Financial Performance - Revenue for the three months and six months ended 30 September 2022 was approximately HK$65,536,000 and HK$106,372,000, respectively, compared to HK$99,215,000 and HK$224,661,000 for the corresponding periods last year, representing a decline of 33.9% and 52.7%[6]. - Loss attributable to owners of the Company was approximately HK$8,863,000 and HK$13,527,000 for the three months and six months ended 30 September 2022, compared to HK$4,110,000 and HK$8,542,000 for the corresponding periods last year, indicating an increase in loss of 115.5% and 58.5%[6]. - The Company does not recommend the payment of an interim dividend for the six months ended 30 September 2022, consistent with the previous year where no dividend was paid[6]. - For the six months ended September 30, 2022, the Group recorded total revenue of approximately HK$106,372,000, representing a decrease of approximately 52.65% compared to HK$224,661,000 for the same period last year[80][83]. - The gross profit for the six months ended September 30, 2022, was approximately HK$8,109,000, down from HK$46,321,000 in the previous year[89]. - The basic and diluted loss per share for the six months ended September 30, 2022, was HK(4.10) cents, compared to HK(2.60) cents for the same period last year[89]. - Other comprehensive loss for the period was approximately HK$16,017,000, compared to a gain of HK$1,981,000 in the previous year[93]. - Total comprehensive loss for the period was approximately HK$26,668,000, compared to HK$2,847,000 for the same period last year[93]. - The decrease in revenue was mainly attributed to the decline in the intelligent advertising business due to the downturn in China's real estate sector[80][83]. - The company reported a total comprehensive loss for the period of HK$16,237,000 for the six months ended September 30, 2022, compared to a loss of HK$26,668,000 for the same period in 2021[100]. Market Conditions - The Chinese advertising market is projected to grow by 8% this year, reaching a total size of CNY810 billion, following a 16% growth in 2021[9]. - International tourism arrivals in the first five months of 2022 reached almost 250 million, recovering 46% of pre-pandemic levels[13]. - Strict lockdowns have led to significant shortages in fertilizer, labor, and seeds, impacting foodservice sales and supply chain operations[15]. - China's property market crisis has worsened, with new home prices falling for the third consecutive month in September, and 56 out of 100 cities reporting a decline in monthly prices[20]. - The Chinese real estate market is struggling, with new home prices declining for three consecutive months as of September 2022, impacting consumer confidence[22]. - The economic outlook is heavily influenced by monetary and fiscal policies, the war in Ukraine, and growth prospects in China, with China's growth slowing to just 3.2% in 2022[58]. Operational Challenges - The Company is facing challenges in the supply-chain business due to COVID-19, geopolitical risks, and a loss of manufacturing market share to neighboring Asian countries[18][19]. - No revenue was generated from the supply-chain business for the three months and six months ended September 30, 2022, due to unfavorable market conditions[38]. - The Group had net current liabilities of approximately HK$14,858,000 as of September 30, 2022, compared to HK$5,679,000 as of March 31, 2022[65]. - The Group's gearing ratio was approximately 202% as of September 30, 2022, up from 128% as of March 31, 2022, primarily due to the decrease in cash and bank deposits as well as equity[73]. - The Group adopted a conservative treasury policy to maintain necessary cash for anticipated expenditures and emergencies[66]. - The Group did not experience any material difficulties in operations or liquidity due to currency exchange rate fluctuations during the review period[67]. - The Group is closely monitoring foreign currency rates and will consider hedging significant foreign currency exposure if necessary[67]. Strategic Initiatives - The Group is focused on diversifying applications of its proprietary Big Data and AI technological platforms to find new growth opportunities[27]. - The Group aims to seek investment opportunities in resilient sectors to develop new business lines amidst current macroeconomic challenges[47][52]. - The Group's strategy includes strengthening existing business lines while investing in new sectors with high growth potential, maintaining a conservative approach towards profitability[54]. - The Group has observed significant opportunities in the business travel service market, particularly as recovery and demand are strongest in this sector[31]. - The Group's strategy focuses on consolidating existing business lines while investing in new industries with high growth potential[57]. Employee and Asset Management - The Group had approximately 80 employees as of September 30, 2022, down from 85 employees as of March 31, 2022[75]. - The Company continues to review employee compensation and provides benefits such as medical insurance and provident fund[80]. - As of September 30, 2022, the company's total assets amounted to HK$181,630,000, a decrease from HK$226,992,000 as of March 31, 2022, representing a decline of approximately 19.9%[95]. - The company's net assets decreased to HK$54,796,000 as of September 30, 2022, down from HK$76,048,000 as of March 31, 2022, reflecting a decline of approximately 28.0%[97]. - The total equity attributable to owners of the company decreased to HK$32,749,000 as of September 30, 2022, from HK$43,570,000 as of March 31, 2022, indicating a decline of approximately 25.0%[97]. - The company’s lease liabilities as of September 30, 2022, were HK$500,000, a decrease from HK$1,267,000 as of March 31, 2022, indicating a reduction of about 60.5%[97]. Segment Performance - The Group's operations are divided into four reportable segments: Intelligent advertising and railroad media, Agricultural, forestry and consumer products, Supply-chain business, and Property business[125]. - Revenue from intelligent advertising and railroad media services for the three months ended September 30, 2022, was approximately HK$49,127,000, and for the six months, it was HK$89,538,000[32]. - Revenue from agricultural, forestry, and consumer products for the three months and six months ended September 30, 2022, was approximately HK$16,132,000 and HK$16,239,000 respectively[37]. - The Group's bank and other interest income for the six months ended September 30, 2022, was HK$11,000, down from HK$76,000 in the same period of 2021, reflecting a decline of approximately 85.7%[121]. - The Group recognized a government subsidy of HK$92,000 during the six months ended September 30, 2022, compared to a loss of HK$8,100,000 in the same period of 2021[121].
世大控股(08003) - 2023 - 中期财报