Financial Performance - For the six months ended September 30, 2024, total revenue was HK$79,060,000, a decrease of 5.8% compared to HK$83,880,000 for the same period in 2023[21]. - Revenue from air freight services was HK$78,356,000, down 2.2% from HK$80,093,000 in the previous year[21]. - Sea freight revenue significantly decreased to HK$121,000 from HK$2,660,000, indicating a decline of 95.5%[21]. - The company reported a total comprehensive loss of HK$15,530,000 for the period, compared to a loss of HK$15,547,000 in the previous period[14]. - For the six months ended 30 September 2024, total revenue was HK$83,880,000, with segment revenue from freight forwarding and related logistics services at HK$82,753,000 and trading of fashion items at HK$1,127,000[47]. - The company reported a segment loss of HK$7,920,000 for freight forwarding and related logistics services, while the trading of fashion items generated a profit of HK$253,000, resulting in a total segment loss of HK$7,667,000[47]. - The Group recorded a net loss of approximately HK$15.5 million for the six months ended 30 September 2024, compared to a net loss of approximately HK$14.2 million for the same period in 2023, indicating a year-on-year increase in loss of about 9.2%[100]. - The Group recorded a loss for the period of approximately HK$15.5 million, compared to a loss of approximately HK$14.2 million in the previous period, primarily due to a decrease in turnover and high storage costs[148]. Cash Flow and Financial Position - The company's cash flow statement indicates a net cash outflow from operating activities of HK$4,000,000 for the six months ended September 30, 2024[6]. - As of September 30, 2024, accumulated losses increased to HK$79,054,000 from HK$63,507,000 at the beginning of the period[14]. - The company had refundable deposits with airlines amounting to HK$1,000,000 as of 30 September 2024, down from HK$2,000,000 as of 31 March 2024[61]. - The company obtained a loan of HK$3,500,000 from a local financial institution during the review period, compared to no borrowings as of 31 March 2024[68]. - As of 30 September 2024, the Group had bank borrowings of approximately HK$0.5 million and lease liabilities of approximately HK$0.3 million[151]. - Cash and cash equivalents decreased from approximately HK$14.8 million at 31 March 2024 to approximately HK$6.8 million at 30 September 2024[166]. - The gearing ratio increased to approximately 10.0% at 30 September 2024 from approximately 2.7% at 31 March 2024 due to increased borrowings from a financial institution[168]. Revenue Breakdown - Revenue from air freight forwarding and related logistics services for the Review Period was approximately HK$78.4 million, accounting for about 99.1% of the Group's total revenue, a decrease from approximately HK$80.1 million in the Previous Period[108]. - Revenue from sea freight forwarding and related logistics services dropped to approximately HK$0.1 million, representing about 0.2% of total revenue, down from approximately HK$2.7 million in the Previous Period[108]. - Revenue from trading of fashion items decreased to approximately HK$0.6 million, accounting for about 0.7% of total revenue, compared to approximately HK$1.1 million in the Previous Period[108]. - The Group's total revenue decreased by approximately 5.8% from approximately HK$83.9 million in the Previous Period to approximately HK$79.0 million for the Review Period[133]. Cost and Expenses - The Group's gross profit turned into a gross loss of approximately HK$2.5 million, a decrease of approximately 364.4% from a gross profit of approximately HK$0.9 million in the Previous Period[109]. - Gross profit margin decreased from approximately 1.1% in the Previous Period to a gross loss margin of approximately 3.1% for the Review Period[109]. - Administrative expenses decreased to approximately HK$11.0 million from approximately HK$12.0 million in the Previous Period, primarily due to reductions in staff costs and benefits, audit fees, and other expenses[137]. - The Group's total cost for employee compensation and benefits was approximately HK$8.0 million, up from approximately HK$6.5 million in the previous period[161]. Corporate Governance and Compliance - The company held its postponed annual general meeting on September 23, 2024, resulting in the retirement of Mr. Zhang Pangfei and Ms. Wu Yushan as executive directors, and Ms. Lai Pik Chi Peggy as an independent non-executive director[183]. - Following the retirement of Ms. Lai, the company failed to meet several GEM Listing Rules requirements, including having at least three independent non-executive directors and a minimum of three members in the audit and remuneration committees[183]. - On October 9, 2024, Mr. Tam Chi Ming George and Mr. Wan San Fai Vincent were appointed as independent non-executive directors, restoring compliance with GEM Listing Rules[186]. - The company aims to meet rising expectations of shareholders and investors through enhanced corporate governance practices[187]. - The company has complied with the corporate governance code and guidelines since April 1, 2024, as required by GEM Listing Rules Appendix C1[188]. Market Outlook and Strategy - The decline in demand for cargo spaces during the Review Period was attributed to the slow recovery of the global economy post-COVID-19, impacting the logistics industry significantly[100]. - The Group is cautiously optimistic about future business opportunities in logistics, focusing on understanding customer needs amid supply-side uncertainties[102]. - The Group plans to diversify its business operations to reduce reliance on existing logistics services and expand its revenue base[105]. - The Group is actively seeking potential investment opportunities to diversify its business portfolio and broaden its revenue base[125]. - A new business segment trading in fashion items was commenced in October 2022, involving sourcing luxury products from Europe, although the Group remains vigilant due to sluggish global economic conditions[103].
万励达(08482) - 2025 - 中期财报