Financial Performance - Revenue for the six months ended October 31, 2022, was HKD 54,742 thousand, a decrease of 51.0% compared to HKD 111,497 thousand for the same period in 2021[17] - Gross profit for the same period was HKD 10,237 thousand, down 65.1% from HKD 29,302 thousand in the previous year[17] - The company reported a net loss of HKD 2,656 thousand for the six months ended October 31, 2022, compared to a profit of HKD 4,487 thousand in the same period of 2021[17] - Total comprehensive loss for the period was HKD 9,705 thousand, compared to a comprehensive income of HKD 5,561 thousand in the previous year[17] - The total comprehensive income for the period was HKD 3,452,000, a decrease from HKD 13,611,000 in the previous year[23] - The company reported a loss before tax of HKD 6,811 thousand for the six months ended October 31, 2022, compared to a profit of HKD 44,505 thousand in the same period of 2021[54] - For the six months ended October 31, 2022, the loss attributable to equity holders was HKD 3,452,000, down from a profit of HKD 13,611,000 in the previous year[65] - Profit for the six months ended October 31, 2022, was approximately HKD 3.5 million, a decrease of about HKD 10.1 million or 74.3% compared to HKD 13.6 million for the same period in 2021[104] Assets and Liabilities - Non-current assets decreased to HKD 26,195 thousand as of October 31, 2022, from HKD 31,842 thousand as of April 30, 2022, representing a decline of 17.8%[20] - Current assets included inventories of HKD 72,302 thousand, slightly down from HKD 73,622 thousand as of April 30, 2022[20] - Trade receivables decreased to HKD 33,353 thousand from HKD 42,106 thousand, a reduction of 20.8%[20] - The company's cash and bank balances were HKD 30,851 thousand, down from HKD 46,595 thousand, indicating a decrease of 33.9%[20] - Total liabilities decreased to HKD 40,100 thousand from HKD 45,388 thousand, a reduction of 11.9%[20] - The company's equity as of October 31, 2022, was HKD 165,273 thousand, down from HKD 170,214 thousand as of April 30, 2022[20] - Trade receivables as of October 31, 2022, amounted to HKD 33,353,000, a decrease from HKD 49,254,000 as of April 30, 2022[69] - Trade payables as of October 31, 2022, were HKD 10,505,000, down from HKD 12,456,000 as of April 30, 2022[75] - Accrued expenses were HKD 3,975,000 as of October 31, 2022, compared to HKD 5,215,000 as of April 30, 2022[77] Cash Flow - For the six months ended October 31, 2022, the company reported a net cash outflow from operating activities of HKD 17,363,000, compared to HKD 10,470,000 for the same period in 2021[28] - As of October 31, 2022, the company's cash and cash equivalents decreased to HKD 40,347,000 from HKD 50,225,000 in the prior year[28] - The company reported a net cash inflow from investing activities of HKD 253,000, contrasting with a cash outflow of HKD 1,122,000 in the previous year[28] - The financing activities resulted in a cash outflow of HKD 2,405,000, compared to an inflow of HKD 1,394,000 in the same period last year[28] Revenue Breakdown - Revenue from LED decorative lights for the six months ended October 31, 2022, was HKD 54,742 thousand, down 45.9% from HKD 101,093 thousand in the same period of 2021[50] - Revenue from the United States for the six months ended October 31, 2022, was HKD 14,863 thousand, an increase of 83.5% compared to HKD 8,077 thousand in the same period of 2021[44] - Revenue from major customers accounted for 31.1% of trade receivables as of October 31, 2022, up from 22.7% in the same period of 2021[48] Expenses - Research and development expenses for the six months ended October 31, 2022, were HKD 22 thousand, down from HKD 34 thousand in the same period of 2021[54] - Selling and distribution expenses decreased by approximately HKD 0.6 million or 37.5% to about HKD 1.0 million, primarily due to reduced shipping costs[97] - Administrative expenses decreased by approximately HKD 1.4 million or 16.9% to about HKD 6.9 million, mainly due to reduced legal and professional fees[98] Corporate Governance and Management - The company did not declare or propose any dividends during the reporting period[61] - The company has maintained compliance with the corporate governance code as per GEM listing rules during the reporting period[137] - The audit committee reviewed the unaudited condensed consolidated financial statements for the six months ending October 31, 2022[142] - The company has not granted any options under the share option scheme since its adoption[140] - There were no known business or interest conflicts involving directors or major shareholders during the reporting period[133] Future Plans and Developments - The company plans to expand its business activities into new electronic product production lines and sales, including home-based AI robots related to traditional Chinese medicine[89] - The group plans to use the remaining unutilized proceeds by the end of 2022, focusing on upgrading production facilities and enhancing product quality[120] Shareholding Structure - As of October 31, 2022, Mr. Shao Guoliang holds 234,000,000 shares, representing approximately 46.8% of the company's equity[124] - Mr. Shao Chiliang is the beneficial owner of 7,280,000 shares, accounting for 1.46% of the company's equity[124] - Real Charm Corp, fully owned by Mr. Shao Guoliang, also holds 234,000,000 shares, equivalent to 46.8% of the company's equity[129] - Ms. Zhong Ruchun, as a spouse, is considered to have an interest in 234,000,000 shares, which is 46.8% of the company's equity[129] - No other directors or key executives held any shares or interests in the company or its affiliates as of October 31, 2022[125] Operational Challenges - The business environment has been affected by trade conflicts, social unrest in Hong Kong, and the COVID-19 outbreak since 2020, impacting the timeline for utilizing the IPO proceeds[121] - The company experienced a foreign exchange loss of HKD 8,393,000 during the period, impacting the overall financial results[23] - The group incurred a foreign exchange loss of approximately HKD 0.7 million for the six months ending October 31, 2022, compared to a foreign exchange gain of approximately HKD 0.1 million for the same period in 2021[111]
濠亮环球(08118) - 2023 - 中期财报