Financial Performance - For the six months ended September 30, 2024, the profit attributable to owners of the Company was HK$101,741,000, a decrease of 47.5% compared to HK$193,688,000 for the same period in 2023[13]. - Total comprehensive income for the period was HK$100,994,000, down from HK$192,526,000 in the previous year, reflecting a significant decline[27]. - Basic earnings per share decreased to HK$5.87 from HK$13.23, indicating a drop of 55.7% year-over-year[28]. - The Group's total comprehensive expense for the period was HK$193,688,000[90]. - The Group's revenue for the Financial Period was approximately HK$3.0 million, a decrease of approximately 18.9% compared to HK$3.7 million in the Previous Financial Period[160]. - Profit attributable to the owners of the Company for the Financial Period was approximately HK$101.7 million, down from HK$193.7 million in the Previous Financial Period[175]. Assets and Liabilities - As of September 30, 2024, net assets increased to HK$471,248,000 from HK$319,431,000 as of March 31, 2024, representing a growth of 47.5%[17]. - Current assets as of September 30, 2024, included trade receivables of HK$3,372,000, down from HK$4,905,000, indicating a decrease of 31.2%[29]. - The Company reported non-current liabilities of HK$55,618,000, a decrease from HK$671,991,000, showing a significant reduction in financial obligations[17]. - The Company’s total equity attributable to owners was HK$458,920,000, compared to HK$930,168,000 in the previous period, reflecting a decrease of 50.7%[17]. - The accumulated losses of the Group amounted to HK$801,457,000 as of 30 September 2024[101]. - The Group's total equity as of 30 September 2024 was HK$1,119,294,000[99]. - The Group has outstanding loans from a substantial shareholder and a former associate totaling approximately HK$25,487,000, which are due for repayment within the next 12 months[124]. - As of 30 September 2024, the Group has net current liabilities of approximately HK$846,358,000, including outstanding convertible bonds of HK$768,471,000 maturing in July 2025[107]. - The Group's current liabilities as of September 30, 2024, amounted to approximately HK$846,358,000, which includes convertible bonds of HK$768,471,000 due in July 2025[124]. Clinical Trials and Product Development - The management is working on a Clinical Trial for an oral insulin product, expected to launch in Q1 2026, with no negative feedback reported so far[111]. - The Group is currently in the third phase of clinical trials for its oral insulin product, with commercialization expected to generate future cash flows contingent on successful trial outcomes and necessary regulatory approvals[142]. - Approximately 480 patients have been enrolled in the Clinical Trial, which commenced in July 2020, and patient recruitment will continue[180]. - The oral insulin product is expected to be launched in the market by the first quarter of 2026, with significant demand anticipated due to the growing diabetic population in the PRC[166]. - The product will be the first oral insulin drug available in the market and is expected to be protected for 5 years under current PRC regulations[166]. - The in-process research and development project for the oral insulin product has a carrying value of HK$1,373 million recorded as an intangible asset[176]. - The Group will inject additional resources into the clinical trial of the oral insulin product to facilitate its development[161]. - The management performed an impairment assessment of intangible assets, concluding that the recoverable amount exceeds the carrying value, thus no impairment is necessary[181]. - The Company is focused on ensuring that its in-process R&D aligns with its commercialization schedule[185]. - The Company has established a project team to oversee the development and commercialization of new products[185]. Financing and Support - The Company has received financial support from a substantial shareholder, who will not demand repayment of approximately HK$6,800,000 for at least 12 months[111]. - The management is actively seeking other financing and borrowing opportunities[111]. - A shareholders' loan agreement was entered into for a total sum of HK$20 million to support the operation of the Clinical Trials[183]. - The subscription price for the convertible bonds will be offset against the outstanding shareholder's loans of HK$55,500,000[190]. - The Group's cash flow from financing activities showed a net decrease of HK$2,630,000 for the six months ended September 30, 2024, compared to a decrease of HK$511,000 in the previous period[140]. Compliance and Governance - The Company has maintained compliance with the Model Code for Securities Transactions by Directors throughout the financial period[2]. - The Group's financial statements have been prepared on a going concern basis, with significant uncertainties regarding the ability to generate cash flows from the successful completion of clinical trials[128]. - The application of new and amended HKFRSs in the current period has had no material impact on the interim condensed consolidated financial information[134]. - The Group has not early adopted any new and revised HKFRSs that have been issued but are not yet effective[134]. Market and Business Conditions - The decrease in revenue was mainly due to unfavorable business conditions affecting the trading of beauty equipment and products segment[160]. - The Group has two reportable segments: trading of beauty equipment and products in Hong Kong, and research and development and commercialization of products[132]. - The Group's major trading products are beauty equipment and beauty products, which represent the primary source of revenue[184]. - There were no significant market expansions or acquisitions reported in the latest financial results[1]. - The Company has not disclosed any new product launches or technological advancements during this reporting period[1]. Convertible Bonds - On July 27, 2023, the Company conditionally agreed to issue convertible bonds amounting to HK$55,500,000, with a conversion price set at HK$0.211 per share[186]. - As of August 15, 2023, the total outstanding convertible bonds amounted to HK$359,600,000, with amendments to certain terms and conditions agreed upon[195]. - The amendment to the convertible bonds was approved on May 24, 2024, and completed on June 21, 2024[200]. - The conversion price for certain convertible bonds due in October and December 2023 was amended from HK$0.40 to HK$0.202[198]. - The maturity date for some convertible bonds due in December 2024 and April 2025 will not be extended[198]. - The Group's cash and cash equivalents at the end of the period were affected by foreign exchange rate changes, resulting in an increase of HK$3,075,000[140].
领航医药生物科技(00399) - 2025 - 中期财报