Financial Performance - The consolidated revenue for the six months ended September 30, 2024, was approximately HKD 22,400,000, a decrease of about 62.3% compared to approximately HKD 59,400,000 for the same period last year[3]. - The loss attributable to the owners of the company increased from HKD 5,900,000 in the previous year to HKD 11,400,000 for the six months ended September 30, 2024[3]. - The gross profit margin for the six months ended September 30, 2024, was significantly impacted, with a gross profit of HKD 316 compared to HKD 29,352 in the previous year[5]. - The total comprehensive loss for the period was HKD 11,517,000, compared to HKD 7,373,000 in the previous year, indicating a worsening financial position[7]. - The net loss attributable to the owners per share for the six months ended September 30, 2024, was HKD 2.18, compared to HKD 1.13 in the previous year[5]. - The company reported a comprehensive loss of HKD (11,353,000) for the period, indicating ongoing financial challenges[15]. - The company reported a pre-tax loss of HKD 11,352,000 for the six months ended September 30, 2024, compared to a loss of HKD 5,869,000 for the same period in 2023[28]. - The group's gross profit margin for the reporting period was approximately 43.4%, compared to 49.4% in 2023[67]. Assets and Liabilities - The company's current liabilities increased to HKD 151,801,000 as of September 30, 2024, compared to HKD 186,028,000 as of March 31, 2024[9]. - The total assets less current liabilities amounted to HKD (103,322,000) as of September 30, 2024, compared to HKD (131,485,000) as of March 31, 2024[11]. - The company’s non-current assets decreased from HKD 18,007,000 as of March 31, 2024, to HKD 14,163,000 as of September 30, 2024[9]. - The company's total equity as of September 30, 2024, was HKD (451,358,000), indicating a decline in shareholder value[13]. - The group's debt-to-asset ratio increased to 397% as of September 30, 2024, compared to 344% as of March 31, 2024[71]. Cash Flow and Investments - The company's cash and cash equivalents decreased to HKD 18,334,000 from HKD 21,233,000 as of March 31, 2024[9]. - Net cash used in operating activities for the six months ended September 30, 2024, was HKD (3,260,000), an improvement from HKD (5,344,000) in the prior year[15]. - The net cash used in investing activities was HKD (716,000), a significant decrease from HKD 2,364,000 in the previous year, suggesting reduced investment outflows[15]. - The company has reallocated HKD 15,000,000 originally intended for bank loan repayment to invest in e-cigarette research, sales, and marketing in China and overseas[86]. - By September 30, 2024, approximately HKD 2,900,000 has been utilized for investments in the e-cigarette business in China, including office establishment and new equipment purchases[86]. - A total of HKD 18,500,000 has been reallocated for investments in the domestic healthcare business, including brand building and product development[87]. - The company has allocated approximately HKD 13,000,000 for renewable energy and new materials R&D, including a strategic investment of RMB 7,000,000 (approximately HKD 7,700,000) for a 20% stake in a subsidiary[89]. Strategic Initiatives - The company has implemented measures to optimize production outsourcing processes, enhance cost and inventory management systems, and improve operational efficiency in response to profit pressures[56]. - The flagship brand Italian Tomato is executing a strategic product mix optimization to seize seasonal opportunities and enhance customer engagement through targeted promotional activities[56]. - The group is focusing on the development of renewable energy and advanced materials, particularly in the photovoltaic industry, to penetrate the market[62]. - The group has expanded its advanced materials portfolio to include the development of RFID system electronic tags and is seeking strategic alliances with leading companies in the industry[62]. - The group signed an exclusive commercialization agreement for precision screen technology in the photovoltaic sector, obtaining comprehensive intellectual property rights and patent protection[59]. - The group aims to complete final verification procedures and commence small-scale production and commercialization of the precision screen technology by the end of the fiscal year[59]. Corporate Governance and Compliance - The company did not recommend the payment of an interim dividend for the six months ended September 30, 2024, consistent with the previous year[50]. - There were no significant transactions with related parties during the six months ended September 30, 2024[41]. - The company operates as a single business unit in the restaurant sector, with no identifiable segments for reporting purposes[44]. - The audit committee, consisting of three independent non-executive directors, reviewed and recommended the approval of the interim report and accounts for the six months ended September 30, 2024[114]. - The company has adhered to the corporate governance code as per GEM Listing Rules during the six months ended September 30, 2024[116]. Employee and Shareholder Information - The number of full-time employees decreased to 56 as of September 30, 2024, from 62 as of March 31, 2024[81]. - As of September 30, 2024, Hanbo Holdings Limited holds 296,887,066 shares, representing approximately 57.01% of the total issued shares[97]. - Mr. Tang Shengming holds convertible bonds with an outstanding principal amount of HKD 40,000,000, which upon full conversion will result in the issuance of 71,428,571 shares, equating to about 13.72% of the total issued capital[97]. - The new share option scheme allows for the issuance of up to 52,077,187 shares, which is 10% of the total issued share capital as of the adoption date[104]. - The new share option scheme aims to attract and retain contributors to the group's long-term growth and profitability[100].
荣晖控股(08213) - 2025 - 中期财报