Financial Performance - Revenue for the six months ended June 30, 2024, was approximately HKD 51.81 million, a decrease of about 59.24% compared to HKD 127.12 million for the same period in 2023[8] - Loss attributable to owners of the company for the reporting period was approximately HKD 8.97 million, compared to a profit of HKD 1.32 million for the same period in 2023[8] - Basic loss per share for the reporting period was approximately HKD 0.0544, compared to basic earnings per share of HKD 0.0080 for the same period in 2023[8] - The company recorded a loss of HKD 8,972 thousand for the six months ended June 30, 2024, compared to a profit of HKD 1,235 thousand in the same period of 2023, reflecting a negative shift in performance[10] - The company reported a total comprehensive loss of HKD 4,232 thousand for the six months ended June 30, 2024, compared to a total comprehensive income of HKD 1,554 thousand in the previous year[13] - The company’s basic and diluted loss per share for the six months ended June 30, 2024, was HKD 5.44, compared to earnings of HKD 0.80 per share in the same period of 2023[10] Revenue Breakdown - For the six months ended June 30, 2024, the company reported revenue of HKD 127,122 thousand, a significant increase from HKD 92,311 thousand for the same period in 2023, representing a growth of approximately 37.7%[10] - Total revenue for the six months ended June 30, 2024, was HKD 51,811 thousand, a decrease of 59.3% compared to HKD 127,122 thousand for the same period in 2023[19] - Revenue from finished watches was HKD 16,568 thousand, down 82.0% from HKD 91,914 thousand in the previous year[20] - Revenue from ODM segment was the only operational segment reported, with no other segments contributing to revenue[18] - The company’s geographical revenue breakdown shows significant contributions from Asia (HKD 32,536 thousand) and South America (HKD 10,992 thousand) for the current period[19] Assets and Liabilities - Total assets as of June 30, 2024, amounted to HKD 127,370 thousand, a decrease from HKD 134,072 thousand as of December 31, 2023, showing a decline of approximately 5.5%[11] - The company's current liabilities decreased to HKD 126,235 thousand as of June 30, 2024, from HKD 130,875 thousand at the end of 2023, representing a reduction of about 3.6%[11] - Trade receivables (net of expected credit loss) increased to HKD 30,499 thousand as of June 30, 2024, compared to HKD 17,599 thousand at the end of 2023[25] - Trade payables decreased to HKD 21,865 thousand as of June 30, 2024, from HKD 23,924 thousand at the end of 2023[26] - Trade payables as of June 30, 2024, totaled HKD 22.66 million, a decrease from HKD 28.42 million as of December 31, 2023[29] Cash Flow - Cash and cash equivalents at the end of June 30, 2024, were HKD 627 thousand, a significant drop from HKD 13,804 thousand at the end of 2023, indicating a decrease of approximately 95.5%[11] - The net cash used in operating activities for the six months ended June 30, 2024, was HKD 28,248 thousand, compared to HKD 22,557 thousand for the same period in 2023, reflecting an increase in cash outflow of about 25.5%[15] - The company's cash and bank balances were approximately HKD 0.63 million as of June 30, 2024, down from HKD 11.36 million a year earlier[35] Management and Governance - The company’s board believes that the current management structure, with the same individual serving as both chairman and CEO, is beneficial for effective business planning and decision-making[51] - The company has adopted a code of conduct for securities trading by directors, ensuring compliance with GEM listing rules during the reporting period[52] - The Audit Committee was established on June 20, 2018, in accordance with GEM Listing Rules, with members including Mr. Yu Shou Ning, Ms. Yu Wei Fang, Dr. Liao Yi Rong, and Mr. Ye Yi Lin[53] - The Audit Committee's primary responsibilities include recommending the appointment and removal of external auditors, reviewing financial statements, and overseeing internal control procedures[53] - The financial information in the interim report has not been audited but has been reviewed by the Audit Committee, which believes the performance is prepared in accordance with applicable accounting standards[53] Future Outlook - The company plans to focus on core business development and improve product design to maximize long-term returns for shareholders[31] - The company has no major investment or capital asset plans for the upcoming year beyond what has been disclosed in the interim report[47] - The interim report contains forward-looking statements based on various assumptions regarding the group's current and future business strategies and operating environment[54] Market Conditions - The watch industry confidence index dropped from 48.8 in Q2 2023 to 41.3 in Q2 2024, indicating a decline in market sentiment[31] Shareholder Information - As of June 30, 2024, the company’s directors and senior management hold a total of 93,000,000 shares, representing 56.36% of the total share capital[43] - There were no interim dividends declared for the reporting period, consistent with the previous year[33] - The share option plan allows for a maximum of 100,000,000 shares to be issued, which constitutes 10% of the company's issued shares[49] Securities Transactions - The company did not engage in any purchases, sales, or redemptions of its listed securities during the reporting period[46] - There were no significant investments, acquisitions, or disposals of subsidiaries, associates, or joint ventures during the reporting period[46]
恒伟集团控股(08219) - 2024 - 中期业绩