Financial Performance - Revenue for the six months ended June 30, 2021, was HKD 240,569,000, a significant increase of 137.5% compared to HKD 101,347,000 for the same period in 2020[6] - Gross profit for the same period was HKD 15,615,000, compared to a gross profit of HKD 295, marking a substantial improvement[6] - The company reported a loss before tax of HKD 13,876,000, which is an improvement from a loss of HKD 31,086,000 in the previous year, indicating a reduction in losses by approximately 55.4%[6] - The total comprehensive loss for the period was HKD 14,954,000, down from HKD 31,890,000 in the prior year, reflecting a decrease of about 53.2%[6] - Basic and diluted loss per share improved to HKD 0.49 from HKD 1.11, representing a reduction in loss per share by approximately 56%[8] - The company reported a net loss of approximately HKD 13,876,000 for the six months ended June 30, 2021, compared to a loss of HKD 31,086,000 for the same period in 2020, indicating an improvement of 55.3%[22] - The company reported a total loss across all segments of HKD 6,916,000 for the six months ended June 30, 2021, compared to HKD 22,559,000 in the same period of 2020, indicating a reduction of 69.4%[27] - The group reported a significant reduction in loss attributable to shareholders, down to approximately HKD 13.3 million from HKD 30.3 million in the previous year[57] Assets and Liabilities - Non-current assets as of June 30, 2021, totaled HKD 174,941,000, a decrease from HKD 183,018,000 at the end of 2020[10] - Current assets increased to HKD 392,176,000 from HKD 342,522,000, showing a growth of approximately 14.5%[10] - Total liabilities increased to HKD 557,047,000 from HKD 506,671,000, indicating a rise of about 9.9%[10] - The company's equity attributable to owners decreased to HKD 49,663,000 from HKD 56,970,000, reflecting a decline of approximately 12.7%[12] - Trade and other receivables amounted to HKD 256,780,000 as of June 30, 2021, compared to HKD 238,073,000 at the end of 2020, indicating a 7.2% increase[35] - The company’s trade receivables, net of expected credit loss provisions, totaled HKD 171,174,000 as of June 30, 2021, up from HKD 142,913,000 at the end of 2020, marking a 19.8% increase[35] - Trade and other payables increased to HKD 157,631,000 from HKD 152,520,000 year-over-year[42] Cash Flow and Financing - The company generated a net cash inflow from operating activities of HKD 15,635,000, down from HKD 37,779,000 in the previous year, reflecting a decrease of 58.6%[19] - The company’s cash and cash equivalents increased to HKD 33,602,000 as of June 30, 2021, compared to HKD 30,115,000 at the end of the same period in 2020, showing a growth of 8.3%[19] - The company is in discussions with bankers to secure necessary financing to meet its operational and financial needs in the near future[22] - The company plans to continue its operational activities with financial support from a shareholder for the next twelve months[24] - The company has not conducted any equity fundraising activities in the first half of 2021 and will continue to seek debt and equity financing to improve its working capital[64] Revenue Breakdown - The revenue from double-sided PCB sales surged to HKD 161,819,000, up from HKD 49,253,000 in the previous year, marking a growth of 228.5%[27] - Single-sided PCB sales decreased by 6.5% to HKD 35,395,000, while double-sided PCB sales surged by 228.5% to HKD 161,819,000[53] - The revenue breakdown by region shows that China contributed HKD 190.4 million, representing a 166.2% increase from HKD 71.5 million in 2020[54] - The LED division confirmed revenue of HKD 25.6 million in the first half of 2021 and continues to explore suitable business opportunities[67] Employee and Operational Costs - Total employee costs increased to HKD 35,152,000 in the first half of 2021, up from HKD 26,826,000 in the same period of 2020, reflecting a 31% rise[30] - The company’s management compensation for the first half of 2021 was HKD 1,440,000, compared to HKD 1,184,000 in the same period of 2020[50] Strategic Initiatives and Future Plans - The company continues to explore new strategies for market expansion and product development, although specific details were not disclosed in the interim report[5] - The company plans to develop a new production facility on a 65,999.7 square meter industrial land in Zhongshan, Guangdong, with a total construction area of 120,513.22 square meters, including two factory and office buildings[71] - The estimated total construction cost for the new facility is RMB 270 million, which will be funded through internal resources, external loans, and equity financing[71] - A strategic cooperation agreement was signed with Shenzhen Wenyiyi Industrial Co., Ltd. to utilize the new space for a shared workspace project, with a ten-year cooperation period based on a revenue-sharing model[73] - The company intends to invest in at least 51% of the issued share capital of Anxun Group Limited, which operates data centers and provides cloud computing and blockchain solutions[74] - A memorandum of understanding was established to potentially acquire up to 45% equity in Chongren County Zhongyuan Electronic Technology Co., Ltd., focusing on integrated circuits and industrial automation equipment[76] - A cooperation agreement was signed with Dayu Industrial (Hong Kong) Co., Ltd. to supply smart mobile communication devices, with expected annual sales in Hong Kong of no less than HKD 300 million in the first year[77] - The company is planning to invest in a new production line at a new factory in the Jiangxi Province, with the timeline dependent on various factors including lease negotiations[78] Corporate Governance and Compliance - The audit committee, consisting of three independent non-executive directors, reviewed the unaudited financial statements for the six months ending June 30, 2021, ensuring compliance with applicable accounting standards and regulations[104] - The company confirmed compliance with the corporate governance code during the reporting period, with no significant deviations noted[101] - The company has adopted the standard code for securities transactions by directors, with all current directors confirming compliance during the reporting period[102] - The company has established key banking relationships with China Construction Bank, Agricultural Bank of China, and China Trust Commercial Bank[106] Shareholder Information - As of June 30, 2021, major shareholders include Intelligent South Network with 216 million shares (7.74%) and Union Insurance with 225.08 million shares (8.07%) of the issued capital[83] - The company has disclosed that no other directors or key executives hold any shares or related interests in the company as of June 30, 2021[84] - A total of 29,089,487 options remain unexercised under the old share option scheme, equivalent to 1.04% of the company's existing issued share capital[87] - The new share option scheme allows for a maximum of 90,225,766 shares to be issued, representing 10% of the issued shares as of August 19, 2016[90] - The total number of unexercised options under the 2019 share option plan is 148,000,000 shares, equivalent to 5.31% of the company's existing issued share capital[92] - The total number of stock options granted during the period was 248,089 thousand shares, with 71,000 thousand shares exercised and 177,089 thousand shares remaining unexercised as of June 30, 2021[94] Miscellaneous - The company expressed gratitude to all management, employees, business partners, and shareholders for their support and contributions[108] - The company is listed under the stock code 00515[107] - The main office is located in Hong Kong, with a registered office in the Cayman Islands[106] - The company’s website is www.csthltd.com[107]
中华银科技(00515) - 2021 - 中期财报