Financial Performance - The group's revenue for the six months ended December 31, 2020, increased by approximately 93% to about HKD 8,000,000, while the loss was approximately HKD 44,000,000, compared to a loss of HKD 47,000,000 in the same period last year[9]. - The company reported revenue of HKD 8,393,000 for the six months ended December 31, 2020, representing a 93.9% increase from HKD 4,341,000 in the same period of 2019[71]. - Gross profit for the same period was HKD 5,493,000, compared to HKD 4,341,000 in 2019, indicating a positive growth trend[71]. - The company incurred an operating loss of HKD 45,810,000, slightly higher than the loss of HKD 45,523,000 in the previous year[71]. - The total comprehensive loss for the period was HKD 43,680,000, compared to HKD 47,424,000 in the prior year, showing a reduction in losses[70]. - The total loss before tax for the six months ended December 31, 2020, was HKD 47,111,000, compared to a loss of HKD 46,812,000 in the same period of 2019, indicating a slight increase in losses[126]. - The group reported a segment loss of HKD 50,062,000 for the six months ended December 31, 2020, compared to a loss of HKD 36,875,000 in the same period of 2019, reflecting a deterioration in performance[126]. - The group reported a loss of HKD 42,869,000 for the six months ended December 31, 2020, compared to a loss of HKD 44,075,000 in the same period of 2019, indicating a slight improvement in performance[134]. Revenue Sources - Rental income from investment properties for the same period was approximately HKD 3,000,000, down from HKD 4,000,000 in the previous year[10]. - The property investment segment generated revenue of HKD 3,255,000, while the R&D segment contributed HKD 5,138,000 for the six months ended December 31, 2020[115]. - The group’s revenue from external customers in Hong Kong was HKD 3,255,000, down from HKD 4,341,000 in the same period of 2019, reflecting a decline in local market performance[126]. - The group’s revenue from external customers in Finland was HKD 5,138,000 for the six months ended December 31, 2020, indicating successful market penetration in this region[126]. Technology Development - The technology department has made progress in developing new generation technologies involving imaging, monitoring, navigation, and advanced semiconductor processing, with an investment of approximately HKD 140,000,000 in collaboration with the Finnish National Technology Innovation Agency[12]. - The technology department is expected to generate revenue of USD 100,000,000 by 2026 from several technology products or systems currently under development[12]. - The company plans to launch various accessories and software functionalities for its industrial non-destructive testing products in the second quarter of 2021[15]. - The IPESSA Classic and IPESSA Tiny products are in the trial production stage, with mass production expected soon, targeting automated agriculture and delivery robots[16]. - The SE01 and SE02 products, designed for high-precision 3D data collection, were launched in November 2020, with initial sales expected in the second quarter of 2021[19][20]. - The company is developing a new camera system, with the hardware prototype expected to launch in August 2021 and mass production planned for December 2021[25]. - The A2K high-performance video sensor is set to be launched in mid-2021, targeting security and machine vision applications[27]. - The complete product package is scheduled for release in December 2021[26]. Financial Position - The group reported net current assets of approximately HKD 19,000,000 and a current ratio of 1.11 as of December 31, 2020[29]. - Cash and bank balances amounted to approximately HKD 180,000,000 as of December 31, 2020[29]. - Total outstanding liabilities were approximately HKD 194,000,000, including trade and other payables of about HKD 14,000,000 and bank loans of approximately HKD 100,000,000[29]. - The capital-to-debt ratio was approximately 19.20% as of December 31, 2020[30]. - The company has no significant investments, acquisitions, or disposals during the six months ended December 31, 2020[31]. - The total number of employees as of December 31, 2020, was 104, with compensation determined based on market conditions[33]. - The company has allocated HKD 39,000,000 for facility construction, which is contingent upon the acquisition of land currently under negotiation[60]. - The negotiation for land acquisition has been delayed due to the COVID-19 pandemic, with no meaningful estimate on when negotiations will resume[60]. Shareholder Information - The board recommended not to declare any interim dividend for the six months ended December 31, 2020[35]. - The company repurchased 2,545,000 shares at a total cost of approximately HKD 453,000 during the six months ended December 31, 2020[55]. - The largest customer accounted for 39% of total revenue, while the top five customers represented 80% of total revenue for the same period[56]. - The company has not engaged in any arrangements that would allow directors or key executives to benefit from purchasing shares or bonds of the company or any other entity during the reporting period[54]. - The company has a stock option plan adopted on December 8, 2015, granting options for a total of 397,721,900 shares to selected participants[51]. - The company’s major suppliers accounted for 38% of total cost of sales, while the top five suppliers accounted for 73%[56]. - The company’s stock options have exercise prices ranging from HKD 0.179 to HKD 0.321, with various exercise periods extending to 2028[51]. - The company has not purchased, sold, or redeemed any of its listed shares other than the aforementioned repurchase[55]. Asset Valuation - As of December 31, 2020, the fair value of financial assets and liabilities is approximately HKD 584.175 million, with significant contributions from investment properties valued at HKD 532.5 million[96][98]. - The total fair value of investment properties located in Hong Kong is HKD 532.5 million, reflecting a decrease from the previous period's valuation of HKD 592.3 million[100]. - The fair value loss on investment properties for the six months ended December 31, 2020, was HKD 20,800,000, compared to HKD 9,800,000 in the same period of 2019, indicating increased valuation challenges[129]. - The group recognized a gain of approximately HKD 3,772,000 from the remeasurement of its interest in Imagica Technology Incorporation, which became a subsidiary during the reporting period[141]. - The fair value of golf club memberships was HKD 8,624,000 as of December 31, 2020, with a fair value loss of approximately HKD 20,000 recognized during the period[142]. Liabilities and Borrowings - The total liabilities decreased from HKD 15,843 million in June 2020 to HKD 14,416 million in December 2020, a reduction of approximately 9%[155]. - The company reported a total of HKD 99,995 million in secured bank borrowings as of December 31, 2020, slightly down from HKD 101,290 million in June 2020[158]. - The weighted average interest rate on bank borrowings was 1.87% as of December 31, 2020, compared to 2.14% in June 2020[162]. - The company has HKD 15,380 million of bank borrowings due within one year as of December 31, 2020, consistent with the previous period[161]. - The company issued a total of 194,208,539 convertible bonds in 2017, raising approximately HKD 48,552 million[166]. - The company has a cash settlement option for convertible bonds, allowing it to pay cash instead of issuing shares if necessary[169]. - The total amount of other borrowings was HKD 25,162,000 as of December 31, 2020, an increase from HKD 17,596,000 as of June 30, 2020[183]. - Other borrowings due after twelve months amounted to HKD 23,890,000 as of December 31, 2020, compared to HKD 17,014,000 as of June 30, 2020[184]. Accounting and Compliance - The financial statements are prepared in accordance with Hong Kong Accounting Standards and the relevant listing rules, ensuring consistency with the previous financial year[88][89]. - The company did not adopt any new accounting standards that would have a significant impact on its financial statements during the reporting period[90]. - The financial statements are unaudited and should be read in conjunction with the annual financial statements for the year ended June 30, 2020[88][90].
PALADIN(00495) - 2021 - 中期财报