Revenue Performance - Total revenue decreased by HK$2,151,510, or 21%, from HK$10,353,668 for the six months ended May 31, 2024 to HK$8,202,158 (US$1,046,074) for the six months ended May 31, 2025[2] - Revenue for the six months ended May 31, 2025, was HK$8,202,158, a decrease of 20.7% compared to HK$10,353,668 for the same period in 2024[50] - Total revenues for the six months ended May 31, 2025, were HK$8,202,158 (US$1,046,074), a decrease of 20.8% compared to HK$10,353,668 in the same period of 2024[89] - Financial PR Services revenue decreased from HK$7,611,392 in 2024 to HK$4,679,637 in 2025, representing a decline of 38.4%[89] Cost and Expenses - Direct cost of revenues decreased by HK$1,235,933, or 36%, from HK$3,475,990 in 2024 to HK$2,240,057 (US$285,689) in 2025[9] - General and administrative expenses increased by HK$566,648, or 10%, from HK$5,633,768 in 2024 to HK$6,200,416 (US$790,778) in 2025[13] - Staff costs decreased by HK$310,710, or 19%, from HK$1,641,745 in 2024 to HK$1,331,035 (US$169,755) in 2025[14] - Professional and consultancy fees increased by HK$1,934,136, or 123%, from HK$1,576,579 in 2024 to HK$3,510,715 (US$447,744) in 2025[15] - Operating expenses for the six months ended May 31, 2025, totaled HK$9,165,755, a decrease of 5.4% from HK$9,687,065 in the prior year[50] Income and Taxation - Net income for the six months ended May 31, 2025, was HK$36,606, a significant decline from HK$1,231,158 in the prior year[50] - Income tax benefits of HK$82,500 (US$10,522) were recognized in 2025, compared to an expense of HK$40,302 in 2024, reflecting a decrease in income before taxes[24] Assets and Liabilities - Accounts receivable, net increased by HK$887,011, or 38%, from HK$2,358,162 as of November 30, 2024 to HK$3,245,173 (US$413,878) as of May 31, 2025[28] - Total current assets as of November 30, 2024, were HK$69,688,174, with cash and cash equivalents at HK$63,535,847[49] - Total liabilities increased to HK$8,497,197 as of May 31, 2025, compared to HK$7,124,051 as of November 30, 2024[49] - The allowance for credit losses rose from HK$7,027,799 in November 2024 to HK$7,527,799 in May 2025, indicating an increase of 7.1%[113] - As of May 31, 2025, the Group had taxes payables of HK$2,932,183 (US$373,960)[130] Cash Flow - Net cash used in operating activities was HK$95,540 for the six months ended May 31, 2025, compared to HK$1,562,652 for the same period in 2024[36] - Cash provided by investing activities was HK$2,694,991 for the period ended May 31, 2025, primarily from director repayment[40] - Net cash used in financing activities was HK$251,422 for the period ended May 31, 2025, primarily due to repayment of bank loan[42] - Cash and cash equivalents at the end of the period for May 31, 2025, were HK$65,883,876, reflecting a slight increase from HK$65,526,292 at the end of the previous period[52] Shareholder Equity and Stock - The company had total shareholders' equity of HK$64,641,861 as of May 31, 2025, compared to HK$64,605,255 as of November 30, 2024[49] - The weighted average number of ordinary shares for the six months ended May 31, 2025, was 12,565,068, slightly up from 12,377,049 in the previous year[50] - The Company had 450,000,000 authorized Class A Ordinary Shares, with 11,625,000 issued and outstanding[139] - The maximum aggregate number of Class A Ordinary Shares issuable under the 2025 Stock Incentive Plan is 2,625,000[144] Acquisitions and Future Plans - In August 2025, the Company signed an agreement to acquire LQ Capital Limited, which holds a money lender's license, to enhance its lending capabilities[142] - The Company completed the acquisition of LQ Capital on August 7, 2025, for total consideration of approximately HK$130,000[147] - The Company completed the acquisition of Shenzhen Huiyue Technology Co., Ltd on August 21, 2025, for a total consideration of HK$1, aiming to leverage opportunities in the Hong Kong IPO market[149] - The Company expects the acquisitions to require additional resources and potentially impact operating expenses in future periods[143] Financial Management and Risk - The Group's liquidity management ensures sufficient cash on demand to meet operational expenses for a period of 180 days[108] - The Group's exposure to foreign currency risk is minimal as HK$ is pegged to US$[106] - The Group does not expect significant changes in its assessment regarding unrecognized tax positions over the next 12 months[97]
Intelligent Group(INTJ) - 2025 Q2 - Quarterly Report