Financial Performance - The company's revenue for the first half of 2023 was approximately HKD 35.9 million, a decrease of about 28.7% compared to HKD 50.3 million in the first half of 2022[10]. - Gross profit decreased from approximately HKD 7.4 million in the first half of 2022 to about HKD 5.6 million in the first half of 2023, maintaining a stable gross margin of around 15%[10][19]. - The net loss attributable to the owners of the company was approximately HKD 9.4 million in the first half of 2023, compared to HKD 9.2 million in the same period of 2022[10][13]. - The total comprehensive loss attributable to owners for the first half of 2023 was approximately HKD 9.4 million, compared to about HKD 9.2 million in the first half of 2022[24]. - The company's revenue for the six months ended September 30, 2023, was HKD 35,916,221, a decrease of 28.6% compared to HKD 50,341,607 in the same period of 2022[87]. - Gross profit for the same period was HKD 5,571,756, down 24.3% from HKD 7,358,624 year-on-year[87]. - Operating loss increased slightly to HKD 8,972,427 from HKD 8,750,184 in the previous year, indicating a 2.5% increase in losses[87]. - The total comprehensive loss for the period was HKD 9,433,765, compared to HKD 9,244,651 in the prior year, reflecting a 2.0% increase in losses[87]. - Basic and diluted loss per share improved to HKD (0.96) from HKD (1.03) year-on-year, showing a reduction in loss per share by 6.8%[87]. Cost Management - The total sales cost decreased from approximately HKD 43.0 million in the first half of 2022 to about HKD 30.3 million in the first half of 2023, aligning with the revenue decline[18]. - Other income decreased significantly from approximately HKD 3.7 million in the first half of 2022 to about HKD 89,000 in the first half of 2023, primarily due to the absence of government subsidies in 2023[20]. - Administrative and other expenses decreased by approximately HKD 3.0 million or 14.9%, from about HKD 20.1 million in the first half of 2022 to approximately HKD 17.1 million in the first half of 2023[22]. - The company faces challenges in controlling production costs, particularly due to fluctuations in raw material procurement costs and increasing labor costs in Hong Kong[40]. Asset Management - Property, plant, and equipment decreased from approximately HKD 9.9 million as of March 31, 2023, to about HKD 5.9 million as of September 30, 2023, mainly due to the sale of a six-color printing machine[25]. - Right-of-use assets increased by approximately 244.2%, from about HKD 8.0 million as of March 31, 2023, to approximately HKD 27.5 million as of September 30, 2023, due to the acquisition of two digital inkjet printing machines[26]. - Trade and other receivables, prepayments, and deposits increased from approximately HKD 6.0 million as of March 31, 2023, to about HKD 13.4 million as of September 30, 2023[28]. - Cash and cash equivalents decreased from approximately HKD 5.0 million as of March 31, 2023, to about HKD 2.5 million as of September 30, 2023, primarily due to declining operating performance[29]. - Lease liabilities increased from approximately HKD 11.3 million as of March 31, 2023, to about HKD 27.5 million as of September 30, 2023, mainly due to the acquisition of new printing machines[30]. Business Development - The company acquired two new four-color digital inkjet printing machines (model: Jet Press 750S) to enhance printing efficiency and reduce fixed costs[14]. - In August 2023, the company rented several properties in Kwun Tong and established a joint venture with an independent third party to expand its revenue sources[14]. - The company remains optimistic about its future business prospects and plans to continue investing in technology, talent, and innovation to maintain a competitive edge[15]. Shareholder and Corporate Governance - The company plans to increase its authorized share capital from HKD 20 million to HKD 200 million, pending shareholder approval[64]. - The board proposed a rights issue to raise approximately HKD 34.43 million by issuing 299,400,000 rights shares at a subscription price of HKD 0.115 per share[65]. - New Metro Inc. currently holds 354,659,000 existing shares, equivalent to 35.54% of the company's issued share capital, which may increase to 340,931,800 shares post-rights issue, representing 68.32%[66]. - The estimated net proceeds from the rights issue, after deducting all estimated expenses, will be approximately HKD 32.81 million[65]. - The company has applied for a waiver under the Takeovers Code regarding mandatory offer obligations due to the potential increase in New Metro's shareholding[66]. - The rights issue is contingent upon the completion of a share consolidation, which will affect the number of shares held by existing shareholders[65]. - The company has adopted a stock option plan with a total of 90,000,000 options available for grant as of September 30, 2023[76]. - The company maintains a high level of corporate governance, adhering to all principles of the GEM Listing Rules Appendix 15, except for a deviation regarding the roles of the Chairman and CEO[77]. - The company has established an audit committee composed of three independent non-executive directors to oversee financial reporting and internal controls[85]. - The audit committee has reviewed the unaudited condensed consolidated financial statements and believes they comply with applicable accounting standards and GEM Listing Rules[85]. Employee and Operational Insights - The group employed 55 full-time employees as of September 30, 2023, down from 85 employees a year earlier, with employee costs amounting to approximately HKD 10.5 million[33]. - As of September 30, 2023, the company's net current liabilities amounted to approximately HKD 8.4 million, indicating liquidity risk[44]. - The company has incurred approximately HKD 5.0 million in lease payments for four digital printing machines, with installation completed in June 2020[51]. - The company has successfully upgraded its IT systems, including the completion of its website and mobile application in 2020[51]. - The company has a future plan to utilize the remaining unutilized proceeds based on the proposed purposes outlined in the announcements[57].
环球印馆(08448) - 2024 - 中期财报