Company Overview - Coolpad Group Limited, listed on the Hong Kong main board with stock code 02369.HK, was founded in 1993 and relies on strong independent R&D capabilities and a global layout to lead industry innovation in the digital age, providing consumers with continuously upgraded products and ecosystem services [2]. Financial Performance - As of December 31, 2024, Coolpad Group reported total operating revenue of 462 million yuan, representing a year-on-year increase of 62.46% [1]. - The company recorded a net profit attributable to shareholders of -234 million yuan, a year-on-year decrease of 14.13% [1]. - The gross profit margin stood at 14.48%, while the debt-to-asset ratio was 59.24% [1]. Market Performance - On June 26, the Hang Seng Index fell by 0.61%, closing at 24,325.4 points [1]. - Coolpad Group's stock price closed at 0.77 HKD per share, marking a 35.09% increase, with a trading volume of 352,400 shares and a turnover of 258,300 HKD, showing a volatility of 38.6% [1]. Valuation Metrics - Currently, there are no institutional investment ratings for Coolpad Group [1]. - The average price-to-earnings (P/E) ratio for the information technology equipment industry is 47.36 times, with a median of 3.22 times [1]. - Coolpad Group's P/E ratio is -0.93 times, ranking 57th in the industry, compared to other companies such as Changhong Jiahua (3.22 times), SIS INT'L (3.49 times), and others [1].

| 代码 | 简称 | 回购股数 | 回购金额（万 | 回购最高价 | 回购最低价 | 年内累计回购金额 | | --- | --- | --- | --- | --- | --- | --- | | | | （万股） | 港元） | （港元） | （港元） | （万港元） | | 00700 | 腾讯控股 | 97.50 | 50031.85 | 518.000 | 508.000 | 3053502.29 | | 01299 | 友邦保险 | 65.00 | 4496.05 | 69.600 | 68.750 | 1262654.38 | | 01519 | 极兔速 递-W | 115.00 | 776.50 | 6.780 | 6.690 | 26921.74 | | 01458 | 周黑鸭 | 162.10 | 398.80 | 2.490 | 2.430 | 16172.16 | | 01907 | 中国旭阳 集团 | 132.20 | 338.58 | 2.590 | 2.530 | 9131.98 | | 09896 | 名创优品 | 5.54 | 198.68 | 36.400 | 35.60 ...

Financial Performance - For the year ended December 31, 2024, the company's revenue was HKD 499,332,000, representing a 62.3% increase from HKD 307,363,000 in 2023[11] - The company reported a loss before tax of HKD 250,514,000 for 2024, compared to a loss of HKD 234,015,000 in 2023[11] - The company's net asset value decreased to HKD 1,799,933,000 in 2024 from HKD 2,091,674,000 in 2023[11] - The group reported a total revenue of approximately HKD 499.33 million for the year ended December 31, 2024, representing a 62.5% increase from HKD 307.36 million in 2023[24] - The gross profit for the year was approximately HKD 72.32 million, with a gross margin of 14.48%, down from 34.95% in 2023, primarily due to low-margin hardware products[26] - The company recorded a pre-tax loss of approximately HKD 250.51 million for the year, compared to a loss of approximately HKD 234.02 million for the year ended December 31, 2023[36] - The company recorded an income tax expense of approximately HKD 1.64 million for the year, compared to an income tax credit of approximately HKD 13.02 million for the previous year[36] - The company recorded a net loss attributable to the company's owners for the fiscal year of HKD (252,158,000), compared to HKD (220,931,000) in the previous year, indicating a 14.1% increase in losses[123] - The group reported a loss of HKD 252,158,000 for the year ended December 31, 2024[188] Product Development and Market Expansion - The company launched the Coolpad Y70Lite and the Daguang 3 series smartphones in collaboration with China Mobile, with the Daguang 3 featuring naked-eye 3D technology[16] - The company expanded its product line to include over ten categories such as cloud tablets, smart wearables, and smart health devices in 2024[17] - The company has established partnerships with over ten cross-border platforms, including SHEIN, TikTok, and AliExpress, to enhance its market reach[16] - The company is focusing on expanding its product line to include smart wearables, smart education, smart home, security, and health care, integrating AI, IoT, and cloud computing technologies[52] - The company plans to enhance its smartphone product line by integrating AI technology and optimizing user experience, aiming for a comprehensive transformation into a diversified ecosystem[52] - The company has completed the deep integration with the AI model "DeepSeek," enhancing product intelligence and user experience, particularly in emerging markets[53] Digital Currency and Cryptocurrency Business - The company is actively exploring opportunities in the Web 3.0 digital currency business starting from the second half of 2023[4] - Revenue from cryptocurrency business surged to HKD 97.68 million, a significant increase of 1,043.8% compared to HKD 8.54 million in the previous year[24] - The group plans to acquire a cryptocurrency mining hosting service company by 2025 to enhance its digital currency operations and achieve vertical integration[21] - The company has deployed servers in North America with an effective computing power of 1,504,800 TH/s, accumulating approximately 187.32 BTC by the end of 2024[18] - The company intends to pursue upstream acquisitions in the digital currency sector in 2025, targeting companies that provide cryptocurrency mining hosting services[55] Operational Efficiency and Cost Management - The sales and distribution expenses decreased to approximately HKD 30.17 million, a reduction of 15.5% from HKD 35.70 million in the previous year[27] - Administrative and other operating expenses increased by 9.7% to approximately HKD 298.84 million, but as a percentage of total revenue, it decreased from 88.89% in 2023 to 59.85% in 2024[28] - Operating expenses increased by 9.37% to approximately HKD 298.84 million, while the percentage of operating expenses to total revenue decreased from 88.89% to 59.85%[35] Corporate Governance and Management - The board consists of nine directors, including three executive directors, three non-executive directors, and three independent non-executive directors[60] - The company held four board meetings during the year, but did not hold an annual general meeting due to delays in the annual performance review[68] - The chairman and CEO roles are currently held by Mr. Chen Jia Jun, with the board believing this structure does not harm the balance of power between the board and management[63] - The independent non-executive directors have confirmed their independence according to the listing rules, ensuring they provide unbiased judgment on company matters[66] - The company has established three committees: the nomination committee, the remuneration committee, and the audit committee, each with specific responsibilities[71] - The company has mechanisms in place for internal controls and checks to ensure clear responsibilities between the board and management[59] - The remuneration committee evaluated the performance and compensation of directors and senior management, holding two meetings with full attendance[72] - The audit committee conducted three meetings, reviewing the company's financial performance and internal control systems, with all members present[76] - The nomination committee held two meetings, recommending the reappointment of directors for the upcoming annual general meeting[77] Shareholder Communication and Dividend Policy - The company emphasizes the importance of effective communication with shareholders and provides information through its website and the stock exchange[95] - The company maintains a stable and sustainable dividend policy, considering current business conditions, future income, and financial status[97] - The company does not recommend the payment of any final dividend for the fiscal year, considering its operational needs[120] - The company has not made any changes to its articles of association during the year[101] Legal and Compliance Matters - The company faced civil lawsuits from suppliers demanding repayment of overdue accounts totaling RMB 4,368,000 (approximately HKD 4,648,000)[33] - There were no legal proceedings related to corruption against the company or its employees during the year[99] - The company has established a whistleblowing policy to maintain high standards of integrity and ethics, allowing employees and stakeholders to report misconduct confidentially[100] - The company has established compliance procedures to ensure adherence to applicable laws and regulations, particularly those affecting its operations in mainland China, Hong Kong, and the United States[140] Employee and Workforce Management - Employee costs for the year amounted to approximately HKD 105.35 million, an increase from HKD 97.33 million in 2023[178] - The group had 225 employees as of December 31, 2024, down from 299 employees in 2023[178] Related Party Transactions and Shareholder Structure - The largest shareholder, Mr. Chen Jiajun, holds 3,131,355,500 shares, representing approximately 19.12% of the issued share capital[165] - The company has confirmed that all related party transactions comply with the pricing principles and have been approved by the board[162] - The independent auditor has issued an unqualified opinion on the company's related party transactions, confirming adherence to the relevant agreements[162] Risk Management - The company has identified key risks including profit risk, supply chain management risk, and cost growth risk, which may impact its financial condition and development prospects[117] - The board is responsible for the risk management and internal control systems, which are designed to manage foreign exchange risks and provide reasonable assurance against material misstatements or losses[84] Audit and Financial Reporting - The group’s financial statements were prepared in accordance with Hong Kong Financial Reporting Standards, reflecting a true and fair view of its financial position[188] - The independent auditor's report highlighted significant uncertainties regarding the group's ability to continue as a going concern[188] - The audit committee consists of three independent non-executive directors who reviewed the group's annual performance[170]

智通财经APP讯，酷派集团(02369)发布截至2024年12月31日止年度业绩，集团收入4.99亿港元，同比增 长62.46%;股东应占亏损2.52亿港元，同比扩大14.13%;每股亏损1.54港仙。 2024年，集团与运营商(中国移动)合作推出了酷派Y70Lite与大观3系列手机，其中大观3系列支持裸眼 3D技术，集团与中国移动共同创立了裸眼3D 产业联盟与终端智能体联盟，推动裸眼3D技术的发展及其 在市场中的应用。此外，集团还在电商平台上推出了Cool50和Cool60等全新智能手机。在功能机领域， 集团凭借多年的技术积累和市场经验，继续保持行业领先地位，为消费者提供高性价比的优质产品。 海外市场方面，2024年，集团在海外市场快速扩张，整体经营业绩呈现强劲增长态势。集团聚焦全球高 增长市场，产品覆盖中低价格段，以自有品牌为基础，进一步开拓定制需求市场，渠道以线下代理商为 核心，同步发展跨境电商分销客户。截至2024年12月31日，集团成功进入中东非、东欧、亚洲及拉美等 区域的20多个国家或区域，同时开拓SHEIN、TIKTOK、速卖通、TEMU、Lazada等十多个跨境电商平 台的分销客户，并保持稳定 ...

Financial Performance - Revenue for the year ended December 31, 2024, was HKD 499,332,000, representing a 62.46% increase from HKD 307,363,000 in 2023[4] - The company reported a loss before tax of HKD 250,514,000 for 2024, which is a 7.05% increase compared to a loss of HKD 234,015,000 in 2023[4] - Loss attributable to owners of the company for the year was HKD 252,158,000, reflecting a 14.13% increase from HKD 220,931,000 in the previous year[4] - The company reported a comprehensive loss of HKD 301,304,000 for the year, compared to HKD 239,450,000 in 2023, indicating a worsening overall financial performance[6] - The group recorded a net loss of HKD 252 million for the year ending December 31, 2024, with a net current liability of HKD 657 million[11] - The group reported a pre-tax loss of HKD 85,090,000 for 2024, compared to a pre-tax loss of HKD 14,646,000 in 2023, indicating a significant increase in losses[38] - The company reported a total liability of HKD 2,615,813,000, up from HKD 2,344,279,000 in the previous year[30] - The group recorded a pre-tax loss of approximately HKD 250.51 million for the year, compared to a loss of HKD 234.02 million in the previous year[68] Revenue Breakdown - The mobile phone segment generated revenue of HKD 311,803,000, up 49.7% from HKD 208,432,000 in the previous year[34] - Cryptocurrency business revenue surged to HKD 97,684,000, compared to HKD 8,539,000 in 2023, marking an increase of 1,044.5%[34] - Rental income for the year was HKD 89.8 million, slightly down from HKD 90.4 million in 2023[12] - Revenue from government grants and subsidies increased to HKD 20,344,000 in 2024 from HKD 2,699,000 in 2023, reflecting a growth of approximately 653%[37] Assets and Liabilities - Total non-current assets as of December 31, 2024, amounted to HKD 3,969,875,000, slightly down from HKD 3,992,460,000 in 2023[7] - Current assets totaled HKD 445,871,000, a marginal increase from HKD 443,493,000 in the previous year[7] - The company’s total liabilities decreased from HKD 1,553,821,000 in 2023 to HKD 1,103,367,000 in 2024, indicating improved financial stability[7] - The total assets as of December 31, 2024, amounted to HKD 4,415,746,000, a slight decrease from HKD 4,435,953,000 in 2023[30] - The group’s net asset value decreased to HKD 1,799,933 thousand in 2024 from HKD 2,091,674 thousand in 2023[8] Cost and Expenses - Gross profit for the year was HKD 72,319,000, down from HKD 107,416,000 in 2023, indicating a decline in gross margin[5] - The cost of sales increased to HKD 337,587,000 in 2024, up from HKD 188,699,000 in 2023, representing an increase of about 79%[38] - The company experienced a significant increase in financing costs, rising from HKD 8,004,000 in 2023 to HKD 40,803,000 in 2024[5] - The group’s employee benefit expenses, including director remuneration, increased to HKD 105,345,000 in 2024 from HKD 97,330,000 in 2023, reflecting an increase of about 8%[38] - Administrative and other operating expenses increased by 9.37% to approximately HKD 298.84 million, while the percentage of these expenses to total revenue decreased from 88.89% to 59.85%[59] Cash Flow and Liquidity - As of December 31, 2024, the group had cash and cash equivalents of HKD 65 million, raising doubts about its ability to continue as a going concern[11] - The cash and cash equivalents at the end of the reporting period amount to HKD 65,145,000, an increase from HKD 63,547,000 in 2023, showing a growth of 2.5%[52] - The total trade receivables increased to HKD 97,209,000 in 2024, compared to HKD 70,422,000 in 2023, which is an increase of about 38%[44] Strategic Initiatives - The group is actively seeking opportunities in the Web 3.0 digital currency business starting from the second half of 2023[9] - The group is reassessing its business strategy in light of potential opportunities from the fifth-generation wireless system market[16] - The group is considering measures to enhance control over production costs and expenses to achieve profitability and positive cash flow[16] - The group intends to pursue upstream acquisitions in the digital currency sector in 2025, targeting companies involved in cryptocurrency mining and custody services to enhance operational efficiency and reduce costs[90] Market and Product Development - The company launched the Coolpad Y70 Lite and the Daguang 3 series smartphones in collaboration with China Mobile, with the Daguang 3 series supporting naked-eye 3D technology[79] - The company focuses on differentiated products, emphasizing the application of AI and 3D technology, and has launched multiple smartphones supporting naked-eye 3D functionality[82] - The group intends to expand its product line to include smart wearables, smart education, smart home, security, and health sectors, leveraging AI, IoT, and cloud computing technologies[86] Governance and Compliance - The company has not held an annual general meeting due to the delay in completing the annual performance review for the year ending December 31, 2023[107] - The chairman and CEO roles are currently held by the same individual, which the board believes does not impair the balance of rights and powers between the board and management[105] - The group has adopted a securities trading and conduct code in compliance with the listing rules[97]

Revenue Performance - Total revenue for the six months ended June 30, 2024, was HKD 252.3 million, an increase of 47.1% compared to HKD 171.5 million for the same period in 2023[7]. - The revenue from mobile phone sales and related accessories was HKD 155.1 million, accounting for 61.5% of total revenue, up from HKD 109.5 million or 63.9% in the previous year[13]. - Revenue from cryptocurrency business was HKD 41.2 million, which was not present in the same period last year[13]. - The total rental income for the period was HKD 43.4 million, contributing 17.2% to total revenue, down from HKD 48.5 million or 28.3% in the previous year[13]. - The group recorded a total of HKD 289.4 million in segment revenue for the six months ended June 30, 2024[130]. - The cryptocurrency segment generated revenue of HKD 41.2 million, while the mobile phone segment generated HKD 167.6 million, and property investment contributed HKD 43.4 million, totaling HKD 252.3 million in external revenue[130]. Profit and Loss - The company reported a pre-tax loss of HKD 90.6 million, a decrease of 25.4% from a loss of HKD 121.4 million in the prior year[7]. - Net loss attributable to shareholders was HKD 90.2 million, down 23.0% from HKD 117.1 million in the previous year[7]. - Basic and diluted loss per share improved to HKD 0.55, a 36.0% reduction from HKD 0.86 in the same period last year[7]. - The overall gross profit for the reporting period was HKD 53.5 million, down from HKD 67.8 million in the same period of 2023, resulting in a gross margin of 21.2% compared to 39.5%[14]. - The total comprehensive loss for the period was HKD 133,988,000, a decrease of 21.4% from HKD 170,483,000 in the prior year[104]. - The company reported a net loss of HKD 133,988 thousand for the six months ended June 30, 2024, compared to a net loss of HKD 170,500 thousand for the same period in 2023, showing an improvement in loss by about 21.4%[110]. Assets and Liabilities - Non-current assets as of June 30, 2024, were HKD 3,918.7 million, slightly down from HKD 3,992.5 million at the end of 2023[8]. - Current assets increased to HKD 652.4 million from HKD 443.5 million at the end of 2023[8]. - The company's total liabilities increased to HKD 1,390,859 thousand as of June 30, 2024, compared to HKD 790,458 thousand at the end of 2023, reflecting a rise of approximately 76%[108]. - The company's net asset value decreased to HKD 1,962,402 thousand from HKD 2,091,674 thousand, indicating a decline of about 6.2%[108]. - The company reported cash and cash equivalents of HKD 138,348,000, an increase from HKD 63,547,000 at the end of 2023[106]. - The company’s current liabilities totaled HKD 1,217,862,000, down from HKD 1,553,821,000 at the end of 2023[106]. Financing and Investments - The company raised new bank and other borrowings amounting to HKD 630,719 thousand during the first half of 2024, compared to HKD 221,488 thousand in the same period of 2023, indicating a significant increase in financing activities[115]. - The group secured bank financing of RMB 430 million (approximately HKD 462 million) during the period, with unused bank credit totaling RMB 357 million (approximately HKD 384 million) as of June 30, 2024[119]. - The company has not made any significant investments or acquisitions that account for 5% or more of its total asset value as of June 30, 2024[42][43]. - The company did not conduct any equity fundraising activities during the six months ending June 30, 2024, and has not detailed any major investment or capital asset plans for the coming year[50]. Operational Developments - The company is actively exploring opportunities in the Web 3.0 cryptocurrency business starting in the second half of 2023[2]. - The company has diversified its product line to include over ten categories, such as smart wearables, smart health devices, and smart home security products[32]. - The company plans to enhance its smartphone development and integrate AI technology into its product offerings, focusing on the elderly market with 5G non-smartphones[36]. - The company aims to expand its product line to include smart tablets and smartwatches while deepening its presence in key overseas markets[36]. - The company launched the Cool50 and Cool60 smartphones on e-commerce platforms and partnered with China Mobile to release the Coolpad Y70Lite[30]. Management and Governance - The company has established a three-member independent audit committee to oversee financial reporting and compliance matters[50]. - The company’s management has discussed the accounting policies and internal controls during the review of the interim results[50]. - The company has not held an annual general meeting due to delays in the annual performance review, affecting compliance with corporate governance codes[85]. - The company plans to hold an annual general meeting at an appropriate time to address director retirements and re-elections[86]. Shareholder Information - As of June 30, 2024, the total issued shares amount to 16,381,007,955[66]. - Chairman Chen Jia Jun holds a direct beneficial interest in 3,131,355,500 shares, representing approximately 19.12% of the total issued share capital[65]. - Jeffrey Steven YASS holds 1,333,340,000 shares, accounting for approximately 8.14% of the total issued share capital[65]. - The average number of issued ordinary shares increased to 16,381,007,955 for the six months ended June 30, 2024, from 13,651,007,955 for the same period in 2023[144]. Future Outlook - The company has not provided specific guidance or outlook for future performance in the upcoming periods[50]. - The board is reassessing its business strategy in light of potential opportunities in the 5G market and aims to strengthen partnerships with various channel business partners[124]. - The company continues to monitor global factors affecting the cryptocurrency market to assess investment risks and opportunities[37].

Financial Performance - In 2023, Coolpad Group Limited reported revenue of HKD 307,363,000, a slight increase of 2% from HKD 299,208,000 in 2022[11] - The company recorded a pre-tax loss of HKD 234,015,000, an improvement from a loss of HKD 629,430,000 in the previous year[11] - The net asset value decreased to HKD 2,091,674,000 from HKD 2,236,477,000 in 2022, reflecting a decline of approximately 6.5%[11] - Gross profit for the year was HKD 107.42 million, with a gross margin of 34.95%, a significant improvement from a gross loss of HKD 52.77 million in the previous year[27] - The company reported a loss before tax of HKD 234.02 million, a 62.82% improvement from a loss of HKD 629.43 million in the previous year[30] - The company recorded a net loss attributable to the owners of the company for the year was HKD (220,931,000), compared to a loss of HKD (625,450,000) in 2022, indicating a significant reduction in losses[128] - The company reported a total loss from discontinued operations of HKD (220,992,000) for the year, which includes losses from previous years[128] Revenue Sources - Revenue from mobile phone sales and related accessories was HKD 181.32 million, accounting for 58.99% of total revenue, showing a slight increase from HKD 180.73 million (60.40%) in the previous year[25] - The company generated HKD 8.54 million in revenue from cryptocurrency operations, which was not applicable in the previous year[24] - The company aims to enhance its mobile business through the development of new sales and marketing strategies, with a focus on e-commerce channels[42] Market Trends - The global smartphone shipment in 2023 was 1.17 billion units, a year-on-year decline of 3.2%, marking the lowest annual shipment in a decade[15] - The company reported a monthly increase in sales during the fourth quarter, indicating a recovery trend following the launch of new products[47] - The global smartphone shipment volume is expected to recover in Q4 2023, with the company aiming to capitalize on this trend to achieve profitability[53] Product Development and Innovation - Coolpad has expanded its business to dozens of countries, focusing on high-growth markets in Southeast Asia, Eastern Europe, the Middle East, and Latin America[15] - New product series such as "Daguang," "Fengshang," and "Cool" have been launched to enhance market share, targeting both entry-level 5G and senior-friendly smartphones[15] - The company is integrating AI voice assistants and large language models into its COOLOS operating system, improving system performance and user experience[16] - The company aims to expand its product line around AI+5G, targeting the elderly consumer market, which is becoming a new growth area due to China's aging population[52] Cost Management - Selling and distribution expenses decreased by 49.85% to HKD 35.70 million, representing 11.62% of total revenue, down from 23.79% in the previous year[28] - Administrative and other operating expenses were reduced by 43.08% to HKD 273.23 million, accounting for 88.89% of total revenue, down from 160.43% in the previous year[29] Corporate Governance - The company has established a risk management and internal control system aimed at managing risks rather than eliminating them, providing reasonable assurance against significant misstatements or losses[85] - The board has established three committees: nomination committee, remuneration committee, and audit committee, each with specific responsibilities[68] - The company is committed to compliance with legal and regulatory requirements, as well as corporate governance policies[68] Shareholder Engagement - The company emphasizes effective communication with shareholders and provides at least 21 days' notice for the annual general meeting[101] - The board of directors does not recommend the payment of any final dividend for the year, considering the company's operational needs[125] Employee and Management Information - The group reported an employee cost of approximately HKD 97.33 million for the year, down from HKD 218.69 million in 2022, with a total of 299 employees as of December 31, 2023[183] - The company has a total of five senior management members, with two earning between HKD 1,000,000 and HKD 1,000,000, three earning between HKD 1,000,001 and HKD 2,000,000[72] Legal and Compliance Issues - The company failed to comply with the listing rules regarding timely financial reporting, specifically the annual results announcement and annual report publication, which violated rules 13.46(2)(a) and 13.49(1) of the listing rules[84] - The company has a zero-tolerance policy towards corruption and conducts regular compliance reviews of its business and management practices[103] Future Outlook - The company aims to focus on the development of AI interaction and optimization of large language models in 2024, alongside promoting domestic hardware platforms for 5G mobile phones[17] - The company plans to improve its rental income from properties by advancing the construction of projects in Shenzhen and Dongguan[52]

Financial Performance - Revenue for the six months ended June 30, 2024, was HKD 252,328,000, representing a 47.1% increase compared to HKD 171,525,000 in the same period of 2023[3] - The company reported a reduced loss before tax of HKD 90,579,000, a 25.4% improvement from a loss of HKD 121,423,000 in the previous year[3] - Net loss attributable to shareholders decreased to HKD 90,221,000, down 23.0% from HKD 117,138,000 in the same period last year[3] - Basic and diluted loss per share improved to HKD 0.55, a 36.0% reduction from HKD 0.86 in the prior year[3] - Total comprehensive loss for the period was HKD 133,988,000, compared to HKD 170,483,000 in the same period of 2023[6] - The group reported a pre-tax loss of HKD 90,221,000 for the six months ended June 30, 2024, compared to a loss of HKD 117,138,000 for the same period in 2023[35] - The group recorded a pre-tax loss of HKD 90.6 million for the reporting period, compared to a pre-tax loss of HKD 121.4 million for the six months ended June 30, 2023[57] Assets and Liabilities - The company’s total non-current assets amounted to HKD 3,918,692,000 as of June 30, 2024, slightly down from HKD 3,992,460,000 at the end of 2023[8] - Current assets increased to HKD 652,431,000 from HKD 443,493,000, reflecting improved liquidity[8] - Total current liabilities decreased to HKD 1,217,862,000 from HKD 1,553,821,000, indicating better management of short-term obligations[8] - As of June 30, 2024, the company reported a net current liability of HKD 565 million[13] - Total assets minus current liabilities increased to HKD 3,353,261 thousand from HKD 2,882,132 thousand in the previous year[12] - Non-current liabilities rose significantly to HKD 1,390,859 thousand, up from HKD 790,458 thousand[12] - The company's total debt was approximately HKD 1,152.4 million, with interest rates based on floating rates[51] Revenue Breakdown - For the six months ended June 30, 2024, total revenue was HKD 289.365 million, with external revenue from mobile phones at HKD 196.462 million and cryptocurrency business revenue at HKD 49.456 million[23] - Revenue from mobile phone sales and related accessories for the six months ended June 30, 2024, was HKD 155.086 million, an increase from HKD 109.470 million in the same period of 2023[28] - Revenue from the Mainland China mobile phone segment was HKD 119,501,000, accounting for 71.3% of total revenue, while overseas mobile phone segment revenue was HKD 48,136,000[30] - Total revenue from customer contracts for the six months ended June 30, 2024, was HKD 167,637,000, representing an increase of 36.2% compared to HKD 123,061,000 for the same period in 2023[30] Expenses and Cost Management - Gross profit for the period was HKD 53,521,000, down from HKD 67,760,000, indicating a decline in gross margin[5] - Selling and distribution expenses increased to HKD 14.7 million, representing 5.8% of total revenue, down from 7.5% in the previous year[44] - Administrative and other operating expenses rose to HKD 149.2 million, accounting for 59.1% of total revenue, a decrease from 66.3% in the same period last year[46] - The group is considering measures to strengthen cost control across various production costs and expenses to achieve profitability and positive cash flow[20] - The total employee cost, including director remuneration, was approximately HKD 53.6 million for the reporting period, compared to HKD 45.5 million for the same period last year[74] Liquidity and Financing - The company has unutilized bank credit facilities amounting to HKD 384 million as of June 30, 2024[14] - The company has secured bank loans amounting to RMB 430 million (approximately HKD 462 million) during the reporting period[14] - The group has existing undrawn loan financing of RMB 480 million (equivalent to HKD 516 million) from related party Jingji Group Limited, maturing on December 31, 2025[20] - The group is actively negotiating with banks to secure additional bank credit, including a standby credit of RMB 300 million (equivalent to HKD 322 million), pending final bank approval[20] - Cash and cash equivalents stood at HKD 138 million, raising concerns about the company's ability to continue as a going concern[13] Strategic Initiatives - The group is reassessing its business strategy in light of potential opportunities from the 5G wireless market and plans to expand partnerships with various channel business partners[20] - The group plans to deepen the integration of AI technology into its products and enhance system stability and user experience in the domestic market[67] - The group aims to expand its product line internationally, including smart tablets and smartwatches, while focusing on key regional markets to solidify its overseas business foundation[69] - The group is committed to technological innovation and market orientation, enhancing R&D in AI and blockchain technologies to expand its smart ecosystem product line[70] Market and Product Development - The smartphone market in China saw a shipment of 124 million units, representing a year-on-year growth of 17.6% and accounting for 84.4% of total smartphone shipments[59] - The group launched the naked-eye 3D smartphone series in collaboration with China Mobile and established alliances to promote naked-eye 3D technology[60] - The group expanded its product line to include over ten categories, such as smart wearables, smart health devices, and smart security products[61] - The group successfully entered several high-growth markets, including Southeast Asia and Eastern Europe, and developed distribution channels through cross-border e-commerce platforms[62] - The group has applied for over 10,000 patents in the communications field, including more than 100 related to 5G technology[64] Corporate Governance - The chairman and CEO roles are currently held by the same individual, which the board believes does not harm the balance of power and allows for effective decision-making[83] - The company will arrange to hold an annual general meeting at an appropriate time to address director resignations and re-elections[84] - Trading of the company's shares has been suspended since April 2, 2024, and will continue until further notice[86] - The group has not proposed any interim dividends for the reporting period[76] Other Notable Information - The company recorded rental income of HKD 43.4 million for the period, a decrease from HKD 48.5 million for the same period last year[14] - The group received government grants and subsidies totaling HKD 19,691,000 during the reporting period, significantly higher than HKD 1,177,000 in the same period of 2023[30] - There were no significant events after the reporting period[39] - Forward-looking statements made by the board are subject to risks and uncertainties that could lead to significant differences from actual performance[87]

Financial Performance - For the year ended December 31, 2023, the total revenue was HKD 307,363,000, representing a 2.73% increase from HKD 299,208,000 in 2022[4] - The pre-tax loss decreased significantly by 62.82% to HKD 234,015,000 from HKD 629,430,000 in the previous year[4] - The loss attributable to owners of the company was HKD 220,931,000, a reduction of 64.68% compared to HKD 625,450,000 in 2022[4] - The gross profit for the year was HKD 107,416,000, a recovery from a gross loss of HKD 52,773,000 in the previous year[6] - Total comprehensive loss for the year amounted to HKD 239,450,000, down from HKD 758,554,000 in the prior year[7] - Basic and diluted loss per share improved to HKD 1.54 from HKD 4.58 in 2022[7] - The group reported a net loss of HKD 221 million for the year ending December 31, 2023[14] - The company recorded a pre-tax loss of HKD 234.02 million for the year, an improvement from a loss of HKD 629.43 million in the previous year[74] Assets and Liabilities - Non-current assets increased to HKD 3,992,460,000 from HKD 3,816,929,000 in the previous year[9] - Current assets decreased slightly to HKD 443,493,000 from HKD 456,258,000 in 2022[9] - As of December 31, 2023, the net current liabilities amounted to HKD 1,110 million, a decrease from HKD 1,203 million in 2022[14] - Total current liabilities decreased to HKD 1,553,821 thousand from HKD 1,659,562 thousand in the previous year, reflecting a reduction of approximately 6.4%[14] - The total assets less current liabilities increased to HKD 2,882,132 thousand from HKD 2,613,625 thousand, representing an increase of approximately 10.3%[14] - Non-current liabilities rose significantly to HKD 790,458 thousand from HKD 377,148 thousand, indicating an increase of approximately 109.0%[14] - The company's cash and cash equivalents balance was HKD 64 million as of December 31, 2023, raising concerns about its ability to continue as a going concern[14] Revenue Segments - Total revenue for the year ended December 31, 2023, was HKD 322.5 million, with mobile phone segment contributing HKD 223.6 million, property investment segment HKD 90.4 million, and cryptocurrency segment HKD 8.5 million[32] - Revenue from mobile phone sales and related accessories was HKD 181,327,000, slightly up from HKD 180,735,000 in the previous year[38] - The company generated HKD 8,539,000 in revenue from cryptocurrency operations, a new income source not present in the previous year[38] - Revenue from overseas customers increased significantly to HKD 44,739,000 from HKD 30,943,000, marking a growth of 44.7%[34] Expenses and Cost Management - Sales and distribution expenses decreased by 49.85% to approximately HKD 35.70 million, down from HKD 71.18 million in the previous year, primarily due to a restructuring of the distribution channel[70] - Administrative and other operating expenses reduced by 43.08% to HKD 273.23 million, compared to HKD 480.03 million in the previous year, with the percentage of total revenue decreasing from 160.43% to 88.89%[73] - Research and development expenses for the year amounted to HKD 49,684,000, significantly down from HKD 167,743,000 in the previous year, representing a decrease of about 70.4%[45] - The company incurred financing costs of HKD 15,177,000 in 2023, down from HKD 16,973,000 in 2022, representing a decrease of approximately 10.6%[47] Capital and Fundraising Activities - The company raised approximately HKD 54.81 million, HKD 26.99 million, and HKD 8.28 million from the issuance of shares in September and October 2023[82] - The total number of shares issued in the recent fundraising was 2,730,000,000 at a subscription price of HKD 0.033 per share[82] - The company raised approximately HKD 168 million through the issuance of 600 million new ordinary shares at a price of HKD 0.28 per share[89] - 90% of the raised funds, amounting to approximately HKD 788.9 million, is allocated for establishing new business in China[89] Strategic Initiatives and Future Outlook - The company has plans for market expansion and new product development, although specific details were not disclosed in the earnings call[3] - The group plans to actively seek opportunities in the Web 3.0 digital currency business starting from the second half of 2023[12] - The company aims to strengthen its financial position through the recent capital raising activities[83] - The overall strategy includes a combination of market expansion and potential mergers and acquisitions to strengthen its competitive edge[89] Compliance and Governance - The audit committee, consisting of three independent non-executive directors, has reviewed the accounting principles and discussed financial reporting matters for the year[114] - The independent auditor has agreed to include the financial data in the group's consolidated financial statements for the year ending December 31, 2023[115] - The company has established a policy for handling and disclosing inside information to ensure strict compliance and internal control measures[113] Market Conditions - In 2023, global smartphone shipments reached 1.17 billion units, a decrease of 3.2% year-on-year, marking the lowest annual shipment in a decade[93] - The smartphone market showed signs of recovery with a 1% decline in Q3 2023, followed by an 8% growth in Q4 2023[93]

Financial Performance - The total revenue for the six months ended June 30, 2023, was HKD 171.5 million, an increase of 22.1% compared to HKD 140.5 million for the same period in 2022[8]. - The pre-tax loss for the period was HKD 121.4 million, a reduction of 59.5% from a loss of HKD 300.1 million in the previous year[8]. - The net loss attributable to shareholders was HKD 117.1 million, down 61.4% from HKD 303.4 million in the prior year[8]. - The basic and diluted loss per share improved to HKD 0.86 from HKD 2.23 year-on-year, reflecting a 61.4% decrease in loss[8]. - The overall gross profit for the six months ended June 30, 2023, was HKD 67.8 million, compared to a gross loss of HKD 60.8 million for the same period in 2022, marking a significant turnaround[15]. - The company reported a total comprehensive loss for the period of HKD 170,483,000, compared to HKD 356,933,000 in the same period last year, showing a substantial improvement[87]. - The company reported a net loss attributable to shareholders of HKD 170,500 for the six months ended June 30, 2023, compared to a loss of HKD 356,752 in the same period of 2022, indicating an improvement of 52.3%[93]. Revenue Breakdown - Revenue from mobile phone sales and related accessories was HKD 109.5 million, accounting for 63.9% of total revenue, down from HKD 132.2 million (94.1%) in the previous year[12]. - Wireless application service revenue increased to HKD 13.6 million, representing 7.9% of total revenue, compared to HKD 8.3 million (5.9%) in the prior year[12]. - Rental income, newly classified as part of total revenue, amounted to HKD 48.4 million, contributing 28.2% to total revenue[12]. - The mobile phone segment generated external customer revenue of HKD 123,061,000, down from HKD 140,455,000 in the previous year, reflecting a decrease of about 12.4%[108]. - The property investment segment reported external customer revenue of HKD 48,464,000, consistent with the previous year's revenue of HKD 48,336,000, showing a slight increase of 0.3%[108]. Cost Management - Sales and distribution expenses decreased to HKD 12.9 million, down 77.7% from HKD 57.9 million in the prior year, representing 7.5% of total revenue compared to 41.2% in 2022[16]. - Administrative expenses were reduced to HKD 69.0 million, a decrease of 56.1% from HKD 157.3 million in the previous year, accounting for 40.2% of total revenue compared to 112.0% in 2022[17]. - The cost of sales for the period was HKD 93,100,000, down from HKD 180,319,000 in the previous year, indicating improved cost management[118]. - The company incurred financing costs of HKD 6,522,000, a decrease from HKD 9,709,000 in the previous year, indicating improved cost management[84]. Assets and Liabilities - Non-current assets as of June 30, 2023, were HKD 3,758.6 million, a slight decrease from HKD 3,816.9 million at the end of 2022[9]. - Cash and cash equivalents decreased to HKD 182.4 million from HKD 234.7 million at the end of 2022[9]. - The company’s total equity decreased to HKD 2,069,905 from HKD 2,236,477, a decline of 7.4%[91]. - Total current liabilities decreased to HKD 1,521,740 from HKD 1,659,562, a reduction of 8.3%[91]. - Non-current liabilities increased to HKD 574,492 from HKD 377,148, a rise of 52.2%[91]. - Total liabilities as of June 30, 2023, were HKD 1,460,655,000, up from HKD 1,363,794,000 at the end of 2022, indicating an increase of about 7.1%[111]. Strategic Initiatives - The company aims to enhance its R&D capabilities and become a key player in the 5G and AI sectors[3]. - The company has restructured its channel strategy, establishing a three-pronged approach involving operators, e-commerce, and offline channels, covering 28 provinces and 186 cities in China by June 30, 2023[35]. - The company launched three new smartphone models on April 3, 2023, including the Cool 30, Fengshang 40, and Coolpad Daguang 40s, all equipped with the self-developed COOLOS 2.0 system[35]. - The company aims to expand its product line beyond smartphones to include AIoT products, targeting six categories of smart peripheral devices[40]. - The company is focusing on expanding its presence in overseas markets, particularly in Latin America, the Middle East, Africa, and Southeast Asia[39]. Shareholder Information - As of June 30, 2023, Mr. Chen Jia Jun holds a total of 3,131,355,500 shares, representing approximately 22.94% of the company's issued share capital[59]. - Jeffrey Steven Yass controls 1,600,000,000 shares, which accounts for about 11.72% of the company's issued share capital[61]. - Liu Feng holds 920,260,000 shares directly and an additional 500,000,000 shares, totaling 1,420,260,000 shares, representing approximately 10.40% of the company's issued share capital[61]. - The company has 556,238,696 unexercised share options remaining under its share option plan as of June 30, 2023[65]. - The company’s major shareholders include Wei Hui Investment Limited, which holds 2,331,355,500 shares, representing 17.08% of the issued share capital[61]. Governance and Compliance - The company has maintained compliance with corporate governance codes, although there are noted deviations regarding the separation of roles between the chairman and CEO[80]. - The audit committee reviewed the unaudited interim results for the six months ended June 30, 2023, and discussed accounting policies and internal control matters with senior management[52]. - The company has implemented an information disclosure policy to handle and disclose insider information promptly[51]. Future Outlook - The company plans to invest in system development to improve performance in storage systems, memory management, network subsystems, and power management in the second half of 2023[39]. - The management has indicated a focus on improving operational efficiency and exploring new market opportunities to drive future growth[82].