Financial Performance - For the six months ending September 30, 2025, the group's revenue decreased by approximately HKD 28.4 million or 20.5% to about HKD 110.1 million, compared to HKD 138.5 million for the same period in 2024[12][13] - The group's gross profit slightly decreased by approximately HKD 0.1 million or 3.0% to about HKD 5.1 million, with a gross profit margin of approximately 4.6%, up from 3.8% in the previous period[14] - For the six months ended September 30, 2025, the group recorded a net loss of approximately HKD 3.7 million, a decrease of about HKD 6.8 million or 64.8% compared to the net loss of approximately HKD 10.5 million for the same period in 2024[18] - The company's financing activities generated a net cash inflow of HKD 2,513,000, compared to a cash outflow of HKD 500,000 in the previous year[36] - The company reported a loss attributable to equity holders of HKD 3,746,000 for the six months ended September 30, 2025, compared to a loss of HKD 10,465,000 in the same period of 2024, indicating an improvement of approximately 64.1%[55] - Basic loss per share for the six months ended September 30, 2025, was HKD 0.78, compared to HKD 2.18 for the same period in 2024, reflecting a significant reduction in losses[55] Revenue and Expenses - The decrease in revenue was primarily due to the completion of large projects and a reduction in the number of large projects available in the market[13] - Administrative and other operating expenses, along with expected credit loss provisions, amounted to approximately HKD 9.4 million, a reduction of HKD 3.5 million or 27.0% from approximately HKD 12.9 million in the same period of 2024[16] - Financial costs decreased to approximately HKD 2.1 million, down by HKD 0.7 million or 23.4% from approximately HKD 2.8 million for the same period in 2024, primarily due to a reduction in the average interest rate on borrowings[17] - The total employee costs for the six months ended September 30, 2025, were approximately HKD 8.9 million, a decrease from approximately HKD 12.2 million for the same period in 2024[28] - Employee costs, including directors' emoluments, totaled HKD 8,935,000 for the six months ended September 30, 2025, down from HKD 12,161,000 in the same period of 2024, a decrease of approximately 26.5%[51] Cash Flow and Liquidity - The total cash and cash equivalents as of September 30, 2025, were approximately HKD 44.3 million, an increase from approximately HKD 43.1 million as of March 31, 2025, due to a net cash inflow of approximately HKD 1.2 million from operating and financing activities[19] - The company reported a net cash outflow from operating activities of HKD 1,332,000 for the six months ended September 30, 2025, an improvement from HKD 10,362,000 in the same period last year[36] - Cash and bank balances reached HKD 44,270,000 as of September 30, 2025, compared to HKD 43,089,000 as of March 31, 2025[65] Assets and Liabilities - The group's debt-to-equity ratio increased from approximately 82.8% as of March 31, 2025, to approximately 93.5% as of September 30, 2025, mainly due to an increase in borrowings[19] - The total liabilities increased from HKD 63,313,000 to HKD 67,903,000, marking an increase of approximately 7.5%[34] - The total assets minus current liabilities amounted to HKD 140,717,000, compared to HKD 139,873,000 as of March 31, 2025, reflecting a slight increase of 0.6%[33] - The company's non-current assets decreased from HKD 1,625,000 to HKD 1,160,000, representing a decline of approximately 28.5%[33] - Trade and other receivables decreased from HKD 25,541,000 to HKD 17,691,000, a reduction of about 30.8%[33] Business Outlook and Strategy - The economic outlook for Hong Kong in the second half of 2025 is expected to remain stable with a GDP growth rate projected between 2% and 3%[12] - The company is actively exploring new business opportunities, particularly in the Web3.0 and new energy sectors, which are strongly supported by government policies[12] - The group aims to maintain flexibility and enhance resilience to thrive in the changing economic environment in mainland China and Hong Kong[12] Shareholder Information - Major shareholders include China Sports Asset Management Co., Ltd., holding 360,000,000 shares, representing 75% of the total issued share capital[77] - The company has adopted a share option scheme allowing for a maximum of 48,000,000 shares to be granted, which is 10% of the issued shares as of the report date[80] - The company has not purchased, sold, or redeemed any of its securities during the six months ending September 30, 2025[88] - The company has maintained sufficient public float as required by listing rules as of September 30, 2025[91] Corporate Governance - The company has adopted and complied with the Corporate Governance Code during the reporting period[93] - The Audit Committee, consisting of three independent non-executive directors, reviewed and approved the interim financial statements for the six months ending September 30, 2025[96]
中国数智科技(01796) - 2026 - 中期业绩