Financial Performance - For the six months ended June 30, 2021, the revenue was approximately HKD 33,691,000, an increase of 16.5% compared to HKD 28,925,000 for the same period last year[27]. - The loss attributable to owners of the company for the six months ended June 30, 2021, was approximately HKD 8,792,000, a decrease from HKD 14,430,000 in the previous year, primarily due to fair value gains on securities investments of approximately HKD 3,829,000[27]. - The loss per share attributable to owners of the company for the six months ended June 30, 2021, was approximately HKD 0.036, compared to HKD 0.0604 for the same period last year[27]. - The group recorded revenue of approximately HKD 33,691,000 for the six months ended June 30, 2021, an increase of 16.5% compared to HKD 28,925,000 for the same period last year[58]. - The total sales and service costs for the first half of 2021 amounted to approximately HKD 27,682,000, a rise of 72.7% from HKD 16,025,000 in the same period of 2020[58]. - Gross profit for the first half of 2021 was approximately HKD 6,009,000, a decrease of 53.4% from HKD 12,900,000 in the previous year[58]. - The group reported a loss attributable to owners of the company of approximately HKD 8,792,000 for the first half of 2021, compared to a loss of HKD 14,430,000 in the same period of 2020[65]. - The basic and diluted loss per share for the first half of 2021 was HKD 3.60, compared to HKD 6.04 for the same period last year[65]. Dividend Policy - The company did not recommend the payment of an interim dividend for the six months ended June 30, 2021[27]. - No interim dividend is recommended for the six months ended June 30, 2021, consistent with the previous year[114]. Capital Structure and Financing - The company aims to maintain a robust capital structure to support sustainable business development and future growth opportunities[30]. - The company raised approximately HKD 230,000,000 by issuing 1,830,792,000 new shares at HKD 0.13 per share in 2016[33]. - The total amount raised from the share placement on May 25, 2021, was approximately HKD 4,800,000, with a net amount of HKD 4,700,000 allocated for general operating funds[46]. - The company reported a net cash outflow from financing activities of HKD 19,630,000, compared to HKD 7,377,000 in the previous year, indicating increased financing activities[90]. - The company issued shares resulting in proceeds of HKD 4,688,000 during the reporting period, compared to HKD 2,203,000 in the previous year[90]. Investments and Acquisitions - The company acquired a 10% stake in Global Engine Holdings Limited for HKD 10,000,000, issuing 20,000,000 shares at HKD 0.5 each[34]. - The acquisition of the 10% stake in Global Engine Holdings was completed on May 31, 2021[35]. - The company purchased a 51% stake in Dongsheng Investment Development Limited for HKD 3,500,000, issuing 7,000,000 shares at HKD 0.5 each[37]. - The acquisition of the 51% stake in Dongsheng was completed on July 15, 2021[37]. - The company sold 9,000,000 shares of TOMO Holdings Limited for a total consideration of HKD 9,180,000, at a price of HKD 1.02 per share[39]. - The company sold a total of 3,000,000 shares of Tianyu Properties Limited for HKD 2,910,000, averaging HKD 0.97 per share[42]. Employee and Operational Metrics - The total number of full-time employees as of June 30, 2021, was 62, down from 80 in 2020[57]. - Employee benefits expenses for the six months ended June 30, 2021, totaled approximately HKD 13,699,000, with HKD 2,462,000 related to equity-settled share-based payments[57]. Strategic Focus and Development - The company is focusing on developing advanced technologies, particularly in artificial intelligence (AI) and cloud technology, while prudently managing and allocating resources[30]. - The ongoing COVID-19 pandemic has created both uncertainties and opportunities for the industry, with increased demand for virtual desktop infrastructure (VDI) and cloud-based applications[28]. - The company continues to explore various collaboration opportunities, including the potential launch of a software platform to diversify product offerings and revenue sources[48]. - The company is committed to investing more resources in research and development of AI, cloud, and other technologies to provide advanced services and products[54]. - The company has established strategic partnerships to deliver efficient and cost-effective AI+HR services, expanding its customer base across various sectors[53]. - The company believes that the ongoing trends in IoT, cloud technology, and AI will create more business opportunities and benefits[54]. - The company has transformed traditional workshops into online webinars to promote VDI solutions and AI technologies during the pandemic[50]. - The company aims to enhance its reputation and increase sales through innovative marketing activities and collaborations with various partners[50]. Financial Position and Assets - As of June 30, 2021, the group's cash and bank balances were approximately HKD 6,621,000, down from HKD 7,904,000 as of December 31, 2020[60]. - Total borrowings as of June 30, 2021, were approximately HKD 88,284,000, a decrease from HKD 104,230,000 as of December 31, 2020, with a debt-to-equity ratio of 0.21[60]. - The net cash generated from operating activities for the six months ended June 30, 2021, was HKD 21,022,000, up from HKD 12,723,000 in the same period last year, representing a growth of 65.5%[91]. - The company’s total liabilities decreased to HKD 137,827,000 as of June 30, 2021, from HKD 144,480,000 at the end of 2020[99]. - The company’s share capital as of June 30, 2021, is HKD 2,801,000,000 with 280,141,329 shares issued[135]. - The company completed a share consolidation on January 15, 2021, resulting in the cancellation of 5,504,850,579 shares, consolidating every 24 shares into 1 share with a par value of HKD 2.40[137]. Fair Value Measurements - As of June 30, 2021, the total fair value of recurring fair value measurements was HKD 406,764,000, with HKD 24,232,000 classified as Level 1 inputs and HKD 382,532,000 as Level 3 inputs[154]. - The fair value of equity securities listed in Hong Kong was HKD 23,509,000 as of June 30, 2021[147]. - The company reported an increase in Level 3 assets from HKD 367,944,000 at the beginning of the year to HKD 382,532,000 by June 30, 2021, reflecting a net increase of HKD 14,588,000[160]. - The company’s financial director is responsible for fair value measurements and reports directly to the board, ensuring transparency in valuation processes[168]. Governance and Management - The board is responsible for overseeing the company's business operations and implementing business strategies[199]. - The company has granted stock options to employees and executive directors to incentivize them towards achieving the group's goals[199]. - Mr. Wei has been appointed to provide advice on artificial intelligence technology development and to introduce potential business partners for a subsidiary[199]. - The stock options granted to Mr. Wei are in exchange for his services, reflecting the dynamic trends in the artificial intelligence market[199]. - The company believes that granting stock options to consultants can create value without impacting operational costs[199].
中国信息科技(08178) - 2021 - 中期财报