Financial Performance - The Group recorded revenue of approximately HK$4.1 million for the Financial Period, a decrease of approximately 37.6% from HK$6.6 million in the Previous Financial Period[9]. - The Company reported a loss of approximately HK$118.3 million for the Period, compared to a profit of approximately HK$121.11 million in the Previous Financial Period[10]. - The loss was significantly impacted by a non-cash item of approximately HK$250.7 million related to the second amendment of a convertible bond with a principal amount of HK$715 million issued during the Previous Financial Period[10]. - The Group's revenue for the Financial Period was approximately HK$4.1 million, a decrease of approximately 37.6% compared to HK$6.6 million in the Previous Financial Period[20]. - The Group recorded a loss attributable to owners of approximately HK$115.7 million, compared to a profit of HK$125.1 million in the Previous Financial Period, primarily due to a non-cash item related to Convertible Bonds III[20]. - Gross profit for the period was HK$421,000, down 43.2% from HK$741,000 in the previous year[93]. - Loss for the period amounted to HK$118,272,000, compared to a profit of HK$121,111,000 in the same period last year[93]. - Total comprehensive income for the period was a loss of HK$118,351,000, compared to a gain of HK$121,292,000 in the previous year[95]. - Basic and diluted loss per share was HK$7.90, compared to earnings of HK$8.54 per share in the same period of 2021[101]. - The total comprehensive expense for the six months ended 30 September 2022 was HK$125,076,000, a decrease of 3.965% compared to HK$125,257,000 for the same period in 2021[144][145]. Clinical Development - The Group is developing a technology for oral insulin administration, currently in Phase III clinical trials, with about 296 patients participating[14]. - The Group aims to commercialize the oral insulin product by mid-2024 despite delays caused by COVID-19[14]. - Approximately 296 patients have been enrolled in the Clinical Trial testing, which commenced in July 2020, with 19 hospitals participating[25][26]. - The oral insulin product is expected to be launched by mid-2024, with significant demand anticipated in the PRC due to the growing diabetic population[26]. - The project team will regularly monitor the progress of the oral insulin product to ensure commercialization by mid-2024[34][37]. - The Group's major asset, the development of an oral insulin product in the PRC, is currently in Phase III clinical trials, with future cash flow dependent on the successful completion of these trials and necessary regulatory approvals[180]. - The management is working on a Clinical Trial for an oral insulin product, expected to launch in mid-2024, with no negative feedback reported so far[187]. Financial Position and Liabilities - As of September 30, 2022, the Group's total borrowings were approximately HK$1,103.2 million, an increase from approximately HK$987.6 million as of March 31, 2022, reflecting a growth of 11.7%[41]. - The Group's current assets to current liabilities ratio decreased to 0.02 as of September 30, 2022, compared to 0.19 as of March 31, 2022[43]. - The gearing ratio increased to 0.80 as of September 30, 2022, from 0.72 as of March 31, 2022, indicating a higher level of financial leverage[43]. - Current liabilities totaled HK$824,391,000, with net current liabilities of HK$808,100,000[106]. - Total assets less current liabilities were HK$567,005,000, down from HK$1,295,224,000 as of March 31, 2022[106]. - Non-current liabilities included convertible bonds of HK$259,919,000, down from HK$871,791,000[106]. - Net assets decreased to HK$276,994,000 from HK$395,266,000 as of March 31, 2022[106]. - The Group had no significant investments or material acquisitions during the Financial Period, indicating a conservative approach to capital allocation[45]. - The Group's total liabilities were approximately HK$1,114.4 million as of September 30, 2022, compared to approximately HK$999.7 million as of March 31, 2022, reflecting an increase of 11.5%[43]. - The Group may face significant uncertainty regarding its ability to continue as a going concern due to its current liabilities and the dependency on the success of its clinical trials[181][183]. - The Group's total equity includes accumulated losses, which may impact its financial stability moving forward[165]. Shareholding Structure - As of September 30, 2022, Dr. Mao Yumin holds 1,187,200,000 shares, representing 81.08% of the issued share capital of the Company[82]. - Dr. Mao also has interests in derivative shares totaling 55,000,000 and 20,000,000, which will be issued upon exercising conversion rights attached to convertible bonds amounting to HK$359,600,000[84]. - The Company has a substantial shareholder, Chau Yiu Ting, who holds 328,600,000 shares, accounting for 22.44% of the issued share capital[82]. - United Gene Holdings Limited and its associates collectively hold 82,770,810 shares, representing 5.65% of the issued share capital[82]. - The Company has no other directors or executives with interests or short positions of 5% or more in the issued share capital as of September 30, 2022[89]. - The total number of shares held by Dr. Mao directly is 363,200,000 ordinary shares[87]. - The Company’s shareholding structure indicates significant control by Dr. Mao and associated entities, with multiple layers of ownership[84]. - Good Links Limited and Victory Trend Limited each hold 7,770,810 shares, representing 0.53% of the issued share capital[82]. Cash Flow and Financing - Net cash used in operating activities for the six months ended 30 September 2022 was HK$2,858,000, compared to HK$15,285,000 for the same period in 2021[170]. - Net cash generated from financing activities for the six months ended 30 September 2022 was HK$2,546,000, a decrease from HK$8,887,000 in the same period in 2021[172]. - The cash and cash equivalents at the end of the period were HK$3,821,000, down from HK$4,083,000 at the beginning of the period[173][177]. - The effect of foreign exchange rate changes resulted in a gain of HK$50,000 for the six months ended 30 September 2022, compared to a loss of HK$183,000 in the same period in 2021[174]. - The company has received confirmation from a former associate that it will not demand repayment of approximately HK$41,947,000 for at least 12 months from the date of the financial statements[185]. - The company has secured financial support from a substantial shareholder, confirming that it will not demand repayment of a loan of HK$43,500,000 for at least 12 months[185]. - Smart Ascent has obtained financing facilities of HK$12,000,000 from shareholders to support the Clinical Trial and other development costs, with HK$7,000,000 available at the date of the financial statements[187]. - The directors are confident that the group can meet its financial obligations for the next 12 months based on current and forecasted cash positions[189]. Compliance and Reporting - The Company’s financial reporting period includes a review of accounting policies and practices by the audit committee[72]. - The Company confirms compliance with the standards set forth in the Listing Rules regarding securities transactions by directors throughout the financial period[71]. - The interim financial statements were prepared in accordance with Hong Kong Accounting Standard 34, ensuring compliance with applicable disclosure requirements[179]. - The financial statements for the six months ended September 30, 2022, were prepared in accordance with revised Hong Kong Financial Reporting Standards, with no significant impact on the condensed consolidated financial information[198]. - The company has applied new amendments to HKFRSs, which have had no material impact on the interim financial information[197].
领航医药生物科技(00399) - 2023 - 中期财报