Financial Performance - For the six months ended September 30, 2023, the company reported revenue of HKD 13,019,000, a decrease of 8.7% compared to HKD 14,257,000 for the same period in 2022[4] - The cost of services for the six months ended September 30, 2023, was HKD 11,379,000, which is an increase of 77.5% from HKD 6,390,000 in the previous year[4] - The company recorded a gross profit of HKD 1,640,000 for the six months ended September 30, 2023, down 79.2% from HKD 7,867,000 in 2022[4] - Administrative expenses increased significantly to HKD 13,857,000 for the six months ended September 30, 2023, compared to HKD 7,806,000 in the same period last year, representing a 77.5% increase[4] - The company reported a loss before tax of HKD 10,484,000 for the six months ended September 30, 2023, compared to a loss of HKD 108,000 in the previous year[4] - The net loss attributable to owners of the company for the six months ended September 30, 2023, was HKD 10,755,000, compared to a profit of HKD 680,000 in the same period of 2022[5] - For the three months ended September 30, 2023, the company reported a loss attributable to owners of the company of HKD 12,024,000, compared to a profit of HKD 680,000 for the same period in 2022[30] - Net loss increased from approximately HKD 100,000 for the six months ended September 30, 2022, to about HKD 10,500,000 for the same period in 2023[60] Assets and Liabilities - As of September 30, 2023, total assets amounted to HKD 97,836,000, an increase from HKD 76,038,000 as of March 31, 2023[7] - The company's net asset value increased to HKD 20,101,000 as of September 30, 2023, compared to HKD 886,000 as of March 31, 2023[8] - The company’s total liabilities increased to HKD 59,175,000 as of September 30, 2023, from HKD 55,001,000 as of March 31, 2023, indicating a rise of approximately 3.9%[41] - Trade receivables as of September 30, 2023, were HKD 11,369,000, down 54.6% from HKD 25,102,000 as of March 31, 2023[37] - Contract assets as of September 30, 2023, totaled HKD 67,460,000, an increase of 12.6% from HKD 59,928,000 at the beginning of the year[33] - The total contract liabilities remained unchanged at HKD (20,615,000) as of September 30, 2023[35] Cash Flow - The company reported a net cash outflow from operating activities of HKD (12,139) thousand, compared to a net inflow of HKD 1,692 thousand in the same period of 2022[12] - The company’s cash and cash equivalents increased significantly to HKD 16,996,000 as of September 30, 2023, from HKD 248,000 as of March 31, 2023[7] - The company had a cash balance of HKD 16,890 thousand at the end of the reporting period, compared to a negative balance of HKD (1,420) thousand at the end of the same period in 2022[12] - Cash and cash equivalents increased by HKD 17,574 thousand for the six months ended September 30, 2023, compared to a decrease of HKD (374) thousand in the same period of 2022[12] Share Capital and Financing - The company issued new shares through a rights issue, raising HKD 9,767,000 during the reporting period[10] - The company issued 97,670,000 new shares in a rights issue, increasing total issued shares to 293,010,000 as of September 30, 2023, compared to 195,340,000 as of March 31, 2023[45] - The company raised approximately HKD 18.33 million from the rights issue on September 8, 2023, with plans to utilize these funds for overdue trade payables and business expansion in China[91] - As of September 30, 2023, HKD 2.23 million of the rights issue proceeds had been used, with HKD 16.10 million remaining unutilized[93] - The board has decided to reallocate the unutilized net proceeds from the share placement due to the challenging external business and political environment[88] Operational Challenges and Strategies - The company is facing challenges such as high labor costs and skilled labor shortages, which may impact financial performance in the next six months[50] - The company is committed to regularly reviewing its existing business and seeking potential business and investment opportunities to expand its revenue sources[50] - The company has not disclosed any new strategies or market expansions in the current report[81] - The company faces risks related to project-based revenue generation, which may be affected by contract terms and project efficiency[96] Corporate Governance - The company has adopted a code of conduct for directors' securities trading, adhering to GEM listing rules[99] - The company has adhered to the corporate governance code as per GEM Listing Rules Appendix 15 during the reporting period, ensuring proper regulation of business activities and decision-making processes[102] - The Audit Committee has reviewed the unaudited consolidated results for the six months ended September 30, 2023, and confirmed that they were prepared in accordance with applicable accounting standards and GEM Listing Rules[104] - The company has not identified any business or interests from directors or controlling shareholders that may compete with its operations as of September 30, 2023[103] Employee Costs - Total employee costs for the six months ended September 30, 2023, amounted to HKD 1,532,000, a decrease of 42.6% from HKD 2,660,000 in the same period of 2022[26] - The company employed 11 staff members as of September 30, 2023, with total employee costs of approximately HKD 1,500,000 for the six months ended September 30, 2023, down from approximately HKD 2,700,000 for the same period in 2022[75] Other Income and Expenses - Other income increased from zero to approximately HKD 1,900,000 for the six months ended September 30, 2023[56] - The financing costs for the six months ended September 30, 2023, were HKD (126) thousand, a decrease from HKD (169) thousand in the same period of 2022[22] - The company did not declare or recommend any dividends for the six months ended September 30, 2023, consistent with the same period in 2022[28]
浩柏国际(08431) - 2024 - 中期财报