Financial Performance - For the six months ended September 30, 2023, the company reported revenue of HK$3,000 (compared to HK$15,662,000 for the six months ended June 30, 2022), indicating a significant decline in revenue[10]. - The cost of sales for the reporting period was HK$131,530,000, resulting in a gross loss of HK$115,868,000[10]. - Other income and gains for the period amounted to HK$11,543,000, a decrease from HK$187,185,000 in the previous period[10]. - The company incurred a loss before tax of HK$21,768,000, an improvement compared to a loss of HK$35,103,000 for the same period last year[10]. - Total comprehensive loss for the period was HK$99,378,000, compared to HK$31,056,000 in the previous period[12]. - The loss attributable to owners of the company was HK$21,763,000, compared to HK$31,370,000 in the prior period[12]. - The company reported finance costs of HK$15,560,000, down from HK$52,534,000 in the previous period, indicating a reduction in financial expenses[10]. - Total comprehensive loss for the six months ended September 30, 2023, was HK$99,378,000, compared to HK$31,056,000 for the same period in 2022, representing an increase of 220%[14]. - Loss per share attributable to ordinary equity holders for the period was HK7.49 cents, an improvement from HK10.93 cents in the previous year[14]. - The Group incurred a loss attributable to owners of HK$21,763,000 for the six months ended 30 September 2023[30]. - The Group recorded a loss for the period of approximately HK$21,768,000, a decrease from HK$35,103,000 in the previous period[184]. Assets and Liabilities - Total non-current assets decreased to HK$1,675,728,000 as of September 30, 2023, down from HK$1,780,421,000 as of March 31, 2023, reflecting a decline of 5.9%[17]. - Current liabilities increased to HK$370,382,000 as of September 30, 2023, compared to HK$356,604,000 as of March 31, 2023, indicating a rise of 3.9%[17]. - Net assets decreased to HK$1,090,304,000 as of September 30, 2023, down from HK$1,188,982,000 as of March 31, 2023, a decline of 8.3%[19]. - The company reported a total equity of HK$1,090,304,000 as of September 30, 2023, compared to HK$1,188,982,000 as of March 31, 2023, reflecting a decrease of 8.3%[19]. - Cash and bank balances decreased to HK$487,000 as of September 30, 2023, from HK$601,000 as of March 31, 2023, a decline of 19%[17]. - Other payables, accruals, and deposits received increased to HK$78,890,000 as of September 30, 2023, compared to HK$59,199,000 as of March 31, 2023, an increase of 33.3%[17]. - As of September 30, 2023, the Group had net current liabilities of HK$240,793,000[30]. - The group reported other payables and accrued charges of HK$135,304,000 as of September 30, 2023, up from HK$117,703,000 as of March 31, 2023[130]. - The group’s unsecured other borrowings amounted to HK$218,188,000 as of September 30, 2023, unchanged from March 31, 2023[134]. Cash Flow - Net cash flows used in operating activities were HK$4,146,000, compared to a generation of HK$1,612,000 in the previous period[25]. - Net cash flows generated from investing activities were HK$271,000, while the previous period saw a cash outflow of HK$64,000[25]. - Net cash flows generated from financing activities were HK$447,000, compared to a cash outflow of HK$2,205,000 in the previous period[25]. - Cash and cash equivalents decreased by HK$3,428,000, compared to a decrease of HK$657,000 in the previous period[25]. - Cash and cash equivalents at 30 September 2023 were HK$487,000, down from HK$7,182,000 at 30 June 2022[25]. Operational Updates - The company has not provided specific guidance for future performance or new product developments in the current report[8]. - There were no significant updates on market expansion or mergers and acquisitions mentioned during the conference call[8]. - The company is expected to resume coke production once the construction of supporting facilities is completed, which is being expedited by Energy Technology[157]. - The company anticipates that government economic stimulus measures will improve the macroeconomic environment, potentially boosting coke demand in the second half of the year[158]. - The company is exploring transitional operating arrangements to meet short-term customer demand until the coking furnace assets are operational[159]. - The Coke Trading Segment did not generate any revenue during the Reporting Period, continuing a trend of no segment results since the suspension of coke trading business in 2021[170]. - The Coal-related Ancillary Segment also reported no external sales during the Reporting Period, compared to HK$15,662,000 in the Previous Period, due to the disposal of GRG Huscoke[172]. - The company is focused on resuming its coke production business to generate sustainable operating income and cash flow in the future[159]. Cost Management - The company reported finance costs of HK$15,560,000, down from HK$52,534,000 in the previous period, indicating a reduction in financial expenses[10]. - Total employee benefit expenses decreased to HK$4,649,000 for the six months ended 30 September 2023, down from HK$12,407,000 in the same period last year, indicating a reduction of 62.5%[78]. - The Group's loss before tax was impacted by a significant reduction in finance costs and employee benefit expenses, indicating a strategic focus on cost management[77]. - Administrative expenses decreased to approximately HK$17,751,000 from HK$53,231,000 in the previous period, aligning with the decrease in revenue[182]. Shareholder Information - The company did not recommend any interim dividend for the six months ended 30 September 2023, consistent with the previous period[83]. - The weighted average number of ordinary shares in issue increased to 290,373,235 for the six months ended 30 September 2023, up from 287,071,349 in the previous period[89]. - As of September 30, 2023, the company issued and fully paid 290,373,235 ordinary shares, an increase from 287,071,349 shares as of March 31, 2023, representing a growth of approximately 1%[137]. - The company issued 3,301,886 ordinary shares at an issue price of HK$0.212 per share to settle part of the professional fees of the financial adviser[138]. - The company has no outstanding share options as the Share Option Scheme expired on March 28, 2023, prior to the reporting period[146]. Strategic Developments - The company intends to acquire a controlling shareholding stake of more than 50% in Energy Technology as per the New Framework Agreement[100]. - The M&A Framework Agreement allows the company to hold more than 50% of the enlarged share capital in Energy Technology upon completion of the transactions[106]. - A cooperation agreement was signed for the construction of a new coking furnace with an annual production capacity of at least 600,000 tons, with a total investment of approximately RMB 600,000,000[110]. - Energy Technology will transfer not less than 90% of the equity interests of a target company, which owns two coking furnaces with a combined annual production capacity of not less than 1,200,000 tons, as compensation for an incident[114].
和嘉控股(00704) - 2024 - 中期财报