Financial Performance - The Group recorded a loss of approximately US$21.8 million for the six months ended 30 June 2021, compared to a loss of approximately US$16.2 million for the same period in 2020, representing an increase in loss of about 34.6%[26]. - Loss per share for the six months ended 30 June 2021 was US6.04 cents, an improvement from US7.00 cents for the same period in 2020[26]. - Revenue for the period was approximately US$2.6 million, a decrease of approximately US$0.4 million from US$3.0 million in the same period of 2020, primarily due to a decrease in TV rental income of approximately US$1.0 million[31]. - Gross profit decreased from approximately US$1.4 million in the corresponding period in 2020 to approximately US$1.1 million in 2021, mainly due to lower broadcasting service income[31]. - Administrative expenses increased from approximately US$0.7 million to approximately US$1.1 million, primarily due to an increase in staff costs during the period[31]. - The Company shared a loss of approximately US$9.3 million from its 20% interest in Silkwave Holdings Limited, compared to a loss of approximately US$6.6 million in the same period of 2020, due to delays in regulatory approval and fundraising activities[34]. - Impairment loss on intangible assets for the period was approximately US$8.7 million, compared to approximately US$7.0 million in the same period of 2020, due to the pandemic's impact on business operations[35]. - Finance costs for the period amounted to approximately US$3.0 million, an increase from approximately US$2.7 million in the same period of 2020, primarily representing effective interest expense on convertible notes[31]. - The Group recorded a net loss of approximately US$21.8 million for the six months ended 30 June 2021[41]. - The Group's current liabilities exceeded its current assets by approximately US$0.3 million as of 30 June 2021, improving from approximately US$3.1 million as of 31 December 2020[41]. - The Group has not declared any interim dividend for the six months ended 30 June 2021, consistent with the previous year[41]. - The Group did not have any bank borrowings as of 30 June 2021, maintaining a sound financial position[44]. - The total comprehensive expenses for the period amounted to US$22.53 million, including a loss of US$17.956 million from foreign operations[168]. Share Capital and Financing - The Company completed a subscription of 58,342,055 new shares at a subscription price of HK$0.35 per share, raising approximately HK$20.42 million[23]. - The subscription was finalized on 1 June 2021, with no subscribers becoming substantial shareholders as a result[24]. - Convertible notes amounted to approximately US$56.4 million as of 30 June 2021, with a gearing ratio of approximately 33.7%[44]. - The subscription price for the 2021 convertible notes is US$65,000,000, which will be fully offset by existing convertible notes held by Chi Capital[49]. - If the conversion rights of the 2021 convertible notes are fully exercised, the number of issued shares will increase by approximately 1,444,857,142 shares, representing about 400.78% of the number of issued shares as of June 30, 2021[49]. - The company raised approximately HK$20.34 million from the subscription of 58,342,055 new shares, primarily for repaying shareholder advances and strengthening working capital[62]. - The total number of issued shares as of June 30, 2021, is 360,512,332 shares[74]. - Chi Capital holds convertible notes with a principal amount of US$87,000,000, representing approximately 23.15% of the total issued shares of 360,512,332[78]. - The company issued US dollar denominated convertible notes with a principal amount of US$96,000,000 for the acquisition of a 20% equity interest in Silkwave Holdings Limited[112]. Business Operations and Strategy - The principal activities of the Group include investment holding and the provision of Convergent Mobile Multimedia Broadcasting (CMMB) and satellite infotainment multimedia technology and services[18]. - The Group's focus remains on expanding its multimedia broadcasting and infotainment services in both vehicle and maritime applications[18]. - The Company continues to explore new strategies for market expansion and technological advancements in its service offerings[18]. - The Group's reportable segments include the CMMB business, which focuses on the transmission and broadcasting of television programs, and the Trading business, which involves trading of printed circuit board materials[178]. - The Group has early adopted amendments to HKFRS 16, which allowed for the accounting of COVID-19 related rent concessions without treating them as lease modifications[176]. - The Group recognized US$43,000 in other income from rent concessions related to COVID-19, which was accounted for as negative variable lease payments[176]. - The Group has entered into a strategic partnership with major US LPTV operators to enhance programming and technical capabilities[51]. - The PCB trading business faced challenges due to the pandemic, including delayed production and shipment, but the Company is exploring new-generation auto electronics components and AI-based consumer digital electronic components[52]. - The company aims to expand into new automotive electronic components, leveraging its expertise in connected car multimedia to secure higher value business orders[55]. - The company is actively seeking local business partners in several ASEAN countries to establish an operational base for multimedia information and entertainment services in Southeast Asia[56]. Corporate Governance and Compliance - The Company has adopted a new Share Option Scheme on December 18, 2015, to incentivize selected participants for their contributions[86]. - The Company has maintained compliance with the Securities and Futures Ordinance regarding the registration of interests[79]. - The company has complied with all applicable code provisions of the Corporate Governance Code throughout the six months ended June 30, 2021, except for the separation of the roles of chairman and chief executive[137]. - The company has maintained high standards of corporate governance to safeguard shareholder interests and enhance group performance[137]. - The Audit Committee, comprising independent non-executive directors, reviewed the accounting principles and financial reporting for the period and recommended the adoption of the unaudited condensed consolidated financial statements[144]. - The Board approved the unaudited condensed consolidated financial statements for the period on August 26, 2021[145]. Employee and Operational Metrics - The average number of employees for the Group during the period was approximately 23, with staff costs amounting to approximately US$721,000, an increase from approximately US$507,000 in the same period last year[46]. - Four out of eight operated stations have completed the digital upgrade, with the remaining expected to finish by the second half of 2021[51]. - The effective interest on convertible notes amounted to US$3,016,000, up from US$2,708,000 in the prior year, indicating increased financing costs[183]. - Market development and promotion expenses totaled US$760,000, which is an increase from US$674,000 in the same period of the previous year[183]. Future Outlook - The Company expects significant improvement in business performance in the coming fiscal year due to anticipated economic recovery and media market growth[51]. - Future guidance suggests a positive outlook for revenue growth driven by market expansion initiatives[93]. - The company plans to implement a development plan to enhance efficiency and control costs, remaining optimistic about future growth[60].
中播数据(00471) - 2021 - 中期财报