Financial Performance - For the six months ended October 31, 2023, the revenue was approximately HKD 226.4 million, an increase of 103.8% compared to HKD 111.1 million in the same period of 2022[7]. - The profit for the same period was approximately HKD 1.8 million, a decrease of 67.3% from HKD 5.5 million in 2022[7]. - Basic and diluted earnings per share for the six months ended October 31, 2023, were HKD 0.0181, down from HKD 0.0978 in 2022[7]. - The company reported a net profit of HKD 2,195,000 for the six months ended October 31, 2023, compared to a profit of HKD 5,457,000 for the same period in 2022, indicating a decrease of approximately 59.8%[12]. - The company reported a total comprehensive income of HKD 1,786,000 for the six months ended October 31, 2023, compared to HKD 5,457,000 for the same period in 2022, showing a decline of approximately 67.3%[12]. - Revenue for the six months ended October 31, 2023, was HKD 226,352,000, a significant increase of 103% compared to HKD 111,136,000 for the same period in 2022[20]. - Revenue from design, supply, and installation services was HKD 219,487,000, up from HKD 100,706,000, representing a growth of 118%[20]. - Revenue from external customers in Hong Kong was HKD 192,197,000, compared to HKD 111,136,000 in 2022, indicating a growth of 73%[24]. Assets and Liabilities - Non-current assets as of October 31, 2023, totaled HKD 28.2 million, compared to HKD 27.0 million as of April 30, 2023[9]. - Current assets increased to HKD 359.5 million as of October 31, 2023, from HKD 231.8 million as of April 30, 2023[9]. - The total liabilities decreased slightly to HKD 111.9 million as of October 31, 2023, from HKD 113.2 million[9]. - The net current assets increased to HKD 247.6 million from HKD 118.6 million[9]. - As of October 31, 2023, the total equity amounted to HKD 273,478,000, an increase from HKD 143,452,000 as of April 30, 2023, representing an increase of approximately 90.5%[10]. - The total assets increased to HKD 274,549,000 as of October 31, 2023, compared to HKD 144,114,000 as of April 30, 2023, reflecting an increase of about 90.5%[10]. Cash Flow and Financing - The net cash used in operating activities for the six months ended October 31, 2023, was HKD (135,057,000), compared to HKD (46,132,000) for the same period in 2022, indicating a significant increase in cash outflow[14]. - The company raised HKD 130,560,000 through a rights issue during the period, contributing to the increase in total equity[14]. - The cash and cash equivalents decreased to HKD 13,968,000 as of October 31, 2023, down from HKD 22,556,000 at the beginning of the period, representing a decrease of approximately 38.2%[14]. - The company’s financing activities generated a net cash inflow of HKD 121,558,000 for the six months ended October 31, 2023, compared to HKD 9,630,000 for the same period in 2022, indicating a significant increase in financing activities[14]. - The net proceeds from the rights issue completed on June 28, 2023, amounted to approximately HKD 128.2 million[63]. - As of October 31, 2023, approximately HKD 115.3 million of the net proceeds had been utilized, leaving about HKD 12.9 million unutilized[63]. - The allocation of the net proceeds includes HKD 109.0 million (85.0%) for fire safety system projects and HKD 19.2 million (15.0%) for general working capital[63]. Expenses - The company reported a decrease in administrative expenses to HKD 11.7 million from HKD 9.9 million[8]. - Administrative expenses increased by approximately HKD 1.8 million or 18.2% to HKD 11.7 million for the six months ended October 31, 2023, mainly due to higher legal and professional fees[49]. - Financial costs rose approximately 567% to HKD 2.0 million for the six months ended October 31, 2023, compared to HKD 0.3 million in the same period of 2022, attributed to increased bank borrowings[52]. - Cost of sales increased by approximately 119.0% to HKD 213.5 million for the six months ended October 31, 2023, compared to HKD 97.5 million for the same period in 2022[46]. - Gross profit decreased by approximately HKD 0.8 million or 5.8% to HKD 12.9 million for the six months ended October 31, 2023, with a gross margin of 5.7% compared to 12.3% in 2022[47]. - Other income for the six months ended October 31, 2023, was approximately HKD 0.5 million, down from HKD 2.2 million in 2022, primarily due to a one-time government grant received in 2022[48]. Dividends and Shareholder Information - The company has resolved not to declare an interim dividend for the six months ended October 31, 2023[7]. - The group did not declare any interim dividends for the six months ended October 31, 2023, consistent with the previous year[29]. - The company did not declare or recommend any dividends as of the reporting date[30]. - As of October 31, 2023, major shareholders include Li Yintao with 20,350,000 shares (14.13%), Xie Wuchao with 13,000,000 shares (9.03%), and Yan Wunu with 12,000,000 shares (8.33%) among others[82]. Employment and Corporate Governance - The total employee cost for the group was approximately HKD 20.9 million for the period, compared to HKD 18.1 million in 2022[73]. - As of October 31, 2023, the group employed 60 staff members, a decrease from 62 in 2022[73]. - The company has established a remuneration committee to review its remuneration policies and the overall compensation structure for directors and senior management[73]. - The company has complied with the corporate governance code as per the listing rules for the six months ending October 31, 2023[90]. - The audit committee, consisting of three independent non-executive directors, has reviewed the unaudited condensed consolidated results for the six months ending October 31, 2023[91]. Strategic Plans - The company aims to explore suitable business opportunities to expand its service capabilities and is committed to undertaking new installation and maintenance projects[38]. - The company plans to seek strategic and financial partners to further expand and develop its business into other overseas markets[38]. Miscellaneous - The group has no major investments as of October 31, 2023[68]. - There were no significant acquisitions or disposals of subsidiaries, associates, or joint ventures during the six-month period ended October 31, 2023[65]. - The group does not have a foreign currency hedging policy due to minimal foreign exchange fluctuation risk[70]. - The company has not engaged in any significant transactions or arrangements involving directors or their associates that would affect their interests in the company's shares as of October 31, 2023[86]. - No stock options have been granted, exercised, canceled, or expired under the stock option plan as of October 31, 2023[88]. - The company has not purchased, sold, or redeemed any of its listed securities during the six months ending October 31, 2023[87]. - There are no reported interests or positions held by directors or major shareholders in any competing businesses[85]. - The mid-term report for the six months ending October 31, 2023, will be published on the company's and the stock exchange's websites[92].
鸿盛昌资源(01850) - 2024 - 中期财报