Financial Performance - For the six months ended September 30, 2022, the company reported total revenue of HKD 35,125,000, a decrease of 9.7% compared to HKD 38,992,000 in the same period of 2021[8]. - Gross profit for the same period was HKD 12,982,000, down 21.0% from HKD 16,566,000 year-on-year[8]. - The company recorded a loss before tax of HKD 2,233,000, significantly improved from a loss of HKD 13,256,000 in the previous year[8]. - The net loss for the period was HKD 7,998,000, compared to a net loss of HKD 9,436,000 in the same period last year, indicating a 15.3% reduction in losses[8]. - The total comprehensive loss for the period was HKD 11,034,000, which includes a loss of HKD 13,256,000 attributed to the owners of the company[12]. - The company reported a pre-tax loss of HKD 2,233,000 for the six months ended September 30, 2022, significantly improved from a loss of HKD 13,256,000 in the same period of 2021[35]. - The company reported a net loss of HKD 2,233,000 for the six months ended September 30, 2022, compared to a loss of HKD 13,256,000 for the previous period[12]. - The company reported a net loss of HKD 7,998,000 for the three months ended September 30, 2022, compared to a loss of HKD 9,436,000 in the same period of 2021[35]. Assets and Liabilities - As of September 30, 2022, total assets amounted to HKD 28,438,000, down from HKD 37,803,000 as of March 31, 2022[9]. - The company's cash and bank balances decreased to HKD 8,080,000 from HKD 19,682,000, reflecting a decline of 58.9%[9]. - Non-current assets increased to HKD 9,254,000 from HKD 6,880,000, representing a growth of 34.5%[9]. - The company's equity attributable to owners decreased to HKD 14,224,000 from HKD 16,457,000, a decline of 13.3%[10]. - Inventory levels decreased to HKD 5,207,000 from HKD 6,786,000, indicating a reduction of 23.2%[9]. - Trade receivables increased significantly to HKD 9,654,000 from HKD 4,078,000, marking an increase of 137.5%[9]. - Trade payables as of September 30, 2022, amounted to HKD 1,252,000, with HKD 1,084,000 due within 30 days, and HKD 168,000 due between 31 days to 1 year[46]. - Accrued expenses and other payables decreased to HKD 4,905,000 as of September 30, 2022, from HKD 5,779,000 as of March 31, 2022[50]. - Provisions for current liabilities were HKD 1,198,000 as of September 30, 2022, down from HKD 1,511,000 as of March 31, 2022[52]. - Lease liabilities totaled HKD 4,289,000 as of September 30, 2022, compared to HKD 5,060,000 as of March 31, 2022[54]. Cash Flow and Financing - The company experienced a net cash outflow from operating activities of HKD 9,702,000 for the six months ended September 30, 2022, compared to a net inflow of HKD 870,000 in the same period of 2021[15]. - The cash and cash equivalents decreased to HKD 8,080,000 as of September 30, 2022, down from HKD 19,682,000 at the beginning of the period[15]. - The company’s cash outflow from investing activities was HKD 1,900,000 for the six months ended September 30, 2022, compared to HKD 3,000,000 in the same period of 2021[15]. - The company’s financing activities resulted in a net cash outflow of HKD 1,947,000 in the previous year, indicating a shift in financing strategy[15]. - The company issued 158,643,540 new shares through a rights issue, raising approximately HKD 55.5 million, with costs of about HKD 1.2 million[59]. - The estimated net proceeds from the rights issue are approximately HKD 54,300,000, which will be allocated as follows: HKD 15,400,000 for rent and management fees, HKD 22,000,000 for employee salaries, HKD 5,800,000 for working capital, and HKD 11,100,000 for repaying part of the group's current liabilities[81]. - As of September 30, 2022, approximately HKD 47.6 million of the net proceeds has been utilized, including HKD 22.4 million for employee salaries and HKD 11.3 million for debt repayment[83]. Operational Challenges - The company reported a significant impact on its operations due to the COVID-19 pandemic, affecting both its OEM and original brand production revenues[60]. - The company’s management discussed the ongoing challenges in the supply chain and local economic activities due to the pandemic, affecting sales in both local and overseas markets[60]. - The group anticipates that the performance of its OEM production business will remain under pressure due to ongoing geopolitical tensions and the impact of the COVID-19 pandemic[67]. - The group plans to implement cost-saving measures and restructure production in collaboration with other manufacturers in the Asia-Pacific region[68]. Corporate Governance - The company has maintained a public float of at least 25% of its issued shares, in compliance with GEM listing rules[107]. - The audit committee, consisting of three independent non-executive directors, has reviewed the financial statements and confirmed compliance with applicable accounting standards and GEM listing rules[109]. - The company has adhered to the corporate governance code as per GEM listing rules throughout the reporting period[101]. - The company has established an audit committee to oversee financial reporting and internal controls, ensuring transparency and accountability[109]. - The company has adopted the GEM listing rules as the code of conduct for securities trading by directors, confirming compliance during the reporting period[103]. Employee and Shareholder Information - As of September 30, 2022, the group employed approximately 40 employees in Hong Kong, down from 50 as of March 31, 2022[80]. - The company has provided competitive compensation and benefits to employees, including mandatory provident fund, medical insurance, and statutory holidays[80]. - The total number of shares that may be issued under the share option scheme is capped at 10% of the total issued shares as of August 9, 2021, which amounts to 4,807,380 shares[91]. - No share options were granted, exercised, cancelled, or lapsed during the reporting period[95]. - The share option scheme will remain effective for a period of 10 years from the adoption date, expiring on December 27, 2027[93]. - The company confirmed that there were no other directors or key executives holding any interests or short positions in the company's shares or related securities as of September 30, 2022[99]. - The company did not declare any dividends for the current period, consistent with the previous year[34]. - The board has resolved not to declare any dividends for the current period, consistent with the previous year[66].
民信国际控股(08456) - 2023 - 中期财报