Financial Performance - Revenue for the six months ended September 30, 2025, was HKD 79,715,000, an increase of 13.5% compared to HKD 70,056,000 for the same period in 2024[4] - Gross profit for the six months ended September 30, 2025, was HKD 11,644,000, down 17.6% from HKD 14,133,000 in the previous year[4] - The company reported a net profit attributable to owners of HKD 747,000 for the six months ended September 30, 2025, compared to a profit of HKD 3,041,000 for the same period in 2024, representing a decrease of 75.5%[4] - The basic and diluted earnings per share for the six months ended September 30, 2025, were HKD (0.04), compared to HKD 0.27 for the same period in 2024[4] - The company reported a net profit before tax of HKD 747,000 for the six months ended September 30, 2025, compared to HKD 3,041,000 for the same period in 2024, reflecting a decrease of approximately 75.5%[18][19] - Profit attributable to owners of the company decreased to approximately HKD 750,000 from HKD 3,040,000, mainly due to increased operational costs and administrative expenses[53] Revenue Breakdown - Revenue from digital advertising services for the six months ended September 30, 2025, was HKD 5,553,000, a decrease of 16.6% from HKD 6,662,000 in 2024[15] - Revenue from social media management services decreased to HKD 12,926,000 for the six months ended September 30, 2025, down 5.3% from HKD 13,655,000 in 2024[15] - Creative and technology services revenue increased to HKD 61,236,000 for the six months ended September 30, 2025, up 22.9% from HKD 49,739,000 in 2024[15] - Revenue from external customers in China increased to HKD 9,386,000 in 2025 from HKD 8,805,000 in 2024, marking a growth of about 6.6%[20] - Revenue from social media management services was approximately HKD 12,930,000, accounting for about 16.21% of total revenue, a decrease from 19.49% in the previous period[46] - Revenue from digital advertising services was approximately HKD 5,550,000, representing about 6.97% of total revenue, down from 9.51%[46] - Revenue from creative and technology services rose to approximately HKD 61,240,000, making up about 76.82% of total revenue, up from 71.00%[46] Assets and Liabilities - Total assets as of September 30, 2025, were HKD 84,301,000, slightly up from HKD 83,628,000 as of March 31, 2025[5] - Current liabilities decreased to HKD 40,553,000 as of September 30, 2025, from HKD 43,617,000 as of March 31, 2025, indicating improved liquidity[5] - The company’s total equity increased to HKD 45,123,000 as of September 30, 2025, from HKD 41,768,000 as of March 31, 2025[5] - The total cash and cash equivalents at the end of the period decreased to HKD 27,588,000 in 2025 from HKD 34,114,000 in 2024, reflecting a decline of 19.1%[9] - Trade receivables as of September 30, 2025, amounted to HKD 51,064,000, a decrease from HKD 52,572,000 as of March 31, 2025, representing a decline of 2.9%[32] - The expected credit loss provision for trade receivables was HKD 8,870,000 as of September 30, 2025, consistent with the provision of HKD 8,844,000 as of March 31, 2025, indicating stability in credit risk assessment[32] Cash Flow and Financing - The net cash used in operating activities for the six months ended September 30, 2025, was HKD (3,594,000), compared to HKD (1,130,000) for the same period in 2024, indicating a significant increase in cash outflow[9] - The financing activities generated a net cash inflow of HKD 1,821,000 for the six months ended September 30, 2025, a decrease of 84.8% from HKD 11,948,000 in 2024[9] - The company issued new shares raising HKD 3,000,000 during the reporting period, contributing to an increase in total equity[6] - The company raised approximately HKD 17.3 million by issuing 16,672,000 rights shares at a subscription price of HKD 1.04 per share, with a net amount of approximately HKD 15.2 million after completion of the rights issue[54] - The intended use of the net proceeds from the rights issue includes approximately HKD 6 million for developing online advertising business in China, HKD 4 million for digital social media management and marketing services, and HKD 5.2 million for general working capital[54] Employee and Operational Costs - Total employee costs for the six months ended September 30, 2025, were HKD 16,323,000, a decrease from HKD 17,403,000 in 2024, reflecting a reduction of about 6.2%[27] - The employee cost for the group was approximately HKD 16,320,000, compared to HKD 17,400,000 for the six months ended September 30, 2024[68] - Selling expenses decreased by approximately 17.35% from HKD 3,020,000 to HKD 2,500,000, attributed to reduced marketing expenses and sales staff costs[49] - Administrative expenses increased by approximately 6.62% from HKD 9,290,000 to HKD 9,910,000, primarily due to rising administrative staff costs[50] Corporate Governance and Compliance - The board is committed to adhering to the corporate governance code as per GEM listing rules, with measures in place to enhance internal controls and professional training[88] - The audit committee, consisting of three independent non-executive directors, has reviewed the unaudited consolidated results for the period and found them compliant with applicable accounting standards[91] - The company has not disclosed any interests or conflicts of interest related to competitive businesses during the period[83] - The company has not adopted any stock option plans as of the report date[81] Market and Risk Factors - The group faces risks related to attracting and retaining key personnel, potential delays in customer payments, and reliance on third-party platforms[75] - The company has no foreign currency hedging policy but will continue to monitor foreign currency risks[60]
国恩控股(08121) - 2026 - 中期财报