科联系统(00046) - 2024 - 中期业绩

Financial Statements Condensed Consolidated Statement of Profit or Loss For the six months ended June 30, 2024, the Group's total revenue remained stable at HKD 127.6 million, with gross profit slightly increasing to HKD 68.95 million, and profit for the period stable at HKD 18.04 million, resulting in a marginal increase in basic earnings per share to 7.46 HK cents due to share repurchases Key Profit or Loss Data for H1 2024 | Metric | H1 2024 (HKD thousands) | H1 2023 (HKD thousands) | YoY Change | | :--- | :--- | :--- | :--- | | Revenue | 127,567 | 128,102 | -0.4% | | Gross Profit | 68,951 | 67,629 | +2.0% | | Profit Before Tax | 20,764 | 19,859 | +4.6% | | Profit for the Period | 18,043 | 18,006 | +0.2% | | Profit Attributable to Owners of the Parent | 18,166 | 18,237 | -0.4% | | Basic Earnings Per Share (HK cents) | 7.46 | 7.38 | +1.1% | Condensed Consolidated Statement of Comprehensive Income Total comprehensive income for the period decreased to HKD 16.96 million from HKD 18.14 million in the prior year, primarily due to a foreign exchange loss of HKD 1.08 million from overseas operations - Total comprehensive income for the period decreased from HKD 18.14 million to HKD 16.96 million, primarily due to a shift from foreign exchange gain to loss on overseas operations[4] Condensed Consolidated Statement of Financial Position As of June 30, 2024, the Group maintained a robust financial position with total assets of HKD 666 million, total liabilities of HKD 161 million, and net assets of HKD 505 million, supported by ample cash and cash equivalents of HKD 306 million Key Financial Position Data (As of June 30, 2024) | Metric | June 30, 2024 (HKD thousands) | December 31, 2023 (HKD thousands) | | :--- | :--- | :--- | | Total Non-current Assets | 249,626 | 246,620 | | Total Current Assets | 416,582 | 407,888 | | Total Current Liabilities | (136,847) | (136,535) | | Net Assets | 505,485 | 505,999 | | Cash and Cash Equivalents | 305,633 | 316,145 | Notes to the Financial Statements Company Information, Basis of Preparation and Accounting Policies The Group primarily operates in enterprise application software, IT solutions, and property and treasury investments, with interim financial information prepared under HKAS 34 and new accounting standards having no material impact - The Group's principal activities encompass enterprise software services, IT solutions, and investment[7] - New accounting standard amendments adopted during the period had no material impact on the financial statements[9][11] Operating Segment Information The Group's three operating segments—Application Services, Solutions and Integration Services, and Investment—showed varied performance, with Application Services revenue declining, Solutions and Integration Services growing, and the Investment segment turning to a loss, while a single major customer contributed 31.9% of total revenue Revenue and Results by Operating Segment (For the six months ended June 30) | Segment | Revenue (HKD thousands) - 2024 | Revenue (HKD thousands) - 2023 | Segment Results (HKD thousands) - 2024 | Segment Results (HKD thousands) - 2023 | | :--- | :--- | :--- | :--- | :--- | | Application Services | 70,191 | 75,612 | 14,709 | 14,992 | | Solutions and Integration Services | 56,517 | 51,564 | 14,550 | 12,561 | | Investment | 859 | 926 | (356) | 543 | Revenue from External Customers by Geographical Region (For the six months ended June 30) | Region | Revenue (HKD thousands) - 2024 | Revenue (HKD thousands) - 2023 | | :--- | :--- | :--- | | Hong Kong and Others | 104,680 | 103,213 | | Mainland China | 22,887 | 24,889 | - Revenue from a single major customer amounted to HKD 40.664 million, representing approximately 31.9% of total revenue during the period[21] Income Tax Income tax expense for the period was HKD 2.721 million, with the Group facing inquiries from the Hong Kong Inland Revenue Department regarding R&D deductions and other deductible expenses totaling approximately HKD 1.765 million in protective assessments, for which no additional provision has been made - A subsidiary of the Group is under inquiry and review by the Hong Kong Inland Revenue Department concerning R&D expense deductions and other tax matters, involving protective tax assessments totaling approximately HKD 1.765 million, with the outcome currently uncertain[31] Dividends and Earnings Per Share The Board declared an interim dividend of HKD 0.055 per share, consistent with the prior year, while basic earnings per share increased to 7.46 HK cents, primarily due to a reduction in the weighted average number of ordinary shares from share repurchases - An interim dividend of HKD 0.055 per share was declared, consistent with the prior year[33] - Basic earnings per share increased from 7.38 HK cents to 7.46 HK cents, primarily due to a decrease in the weighted average number of ordinary shares used in the calculation from 247 million to 244 million shares[3][35] Chairman's Report Results and Business Review Despite a subdued market, the Group maintained H1 2024 total revenue at HKD 127.6 million and profit attributable to shareholders at HKD 18.2 million, with gross margin improving to 54.1% due to cost optimization, while application software and IT solutions businesses grew, and the investment segment incurred a loss - Total revenue and net profit remained largely stable year-on-year, but gross margin improved from 52.8% to 54.1%, primarily due to enhanced cost efficiency[42] - The newly launched cloud-native Human Capital Management (HCM) software, Pi-HCM, received positive market feedback, and the enterprise procurement management software business achieved double-digit revenue growth[43][44] - Solutions and Integration Services business revenue grew, establishing expertise in cybersecurity and privacy assessment, successfully securing multiple new projects from Hong Kong government departments[44][45] - The Investment segment shifted from a profit of HKD 0.5 million in the prior year to a loss of HKD 0.4 million, attributed to the disposal of a China office property and asset valuation adjustments[46] Outlook Despite macroeconomic uncertainties, management remains cautiously optimistic, focusing on driving recurring revenue growth through cloud-native software, participating in Hong Kong's smart city initiatives, seeking M&A opportunities, and expanding into overseas markets like ASEAN - Strategic priorities include strengthening SaaS products to drive recurring revenue, leveraging Greater Bay Area technological resources for Hong Kong's Smart City initiatives, and becoming a trusted partner in digital transformation, cybersecurity, and AI[47] - The Group plans to allocate resources to identify M&A opportunities and expand its market presence beyond Hong Kong and Mainland China to regions such as ASEAN countries[47] Financial Review and Other Disclosures The Group maintains a robust financial position with HKD 306 million in cash and cash equivalents, no bank borrowings, and a current ratio of 3.0, while sales and distribution expenses increased by 8.2% and general and administrative expenses decreased by 4.9%, alongside a share repurchase of 2.064 million shares for HKD 4.752 million to enhance shareholder value Financial Ratios (As of June 30, 2024) | Metric | June 30, 2024 | December 31, 2023 | | :--- | :--- | :--- | | Current Ratio | 3.0 | 3.0 | | Gearing Ratio | 24.1% | 22.7% | - The Group repurchased 2,064,000 shares for a total consideration of HKD 4.752 million during the period, contributing to enhanced earnings per share[65] - The Group maintains a healthy liquidity position with HKD 305.6 million in cash and cash equivalents and no bank borrowings[58]