Financial Performance - Revenue for the six months ended September 30, 2024, was HK$30,792,000, compared to HK$30,141,000 for the same period in 2023, representing a growth of 2.2%[9] - Gross profit decreased to HK$11,812,000 from HK$14,891,000, reflecting a decline of 20.8% year-over-year[9] - Profit before income tax for the period was HK$102,376,000, a significant recovery from a loss of HK$235,795,000 in the previous year[9] - Profit attributable to owners of the Company was HK$100,934,000, compared to a loss of HK$237,725,000 in the same period last year[12] - Total comprehensive income for the period was HK$103,910,000, a turnaround from a total comprehensive loss of HK$240,574,000 in the prior year[13] - Basic earnings per share for the period was HK$4.22, compared to a loss per share of HK$9.95 in the previous year[14] - The Group recorded a profit after tax of about HK$101.5 million in the 2024 Interim Period, a turnaround from a loss of about HK$236.9 million in the 2023 Interim Period[120] - The profit turnaround was mainly due to a non-cash gain of about HK$111.2 million from the fair value change of financial assets, compared to a loss of about HK$225.9 million in the previous period[120] Assets and Liabilities - Total assets increased to HK$1,399,449,000 as of September 30, 2024, compared to HK$1,287,189,000 as of March 31, 2024, representing a growth of approximately 8.7%[4] - Current assets rose to HK$934,770,000, up from HK$177,442,000, indicating a significant increase of approximately 426.5%[4] - Total equity attributable to owners of the Company reached HK$1,216,476,000, an increase from HK$1,113,125,000, reflecting a growth of about 9.3%[7] - Non-current liabilities, including convertible bonds, increased to HK$127,642,000 from HK$117,124,000, marking an increase of approximately 13.0%[7] - Total liabilities decreased to HK$1,399,449,000 from HK$1,287,189,000, indicating a reduction of approximately 8.7%[7] - Cash and bank balances stood at HK$94,107,000, slightly up from HK$93,610,000, indicating a marginal increase of about 0.5%[4] - The outstanding principal amount of the Company's 20-year zero coupon convertible bonds was HK$577.17 million as of September 30, 2024, unchanged from March 31, 2024[139] Investments and Fair Value - Investments in convertible bonds amounted to HK$660,564,000 as of 30 September 2024[29] - The fair value of the Innovative Pharm Bonds at 30 September 2023 is HK$567,611,000, reflecting a change of (HK$290,826,000) in fair value recognized in profit or loss[38] - The fair value at 30 September 2024 is HK$771,793,000, with an unrealized change of HK$111,229,000 since 31 March 2024[40] - The fair value change of the Innovative Pharm Bonds recorded an unrealized gain of about HK$111.2 million in the 2024 Interim Period, compared to an unrealized loss of about HK$225.9 million in the 2023 Interim Period[129] - The fair value hierarchy of unlisted investment funds and unlisted shares is classified as Level 2, with their fair values remaining zero due to net liabilities[110] - The fair value of short-term investments, such as bank structured products, is also classified as Level 2, determined by estimated returns and credit quality[110] - Investments in convertible bonds are classified as Level 3, with fair value determined through management discussions and independent valuation, considering factors like risk-free rates and expected volatility[112] Cash Flow and Operating Activities - Net cash generated from operating activities was HK$119,000, a recovery from cash used of HK$6,380,000 in the same period last year[21] - Cash and cash equivalents at the end of the period increased to HK$94,107,000 from HK$89,786,000 year-over-year[21] - Other income for the period was HK$3,032,000, slightly down from HK$3,137,000 in the previous year[9] Expenses and Costs - The cost of inventories recognized as expenses was HK$6,790,000, an increase from HK$5,938,000 in the same period last year, representing a rise of approximately 14.4%[83] - Staff costs, including directors' emoluments, totaled HK$9,809,000 for the six months ended September 30, 2024, compared to HK$8,977,000 in 2023, marking an increase of about 9.2%[83] - Selling and distribution expenses decreased by about HK$2.3 million or 34.6%, from approximately HK$6.7 million in the 2023 Interim Period to about HK$4.4 million in the 2024 Interim Period[131] - Administrative expenses decreased by about HK$1.1 million or 9.2%, from approximately HK$11.5 million in the 2023 Interim Period to about HK$10.4 million in the 2024 Interim Period[132] Market and Economic Environment - The Group's operating environment in the pharmaceutical manufacturing sector is increasingly challenging due to structural transformations and regulatory changes in China's medical and health system[120] - China's economy recorded a growth of 4.8% year-on-year in the first three quarters of 2024, supported by strong policies and reforms[118] - The Chinese pharmaceutical market continues to witness stable growth, presenting both opportunities and challenges for the Group[124] Corporate Governance and Compliance - The audit committee has reviewed the unaudited condensed consolidated interim financial information and confirmed compliance with current accounting practices in Hong Kong[177] - The remuneration committee oversees the remuneration policies of the group, ensuring alignment with industry standards[178] - The nomination committee is responsible for formulating and implementing policies for nominating candidates for election by shareholders[179] - The Company has adopted the Model Code for Securities Transactions by Directors of Listed Issuers, ensuring compliance by its directors throughout the 2024 Interim Period[158] Share Capital and Dividends - The Company has not established a dividend policy, preferring to determine dividend payments based on financial performance and market conditions[156] - The company did not recommend the payment of an interim dividend for the six months ended 30 September 2024, consistent with no dividend declared for the same period in 2023[91] - As of September 30, 2024, the Company had a total of 2,390,000,000 shares issued, with potential conversion rights indicating that UG International could hold approximately 27.36% of the enlarged share capital[164] Employment and Staff - As of 30 September 2024, the Group employed 162 staff, a decrease from 169 employees as of 30 September 2023[150] - Staff costs for the 2024 Interim Period amounted to approximately HK$10.9 million, up from HK$10.2 million in the 2023 Interim Period, primarily due to increased performance-related rewards[150]
精优药业(00858) - 2025 - 中期财报