Financial Performance - Revenue decreased by 13% to HKD 189,850,000 compared to the same period last year[4] - Gross profit fell from HKD 12,323,000 to HKD 8,096,000[4] - The company recorded a net loss attributable to shareholders of HKD 3,380,000, compared to a profit of HKD 143,000 in the previous interim period[4] - Demand for mobile phone devices in Hong Kong contracted by 13% year-on-year due to the COVID-19 pandemic[5] - The pre-tax loss for the six months ended June 30, 2020, was HKD 3,380,000, compared to a profit of HKD 143,000 in the same period of 2019[31] - The cost of inventory recognized as an expense was HKD 181,754,000, down from HKD 205,966,000 in 2019, showing a decrease of 11.7%[27] Cash Flow and Liquidity - Cash and cash equivalents increased to HKD 52,319,000 from HKD 30,319,000[12] - The net cash generated from operating activities for the six months ended June 30, 2020, was HKD 23,624,000, an increase of 9.7% compared to HKD 21,532,000 in 2019[16] - The net cash used in investing activities was HKD (280,000), an improvement from HKD (1,061,000) in the previous year[16] - The net cash used in financing activities was HKD (1,344,000), compared to HKD (1,125,000) in 2019, indicating increased financing outflows[16] - The total cash and cash equivalents increased to HKD 52,319,000 as of June 30, 2020, up from HKD 34,271,000 in 2019, reflecting a growth of 52.6%[16] Assets and Liabilities - Total assets less current liabilities decreased to HKD 89,993,000 from HKD 97,723,000[12] - Non-current liabilities related to lease liabilities decreased to HKD 1,670,000 from HKD 3,260,000[12] - The company’s total equity attributable to owners decreased to HKD 88,323,000 from HKD 94,463,000[12] - The group's total assets amounted to HKD 133,750,000, with total equity of HKD 88,323,000 and total liabilities of HKD 45,427,000, resulting in a current ratio of approximately 2.6 as of June 30, 2020[60] Operational Adjustments - The company is adjusting its business model to focus on exploring new business opportunities and improving operational efficiency[6] - The company plans to leverage new channels to stimulate sales amid the pandemic[5] - The company has reassessed its use of proceeds from the IPO, opting to upgrade existing information systems instead of purchasing a new ERP system due to changing customer consumption patterns[103] Employee and Compensation - Employee compensation and benefits (excluding director remuneration) amounted to HKD 5,595,000 as of June 30, 2020, down from HKD 6,210,000 as of June 30, 2019, showing a decrease of approximately 9.9%[63] - The number of employees decreased to 35 as of June 30, 2020, from 38 as of June 30, 2019[63] Shareholder Information - The directors and their associates hold a total of 205,582,221 shares, representing 73.42% of the issued share capital[72] - Major shareholders as of June 30, 2020, included Summertown Limited with 72.72% and Gold Sceptre Limited with 68.34% of the issued share capital[97] Dividends and Share Options - The company did not recommend the payment of an interim dividend for the six months ended June 30, 2020, consistent with the previous year[34] - The total number of unexercised share options as of June 30, 2020, was 7,590,000, with 6,390,000 options held by directors and their associates[88] Compliance and Governance - The company has complied with the corporate governance code as per the Hong Kong Stock Exchange rules during the reporting period[100] - The company has confirmed compliance with the standard code for securities trading by all directors[101] Market Conditions and Risks - The group has no significant currency risk as the management expects no major currency fluctuations between USD and HKD due to their peg[68] - The management is monitoring currency fluctuation risks and may consider hedging if necessary[68] - The group currently has no currency hedging policy in place[68] - There are no significant contingent liabilities or guarantees as of June 30, 2020[71]
新龙移动(01362) - 2020 - 中期财报