Revenue Performance - Total revenue for the six months ended March 31, 2023, was HKD 2,505,881, compared to HKD 351,801 for the same period in 2022, representing a significant increase[8]. - Revenue from external customers in the contract manufacturing segment was HKD 210,447, while the solutions services segment generated HKD 44,544[2]. - The company’s cryptocurrency trading revenue for the six months ended March 31, 2023, was HKD 2,384,836, a substantial increase from HKD 76,137 in the previous year[8]. - The group reported external customer revenue of HKD 2,505,881 thousand, with contributions from the virtual asset ecosystem, technology solutions, and contract manufacturing[190]. - Sales to the largest customer and the top five customers accounted for 76.3% and 87.3% of the group’s total revenue, respectively[108]. Financial Losses - The company reported a loss before tax of HKD 232,960 for the period, with total administrative expenses amounting to HKD 49,830[2]. - The group recorded a net loss of approximately HKD 232.4 million for the period ending March 31, 2023, compared to a net loss of approximately HKD 48.8 million for the same period in 2022[33]. - The group reported a pre-tax loss of approximately HKD 233.0 million for the period, compared to a pre-tax loss of approximately HKD 44.6 million in 2022, primarily due to impairment losses related to the inability to withdraw cryptocurrency assets from FTX[45]. - The company reported a gross loss of HKD 4,831 thousand, representing a decline of 104.8% from a gross profit of HKD 101,173 thousand in the previous year[140]. - Loss attributable to owners of the company was HKD 241,506 thousand, an increase of 395.0% from HKD 48,787 thousand in the same period last year[142]. Assets and Liabilities - The total assets of the company as of March 31, 2023, were HKD 1,068,392, with liabilities totaling HKD 921,306[4]. - The total assets as of March 31, 2023, amounted to HKD 480,999 thousand, a decrease from HKD 808,112 thousand as of September 30, 2022, representing a decline of about 40%[178]. - Total liabilities were reported at HKD 793,392 thousand, with segment liabilities in virtual assets, technology solutions, and contract manufacturing being HKD 47,510 thousand, HKD 8,605 thousand, and HKD 172,272 thousand respectively[168]. - The group’s asset-liability ratio was approximately -660.1% as of March 31, 2023, compared to 317.5% as of September 30, 2022[103]. Costs and Expenses - The group reported a significant increase in costs related to cryptocurrency trading, amounting to HKD 2,399,589 for the period[12]. - The group’s sales costs were approximately HKD 2,399.6 million, resulting in a recognized loss of approximately HKD 13.9 million[42]. - Administrative expenses decreased by approximately HKD 20.3 million or 13.8% to about HKD 126.5 million from approximately HKD 146.8 million in the previous period[72]. - The company reported a basic and diluted loss per share of HKD (78.17), compared to HKD (15.84) in the previous year, reflecting a worsening of financial performance[173]. Employee and Operational Metrics - The group has 619 employees as of March 31, 2023, down from 786 employees as of September 30, 2022, with total employee costs amounting to approximately HKD 72.6 million for the period, a decrease from HKD 91.5 million in the previous period[127]. - The total employee costs for the period include director remuneration and mandatory provident fund contributions[127]. Strategic Initiatives and Future Plans - The company plans to explore technological innovations and product upgrades in its staking business, aiming to enhance operational efficiency and stability through blockchain technology and smart contracts[119]. - The group is focused on applying blockchain technology to enhance the security and reliability of its products, particularly in multi-party computation (MPC) wallets and staking business[130]. - The company is assessing its future business strategies and plans in light of the new Virtual Asset Service Provider (VASP) licensing regime expected to take effect in June 2023[132]. Financing and Cash Flow - The net cash used in operating activities for the period was approximately HKD 247.7 million, down from approximately HKD 273.8 million in the previous period, primarily due to the impact of the FTX incident[78]. - The company reported a net cash inflow from financing activities of approximately HKD 62.7 million, compared to a net cash outflow of approximately HKD 170.8 million in the previous period[80]. - The group has received shareholder financing of up to USD 14 million to address liabilities arising from the FTX incident[29]. Compliance and Governance - The group has adopted a set of guidelines for directors' securities trading, ensuring compliance with the standards set forth in the listing rules[133]. - The group applied revised Hong Kong Financial Reporting Standards effective from January 1, 2023, impacting the preparation of interim financial statements[186].
新火科技控股(01611) - 2023 - 中期业绩