Crushmetric Group Ld: Interim results to 30 June 2024
30/09/2024 09:40
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RNS Number : 2291G CRUSHMETRIC Group Limited 30 September 2024
30 September 2024
CRUSHMETRIC Group Limited
("CRUSHMETRIC", the "Group" or the "Company")
Interim results for the six months ended 30 June 2024
Chief Executive Officer's Statement
CRUSHMETRIC Group Limited (AQSE: CUSH), the AQUIS Growth Market Stock Exchange
quoted consumer design and production group announces the results of the
Company and its subsidiaries for the six-month period ended 30 June 2024.
The nature of the Company's operations and its principal activities are to act
as the holding company of a group engaged in (i) design and production that
integrates shape changing technology ("CRUSH") into a catalogue of products
that is designed and invented by the artist and co-founder of CRUSHMETRIC
Limited, Noah Deledda, and his team. This technology is built on his own
series of dented aluminium can sculptures and (ii) the sale and distribution
of the CRUSHMETRIC products through online and offline channels worldwide.
This announcement contains inside information as defined in Article 7 of the
Market Abuse Regulation No. 596/2014 and is disclosed in accordance with the
Company's obligations under Article 17 of those Regulations.
Financial highlights
· Revenue for the six months ended 30 June 2024: HK$2,942,844 (30 June
2023: HK$1,040,509)
· Gross profit for the six months ended 30 June 2024: HK$2,151,571 (30 June
2023: HK$728,143)
· Loss for the six months ended 30 June 2024: HK$3,701,514 (30 June 2023:
HK$3,813,095)
· The basic and diluted loss per share for the six months ended 30 June 2024:
HK$0.01 (30 June 2023: HK$0.02)
· The Group's cash position as at 30 June 2024: HK$174,535 (30 June 2023:
HK$1,450,559)
Review of significant activities
(a) Private Placings
In April 2024, the Group raised approximately HK$546,000 (equivalent to
approximately USD70,000 or GBP53,823) through private placings. The proceeds
of these subscriptions have been used for general working capital purposes.
(b) Convertible Bond
On 1 August 2024, the Company entered into an extension agreement for the
Convertible Bond ("CB"). The maturity date was extended to 19 January 2026 and
the coupon rate adjusted to six percent (6%) per annum in terms of cash plus
three percent (3%) per annum in terms of the Company's shares for the period
from 20th July 2024 to 19th January 2026. In addition, the principal amount of
the CB will be returned to the Investor by instalments from 19th January 2025
to 19th January 2026. All other terms remain unchanged.
Financial review
(i) Income statement items
The Group's revenue for the six months ended 30 June 2024 amounted to
HK$2,942,844, an increase of HK$1,902,335 or 183% as compared to the six
months ended 30 June 2023. It mainly included sale of
CRUSHMETRIC products. The Group's gross profits and gross profit margin for
the six months ended 30 June 2024 amounted to HK$2,151,571 and 73.11% (30 June
2022: HK$728,143 and 69.98%) respectively.
The Group's distribution costs for the six months ended 30 June 2024 amounted
to HK$2,092,950, an increase of HK$1,981,398 or 1776% as compared to the same
period in 2023. The amount mainly consists of around $1.57 million for events
and advertisings to promote the Company's products and approximately
$0.5million paid as commission. The Group's administrative expenses for the
six months ended 30 June 2024 amounted to HK$3,323,278, a decrease of
HK$901,024 or 21.33% as compared to the six months ended 30 June 2023.
The Finance Costs for the six months ended 30 June 2024 amounted to
HK$666,378, this was related to the interest expenses for the convertible
bond.
The unaudited net loss for the period ended 30 June 2024 shows a decrease of
HK$111,581 and 2.93% compared to the same period in 2023. This was
attributable to the increase of sale and increase of distribution costs by the
Group during the period.
(ii) Balance sheet items
The Group's tangible fixed assets mainly comprised of office equipment,
increased in amount by HK$73,774 as at 30 June 2024, compared to the same
period in 2023, mainly due to the acquisition of moulds in the December 2023.
The Group's inventories as at 30 June 2024 amounted to HK$454,849 with an
increase of HK$137,425 over the balance as at 30 June 2023.
The Group's other receivables and prepayments as at 30 June 2023 decreased by
HK$66,100 or 5.52% compared to the same period in 2023.
The Group's trade payables as at 30 June 2024 amounted to HK$3,199,388 with a
decrease of HK$303,267 over the balance as at 30 June 2023.
The Group's cash and cash equivalents decreased by HK$1,276,024 as at 30 June
2024 compared to 30 June 2023.
The Directors do not recommend the payment of a dividend in respect of the
period.
The interim results have not been reviewed by the Company's auditor.
Outlook
The Group's revenue in the first half year of 2024 increased as compared to
the same period in 2023 as the Group has spent more resources in social media
and marketing partners since the last quarter of 2023. Sales slowed down in
the second quarter and we expect sales will pick up in the second half of the
year. We will continue to promote the CRUSHMETRIC series of products. We
believe that Tumbler is the Company's biggest and key product which will give
the Company better margins.
We will continue to launch different popular colour variations of our
SwitchPens and Tumblers to boost sales in the coming year. New design of our
CRUSHMETRIC Tumblers will be launched shortly, where we have been
collaborating with toy designers. We have also changed the sales strategy so
that we will do more B2B and wholesale distribution, which the Board believes
will bring more sales revenue and reduce the marketing and logistic costs.
The Board will continue to take all reasonable efforts to ensure that
sufficient working capital is maintained. The Board's objective as always is
to improve the business of the Group, minimise costs and generate more sales
income through online products and at all times to protect and safeguard the
best interests of the shareholders.
On behalf of the Board of Directors, I would like to thank our management and
staff for the great loyalty and dedication that they continue to show through
these delicate times. I would also like to extend our utmost appreciation to
all our partners, shareholders, customers, business associates and suppliers,
for their continued support.
Ivor Colin Shrago
Chairman
For further information, please contact:-
CRUSHMETRIC Tel: +852 2110 4221
ONG Ban Poh Michael - Chief Executive Officer
Lilian Lo - Acting Chief Financial Officer
Aquis Growth Market Corporate Adviser Tel: +44 (0)20 7469 0930
PETERHOUSE CAPITAL LIMITED
CRUSHMETRIC Group Limited
Consolidated Statement of Comprehensive Income
For the six months ended 30 June 2024
The Group
Unaudited Unaudited Audited
6 months ended 30 June 2024 6 months ended 30 June 2023 Year ended 31 December 2023
HK$ HK$ HK$
From continuing operations
Revenue 2,942,844 1,040,509 6,884,086
Cost of sales (791,273) (312,366) (1,887,742)
Gross profit 2,151,571 728,143 4,996,344
Other revenue 42,336 679,246 46,191
Distribution costs (2,092,950) (111,552) (3,768,216)
Administrative expenses (3,323,278) (4,224,302) (8,040,362)
Foreign exchange gains/(losses), net (58,045) (386,192) (723,045)
Operating loss (3,280,366) (3,314,657) (7,489,088)
Impairment loss for goodwill (58,798,718)
Impairment loss on trade receivable 244,880 - (171,135)
Profit on disposal of subsidiaries 242,357
Finance costs (666,378) (502,141) (1,642,123)
Interest income 322 3,703 4,681
Loss before taxation (3,701,542) (3,813,095) (67,854,026)
Taxation 28 - (1,709)
Loss for the period/year (3,701,514) (3,813,095) (67,855,735)
Other comprehensive income
Exchange differences arising from translation 347,366 485,461 278,675
Total comprehensive result for the period/year (3,354,148) (3,327,634)
(67,577,060)
Loss for the period/year attributable to:
Equity holders of the parent entity (3,580,551) (3,913,831) (66,925,167)
Non-controlling interests (120,963) 100,736 (930,568)
(3,701,514) (3,813,095) (67,855,735)
Total comprehensive loss for the period/year attributable to:
Equity holders of the parent entity (3,233,185) (3,428,370) (66,646,492)
Non-controlling interests (120,963) 100,736 (930,568)
(3,354,148) (3,327,634) (67,577,060)
Loss per share - from continuing operations (HK$)
Basic and diluted (0.01) (0.02) (0.28)
Loss per share - from continuing operations
The calculation of basic loss per share is based on the consolidated loss
attributable to the equity holders of the parent entity of HK$3,580,551 (For
the six months ended 30 June 2023: Loss of HK$3,913,831; For the 12 months
ended 31 December 2023: Loss of HK$66,925,167) and the weighted average number
of ordinary shares of 240,006,424 (For the six months ended 30 June 2023
weighted average number of ordinary shares of 239,933,283; For the 12 months
ended 31 December 2023: 239,933,283) in issue during the period.
CRUSHMETRIC Group Limited
Consolidated Statement of Financial Position
As at 30 June 2024
Unaudited Unaudited Audited
As at 30 June 2024 As at 30 June 2023 As at 31
December
2023
HK$ HK$ HK$
Assets
Non-current assets
Fixed assets 259,165 185,391 300,001
Other intangible assets - - -
Right-of-use assets 492,649 199,389 718,150
Goodwill 235,194,874 293,993,592 235,194,874
235,946,688 294,378,372 236,213,025
Current assets
Inventories 454,849 317,424 402,018
Trade receivables 218,745 904,977 9,411
Other receivables and prepayments 1,131,184 1,197,284 1,116,808
Cash and cash equivalents 174,535 1,450,559 521,605
1,979,313 3,870,244 2,049,842
Total assets 237,926,001 298,248,616 238,262,867
Equity and liabilities
Equity
Share capital 1,873,593 1,870,234 1,870,234
Share premium 392,993,101 392,450,040 392,450,040
Reserve (211,448,686) (144,997,379) (208,215,501)
Equity attributable to the parent entity 183,418,008 249,322,895 186,104,773
Non-controlling interest (1,592,007) (440,910) (1,471,970)
Total equity 181,826,001 248,881,985 184,632,803
Liabilities
Current liabilities
Trade payables 3,199,388 3,502,655 3,249,124
Other payables and accruals 33,882,872 28,174,956 30,883,251
Taxation payable 59,302 57,594 59,302
Amount due to directors 3,095,274 2,927,984 3,076,886
Lease liabilities 227,653 204,648 377,946
Borrowings 15,352,143 14,498,794 15,622,396
55,816,632 49,366,631 53,268,905
Non-Current liabilities
Lease liabilities 283,368 - 361,159
Total liabilities 56,100,000 49,366,631 53,630,064
Total equity and liabilities 237,926,001 298,248,616 238,262,867
The Group's consolidated financial statements for the six months ended 30 June
2023 and 2024 disclosed above have neither been audited nor reviewed by the
Company's auditors.
The same accounting policies and methods of computation as included in the
Group's consolidated financial statements for the year ended 31 December 2023
have been adopted in the preparation of the Group's unaudited consolidated
financial statements for the six months ended 30 June 2024.
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