Financial Performance - The group's revenue for the six months ended September 30, 2023, was approximately HKD 13.5 million, a decrease of about 6.9% compared to HKD 14.5 million for the same period in 2022[4]. - Gross profit for the reporting period was approximately HKD 10.3 million, down about 7.2% from HKD 11.1 million in the previous year, with a gross margin of approximately 76.4%[8]. - The net loss for the reporting period was approximately HKD 6.3 million, an increase from a net loss of HKD 3.7 million in the same period last year[8]. - Revenue for the six months ended September 30, 2023, was HKD 13,489 thousand, a decrease of 6.7% compared to HKD 14,451 thousand for the same period in 2022[64]. - Gross profit for the six months ended September 30, 2023, was HKD 10,301 thousand, down 7.6% from HKD 11,145 thousand in the previous year[64]. - The company reported a loss before tax of HKD 6,301 thousand for the six months ended September 30, 2023, compared to a loss of HKD 3,661 thousand for the same period in 2022, representing a 72.5% increase in losses[64]. - Basic and diluted loss per share for the six months ended September 30, 2023, was HKD 1.74, compared to HKD 1.01 for the same period in 2022, indicating a 72.3% increase in loss per share[64]. - For the six months ended September 30, 2023, the company reported a loss attributable to equity holders of HKD 6,301,000, compared to a loss of HKD 3,661,000 for the same period in 2022, representing an increase in loss of 72%[148]. Assets and Liabilities - The group's current liabilities net value increased by approximately HKD 2.3 million or 35.4% to about HKD 8.8 million as of the reporting period end[14]. - Total assets as of September 30, 2023, were HKD 98,798 thousand, a slight decrease from HKD 100,309 thousand as of March 31, 2023[66]. - Current liabilities increased to HKD 20,464 thousand as of September 30, 2023, compared to HKD 18,328 thousand as of March 31, 2023, reflecting a 11.6% rise[66]. - The total equity as of September 30, 2023, was HKD 14,482 thousand, a decrease from HKD 20,745 thousand as of March 31, 2023, indicating a decline of 30.5%[66]. - The company’s bank borrowings secured by leasehold land and buildings amounted to HKD 8,000,000 as of September 30, 2023, up from HKD 5,000,000 as of March 31, 2023[133]. - The company has a total lease liability present value of HKD 4,610,000 as of September 30, 2023, down from HKD 5,907,000 as of March 31, 2023[161]. - The company’s total liabilities related to leases due within one year were HKD 145,000 as of September 30, 2023, down from HKD 436,000 as of March 31, 2023, a decrease of 66.73%[178]. Cash Flow and Financing - Cash and cash equivalents decreased by approximately HKD 1.2 million or 52.2% to about HKD 1.1 million as of the reporting period end[14]. - The company’s net cash used in operating activities for the six months ended September 30, 2023, was HKD 1,375 thousand, down from HKD 3,089 thousand in the same period of 2022[73]. - The company raised HKD 8,000 thousand through new bank borrowings during the six months ended September 30, 2023, compared to HKD 5,000 thousand in the previous year[73]. - The group had available undrawn bank financing of HKD 4,931,000, down from HKD 13,244,000 in 2022[83]. - The group generated a net cash inflow from operating activities of approximately HKD 1,400,000 during the interim period[101]. Corporate Governance - The group maintained high standards of corporate governance and complied with the relevant provisions of the corporate governance code during the reporting period[34]. - The group has adopted a code of conduct for securities trading by directors, confirming compliance during the reporting period[35]. - The company is currently non-compliant with GEM Listing Rules regarding the number of independent non-executive directors, having only two instead of the required three[58]. - The audit committee has reviewed the unaudited condensed consolidated results for the reporting period and found them compliant with applicable accounting standards[60]. - The company plans to fill the vacancy left by the resignation of an independent non-executive director within three months[59]. Share Capital and Options - Directors and senior management hold a total of 270,000,000 shares, representing approximately 74.66% of the company[37]. - Profit Ocean Enterprises Limited holds 270,000,000 shares, constituting 74.66% of the issued share capital[42]. - The issued share capital of Profit Ocean is equally owned by Tri-Luck, Wealth City, Tianjing, and Coastal Lion, each holding 25%[44]. - As of September 30, 2023, the number of stock options available for grant under the stock option plan was 3,700,000[48]. - The total number of stock options granted during the reporting period was 28,350,000, with 200,000 exercised[53]. - The exercise price for stock options granted was HKD 0.189, with a total of 10,200,000 options remaining unexercised as of April 1, 2023[53]. Operational Highlights - The group plans to actively explore sales promotion methods and seek potential projects to raise awareness of tea drinking health benefits[12]. - The company’s non-current assets are all located in Hong Kong, and all revenue is generated from this region[112]. - Tea product sales for the six months ended September 30, 2023, were HKD 13,489,000, a decrease of 6.7% compared to HKD 14,451,000 for the same period in 2022[109]. - The company did not receive any government subsidies for the six months ended September 30, 2023, compared to HKD 1,287,000 received in the same period of 2022[114]. - The company has no customers contributing more than 10% of its revenue as of September 30, 2023[113]. Expenses and Costs - Employee costs for the reporting period totaled approximately HKD 5.6 million, consistent with the previous year[19]. - The company reported a total interest expense of HKD 2,174,000 for the six months ended September 30, 2023, compared to HKD 1,620,000 for the same period in 2022, reflecting a 34% increase[1]. - The company incurred total rental expenses of HKD 681,000 for the six months ended September 30, 2023, a decrease of 20% from HKD 852,000 in the same period of 2022[148]. - Total depreciation expenses for the six months ended September 30, 2023, amounted to HKD 5,274,000, slightly down from HKD 5,277,000 in the same period of 2022[148]. - Total remuneration for key management personnel was HKD 1,734,000 for the six months ended September 30, 2023, slightly down from HKD 1,779,000 in the same period of 2022, a decrease of 2.53%[171].
英记茶庄集团(08241) - 2024 - 中期财报