Financial Performance - The Group recorded a total revenue of approximately RMB201.3 million, representing a decrease of approximately RMB20.8 million, or approximately 9.4% compared to RMB222.1 million in the same period in 2019[16]. - The Group reported a net loss of approximately RMB68.6 million during the Period[16]. - The gross profit amounted to approximately RMB24.5 million, a decrease of approximately RMB0.4 million, or approximately 1.6% compared to RMB24.9 million in the same period in 2019[16]. - Loss before tax for the six months ended June 30, 2020, was RMB67.6 million, compared to a loss of RMB16.0 million for the same period in 2019[31]. - The net loss margin for the six months ended June 30, 2020, was (34.1%), compared to (7.1%) for the same period in 2019[32]. - The net loss for the six months ended June 30, 2020, increased to approximately RMB68.6 million, representing an increase of approximately RMB52.8 million or 334.2% compared to RMB15.8 million for the same period in 2019[54]. - The company reported a loss for the period of RMB 68,607,000, significantly higher than the loss of RMB 15,805,000 in 2019[182]. - Basic and diluted loss per share attributable to ordinary equity holders was RMB (4.74 cents), compared to RMB (0.94 cents) in the prior year[182]. Business Strategy and Operations - The Group focused on two core business areas: Systems Integration Business and Smart Office Software Solutions, expanding gradually to other Asian countries[14]. - The Group is adjusting its business strategy by partnering with manufacturers in China to enhance competitive strength and diversify risks[21]. - The Group is optimizing its Smart Office Software Solutions to leverage opportunities from IoT technology[22]. - The Group continues to establish alliances with industry partners to increase awareness and consolidate its leading position in the industry[22]. - The Group remains optimistic about the long-term prospects of its core business despite the challenging business environment[25]. - The Group plans to adopt a more cautious approach in the second half of 2020 to ensure effective business development[25]. - The Group will continue to invest in its existing core business and explore opportunities in new technologies such as cloud computing and IoT[24]. Impact of COVID-19 - The COVID-19 pandemic led to reduced IT spending, impacting the Group's revenue and performance negatively[15]. - The impairment loss recorded for goodwill was approximately RMB57.6 million, primarily due to the impact of the COVID-19 pandemic on the global economy[51]. - The inventory balance as of June 30, 2020, was approximately RMB 37.3 million, with an average turnover period of 26 days, an increase from 11 days as of June 30, 2019, due to COVID-19 delivery delays[70]. Financial Position and Assets - Total assets as of June 30, 2020, were RMB895.3 million, a decrease from RMB1,109.9 million as of December 31, 2019[35]. - The current ratio as of June 30, 2020, was 1.3, compared to 1.4 as of June 30, 2019[32]. - The total interest-bearing bank and other borrowings amounted to approximately RMB70.3 million as of June 30, 2020, an increase from approximately RMB64.6 million as of December 31, 2019[61]. - The gearing ratio increased to approximately 7.9% as of June 30, 2020, compared to approximately 5.8% as of December 31, 2019[60]. - Cash and cash equivalents increased from RMB 48,781,000 as of December 31, 2019, to RMB 65,894,000 as of June 30, 2020, marking an increase of approximately 35.1%[186]. Shareholder Information and Corporate Governance - The company did not declare any interim dividend for the six months ended June 30, 2020, consistent with the previous year[154]. - The company has adopted and complied with the Corporate Governance Code throughout the six months ended June 30, 2020, with some deviations noted[159]. - The roles of chairman and CEO are held by the same individual, Mr. Chan Sek Keung, Ringo, which deviates from the Corporate Governance Code[160]. - The company recognizes the importance of good corporate governance to enhance overall performance and accountability to shareholders[159]. - The company will seek to comply with the Corporate Governance Code by appointing a suitable candidate for the CEO position in the future[160]. Employee and Operational Metrics - The total number of employees as of June 30, 2020, was 249, down from 259 as of June 30, 2019[86]. - Selling and distribution expenses decreased by approximately RMB0.8 million to approximately RMB12.0 million for the six months ended June 30, 2020, compared to approximately RMB12.8 million for the same period in 2019[49]. - Administrative expenses decreased by approximately RMB1.6 million to approximately RMB23.4 million for the six months ended June 30, 2020, compared to approximately RMB25.0 million for the same period in 2019[50].
威讯控股(01087) - 2020 - 中期财报