Financial Performance - The group's revenue for the six months ended December 31, 2023, was SGD 15.1 million, a decrease of 36.3% compared to the same period last year[8]. - Gross profit for the reporting period was SGD 3.7 million, down 44.4% year-on-year[9]. - The loss for the period was SGD 0.2 million, a reduction of 107.6% compared to the previous year, primarily due to decreased revenue from online platform management services and creative and technical services[10]. - The gross margin decreased from approximately 28% to 25%[10]. - The total comprehensive loss for the period was SGD 0.271 million, compared to a comprehensive income of SGD 0.733 million in the previous year[12]. - The company reported a loss of SGD (399,000) for the six months ended December 31, 2023, compared to a profit of SGD 1,608,000 in the same period last year[25]. - The total comprehensive income for the period was SGD 507,000, down from SGD 733,000 in the previous period[25]. - The group's profit decreased by 107.6% to a loss of approximately SGD 0.2 million for the reporting period, compared to a profit of SGD 2.1 million for the six months ended December 31, 2022, primarily due to challenges in the macroeconomic environment in China and a decline in profits from creative and technical services[109]. Revenue Breakdown - The company's revenue for the six months ended December 31, 2023, was SGD 15,128,000, a decrease of 36.4% compared to SGD 23,740,000 for the same period in 2022[26]. - Search engine marketing services generated SGD 10,000,000, up from SGD 9,219,000, reflecting a growth of 8.5%[26]. - Revenue from social media marketing services rose to SGD 790,000, a 25.4% increase from SGD 630,000 in the prior year[30]. - Revenue from online platform management services decreased significantly to SGD 3,144,000 from SGD 11,537,000, reflecting a decline of 72.7%[42]. - The subsidiary Majestic State International Limited (MSIL) experienced a significant revenue drop of approximately 73%, from SGD 11.5 million to SGD 3.1 million, due to challenging economic conditions in China[97]. - Revenue from search engine marketing services increased by approximately 8.5% to SGD 10 million, while creative and technical services revenue decreased by about 49.3% to SGD 1.2 million[99]. Assets and Liabilities - Non-current assets totaled SGD 18.1 million as of December 31, 2023, compared to SGD 17.9 million as of June 30, 2023[14]. - Current assets increased to SGD 45.4 million from SGD 44.4 million[14]. - Current liabilities rose to SGD 23.6 million from SGD 22.1 million, resulting in a net current asset value of SGD 21.7 million[14]. - The total equity attributable to the owners of the company was SGD 31.97 million, down from SGD 32.46 million[14]. - The total cash and bank balances decreased to SGD 13,883,000 as of December 31, 2023, compared to SGD 14,739,000 as of June 30, 2023[78]. - Trade receivables as of December 31, 2023, were SGD 19,635,000, down from SGD 20,131,000 as of June 30, 2023, reflecting a decrease of approximately 2.5%[73]. - Trade payables increased to SGD 13,129,000 as of December 31, 2023, from SGD 12,050,000 as of June 30, 2023, representing an increase of approximately 8.9%[79]. - Contract liabilities rose to SGD 4,207,000 as of December 31, 2023, compared to SGD 3,903,000 as of June 30, 2023, indicating an increase of approximately 7.8%[81]. Cash Flow and Expenses - The operating cash flow before changes in working capital was SGD 582,000, significantly lower than SGD 4,534,000 in the previous period[18]. - The net cash used in operating activities was SGD (57,000), compared to a net cash inflow of SGD 3,993,000 in the prior period[19]. - General and administrative expenses decreased from approximately SGD 4.2 million to SGD 3.5 million, mainly due to a reduction in employee costs at MSIL[103]. - The company incurred general and administrative expenses of SGD 3,477,000, compared to SGD 4,213,000 in the previous year, indicating a reduction of 17.5%[42]. - Financial costs fell by approximately 46.2% from SGD 130,000 to SGD 70,000, primarily due to reduced interest on lease liabilities[105]. Shareholder Information - The company declared no interim dividend for the six months ended December 31, 2023, consistent with the previous year[10]. - The company did not declare an interim dividend for the six months ended December 31, 2023, compared to no dividend declared in the same period of 2022[65]. - As of December 31, 2023, the company has a total of 800,000,000 shares issued, with significant holdings by directors and executives[130]. - Ms. Zhang holds 412,615,000 shares, representing 51.58% of the issued share capital, while Mr. Zhang holds 408,000,000 shares, representing 51.00%[130]. - Mr. Kevin Yang holds 40,050,000 shares, which is 5.01% of the total issued shares[132]. Governance and Compliance - The company has adopted the corporate governance code as per the listing rules, ensuring high standards of governance[137]. - The audit committee, consisting of independent non-executive directors, oversees the financial reporting and risk management systems[141]. - The company confirms compliance with the standard code for securities transactions by all directors during the reporting period[140]. - The board believes that the current governance structure provides adequate checks and balances for decision-making[139]. - The group has adopted applicable accounting policies and standards for the unaudited condensed consolidated financial statements for the six months ended December 31, 2023[144]. Future Outlook - The company plans to continue focusing on online marketing services and e-commerce platform operations as part of its growth strategy[21]. - The company continues to explore opportunities for market expansion and new product development in the online marketing sector[39]. - The net proceeds from the IPO, amounting to approximately HKD 92 million, are planned to be utilized primarily for strengthening technical infrastructure and expanding business operations in Singapore, Malaysia, and China[123]. - The company continues to focus on emerging advertising platforms and invest in leading technologies to enhance performance and productivity[92].
秀商时代控股(01849) - 2024 - 中期财报