Revenue Performance - The total revenue for the six months ended September 30, 2022, was approximately HKD 105,468,000, a decrease of about 16% compared to HKD 124,994,000 for the same period last year[10]. - The general trading business revenue increased from approximately HKD 83,756,000 to HKD 105,468,000, primarily due to an increase in chemical sales during the period[10]. - Revenue for the six months ended September 30, 2022, was HKD 105,468,000, a decrease of 15.6% compared to HKD 124,994,000 in the same period of 2021[52]. - Revenue from external customers in China was HKD 105,468,000 for the six months ended September 30, 2022, down 15.7% from HKD 124,994,000 in the same period of 2021[87]. Profitability and Loss - The company recorded a loss attributable to owners of approximately HKD 25,856,000, slightly improved from HKD 26,866,000 in the previous year[12]. - The company reported a loss before tax of HKD 26,488,000, slightly improved from a loss of HKD 27,298,000 in the previous year, representing a reduction of 2.95%[52]. - Total comprehensive loss for the period was HKD 27,626,000, compared to HKD 27,695,000 in the prior year, indicating a decrease of 0.25%[55]. - For the six months ended September 30, 2022, the company reported a loss attributable to owners of approximately HKD 25,856,000[70]. - The company reported a total comprehensive loss of HKD 26,488,000, compared to a loss of HKD 27,298,000 for the six months ended September 30, 2021[79]. Financial Position - The net debt ratio increased to approximately 176% from 125% compared to the end of the previous fiscal year[13]. - The current ratio as of September 30, 2022, was approximately 0.43, down from 1.00 as of March 31, 2022[13]. - Current liabilities exceeded current assets by HKD 147,334,000, leading to a negative net current asset position[57]. - As of September 30, 2022, the company recorded net current liabilities of approximately HKD 147,334,000 and net liabilities of approximately HKD 211,726,000, indicating significant uncertainty regarding the company's ability to continue as a going concern[70]. - The total equity attributable to the owners of the company decreased to HKD (228,180,000) from HKD (200,970,000), indicating a decline of 13.5%[59]. Cost Management - Administrative expenses decreased by approximately 6.8% to HKD 9,690,000 from HKD 10,394,000 in the previous year[12]. - Financial costs decreased by approximately 27% to HKD 12,513,000 from HKD 17,214,000, mainly due to reduced interest expenses on convertible bonds[12]. - The company aims to strengthen budget management and implement strict cost control measures to restore profitability[23]. - The company will continue to enhance cost management and analysis mechanisms to improve financial performance[23]. - The company has committed to improving its working capital and cash flow by closely monitoring administrative expenses and operating costs[72]. Operational Efficiency - The company will improve operational efficiency by standardizing procedures and simplifying processes to eliminate redundancies and bottlenecks[23]. - The company is closely monitoring global economic trends to seize all business opportunities[23]. - The company is actively seeking growth projects for acquisition or investment and is in discussions with multiple parties regarding these opportunities[72]. Shareholder Information - The board has decided not to declare an interim dividend for the six months ending September 30, 2022, compared to no dividend declared for the same period in 2021[24]. - As of September 30, 2022, Mr. Lin Qingqu holds 3,694,314,332 shares, representing 172.70% of the company's equity[27]. - The company has issued convertible bonds with a principal amount of HKD 152,000,000, which could lead to the issuance of 3,166,666,666 shares upon full conversion[34]. - The total number of shares that can be issued upon the exercise of all options granted under the share option scheme shall not exceed 10% of the total issued shares as of the adoption date[35]. - No share options were granted, exercised, canceled, or lapsed during the six months ending September 30, 2022, and there are no unexercised options as of that date[35]. Employee Information - As of September 30, 2022, the group had a total of 11 employees, down from 17 as of March 31, 2022, with employee costs approximately HKD 2,503,000 for the six months ended September 30, 2022, compared to HKD 2,792,000 for the same period in 2021[37]. - The total remuneration for key management personnel for the six months ended September 30, 2022, was HKD 1,389,000, a decrease from HKD 1,956,000 in the previous year[111]. Compliance and Governance - The company has adopted the standard code of conduct for securities transactions by directors as per the listing rules, and all directors confirmed compliance during the six months ended September 30, 2022[42]. - The company complied with all relevant provisions of the corporate governance code, except for deviations regarding the attendance of independent non-executive directors at meetings and the separation of the roles of chairman and CEO[43]. - The audit committee, consisting of three independent non-executive directors, reviewed the group's unaudited interim results and the interim report for the six months ended September 30, 2022[49]. Future Outlook - The company plans to consider improving its financial position through fundraising activities such as rights issues or loan capitalizations if necessary[14]. - The company plans to pursue strategic acquisitions to capture new opportunities in the Chinese market and strengthen its revenue and profit base[71]. - The company has not applied new or revised Hong Kong Financial Reporting Standards that have been issued but are not yet effective, and it is currently assessing their potential impact[73]. Asset and Liability Management - As of September 30, 2022, total assets amounted to HKD 114,849,000, a decrease of 17.1% from HKD 138,493,000 as of March 31, 2022[82][83]. - Total liabilities increased to HKD 326,575,000 as of September 30, 2022, compared to HKD 322,593,000 as of March 31, 2022, reflecting a slight increase of 1.0%[82][83]. - The company has drawn down loans of approximately HKD 2,975,000 and has access to undrawn loan facilities of approximately HKD 207,025,000 from its ultimate holding company, which will not require repayment within twelve months from the approval date of the financial statements[71].
伟俊集团控股-新(01013) - 2023 - 中期财报