Financial Performance - For the twelve months ending December 31, 2024, the company reported a revenue of HKD 40,340,000, a decrease of 84.6% compared to HKD 262,134,000 for the previous year[4]. - The gross profit for the same period was HKD 2,308,000, down 88.4% from HKD 19,956,000 in the prior year[4]. - The company incurred a loss before tax of HKD 54,005,000, compared to a loss of HKD 33,796,000 in the previous year, representing a 59.6% increase in losses[4]. - The total comprehensive loss for the period was HKD 52,070,000, significantly higher than HKD 23,281,000 in the previous year, marking a 123.5% increase[5]. - The basic and diluted loss per share for the period was HKD 5.55, compared to HKD 4.64 in the previous year[5]. - The group reported a total revenue of HKD 40,340,000 for the twelve months ended December 31, 2024, a significant decrease from HKD 262,134,000 for the same period in 2023, representing a decline of approximately 84.6%[21]. - The group incurred a loss before tax of HKD 54,005,000 for the twelve months ended December 31, 2024, compared to a loss of HKD 33,796,000 for the same period in 2023, indicating a worsening of approximately 59.8%[21]. - The group reported a basic and diluted loss per share of HKD 55.56 for the twelve months ended December 31, 2024, compared to HKD 46.38 for the same period in 2023[28]. - The gross profit margin for the twelve months ending December 31, 2024, was approximately 5.7%, down from 7.6% in 2023[46]. - The loss attributable to shareholders increased to approximately HKD 52.9 million (2023: HKD 31.0 million), mainly due to reduced revenue and gross profit, along with increased financing costs[46]. Assets and Liabilities - The company's current liabilities exceeded current assets by HKD 542,131,000 as of December 31, 2024[7]. - The total assets less current liabilities amounted to HKD 30,163,000, a decrease from HKD 33,290,000 in the previous year[7]. - As of December 31, 2024, total assets were approximately HKD 678.2 million, down from HKD 700.1 million in 2023, while interest-bearing borrowings were approximately HKD 318.0 million[48]. - The current ratio was approximately 0.16 as of December 31, 2024, compared to 0.26 in 2023, indicating a decline in liquidity[48]. - As of December 31, 2024, the group has approximately HKD 296,035,000 in bank borrowings classified as current liabilities, with about HKD 293,037,000 in default[18]. - The company’s other payables increased from HKD 122,621,000 in 2023 to HKD 154,218,000 in 2024, marking a rise of approximately 25.7%[38]. - The aging analysis of trade payables showed a significant increase in amounts overdue by more than 180 days, rising from HKD 20,721,000 in 2023 to HKD 29,076,000 in 2024[40]. - The total trade receivables, net of expected credit loss provisions, decreased from HKD 60,991,000 in 2023 to HKD 53,287,000 in 2024, representing a decline of approximately 12.7%[32]. Revenue Breakdown - The revenue from single-sided PCBs dropped significantly by 99.8%, from HKD 48,431,000 in 2023 to HKD 106,000 in 2024[42]. - The revenue from double-sided PCBs decreased by 84.0%, from HKD 207,350,000 in 2023 to HKD 33,093,000 in 2024[42]. - The company’s revenue from the Chinese market decreased by 89.7%, from HKD 244,879,000 in 2023 to HKD 25,266,000 in 2024[44]. - The group's revenue for the review period was approximately HKD 40.3 million, a decrease of 84.6% compared to HKD 262.1 million in the same period last year, primarily due to a decline in PCB product sales[46]. Cost Management and Operational Focus - The group reported a total employee cost of HKD 17,028,000 for the twelve months ended December 31, 2024, down from HKD 29,230,000 in 2023, reflecting a reduction of approximately 41.6%[25]. - The company is focusing on cost control measures to enhance operational performance and cash flow[13]. - The company is focusing on credit management and optimizing the collection of trade receivables in its LED division, targeting shorter and more profitable projects[61]. - The company emphasizes the importance of increasing R&D efforts to upgrade products, particularly focusing on high-value PCB products for clean environmental applications[61]. Corporate Governance and Management Changes - The company has confirmed compliance with the corporate governance code for the period from January 1, 2024, to December 31, 2024, with some deviations noted[77]. - The audit committee currently consists of four independent non-executive directors as of December 31, 2024[85]. - The company has adopted the standard code for securities trading by directors, confirming compliance by all current directors[84]. - The company has re-complied with listing rules regarding independent non-executive directors after recent appointments[81]. - The board meetings are held regularly, with at least four meetings per year, ensuring high attendance and prompt responses[78]. - The company will continue to monitor and review its corporate governance practices to ensure compliance[79]. - Mr. Wang Bing has been appointed as the executive director effective from November 15, 2024[72]. - Mr. Zhang Weijia has resigned as an independent non-executive director effective from January 13, 2025[72]. - Ms. He Xiumei has been appointed as the executive director and CEO effective from January 16, 2025[72]. - The company's financial year-end date has been changed from December 31 to June 30, effective immediately[75]. Financing and Capital Management - The company completed a share subscription agreement for 133,883,000 shares at HKD 0.10 per share, raising approximately HKD 13.4 million, with plans to use HKD 11.2 million for debt repayment and HKD 2 million for working capital[55]. - The company has conditionally agreed to issue 330,000,000 shares at a subscription price of HKD 0.108 per share, representing approximately 41.08% of the issued share capital before the issuance and about 29.12% after[57]. - The net proceeds from the issuance are approximately HKD 33.14 million, with HKD 27.14 million allocated for repaying outstanding project payables and HKD 6 million for working capital[57]. - The company has entered into a convertible bond agreement for a total principal amount of HKD 16,065,967.80 with an annual interest rate of 8%, which will result in the issuance of 160,659,678 shares upon full conversion[59]. - The net proceeds from the convertible bond issuance are approximately HKD 15.80 million, with HKD 14.00 million used to repay due borrowings and HKD 1.80 million for general working capital[60]. - The capital debt ratio (interest-bearing borrowings to total assets) was approximately 46.89% as of December 31, 2024, compared to 45.92% in 2023[48]. Legal and Operational Challenges - The company is facing several lawsuits related to disputes with suppliers and contractors, with potential claims totaling approximately HKD 1,490,000[63]. - The company has experienced adverse impacts on its operations due to COVID-19 and ongoing geopolitical tensions, affecting its supply chain and overall economic conditions[64]. - The company has not purchased, redeemed, or sold any of its listed securities during the twelve months ending December 31, 2024[68]. Audit and Compliance - The audit committee has been authorized by the board to investigate any activities within its scope, ensuring proper arrangements for independent investigations and follow-up actions[86]. - The unaudited financial statements for the twelve months ending December 31, 2024, have been reviewed by the audit committee, which believes they comply with applicable accounting standards and regulations[86]. - The second interim report for 2024 will be sent to shareholders by March 31, 2025, and will include all information required by listing rules[87].
中华银科技(00515) - 2024 - 中期业绩