Financial Performance - For the six months ended September 30, 2023, the profit attributable to owners of the Company was a loss of HK$237,725,000 compared to a profit of HK$45,821,000 in the same period last year[10]. - Revenue for the six months ended 30 September 2023 was HK$30,141,000, a decrease of 11.4% compared to HK$34,095,000 in 2022[14]. - The company reported a loss for the period of HK$236,913,000, compared to a profit of HK$45,940,000 in 2022, indicating a significant decline[15]. - Total comprehensive expense for the period was HK$240,574,000, compared to a comprehensive income of HK$33,150,000 in the previous year[15]. - Basic and diluted earnings per share attributable to owners of the company were both HK$-9.95, a decrease from HK$1.92 in 2022[15]. - The Group reported a loss before tax of HK$236,913,000 for the period, a significant decline from a profit of HK$45,940,000 in the previous year[192]. Assets and Liabilities - Total assets as of September 30, 2023, were HK$1,204,998,000, down from HK$1,444,874,000, indicating a decline of 16.6%[12]. - Total equity as of September 30, 2023, was HK$1,039,347,000, a decrease of 18.9% from HK$1,281,570,000 as of March 31, 2023[7]. - Current liabilities decreased to HK$51,453,000 from HK$57,014,000, reflecting a reduction of 9.1%[7]. - The reserves decreased to HK$1,016,623,000 from HK$1,257,822,000, a decline of 19.2%[7]. - The Company’s cash and bank balances were HK$89,786,000, down from HK$102,401,000, representing a decrease of 12.3%[12]. - Cash and cash equivalents at the end of the period were HK$89,786,000, down from HK$98,854,000 in 2022[21]. - Trade payables amounted to HK$5,779,000, a decrease of 12.9% from HK$6,634,000 as of March 31, 2023[180]. Cash Flow - Net cash used in operating activities was HK$6,380,000, compared to HK$3,447,000 in the same period last year, indicating increased cash outflow[21]. - Net cash used in investing activities was HK$4,426,000, a decrease from HK$6,115,000 in 2022, reflecting reduced investment spending[21]. - The company experienced a net decrease in cash and cash equivalents of HK$11,688,000, compared to HK$10,551,000 in the previous year[21]. Segment Performance - The manufacturing segment's revenue decreased by about HK$4.0 million to approximately HK$30.1 million, while gross profit increased by about HK$1.4 million due to improved production efficiency[56]. - Segment results improved to about HK$3.5 million, attributed to lower cost of sales and reduced marketing expenses by approximately HK$1.6 million[56]. - The gene development sector remained inactive during the 2023 Interim Period, with no revenue recorded[101]. Investments - The Company held Innovative Pharm Bonds valued at approximately HK$567.6 million as of September 30, 2023, representing about 47.1% of the Group's total assets[112]. - The fair value change of the Innovative Pharm Bonds recorded an unrealized loss of about HK$225.9 million in the 2023 Interim Period, compared to an unrealized gain of about HK$60.8 million in the 2022 Interim Period[112]. - The Group's investments in Innovative Pharm Bonds have a principal amount of HK$715,000,000, bearing an interest rate of 3.5% per annum, with an initial maturity date of 28 July 2021[35]. Corporate Governance - The Company has adopted new bye-laws to conform to core standards for shareholder protections as set out in the Listing Rules[147]. - The Company recognizes the importance of high standards of corporate governance and is committed to monitoring and achieving these standards[139]. - The Company believes that adequate balance of power and authority is maintained despite the roles of chairman and chief executive officer being held by the same person[139]. Market Outlook - The Chinese pharmaceutical industry is expected to continue prospering despite challenges, with the company pursuing new product lines to achieve market acceptance[101]. - The Group believes that the rising household income, accelerated aging population, and increased healthcare awareness will support the long-term growth of the pharmaceutical industry in China[127]. - China's economy recorded a growth rate of 5.2% year-on-year in the first three quarters of 2023, supporting the pharmaceutical industry's growth momentum[63]. Staff and Management - As of September 30, 2023, the Group employed 169 staff members, a decrease from 172 staff members as of September 30, 2022[134]. - Staff costs for the 2023 Interim Period amounted to approximately HK$10.2 million, down from HK$10.5 million in the 2022 Interim Period, primarily due to reduced salaries and allowances from the decrease in staff numbers[134]. - Salaries, fees, and other benefits for key management personnel amounted to HK$1.943 million, a decrease from HK$2.846 million in the 2022 Interim Period[78].
精优药业(00858) - 2024 - 中期财报