Financial Performance - Total revenue for the six months ended September 30, 2023, was approximately HKD 498.6 million, a decrease of about HKD 70.4 million or 12.4% compared to HKD 569.0 million for the same period last year[7]. - Gross profit for the period was approximately HKD 56.9 million, down by about HKD 1.8 million or 3.0% from HKD 58.7 million in the previous period[12]. - Profit for the period was approximately HKD 11.5 million, a decrease of about HKD 4.8 million or 29.4% compared to HKD 16.3 million in the previous period[14]. - Revenue from IT infrastructure solutions decreased to approximately HKD 425.5 million, down by about HKD 79.2 million or 15.7% from HKD 504.7 million in the previous period[9]. - Revenue from IT management services increased to approximately HKD 73.1 million, an increase of about HKD 8.8 million or 13.6% compared to HKD 64.3 million in the previous period[9]. - Basic earnings per share decreased to HKD 0.04 from HKD 0.05, reflecting a 20% drop[51]. - The company reported a net profit of HKD 11,529,000 for the six months ended September 30, 2023, a decline of 29.2% from HKD 16,324,000 in the previous year[51]. - The company reported a net profit of HKD 11,529,000 for the six months ended September 30, 2023, compared to HKD 16,324,000 for the same period in 2022, reflecting a decline of 29.25%[82]. Costs and Expenses - Total sales costs for the period were approximately HKD 441.6 million, a decrease of about HKD 68.6 million or 13.5% from HKD 510.3 million in the previous period[10]. - Operating expenses totaled approximately HKD 44.3 million, a decrease of about HKD 0.8 million or 1.8% from HKD 45.2 million in the previous period[13]. - Total costs of goods sold for the period were HKD 382,186,000, a decrease from HKD 456,450,000 in the previous year, representing a reduction of 16.25%[80]. - The company incurred administrative expenses of HKD 14,936,000, slightly up from HKD 15,462,000 in the previous year[74]. - The company’s financing costs decreased to HKD 266,000 from HKD 374,000 in the previous year, indicating a reduction of 29.05%[74]. Cash Flow and Liquidity - Cash and cash equivalents as of September 30, 2023, were approximately HKD 120.2 million, down from HKD 248.3 million as of March 31, 2023[16]. - The net cash used in operating activities was HKD (103,888,000) for the six months ended September 30, 2023, compared to HKD (82,143,000) in the same period of 2022, indicating a worsening cash flow situation[60]. - The cash and cash equivalents decreased by HKD 133,369,000, ending at HKD 114,903,000 as of September 30, 2023, compared to HKD 118,254,000 at the end of the same period in 2022[60]. - Current liabilities decreased to HKD 216,685,000 from HKD 297,879,000, indicating improved liquidity[54]. Shareholder Information - The company declared an interim dividend of HKD 0.02 per share, totaling HKD 6.0 million, compared to HKD 0.045 per share in the previous period[25]. - Major shareholders include Weiye Holdings with 14.2% and Microware International with 12.8% of the shares[45]. - The company has a total of 300,000,000 shares issued as of September 30, 2023[45]. Employee and Operational Metrics - As of September 30, 2023, the company had 246 employees, a decrease from 252 employees a year earlier, with total employee costs approximately HKD 53.6 million[24]. - The company has not issued any stock options under the stock option plan since its adoption[39]. - The company did not hold any significant investments during the period[27]. - There were no major acquisitions or disposals related to subsidiaries, associates, or joint ventures during the period[28]. Future Outlook and Strategy - The company anticipates that the rebound in business will manifest in the second half of the year as international borders reopen and supply chains recover[30]. - The company plans to focus on its competitive advantages in the industry and provide specific solutions to meet customer needs[30]. - The company will continue to diversify and expand its expertise to enhance service offerings across different business sectors[30]. Financial Position - Total assets as of September 30, 2023, were HKD 402,881,000, down from HKD 497,755,000 as of March 31, 2023[54]. - The company's net asset value was HKD 192,500,000 as of September 30, 2023, down from HKD 212,471,000 at the end of the previous reporting period[54]. - The company’s total equity as of September 30, 2023, was HKD 192,500,000, down from HKD 210,796,000 a year earlier[57]. - The company’s total liabilities decreased from HKD 210,796,000 as of September 30, 2022, to HKD 192,500,000 as of September 30, 2023[57]. Risk Management - The company has established foreign currency forward contracts to manage currency risk, with nominal amounts of USD 500,000 and USD 1,000,000 for various contracts[90]. - The fair value of derivative financial instruments as of September 30, 2023, was HKD 98,000,000, down from HKD 177,000,000 as of March 31, 2023[98]. - The company conducts credit reviews before accepting new customers to assess credit quality and define credit limits[84]. - The company has a policy of granting credit terms of 7 to 90 days to its customers[84]. - The aging analysis of trade receivables shows that amounts overdue by 31 to 60 days increased to HKD 44,130,000 from HKD 23,488,000, a significant increase of 88%[85].
美高域(01985) - 2024 - 中期财报