Financial Performance - The Group's gross profit decreased by approximately HK$4.2 million or approximately 2.3% to approximately HK$182.0 million for the Period compared to approximately HK$186.2 million for the six months ended 30 September 2023[8]. - Revenue for the six months ended September 30, 2024, was HK$346,843,000, a decrease of 5.4% from HK$368,326,000 in the same period of 2023[126]. - Profit attributable to owners of the parent increased to approximately HK$23.7 million, up from approximately HK$3.5 million for the same period last year, mainly due to fair value gains on investment properties and decreased impairment losses[29]. - Profit before tax from continuing operations increased to HK$25,152,000, up 91.1% from HK$13,129,000 in the previous year[126]. - Profit for the period from continuing operations was HK$23,742,000, compared to HK$12,529,000 in the prior year, representing a growth of 89.0%[126]. - The company reported a profit attributable to owners of the parent of HK$23,701,000 for the six months ended September 30, 2024, compared to HK$3,549,000 in the same period of 2023, representing a significant increase[154]. - Total comprehensive income for the period was HK$24,004,000, a recovery from a loss of HK$189,922,000 in the previous year[154]. - Basic and diluted earnings per share attributable to ordinary equity holders of the parent for the period was HK2.10 cents, up from HK0.30 cent in the prior year[154]. - The company experienced a total comprehensive loss of HK$211,046,000 in the previous period, indicating a substantial turnaround in performance[153]. Expenses and Costs - Selling and distribution expenses increased by approximately HK$20.0 million or approximately 17.9% to approximately HK$131.9 million, primarily due to increased marketing costs for new product launches and e-commerce expansion[25]. - Administrative expenses rose by approximately HK$8.3 million or approximately 15.1% to approximately HK$63.4 million, mainly due to higher legal and professional fees[28]. - Administrative expenses increased to HK$63,443,000, up 15.1% from HK$55,117,000[126]. Assets and Liabilities - The current ratio was approximately 1.5, down from approximately 2.2 as of 31 March 2024, indicating a tightening liquidity position[17]. - As at 30 September 2024, the Group's total cash and cash equivalents were approximately HK$96.3 million, a decrease from approximately HK$159.4 million as of 31 March 2024[37]. - Total non-current assets decreased from HK$ 1,264,882,000 to HK$ 1,217,055,000, a decline of approximately 3.75%[155]. - Current liabilities decreased from HK$ 380,872,000 to HK$ 359,530,000, a reduction of about 5.6%[156]. - Net current assets decreased significantly from HK$ 449,356,000 to HK$ 197,500,000, representing a decline of approximately 56.0%[156]. - Total assets less current liabilities decreased from HK$ 1,714,238,000 to HK$ 1,414,555,000, a decrease of around 17.5%[156]. - Total equity decreased from HK$ 1,385,456,000 to HK$ 1,198,517,000, reflecting a decline of about 13.5%[156]. - Cash and cash equivalents decreased from HK$ 763,400,000 to HK$ 557,030,000, a drop of approximately 26.9%[155]. - Trade receivables increased from HK$ 81,356,000 to HK$ 86,457,000, an increase of about 6.4%[155]. - Interest-bearing bank borrowings increased slightly from HK$ 184,749,000 to HK$ 185,386,000, an increase of approximately 0.3%[156]. - Financial assets at fair value through profit or loss decreased from HK$ 28,753,000 to HK$ 12,258,000, a decline of about 57.4%[155]. - Total non-current liabilities decreased from HK$ 328,782,000 to HK$ 216,038,000, a reduction of approximately 34.2%[156]. Investments and Commitments - As of September 30, 2024, the Group had capital commitments of approximately HK$12,800,000 for the acquisition of properties, plants, and equipment, an increase from approximately HK$2,600,000 as of March 31, 2024[44]. - The Group provided a guarantee to a bank for a maximum financing of HK$370,000,000 related to agricultural products in China, unchanged from March 31, 2024[45]. - As of September 30, 2024, there were no significant investments, acquisitions, or disposals of subsidiaries, associates, or joint ventures during the period[46]. Market and Strategic Positioning - The Group continues to develop new products, including "Madame Pearl's" cough syrup and "Pearl's" mosquito products, to meet consumer demand in both Hong Kong and Mainland China[33]. - The Group has engaged local distributors to enhance market penetration of its products in Mainland China, particularly in medical and consumer channels[13]. - The Group is strategically positioned to capitalize on favorable national policies in the Guangdong-Hong Kong-Macao Greater Bay Area, presenting significant growth and expansion opportunities in the Chinese medicine and health food industry[48]. - The national policy for the Guangdong-Hong Kong-Macau Greater Bay Area presents substantial growth opportunities for the Chinese pharmaceutical and health food sectors, which the company aims to leverage[75]. - The company is committed to investing in cross-border e-commerce initiatives to enhance brand presence and capitalize on regional opportunities[75]. - The company is strategically positioned to align its business strategies with the evolving market dynamics of the Greater Bay Area[75]. Corporate Governance - The company has maintained compliance with the Corporate Governance Code, except for a deviation where the roles of chairman and managing director are held by the same individual[96]. - The company plans to continue reviewing its corporate governance practices to enhance the best interest of the Group as a whole[99]. - The company is focused on maintaining high standards of corporate governance, emphasizing transparency, accountability, and integrity[97]. - The company has established an Audit Committee to oversee financial reporting processes and risk management, comprising three independent non-executive directors[136]. - The Audit Committee has reviewed the unaudited interim condensed consolidated financial information for the six months ended September 30, 2024, ensuring compliance with financial reporting standards[136]. - The company has adopted a code of conduct for securities transactions by directors, confirming compliance with the required standards throughout the period[134]. Share Capital and Options - The total number of share options available for grant as of September 30, 2024, was 117,110,288, with no share options granted, exercised, canceled, or lapsed under the 2023 Scheme during the period[70]. - The company did not grant, exercise, or cancel any share options under the 2023 Scheme during the period, with a total of 117,110,288 options available for grant as of September 30, 2024[94]. - The company plans to refresh the Scheme Mandate Limit for share options, which currently stands at 10% of shares in issue[105]. - The 2023 Share Option Scheme is effective for a period of ten years starting from August 22, 2023[108]. - The company repurchased a total of 46,000,000 shares at HK$0.01 each, which were subsequently cancelled on May 3, 2024[103]. - The total number of shares repurchased during the period was 46,000,000 at an average price of HK$0.260, totaling HK$11.80 million[113]. - As of September 30, 2024, the total number of shares in issue was 1,125,102,888[116]. - The company has issued a total of 1,125,102,888 shares as of the report date, reflecting its capital structure[133]. - The company aims to enhance shareholder value through share repurchases authorized at the annual general meeting held on August 22, 2023[133]. Foreign Exchange and Risks - The Group faced foreign exchange risks primarily due to its operations in mainland China, resulting in a retranslation loss of approximately HK$100,000 as of September 30, 2024, compared to a loss of approximately HK$187,500,000 for the six months ended September 30, 2023[43]. Subsequent Events - There were no material subsequent events undertaken by the Company or the Group after September 30, 2024, up to the date of this report[72].
位元堂(00897) - 2025 - 中期财报