]. Employee and Workforce - As of September 30, 2024, the group had 28 employees, an increase from 9 employees as of March 31, 2024[79]. Market Conditions - The major customers of Minshang Zhihui are financial institutions, which have been adversely affected by the macroeconomic pressures[52]. - The Group's trading business is facing various challenges, but it plans to continue developing this segment and diversifying its product mix as suitable opportunities arise[37]. - Despite challenges in the global and domestic economy, the Group will strive to maintain and develop its trading business[119]. - The management is exploring new opportunities in the food and beverage industry, despite the challenging environment in Hong Kong[124].
民商创科(01632) - 2025 - 中期业绩