IDT INT'L(00167) - 2024 - 中期财报

Financial Performance - Turnover for the six months ended June 30, 2023, was nil, compared to HK$2.2 million for the same period in 2022[5] - Gross profit was nil for 1H2023, while there was a gross loss of HK$11.0 million in 1H2022[5] - Total operating expenses decreased to HK$5.2 million in 1H2023 from HK$37.1 million in 1H2022, representing a reduction of approximately 86%[5] - Loss for the period amounted to HK$6.8 million, significantly improved from a loss of HK$49.9 million in 1H2022[5] - Loss before taxation for the period was HK$6.8 million, compared to HK$49.9 million in the previous year[7] - Total comprehensive loss for the period was HK$6.9 million, down from HK$37.99 million in 1H2022[7] - The company reported no revenue from sales during the period, indicating a complete halt in operations compared to the previous year[5] - Basic and diluted loss per share decreased to HK$0.26 from HK$1.92 year-over-year[8] - Total comprehensive loss for the six months ended June 30, 2023, was HK$6,874,000, a significant improvement from a loss of HK$37,991,000 in the same period of 2022[8] Cash Flow and Liabilities - Net cash generated from operating activities was HK$725,000, compared to a net cash used of HK$30,573,000 in the prior year[14] - Cash and cash equivalents at the end of the period increased to HK$616,000 from HK$2,647,000 at the end of June 2022[14] - Current liabilities totaled HK$335,053,000 as of June 30, 2023, slightly up from HK$330,856,000 at the end of 2022[9] - Net liabilities stood at HK$334,437,000, compared to HK$327,563,000 at the end of 2022[9] - The company’s equity attributable to owners decreased to HK$334,530,000 from HK$327,656,000 at the end of 2022[9] - As of June 30, 2023, the Group's current liabilities exceeded current assets by approximately HK$334,437,000, and total liabilities exceeded total assets by the same amount[30] - The Group recorded net current liabilities of approximately HK$334.4 million, an increase of approximately HK$6.8 million compared to FY2022[100] - The total outstanding amount of borrowings as of June 30, 2023, was approximately HK$56.9 million, slightly down from approximately HK$57.6 million in FY2022[100] Operational Status and Future Plans - The company is engaged in investment holdings and the design, development, manufacturing, sales, and marketing of various electronic products[4] - The Group is implementing cost control measures and seeking new business opportunities to enhance profitability and improve future cash flow[32] - The Group is negotiating with creditors to restructure existing liabilities and exploring alternative financing sources to strengthen its capital base[34] - The Group is expanding its product portfolio to meet new customer demands, having launched its own online retail platform and established two online stores on foreign platforms in December 2023[34] - The Group's operations are gradually resuming in the first quarter of 2024, focusing on the sales of electronic products under the "Oregon Scientific" trademark[88] - The Group established its own online retail platform and new online stores on Noon and Mercado Libre to enhance market awareness of the "Oregon Scientific" brand[88] - The Group secured confirmed orders exceeding HK$70 million, expected to be fulfilled in the third quarter of 2024[98] Legal and Governance Issues - The Company received a statutory demand from a creditor for HK$15,000,000, with a deadline of three weeks to pay, or face a winding-up petition[17] - The Group is subjected to several legal proceedings, with many unresolved due to insufficient funds[30] - There is significant uncertainty regarding the Group's ability to continue as a going concern[31] - The management is working closely with professional advisors to formulate a restructuring plan to address the overall indebtedness of the Company[17] - The Group has been involved in several litigations, but management believes that any potential legal liabilities will not have a material impact on the financial position or results of the Group[87] - The Company has complied with all provisions of the Corporate Governance Code, except for deviations from Code Provision C.2.1 and C.1.8[116] - The roles of chairman and CEO are currently held by Zhu Yongning, following the retirement of the previous chairman in June 2019[117] - No insurance cover for legal actions against Directors was arranged during 1H2023 due to budget constraints[118] Shareholder Information - As of June 30, 2023, Zhu Yongning holds 753,997,995 shares, representing 29.00$259,999,000[70] Audit and Compliance - The Audit Committee, comprising one independent non-executive director, has reviewed the unaudited financial results for 1H2023[121] - The preparation of the Interim Financial Statements requires management to make judgments and estimates that may differ from actual results[20] - The Interim Financial Statements have been prepared in accordance with the applicable disclosure requirements and accounting standards[20]