Financial Performance - The company reported revenue of HKD 28,936,000 for the six months ended December 31, 2024, representing an increase of 19.5% compared to HKD 24,160,000 for the same period in 2023[10]. - Gross profit for the same period was HKD 4,642,000, slightly down from HKD 4,812,000, indicating a decrease of 3.5%[10]. - Operating loss narrowed to HKD 2,088,000 from HKD 2,771,000, showing an improvement of 24.7% year-over-year[10]. - The company recorded a net loss of HKD 2,104,000, compared to a net loss of HKD 2,934,000 in the previous year, reflecting a 28.3% reduction in losses[10]. - The basic loss per share improved to HKD (0.26) from HKD (0.36), indicating a 27.8% improvement[10]. - The total comprehensive loss for the six months ended December 31, 2024, was HKD (3,311,000), compared to a loss of HKD (2,934,000) for the same period in 2023, reflecting an increase in losses[16]. - The group reported a basic loss per share of HKD 2,096,000 for the six months ended December 31, 2024, compared to a loss of HKD 2,883,000 for the same period in 2023[35]. - The company reported a loss attributable to shareholders of approximately HKD 2,096,000 for the six months ended December 31, 2024, a decrease of about 27.30% compared to HKD 2,883,000 for the same period in 2023[59]. Assets and Liabilities - Total assets as of December 31, 2024, amounted to HKD 68,837,000, up from HKD 59,218,000 as of June 30, 2024, indicating a growth of 16.3%[13]. - The company's total liabilities increased to HKD 41,377,000 from HKD 29,600,000, representing a rise of 39.9%[13]. - Total assets as of December 31, 2024, amounted to HKD 70,456,000, an increase from HKD 60,827,000 as of June 30, 2024[28]. - Total liabilities as of December 31, 2024, were HKD 41,377,000, up from HKD 29,600,000 as of June 30, 2024, indicating a rise in financial obligations[28]. - Trade receivables increased to HKD 40,656,000 as of December 31, 2024, compared to HKD 27,816,000 as of June 30, 2024, reflecting a growth of 46%[40]. - The group reported a significant increase in trade payables, which rose to HKD 37,483,000 as of December 31, 2024, from HKD 25,206,000 as of June 30, 2024[43]. Cash Flow and Liquidity - The company’s cash and cash equivalents decreased to HKD 10,682,000 from HKD 17,038,000, a decline of 37.4%[13]. - Cash and cash equivalents at the end of the period were HKD 10,682,000, down from HKD 12,344,000 at the end of December 31, 2023, showing a decrease in liquidity[18]. - The net cash used in operating activities for the six months ended December 31, 2024, was HKD (5,117,000), compared to HKD 885,000 for the same period in 2023, indicating a significant decrease in cash flow[18]. Revenue Segments - The company’s e-commerce segment generated revenue of HKD 10,085,000 for the six months ended December 31, 2024, compared to HKD 10,534,000 in the same period of 2023, reflecting a slight decline[24]. - Revenue from the sale of second-hand mobile phones increased significantly to HKD 18,419,000, up 39.5% from HKD 13,218,000 in the previous year[29]. - The swimwear and apparel segment generated revenue of approximately HKD 10,085,000, a decrease from HKD 10,534,000 in the prior year, with a gross profit margin of 37.29%[59]. - The e-commerce and online shopping segment saw revenue rise to approximately HKD 18,419,000 from HKD 13,218,000, with a gross profit margin of 2.44%[60]. - The lending segment maintained a gross profit margin of 100%, with revenue of approximately HKD 432,000, unchanged from the previous year[62]. Corporate Governance and Compliance - The audit committee has reviewed the unaudited results for the six months ending December 31, 2024[88]. - The company has complied with the corporate governance code as per GEM listing rules during the reporting period[90]. - All directors adhered to the trading standards and the company's code of conduct regarding securities transactions[91]. - The company is not aware of any incidents of employees violating the code of conduct[92]. Future Outlook and Strategy - The company aims to enhance its market presence and explore new product development strategies in the upcoming periods[12]. - The group expects stable performance in the production and sale of swimwear and apparel, while continuing cost-cutting measures to seize market recovery opportunities[72]. - The group will maintain and develop its lending business, allocating sufficient resources to meet business demands[72]. - The company continues to adopt effective cost measures to control its business cost structure and is cautiously expanding its business through natural growth[64]. Share Capital and Ownership - As of December 31, 2024, the company's issued and paid-up capital included 801,535,615 ordinary shares and 1,083,333,333 convertible preference shares[66]. - Major shareholders include Mr. Liu with 18.68%, JL Investments Capital Limited with 17.68%, and Big Good Management Limited with 16.85% of the issued share capital[80]. - The total issued share capital as of December 31, 2024, is 801,535,615 shares[81]. - Wide Select holds 237,435,165 shares, representing 29.62% of the issued share capital[84]. - The conversion price for the non-voting convertible preference shares has been adjusted from HKD 1.20 to HKD 1.121 due to a rights issue[84]. - The conversion price for the B series non-voting convertible preference shares has been adjusted from HKD 0.30 to HKD 0.2803 due to a rights issue[85]. - The company did not redeem any shares during the reporting period[86]. - There were no purchases or sales of shares by the company or its subsidiaries during the reporting period[86]. Employee and Operational Information - As of December 31, 2024, the group has a total of 95 full-time employees, maintaining the same number as of June 30, 2024[69]. - The company terminated its stock option plan on January 8, 2025, and adopted a new restricted share unit plan to incentivize contributions from directors and employees[74]. - The maximum number of new shares to be issued under the restricted share unit plan is capped at 10% of the total issued shares as of December 18, 2024[75]. Risk Management - The company is monitoring foreign exchange risks and will use hedging tools as necessary to manage potential financial impacts[65]. - The group maintained strict control over overdue receivables, with a notable increase in receivables aged over 180 days to HKD 18,470,000 from HKD 13,586,000[41]. - The group incurred depreciation expenses of HKD 277,000 for property, plant, and equipment, down from HKD 336,000 in the previous year[33]. - The company reported no significant contingent liabilities as of December 31, 2024[52]. - The group has no significant contingent liabilities as of December 31, 2024, consistent with the situation on June 30, 2024[70]. - There are no significant asset pledges as of December 31, 2024, mirroring the status on June 30, 2024[71].
荟萃国际(控股)(08041) - 2025 - 中期业绩