Financial Performance - The revenue of Alpha Professional Holdings Limited for the six months ended 30 September 2024 was approximately HK$17.0 million, a significant decrease of 82.2% compared to HK$95.4 million in the same period of 2023[7]. - The loss for the period was approximately HK$24.9 million, representing a decrease of HK$8.8 million or 26.7% compared to the previous year[7]. - Gross profit increased by HK$0.8 million or 44.7% despite a revenue drop of over 80%, attributed to changes in milk powder brands and new income sources from logistics and e-commerce[7]. - For the six months ended September 30, 2024, the total comprehensive loss was HK$36,793,000, which includes a loss for the period of HK$33,685,000[101]. - The Company reported a loss of HK$24,573,000 for the period, with exchange differences on translation contributing an additional loss of HK$3,602,000[101]. - The total comprehensive loss for the period, net of income tax attributable to owners of the company, was HK$20,971,000, down from HK$36,793,000 in the previous year, indicating a 43% reduction[118]. - The net loss for the period was HK$24,845,000, compared to a loss of HK$33,685,000 in the same period last year, showing a 26.2% improvement[116]. Expenses and Costs - Administrative expenses increased significantly by HK$14.3 million or 266.0%, mainly due to higher staff costs and legal fees[7]. - Selling and distribution costs rose to HK$5,692,000, an increase of 107.1% from HK$2,740,000 in the previous year[116]. - Administrative expenses surged to HK$19,665,000, up 265.5% from HK$5,376,000 in the same period last year[116]. - Finance costs decreased to HK$1,582,000, down 41.7% from HK$2,715,000 in the previous year[116]. Assets and Liabilities - As of September 30, 2024, the total number of employees increased to 106, with total employee costs amounting to approximately HKD 8.4 million, up from HKD 3.4 million in the previous year[29]. - As of September 30, 2024, the Group had outstanding borrowings of approximately HK$35.0 million, an increase from HK$33.2 million as of 31 March 2024[13]. - The total identifiable net assets at fair value amount to HK$20,545,000, with non-controlling interests based on their proportionate interest in the recognized amounts of the assets and liabilities of Shenyang Jinyi Group[72]. - The Group's significant investments represent approximately 2.6% of the total assets as of September 30, 2024[46]. - The aging analysis of trade payables shows that HK$32,102,000 is overdue by over 365 days as of September 30, 2024, compared to HK$28,861,000 as of March 31, 2024[69]. Investments and Acquisitions - The Group completed the acquisition of 70% of the economic benefit of Shenyang Jinyi, which is engaged in e-commerce in China, to enhance its Milk Products Business[28]. - The Group acquired 100% interest in Welfit Group to increase logistics segment profit by maximizing warehouse occupancy rates[28]. - On June 11, 2024, the Group completed the acquisition of Smart Front Developments Limited for a total consideration of HK$17.5 million[46]. - The Group also acquired 700,000 ordinary shares of Welfit for approximately HK$4.4 million on the same date[46]. Market Conditions - The domestic milk powder market continues to shrink due to declining birth rates, while major foreign milk powder brands have shown growth in performance and market share in China[32]. - Economic issues in China and Hong Kong persist, with retail markets showing signs of slowing down due to high interest rates and changing consumer patterns[55]. - The logistics and warehousing market in Hong Kong is under pressure, requiring companies to enhance service quality and adopt advanced technology to remain competitive[55]. Governance and Compliance - The Company has appointed Mr. Chen Jianguo as an independent non-executive Director, fulfilling governance requirements[61]. - The Audit Committee has reviewed the accounting principles and practices of the Group, relying on external auditor assessments[61]. - The Group has adopted a share option scheme, but no options have been granted, exercised, cancelled, or lapsed since its adoption[51]. Cash Flow and Financial Position - The company reported a net cash outflow of HK$19,595,000 for the period, compared to a net decrease of HK$12,523,000 in the prior year, indicating a worsening cash position[150]. - The company's cash and cash equivalents stood at HK$30,570,000, compared to HK$47,277,000 at the end of March 2024, reflecting a decline of approximately 35%[120]. - Net current assets decreased to HK$17,343,000 from HK$76,978,000, indicating a significant decline of about 77%[120]. Segment Information - The Group operates through three reportable segments: Milk Products Business, Logistics Business, and Property Investment[176]. - Revenue from the Milk Products Business is primarily generated from milk powder and baby food sales[176]. - The Logistics Business derives its revenue mainly from warehouse logistics services[176]. - Property Investment revenue is primarily from rental income from leased properties[176]. Financial Reporting and Standards - The interim financial information was prepared in accordance with International Accounting Standard 34, ensuring compliance with the applicable disclosure provisions[108]. - The financial statements reflect the same accounting policies as the 2024 annual financial statements, with certain amendments expected to be relevant in the 2025 annual financial statements[108]. - The Group has applied amendments to IFRSs for the first time, effective from April 1, 2024, with no material impact on financial positions or performance[173].
阿尔法企业(00948) - 2025 - 中期财报