Revenue Performance - For the six months ended September 30, 2022, the group recorded revenue of approximately HKD 136.7 million, an increase of approximately HKD 22.9 million (20.1%) compared to HKD 113.8 million for the same period in 2021[16]. - Revenue for the six months ended September 30, 2022, was HKD 136,748,000, an increase of 20.1% compared to HKD 113,821,000 in 2021[70]. - The apparel business generated revenue of HKD 76,179,000, while the watch business contributed HKD 51,360,000, indicating a significant reliance on these segments for overall revenue[105]. - Revenue from the garment business decreased from approximately HKD 98.4 million to approximately HKD 76.2 million, a decline of approximately HKD 22.2 million (22.6%) due to weakened consumer sentiment[16]. - Revenue from the marketing services segment was approximately HKD 7.3 million, a decrease of 45.5% from HKD 13.4 million in the previous period[17]. Profitability and Loss - The group recorded a net loss attributable to the owners of the company due to the severe impact of the ongoing COVID-19 pandemic on global economic activities[27]. - The company reported a net loss of HKD 11,481,000 for the period, compared to a profit of HKD 9,315,000 in the same period last year, representing a significant decline[72]. - The group reported an operating loss of HKD 4,969,000 for the six months ended September 30, 2022, compared to a profit of HKD 9,315,000 in the same period of the previous year, reflecting a substantial decline in profitability[105]. - Total comprehensive loss for the period was HKD 8,786,000, down from a comprehensive income of HKD 9,556,000 in 2021[72]. Expenses and Financial Performance - The group recorded a gross profit of approximately HKD 8.9 million from the garment business, down approximately HKD 3.8 million (29.9%) from HKD 12.7 million in the previous period[19]. - Administrative expenses increased by approximately 44.1% to approximately HKD 8.5 million, primarily due to the acquisition of the new subsidiary[21]. - Sales and distribution expenses rose by approximately 189.5% to approximately HKD 5.5 million, mainly due to the new watch business acquisition[20]. - The group’s financial expenses for the period amounted to HKD 9,768,000, impacting overall financial performance negatively[105]. Cash Flow and Liquidity - As of September 30, 2022, the group's cash and bank balances totaled approximately HKD 44,900,000, down from HKD 66,100,000 as of March 31, 2022[29]. - The net cash flow used in operating activities was HKD (42,196,000), compared to HKD (23,437,000) for the same period in 2021, indicating a significant increase in cash outflow[82]. - The net cash flow used in investing activities was HKD (8,201,000) for the six months ended September 30, 2022, compared to a cash inflow of HKD 1,000,000 in the same period of 2021, reflecting increased investment expenditures[82]. - The cash and cash equivalents at the end of the period were HKD 44,930,000, an increase from HKD 24,869,000 at the end of the same period in 2021, showing improved liquidity[82]. - The company received bank loan proceeds of HKD 29,773,000 during the reporting period, which was not present in the previous year[82]. Acquisition and Investments - The group completed the acquisition of Sinoforce Group Limited for a total consideration of HKD 50 million, with revenue from the watch business amounting to approximately HKD 51.4 million during the reporting period[15][17]. - The acquisition of Sinoforce Group Limited was completed on June 14, 2022, for a total consideration of HKD 50,000,000, expanding the group's presence in the watch and accessory wholesale market[100]. - The identifiable net assets of Sinoforce at the acquisition date were valued at HKD 49,304,000, resulting in a goodwill of HKD 696,000[148]. Assets and Liabilities - The total assets of the group as of September 30, 2022, amounted to HKD 514,447,000, with total liabilities of HKD 222,967,000, resulting in a net asset position[111]. - The group's bank borrowings amounted to approximately HKD 29,800,000 as of September 30, 2022, compared to HKD 5,000,000 as of March 31, 2022[31]. - The current ratio decreased to approximately 1.7 as of September 30, 2022, from 2.5 as of March 31, 2022, primarily due to the increase in bank borrowings[32]. - The group's asset-liability ratio increased to approximately 10.2% as of September 30, 2022, from 1.7% as of March 31, 2022, due to the rise in bank borrowings[32]. Shareholder Information and Corporate Governance - The company did not declare any interim dividend for the six months ended September 30, 2022, consistent with the previous year[33]. - The company has complied with the corporate governance code as per the listing rules during the six months ending September 30, 2022[61]. - The audit committee, consisting of three independent non-executive directors, is responsible for reviewing and supervising the financial reporting process and risk management[65]. - The interim financial results for the group have been reviewed and approved by the audit committee, ensuring compliance with applicable accounting standards and regulations[66]. Trade Receivables and Payables - Trade receivables and trade payables were approximately HKD 191,500,000 and HKD 155,300,000, respectively, as of September 30, 2022, compared to HKD 134,600,000 and HKD 76,400,000 as of March 31, 2022[38]. - Trade receivables as of September 30, 2022, amounted to HKD 191,498,000, an increase from HKD 134,553,000 as of March 31, 2022, representing a growth of approximately 42.3%[140]. - Trade payables as of September 30, 2022, totaled HKD 155,295,000, compared to HKD 76,354,000 as of March 31, 2022, reflecting an increase of 103.5%[162].
龙翼航空科技(00918) - 2023 - 中期财报