Financial Performance - For the six months ended September 30, 2025, the Company reported revenue of HK$21,937,000, a slight increase of 0.32% compared to HK$21,867,000 in the same period of 2024[9]. - Gross profit for the same period was HK$667,000, representing a significant increase of 64.8% from HK$404,000 in 2024[9]. - Other income and gains surged to HK$16,110,000, compared to only HK$3,000 in the previous year, indicating a substantial growth in this area[9]. - The profit before income tax for the period was HK$11,131,000, a turnaround from a loss of HK$4,577,000 in the corresponding period of 2024[9]. - The net profit for the period reached HK$11,146,000, compared to a loss of HK$4,577,000 in 2024, showcasing a strong recovery[9]. - Basic and diluted earnings per share were both HK$0.82, a significant improvement from a loss of HK$0.33 per share in the previous year[10]. - Total comprehensive income for the period was HK$11,090,000, compared to a comprehensive loss of HK$4,590,000 in 2024, reflecting a positive shift in overall financial health[10]. Expenses and Costs - The Company incurred administrative expenses of HK$5,617,000, which increased from HK$4,931,000 in the same period last year, indicating rising operational costs[9]. - Distribution costs decreased to HK$6,000 from HK$39,000 in 2024, suggesting improved efficiency in distribution[9]. - The Company reported finance costs of HK$23,000, up from HK$14,000 in the previous year, indicating a slight increase in borrowing costs[9]. - Employee benefit expenses increased to HK$3,303,000 in 2025 from HK$3,078,000 in 2024, reflecting a rise of approximately 7.3%[64]. - The cost of inventories sold was HK$171,000 for the six months ended September 30, 2025, compared to HK$91,000 in 2024, indicating an increase of approximately 87.9%[64]. Assets and Liabilities - Total non-current assets decreased from HK$153,000 to HK$130,000, a decline of 15%[12]. - Current assets increased significantly from HK$15,101,000 to HK$23,205,000, representing a growth of 54%[12]. - Current liabilities rose from HK$17,581,000 to HK$26,224,000, an increase of 49%[12]. - The net current liabilities worsened from HK$2,480,000 to HK$3,019,000, indicating a decline in liquidity[12]. - Total liabilities decreased to HK$27,496,000 as of September 30, 2025, down from HK$30,206,000 as of March 31, 2025, a reduction of 8.5%[51]. Business Operations and Strategy - The Group's principal activities include system development services, value-added technical consultation services, and trading of hardware products and short messaging services[19]. - The Group is actively controlling administrative costs through human resources optimization and management remuneration adjustments[30]. - The Group's diversification and transformation strategy aims to mitigate the impact of complicated and volatile market conditions[114]. - The Group's strategic focus has shifted from IT system development to operational management, broadening revenue sources and fostering business growth[118]. - The company is focusing on expanding its digital product offerings, which contributed significantly to revenue growth in 2025[44]. Contracts and Collaborations - The Group signed three new contracts in May and June 2025 to cooperate with two information technology companies in providing short messaging services, which are expected to be profitable[32]. - The Group signed two contracts in the first quarter of the financial year ended 31 March 2024 to provide SMS for businesses through a major telecommunications carrier's network[116]. - In September 2025, the Group signed a contract to provide technology services for digital product operations, focusing on precision marketing through data management[127]. Share Capital and Ownership - The company raised net proceeds of approximately HK$100 million by issuing 450,000,000 ordinary shares at a subscription price of HK$0.225 per share[143]. - The total number of issued shares of the Company was 1,356,250,000 as of September 30, 2025[195]. - Mr. Pu Jian held 985,162,771 shares, representing 72.64% of the issued share capital of the Company as of September 30, 2025[192]. - Following an offer, Mr. Pu Jian's interest increased to 1,122,276,771 shares, approximately 82.75% of the total issued share capital of the Company[195]. Cash Flow and Financial Position - Cash and cash equivalents decreased from HK$1,839,000 to HK$267,000, a drop of 85%[16]. - Net cash used in operating activities improved from HK$4,935,000 to HK$1,303,000, a reduction of 74%[15]. - The company had a capital deficiency of HK$4,161,000 as of September 30, 2025, an improvement from HK$14,952,000[12]. - The total equity attributable to owners of the company increased from a deficit of HK$1,332,000 to HK$9,665,000[13]. Market Trends and Future Outlook - The number of short messages sent through mobile phones in China rose by 19.9% year on year in the first nine months of 2025[110]. - The development of SaaS platforms and cloud communication services is expected to boost demand for SMS among small and medium-sized enterprises in 2025[109]. - The company intends to capitalize on advancements in AI and chip development to support industrial upgrading and economic transformation in China[140]. Employee Information - As of September 30, 2025, the Group had 25 employees, an increase from 23 employees in 2024, with total remuneration of approximately HK$3,112,000, up from HK$2,848,000 in 2024[185][188]. - The Group's remuneration policies include contributions to a mandatory provident fund and a group medical scheme for employees[185][188].
城市酷选(08050) - 2026 - 中期财报