Financial Performance - For the six months ended 31 December 2024, the Group's revenue was approximately HK$45.7 million, representing an increase of approximately 69.3% compared to HK$27.0 million for the same period in 2023[17]. - The Group reported a gross profit of approximately HK$2.0 million, a decrease of approximately 87.3% from HK$15.8 million in the previous year[17]. - The net loss for the Period was approximately HK$13.1 million, a change from a net profit of HK$6.7 million in the six months ended 31 December 2023[17]. - The Group's revenue increased by approximately 69.3% from approximately HK$27.0 million for the six months ended December 31, 2023, to approximately HK$45.7 million for the current period[27]. - The Group's gross profit decreased by approximately 87.3% from approximately HK$15.8 million for the six months ended December 31, 2023, to approximately HK$2.0 million for the current period[35]. - Loss before income tax for the period was HK$13,052,000, contrasting with a profit of HK$6,722,000 in the previous year, marking a shift of HK$19,774,000[98]. - Basic and diluted loss per share was HK$8.39 for the six months ended December 31, 2024, compared to earnings of HK$5.40 in the same period of 2023[98]. Business Strategy and Operations - The Group has focused on developing local business in the PRC, Hong Kong, and Macau, while also exploring opportunities in the Australian market[19]. - The Group's business strategy has shifted towards residential and non-retail projects due to the challenges faced in the retail sector[18]. - The Group commenced an online game distribution business during the six months ended 31 December 2024[16]. - The Group has commenced online game distribution business during the current period to broaden income sources[25]. - The management emphasized maintaining relationships with existing large brand customers and establishing new partnerships with property developers[19]. - The overall business sentiment has been impacted negatively, leading to a more cautious approach in executing business strategies[18]. Financial Position and Liabilities - As of December 31, 2024, cash and bank balances amounted to approximately HK$5.3 million, down from approximately HK$16.8 million as of June 30, 2024[48][49]. - The Group had other borrowings of approximately HK$55.0 million and shareholder's loans of approximately HK$30.0 million as of December 31, 2024, with a gearing ratio calculated as negative due to equity being in a deficit position[45][52]. - Total liabilities increased to HK$122,726,000 as of December 31, 2024, compared to HK$108,040,000 as of June 30, 2024, representing a rise of 13.6%[100]. - The company reported a capital deficiency of HK$57,249,000 as of December 31, 2024, worsening from HK$44,427,000 as of June 30, 2024[100]. - The Group's total borrowings, including shareholder loans, are scheduled for repayment within one year, indicating a focus on short-term liquidity management[164]. Employee and Administrative Expenses - Total employee benefits for the period were approximately HK$6.3 million, an increase from approximately HK$5.9 million for the six months ended December 31, 2023, attributed to hiring more staff[59]. - Administrative expenses remained stable at approximately HK$9.5 million for the current period, compared to approximately HK$9.6 million for the six months ended December 31, 2023[41]. Shareholder and Corporate Governance - The company did not declare any interim dividend for the period, consistent with the previous year[56]. - The company has adopted the Corporate Governance Code and considers itself compliant with the code provisions, except for the deviation regarding the roles of the Chairman and Chief Executive Officer[85][86]. - The company is committed to maintaining high standards of corporate governance to safeguard shareholder interests and enhance corporate value[84]. Market and Revenue Insights - Revenue from interior solutions projects increased significantly to HK$39,998,000, up 58.5% from HK$25,207,000 in the previous year[133]. - The Group's revenue from external customers in the People's Republic of China (excluding Hong Kong) surged to HK$24,781,000, a substantial increase from HK$4,804,000 in the prior period, reflecting a growth of 416.5%[127]. - The Group's online game distribution service income was HK$3,474,000, which was not present in the previous year's results, indicating a new revenue stream[133]. Cash Flow and Investments - Cash used in operations for the six months was HK$11,457,000, slightly down from HK$11,657,000 in the previous year[107]. - The company’s cash and cash equivalents decreased by HK$11,702,000 from the previous period, ending at HK$5,293,000[107]. - Net cash generated from investing activities was HK$7,000 for the current period, compared to a cash outflow of HK$605,000 in the previous period[107]. Borrowings and Financing Activities - The Group issued a bond of HK$5,000,000 at an interest rate of 5% per annum on May 2, 2024, with a maturity of 7 years[164]. - The Group drew down a loan facility of HK$30,000,000 from a shareholder at an interest rate of 15% per annum, fully utilized as of December 31, 2024[164]. - Interest expense to shareholders for the six months ended December 31, 2024, was HK$2,269,000, compared to HK$1,647,000 for the same period in 2023, reflecting an increase[175].
易纬集团(03893) - 2025 - 中期财报