Financial Performance - For the six months ended September 30, 2022, the group recorded revenue from electric vehicle sales of approximately HKD 800,000, a decrease from HKD 29,700,000 in the same period last year[8]. - Gross profit for the same period was approximately HKD 400,000, with a gross margin of 49.9%, significantly up from 13.7% in the previous year[8]. - The group reported a loss of approximately HKD 41,000,000, an improvement from a loss of HKD 53,900,000 in the prior year[8]. - Basic and diluted loss per share for the period was HKD 0.0042, compared to HKD 0.0058 in the same period last year[9]. - For the six months ended September 30, 2022, the company reported revenue of HKD 781,000, a significant decrease from HKD 29,717,000 in the previous year, representing a decline of approximately 97.37%[94]. - The gross profit for the same period was HKD 390,000, down from HKD 4,078,000, indicating a decline of about 90.43%[94]. - The company recorded a loss before tax of HKD 41,068,000, an improvement compared to a loss of HKD 55,044,000 in the previous year, showing a reduction of about 25.41%[94]. - The net loss for the period was HKD 41,003,000, compared to a net loss of HKD 53,924,000 in the prior year, indicating a decrease of approximately 24.00%[94]. - Total comprehensive loss for the six months ended September 30, 2022, was HKD (225,146) thousand, compared to a loss of HKD (21,944) thousand in the same period of 2021[96]. - The company's loss attributable to owners was HKD (38,270) thousand, an improvement from a loss of HKD (49,608) thousand year-over-year[96]. Operational Developments - The group has launched a fully electric 19-seat low-floor minibus (APEX-MINI), which has received positive recognition from operators across various business segments[17]. - APEX-MINI is designed for the Hong Kong minibus market, which has a total market size exceeding 4,000 vehicles[17]. - The group has been selected as a pre-approved supplier by the Hong Kong government to provide 40 electric public minibuses for a sustainable public transport trial plan in 2023[17]. - The company has developed the "COMET" electric transport vehicle, designed for emerging markets, with plans to deliver at least 500 units to the Philippines within the next 24 months[18]. - The company successfully completed a sale of COMET to India, contributing to the performance during the reporting period[18]. - A new logistics vehicle, the "box chassis," has been developed, with an initial order of 200 units to be delivered to a major baking company in Mexico in Q1 2023[21]. - The company is confident in the growing demand for electric vehicle custom solutions in Latin America, Asia, and Europe[21]. - The company is utilizing its existing production facility in Wulong District, Chongqing, which has sufficient capacity to meet increasing overseas order volumes[25]. - The company is exploring investment opportunities to expand its electric vehicle production capacity when necessary[30]. Cost Management - Administrative expenses were reduced to approximately HKD 32,100,000, down from HKD 54,700,000 in the previous year, primarily due to decreased legal and professional fees and employee costs[8]. - Employee expenses decreased by 14.0% to HKD 11,100,000 for the period, compared to HKD 12,900,000 for the same period last year[58]. - The company reported a 5.0% decrease in other payables and accrued liabilities to HKD 148,800,000, primarily due to an 11.9% depreciation of the RMB against the HKD[48]. - The company did not incur any expenses related to the acquisition of property, plant, and equipment during the current period, compared to HKD (1,623) thousand in the previous year[111]. - The company did not purchase, redeem, or sell any of its listed securities during the six months ended September 30, 2022[86]. Legal and Regulatory Matters - The company has resolved a lawsuit regarding construction costs amounting to approximately RMB 45,477,000, with a settlement reached[29]. - Guangxi Weirich is facing a legal arbitration case with a contractor, with a potential liability of RMB 2,100,000, which has been provisioned in the financial statements[34]. - The company is actively seeking legal advice regarding a lawsuit that could impact its interests, with a court hearing held on October 21, 2021[39]. - The company continues to communicate with local authorities to resolve land issues, as the frozen land has remained idle since 2014[38]. - The company is monitoring the status of the frozen land use rights, which may face the risk of confiscation by local authorities[38]. Shareholder and Capital Structure - The board considers issuing shares as an attractive opportunity to raise funds and expand the shareholder and capital base, with plans to seek external financial resources for operational needs[46]. - The company has entered into subscription agreements for a total of up to HKD 600,000,000 in convertible bonds but terminated these agreements on October 20, 2022[46]. - The company has entered into a new subscription agreement for a total value of up to HKD 200,000,000, structured in 40 equal tranches of HKD 5,000,000 each[59]. - The company will hold a special general meeting on December 8, 2022, for shareholders to consider and approve the proposed convertible bonds[59]. - Major shareholders include Mr. Zhang Ren, holding 762,324,959 shares, which is approximately 8.46% of the company's issued share capital[82]. - Faith Profit Holding Limited, wholly owned by Mr. Zhang Ren, holds 222,586,400 shares, representing about 2.47% of the issued share capital[82]. - Entrust Limited, controlled by several individuals including Mr. Chen Tuo Yu, holds 982,727,510 shares, accounting for approximately 10.91% of the issued share capital[82]. Asset and Liability Management - As of September 30, 2022, the company's net asset value was approximately HKD 1,585,500,000, a decrease from HKD 1,810,700,000 as of March 31, 2022[47]. - The company's capital debt ratio increased to 1.33% as of September 30, 2022, compared to 1.20% as of March 31, 2022[47]. - The company's cash and bank deposits decreased to approximately HKD 1,900,000 as of September 30, 2022, down from HKD 4,700,000 as of March 31, 2022[51]. - Non-current assets decreased to HKD 1,629,679 thousand from HKD 1,830,812 thousand as of March 31, 2022, reflecting a decline of approximately 11%[99]. - Current assets totaled HKD 145,234 thousand, down from HKD 180,903 thousand, indicating a decrease of about 20%[99]. - Total assets decreased to HKD 1,774,913 thousand from HKD 2,011,715 thousand, representing a decline of approximately 12%[99]. - Current liabilities amounted to HKD 109,504 thousand, slightly down from HKD 113,312 thousand[101]. - The net asset value decreased to HKD 35,730 thousand from HKD 67,591 thousand, a decline of approximately 47%[101]. - Total equity attributable to owners decreased to HKD 1,626,112 thousand from HKD 1,853,836 thousand, reflecting a decrease of about 12%[101]. Market Outlook - The group continues to expand its international sales network, indicating a positive trend in sales revenue[8]. - The company is optimistic about the recovery of the tourism industry post-pandemic, which is expected to drive demand for electric buses[15]. - The company believes that the use of zero-emission electric vehicles is increasingly popular globally, which will drive growth in its electric bus and vehicle business[55]. - The company is optimistic about expanding its business into overseas markets, including the Americas, Europe, and Asia[55].
科轩动力控股(00476) - 2023 - 中期财报