Financial Performance - For the six months ended June 30, 2024, the revenue was approximately HKD 20,068,000, a decrease of 50.3% compared to HKD 40,365,000 for the same period last year[7] - The loss attributable to owners of the company for the six months ended June 30, 2024, was approximately HKD 7,686,000, an increase from HKD 3,785,000 in the previous year, primarily due to the gain from the sale of a subsidiary in 2023 amounting to HKD 8,756,000[7] - The loss per share attributable to owners from continuing operations for the six months ended June 30, 2024, was approximately HKD 0.1244, compared to HKD 0.0672 for the same period last year[7] - The company recorded revenue of approximately HKD 20,068,000 for the six months ended June 30, 2024, a decrease of 50.3% compared to HKD 40,365,000 in the same period last year[20] - The company reported a pre-tax loss of HKD 7,853,000 for the six months ended June 30, 2024, compared to a loss of HKD 4,661,000 in the same period of 2023[64] - For the six months ended June 30, 2024, the company reported a loss attributable to owners of HKD 7,686,000, compared to a loss of HKD 3,785,000 for the same period in 2023, representing an increase in loss of approximately 103.5%[66] Dividends and Shareholder Returns - The board of directors did not recommend the payment of an interim dividend for the six months ended June 30, 2024, consistent with the previous year[7] - The board does not recommend any interim dividend for the six months ending June 30, 2024, consistent with the previous year[158] Internal Controls and Governance - The company has implemented remedial measures to address deficiencies in internal controls following the independent auditor's report expressing a qualified opinion for the fiscal year ended December 31, 2023[8] - The board is responsible for maintaining effective internal controls and risk management systems to protect shareholder investments[157] - The audit committee reviewed the unaudited condensed consolidated interim financial statements for the six months ending June 30, 2024, confirming compliance with applicable standards[153] - The company has complied with the GEM Listing Rules corporate governance code, except for the combined roles of the Chairman and CEO[150] Revenue Breakdown - Revenue for Wan Gao Xun Ke was approximately HKD 11,471,000, a decrease of 30.4% compared to HKD 16,477,000 in 2023, primarily due to a reduction in hardware and software transactions[14] - Revenue for Shu Li Fang was approximately HKD 2,477,000, a significant decrease of 85.7% from HKD 17,278,000 in 2023, as the focus remained on collaboration with a public transport company[14] - Revenue from computer hardware and software sales was HKD 6,835,000, down 41.5% from HKD 11,613,000 in the previous year[60] - Revenue from technical support and maintenance services was HKD 7,664,000, a decline of 68.2% from HKD 24,071,000 in the prior year[60] - Revenue from Hong Kong was HKD 14,202,000, down 61.8% from HKD 37,102,000 in the previous year[57] - Revenue from regions outside Hong Kong was HKD 5,866,000, an increase of 79.8% from HKD 3,263,000 in the prior year[57] Assets and Liabilities - The total assets of the company as of June 30, 2024, were HKD 334,484,000, compared to HKD 349,884,000 as of June 30, 2023[56] - The total liabilities decreased to HKD 61,676,000 from HKD 66,563,000, reflecting a reduction of 7.5%[31] - The company's total equity as of June 30, 2024, was HKD 247,962,000, down from HKD 260,940,000, indicating a decline of 4.9%[32] - The total borrowings of the company as of June 30, 2024, were approximately HKD 64,034,000, slightly down from HKD 65,033,000 as of December 31, 2023[22] - The company had cash and bank balances of approximately HKD 11,436,000 as of June 30, 2024, compared to HKD 11,595,000 as of December 31, 2023[21] - The company reported a significant increase in inventory, which rose to HKD 465,000 from HKD 121,000, marking a substantial increase of 284.3%[31] Strategic Initiatives - The company focused on risk management to solidify and expand its AI and IT businesses amid geopolitical changes and macroeconomic fluctuations[9] - The company established a joint venture in January 2024 with Kilimanjaro Energy Group and Marvion Inc. to promote sustainable changes in the ESG sector, including the tokenization of carbon credits in the UAE[10] - The company is actively seeking business opportunities and partnerships with IT experts to enhance its existing operations and expand into potential markets in Hong Kong and beyond[15] - The company has begun collaborating with business partners in Dubai to tap into the significant potential market created by the UAE's shift towards a knowledge-based economy[15] - The AI Booster solution includes a simplified AI logistics and CRM system aimed at small and medium enterprises lacking AI expertise, providing end-to-end ecosystem solutions[14] - The company is committed to strengthening its existing AI business and exploring various business opportunities to create greater value for shareholders[15] Stock Options and Share Capital - The number of unexercised stock options as of June 30, 2024, is 5,440,775, with a weighted average exercise price of HKD 2.32[100] - The company has adopted a new stock option plan effective from May 15, 2023, which will remain valid for 10 years unless revoked or amended[96] - The total issued and paid-up ordinary shares remained at 61,765,237 as of both December 31, 2023, and June 30, 2024[81] - The company has the authority to issue up to 6,176,523 shares under the 2023 share option plan, representing 10% of the issued shares as of the report date[135] - A total of 1,568,000 share options were granted to certain directors and employees at an exercise price of HKD 3.42 per share on August 10, 2023[135] - The maximum number of share options that can be granted to each participant under the 2023 share option plan is capped at 1% of the issued shares as of the grant date[137] Acquisitions and Terminations - The acquisition of 100% equity in Popsible Limited was completed for a consideration of HKD 11,500,000, with 11,500,000 shares issued at HKD 1.00 each[11] - The company unilaterally terminated the proposed acquisition of Autostereoscopic 3D Limited due to unsatisfactory due diligence results, effective July 11, 2024[17] - The proposed acquisition of Autostereoscopic 3D Limited was valued at HKD 100,000,000, to be settled through HKD 75,985,677.28 in promissory notes and the issuance of 11,117,742 shares[147] - The acquisition was unilaterally terminated on July 11, 2024, with no further interests held by Marvion Group or Dr. Li in the 3,335,323 shares[147] Other Financial Information - The company did not incur any capital expenditure for property, plant, and equipment during the first half of 2024, compared to approximately HKD 638,000 in the previous year[23] - The company did not generate any taxable profits from China during the six months ended June 30, 2024, and therefore did not make any provision for corporate income tax in China, consistent with the previous year[65] - The company has not reported any new product launches or significant market expansions during this period[33] - There were no significant events after the reporting period, aside from those disclosed in the report[159]
中国信息科技(08178) - 2024 - 中期业绩