Financial Performance - For the six months ended June 30, 2024, the group recorded revenue from continuing operations of approximately HKD 24.82 million, a decrease of 28.3% compared to HKD 34.58 million for the same period in 2023[2]. - The loss attributable to equity shareholders for the six months ended June 30, 2024, was approximately HKD 1.70 million, compared to a loss of HKD 0.24 million for the same period in 2023[2]. - Gross profit for the six months ended June 30, 2024, was HKD 4.78 million, down from HKD 7.61 million in the same period of 2023, reflecting a gross margin decrease[3]. - The pre-tax loss for the period was HKD 1.70 million, significantly improved from a pre-tax loss of HKD 12.96 million in the same period of 2023[3]. - The company reported a basic loss per share of HKD 4.44 for the period, compared to a loss of HKD 0.10 for the same period in 2023[7]. - The company reported a loss attributable to equity shareholders from continuing operations of HKD 1,696,000 for the six months ended June 30, 2024, compared to a profit of HKD 12,773,000 for the same period in 2023[26]. - The company reported a loss from discontinued operations of HKD 12,537,000 in the first half of 2023, which was not present in the first half of 2024[26]. Revenue Breakdown - Revenue from metal casting products for the six months ended June 30, 2024, was HKD 24,816,000, a decrease of 28.4% compared to HKD 34,581,000 for the same period in 2023[16]. - Revenue from Germany accounted for HKD 22,468,000, a decrease of 27.8% from HKD 31,131,000 in the same period of 2023[20]. - Major customer A contributed HKD 5,627,000 to revenue, while major customer B contributed HKD 4,095,000, both showing a decline compared to the previous year[22]. - The metal casting business experienced a revenue decline of about 28.22% due to challenges in the global economic environment, despite an increase in average selling prices[39]. Cash Flow and Liquidity - The net cash used in operating activities for the six months ended June 30, 2024, was HKD (6,135,000), compared to HKD (3,377,000) for the same period in 2023, indicating a worsening cash flow situation[13]. - The total cash and cash equivalents at the end of June 30, 2024, were HKD 3,801,000, a decrease from HKD 5,483,000 at the beginning of the period[13]. - The company reported a net cash inflow from financing activities of HKD 4,827,000 for the six months ended June 30, 2024, compared to HKD 2,572,000 in the same period of 2023[13]. - As of June 30, 2024, the company's cash and cash equivalents were approximately HKD 3.8 million, down from HKD 5.5 million as of December 31, 2023[48]. - The company maintains a prudent treasury policy, ensuring a robust liquidity position and sufficient cash and cash equivalents[51]. Assets and Liabilities - Total assets less current liabilities as of June 30, 2024, were HKD 25.46 million, down from HKD 28.94 million as of December 31, 2023[8]. - Current liabilities increased to HKD 19.11 million as of June 30, 2024, compared to HKD 12.55 million as of December 31, 2023[8]. - The net asset value decreased to HKD 20.30 million as of June 30, 2024, from HKD 22.38 million as of December 31, 2023[9]. - The total trade and other payables amounted to HKD 9,725,000 as of June 30, 2024, compared to HKD 9,440,000 as of December 31, 2023, indicating a slight increase of about 3%[31]. - The company's debt-to-equity ratio as of June 30, 2024, was 1.97%, calculated based on total interest-bearing liabilities divided by total equity[49]. Dividends and Share Capital - The board of directors does not recommend the payment of an interim dividend for the six months ended June 30, 2024[2]. - The company did not recommend an interim dividend for the six months ended June 30, 2024, consistent with the previous year[26]. - The weighted average number of ordinary shares issued was 38,184,000 for the six months ended June 30, 2024, down from 235,537,000 in the same period of 2023, reflecting a significant reduction in share count[28]. - The company raised approximately HKD 9 million through a rights issue on August 24, 2023, increasing the number of issued ordinary shares from 25,456,000 to 38,184,000[11]. - As of June 30, 2024, the total number of issued shares is 38,184,000, with each share valued at HKD 0.8[50]. Operational Efficiency - Administrative expenses for the period were approximately HKD 7.87 million, a decrease of about 69.61% compared to approximately HKD 25.90 million in the same period of 2023[44]. - The total employee cost for the six months ended June 30, 2024, is approximately HKD 3.98 million, a decrease from HKD 4.48 million for the same period in 2023[56]. - The cost of inventory recognized as an expense decreased to HKD 20,040,000 in the first half of 2024 from HKD 26,968,000 in the same period of 2023, reflecting a reduction of approximately 25%[25]. - The average trade receivables increased significantly to HKD 11,330,000 as of June 30, 2024, compared to HKD 5,707,000 as of December 31, 2023, representing an increase of approximately 98%[30]. - The company's trade receivables aging analysis showed that HKD 5,483,000 was within 30 days as of June 30, 2024, compared to HKD 2,195,000 in the same category as of December 31, 2023, indicating improved collection efficiency[30]. Corporate Governance and Management - The company has not disclosed any new product developments or market expansion strategies in the current report[2]. - The company is currently evaluating the impact of new accounting standards on its performance and financial position[15]. - The company has no significant contingent liabilities as of June 30, 2024, consistent with the previous reporting period[52]. - There are no major capital commitments or significant investments planned as of June 30, 2024[55]. - The company has not granted any stock options under its stock option plan since its adoption in April 2015[60]. - The board of directors and key executives hold a total of 9,923,852 shares, representing 25.99% of the company's issued share capital[57]. - There have been no purchases, sales, or redemptions of the company's securities by the company or its subsidiaries during the six months ended June 30, 2024[62]. - Ms. Hu appointed as Executive Director and Vice Chairman of Zhongbo Data Co., Ltd. (Stock Code: 471) effective May 14, 2024[67]. - Ms. Hu also appointed as Executive Director and CEO of Yuwang Group Holdings Limited (Stock Code: 1536) effective July 2, 2024[67]. Risk Factors - The company faces foreign currency risk primarily from sales to customers in Germany, China, and the United States, with most revenues from European customers denominated in euros[54].
吉盛集团控股(08133) - 2024 - 中期财报