Financial Performance - The Group recorded a revenue of approximately HK$36.6 million for the six months ended 30 September 2024, representing a significant decrease of approximately 15.1% compared to HK$43.1 million for the same period in 2023[13]. - The Group incurred a loss of approximately HK$27.0 million for the Period, compared to a loss of approximately HK$8.0 million in the preceding period, primarily due to a decrease in gross profit margin and a significant increase in distribution costs and administrative expenses[14]. - Loss before income tax increased to HK$26,325,000, compared to a loss of HK$7,806,000 in the same period last year, indicating a significant deterioration in financial performance[113]. - The total comprehensive expense for the period was HK$26,309,000, compared to HK$5,507,000 in the previous year, highlighting increased financial challenges[116]. - Loss per share attributable to owners of the Company was HK$19.17, compared to HK$8.79 in the previous year, indicating a worsening loss per share[116]. Revenue Breakdown - Revenue from the advertising services business was approximately HK$34.8 million, a decrease of approximately 1.7% from HK$35.4 million in the preceding period, attributed to weak market sentiments[20]. - Zixing Health recorded a revenue of approximately HK$1.6 million, a decrease of approximately 50.0% compared to approximately HK$3.2 million in the preceding period, primarily due to weak market sentiments[37]. - Revenue from external customers in Hong Kong was HK$34,826,000, a slight decrease from HK$35,369,000 in the previous year[174]. - The geographical revenue breakdown indicates that sales in the PRC dropped significantly from HK$7,713,000 to HK$1,778,000 year-over-year[174]. Expenses and Costs - The significant increase in distribution costs and administrative expenses contributed to the overall loss for the Period[14]. - The Group's administrative expenses increased significantly by approximately 98.5% to approximately HK$26.2 million, compared to approximately HK$13.2 million in the preceding period, mainly due to increased vehicle design and consultancy fees[40]. - Employee benefit expenses increased to HK$3,421,000 from HK$2,447,000, representing a rise of 39.7%[192]. - Total finance costs for the six months ended September 30, 2024, were HK$1,009,000, slightly down from HK$1,017,000 in 2023, a decrease of 0.8%[190]. Cash Flow and Liquidity - As of September 30, 2024, the Group had cash and cash equivalents of approximately HK$27.3 million, a significant increase from approximately HK$6.7 million as of March 31, 2024, due to rights issue activities[47]. - Net cash used in operating activities for the six months ended 30 September 2024 was HK$ (3,130,000), a significant improvement compared to HK$ (25,755,000) in the same period of 2023[134]. - Cash and cash equivalents at the end of the reporting period increased to HK$ 27,329,000 from HK$ 25,290,000 in the previous year[134]. - The Group's current ratio was approximately 1.9, lower than 2.7 as of March 31, 2024, but still considered acceptable for maintaining liquidity[47]. Capital and Financing Activities - The completion of the rights issue occurred on 26 September 2024, with net proceeds of approximately HK$25.8 million, which will be used for debt repayment, working capital, and expansion of various business segments[53][56]. - The intended allocation of the net proceeds includes HK$7.5 million for debt repayment, HK$3 million for advertising business working capital, and HK$3,300,000 for R&D of new energy off-road vehicles[56][57]. - The Group's outstanding borrowings increased to approximately HK$17.2 million from approximately HK$16.1 million as of March 31, 2024, primarily consisting of unsecured loans and promissory notes[47]. - Net cash generated from financing activities was HK$ 24,315,000, down from HK$ 32,429,000 in the previous year[134]. Business Segments and Strategy - The Group's principal activities include sales of health care products, new energy off-road vehicles, new energy batteries, and advertising services[138]. - The Group has four reportable operating segments: sales of health care products, sales of new energy off-road vehicles, sales of new energy batteries, and advertising[153]. - The Group plans to closely monitor operations in the advertising segment and allocate resources proportionately to capture business opportunities in the second half of the year[21]. - The Group aims to enhance its competitive edge by offering value-added services and annual advertising solutions across various media platforms[16]. Future Outlook - The Group anticipates a clearer outlook for its advertising business in 2025 due to improving macroeconomic conditions and market environment[66]. - The new energy battery business is expected to grow significantly, driven by increasing global demand for electric vehicles and renewable energy resources, particularly in China, which accounts for over half of the global electric vehicle market[67]. - The Group believes it is well-prepared to capitalize on growth opportunities in the new energy battery sector, driven by strong government support in China[73]. Corporate Governance and Compliance - The Company has complied with all corporate governance code provisions for the six months ended September 30, 2024[97]. - The Audit Committee reviewed the unaudited interim report and confirmed compliance with applicable accounting standards and GEM Listing Rules[108]. - The interim financial statements have been reviewed by the Company's audit committee but not audited[141]. Share Capital and Options - As of 30 September 2024, the company's issued share capital was approximately HK$36,683, with 366,827,260 ordinary shares of par value HK$0.0001 each[49][51]. - The share option scheme adopted on April 6, 2023, has a mandate limit refreshed to 10% of the issued shares, with 7,642,281 shares available for issue as of the report date[87]. - The total number of share options exercised during the period was 4,074,426 shares[93]. - The previous share option scheme was terminated on April 6, 2023, with movements detailed for the six months ended September 30, 2024[92].
嘉鼎国际集团(08153) - 2025 - 中期业绩