Financial Performance - For the six months ended October 31, 2024, the net cash generated from operating activities was HKD 9,949,000, compared to a net cash used of HKD 19,486,000 in the same period of 2023[6]. - Revenue from LED decorative lights for the six months ended October 31, 2024, was HKD 20,424,000, a decrease of 22.9% from HKD 26,515,000 in the same period of 2023[34]. - The company reported a profit attributable to owners of the company of HKD 608,000 for the six months ended October 31, 2024, compared to HKD 855,000 in the same period of 2023, reflecting a decline of 28.9%[38]. - Revenue for the six months ended October 31, 2024, was HKD 20,424 thousand, a decrease of 22.3% compared to HKD 26,515 thousand for the same period in 2023[57]. - The net profit for the period was HKD 608 thousand, down 28.9% from HKD 855 thousand in the previous year[57]. - The company reported a total comprehensive income of HKD 1,024 thousand for the period, down from HKD 1,281 thousand in 2023[57]. - Basic and diluted earnings per share for the period were HKD 0.12, compared to HKD 0.17 in the previous year[57]. - The company experienced a 14.9% decrease in revenue from LED decorative lighting products in Canada, dropping to approximately HKD 14.3 million from HKD 16.8 million in the previous year[92]. - Revenue from U.S. customers decreased to approximately HKD 2.8 million for the year ending October 31, 2024, down from HKD 5.2 million in 2023, primarily due to tighter monetary policy and declining sales expectations[102]. - Net profit for the six months ending October 31, 2024, decreased by approximately HKD 0.3 million or 33.3% to HKD 0.6 million, with the net profit margin declining from 3.4% to 3.0%[123]. Cash Flow and Financial Position - The total cash and cash equivalents at the end of the period increased to HKD 9,172,000 from HKD 5,581,000 in the previous year, representing a growth of 64.5%[6]. - The net cash used in financing activities was HKD 2,674,000, a significant decrease from the net cash generated of HKD 7,183,000 in the previous year[6]. - The total cash flow from investing activities was minimal, with a net cash inflow of HKD 3,000 compared to HKD 4,000 in the previous year[6]. - Cash and bank balances increased significantly to HKD 9,172 thousand as of October 31, 2024, compared to HKD 1,915 thousand as of April 30, 2024[6]. - The company's total assets decreased slightly to HKD 96,442 thousand as of October 31, 2024, from HKD 99,047 thousand as of April 30, 2024[6]. - The net asset value increased to HKD 64,741 thousand as of October 31, 2024, compared to HKD 63,699 thousand as of April 30, 2024[6]. - Trade receivables as of October 31, 2024, were HKD 37,904 thousand, a decrease from HKD 40,184 thousand as of April 30, 2024[43]. - The expected credit loss provision decreased to HKD 33,650 thousand from HKD 35,317 thousand[43]. - Trade payables increased to HKD 2,081,000 as of October 31, 2024, compared to HKD 1,793,000 as of April 30, 2024[104]. - The current ratio as of October 31, 2024, was 3.9 times, up from 3.5 times as of April 30, 2024[128]. Expenses and Cost Management - The cost of goods sold for the period was HKD 15,536,000, down from HKD 22,537,000 in the previous year, indicating a reduction of 30.9%[36]. - Gross profit for the same period was HKD 4,888 thousand, representing a gross margin of 23.9% compared to HKD 3,978 thousand in 2023[57]. - The cost of sales decreased by approximately HKD 7.0 million or 31.1% to about HKD 15.5 million for the six months ended October 31, 2024, aligning with the overall revenue decline[88]. - Administrative expenses increased to HKD 5,338 thousand from HKD 4,137 thousand in the previous year[57]. - Administrative expenses rose by approximately HKD 1.2 million or 29.3% to about HKD 5.3 million for the six months ending October 31, 2024, mainly due to increased labor costs and legal fees[117]. - Financing costs decreased by approximately HKD 0.1 million or 20.0% to HKD 0.4 million for the six months ending October 31, 2024[121]. Research and Development - Research and development expenses were recorded as zero for the current period, compared to HKD 20,000 in the previous year[36]. - The company has not indicated any new product or technology developments in the current report[41]. - The company hired 6 senior engineers to focus on product design and development, and submitted 11 patent applications[143]. Shareholder and Corporate Governance - As of October 31, 2024, the major shareholder, Mr. Shao Guoliang, holds approximately 46.8% of the company's ordinary shares[150]. - Real Charm Corp holds 234,000,000 shares, representing approximately 46.8% of the company's equity as of October 31, 2024[161]. - The company has maintained compliance with the corporate governance code as per GEM listing rules during the six months ending October 31, 2024[171]. - The stock option plan allows for the granting of up to 50,000,000 options, with no options granted since the plan's adoption[173]. Future Outlook and Challenges - The company faces ongoing challenges due to external factors such as rising interest rates and market instability, which have weakened consumer demand[101]. - The planned utilization of unutilized IPO proceeds has been delayed due to impacts from trade disputes, social unrest in Hong Kong, and the COVID-19 outbreak since 2018[157]. Investments and Capital Expenditures - The company did not acquire or dispose of any property, plant, and equipment during the six months ended October 31, 2024[40]. - No significant investments, acquisitions, or disposals of subsidiaries and capital assets were reported for the six months ended October 31, 2024[142]. - The company utilized HKD 16.6 million (55%) for upgrading production facilities, HKD 7.5 million (25%) for repaying short-term bank loans, and HKD 3.0 million (10%) for general working capital[138]. - The company purchased 7 new automatic welding machines to enhance the automation level of LED decorative lights[143]. - The company upgraded 15 existing machines to improve the production capacity of LED light beads[143]. - The company participated in trade exhibitions in Hong Kong and conducted market exploration in the US, Philippines, Europe, and West Africa[143].
濠亮环球(08118) - 2025 - 中期财报