Financial Performance - The company's revenue for the six months ended September 30, 2025, was approximately HKD 10.7 million, a decrease of about 6.6% compared to HKD 11.4 million for the same period in 2024[3] - Gross profit for the same period was approximately HKD 8.2 million, down about 5.3% from HKD 8.7 million in 2024, with a gross margin of approximately 77.1%, an increase of about 1.0% year-on-year[5] - The net loss for the reporting period was approximately HKD 4.8 million, an improvement from a net loss of HKD 6.6 million in the previous year[5] - The company reported a loss before tax of HKD 4,766,000, an improvement from a loss of HKD 6,556,000 in the previous year, indicating a reduction in losses by 27.3%[48] - Basic and diluted loss per share for the period was HKD 1.32, compared to HKD 1.81 for the same period in 2024, showing a decrease in loss per share by 27.1%[48] - The company reported a basic loss attributable to equity holders of HKD 4,766,000 for the six months ended September 30, 2025, compared to a loss of HKD 6,556,000 for the same period in 2024, indicating a 27.2% improvement in losses year-over-year[78] Expenses and Cost Management - Administrative expenses decreased to approximately HKD 10.6 million from about HKD 12.3 million, a reduction of approximately 14.3%[7] - The company has implemented several cost control measures to reduce operating costs and improve working capital management[62] - Financing costs for the six months ended September 30, 2025, totaled HKD 2,189,000, down 10.3% from HKD 2,442,000 in 2024[72] - The company recorded a depreciation expense of HKD 2,901,000 for the six months ended September 30, 2025, down from HKD 4,088,000 in the previous year[54] - Depreciation expenses for property, plant, and equipment amounted to HKD 2,901,000 for the six months ended September 30, 2025, compared to HKD 4,088,000 in 2024, reflecting a reduction of 29.0%[73] Assets and Liabilities - Total assets as of September 30, 2025, were HKD 9,816,000, an increase from HKD 9,295,000 as of March 31, 2025[50] - Current liabilities increased to HKD 61,727,000 from HKD 59,504,000, reflecting a rise of 3.7%[50] - The company's equity as of September 30, 2025, was a deficit of HKD 15,516,000, worsening from a deficit of HKD 10,750,000 as of March 31, 2025[50] - The company's current liabilities net value as of September 30, 2025, was HKD 51,911,000[60] - Trade receivables increased to HKD 429,000 as of September 30, 2025, from HKD 314,000 as of March 31, 2025, reflecting a 36.5% increase[81] - Trade payables surged to HKD 1,663,000 as of September 30, 2025, compared to HKD 450,000 as of March 31, 2025, marking a significant increase of 270.4%[83] Corporate Governance - The company maintains a high standard of corporate governance and has complied with the relevant provisions of the corporate governance code during the reporting period[27] - The board regularly reviews the company's corporate governance practices and will implement changes as necessary to ensure ongoing compliance[28] - The company has adopted a code of conduct for securities trading by directors, ensuring compliance with GEM listing rules[29] - The company has established an audit committee to oversee financial reporting and risk management, consisting of three independent non-executive directors[47] Shareholder Information - Directors and senior executives hold a total of 270,000,000 shares, representing approximately 74.66% of the company's ordinary shares[31] - Profit Ocean, a major shareholder, holds 270,000,000 shares, which is 74.66% of the total issued shares[36] - Huang Dek Ming holds 18,135,000 shares, representing 5.01% of the total issued shares[36] - The directors are considered to have interests in all shares held by Profit Ocean due to a concerted action arrangement[32] Future Outlook - The company anticipates stable revenue growth as the overall economy in Hong Kong continues to improve, while closely monitoring administrative expenses to reduce future losses[9] - The company expects to maintain existing bank financing and secure new sources of financing[62] - Related party Chen Xinghai Enterprises Limited has confirmed it will not demand repayment of the promissory notes before ensuring the company can meet its obligations to other creditors[62] - The company has received a commitment from related party Jin Hai International Group Limited to provide ongoing financial support for at least twelve months from the date of board approval of the unaudited interim financial statements[62] Dividends - The board of directors resolved not to declare any dividends for the reporting period[21] - No interim dividend was recommended for the six months ended September 30, 2025, consistent with the previous year[76]
英记茶庄集团(08241) - 2026 - 中期财报