Financial Performance - Revenue for the six months ended September 30, 2023, was HKD 54,100,000, a decrease of 51% compared to HKD 110,712,000 for the same period in 2022[14]. - Gross profit for the period was HKD 7,752,000, down 87% from HKD 60,716,000 year-on-year[14]. - The company reported a net profit of HKD 17,371,000 for the period, a significant recovery from a net loss of HKD 241,725,000 in the previous year[14]. - Basic earnings per share for the period was HKD 2.38, compared to a loss per share of HKD 31.53 in the same period last year[14]. - The total comprehensive loss for the period was HKD 1,046,000, significantly improved from a total comprehensive loss of HKD 280,923,000 in the previous year[19]. - The company reported a net profit of HKD 18,176,000 for the six months ended September 30, 2023, compared to a loss of HKD 241,353,000 in the same period last year[19]. - The group recorded a profit of approximately HKD 17,371,000, compared to a loss of approximately HKD 241,725,000 in the same period last year[127]. Assets and Liabilities - Total assets as of September 30, 2023, were HKD 455,795,000, down from HKD 501,214,000 as of March 31, 2023[15]. - The company’s non-current assets totaled HKD 320,881,000, a slight decrease from HKD 332,702,000 at the end of the previous fiscal year[15]. - The company’s total assets include property, plant and equipment, intangible assets, and cash equivalents[34]. - The total liabilities as of September 30, 2023, were HKD 388,156,000, compared to HKD 456,298,000 as of March 31, 2023, indicating a reduction of 14.9%[42]. - The company’s non-current liabilities were approximately HKD 330,239,000, down from HKD 373,898,000 as of March 31, 2023, including convertible bonds of about HKD 257,079,000[157]. - The asset-to-liability ratio improved to approximately 2.65 from 2.98 as of March 31, 2023, indicating a reduction in total debt relative to total equity[157]. Cash Flow and Expenditures - Cash and cash equivalents decreased to HKD 181,023,000 from HKD 234,113,000 over the same period[15]. - Operating cash flow for the period was a net outflow of HKD 16,712,000, a decline from a net inflow of HKD 26,553,000 in the previous year[26]. - The company incurred a total of HKD 8,578,000 in capital expenditures for property, plant, and equipment during the six months, up from HKD 4,067,000 in the prior year[26]. - Capital expenditures for property, plant, and equipment during the six months ended September 30, 2023, were HKD 10,775,000, compared to HKD 10,533,000 in the previous year[40]. - The company recognized an additional environmental-related cost of HKD 7,043,000 due to new regulations in Xinjiang, China[51]. Revenue Breakdown - Revenue from the coal mining business for the six months ended September 30, 2023, was HKD 42,744,000, a significant decrease from HKD 94,376,000 in the same period of 2022, reflecting a decline of 54.8%[45]. - IT consulting and technical services revenue increased to HKD 4,445,000, up 36% from HKD 3,276,000 in the previous year[49]. - The company reported a significant decline in revenue from IT hardware sales, which fell to HKD 2,597,000 from HKD 6,107,000[49]. - The revenue recognized over time from renewable energy solutions was HKD 1,759,000, slightly down from HKD 1,804,000 in the previous year[49]. - Coal sales revenue was HKD 42,744,000, down 55% from HKD 94,376,000 year-over-year[49]. Foreign Exchange and Financial Instruments - The company incurred a net foreign exchange loss of HKD 3,170,000, compared to a loss of HKD 7,442,000 in the previous year[14]. - The company experienced a foreign exchange loss of HKD 17,759,000 related to convertible bonds during the reporting period[65]. - The fair value of convertible bonds classified as financial liabilities measured at fair value through profit or loss was HKD 257,079,000 as of September 30, 2023, down from HKD 299,372,000 as of March 31, 2023[104]. Corporate Strategy and Future Outlook - The company has not provided specific guidance for future performance but indicated ongoing efforts in market expansion and product development[14]. - The company aims to diversify its business portfolio into higher growth sectors, particularly in technology and renewable energy, following acquisitions in 2018 and 2019[153]. - The company continues to evaluate its IT service business model and strategy in response to adverse economic conditions affecting operations in Hong Kong[153]. - The company aims to become a diversified business entity in the long term[114]. Shareholder Information - The weighted average number of ordinary shares used for calculating basic earnings per share was 763,373,584 for the six months ended September 30, 2023, slightly down from 765,373,584 in 2022[61]. - The company has a total of 765,373,584 ordinary shares issued and fully paid as of September 30, 2023, with a par value of HKD 0.10 per share[90]. - The convertible bonds could potentially issue an additional 1,000,000,000 shares, which would increase the total to approximately 205.08% of the company's issued shares[177]. Governance and Compliance - The board of directors has confirmed compliance with the trading code throughout the reporting period[178]. - The audit committee consists of three independent non-executive directors, ensuring oversight of accounting principles and financial reporting[179].
南南资源(01229) - 2024 - 中期财报