Financial Performance - Revenue for the Reporting Period was approximately HK$357.8 million, an increase from HK$258.4 million in the same period last year, representing a growth of 38.5%[16] - Loss after taxation for the Reporting Period amounted to approximately HK$8.7 million, a decrease from a loss of HK$20.4 million in the previous year, indicating an improvement of 57.5%[16][21] - Basic loss per share for the Reporting Period was approximately 1.05 HK cents, based on a weighted average of 500,000,000 ordinary shares[16] - Gross profit for the Reporting Period was approximately HK$48.8 million, compared to HK$45.3 million in the previous year, reflecting a gross margin increase[21] - Other income for the Reporting Period was approximately HK$15.2 million, a significant increase from a loss of HK$1.9 million in the previous year[21] - Loss before taxation improved to approximately HK$8.2 million from HK$18.3 million in the previous year, showing a reduction of 55.2%[21] - Income tax expense for the Reporting Period was approximately HK$0.5 million, down from HK$2.1 million in the previous year[21] - For the six months ended September 30, 2023, the loss attributable to owners of the Company was HK$5,235,000, a significant improvement from a loss of HK$18,923,000 in the same period of 2022, representing a reduction of approximately 72.5%[23] - Total comprehensive expense for the period was HK$9,579,000, down from HK$21,253,000 in the prior year, indicating a decrease of about 55.1%[23] - Basic loss per share for the period attributable to owners of the Company improved to HK$0.09 from HK$1.05, reflecting a substantial decrease in loss per share of approximately 91.4%[23] Assets and Liabilities - Non-current assets increased to HK$120,958,000 as of September 30, 2023, compared to HK$10,762,000 as of March 31, 2023, showing a significant rise[25] - Current assets rose to HK$253,947,000 from HK$216,732,000, marking an increase of approximately 17.2%[25] - Current liabilities increased to HK$189,711,000 from HK$115,184,000, representing a rise of about 64.6%[25] - Net assets as of September 30, 2023, were HK$118,378,000, up from HK$91,644,000 as of March 31, 2023, indicating an increase of approximately 29.1%[27] - The Company reported an increase in inventories to HK$26,954,000 from HK$16,871,000, which is an increase of about 59.5%[25] - The amount due to a related party rose to HK$75,026,000 from HK$70,585,000, reflecting an increase of approximately 6.5%[25] - Trade debtors, net of loss allowance, increased to HK$66,426,000 as of 30 September 2023, up from HK$34,593,000 as of 31 March 2023, reflecting a 92.1% increase[95] - Trade payables rose to HK$64,473,000 as of 30 September 2023, compared to HK$22,406,000 as of 31 March 2023, marking a 187.5% increase[102] - As of 30 September 2023, the Group's total trade and other receivables amounted to HK$85,856,000, an increase from HK$58,220,000 as of 31 March 2023, representing a 47.5% growth[95] Cash Flow and Financing - The company generated HK$5,730,000 in cash from operations before working capital changes, a significant turnaround from cash used in operations of HK$19,416,000 in the previous year[35] - Net cash generated from operating activities was HK$5,233,000, compared to cash used of HK$20,215,000 in the same period last year[35] - The company reported a net increase in cash and cash equivalents of HK$1,553,000, contrasting with a decrease of HK$41,773,000 in the prior year[36] - The company invested HK$1,892,000 in property, plant, and equipment, compared to HK$76,000 in the same period of 2022[36] - Proceeds from bank borrowings amounted to HK$13,843,000, while repayments totaled HK$6,317,000, indicating active financing activities[36] - The company’s interest income increased to HK$760,000 from HK$31,000 in the previous year, reflecting improved financial management[36] Segment Performance - The Garment Business generated segment revenue of HK$274,964,000, while the Healthcare Products Business and IRO with CRO and In-house R&D Business contributed HK$65,060,000 and HK$17,805,000, respectively[52] - The Group reported a segment loss of HK$17,218,000 for the six months ended September 30, 2023, compared to a loss of HK$8,884,000 for the same period in 2022[52][55] - Revenue from external customers for the six months ended September 30, 2023, included HK$120,467,000 from the United States and HK$106,979,000 from Japan[63] - The Healthcare Products Business experienced a segment loss of HK$369,000, while the IRO with CRO and In-house R&D Business reported a significant loss of HK$26,661,000[52] - The Group recorded revenue of approximately HK$17.8 million for the Reporting Period in the specialized CRO business, representing an increase of approximately 141.3% compared to HK$7.4 million for the six months ended 30 September 2022[150] Expenses - Selling and distribution expenses increased to HK$25.5 million from HK$21.5 million, indicating a rise of 18.6%[21] - Administrative expenses were slightly higher at HK$32.1 million compared to HK$31.6 million in the previous year[21] - Research and development expenses for the six months ended 30 September 2023 amounted to HK$11,408,000, an increase from HK$5,412,000 in the previous year, reflecting a growth of approximately 110.5%[80] - Staff costs, including directors' remuneration, rose to HK$43,003,000 for the six months ended 30 September 2023, compared to HK$25,517,000 in the previous year, marking an increase of approximately 68.2%[80] - Selling and distribution expenses increased by approximately HK$4.0 million or 18.2% to approximately HK$25.5 million, primarily due to rising transportation costs[186] - Administrative expenses rose by approximately HK$0.5 million or 1.6% to approximately HK$32.1 million, mainly due to increased staff costs and legal fees[191] Dividends - The Board does not recommend the payment of an interim dividend for the Reporting Period[16] - No dividends were paid, declared, or proposed during both interim periods, with the Board not recommending any payment of interim dividend for the current interim period[75] Acquisitions and Investments - The company acquired 65% of R&E Corporation Limited for HK$56.16 million, completed on May 23, 2023[108] - The identifiable net assets acquired amounted to HK$15.76 million, with goodwill arising from the acquisition at HK$19.92 million[111] - The acquisition of R&E Corporation Limited is part of the company's strategy to expand into the Japanese health food market[108] - The Limited Partnership established in Japan aims to invest in start-ups and emerging companies with high growth potential in healthcare, intelligent manufacturing, technology, and consumer services[93] Strategic Focus - The Group is focusing on anti-obesity and anti-diabetes therapies using brown adipocytes induction technology, and is collaborating with a major university in Japan on a treatment for Lower Extremity Artery Diseases (LEAD)[149] - The Group aims to provide a one-stop solution for drug development support, leveraging its knowledge and experience in the IRO and CRO services[142] - The IRO business is expected to create synergies for the expansion of the In-House R&D and Healthcare Products Business segments[147] - The Group's sales teams are actively expanding client bases and exploring new manufacturing sources and product development to maintain profitable margins in the Garment Business[134] - Economic challenges such as rising interest rates and inflation continue to impact the Group's business operations[134]
EPS创健科技(03860) - 2024 - 中期财报