Financial Performance - The group's revenue for the six months ending December 31, 2024, increased by approximately 105% to about HKD 21,000,000, while the loss recorded was approximately HKD 31,000,000, compared to a loss of HKD 16,000,000 in the same period last year[6]. - The company reported revenue of HKD 21,135,000 for the six months ended December 31, 2024, representing a 105.5% increase compared to HKD 10,324,000 in the same period of 2023[54]. - Gross profit for the same period was HKD 10,088,000, up from HKD 5,698,000, indicating an increase of 77.5%[54]. - The total comprehensive loss for the period was HKD 29,696,000, compared to a loss of HKD 17,087,000 in the prior year, marking an increase of 73.5%[55]. - The net loss for the six months ended December 31, 2024, was approximately HKD 31,196,000, indicating ongoing financial challenges[61]. - The group reported a total segment loss of HKD 23,972,000 for the six months ended December 31, 2024, compared to a loss of HKD 8,597,000 for the same period in 2023, indicating a deterioration in performance[87]. - The group’s total comprehensive loss before tax for the six months ended December 31, 2024, was HKD 31,029,000, compared to a loss of HKD 15,638,000 in the same period of 2023, indicating a worsening financial position[87]. - The company incurred an operating loss of HKD 27,752,000, compared to a loss of HKD 12,860,000 in the previous year, reflecting a deterioration in operational performance[54]. - The basic loss per share was HKD 2.16, compared to HKD 0.96 in the same period last year, indicating a significant increase in losses per share[55]. - The group reported a loss of HKD 31,288,000 for the six months ended December 31, 2024, compared to a loss of HKD 13,480,000 in the same period of 2023, indicating a significant increase in losses[94]. Revenue Sources - The total sales for the six months ending December 31, 2024, were approximately HKD 18,000,000[12]. - Rental income from investment properties for the six months ending December 31, 2024, was approximately HKD 3,000,000, down from HKD 4,000,000 in the previous year[7]. - Revenue from the property investment segment was HKD 2,894,000 for the six months ended December 31, 2024, down from HKD 4,341,000 in the same period of 2023, a decline of 33.4%[88]. - Research and development segment revenue was HKD 18,241,000 for the six months ended December 31, 2024, compared to HKD 5,983,000 in the same period of 2023, showing an increase of 203.5%[85]. Investments and Future Plans - The group has invested approximately HKD 160,000,000 in collaboration with the Finnish National Technology Innovation Agency and plans to make significant further investments in the coming years[9]. - The technology department expects to generate revenue of USD 29,000,000 by 2029 from the developed technology products and systems[9]. - The group plans to continue its research and development efforts in producing and selling portable X-ray systems and advanced software solutions, indicating a focus on innovation and market expansion[83]. Financial Position - The net current liabilities of the group as of December 31, 2024, are approximately HKD 98,000,000, with a current ratio of 0.28[24]. - The total outstanding liabilities of the group amount to approximately HKD 155,000,000, including trade and other payables of about HKD 15,000,000 and secured bank borrowings of approximately HKD 103,000,000[24]. - The capital debt ratio of the group is approximately 23%, calculated as total liabilities divided by total assets[26]. - The company has significant uncertainty regarding its ability to continue as a going concern due to the net current liabilities of HKD 98,059,000[61]. - As of December 31, 2024, total non-current assets amounted to HKD 634,942,000, a decrease of 3.6% from HKD 658,992,000 as of June 30, 2024[56]. - Current assets totaled HKD 37,646,000, down 19% from HKD 46,476,000 in June 2024, primarily due to a decrease in cash and cash equivalents[56]. - The company's equity attributable to owners decreased to HKD 548,951,000 from HKD 576,503,000, a decline of 4.8%[57]. - The company’s total assets less current liabilities stood at HKD 536,883,000, down from HKD 564,114,000[57]. Share Options and Capital Structure - The company has granted a total of 397,721,900 share options under the share option plan, representing approximately 24.18% of the issued share capital as of the reporting date[37]. - The exercise price for the share options ranges from HKD 0.179 to HKD 0.321, with grant dates spanning from May 30, 2016, to November 9, 2018[39]. - The share options are a strategic tool for employee retention and motivation, aligning their interests with the company's performance[37]. - The weighted average number of ordinary shares used for calculating basic loss per share increased to 1,450,294,733 for the six months ended December 31, 2024, from 1,401,437,549 in 2023[95]. - The company has a balanced ownership structure with key shareholders each holding 50% in Gold Seal Holdings Limited[38]. Cash Flow and Liquidity - The company reported a net cash outflow from operating activities of HKD 7,401,000 for the six months ended December 31, 2024, an improvement from HKD 11,991,000 in the same period of 2023[59]. - Cash and cash equivalents at the end of the period were HKD 24,350,000, down from HKD 36,250,000 at the beginning of the period[59]. - The group has bank and cash balances of approximately HKD 24,000,000 as of December 31, 2024[24]. - The group has approximately HKD 102,730,000 in secured bank loans with repayment terms that will be repaid according to the scheduled repayment dates, and the bank will not exercise its discretion to demand immediate repayment[62]. - As of December 31, 2024, the group has undrawn available bank credit of approximately HKD 84,770,000[65]. Employee and Management Compensation - The total number of employees in the group as of December 31, 2024, is 45, with compensation determined based on market conditions[29]. - The remuneration for key management personnel was HKD 1,461,000 for the six months ended December 31, 2024, down from HKD 1,991,000 in 2023[128]. Compliance and Governance - The company is required to take necessary actions within 18 months from November 27, 2024, to comply with listing rules, or risk delisting[49]. - The company has committed to appoint at least one director of a different gender by December 31, 2024, to comply with diversity requirements[46]. - The board approved and authorized the publication of the consolidated interim financial statements on February 27, 2025[129].

Financial Performance - For the six months ended December 31, 2024, the company reported revenue of HKD 21,135,000, an increase of 104% compared to HKD 10,324,000 for the same period in 2023[3] - The gross profit for the same period was HKD 10,088,000, representing a gross margin of approximately 47.7%[3] - The operating loss increased to HKD 27,752,000 from HKD 12,860,000 year-over-year, indicating a deterioration in operational performance[3] - The net loss for the period was HKD 31,196,000, compared to a net loss of HKD 15,638,000 in the previous year, reflecting a 99% increase in losses[3] - The group reported external customer revenue of HKD 21,135,000 for the six months ended December 31, 2024, compared to HKD 10,324,000 for the same period in 2023, representing a 104.0% increase[20] - The group incurred a total segment loss of HKD 23,972,000 for the six months ended December 31, 2024, compared to a loss of HKD 8,597,000 for the same period in 2023, indicating a significant increase in losses[23] - The group’s total comprehensive loss before tax for the six months ended December 31, 2024, was HKD 31,029,000, compared to a loss of HKD 15,638,000 for the same period in 2023, indicating a worsening financial position[30] - The loss for the six months ended December 31, 2024, was approximately HKD 31,000,000, primarily due to a fair value loss of investment properties amounting to approximately HKD 21,000,000[39] Assets and Liabilities - The company's total assets as of December 31, 2024, were HKD 634,942,000, down from HKD 658,992,000 as of June 30, 2024[6] - Current liabilities amounted to HKD 135,705,000, slightly decreased from HKD 141,354,000 in the previous period[6] - The company had a net current liability of HKD 98,059,000, indicating potential liquidity challenges[10] - As of December 31, 2024, the group's current liabilities net amount is approximately HKD 98 million, with a current ratio of 0.28[59] - The group's total outstanding liabilities as of December 31, 2024, are approximately HKD 155 million, including bank borrowings of about HKD 103 million[59] - The group's capital debt ratio is approximately 23%, calculated as total liabilities divided by total assets[61] Revenue Sources - Revenue from external customers in Hong Kong decreased to HKD 2,894,000 for the six months ended December 31, 2024, down from HKD 4,341,000 in 2023, a decline of 33.4%[24] - Revenue from Finland significantly increased to HKD 17,444,000 for the six months ended December 31, 2024, compared to HKD 5,241,000 in the same period of 2023, marking a growth of 233.5%[24] Shareholder Information - Basic loss per share for the period was HKD 2.16, compared to HKD 0.96 in the previous year, indicating a significant increase in losses per share[4] - The weighted average number of ordinary shares used for calculating basic loss per share increased to 1,450,294,733 for the six months ended December 31, 2024, from 1,401,437,549 in the previous year[34] - The company has issued 243,661,670 new shares as a result of the redemption of convertible bonds, with an outstanding amount of HKD 60,394,376 as of November 25, 2024[69] - The group did not declare or propose any dividends for the six months ended December 31, 2024, consistent with the previous year[31] Corporate Governance and Compliance - The company is required to appoint at least one director of a different gender by December 31, 2024, to comply with the Hong Kong Stock Exchange's diversity requirements[70] - The company must take necessary actions within 18 months from November 27, 2024, to demonstrate compliance with Listing Rule 13.24, or risk delisting[71] - The company continues to adhere to corporate governance principles, with plans to review existing company rules at an appropriate time[75] - The interim report will be made available on the company's website and sent to shareholders at the appropriate time[76] - The chairman, Dr. Wong, is temporarily acting as the CEO, as no new CEO has been appointed[77] - The company advises shareholders and potential investors to exercise caution when trading its securities[78] - The board of directors consists of six members, including independent non-executive directors[79] Investment and Development - The company has invested approximately HKD 160,000,000 in collaboration with the Finnish National Technology Innovation Agency and plans to make significant investments in the coming years[42] - The technology department consists of about 29 R&D engineers, with expectations to generate USD 29,000,000 in revenue by 2029[42] - The portable X-ray devices developed by the subsidiary Pexray Oy are focused on security and non-destructive testing applications, with sales growth driven primarily by non-destructive testing sales[48] - Navigs Oy is developing advanced GNSS and imaging positioning solutions, with applications extending beyond agriculture to include construction and maritime sectors[49] - The IPESSA Tiny positioning solution was completed in early 2021, with customer trials delayed due to chip shortages, but completed in the first half of 2022 across Finland, Europe, and Turkey[49] - The first IPESSA Base Station, which provides RTK correction data for centimeter-level positioning, was delivered in December 2023[51] - The RTK VINS project is being developed in collaboration with Dynim Oy and aims to provide advanced positioning, sensing, and connectivity solutions[52] - The first prototype of the RTK VINS AI platform, based on NVIDIA technology, is targeted for release in Q1 2025[54] Other Financial Information - The company is implementing strategies to improve revenue and profitability, including cost control measures[10] - The group’s total unallocated expenses for the six months ended December 31, 2024, were HKD 10,305,000, slightly down from HKD 10,721,000 in the same period of 2023[23] - The financing costs increased to HKD 3,277,000 for the six months ended December 31, 2024, up from HKD 2,778,000 in the same period of 2023, reflecting a rise in interest expenses[27] - The company has not yet published its interim results for the six months ending December 31, 2024, but the audit committee has reviewed the accounting principles and internal controls[74] - Total sales for the six months ended December 31, 2024, were approximately HKD 18,000,000[46] - Trade receivables increased to HKD 5,003,000 as of December 31, 2024, compared to HKD 2,618,000 as of June 30, 2024[35]

Financial Performance - The company recorded a loss of approximately HKD 133 million for the year, compared to a loss of HKD 42 million in the same period last year, primarily due to a fair value loss of HKD 100 million on investment properties[5]. - The annual revenue, including rental income from investment properties, was approximately HKD 9 million, an increase from HKD 7 million in the previous year[6]. - Revenue for the year ended June 30, 2024, was HKD 22,733,000, an increase of 23.5% from HKD 18,386,000 in 2023[126]. - Gross profit for the same period was HKD 13,591,000, up 34.8% from HKD 10,093,000 in 2023[126]. - The company reported a net loss of HKD 133,409,000 for the year, compared to a loss of HKD 41,764,000 in 2023, indicating a significant increase in losses[126]. - Total comprehensive loss for the year was HKD 135,867,000, compared to HKD 42,169,000 in the previous year[126]. - The company has identified significant uncertainties regarding its ability to continue as a going concern, which may impact future operations[125]. - The group incurred a loss of approximately HKD 133,409,000 for the year ending June 30, 2024, with a net current liability of about HKD 94,878,000, raising significant doubts about the group's ability to continue as a going concern[134]. Investment and Growth - The technology department has invested approximately HKD 160 million in collaboration with the Finnish National Technology Innovation Agency and anticipates significant investments in the coming years[7]. - The company expects the technology department to generate USD 29 million in revenue by 2029, driven by advancements in semiconductor and artificial intelligence industries[7]. - Pexray Oy, a subsidiary, reported total sales of approximately HKD 14 million for the fiscal year ending June 30, 2024, focusing on portable X-ray inspection equipment for industrial and security applications[8]. - The portable X-ray source powered by a new battery was launched in 2022 and is expected to drive growth in the non-destructive testing market[9]. - The sales growth for the fiscal years 2023-2024 and 2024-2025 is primarily driven by non-destructive testing sales, which outpace security sales[9]. - The company is exploring investment opportunities to strengthen its investment portfolio[6]. Corporate Governance - The board of directors recommends not to declare a final dividend for the year 2023[21]. - The board consists of one executive director, two non-executive directors, and three independent non-executive directors, bringing diverse expertise in management, property market, electronics, accounting, finance, and corporate development[27]. - The company has complied with all corporate governance codes as per the Hong Kong Stock Exchange regulations, with some minor deviations disclosed[25]. - The board held four meetings and one annual general meeting during the year ending June 30, 2024, with attendance details provided[29]. - The chairman and CEO roles are currently held by Dr. Weng Shihua, with the board believing this structure provides strong leadership for effective business planning and execution[30]. - Independent non-executive directors are selected based on required skills and experience to ensure strong independent judgment within the board[29]. - The company has adopted the standard code of conduct for securities trading by directors, confirming compliance for the year ending June 30, 2024[26]. - The board is responsible for setting the strategic direction and policies of the group, overseeing management, and approving significant transactions[27]. - The company regularly reviews its corporate governance practices to ensure compliance with the established codes[25]. - The board includes members with over 45 years of experience in corporate finance, financial management, auditing, and accounting[23]. Environmental and Sustainability Efforts - The total greenhouse gas emissions for the reporting period were 149 tons, a decrease from 160 tons in the previous year, with a per employee emission of 3.17 tons compared to 2.39 tons last year[62]. - The total operational emissions from vehicles were 3.9 tons, down from 4.5 tons in the previous year, with nitrogen oxides (NOX) emissions at 3.5 kg, sulfur oxides (SOX) at 0.1 kg, and particulate matter (PM) at 0.3 kg[59]. - The company has set an environmental policy for employees, addressing significant environmental issues including emissions and resource usage, and has complied with relevant environmental laws without any major non-compliance incidents during the reporting period[57]. - The company has implemented green office initiatives to reduce environmental impact and encourages virtual meetings to avoid unnecessary travel[62]. - The company has adopted a quantitative approach to disclose key performance indicators related to environmental, social, and governance (ESG) policies[53]. - The company aims to integrate ESG measures into its strategy to minimize adverse environmental impacts[56]. Risk Management - The group faces significant business risks due to the performance of the Hong Kong real estate market, which could adversely affect financial conditions and lead to fair value losses on investment properties[89]. - The high-tech product market is characterized by intense competition and short product cycles, necessitating continuous investment in research and development[90]. - The group operates in a competitive environment in the Hong Kong property leasing market, where transparency in rental prices puts pressure on income and profitability[90]. - The group has a comprehensive risk management plan focused on minimizing potential adverse impacts on financial performance due to market unpredictability[197]. - Credit risk is managed through established policies and procedures, with individual credit assessments for customers exceeding certain limits[199]. Financial Position and Liabilities - As of June 30, 2024, the group's current liabilities net amount is approximately HKD 95 million, with a current ratio of 0.33[18]. - The group's total outstanding debt as of June 30, 2024, is approximately HKD 162 million, including secured bank loans of about HKD 104 million[18]. - The capital debt ratio of the group is approximately 22.97%[18]. - The group has available bank financing of approximately HKD 83,011,000 as of June 30, 2024, which will support its financial position[134]. - The group has implemented various strategies to enhance revenue and profitability, including cost control measures[134]. Audit and Compliance - The external auditor, Roshan Mei CPA, provided audit services costing HKD 610,000 and non-audit services costing HKD 150,000, totaling HKD 760,000 for the fiscal year ending June 30, 2024[44]. - The audit committee consists of one non-executive director and three independent non-executive directors, regularly reviewing the effectiveness of internal control systems[112]. - The auditors provided reasonable assurance that the financial statements are free from material misstatement due to fraud or error[123]. - The financial statements were prepared in accordance with the Hong Kong Financial Reporting Standards and the Companies Ordinance[118]. - The group has complied with all relevant laws and regulations without any significant violations during the review period[91]. Employee and Workforce Management - The group employed a total of 47 employees as of June 30, 2024, with compensation determined based on market conditions[20]. - Employee turnover rate was reported at 19% in Asia, 26% in Europe, and 9% in North America, with a total of 47 employees[74]. - The workforce consists of 40 males and 7 females, with 44 full-time and 3 part-time/contract employees[74]. - The company provided training courses for employees, with an average training time of 1 hour for male employees and 0.5 hours for female employees[77]. - The remuneration policy for employees is determined based on merit, qualifications, and capabilities, while directors' remuneration is based on responsibilities and company performance[113]. Shareholder Information - The total number of shares held by major shareholders includes 508,848,531 shares (36.31%) held by Basurto Holdings Limited and 309,388,211 shares (38.39%) held by Gold Seal Holdings Limited[98]. - The company has granted stock options totaling 397,721,900 shares, which accounts for approximately 28.38% of the total issued shares as of the report date[102]. - The stock options plan was adopted on December 8, 2015, to reward selected participants contributing to the group[102]. - The company maintains a balanced ownership structure with significant shares held by family trusts and related parties[99]. - The company will hold meetings every six months to consider and declare interim or final dividends, with the possibility of special dividends as well[39].

Financial Performance - For the fiscal year ending June 30, 2024, Paladin Limited reported total revenue of HKD 22,733,000, an increase of 23.5% from HKD 18,386,000 in the previous year[2] - The gross profit margin decreased to HKD 13,591,000, down from HKD 10,093,000, reflecting a cost of sales of HKD 9,142,000 compared to HKD 8,293,000 last year[2] - The operating loss for the year was HKD 127,453,000, significantly higher than the previous year's loss of HKD 37,567,000, indicating a deterioration in operational performance[2] - The net loss for the year was HKD 133,409,000, compared to a net loss of HKD 41,764,000 in the prior year, representing an increase in losses of 219%[2] - Total comprehensive loss for the year amounted to HKD 135,867,000, compared to HKD 42,169,000 in the previous year, reflecting a substantial increase in overall losses[3] - Basic and diluted loss per share for the year was HKD 9.29, compared to HKD 2.66 in the previous year, indicating a significant increase in loss per share[3] - The company reported a pre-tax consolidated loss of HKD (133,030,000) for the fiscal year 2024, compared to a loss of HKD (41,747,000) in 2023[18] - The company reported a pre-tax loss of HKD 133,030,000 for the year ending June 30, 2024, compared to a pre-tax loss of HKD 41,747,000 in the previous year, indicating a significant increase in losses[25] - The income tax expense for the year was HKD 379,000, a substantial increase from HKD 17,000 in the previous year, reflecting the higher pre-tax losses[25] - Basic and diluted loss per share for the year was HKD 130,130, compared to HKD 37,221 for the previous year, showing a worsening in per-share performance[26] Assets and Liabilities - Non-current assets decreased to HKD 658,992,000 from HKD 771,453,000, indicating a reduction of 14.5% year-over-year[4] - Current assets also declined to HKD 46,476,000 from HKD 54,472,000, a decrease of 14.5% compared to the previous year[4] - Total liabilities increased to HKD 141,354,000 from HKD 123,806,000, reflecting a rise of 14.1% year-over-year[4] - The company's equity attributable to owners decreased to HKD 576,503,000 from HKD 710,932,000, a decline of 18.9%[5] - The group reported a net current liability of approximately HKD 94,878,000, indicating significant uncertainty regarding the group's ability to continue as a going concern[7] - As of June 30, 2024, the group's current liabilities amounted to approximately HKD 95 million, with a current ratio of 0.33[49] - The group's total outstanding debt as of June 30, 2024, was approximately HKD 162 million, including secured bank loans of about HKD 104 million[49] - The group's capital debt ratio, calculated as total liabilities over total assets, was approximately 22.97%[50] Revenue Sources - Revenue from customer contracts recognized at a specific point in time for the sale of goods was HKD 14,052,000 in 2024, compared to HKD 11,007,000 in 2023, reflecting a growth of approximately 27.7%[14] - Rental income increased to HKD 8,681,000 in 2024 from HKD 7,379,000 in 2023, representing an increase of approximately 17.6%[14] - Revenue from the Hong Kong market increased to HKD 8,681,000 in 2024 from HKD 7,379,000 in 2023, reflecting a growth of about 17.6%[19] - The R&D segment's revenue from external customers was HKD 14,052,000, up from HKD 11,007,000 in the previous year, marking an increase of approximately 27.7%[17] - Total revenue for the group was HKD 22,733,000 in 2024, up from HKD 18,386,000 in 2023, indicating an overall growth of approximately 23.5%[14] Operational Strategies - The group implemented various strategies to enhance revenue and profitability, including cost control measures[7] - The company plans to continue its focus on R&D and market expansion, particularly in the development of portable X-ray systems and advanced algorithms[15] Investments and Developments - The company has invested approximately HKD 160 million in collaboration with the Finnish National Technology Innovation Agency and plans to make significant investments in the coming years[43] - The technology department aims to generate revenue of USD 29 million by 2029 through the sale of developed technology products or systems[43] - The company has launched various improvements to its portable X-ray detection equipment, enhancing product quality and customer satisfaction[44] - The IPESSA Tiny positioning solution was completed in early 2021, with customer trials conducted in Finland, Europe, and Turkey in the first half of 2022[45] - The first IPESSA Base Station was delivered in December 2023, providing RTK correction data for enhanced positioning accuracy[45] - The IPESSA Nano module, designed for drones and compact AGVs, was launched at the end of 2021, with the first units shipped in the fiscal year 2023-2024[46] - The IPESSA Yaw Bar, a high-end positioning device for maritime applications, has begun sales of its entry-level version equipped with MEMS inertial sensors[46] - The RTK-VINS system, utilizing core technologies from Tiny and Nano, is expected to enter customer trials by the end of 2024 and commence mass production in 2025[46] Governance and Management - The company has adhered to all corporate governance codes as per the Hong Kong Stock Exchange, except for the absence of some independent non-executive directors at the annual general meeting[56] - The chairman and CEO roles are separated, with Dr. Wong Shih Wah currently serving as chairman and temporarily as CEO, ensuring strong leadership and effective business planning[57] - The annual performance announcement is available on the Hong Kong Stock Exchange and the company's website, with the annual report to be sent to shareholders at an appropriate time[58] Shareholder and Financing - The group has bank loans secured with repayment terms amounting to approximately HKD 104,489,000, which are expected to be repaid on schedule without immediate repayment demands from banks[7] - Shareholder Gold Seal Holdings Limited has agreed not to demand repayment of approximately HKD 12,960,000 owed to the group until the financial condition allows[7] - As of June 30, 2024, the group had approximately HKD 83,011,000 in unutilized bank financing available[7] Employee and Workforce - The group employed a total of 47 employees as of June 30, 2024, with compensation determined based on market conditions[52] - The company has not made any significant acquisitions or disposals of subsidiaries during the year ending June 30, 2024[51] Dividend Policy - The company has not declared any dividends for the year ending June 30, 2024, consistent with the previous year[28] - The company has not proposed any final dividends for the year, maintaining a policy of no dividend distribution[37]

(於百慕達註冊成立之有限公司) 股份代號 : 495 截至二零二三年 2023 中期報告 十二月三十一日止六個月 Interim Report For the six months ended 31 December 2023 2023 INTERIM REPORT 中期報告 (incorporated in Bermuda with limited liability) Stock Code : 495 2023 公司資料 董 事 執行董事： 翁世華 （主席） 非執行董事： 陳智豪 阮志華 獨立非執行董事： 歐植林 廖文健 羅榮選 公司秘書 陳智豪 核數師 羅申美會計師事務所 執業會計師 註冊公眾利益實體核數師 主要往來銀行 中 信 銀 行（國 際）有 限 公 司 中 國 工 商 銀 行（亞 洲）有 限 公 司 律 師 David Norman & Co. 主要股份過戶登記處 Estera Management （Bermuda） Limited Victoria Place, 5th Floor 31 Victoria Street Hamilton HM10 Bermuda 香港股份過戶登記處 香港中央 ...

Financial Performance - For the six months ended December 31, 2023, the company reported revenue of HKD 10,324,000, an increase of 29.6% compared to HKD 7,954,000 for the same period in 2022[3] - The gross profit for the same period was HKD 5,698,000, representing a gross margin of 55.2%, up from HKD 4,329,000 in 2022[3] - The operating loss decreased to HKD 12,860,000 from HKD 18,206,000 year-over-year, indicating a 29.5% improvement[3] - The company incurred a loss before tax of HKD 15,638,000, which is a 22.5% reduction from HKD 20,051,000 in the previous year[3] - Total comprehensive loss for the period was HKD 17,087,000, compared to HKD 20,472,000 in the same period last year, reflecting a 16.5% improvement[5] - The basic loss per share for the period was HKD 0.96, compared to HKD 1.24 in the previous year, showing an improvement[5] - The company reported a pre-tax consolidated loss of HKD 15,638,000 for the period, compared to a loss of HKD 20,051,000 in the prior year, reflecting a 21.5% improvement[24] - Basic and diluted loss per share for the six months ended December 31, 2023, was HKD 0.0096, compared to HKD 0.0124 for the same period in 2022[33] Revenue Segmentation - For the six months ended December 31, 2023, total revenue from external customers was HKD 10,324,000, an increase of 29.8% compared to HKD 7,954,000 for the same period in 2022[20] - The property investment segment generated revenue of HKD 4,341,000, up from HKD 3,690,000, representing a growth of 17.6% year-over-year[25] - The R&D segment reported revenue of HKD 5,983,000, an increase of 40.3% from HKD 4,264,000 in the previous year[20] - Sales for the six months ended December 31, 2023, totaled approximately HKD 5,100,000[48] Financial Position - The company's net current liabilities amounted to HKD 83,424,000 as of December 31, 2023, indicating a significant liquidity concern[12] - Non-current assets totaled HKD 768,057,000, with investment properties valued at HKD 518,000,000[7] - As of December 31, 2023, the group's net current liabilities were approximately HKD 83 million, with a current ratio of 0.31 and cash reserves of about HKD 27 million[61] - The group's outstanding liabilities totaled approximately HKD 142 million, including trade and other payables of about HKD 17 million and bank loans of approximately HKD 80 million[61] - The group's bank borrowings are secured against leasehold land and buildings valued at approximately HKD 176 million[62] - The company's capital debt ratio is approximately 17.71%[63] Strategic Plans - The company plans to implement strategies to enhance revenue and profitability, including cost control measures[13] - The group has invested approximately HKD 160,000,000 in collaboration with the Finnish National Technology Innovation Agency and plans to make significant investments in the coming years[45] - The technology department aims to generate USD 33,000,000 in revenue by 2027[45] Operational Developments - The portable X-ray devices for security and non-destructive testing applications have seen increased sales, with non-destructive testing products currently outselling security products[50] - The first base station of the IPESSA series was delivered in December 2023, enhancing positioning capabilities for autonomous vehicles[52] - IPESSA Nano is a compact positioning module suitable for drones and compact AGVs, with hardware and mechanical prototypes launched at the end of 2021, but software development has been delayed due to resource constraints[53] - Dynim Oy is focusing on developing a series of camera products that seamlessly integrate with the IPESSA positioning solutions, with a 2024 product development roadmap centered around the RTK Vins series[54] - The IPESSA Yaw Bar, a high-end positioning device for maritime applications, is expected to complete prototype design in the first half of 2024, with customer trials starting by the end of 2024[55] - The RTK Vins AI solution includes a robust industrial camera and powerful AI processor, designed for precise positioning and edge AI applications, suitable for drones and heavy machinery[56] Challenges and Governance - Imagica Technology Inc. has faced significant challenges in profitability due to design and production delays over the past three years, necessitating a comprehensive evaluation of its financial stability and market demand[57] - The company did not declare or propose any dividends for the six months ended December 31, 2023, consistent with the previous year[32] - The board of directors recommended not to declare any interim dividend for the six months ended December 31, 2023[68] - The company and its subsidiaries did not purchase, sell, or redeem any listed shares during the six months ended December 31, 2023[70] - The audit committee reviewed the accounting principles and practices used by the company, but there were no audited interim results for the six months ended December 31, 2023[71] - The company has adhered to corporate governance principles, with some exceptions regarding attendance at the annual general meeting[72] - The interim results announcement can be accessed on the stock exchange and the company's website[73] Employee and Contingent Liabilities - The total number of employees as of December 31, 2023, is 49, with compensation determined based on market conditions[66] - There are no significant contingent liabilities as of December 31, 2023[67] - The company has received agreement from a major shareholder to defer repayment of HKD 13,799,000 until the financial situation allows[12]

Financial Performance - The company reported a loss of approximately HKD 42 million for the year ended June 30, 2023, compared to a loss of HKD 89 million in the same period of 2022, indicating a significant reduction in losses [8]. - Revenue for the year was approximately HKD 7 million, down from HKD 9 million in 2022, reflecting a decrease in rental income from investment properties [9]. - The total sales for the year amounted to approximately HKD 10 million [13]. - For the fiscal year ending June 30, 2023, the total greenhouse gas emissions amounted to 160 tons, an increase from 101 tons in the previous year, resulting in a per employee emission of 2.39 tons compared to 1.44 tons [91]. - Total revenue for the year ended June 30, 2023, was HKD 18,386,000, a decrease of 36.2% from HKD 28,783,000 in 2022 [196]. - Gross profit for the same period was HKD 10,093,000, down from HKD 10,906,000, reflecting a decline of 7.4% [196]. - Operating loss narrowed to HKD 37,567,000 from HKD 87,230,000, indicating a significant improvement in operational efficiency [196]. - The net loss for the year was HKD 41,764,000, compared to HKD 89,466,000 in the previous year, representing a reduction of 53.3% [196]. - The company's equity attributable to owners decreased to HKD 710,932,000 from HKD 749,077,000, a decline of 5.1% [200]. - Basic loss per share improved to HKD 2.66 from HKD 5.84, reflecting a 54.4% reduction in loss per share [196]. Investment and Technology - The company has invested approximately HKD 160 million in next-generation technology applications, with expectations of generating USD 33 million in revenue from its technology department by 2027 [11]. - The technology department consists of 37 R&D engineers across five operational sites in four countries [11]. - The company has launched various improvements to its portable X-ray detection devices aimed at security and industrial applications, with sales expected to increase in the fiscal years 2023 to 2024 [15]. - The company is developing advanced positioning and imaging sensor technologies, with several products expected to enter mass production in 2024 [17]. - Dynim Oy is developing high-end sensors and AI software for industrial applications, with a focus on robust stereo cameras for heavy machinery [18]. - Imagica Technology Inc. has developed linear image sensors for spectroscopy and document scanners, utilizing advanced 3D semiconductor processes [18]. - The company is currently evaluating whether to invest additional capital due to significant challenges in achieving profitability over the past three years [20]. Governance and Management - The board of directors consists of one executive director, two non-executive directors, and three independent non-executive directors, ensuring a diverse range of expertise in management, property market, electronics, accounting, finance, and corporate development [40]. - The board held four meetings and one annual general meeting during the year ending June 30, 2023, with attendance details provided for each director [43]. - The nomination committee has been established to review the board's structure and composition, ensuring a diverse skill set among members [47]. - The company has adopted a nomination policy to enhance board diversity and governance standards, considering factors such as gender, age, cultural background, and professional experience [53]. - The remuneration committee, consisting of three independent non-executive directors and one executive director, is responsible for proposing the remuneration policy for all directors and senior management [54]. - The company has made appropriate insurance arrangements for legal actions that directors and senior officers may face [48]. - The chairman and CEO roles are separated, with the current chairman temporarily acting as CEO until a new appointment is made [46]. - The board is responsible for setting the group's strategic direction and policies, as well as overseeing management [40]. - Independent non-executive directors are selected based on required skills and experience to ensure strong independent judgment within the board [43]. - The company will regularly review its governance practices to ensure effective corporate governance is maintained [46]. - The audit committee held two meetings during the year ended June 30, 2023, with attendance as follows: Chairman 廖文健 attended 2/2, 陳智豪 attended 2/2, 歐植林 attended 1/2, and 羅榮選 attended 0/2 [58][59]. - The external auditor, 罗申美会计师事务所, charged a total of HKD 864,000 for audit and non-audit services, with HKD 610,000 for audit services and HKD 254,000 for non-audit services [69]. - The company’s board of directors has adopted a dividend policy to consider and declare interim and final dividends semi-annually, subject to various factors including available reserves and operational needs [61]. - The company emphasizes the importance of a robust internal control system to achieve business objectives and ensure compliance with laws and regulations [70]. - The internal control procedures include a comprehensive budgeting and performance monitoring system, with management responsible for identifying and reporting significant business risks [71]. - The audit committee is responsible for reviewing the company's financial information, including annual and interim reports, and ensuring the independence of the external auditor [56][58]. - The company has implemented training programs for directors to enhance their understanding of corporate governance and their responsibilities [64][65]. - The board of directors acknowledges its responsibility for the effectiveness of the internal control system and has engaged independent consultants to review it [71]. Environmental Impact - The company has established an environmental policy addressing significant environmental issues, ensuring compliance with relevant environmental laws and regulations, with no major non-compliance incidents reported during the reporting period [86]. - Total gasoline consumption decreased from 7,257 liters in 2022 to 6,777 liters in 2023, representing a reduction of approximately 6.6% [98]. - Purchased electricity consumption increased significantly from 153,866 kWh in 2022 to 245,043 kWh in 2023, marking an increase of about 59.3% [98]. - Employee density for gasoline consumption improved from 104 liters per employee in 2022 to 101 liters per employee in 2023 [98]. - Employee density for purchased electricity rose from 2,198 kWh per employee in 2022 to 3,657 kWh per employee in 2023, indicating a 66.5% increase [98]. - The company maintained a low level of hazardous waste emissions due to the nature of its business operations, with no significant data disclosed [94]. - The company has implemented various energy-saving measures to reduce emissions, including the use of energy-efficient lighting and recycling initiatives [101]. - No significant environmental impact was reported during the reporting period, and the company is committed to complying with relevant environmental laws and regulations [103]. - The company plans to maintain the same levels of energy and water consumption through the fiscal year ending June 30, 2024 [101]. Employee and Labor Relations - The total number of employees as of June 30, 2023, was 67, with compensation determined based on market conditions [27]. - The employee turnover rate for males was 22%, while for females it was 0% [110]. - The overall employee count was 67, with 54 males and 13 females, indicating a gender ratio of approximately 81% male to 19% female [108]. - During the reporting period, 31% of male and 31% of female employees received training, with senior management receiving an average of 1 hour and regular employees receiving 3 hours of training [114]. - The company did not receive any tenant complaints during the reporting period [121]. - The company has not identified any serious violations of labor standards or regulations during the reporting period [116]. - The company emphasizes the importance of maintaining high quality and standards for sustainable development, ensuring compliance with health, safety, and privacy regulations [122]. - The company has a zero-tolerance policy for misconduct and has not received any reports of corruption-related risks during the reporting period [126]. - The company is committed to community investment and encourages employees to participate in local community projects [127]. Risks and Challenges - The company anticipates challenges due to ongoing geopolitical tensions and economic uncertainties, impacting its future outlook [11]. - The company faces significant business risks related to the performance of the Hong Kong property market, which could adversely affect its financial condition and operations [132]. - The company has made significant investments in high-tech products, but the success of its R&D efforts is uncertain due to rapid technological changes in the market [132]. - The company regularly evaluates existing suppliers to mitigate supply chain risks and ensures the quality of services and products provided [118]. Shareholder Information - For the fiscal year ending June 30, 2023, the company's distributable reserves amounted to HKD 202,463,000 [144]. - The largest customer accounted for 40% of total revenue, while the top five customers represented 76% of total revenue for the same period [146]. - The largest supplier contributed 35% to the total cost of sales, and the top five suppliers accounted for 48% of total cost of sales [146]. - The company’s directors collectively held 55,497,189 shares, representing 3.96% of total equity [150]. - Major shareholder Basurto Holdings Limited held 508,848,531 shares, accounting for 36.31% of total equity [153]. - Gold Seal Holdings Limited, another major shareholder, held 537,993,892 shares, representing 38.39% of total equity [153]. - The company reported no significant disputes with employees or customers during the fiscal year [139]. - The company has complied with all relevant laws and regulations without any major violations during the review period [138]. - The company’s board of directors includes both executive and independent non-executive members, ensuring governance and oversight [147]. Corporate Actions - The company has not disclosed any new product developments or market expansion strategies in the provided documents [145]. - The company adopted a share option plan on December 8, 2015, to reward selected participants contributing to the group [156]. - A total of 397,721,900 share options were granted to certain employees and directors between May 30, 2016, and November 9, 2018 [156]. - As of June 30, 2023, the number of unexercised options held by directors includes 13,676,400 options at an exercise price of HKD 0.321, granted in 2016 [156]. - The company did not engage in any arrangements that would allow directors or senior executives to benefit from purchasing shares or bonds of the company or any other entity during the year [159]. - The net proceeds from the public offering conducted in December 2017 amounted to approximately HKD 63,200,000, which has been fully utilized by June 30, 2023 [169]. - There were no purchases, sales, or redemptions of the company's listed shares by the company or its subsidiaries for the year ending June 30, 2023 [168]. - The company has not entered into any management or administrative contracts concerning any significant part of its business during the year [162]. - The company has not established or maintained any share-linked agreements during the year, aside from its convertible bonds and share option plan [164]. - The company has provided indemnification rights to its directors and senior officers for losses or liabilities incurred while performing their duties [163]. - The company has not disclosed any significant interests held by directors in major contracts with the company or its subsidiaries during the year [160]. - As of June 30, 2023, the group incurred a loss of approximately HKD 41,764,000, with net current liabilities of about HKD 69,334,000, raising significant doubts about the group's ability to continue as a going concern [181]. - The fair value of the group's investment properties was estimated at approximately HKD 518,000,000, with a fair value loss of about HKD 9,400,000 recognized in the income statement for the year ended June 30, 2023 [184].

香港交易及結算所有限公司及香港聯合交易所有限公司對本公佈的內容概不負責， 對其準確性或完整性亦不發表任何聲明，並明確表示，概不對因本公佈全部或任何 部份內容而產生或因倚賴該等內容而引致的任何損失承擔任何責任。 PALADIN LIMITED （於百慕達註冊成立之有限公司） 495 （股份代號 ： ） 業績公佈 截至二零二三年六月三十日止年度 Paladin Limited （「本公司」）之董事會（「董事會」）欣然宣佈本公司及其附屬公司（下文 統稱「本集團」）截至二零二三年六月三十日止年度之經審核綜合業績，連同上一年 度之比較數字如下： 綜合損益及其他全面收益表 截至二零二三年六月三十日止年度 二零二三年 二零二二年 附註 千港元 千港元 3 18,386 28,783 收益 (8,293) (17,877) 銷售及服務成本 10,093 10,906 毛利 5 404 444 其他收入 6 4,782 (31,808) ...

Financial Performance - The company recorded a loss of approximately HKD 89 million in 2022, compared to a loss of HKD 53 million in 2021, primarily due to a fair value loss of HKD 35 million on investment properties[26]. - Revenue for the year ended June 30, 2022, was approximately HKD 9 million, an increase from HKD 8 million in 2021[27]. - The technology department generated revenue of approximately HKD 20 million during the year, but did not meet expectations due to adverse impacts from COVID-19 and semiconductor shortages[29]. - Sales from Pexray Oy, which focuses on security and non-destructive testing applications, amounted to approximately HKD 19 million for the year[30]. - The group's total outstanding liabilities were approximately HKD 162 million, including trade and other payables of about HKD 13 million and secured bank borrowings of approximately HKD 83 million[44]. - The group's current liabilities net amount was approximately HKD 48 million, with a current ratio of 0.67 and cash reserves of approximately HKD 87 million[44]. - The capital debt ratio was approximately 18.36%, calculated as total liabilities divided by total assets[46]. - The group's largest customer accounted for 46% of total revenue, while the top five customers contributed 89% of total revenue for the year ended June 30, 2022[172]. - The group's investment properties experienced fair value losses due to the downturn in the Hong Kong real estate market, which could adversely affect financial conditions and operational performance[157]. - As of June 30, 2022, the company's distributable reserves amounted to HKD 221,701,000[170]. Corporate Governance - The company adhered to all corporate governance codes as per the Hong Kong Stock Exchange's listing rules for the fiscal year ending June 30, 2022, with some deviations disclosed[60]. - The board consists of one executive director, two non-executive directors, and three independent non-executive directors, ensuring a diverse range of expertise[63]. - The company has established a nomination committee to review the board's structure and recommend suitable candidates for directorship[74]. - The company does not see the need for a formal diversity policy for board members, focusing instead on the skills and experience of candidates[75]. - The chairman and CEO roles are separated, with the current chairman also temporarily acting as CEO[69]. - The independent non-executive directors confirmed their independence in accordance with the listing rules[66]. - The board is responsible for setting the strategic direction and policies of the group, overseeing management, and approving significant transactions[63]. - The board has adopted a nomination policy to enhance diversity and governance standards within the board[76]. - The audit committee held two meetings during the year, reviewing the annual report and interim report for the respective periods[83]. - The audit committee consists of one non-executive director and three independent non-executive directors, regularly reviewing the effectiveness of internal control systems[199]. Internal Control and Risk Management - The company emphasizes the importance of a robust internal control system to achieve business objectives and ensure compliance with laws and regulations[93]. - The group has established a comprehensive internal control system, including a budget, information reporting, and performance monitoring procedures[94]. - The management team is responsible for preparing the annual business plan and budget, which must be reviewed and approved by the executive directors[94]. - The board acknowledges its responsibility for the internal control system and has engaged independent consultants to review its effectiveness[94]. - The independent consultant's report has been submitted to the audit committee and board for review, with recommendations for strengthening the internal control system adopted[94]. Environmental, Social, and Governance (ESG) Issues - The group has identified significant environmental, social, and governance (ESG) issues relevant to its operations and stakeholders[101]. - The group has established an environmental policy addressing major environmental issues, including emissions and resource usage[110]. - Nitrogen oxides (NOX) emissions decreased from 6.2 kg in 2021 to 4.3 kg in 2022, a reduction of approximately 30.6%[113]. - Total greenhouse gas emissions calculated in CO2 equivalent decreased from 128 tons in 2021 to 101 tons in 2022, a reduction of about 21.1%[115]. - Gasoline consumption decreased from 10,411 liters in 2021 to 7,257 liters in 2022, a reduction of approximately 30.3%[122]. - The company has implemented green office initiatives to reduce environmental impact, including encouraging remote meetings[117]. - The company has established policies to minimize waste and promote recycling, maintaining low levels of harmless waste[121]. - The company recognizes the importance of managing climate change impacts and has begun assessing climate-related risks[128]. Employee and Community Engagement - The group has a total of 70 employees, with 58 males and 12 females, and 69 full-time and 1 part-time/contract employee[132]. - Employee training participation rates are 34% for males and 25% for females, with senior management at 34% and general staff at 32%[138]. - The group has maintained a safe working environment with no reported work-related safety incidents over the past three years[135]. - The group actively encourages employee participation in local community projects as part of its corporate responsibility[151]. Shareholder Information - The company reported a total of 1,176,614,613 shares outstanding, with major shareholders holding 83.96% of the total equity[179]. - Basurto Holdings Limited, Cityguard Holdings Limited, and Five Star Investments Limited each hold 36.31% of the company's shares, totaling 508,848,531 shares[179]. - Gold Seal Holdings Limited holds 38.39% of the shares, amounting to 537,993,892 shares, including 228,605,681 convertible securities[179]. - The company has a stock option plan adopted on December 8, 2015, with a total of 397,721,900 stock options granted to employees and directors[183]. - The exercise price for stock options ranges from HKD 0.179 to HKD 0.321, with various exercise periods extending to 2028[183]. Strategic Outlook - The company has not reported any new strategies or market expansions in the current financial year[182]. - The company has not disclosed any new product developments or technological advancements in the recent reports[182]. - There are no reported mergers or acquisitions in the current financial year, maintaining the company's existing structure[182]. - The company repurchased 350,000 shares at a total cost of approximately HKD 43,000 (excluding transaction fees) during the fiscal year ending June 30, 2022[194]. - Due to uncertainties caused by the COVID-19 pandemic, the company decided to repurpose the public offering proceeds for general working capital instead of land acquisition and facility construction[196].

Financial Performance - The company's revenue for the six months ended December 31, 2021, increased by approximately 46% to about HKD 12,000,000, while it recorded a loss of approximately HKD 54,000,000 compared to a loss of HKD 47,000,000 in the same period of 2020[10]. - For the six months ended December 31, 2021, the company's revenue was HKD 12,231,000, an increase of 46.5% compared to HKD 8,393,000 for the same period in 2020[72]. - The total loss before tax for the company was HKD 54,080 thousand for the six months ended December 31, 2021, compared to a loss of HKD 47,111 thousand for the same period in 2020, reflecting an increase in losses[137]. - The total comprehensive loss for the period was HKD 53,738,000, compared to HKD 43,680,000 in the previous year, reflecting a 23.4% increase in losses[74]. - Basic and diluted loss per share for the period was HKD 3.60, compared to HKD 3.04 and HKD 3.18 for the same period in 2020, respectively[75]. - Basic loss per share for the six months ended December 31, 2021, was HKD (50,430,000), compared to HKD (42,869,000) for the same period in 2020, representing an increase in loss[144]. - Diluted loss per share for the six months ended December 31, 2021, was HKD (50,430,000), slightly improved from HKD (50,914,000) in the previous year[144]. Revenue Sources - Rental income from investment properties for the same period was approximately HKD 4,000,000, up from HKD 3,000,000 in 2020[11]. - The property investment segment generated revenue of HKD 4,341 thousand, while the R&D segment generated HKD 7,890 thousand, indicating a shift in revenue sources[134]. - The largest customer accounted for 40% of total revenue, while the top five customers represented 90% of total revenue, indicating a high customer concentration risk[59]. Investment and Development - The technology department has made progress in developing new generation technologies involving imaging, monitoring, navigation, and advanced semiconductor processing, with an investment of approximately HKD 140,000,000 in collaboration with the Finnish National Technology Innovation Agency[13]. - The technology department is expected to generate USD 100,000,000 in revenue by 2026 from several technology products or systems currently under development[13]. - Dynim Oy, a subsidiary, is developing high-end camera products and AI software for industrial applications, with a commercial version of its robust stereo camera expected to be launched in Q1 2022[21]. - The IPESSA Classic product, developed by Navigs Oy, is aimed at automated agriculture and has shown limited market appeal, leading to a focus on specific applications requiring high positioning performance[23]. - The technology department consists of approximately 50 R&D engineers across five operational sites in four countries[13]. - The company’s R&D efforts focus on producing and selling portable X-ray systems and advanced algorithms, indicating a commitment to innovation and technology development[128]. Financial Position - As of December 31, 2021, the group’s net current liabilities were approximately HKD 23,445,000, indicating significant uncertainty regarding the group's ability to continue as a going concern[93]. - The group reported a loss of approximately HKD 50,430,000 for the six months ended December 31, 2021[93]. - The group has a mortgage loan of approximately HKD 84,588,000, which is expected to be repaid according to the scheduled repayment dates[93]. - The fair value of investment properties located in Hong Kong was reported at HKD 539,300,000 as of December 31, 2021[102]. - The company reported a net asset value of HKD 756,293 thousand as of December 31, 2021, down from HKD 809,961 thousand in June 2021, reflecting a decrease of about 6.6%[82]. - Total liabilities increased to HKD 153,669 thousand from HKD 165,623 thousand, indicating a reduction of approximately 7.2% in current liabilities[80]. - The company incurred financing activities cash outflow of HKD (19,700) thousand, compared to HKD (2,686) thousand in the previous year, indicating a significant increase in financing costs[87]. Shareholder Information - As of December 31, 2021, Basurto Holdings Limited, Cityguard Holdings Limited, and Five Star Investments Limited each hold 508,848,531 shares, representing 36.31% of the total equity[47]. - Gold Seal Holdings Limited holds 309,388,211 shares and convertible securities totaling 537,993,892 shares, representing 38.39% of the total equity[47]. - The total number of shares held by major shareholders amounts to 1,176,614,613, which is 83.96% of the total equity[47]. - The company has a stock option plan adopted on December 8, 2015, with a total of 397,721,900 stock options granted to employees and directors[54]. - Major shareholders, including Mr. Ong and Ms. Xu, hold significant portions of stock options, with Mr. Ong holding 13,676,400 options at an exercise price of HKD 0.321[54]. - The total number of shares held by Ms. Xu amounts to 537,993,892, representing 38.39% of the total equity[47]. Operational Challenges - The company has decided to terminate the operation of its subsidiary Next Level A.I. Solutions, LLC due to various macroeconomic factors and challenges in the technology productization process[13]. - The company has not established a formal board diversity policy, believing that the skills and experience of board members are more critical for effective governance[67]. - The company confirmed that it has implemented various strategies to enhance its revenue and profitability despite the current financial challenges[93]. Cash Flow and Assets - The net cash used in operating activities was HKD (30,270) thousand for the six months ended December 31, 2021, compared to HKD (31,605) thousand in the same period of 2020, showing an improvement of about 4.2%[87]. - Cash and cash equivalents at the end of the period were HKD 111,003 thousand, down from HKD 180,287 thousand year-over-year, a decrease of approximately 38.4%[87]. - Non-current assets totaled HKD 801,794 thousand as of December 31, 2021, down from HKD 828,826 thousand in June 2021, representing a decrease of approximately 3.3%[80]. - Current assets decreased to HKD 130,224 thousand from HKD 170,174 thousand, a decline of about 23.5%[80]. - The company’s inventory increased to HKD 9,794 thousand from HKD 3,254 thousand, representing a rise of approximately 201.5%[80]. Debt and Financing - The company had outstanding related party payables totaling HKD 20,669,000 as of December 31, 2021, down from HKD 24,712,000 as of June 30, 2021[167]. - The company’s mortgage loans were HKD 84,588,000 as of December 31, 2021, with repayment scheduled over the next 293 months[170]. - The company issued 194,208,539 convertible bonds in 2017, raising approximately HKD 48,552,000 from the public offering[175]. - The company’s convertible bonds are set to mature on November 23, 2024, and can be converted into ordinary shares at a price of HKD 0.25 per share[175]. - The company’s total liabilities include a significant portion classified as current liabilities due to the nature of the convertible bonds and their potential impact on public shareholding[182].