Financial Performance - The Group recorded total revenue of approximately RMB222.1 million, an increase of approximately RMB14.8 million or 7.1% compared to RMB207.3 million in the same period in 2018[14]. - The Group's gross profit amounted to approximately RMB24.9 million, representing an increase of approximately RMB13.5 million or 118.4% compared to RMB11.4 million in the same period in 2018[14]. - The gross profit margin increased to approximately 11.2% from approximately 5.5% in the same period in 2018[14]. - The Group incurred a net loss of approximately RMB15.8 million during the period[14]. - Gross profit for the period was RMB 24.9 million, up from RMB 11.4 million in the previous year, indicating a significant improvement in profitability[30]. - The gross profit margin increased to 11.2% in 2019 from 5.5% in 2018, reflecting enhanced operational efficiency[33]. - Loss before tax decreased to RMB 16.0 million from RMB 26.4 million year-on-year, showing a reduction in financial losses[30]. - The net loss decreased by approximately RMB 9.2 million or 36.8% for the six months ended June 30, 2019, compared to a net loss of approximately RMB 25.0 million for the same period in 2018[63]. - The loss for the period was RMB 15,805,000, compared to RMB 24,960,000 in the previous year, showing a year-over-year improvement[198]. - The company reported a loss for the period of RMB 15,805,000, a decrease of 36.5% compared to a loss of RMB 24,960,000 in the same period of 2018[200]. Assets and Liabilities - The Group's total assets as of 30 June 2019 were RMB 1,304.2 million, down from RMB 1,359.8 million at the end of 2018[37]. - Cash and cash equivalents, excluding pledged deposits, decreased to RMB 39.7 million from RMB 98.3 million at the end of 2018[37]. - The current ratio as of 30 June 2019 was 1.4, compared to 1.6 in the previous year, indicating a slight decline in liquidity[33]. - The Group's gearing ratio as of 30 June 2019 was approximately 4.0%, down from approximately 6.7% as of 31 December 2018[70]. - Total interest-bearing bank and other borrowings amounted to approximately RMB 52.0 million as of 30 June 2019, an increase from approximately RMB 42.7 million as of 31 December 2018[71]. - The balance of trade and bills receivables was approximately RMB 203.7 million as of June 30, 2019, with an average turnover days of 168 days, a decrease from 195 days as of June 30, 2018[80]. - The balance of trade and bills payables was approximately RMB 177.6 million as of June 30, 2019, with an average turnover days increasing to 154 days from 144 days as of June 30, 2018[81]. - As of June 30, 2019, the inventory balance was approximately RMB 11.7 million, with an average turnover days of 11 days[79]. Investments and Market Expansion - The Group has commenced operations in Vietnam, aiming for higher returns for shareholders in the future[15]. - The Group continues to invest in research and development to enhance its competitive strength in the PRC market[15]. - The Group is focusing on innovating and exploring new technologies such as IoT and Artificial Intelligence for its mobile OA software[16]. - The Group plans to accelerate investment in wireless, IoT, cloud computing, and Software Defined Networking (SDN) technology to prepare for the 5G era[21]. - The Group is actively exploring overseas markets, particularly opportunities arising from the "One Belt and One Road Initiative" and "Guangdong-Hong Kong-Macao Greater Bay Area Development" policies[22]. - The Group aims to establish strategic cooperation with partners to enhance competitiveness and accelerate software distribution[16]. - The Group remains optimistic about future business prospects despite challenges in the network communication and mobile OA software sectors due to intense competition[23]. Shareholder Information and Corporate Governance - The Board did not declare any interim dividend for the six months ended 30 June 2019, consistent with the previous year[165]. - The Company has adopted and complied with the principles of the Corporate Governance Code throughout the six months ended June 30, 2019, with some deviations noted[169]. - The roles of chairman and CEO are currently held by the same individual, Mr. Chan Sek Keung, Ringo, due to the rapid development of the Group[170]. - All Directors confirmed compliance with the Model Code for Securities Transactions during the six months ended June 30, 2019[172]. - The company maintained a public float of not less than 25% of its issued shares as required under the Listing Rules during the reporting period[180]. - Ernst & Young was re-appointed as auditors of the company until the conclusion of the next annual general meeting[181]. Share Option Scheme - The Share Option Scheme allows for a maximum of 10% of the Shares in issue to be granted, which equates to 97,500,000 Shares after the refresh on May 24, 2017[146]. - The total number of Shares available for issue under the Share Option Scheme is 105,420,000, representing approximately 7.51% of the issued share capital of the Company[147]. - During the six months ended June 30, 2019, no share options were granted, exercised, lapsed, or cancelled under the Share Option Scheme[155]. - The total number of share options granted to Directors under the Share Option Scheme is 7,920,000, with no options exercised during the reporting period[153]. - As of June 30, 2019, 2,376,000 share options granted on October 25, 2016, have not yet vested[147]. - The closing price of the Company's shares immediately before the options were granted was HK$1.73[157]. - Up to 40% of the options granted (the "First Options") are exercisable from 25 October 2016 to 25 October 2026[157]. - Up to 30% of the options granted (the "Second Options") are exercisable from 25 October 2017 to 25 October 2026[157]. - Up to 30% of the options granted (the "Third Options") are exercisable from 25 October 2018 to 25 October 2026[157]. Other Financial Information - The financial results for the six months ended June 30, 2019, have not been audited, indicating that the figures are preliminary[178]. - The company reported a decrease in finance costs to RMB 2,245,000 from RMB 5,825,000, representing a reduction of 61.5%[198]. - Total comprehensive loss for the period was RMB 20,832,000, down 20.5% from RMB 26,282,000 in the prior year[200]. - Other comprehensive loss for the period, net of tax, was RMB 5,027,000, compared to RMB 1,322,000 in the previous year[200]. - The fair value change of financial assets at fair value through other comprehensive income resulted in a loss of RMB 7,315,000[200]. - Exchange differences on translation of foreign operations contributed a gain of RMB 459,000, improving from a loss of RMB 1,322,000 in 2018[200]. - The loss attributable to owners of the parent was RMB 18,108,000, compared to RMB 20,123,000 in the same period last year[200]. - Non-controlling interests reported a loss of RMB 2,724,000, down from RMB 6,159,000 in the previous year[200].
威讯控股(01087) - 2019 - 中期财报