Financial Performance - Revenue for the six months ended September 30, 2024, was HKD 220,276,000, a decrease of 38.8% compared to HKD 360,063,000 for the same period in 2023[8] - Gross profit for the same period was HKD 21,531,000, down 44.5% from HKD 38,447,000 year-over-year[8] - The company reported a net loss of HKD 18,222,000 for the six months ended September 30, 2024, compared to a profit of HKD 1,368,000 in the prior year[8] - Total comprehensive loss for the period was HKD 17,987,000, compared to a comprehensive income of HKD 969,000 in the same period last year[8] - Basic loss per share for the period was HKD (2.92), compared to earnings per share of HKD 0.22 in the previous year[8] - The company reported a loss before tax of HKD 19,268 for the period, compared to a loss of HKD 6,806 in the previous year[31] - The company reported a loss attributable to owners of HKD 18,222,000 for the six months ended September 30, 2024, compared to a profit of HKD 1,368,000 in the same period of 2023[46] - Total revenue decreased by approximately HKD 139.8 million or 38.8% from about HKD 360.1 million in the 2023 fiscal period to about HKD 220.3 million in the 2024 fiscal period[74] - The company recorded a loss of approximately HKD 18.2 million in the 2024 fiscal period, compared to a profit of about HKD 1.4 million in the 2023 fiscal period[85] Revenue Breakdown - Revenue from the distribution of IT products was HKD 106,072, down 56.9% from HKD 245,881 in the previous year[23] - Revenue from system integration solutions was HKD 114,204, an increase of 17.7% compared to HKD 96,950 in the prior year[31] - The geographic revenue breakdown shows that revenue from Hong Kong was HKD 217,405, down 39.0% from HKD 356,460 in the previous year[23] - Revenue recognized over time was HKD 33,279, slightly up from HKD 32,224 in the previous year[27] - Revenue from the distribution business in the 2024 fiscal period was approximately HKD 106.1 million, a decrease of about HKD 157 million or 59.7% compared to approximately HKD 263.1 million in the 2023 fiscal period[74] - Revenue from the system integration solutions business increased by approximately HKD 17.2 million or 17.8% to about HKD 114.2 million in the 2024 fiscal period, driven by increased sales of cloud products and services[74] Assets and Liabilities - The company's total assets as of September 30, 2024, were HKD 418,310,000, compared to HKD 453,006,000 as of March 31, 2024[10] - Current liabilities decreased to HKD 264,383,000 from HKD 280,432,000 as of March 31, 2024[10] - The company's net asset value as of September 30, 2024, was HKD 175,875,000, down from HKD 193,862,000 as of March 31, 2024[10] - As of September 30, 2024, total trade receivables amounted to HKD 307,373,000, a decrease from HKD 372,810,000 as of March 31, 2024[52] - Total trade payables as of September 30, 2024, were HKD 144,536,000, down from HKD 184,556,000 as of March 31, 2024[57] - The company reported bank borrowings of approximately HKD 60,782,000 as of September 30, 2024, an increase from HKD 57,867,000 as of March 31, 2024[58] - The total equity as of September 30, 2024, was HKD 6,250,000,000, unchanged from previous periods[60] - The group's net debt decreased from approximately HKD 57,700,000 on March 31, 2024, to approximately HKD 57,300,000 on September 30, 2024[86] - Total equity decreased from approximately HKD 193,900,000 on March 31, 2024, to approximately HKD 175,900,000 on September 30, 2024, resulting in a net capital debt ratio increase from about 29.6% to approximately 32.7%[86] Cash Flow and Investments - Operating cash flow before changes in working capital was negative HKD 7,250, compared to positive HKD 7,463 in the previous year[15] - Net cash used in investing activities was HKD 4,728, a significant improvement from negative HKD 13,110 in the same period last year[15] - Net cash used in financing activities was HKD 4,134, compared to negative HKD 1,192 in the previous year[15] - Cash and cash equivalents at the end of the period were HKD 10,457, down from HKD 12,765 at the end of the previous year[15] - The company acquired property and equipment amounting to approximately HKD 65,000,000 during the six months ended September 30, 2024, down from HKD 114,000,000 in the same period of 2023[47] - The group incurred capital expenditures of HKD 100,000 for the acquisition of property, plant, and equipment, as well as intangible assets for the six months ended September 30, 2024, consistent with the previous fiscal period[89] Employee and Administrative Costs - Employee costs, including director remuneration, increased to HKD 31,884,000 from HKD 30,213,000 year-on-year[40] - Short-term employee benefits for the six months ended September 30, 2024, were HKD 2,401,000, a decrease from HKD 3,220,000 in the same period of 2023[62] - Administrative expenses decreased by approximately HKD 1.8 million or 10.5% to about HKD 15.3 million in the 2024 fiscal period, mainly due to reduced legal and professional fees[81] Legal and Compliance Matters - The company has reached a preliminary settlement agreement with the Competition Commission, agreeing to pay approximately HKD 1,345,000, which includes a fine of HKD 1,190,000[65] - The company has not made any provisions regarding the legal proceedings initiated by the Competition Commission as of March 31, 2023, due to insufficient information[65] - The company did not declare or propose any dividends for the six months ended September 30, 2024, consistent with the previous year[45] - The group did not declare any interim dividend for the six months ended September 30, 2024, consistent with the previous period[96] Future Outlook and Strategic Initiatives - The company anticipates continued demand for hyper-converged infrastructure products and AI servers driven by the ongoing digital transformation needs of enterprises[69] - The company is facing delays in the expansion of its system integration solutions business due to a shortage of market talent and labor supply[114] - The company is upgrading its equipment, software, hardware, and ERP systems, with an expected total expenditure of HKD 2.9 million to be fully utilized by March 31, 2025[108] - The company established a new centralized service department to provide 24/7 technical support and detection and response services[108] Shareholder and Governance Matters - The company’s major shareholder, Ip Group, holds 393,720,000 shares, representing 62.99% of the company’s equity[121] - The company has adopted a share option scheme approved by shareholders on December 19, 2022, but has not granted any options as of the report date[125] - The company has adopted the corporate governance code as per the listing rules, with a deviation from the code regarding the separation of the roles of Chairman and CEO[127] - The audit committee, composed of three independent non-executive directors, has reviewed and agreed on the accounting principles and practices adopted by the group[132]
数科集团(02350) - 2025 - 中期财报