Financial Performance - For the six months ended June 30, 2024, the unaudited revenue was approximately HKD 21,628,000, a decrease of 42.3% compared to approximately HKD 37,469,000 for the same period in 2023[2] - The group recorded an unaudited loss attributable to owners of the company of approximately HKD 3,049,000, compared to an unaudited profit of approximately HKD 1,259,000 for the same period in 2023[2] - The total comprehensive loss for the period amounted to HKD 3,125,339, compared to a total comprehensive income of HKD 1,798,853 for the same period in 2023[4] - The gross profit for the six months ended June 30, 2024, was HKD 6,566,824, down from HKD 11,644,338 in the same period of 2023[3] - The basic and diluted loss per share for the period was HKD (0.580), compared to earnings per share of HKD 0.240 for the same period in 2023[5] - The company reported a loss before tax of HKD 3,050,402 for the six months ended June 30, 2024, compared to a profit of HKD 1,257,580 for the same period in 2023[22] - The company reported a net loss of approximately HKD 3,050,000 for the period, compared to a profit of approximately HKD 1,260,000 in the same period of 2023[46] Cash Flow and Assets - The company's cash and cash equivalents decreased to HKD 6,554,583 as of June 30, 2024, from HKD 7,224,481 as of December 31, 2023[6] - The net cash generated from operating activities for the six months ended June 30, 2024, was HKD 631,624, compared to a net cash used of HKD 146,506 in the same period of 2023[12] - The net cash used in investing activities was HKD 5,122,468 for the six months ended June 30, 2024, compared to HKD 548,459 in the previous year[12] - The net cash generated from financing activities was HKD 4,013,397, a significant improvement from the net cash used of HKD 2,783,285 in the same period of 2023[12] - The total assets as of June 30, 2024, amounted to HKD 66,089,327, while total liabilities were HKD 28,530,944, resulting in a net asset position[18] - The company's non-current assets increased to HKD 46,791,892 as of June 30, 2024, compared to HKD 42,542,733 as of December 31, 2023[6] - The company's total liabilities increased to HKD 26,403,817 as of June 30, 2024, compared to HKD 24,698,994 as of December 31, 2023[6] Dividends and Shareholder Information - The company did not recommend any interim dividend for the six months ended June 30, 2024, consistent with the previous year[2] - The company reported a total equity attributable to owners of HKD 40,439,820 as of January 1, 2024, compared to HKD 38,487,371 as of June 30, 2023[10] - Major shareholders include Golden Dice Co., Ltd. with 15.00% and Best Heaven Limited with 6.01% of the company's shares as of June 30, 2024[61] - The company has a total of 37,179,250 stock options outstanding as of June 30, 2024, with an exercise price of HKD 0.20[63] Operational Insights - The company operates in five business segments: sales of smart cards, sales of smart card application systems, financial and management consulting services, scrap metal sales and trading, and media and entertainment[14] - The company expects to continue focusing on expanding its market presence and enhancing its product offerings in the upcoming quarters[10] - The company’s financial performance is expected to improve as it continues to optimize its operational efficiency and explore new market opportunities[10] Accounting and Governance - The company has not adopted new accounting standards that have been issued but not yet effective, which may impact future financial reporting[13] - The audit committee, composed of three independent non-executive directors, reviewed the unaudited interim results for the six months ended June 30, 2024, confirming compliance with applicable accounting standards[64] - The company has adhered to all provisions of the corporate governance code during the six months ended June 30, 2024, except for the separation of the roles of Chairman and CEO[65] - The company has established a set of code of conduct for directors' securities transactions, which complies with GEM Listing Rules[67] Foreign Exchange and Risks - The company is exposed to foreign currency risk primarily from investments in television programs and overseas sales and purchases, mainly denominated in RMB and USD[57] - The company incurred a foreign exchange loss of HKD 595,541 for the six months ended June 30, 2024, compared to a loss of HKD 1,121,053 in the same period of 2023, indicating an improvement[21] Employee and Operational Metrics - The company employed 141 staff as of June 30, 2024, an increase from 126 staff as of December 31, 2023, with employee costs around HKD 11,000,000[48] - Current assets were approximately HKD 19,300,000, a decrease from approximately HKD 26,500,000 as of December 31, 2023, while current liabilities increased to approximately HKD 26,400,000 from approximately HKD 24,700,000[47] Investments and Acquisitions - The investment in television programs increased to HKD 31,935,484 as of June 30, 2024, from HKD 29,735,683 as of December 31, 2023[6] - The fair value gain from investments in television programs was approximately HKD 2,900,000 for the period, compared to HKD 1,620,000 in the same period of 2023[43] - The company entered into a subscription agreement on February 10, 2023, to raise additional capital of HKD 16,500,000 through the issuance of convertible bonds, which have not yet been issued as of June 30, 2024[56] - There were no significant acquisitions or disposals of subsidiaries or associates during the period[50]
品创控股(08066) - 2024 - 中期财报