Financial Performance - For the six months ended October 31, 2023, the company reported revenue of HKD 26,515,000, a decrease of 51.6% compared to HKD 54,742,000 for the same period in 2022[6] - The gross profit for the same period was HKD 3,978,000, down 61.1% from HKD 10,237,000 in the previous year[6] - The company recorded a net profit of HKD 855,000 for the six months ended October 31, 2023, compared to a profit of HKD 3,452,000 for the same period in 2022, representing a decline of 75.2%[6] - Total comprehensive income for the six months was HKD 1,281,000, a decrease from HKD 4,941,000 in the prior year[6] - The company reported a basic and diluted earnings per share of HKD 0.17 for the six months ended October 31, 2023, down from HKD 0.69 in the previous year[6] - The pre-tax profit for the six months ended October 31, 2023, was HKD 22,537, down from HKD 44,505 in the same period of 2022, representing a decline of 49.3%[31] - The basic earnings per share for the six months ended October 31, 2023, was HKD 0.855, compared to HKD 3.452 in the same period of 2022, representing a decline of 75.2%[39] - The net profit for the period was approximately HKD 0.9 million, a decrease of about HKD 2.6 million or 74.3% from HKD 3.5 million in the same period last year[69] Assets and Liabilities - As of October 31, 2023, the company's total assets amounted to HKD 130,509,000, slightly up from HKD 130,306,000 as of April 30, 2023[8] - The company's cash and bank balances decreased to HKD 5,581,000 from HKD 18,033,000, indicating a significant reduction in liquidity[8] - The company's total liabilities decreased to HKD 27,175,000 from HKD 37,298,000, reflecting a reduction in financial obligations[8] - The net asset value increased to HKD 99,701,000 from HKD 98,420,000, showing a slight improvement in equity position[8] - Trade receivables as of October 31, 2023, amounted to HKD 38,171, down from HKD 44,111 as of April 30, 2023, reflecting a decrease of 13.5%[42] - Trade payables as of October 31, 2023, were HKD 3,893, a decrease from HKD 8,609 as of April 30, 2023, showing a decline of 54.8%[45] - The expected credit loss provision for trade receivables was HKD 26,988 as of October 31, 2023, down from HKD 29,723 as of April 30, 2023, indicating a decrease of 9.2%[42] - The company's total liabilities decreased from HKD 7,766 as of April 30, 2023, to HKD 5,782 as of October 31, 2023, reflecting a reduction of 25.5%[47] Cash Flow - For the six months ended October 31, 2023, the net cash used in operating activities was HKD (19,486) thousand, compared to HKD (17,363) thousand for the same period in 2022, representing an increase of 12.9% in cash outflow[14] - The net cash generated from investing activities was HKD 4 thousand, a significant decrease from HKD 253 thousand in the previous year[14] - The net cash generated from financing activities was HKD 7,183 thousand, a turnaround from a cash outflow of HKD (2,405) thousand in the same period last year[14] - The total cash and cash equivalents decreased by HKD 12,299 thousand, compared to a decrease of HKD 19,515 thousand in the prior year, indicating an improvement in cash management[14] - The total cash and cash equivalents at the end of the period were HKD 5,581 thousand, a significant decrease from HKD 40,347 thousand at the end of the previous year[14] Revenue Breakdown - Revenue from LED decorative lighting products for the six months ended October 31, 2023, was HKD 26,515 thousand, down 51.6% from HKD 54,742 thousand in the same period of 2022[29] - Revenue from the United States for the six months ended October 31, 2023, was HKD 5,192 thousand, a decrease of 65.1% compared to HKD 14,863 thousand in the previous year[23] - The company has not reported any revenue from LED lighting products for the six months ended October 31, 2023, indicating a potential area for future product development[29] - Revenue from LED decorative light products for the period was approximately HKD 16.8 million, down by about HKD 17.4 million or 50.9% from HKD 34.2 million in the previous year[54] Operational Highlights - The company upgraded 44 existing machines to increase the production capacity of LED lamp beads as part of its production facility enhancement plan[81] - A total of 11 patent applications have been submitted by the company, with one new application filed in the six months ending October 31, 2023[81] - The company hired 6 senior engineers to focus on product design and production, enhancing its product development capabilities[81] - The total salary cost incurred by the company for the six months ending October 31, 2023, was approximately HKD 4.6 million, with a total of 134 employees[76] Corporate Governance - The company has maintained compliance with the corporate governance code as per GEM Listing Rules during the six months ending October 31, 2023[91] - The audit committee reviewed the unaudited condensed consolidated financial statements for the six months ending October 31, 2023[95] - There were no known conflicts of interest involving directors or major shareholders with respect to the company's business as of October 31, 2023[88] - The company is committed to high standards of corporate governance to maintain stakeholder trust and create long-term value[91] Market Outlook - The company is cautiously optimistic about the market outlook for 2023, anticipating potential government stimulus measures in China to support economic recovery[56] - The company has increased its marketing efforts to attract potential customers in the U.S. due to tax incentives for exports[55] IPO and Shareholder Information - The net proceeds from the IPO amounted to approximately HKD 30.1 million, with HKD 25.3 million utilized as of October 31, 2023[82] - The company plans to utilize the remaining net proceeds from the IPO by the end of 2023, with HKD 4.8 million still available[82] - As of October 31, 2023, Real Charm Corp holds 234,000,000 shares, representing approximately 46.8% of the company's ordinary shares[87] - The company has not granted any stock options under the stock option plan since its adoption on November 16, 2017, with 50,000,000 options available for grant as of October 30, 2023[93] - The board of directors decided not to declare an interim dividend for the six months ending October 31, 2023[79] Other Financial Information - Interest income for the three months ended October 31, 2023, was HKD 1,250, a decrease from HKD 4,253 in the same period of 2022[30] - Research and development expenses for the six months ended October 31, 2023, were HKD 20, compared to HKD 22 in the same period of 2022, indicating a slight decrease of 9.1%[31] - The total tax expense for the six months ended October 31, 2023, was HKD 0, compared to HKD 835 in the same period of 2022, indicating a significant reduction[33] - The company has no significant capital commitments or contingent liabilities as of October 31, 2023[74] - The company has no assets pledged as of October 31, 2023[78] - No purchases, sales, or redemptions of the company's listed securities were made by the company or its subsidiaries in the six months ending October 31, 2023[89]
濠亮环球(08118) - 2024 - 中期财报