Powell Max Limited Announces First Half 2024 Unaudited Financial Results
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
As of June 30,
December 31, 2024
2023 (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
expense(1) 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
============= =========== ==========
(1) Prior 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 2024
(unaudited) (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
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