Financial Performance - For the six months ended September 30, 2023, the company reported a net exchange gain of HKD 2,576,000, compared to a loss of HKD 8,560,000 in the same period of 2022, indicating a significant improvement [3]. - Total income for the six months ended September 30, 2023, was HKD 4,295,000, a decrease of 70.8% from HKD 14,696,000 in the previous year [3]. - The company reported a loss attributable to owners of the company of HKD 9,983,000 for the six months ended September 30, 2023, compared to a loss of HKD 64,693,000 in the same period of the previous year, indicating a significant reduction in losses [14]. - The company recorded a net cash inflow from operating activities of HKD 3.1 million in the first half of fiscal year 2024, compared to a cash outflow of HKD 61.8 million in the same period last year [84]. - The company narrowed its net loss to HKD 10,000,000 in the first half of fiscal year 2024, a significant reduction of 84.6% compared to HKD 64,700,000 in the same period last year [90]. - The total comprehensive loss for the period was approximately HKD 25.6 million, compared to HKD 82.2 million for the same period in 2022 [120]. - The company reported a basic loss per share of HKD (0.49), compared to HKD (3.15) in the previous year, indicating an improvement in performance [182]. Revenue and Profitability - Media segment revenue for the first half of fiscal year 2024 was HKD 280 million, a decrease of 6.1% compared to HKD 300 million in the first half of fiscal year 2023 [71]. - The gross profit for the media segment in the first half of fiscal year 2024 was HKD 150 million, down by HKD 22.7 million or 12.9% from the previous year [77]. - The e-commerce and retail segment's gross profit for the first half of fiscal year 2024 was HKD 53.7 million, a decrease of HKD 4.7 million or 8.1% compared to HKD 58.4 million in the first half of fiscal year 2023 [79]. - Overall gross profit decreased by approximately 11.7% to HKD 210 million in the first half of fiscal year 2024 from HKD 230 million in the previous year [81]. - The e-commerce and retail segment's revenue increased by 5.7% to HKD 160,000,000 in the first half of fiscal year 2024, driven by inventory optimization and increased promotional activities [89]. - Total revenue for the media segment reached HKD 283,111,000, while the e-commerce and retail segment generated HKD 156,896,000, resulting in a combined total of HKD 440,007,000 [161]. Expenses and Liabilities - The company incurred a tax expense of HKD 2,245,000 for the six months ended September 30, 2023, compared to HKD 19,198,000 in the same period of 2022, representing an 88.3% decrease [5]. - Selling and marketing expenses decreased by 12.1% to HKD 91,800,000, representing 20.9% of revenue, down from 23.2% in the previous year [93]. - Administrative and operating expenses increased by 3.5% to HKD 125,000,000, accounting for 28.3% of revenue, up from 26.8% in the previous year [95]. - The group incurred a loss before tax of approximately HKD 7.7 million for the six months ended September 30, 2023, compared to a loss of HKD 45.5 million for the same period in 2022 [120]. - The company reported a net cash outflow from financing activities of HKD 16,990,000 for the six months ended September 30, 2023, compared to HKD 9,116,000 in the previous year [122]. Assets and Equity - As of September 30, 2023, the group had total assets of approximately HKD 590 million, down from HKD 640 million as of March 31, 2023 [108]. - Total liabilities decreased to approximately HKD 150 million from HKD 180 million as of March 31, 2023, resulting in shareholders' equity of approximately HKD 440 million [108]. - The company's total assets amounted to HKD 468,294,000, a decrease of 5.9% from HKD 497,664,000 as of March 31, 2023 [121]. - The total equity of the company as of September 30, 2023, was HKD 442,841,000, down from HKD 466,605,000, indicating a decrease of 5.1% [121]. Shareholder and Governance - The company has a major shareholder, CORE Capital, holding 1,485,000,000 shares, representing 72.29% of the total issued shares [44]. - The company has adopted the corporate governance code and confirmed compliance with the relevant provisions, except for the separation of roles between the Chairman and CEO [41]. - The company’s board believes that the dual role of the Chairman and CEO provides strong and consistent leadership [58]. - The company has not declared or proposed any dividends during the interim period [166]. Operational Developments - The company operates in two main segments: media assets providing creative advertising services and digital media distribution, and e-commerce and retail selling apparel and lifestyle products [61]. - The company is focusing on developing new editorial categories to attract a broader user base, including golf, arts, and entertainment content [70]. - The company continues to invest in consumer short videos and social media platforms to enhance brand awareness and attract new users [70]. - The company aims to integrate its e-commerce and retail shopping media platform directly into its media platforms to encourage user conversion [70]. - The company has optimized its inventory and product mix to improve gross and net profit margins amid ongoing business optimization efforts [79]. Foreign Exchange and Interest Rates - The company experienced a significant improvement in foreign exchange gains, recording a net gain of HKD 2.6 million in the first half of fiscal year 2024, compared to a net loss of HKD 8.6 million in the previous year [82]. - The company’s cash and cash equivalents were subject to interest rates ranging from 0.001% to 5.42% as of September 30, 2023, compared to 0.001% to 4.63% as of March 31, 2023 [16]. - The effective interest rate for floating rate borrowings ranged from 3.94% to 6.92% as of September 30, 2023, compared to 4.13% to 4.65% as of March 31, 2023 [32]. Employment and Costs - Employee costs for the six months ended September 30, 2023, were approximately HKD 170 million, an increase from HKD 160 million for the same period in 2022, mainly due to severance payments and other employee-related expenses [118]. - The group employed a total of 523 employees as of September 30, 2023, down from 553 employees as of September 30, 2022 [118].
HYPEBEAST(00150) - 2024 - 中期财报