Financial Performance - Revenue for the six months ended September 30, 2025, was HKD 315,375,000, representing a 43.2% increase from HKD 220,276,000 in the same period of 2024[10] - Gross profit for the same period was HKD 24,090,000, up from HKD 21,531,000, indicating a gross margin improvement[10] - The net loss for the six months was HKD 14,536,000, compared to a net loss of HKD 18,222,000 in the prior year, reflecting a 20.5% reduction in losses[10] - The company reported a basic loss per share of HKD 2.33, an improvement from HKD 2.92 in the previous year[10] - The company incurred a pre-tax loss of HKD 16,061,000, compared to a loss in the previous year, reflecting ongoing challenges in the market[25] - The company reported a net loss of HKD 19,268,000 for the six months ended September 30, 2025, compared to a net loss of HKD 18,222,000 for the same period in 2024[28][33] - The company recorded a loss of approximately HKD 14,500,000 in fiscal year 2025, compared to a loss of approximately HKD 18,200,000 in fiscal year 2024[61] Revenue Breakdown - The distribution business generated revenue of HKD 219,425,000, up 106% from HKD 106,072,000 year-over-year[19] - The system integration solutions business reported revenue of HKD 95,950,000, a decrease of 16% from HKD 114,204,000 in the previous year[19] - The geographical revenue breakdown shows that Hong Kong contributed HKD 307,749,000, a 42% increase from HKD 217,405,000 in the previous year[20] - The company recognized revenue of HKD 304,800,000 at a point in time, which is a 63% increase from HKD 186,997,000 in the previous year[22] - Total revenue increased by approximately HKD 95.1 million or 43.2% from approximately HKD 220.3 million in the fiscal period ending September 30, 2024, to approximately HKD 315.4 million in the fiscal period ending September 30, 2025[46] - Revenue from the distribution business for the fiscal period ending September 30, 2025, was approximately HKD 219.4 million, an increase of approximately HKD 113.3 million or 106.8% compared to approximately HKD 106.1 million in the previous fiscal period[46] - Revenue from the system integration solutions business for the fiscal period ending September 30, 2025, was approximately HKD 96 million, an increase of approximately HKD 18.2 million or 15.9% compared to approximately HKD 114.2 million in the previous fiscal period[46] Asset Management - Total assets as of September 30, 2025, were HKD 418,714,000, down from HKD 454,671,000 as of March 31, 2025[11] - Non-current assets decreased to HKD 16,417,000 from HKD 24,688,000, indicating a potential need for asset revaluation[11] - Trade receivables totaled HKD 270,931,000 as of September 30, 2025, an increase from HKD 227,204,000 as of March 31, 2025[37] - The company reported a total of HKD 385,238,000 in trade and other receivables as of September 30, 2025, slightly down from HKD 386,415,000 as of March 31, 2025[37] Cash Flow and Liquidity - The company’s cash and cash equivalents increased to HKD 16,099,000 from HKD 10,459,000, suggesting better cash flow management[11] - Cash flow from operating activities before changes in working capital was negative HKD 6,260,000, an improvement from negative HKD 8,206,000 in the prior year[14] - The net cash generated from investing activities was HKD 38,768,000, significantly higher than HKD 4,286,000 in the same period last year[14] - The company reported a net increase in cash and cash equivalents of HKD 5,634,000, compared to a decrease of HKD 396,000 in the previous year[14] - The cash and cash equivalents at the end of the period stood at HKD 16,099,000, up from HKD 10,457,000 at the end of the same period last year[14] - The company has sufficient liquidity to meet its current and future operational funding needs[69] Expenses and Costs - Employee costs increased to HKD 42,196,000 for the six months ended September 30, 2025, up from HKD 31,884,000 in the previous year[31] - The cost of inventory recognized as an expense was HKD 265,386,000, significantly higher than HKD 153,218,000 for the same period in 2024[31] - Sales and service costs increased by approximately HKD 92.6 million or 46.6% from approximately HKD 198.7 million in the fiscal period ending September 30, 2024, to approximately HKD 291.3 million in the fiscal period ending September 30, 2025[51] - Administrative expenses increased by approximately HKD 7,600,000 or about 49.7%, from approximately HKD 15,300,000 in fiscal year 2024 to approximately HKD 22,900,000 in fiscal year 2025[57] - Financing costs decreased by approximately HKD 900,000 or about 45.0%, from approximately HKD 2,000,000 in fiscal year 2024 to approximately HKD 1,100,000 in fiscal year 2025[58] Corporate Governance - The company has adopted the corporate governance code as per the listing rules, ensuring effective accountability within its management structure[100] - The audit committee, consisting of three independent non-executive directors, has reviewed and agreed on the accounting principles and practices adopted by the group[103] - The roles of the chairman and CEO have been separated, with Mr. Yan serving as chairman and Mr. Wang as CEO since August 15, 2025[100] - The company has confirmed compliance with the securities trading standards throughout the six months ending September 30, 2025[102] Future Outlook - The company has plans for market expansion and new product development, although specific details were not disclosed in the call[10] - The company anticipates continued demand for cloud services driven by organizations adopting online productivity and collaboration services[47] - The company expects long-term positive development in the IT industry in Hong Kong despite current macroeconomic challenges[47] - The company faces challenges due to a shortage of IT professionals in Hong Kong, leading to increased employee cost pressures[52] - The geopolitical tensions between the US and China, along with the Russia-Ukraine war, may impact the stability and profitability of international business operations[52] Shareholder Information - As of September 30, 2025, Mr. Yan holds 362,115,000 shares, representing approximately 57.94% of the company's equity[95] - QH Technology Holdings Limited, fully owned by Mr. Yan, also holds 362,115,000 shares, equating to 57.94% of the company's equity[97] - Mr. Yan's spouse, Liu Xia, is considered to have an interest in the same 362,115,000 shares, maintaining the 57.94% equity stake[97] - No individuals or entities, excluding directors and senior management, held 5% or more of the company's shares as of September 30, 2025[98] Dividends and Stock Options - The company did not declare or recommend any dividends for the six months ended September 30, 2025, consistent with the previous year[32] - The company did not recommend any interim dividend for the six months ended September 30, 2025[75] - No stock options were granted, exercised, expired, or lapsed during the fiscal period ending September 30, 2025, and there are no unexercised stock options under the stock option plan[82]
数科集团(02350) - 2026 - 中期财报