Financial Performance - The Group recorded an unaudited revenue of approximately HK$32.7 million for the six months ended 30 November 2022, representing an increase of approximately 164.8% compared to the same period in 2021[17]. - The Group's unaudited profit was approximately HK$5.8 million for the six months ended 30 November 2022, compared to a loss of approximately HK$9.1 million for the same period in 2021, primarily due to a gain on bargain purchases amounting to approximately HK$12.0 million[17]. - Earnings per share for the period was HK$0.48, a significant improvement from a loss of HK$1.13 per share in the corresponding period of 2021, reflecting a change of 142.5%[16]. - The gross profit for the six months ended 30 November 2022 was approximately HK$7.5 million, compared to a gross loss of HK$4.6 million in the same period of 2021, indicating a turnaround in profitability[16]. - The Group's financial performance was significantly bolstered by strategic acquisitions and operational improvements during the reporting period[17]. - The unaudited results indicate a strong recovery trajectory for the Group, positioning it favorably for future growth opportunities[17]. - The financial highlights reflect the Group's resilience and adaptability in a challenging market environment[17]. Revenue Breakdown - Revenue for the three months ended November 30, 2022, was HK$21,498,000, a significant increase of 179.5% compared to HK$7,700,000 for the same period in 2021[20]. - Revenue from visual display solution services increased to HK$8,531,000 for the three months ended November 30, 2022, compared to HK$7,159,000 in 2021, reflecting a growth of 19.2%[57]. - Revenue from information technology consulting services was HK$12,827,000 for the three months ended November 30, 2022, with no revenue reported in the same period of 2021[57]. - For the six months ended November 30, 2022, total revenue reached HK$32,650,000, up from HK$12,330,000 in 2021, marking a growth of 164%[57]. - Revenue from Hong Kong for the six months ended November 30, 2022, was HK$13,080,000, compared to HK$7,301,000 in 2021, an increase of 79.5%[63]. - Revenue from the PRC for the six months ended November 30, 2022, surged to HK$17,071,000 from HK$1,753,000 in 2021, representing a growth of 871%[63]. - Revenue from information technology consulting services amounted to approximately HK$16.5 million, representing 50.6% of total revenue, primarily driven by a project from a customer in China[111]. - Revenue from visual display solutions was approximately HK$15.8 million, accounting for 48.3% of total revenue, with a significant increase in pop concert shows from 49 to 117[115]. Assets and Equity - Total assets as of November 30, 2022, amounted to HK$316,076,000, a substantial increase from HK$87,456,000 as of May 31, 2022[24]. - Total equity increased to HK$213,392,000 as of November 30, 2022, compared to HK$45,940,000 as of May 31, 2022[24]. - The Group's net current assets were approximately HK$113.8 million as of 30 November 2022, compared to net current liabilities of approximately HK$26.4 million as of 31 May 2022[140][145]. Cash Flow and Liquidity - Cash and bank balances increased to HK$16,081,000 as of November 30, 2022, compared to HK$830,000 as of May 31, 2022[24]. - The company reported a net cash generated from operating activities of HK$ (24,504,000) for the six months ended 30 November 2022, compared to HK$ 822,000 in the same period of 2021[31]. - The company experienced a net increase in cash and cash equivalents of HK$ 15,251,000, rising from HK$ 683,000 at the end of the previous period to HK$ 16,081,000[31]. - The Group's current ratio improved to approximately 2.12, up from 0.32 as of 31 May 2022, indicating better liquidity[141][145]. - The maximum limit of banking facilities available to the Group was HK$13 million as of 30 November 2022, with bank borrowings and overdrafts amounting to approximately HK$10.6 million[142][146]. Acquisitions and Investments - The Group completed the acquisition of 22.9% of Shenzhen Xinhang for RMB34,000,000 on 18 August 2022, consolidating its financial results from that date[90]. - Shenzhen Xinhang contributed approximately HK$1,982,000 to the Group's profit for the period from acquisition to 30 November 2022[95]. - If the acquisition of Shenzhen Xinhang had been completed on 1 June 2022, total Group revenue would have been HK$48,370,000, and profit would have been HK$7,048,000 for the period[94]. Operational Highlights - The Group engaged in 117 pop concert shows during the six months ended 30 November 2022, compared to 49 shows in the same period in 2021, indicating a significant increase in activity[105]. - Approximately 30.9% of total revenue for the six months ended 30 November 2022 was derived from pop concerts, up from 21.2% in the previous year[106]. - The average revenue per pop concert show increased from approximately HK$53,000 to approximately HK$86,000 during the same period[120]. Taxation - The Group provided approximately HK$0.7 million in income tax expense for the six months ended 30 November 2022, compared to nil in the same period of 2021[137]. - The Group's PRC subsidiaries were subject to a 25.0% enterprise income tax rate during the reporting periods[130]. - The Group's first HK$2 million of assessable profits under Hong Kong profits tax for the six months ended 30 November 2022 was subject to a tax rate of 8.25%[131]. Staff and Management - As of 30 November 2022, the Group employed a total of 81 employees, an increase from 57 employees as of 30 November 2021[169]. - Total staff costs for the six months ended 30 November 2022 amounted to approximately HK$8.2 million, compared to approximately HK$5.0 million for the same period in 2021[169]. - Directors' remuneration increased to HK$1,521,000 for the six months ended 30 November 2022, compared to HK$915,000 for the same period in 2021[67]. Corporate Governance - The Directors confirm that the information contained in the report is accurate and complete in all material respects, ensuring transparency for stakeholders[5]. - The Audit Committee has reviewed the unaudited condensed consolidated results for the six months ended 30 November 2022[177]. - The company confirms that all directors complied with the required standards of dealings during the six months ended November 30, 2022[185]. - The company has adopted a code of conduct regarding directors' securities transactions that meets GEM Listing Rules standards[187].
耀星科技集团(08446) - 2023 - 中期财报