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 in the preceding period[10]. - The loss for the Period was approximately HK$27.0 million, compared to a loss of approximately HK$8.0 million in the preceding period, mainly due to decreased gross profit margin and increased distribution costs and administrative expenses[11]. - The advertising services business generated revenue of 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[17]. - Zixing Health recorded a revenue of approximately HK$1.6 million, representing a decrease of approximately 50.0% compared to approximately HK$3.2 million in the preceding period[34][36]. - The total loss before income tax for the six months ended September 30, 2024, was HK$26,325,000, reflecting a significant decline in profitability compared to previous periods[156]. - 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[113]. - The company reported a significant decrease in revenue from the PRC, dropping to HK$1,778,000 from HK$7,713,000 in the previous year[171]. Expenses and Costs - Administrative expenses increased significantly by approximately 98.5% to approximately HK$26.2 million, up from approximately HK$13.2 million in the preceding period[35][37]. - The increase in loss was primarily attributed to a decrease in gross profit margin and a significant rise in distribution costs and administrative expenses[39][41]. - The Group's advertising segment reported a loss of HK$4,684,000, contributing to the overall financial performance challenges faced during this period[156]. - Employee benefit expenses increased to HK$3,596,000 in 2024 from HK$4,429,000 in 2023, with salaries and wages rising from HK$2,447,000 to HK$3,421,000[189]. - The company incurred finance costs of HK$1,017,000, contributing to the overall financial performance[186]. Cash Flow and Liquidity - The Group's cash and cash equivalents increased to approximately HK$27.3 million as of 30 September 2024, up from approximately HK$6.7 million as of 31 March 2024, primarily due to rights issue activities[44]. - Current assets decreased to HK$12,361,000 from HK$13,503,000 as of March 31, 2024, reflecting a decline in liquidity[116]. - Cash and cash equivalents at the end of the reporting period increased to HK$27,329,000 from HK$25,290,000, marking a net increase of HK$2,039,000[131]. - The company generated HK$24,315,000 from financing activities, down from HK$32,429,000 in the previous year, primarily due to a decrease in proceeds from borrowings[131]. Business Segments and Operations - The Group's new energy batteries segment recorded total revenue of approximately HK$0.1 million during the period, indicating ongoing development and internal adjustments in battery technology[21]. - No revenue was recorded from the sales of new energy off-road vehicles during the Period, as the Group is considering adjustments to its business model and actively redesigning off-road vehicles to enhance competitiveness[27][28]. - The Group has maintained four reportable operating segments: sales of health care products, sales of new energy off-road vehicles, sales of new energy batteries, and advertising[150]. - The Group plans to enhance product coverage and improve production processes through significant R&D investments[68]. Future Outlook and Strategy - The Group aims to capture business opportunities in the second half of the year by closely monitoring existing operations and deploying resources accordingly[18]. - Recent mainland policies encouraging financial support and operational subsidies are expected to generate revenue for the Group in the near future[29]. - The Group anticipates a clearer outlook for its advertising business in 2025 due to improving macroeconomic conditions[63]. - The new energy battery business is expected to benefit from the global transition to renewable energy, with China accounting for over half of the global electric vehicle market[64]. - The Group is optimistic about the future of new energy batteries, driven by the rapid increase in global demand for electric vehicles and renewable energy[75]. Share Capital and Corporate Governance - The Company proposed a share consolidation and capital reorganization, which was approved by shareholders and became effective on 21 May 2024[45][47]. - 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[46][48]. - The share option scheme allows for the issuance of 7,642,281 shares, with a mandate limit refreshed to 10% of the issued shares as of April 6, 2023[84][87]. - The company has complied with all code provisions of the Corporate Governance Code for the six months ended September 30, 2024[94]. - Mr. Li Guangying resigned as an executive Director effective August 7, 2024[94]. - Ms. Wang Dongmei resigned as a non-executive Director effective July 5, 2024[94]. Audit and Compliance - The Audit Committee reviewed the unaudited interim report for the six months ended September 30, 2024, confirming compliance with applicable accounting standards and GEM Listing Rules[105]. - The interim financial statements have been prepared in accordance with HKAS 34 and have not been audited but reviewed by the Company's audit committee[138]. - The accounting policies applied in the preparation of the interim financial statements are consistent with those used in the 2024 Annual Report, ensuring continuity in financial reporting[143].
嘉鼎国际集团(08153) - 2025 - 中期财报