Financial Performance - For the six months ended September 30, 2024, Alco Holdings Limited reported a revenue of HKD 49,690 thousand, compared to HKD 85,686 thousand in the same period of 2023, representing a decrease of approximately 42%[1] - The gross profit for the period was HKD 4,612 thousand, slightly up from HKD 4,526 thousand year-over-year, indicating a marginal increase of about 1.9%[1] - The operating loss for the period was HKD 22,172 thousand, a significant decline from an operating profit of HKD 572,401 thousand in the previous year[1] - The net loss attributable to the company's ongoing operations was HKD 24,309 thousand, compared to a profit of HKD 572,354 thousand in the same period last year[1] - The company reported a total comprehensive loss of HKD 23,795 thousand for the period, compared to a comprehensive income of HKD 557,985 thousand in the previous year[18] - The company reported a loss attributable to owners of the company of HKD (24,309) thousand for the six months ended September 30, 2024, compared to a profit of HKD 572,354 thousand in the same period last year[33] - Basic and diluted loss per share from continuing and discontinued operations was HKD (0.25) for the current period, while it was HKD 14.26 for the same period last year[33] - The company recognized other income of HKD 2,477 thousand for the six months ended September 30, 2024, compared to HKD 613,382 thousand in the previous year, reflecting a substantial decrease[58] - The total loss for the group as of September 30, 2024, was HKD 79 million, with a loss per share of HKD 0.83[137] Cash Flow and Liquidity - Cash used in operating activities was HKD 16,789 thousand, an improvement from HKD 18,498 thousand in the previous year[26] - The cash and cash equivalents at the end of the period decreased to HKD 9,083 thousand from HKD 33,290 thousand at the end of the previous year, reflecting a decline of approximately 72.7%[26] - The company aims to reduce fixed operating costs across all functions and generate positive cash flow through the sale of investment properties and equipment[124] - As of September 30, 2024, the group had cash and deposits of HKD 9 million, with net borrowings amounting to HKD 1.919 billion[124] Assets and Liabilities - The total assets less current liabilities stood at HKD (70,820) thousand, slightly improved from HKD (74,034) thousand in the previous year[20] - The company’s total liabilities amounted to HKD 249,200 thousand, a decrease from HKD 256,444 thousand at the end of the previous reporting period[20] - The company’s equity attributable to owners was reported at HKD (78,782) thousand, compared to HKD (72,585) thousand in the previous year, indicating a worsening of equity position[21] - The total liabilities of the company as of September 30, 2024, amounted to approximately HKD 258 million, with net debt of about HKD 79 million[53] Operational Changes and Strategies - The company has implemented several cost-cutting measures, resulting in a significant reduction in operating costs, with employee benefits expenses decreasing from HKD 11,269 thousand to HKD 8,578 thousand year-on-year[51] - The management has reassessed the business coverage and plans to focus on overseas strategic markets while closing operations in unprofitable regions[42] - The company is considering further asset sales to reduce bank borrowings, with approximately HKD 48 million of bank loans secured by pledged properties[53] - The company has adopted an OEM/ODM production model, which is expected to positively impact daily maintenance costs significantly[42] - The company continues to face a challenging business environment, with a net loss expected if one-time gains from subsidiary divestitures are excluded[122] Sales and Revenue - The company reported external sales of HKD 49,690 thousand for the six months ended September 30, 2024, a decrease from HKD 85,686 thousand in the same period of 2023, representing a decline of approximately 42%[56] - The revenue from the company's own brand laptops decreased by 42% to HKD 50 million due to domestic economic slowdown and intense competition in the electronics market[119] Research and Development - Research and development expenses for the current period amounted to HKD (22,172) thousand, compared to HKD 572,441 thousand in the previous year, indicating a significant reduction in R&D spending[56] Corporate Governance - The executive directors include Ms. Liao Liping (Co-Chairman) and Mr. He Zeyu, while the non-executive directors include Mr. Tian Yi (Co-Chairman) and Mr. Yang Min[151] - The independent non-executive directors consist of Mr. Zhu Kaiqin, Mr. Lin Zhiwei, Mr. Deng Shejian, and Mr. Deng Chaowen[151] Miscellaneous - The company has not declared any dividends for the current period, consistent with the previous year[33] - The board does not recommend the payment of an interim dividend for the six months ending September 30, 2024 (2023: none)[120] - The company has canceled the consolidation of AVITA TECH due to the loss of control as of May 29, 2024[63][64] - The report is available for viewing on the Hong Kong Stock Exchange and the company's website[150] - The report date is November 29, 2024[152]
ALCO HOLD-NEW(00328) - 2025 - 中期财报