Financial Performance - The company reported revenue of HKD 15,612,000 for the six months ended June 30, 2024, a decrease of 66.2% compared to HKD 46,206,000 in the same period of 2023[7]. - Gross profit for the same period was HKD 6,985,000, compared to a gross loss of HKD 3,851,000 in 2023, indicating a significant turnaround[7]. - The company incurred a loss before tax of HKD 7,179,000, an improvement from a loss of HKD 19,417,000 in the previous year, reflecting a reduction in operational losses[7]. - The company reported a basic loss per share of HKD 5.50 for the first half of 2024, compared to HKD 16.06 in the same period of 2023, showing improvement in per-share losses[7]. - The company reported a total loss and comprehensive expenses of HKD 19,262,000 for the six months ended June 30, 2024, compared to a loss of HKD 7,443,000 for the same period in 2023[11]. - The company reported a basic loss attributable to owners of HKD 7,443,000 for the six months ended June 30, 2024, compared to a loss of HKD 19,262,000 for the same period in 2023, representing a significant improvement[50]. - The total loss and comprehensive expenses for the six months ended June 30, 2024, were approximately HKD 7.4 million, compared to HKD 19.3 million for the same period in 2023[78]. Assets and Liabilities - Total assets as of June 30, 2024, were HKD 63,302,000, down from HKD 71,487,000 as of December 31, 2023, indicating a decrease in asset base[9]. - The company's net assets decreased to HKD 54,916,000 from HKD 62,359,000, reflecting a decline in shareholder equity[9]. - The total assets of the company as of June 30, 2024, were HKD 78,742 thousand, down from HKD 107,672 thousand as of December 31, 2023, indicating a decrease of approximately 26.9%[26]. - The total liabilities of the company as of June 30, 2024, were HKD 23,826 thousand, a decrease from HKD 45,313 thousand as of December 31, 2023, reflecting a reduction of approximately 47.4%[26]. - The company's total liabilities decreased from HKD 6,271,000 as of December 31, 2023, to HKD 123,000 as of June 30, 2024, reflecting a significant reduction in obligations[56]. Cash Flow and Liquidity - The company had cash and cash equivalents of HKD 964,000 as of June 30, 2024, down from HKD 22,099,000 at the end of 2023, highlighting liquidity challenges[9]. - Cash and cash equivalents decreased by HKD 21,135,000 during the six months ended June 30, 2024, compared to an increase of HKD 18,671,000 in the same period of 2023[14]. - The company’s cash flow from operating activities was a net outflow of HKD 1,442,000 for the six months ended June 30, 2024[14]. - Cash and cash equivalents decreased to HKD 1.0 million from HKD 22.1 million as of December 31, 2023[86]. Revenue Segmentation - Revenue from the clothing products segment was HKD 3,000,000, while the innovative supply chain management solutions segment generated HKD 12,566,000 in revenue[22]. - Revenue from the innovative supply chain management solutions division in China was HKD 12,566 thousand for the six months ended June 30, 2024, with no revenue reported in the same period of 2023[41]. - The segment profit for the clothing products division was HKD (682) thousand, while the building materials division reported a profit of HKD 2,188 thousand, and the innovative supply chain management solutions division reported a profit of HKD 1,506 thousand[23]. Cost Management - Administrative expenses were reduced to HKD 13,361,000 from HKD 15,151,000, indicating cost control measures[7]. - Total employee benefit expenses for the period amounted to HKD 7,305,000, down from HKD 11,501,000 in the previous year, indicating a reduction of approximately 36%[46]. - Selling and distribution expenses decreased from approximately HKD 2.4 million to about HKD 0.7 million, attributed to cost control measures in marketing expenses[74]. - Financial costs decreased from approximately HKD 1.3 million to about HKD 0.7 million, primarily due to a reduction in bank borrowings[76]. Strategic Focus - The company is focusing on improving operational efficiency and exploring new market opportunities to enhance future performance[7]. - The company plans to focus on expanding its innovative supply chain management solutions and construction materials agency services[18]. - The company has established stable business partnerships to promote its innovative supply chain management solutions, aiming to expand its customer base[85]. - The company has ceased its nutritional supplement business due to unsatisfactory financial performance, which will not be reported as a separate segment going forward[18]. Share Capital and Governance - The company completed a share split, changing the par value of each share from HKD 0.1 to HKD 0.01, effective July 26, 2024[65]. - The total issued share capital of the company is 135,450,000 shares as of June 30, 2024[100]. - Beaming Elite holds 74,048,000 shares, representing 54.67% of the issued share capital as of June 30, 2024[99]. - Arena Investors, LP holds 25,880,000 shares, accounting for 19.11% of the issued share capital[99]. - The company has complied with the corporate governance code, except for a deviation regarding board gender diversity due to the removal of a female director on October 26, 2023[105]. Audit and Compliance - The audit committee reviewed the unaudited condensed consolidated financial statements for the six months ended June 30, 2024, and confirmed compliance with applicable accounting standards and GEM listing rules[111]. - The company established an audit committee on April 16, 2018, consisting of three independent non-executive directors[110].
细叶榕科技(08107) - 2024 - 中期财报