Financial Performance - For the six months ended September 30, 2023, the revenue was HK$8,273,000, a decrease of 17.5% compared to HK$10,023,000 for the same period in 2022[8]. - Gross profit for the six months was HK$651,000, down 58.6% from HK$1,568,000 in the corresponding period of 2022[8]. - The profit before income tax for the period was HK$12,287,000, compared to a loss of HK$7,258,000 in the same period last year[8]. - The profit for the period attributable to owners of the Company was HK$12,799,000, a significant recovery from a loss of HK$6,317,000 in the previous year[9]. - Basic earnings per share for the six months was HK$0.94, compared to a loss per share of HK$0.47 in the same period of 2022[9]. - The total comprehensive income for the period was HK$13,440,000, compared to a total comprehensive loss of HK$6,692,000 in the corresponding period last year[9]. - The Company recorded a gain on the disposal of a subsidiary amounting to HK$19,286,000 during the reporting period[8]. - Other income for the six months was HK$371,000, down from HK$991,000 in the same period last year[8]. Assets and Liabilities - Total non-current assets decreased from HK$1,977,000 to HK$1,412,000, a decline of 28.6%[11]. - Current assets decreased from HK$32,656,000 to HK$18,931,000, a reduction of 42.1%[11]. - Total current liabilities decreased from HK$47,195,000 to HK$15,374,000, a decrease of 67.4%[11]. - Net current assets improved from a deficit of HK$14,539,000 to a surplus of HK$3,557,000[11]. - Total assets as of September 30, 2023, were HK$20,343,000, a decrease from HK$34,633,000 as of March 31, 2023[51]. - Total liabilities as of September 30, 2023, were HK$15,664,000, down from HK$48,006,000 as of March 31, 2023[51]. - Trade payables as of September 30, 2023, were HK$9,159,000, down from HK$13,877,000 as of March 31, 2023, indicating a reduction of approximately 34%[81]. - Other payables and accruals decreased to HK$5,346,000 as of September 30, 2023, from HK$6,883,000 as of March 31, 2023, reflecting a decline of about 22%[81]. Cash Flow - Net cash used in operating activities was HK$6,090,000, slightly improved from HK$7,034,000 in the previous year[16]. - Cash flows from investing activities generated a net cash inflow of HK$5,715,000, compared to HK$7,557,000 in the previous year[16]. - The company recorded a net decrease in cash and cash equivalents of HK$849,000, compared to HK$361,000 in the previous year[16]. - Cash and cash equivalents at the end of the period were HK$2,595,000, down from HK$7,254,000 in the previous year[17]. - The Group's cash at banks and in hand was HK$2,595,000, compared to HK$6,054,000 in the previous year[17]. - The Group's short-term time deposits in banks decreased from HK$1,200,000 to HK$0[17]. - The Group's cash flow was negatively impacted by foreign exchange rate changes, with a decrease of HK$49,000[17]. Business Operations and Strategy - The Group will continue to control administrative costs through human resources optimization and management remuneration adjustments[33]. - The Group signed contracts in April 2023 with two information technology companies to provide multimedia short messaging service, which is expected to be profitable[33]. - The Group has shifted its business focus from the development of information technology systems to their operation, including diversifying into value-added services such as short messaging services[115]. - The Group began cooperation with an information technology company to provide multimedia short messaging services for businesses in Guangdong province, with contracts signed in the second half of 2022 and the first quarter of the financial year ending 31 March 2024[116]. - The company is diversifying into the wearable device market, specifically targeting children's smartwatches, with a launch planned by the end of 2023 in Liaoning and Guangdong provinces[117]. - The company aims to start the smartwatch business by the end of 2023, initially targeting the Liaoning and Guangdong provinces in mainland China[145]. - The company continues to operate its back-end businesses, including internet electronic identity authentication and AI services, to capitalize on China's digital economy[146]. Employee and Management Information - Key management personnel remuneration for the six months ended 30 September 2023 amounted to HK$1,234,000, down from HK$1,433,000 for the same period in 2022[99]. - The total remuneration paid to employees for the reporting period was approximately HK$2,851,000, a decrease from HK$3,327,000 in 2022[173]. - The Company employed 24 employees as of September 30, 2023, a decrease from 27 employees in the previous year[175]. Share Capital and Ownership - The company raised net proceeds of approximately HK$100 million through a subscription by issuing 450,000,000 ordinary shares at a price of HK$0.225 per share[150]. - Happy On Holdings Limited holds approximately 72.83% of the total issued share capital of the company following the subscription[150]. - The total number of issued shares of the Company as of September 30, 2023, is 1,356,250,000[186]. - The Group's issued and fully paid ordinary shares remained at 1,356,250,000 as of both September 30, 2023, and March 31, 2023, with a share capital of HK$135,625,000[85]. Compliance and Governance - The Group's financial statements have been prepared in accordance with HKAS 34 and the GEM Listing Rules[22]. - The company has complied with the GEM Listing Rules regarding securities transactions by directors throughout the reporting period[194]. - The company has adopted the Corporate Governance Code provisions but deviated from provisions C.1.8 and C.2.1[195]. - The roles of chairman and chief executive officer are not separated, which is a deviation from Code Provision C.2.1[197].
量子思维(08050) - 2024 - 中期财报