Financial Performance - For the six months ended September 30, 2022, the company reported revenue of HKD 110,712,000, a decrease of 6.4% from HKD 117,995,000 in the same period last year[13]. - Gross profit for the same period was HKD 60,716,000, representing an increase of 40.5% compared to HKD 43,262,000 in the previous year[13]. - The company recorded a loss before tax of HKD 232,532,000, compared to a loss of HKD 29,873,000 in the prior year, indicating a significant decline in performance[13]. - The net loss for the period was HKD 241,725,000, a substantial increase from the net loss of HKD 29,900,000 reported in the previous year[13]. - The total comprehensive loss for the period amounted to HKD 281,355,000, compared to HKD 24,406,000 in the same period last year[13]. - Basic and diluted loss per share was HKD 31.53, a significant increase from HKD 3.87 in the prior year[13]. - The company experienced a foreign exchange loss of HKD 44,352,000, compared to a gain of HKD 3,986,000 in the previous year, impacting overall financial results[13]. - The company reported other comprehensive losses totaling HKD 39,630,000 for the period, compared to a gain of HKD 5,494,000 in the previous year[13]. - The company’s administrative and other operating expenses were HKD 18,984,000, up from HKD 17,199,000 in the previous year, reflecting increased operational costs[13]. Assets and Liabilities - As of September 30, 2022, non-current assets totaled HKD 321,512,000, a decrease from HKD 341,348,000 as of March 31, 2022, representing a decline of approximately 5.4%[15]. - Current assets amounted to HKD 222,272,000, down from HKD 274,922,000, indicating a decrease of about 19.2%[15]. - The company's total liabilities increased to HKD 522,182,000 from HKD 306,990,000, reflecting a rise of approximately 70.5%[15]. - Cash and cash equivalents decreased to HKD 203,124,000 from HKD 260,753,000, a reduction of about 22%[15]. - Inventory levels rose sharply to HKD 7,032,000 from HKD 2,930,000, marking an increase of approximately 139%[15]. - The company reported a net current liability of HKD 299,910,000, compared to HKD 32,068,000 in the previous period, indicating a significant deterioration in liquidity[15]. - Total liabilities exceeded total assets by approximately HKD 57,166,000 as of September 30, 2022[35]. - The group’s current liabilities exceeded current assets by approximately HKD 299,910,000[35]. Convertible Bonds - Convertible bonds, classified at fair value, amounted to approximately HKD 446,076,000, raising significant uncertainty regarding the group's ability to continue as a going concern[35]. - The maturity and conversion period of the convertible bonds were extended by 36 months to March 13, 2026, pending approval from independent shareholders[36]. - The fair value of the fourth convertible bond as of September 30, 2022, is approximately HKD 446,076,000, an increase from HKD 182,537,000 as of March 31, 2022[101]. - The fair value change recognized in profit or loss for the fourth convertible bond during the reporting period is HKD 263,539,000, compared to HKD 11,254,000 for the previous period[101]. - The company has extended the maturity of the fourth convertible bond by an additional 36 months, now due on March 13, 2026[102]. Revenue Breakdown - Total revenue for the six months ended September 30, 2022, was HKD 110,712,000, with contributions from coal business (HKD 94,376,000), renewable energy (HKD 1,804,000), and IT services (HKD 14,532,000)[43]. - Revenue from coal sales was HKD 94,376, down 10.2% from HKD 105,030 in the previous year[55]. - Revenue from renewable energy solutions was HKD 1,804, slightly down from HKD 1,893 in the prior year[55]. - Revenue from IT services totaled HKD 14,532, an increase of 31.5% compared to HKD 11,072 in the previous year[55]. Operational Insights - The company is focusing on improving its financial performance and exploring new strategies for market expansion and product development in the future[13]. - The company continues to focus on developing its existing businesses while aiming to diversify into multiple business sectors in the long term[119]. - The company has committed capital expenditures of approximately HKD 10,885,000 as of September 30, 2022, compared to HKD 8,274,000 as of March 31, 2022[117]. - The company has made prepayments for property, plant, and equipment amounting to HKD 14,575,000, up from HKD 5,306,000, reflecting an increase of approximately 175%[15]. Taxation - The total income tax expense for the six months ended September 30, 2022, was HKD 9,193,000, a decrease of 66% compared to HKD 27,000,000 for the same period in 2021[62]. - The effective tax rate for the company's subsidiaries in mainland China was 25% for the periods ended September 30, 2022, and 2021[60]. - The company reported no tax losses or taxable profits from Hong Kong, Malaysia, Singapore, and the UK during the six months ended September 30, 2022[62]. Employee and Governance - The total employee cost (excluding directors' remuneration) during the reporting period was approximately HKD 17,023,000, a decrease from HKD 38,954,000 in the previous period[175]. - The company has 145 employees as of September 30, 2022, an increase from 140 employees as of March 31, 2022[175]. - The company has complied with the Corporate Governance Code during the reporting period, except for the deviation regarding the separation of the roles of Chairman and CEO[188]. - The audit committee consists of three independent non-executive directors, who reviewed the accounting principles and interim financial information during the reporting period[192].
南南资源(01229) - 2023 - 中期财报