Financial Performance - Revenue for the six months ended 30 September 2025 was HK$29,241,000, a decrease of 15.5% compared to HK$34,436,000 for the same period in 2024[11]. - Gross profit increased to HK$757,000 from HK$45,000, marking a significant improvement[11]. - Compensation income for the period was HK$9,370,000, slightly down from HK$9,978,000, representing a decrease of 6.1%[11]. - Loss before tax narrowed to HK$12,825,000 from HK$15,974,000, indicating a reduction of 19.5%[11]. - Total comprehensive income for the period was HK$12,447,000, up from HK$10,971,000, reflecting an increase of 13.4%[13]. - Loss attributable to owners of the Company was HK$12,881,000, an improvement from HK$15,973,000[12]. - Basic and diluted loss per share attributable to ordinary equity holders of the Company for the period was HK4.43 cents, an improvement from HK5.50 cents in the previous period[15]. - The company reported a total comprehensive loss for the period of HK$10,971,000, compared to a loss of HK$15,974,000 in the previous period, indicating an improvement of about 31.5%[21]. - The Group recorded a revenue of approximately HK$29,241,000 for the Reporting Period, a decrease from HK$34,436,000 in the previous period[113][116]. - Gross profit for the Reporting Period was approximately HK$757,000, with a gross profit margin of 2.58%, compared to HK$45,000 and 0.13% in the previous period[114][118]. - The Group's loss for the Reporting Period was approximately HK$12,825,000, an improvement from a loss of HK$15,974,000 in the previous period[133][137]. Expenses and Costs - Administrative expenses decreased to HK$7,550,000 from HK$8,345,000, a reduction of 9.5%[11]. - Finance costs decreased to HK$15,402,000 from HK$17,653,000, a decline of 12.8%[11]. - Total employee benefit expenses increased from HK$4,031,000 to HK$4,400,000, with wages and salaries rising from HK$3,953,000 to HK$4,331,000[69]. - Depreciation for the period was HK$745,000, with HK$740,000 attributed to right-of-use assets[69]. - Interest expenses on other borrowings decreased from HK$16,264,000 to HK$14,254,000 year-over-year[67]. Assets and Liabilities - Total non-current assets as of 30 September 2025 amounted to HK$1,701,346,000, up from HK$1,668,142,000 as of 31 March 2025, reflecting a growth of 2.0%[17]. - Current assets increased to HK$150,355,000 as of 30 September 2025, compared to HK$142,757,000 as of 31 March 2025, representing a rise of 5.6%[17]. - Total current liabilities rose to HK$610,755,000 as of 30 September 2025, compared to HK$587,253,000 as of 31 March 2025, indicating an increase of 4.0%[17]. - Net current liabilities as of 30 September 2025 were HK$(460,400,000), worsening from HK$(444,496,000) as of 31 March 2025[17]. - Total non-current liabilities increased to HK$187,309,000 as of 30 September 2025, compared to HK$182,456,000 as of 31 March 2025, marking a rise of 2.3%[19]. - Net assets as of 30 September 2025 were HK$1,053,637,000, an increase from HK$1,041,190,000 as of 31 March 2025, reflecting a growth of 1.2%[19]. - Total equity attributable to the owners of the Company was HK$883,660,000 as of 30 September 2025, up from HK$874,664,000 as of 31 March 2025, indicating an increase of 1.0%[19]. - The accumulated losses as of September 30, 2025, amounted to HK$1,171,376,000, which is an increase from HK$1,158,495,000 as of April 1, 2025[21]. - Total trade receivables as of September 30, 2025, amounted to HK$3,198,000, an increase from HK$54,000 as of March 31, 2025, primarily due to new transactions[81]. - Trade deposits and other receivables from Energy Technology increased to HK$144,307,000 as of September 30, 2025, compared to HK$139,820,000 as of March 31, 2025, reflecting a growth of approximately 3.5%[83]. - Other payables and accrued charges rose to HK$33,081,000 as of September 30, 2025, up from HK$27,847,000 as of March 31, 2025, indicating an increase of approximately 18.5%[85]. - Interest payable increased to HK$117,732,000 as of September 30, 2025, compared to HK$103,478,000 as of March 31, 2025, representing a rise of approximately 13.8%[85]. Cash Flow and Financing - Net cash generated from operating activities for the six months ended September 30, 2025, was HK$1,312,000, a significant increase from HK$411,000 in the same period last year[23]. - Cash and cash equivalents at the end of the period stood at HK$749,000, slightly up from HK$704,000 at the same time last year, showing a growth of approximately 6.4%[23]. - The company experienced a net decrease in cash and cash equivalents of HK$572,000 during the period, contrasting with a decrease of HK$283,000 in the previous year[23]. - The Group's cash and bank balances decreased to approximately HK$749,000 as of 30 September 2025, down from HK$1,675,000 as of 31 March 2025[148]. - The Group's financial assets at amortised cost, including cash and cash equivalents, amounted to HK$150,355,000[99]. - The Group's financial liabilities at amortised cost as of 30 September 2025 totaled HK$432,117,000[99]. - The Group's interest rate risk is managed by maintaining fixed-rate borrowings to minimize fair value interest rate risk[151]. - The Group incurred a loss attributable to owners of approximately HK$12,881,000 for the six months ended 30 September 2025, with net current liabilities of approximately HK$460,400,000 as of the same date[26]. Business Strategy and Operations - The Company continues to explore market expansion opportunities and new product development strategies[9]. - The Company is actively seeking business expansion opportunities and evaluating potential mergers and acquisitions within the industry[109][111]. - The Group did not generate revenue from the Coke Production Segment for two consecutive reporting periods due to the disposal of GRG Huscoke (Shanxi) Limited and construction delays of production supporting equipment[126]. - The overall strategy includes maintaining sustainable operations through processing and production before the coking ovens officially commence operation[110][112]. - The Group has entered into a framework agreement with Energy Technology to conduct coke production through leasing existing facilities[106]. Corporate Governance and Compliance - The interim financial statements have been prepared in accordance with Hong Kong Accounting Standard 34, ensuring compliance with applicable disclosure requirements[24]. - The financial statements have been prepared on a historical cost basis, except for certain financial instruments measured at fair value[32]. - The Group has applied amendments to HKFRS Accounting Standards, which had no material impact on its financial positions and performance[34]. - The Company has complied with the Corporate Governance Code provisions during the reporting period, except as disclosed[184]. - The roles of Chairman and Chief Executive Officer are held by Mr. Zhao Xu Guang, which the Board believes ensures consistent leadership and effective strategic planning[185]. - The Company has adopted the Model Code for Securities Transactions by Directors, and all Directors confirmed compliance during the reporting period[190]. Shareholder Information - The company did not recommend any interim dividend for the six months ended 30 September 2025, consistent with the previous year[71]. - The Company did not declare any interim dividend for the six months ending September 30, 2025[8]. - The Group's issued and fully paid ordinary shares remained at 290,373,235 shares as of both 30 September 2025 and 31 March 2025[90]. - As of September 30, 2025, Mr. Zhao Xu Guang holds 146,841,904 shares, representing approximately 50.57% of the issued share capital of the Company[170]. - Shun Wang Investments Limited, a subsidiary of Whole Advance Limited, also holds 146,841,904 shares, equating to 50.57% of the issued share capital[176]. - Rontac Resources Company Limited holds 14,718,922 shares, which is about 5.07% of the issued share capital[176]. - The Company did not have any share scheme in effect or any outstanding share options during the reporting period[179]. - The 2013 share option plan expired on March 28, 2023, with no active share plans or unexercised options during the reporting period[181]. - As of September 30, 2025, Mr. Li Hongwei is deemed to be interested in 14,718,922 shares of the Company, representing a significant ownership stake[182]. Legal and Regulatory Matters - The Group has received statutory demands and a winding-up petition from a major creditor, indicating material uncertainty regarding its ability to continue as a going concern[26]. - The hearing for a winding-up petition was adjourned to 24 November 2025 at the request of the major creditor[164]. - The winding-up petition hearing originally scheduled for August 25, 2025, has been postponed to November 24, 2025, at the request of the Petitioner[166]. - The settlement agreement regarding the winding-up petition will be formally signed after the completion of the adjustment of preference shares[165]. - The Company will inform shareholders and potential investors of any significant developments related to the petition as appropriate[165].
和嘉控股(00704) - 2026 - 中期财报