HONG KONG, Oct. 18, 2024 (GLOBE NEWSWIRE) -- Powell Max Limited (Nasdaq: PMAX) (the "Company” or "Powell Max”), a financial communications services provider headquartered in Hong Kong, today announced its unaudited financial results for the six months ended June 30, 2024.
Overview:
●Revenue was HK$22.7 million (US$2.9 million) for the six months ended June 30, 2024, representing a decrease of 11.0% from the same period in 2023. ●Net income was HK$0.8 million (US$98,456) for the six months ended June 30, 2024, as compared with HK$3.6 million for the same period in 2023. Six Month Financial Results Ended June 30, 2024
Revenue. Revenue decreased by 11.0% from HK$25.2 million for the six months ended June 30, 2023 to HK$22.7 million (US$2.9 million) for the six months ended June 30, 2024, which was mainly due to a reduction in capital market activities in Hong Kong, which in turn has resulted in the postponement of many public offerings and other transactions of our customers. As a result of which, the demands for our financial communications services have reduced.
General and administrative expenses. General and administrative expenses increased by 12.7% from HK$5.4 million for the six months ended June 30, 2023 to HK$6.2 million (US$0.8 million) for the six months ended June 30, 2024, which was mainly due to an increase in the number of staff in our production team, an increase in the professional fee and an increase in expenses on expected credit loss.
Selling and distribution expenses. Selling and distribution expenses increased by 38.5% from HK$1.8 million for the six months ended June 30, 2023 to HK$3.0 million (US$0.4 million) for the six months ended June 30, 2024, which was mainly due to an increase in the number of staff in our sales team and an increase in other expenses on business development and marketing. In light of the reduction of capital market activities in Hong Kong, we have engaged extra resources on sales and marketing with the view to maintain our market presence.
Net income. Net income decreased by HK$2.8 million to HK$0.8 million (US$98,456), which was mainly due to the decrease in revenue and increase in general and administrative expenses, and selling and distribution expenses.
Basic and diluted EPS. Basic EPS was HK$0.062 (US$0.008) per ordinary share for the six months ended June 30, 2024, as compared to HK$0.285 per ordinary share for the six months ended June 30, 2023. Diluted EPS was the same as basic EPS for each period.
About Powell Max Limited
Powell Max Limited is a financial communications services provider headquartered in Hong Kong. The Company engages in the provision of financial communications services that support capital market compliance and transaction needs for corporate clients and their advisors in Hong Kong. Its financial communications services cover a full range of financial printing, corporate reporting, communications and language support services from inception to completion, including typesetting, proofreading, translation, design, printing, electronic reporting, newspaper placement and distribution. The Company's clients consist of domestic and international companies listed in Hong Kong, together with companies who are seeking to list in Hong Kong, as well as their advisors.
Exchange Rate Information
The Company is a holding company with operations conducted in Hong Kong through JAN Financial Press Limited ("JAN Financial”), its sole operating subsidiary. JAN Financial's reporting currency is Hong Kong dollars. The Hong Kong dollar is pegged to the U.S. dollar at a range of HK$7.75 to HK$7.85 to US$1. Unless otherwise noted, all translations from Hong Kong dollars to United States Dollars in this press release were calculated the noon middle rate of US$1 - HK$7.8083, as published in the H.10 statistical release of the Board of Governors of the Federal Reserve System on June 28, 2024, respectively. No representation is made that the HK$ amount represents or could have been, or could be, converted, realized or settled into US$ at that rate, or at any other rate.
Forward-Looking Statements
This press release contains certain forward-looking statements. Words such as "will,” future,” "expects,” "believes,” and "intends,” or similar expressions, are intended to identify forward-looking statements. Forward-looking statements are subject to inherent uncertainties in predicting future results and conditions. The Company undertakes no obligation to publicly update or revise any forward-looking statements, whether as a result of new information, future events or otherwise, except as may be required by law.
Rounding Amounts and Percentages
Certain amounts and percentages included in this press release have been rounded for ease of presentation. Percentage figures included in this press release have not in all cases been calculated on the basis of such rounded figures, but on the basis of such amounts prior to rounding.
For investor and media inquiries, please contact:
Company Info:
Powell Max Limited
Investor Relations
ir@janfp.com
(852) 2158 2888
POWELL MAX LIMITED AND ITS SUBSIDIARY
UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF FINANCIAL POSITION
As of
December 31,
2023 As of
June 30,
2024
(unaudited) HK$ HK$ US$ ASSETS Non-current assets Property, plant and equipment 5,819,230 3,777,893 483,830 Total non-current assets 5,819,230 3,777,893 483,830 Current assets Trade and other receivables 12,547,210 16,040,646 2,054,307 Deferred IPO expense1 962,822 6,734,370 862,464 Cash and bank balances 3,660,213 2,075,667 265,828 Total current assets 17,170,245 24,850,683 3,182,599 Total assets 22,989,475 28,628,576 3,666,429 LIABILITIES AND EQUITY Current liabilities Trade and other payables 27,376,032 35,332,530 4,524,996 Contract liabilities 1,524,761 612,761 78,476 Bank borrowings 4,767,829 4,311,625 552,185 Lease liabilities 3,361,230 2,765,854 354,220 Total current liabilities 37,029,852 43,022,770 5,509,877 Non-current liabilities Trade and other payables 150,000 150,000 19,210 Lease liabilities 1,122,591 - - Total non-current liabilities 1,272,591 150,000 19,210 Total liabilities 38,302,443 43,172,770 5,529,087 Equity attributable to owners of the Company Share capital 9,750 9,750 1,249 Accumulated losses (15,680,728) (14,899,592) (1,908,174)Reserve 358,010 345,648 44,267 Total equity (15,312,968) (14,544,194) (1,862,658) Total liabilities and equity 22,989,475 28,628,576 3,666,429
1Prior to our initial public offering, we had recorded certain legal, accounting and other third party fees that are directly associated with our initial public offering as deferred IPO expense. Nasdaq Capital Market and would be charged against the gross proceeds of the offering as a reduction of share capital..
As at June 30, 2024, the Company has not completed its IPO on Nasdaq Capital Market.
POWELL MAX LIMITED AND ITS SUBSIDIARY
UNAUDITED CONDENSED
CONSOLIDATED STATEMENTS OF PROFIT OR LOSS
AND OTHER COMPREHENSIVE INCOME
Six months ended June 30, 2023
(unaudited) 2024
(unaudited) HK$ HK$ US$ Revenue 25,236,693 22,732,219 2,911,289 Cost of sales (13,985,762) (12,549,020) (1,607,139)Gross profit 11,250,931 10,183,199 1,304,150 Other income 2,929 26,247 3,361 General and administrative expenses (5,438,461) (6,228,824) (797,718)Selling and distribution expenses (1,848,224) (3,005,905) (384,963) Profit from operations 3,967,175 974,717 124,830 Finance costs (300,428) (193,581) (24,791) Profit before income tax 3,666,747 781,136 100,039 Income tax expense - - - Profit for the period 3,666,747 781,136 100,039 Other comprehensive income: Exchange differences on translation of foreign operations (98,157) (12,362) (1,583)Total comprehensive income for the period 3,568,590 768,774 98,456 Earnings per share attributable to owners of the Company Basic and diluted 0.285 0.062 0.008 Weighted average number of ordinary shares Basic and diluted 12,500,000 12,500,000 12,500,000