Financial Performance - For the six months ended December 31, 2023, the company reported revenue of HKD 18,844,000, an increase of 25.0% compared to HKD 15,025,000 for the same period in 2022[3] - The gross profit for the six months was HKD 3,121,000, reflecting a slight increase of 2.7% from HKD 3,039,000 in the previous year[3] - The company incurred a loss before tax of HKD 2,239,000 for the six months, compared to a profit of HKD 15,769,000 in the same period last year, indicating a significant decline[3] - The net loss attributable to equity holders for the six months was HKD 2,876,000, compared to a profit of HKD 15,408,000 in the prior year[3] - The company reported a basic loss per share of HKD 0.29 for the three months ended December 31, 2023, compared to earnings of HKD 6.07 per share in the same period last year[5] - The company reported a net loss of HKD 2,876,000 for the six months ended December 31, 2023, compared to a profit of HKD 15,408,000 in the same period last year, representing a significant decline[9] - The company’s total comprehensive income for the period was a loss of HKD 4,151,000, compared to a gain of HKD 13,692,000 in the same period last year[9] - The company reported a loss attributable to equity holders of HKD 2,900,000, compared to a profit of HKD 15,400,000 in the previous year[50] Assets and Liabilities - Total assets as of December 31, 2023, amounted to HKD 36,702,000, up from HKD 27,045,000 as of June 30, 2023[6] - The company's current liabilities increased to HKD 228,739,000 from HKD 213,236,000, indicating a rise in financial obligations[6] - The net liabilities of the company stood at HKD 182,509,000 as of December 31, 2023, compared to HKD 179,754,000 at the end of June 2023[8] - The total liabilities as of December 31, 2023, were HKD 228,739,000, with classified liabilities of HKD 46,296,000[17] Cash Flow and Liquidity - The company’s cash and bank balances increased to HKD 8,505,000 from HKD 1,776,000, indicating improved liquidity[6] - Total cash and cash equivalents increased to HKD 8,505,000 as of December 31, 2023, up from HKD 7,283,000 at the end of the previous year, indicating a growth of approximately 16.7%[11] - Operating cash flow for the period was a net outflow of HKD 1,317,000, a decrease from a net inflow of HKD 4,720,000 in the prior year, reflecting a change of approximately 128%[11] - The company’s cash flow from financing activities generated a net inflow of HKD 8,271,000, compared to an outflow of HKD 290,000 in the previous year[11] Revenue Segments - Revenue from the manufacturing and distribution segment amounted to HKD 18,844,000, with a segment loss of HKD 2,046,000 for the period[15] - For the six months ended December 31, 2023, the total revenue from the "Internet+" services (supply chain) was HKD 18,844,000, an increase of 74.2% compared to HKD 10,825,000 in the same period of 2022[21] - The revenue from manufacturing and distribution of personal protective equipment was HKD 4,200,000, contributing to a total revenue of HKD 18,844,000 for the period[21] - The "Internet+" service segment generated revenue of HKD 18,800,000, a 74% increase compared to the previous year[51] Financing and Capital Structure - The company incurred financing costs of HKD 1,889,000 during the reporting period, contributing to the overall loss[15] - The company has convertible bonds with a principal amount of HKD 89,625,000, with a conversion price adjusted to HKD 0.598 per share after a share split[40] - The company issued convertible bonds with a principal amount of HKD 50,000,000, maturing on February 20, 2023, with an annual interest rate of 7%[45] - The adjusted conversion price for the convertible bonds is HKD 0.221 per share, allowing for the conversion into a maximum of 405,542,986 shares[44] - As of December 31, 2023, the total outstanding balance of the convertible bonds was HKD 105,747,000, which includes the principal and accrued interest[44] - The company has a total issued and paid-up capital of HKD 57,404,000 as of December 31, 2023[47] - The company has not issued any dividends, maintaining an expected dividend yield of 0%[46] Corporate Governance - The company has adopted and complied with the corporate governance code as per GEM listing rules, with some deviations noted[96] - The roles of Chairman and CEO are held by the same executive director, which the board believes benefits the company's business outlook[97] - The company confirmed compliance with the trading code of conduct for directors throughout the review period[98] - The company had only one independent non-executive director after the resignation of Dr. Liu Da Bei on August 3, 2023, which is below the minimum requirement of three as per GEM Listing Rule 5.05(1)[99] - The company appointed Mr. Xu Dong'an as an independent non-executive director on August 15, 2023, to comply with GEM Listing Rule 5.05A[99] - The company appointed another independent non-executive director, Mr. Xiang Bilun, on September 15, 2023, to meet the minimum requirement of three independent non-executive directors[99] - The Audit Committee consists of three independent non-executive directors, including Mr. Liu Fei as the chairman, Mr. Xu Dong'an, and Mr. Xiang Bilun[101] Staff and Employment - As of December 31, 2023, the company employed 18 staff members in Hong Kong and China, down from 19 as of June 30, 2023[70] Legal and Regulatory Matters - The company is currently negotiating with Creative Big Limited regarding a winding-up petition involving a claim of HKD 53,106,849 for the repayment of convertible bonds[49] - The hearing for the winding-up petition has been postponed to April 3, 2024, with no winding-up order issued as of the report date[72] - The company is seeking professional advice to assess the potential impact of the petition on its operations and financial condition[73] - There are no other pending winding-up petitions against the company as of the report date[73]
国药科技股份(08156) - 2024 - 中期财报