Financial Performance - For the six months ended September 30, 2023, the consolidated profit for the period was HK$192,577,000, compared to a loss of HK$118,272,000 in the same period of 2022, indicating a significant turnaround [20]. - The total comprehensive income for the period was HK$192,526,000, compared to a loss of HK$118,351,000 in the same period last year [178]. - The profit before tax for the period was HK$192,577,000, a significant improvement from a loss of HK$118,272,000 in the prior year [168]. - The Company reported a profit for the Period amounting to approximately HK$193.7 million, compared to a loss of approximately HK$115.7 million in the Previous Financial Period, primarily due to a non-cash item of approximately HK$330.3 million credited into income from the completion of a convertible bond amendment [53]. - Basic earnings per share increased to 13.23 HK cents, compared to a loss of 7.90 HK cents per share in the previous year [171]. Revenue and Expenses - The Group recorded revenue of approximately HK$3.7 million for the Financial Period, a decrease of approximately 9.7% from HK$4.1 million in the Previous Financial Period [53]. - The gross profit for the period was HK$380,000, down from HK$421,000 in the previous year, indicating a decline of about 9.7% [168]. - Research and development expenses decreased to HK$303,000 from HK$1,498,000 in the previous year, reflecting a reduction of approximately 79.8% [168]. - The total comprehensive expense for the period was HK$115,740,000, compared to HK$118,272,000 in the previous year, showing a slight reduction in overall expenses [20]. Assets and Liabilities - The company's net assets as of September 30, 2023, were HK$333,068,000, up from HK$140,562,000 as of March 31, 2023 [173]. - The company reported net current liabilities of approximately HK$369,165,000, which includes outstanding convertible bonds of HK$250,959,000 maturing in October and December 2023 [198]. - The total equity of the company increased to HK$333,068,000 from HK$140,562,000 as of March 31, 2023, representing a significant growth of approximately 137.5% [181]. - The current assets to current liabilities ratio was 0.02 as of September 30, 2023, up from 0.01 as of March 31, 2023 [111]. - The Group's gearing ratio improved to 0.76 as of September 30, 2023, from 0.90 as of March 31, 2023 [111]. Cash Flow - The net cash used in operating activities for the period was HK$4,378,000, compared to HK$2,858,000 in the previous period, indicating an increase in cash outflow [197]. - The company generated net cash from financing activities amounting to HK$3,867,000, up from HK$2,546,000 in the previous period, reflecting improved financing conditions [197]. - The cash and cash equivalents at the beginning of the period decreased by HK$511,000, compared to a decrease of HK$312,000 in the previous period, indicating a worsening liquidity position [197]. Development Projects - The Group's major asset, the development of an oral insulin product, is currently in Phase III clinical trials, with future cash flow dependent on successful trial outcomes and regulatory approval [13]. - The Group is developing a technology for oral insulin administration, currently in Phase III clinical trials with about 300 patients participating, aiming for commercialization by Q1 2025 [55]. - The oral insulin product is anticipated to be the first of its kind available in the market, addressing the strong demand in China due to the growing diabetic population [71]. - The project team aims to commercialize the Product in the first quarter of 2025, with regular monitoring of progress [120]. Corporate Governance and Strategy - The Company has adopted and complied with all provisions of the Corporate Governance Code, except for deviations from provisions C.2.1 and F.1.1 [145]. - The role of Chief Executive Officer remains vacant, and the Company is actively seeking a suitable candidate for this position [145]. - The Company is committed to enhancing investor confidence through transparency and accountability to its shareholders and stakeholders [145]. - The Company continues to pursue cooperation, joint ventures, and investments to enhance shareholder returns and sustainable long-term development [56]. - The Company is actively reviewing its strategies to enhance its market position and operational efficiency [56]. Shareholder Information - As of September 30, 2023, Dr. Mao Yumin holds 1,147,200,000 shares, representing 78.35% of the issued share capital of the Company [154]. - The Company has a substantial shareholder, Dr. Mao Yumin, with a direct holding of 323,200,000 ordinary shares [155]. - The register shows that several shareholders, including Dr. Mao Yumin and United Gene Holdings Limited, hold significant interests of 5% or more in the issued share capital [152]. Convertible Bonds - The Company issued convertible bonds on multiple dates, with a maturity of ten years from the issuance date [44]. - The proposed issue of convertible bonds amounts to an aggregate principal of HK$359.6 million, with an extension of the maturity date from ten to twenty years [104]. - The Company will issue convertible bonds with a principal amount of HK$55,500,000, which will be settled by offsetting against a loan from a substantial shareholder [200]. - The maturity date of the convertible bonds has been conditionally amended to extend for an additional ten years [200].
领航医药生物科技(00399) - 2024 - 中期财报