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CRUSHMETRIC Group Ld - Interim results to 30 June 2024


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Crushmetric Group Limited · CUSH

30/09/2024 09:40

CRUSHMETRIC Group Ld - Interim results to 30 June 2024
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

ONG Ban Poh Michael - Chief Executive Officer

Lilian Lo - Acting Chief Financial Officer

 

Tel: +852 2110 4221

 

Aquis Growth Market Corporate Adviser

PETERHOUSE CAPITAL LIMITED

 

Tel: +44 (0)20 7469 0930 

 

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

As at 30 June 2024

 

Unaudited

As at 30 June 2023

 

 

Audited

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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