Financial Performance - For the three months ended June 30, 2021, the Group's revenue was HK$3,803,000, a decrease of 49% compared to HK$7,485,000 for the same period in 2020[10]. - For the six months ended June 30, 2021, the Group's revenue was HK$10,572,000, down 39% from HK$17,467,000 in the corresponding period of 2020[10]. - The Group reported a gross profit of HK$982,000 for the three months ended June 30, 2021, a significant decline of 82% from HK$5,361,000 in the same period of 2020[10]. - The loss from operations for the six months ended June 30, 2021, was HK$25,807,000, compared to a loss of HK$14,150,000 for the same period in 2020, representing an increase in losses of 83%[10]. - The loss attributable to owners of the Company for the three months ended June 30, 2021, was HK$4,911,000, compared to HK$6,721,000 for the same period in 2020[12]. - The loss per share for the six months ended June 30, 2021, was HK$2.04, compared to HK$0.88 for the same period in 2020, indicating a worsening financial performance[12]. - The total loss for the period for the six months ended June 30, 2021, was HK$26,641,000, compared to HK$14,073,000 for the same period in 2020, highlighting a significant increase in overall losses[10]. - For the six months ended June 30, 2021, the loss was HK$26,641,000, compared to HK$14,073,000 in the prior year, indicating an increase in loss of 89.5%[14]. - The consolidated net loss attributable to owners of the Company for the Period was approximately HK$25,987,000, representing an increase of approximately 131.2% compared to HK$11,240,000 in 2020[107]. Revenue Breakdown - Revenue for the six months ended June 30, 2021, was HK$10,572,000, a decrease of 39.5% compared to HK$17,467,000 for the same period in 2020[32]. - Revenue from software platform services for the six months ended June 30, 2021, was HK$9,776,000, down 6.0% from HK$10,387,000 in 2020[32]. - Mobile games and applications revenue for the six months ended June 30, 2021, was HK$23,000, a decline of 42.5% from HK$40,000 in 2020[32]. - The decrease in revenue was primarily due to a reduction in interest income from the Money Lending Business, which recorded segment revenue of approximately HK$773,000, down from approximately HK$7,040,000 in 2020[98]. - The Software Platform Business accounted for approximately 92.5% of the Group's total revenue for the Period, despite a slight revenue decrease of approximately 5.9%[129]. - The Money Lending Business experienced a significant revenue decline of approximately 89.0%, contributing only approximately 7.3% to the Group's total revenue, with impairment losses on loans increasing to approximately HK$20,537,000[134]. Expenses and Costs - Research and development expenses for the six months ended June 30, 2021, were HK$1,872,000, down from HK$3,642,000 in the same period of 2020, reflecting a reduction in R&D investment[10]. - Administrative expenses for the six months ended June 30, 2021, increased to HK$28,799,000 from HK$24,662,000 in the same period of 2020, indicating rising operational costs[10]. - Staff costs for the six months ended June 30, 2021, were HK$6,451,000, a decrease of 30.5% from HK$9,322,000 in the same period of 2020[48]. - The cost of sales for the Period amounted to approximately HK$4,827,000, compared to approximately HK$3,611,000 in 2020[99]. - Administrative and other operating expenses increased to approximately HK$31,790,000 from approximately HK$29,418,000 in 2020, largely due to impairment losses on loans and interest receivables totaling approximately HK$20,537,000[105]. Assets and Liabilities - The company's net current assets decreased to HK$33,918,000 as of June 30, 2021, from HK$55,263,000 at the end of 2020, a decline of 38.5%[16]. - Non-current assets decreased to HK$54,256,000 as of June 30, 2021, from HK$59,568,000 at the end of 2020, a reduction of 9.1%[16]. - The company's total equity attributable to owners decreased to HK$88,693,000 as of June 30, 2021, from HK$114,690,000 at the end of 2020, a decline of 22.7%[18]. - The total loans receivable, including secured and unsecured loans, amounted to HK$94,524,000 as of June 30, 2021, compared to HK$104,797,000 as of December 31, 2020, reflecting a decrease of about 9.8%[77]. - The current (not past due) loans receivable decreased to HK$54,606,000 from HK$67,095,000, a decline of approximately 18.6%[81]. - The Group's total assets were approximately HK$135,067,000, while total liabilities were approximately HK$46,893,000, resulting in a gearing ratio of approximately 34.7%[115]. Cash Flow - For the six months ended June 30, 2021, the net cash generated from operating activities was HK$1,357,000, a decrease from HK$2,257,000 in the same period of 2020[22]. - The net cash generated from investing activities was HK$3,052,000, compared to a net cash used of HK$528,000 in the prior year[22]. - The net cash used in financing activities was HK$2,626,000, down from HK$3,462,000 in the previous year[22]. - Cash and cash equivalents at the end of the period were HK$5,188,000, a decrease from HK$7,829,000 at the end of June 2020[22]. - The Group had cash and cash equivalents of approximately HK$5,188,000 as of June 30, 2021, an increase from approximately HK$3,415,000 in 2020[108]. Governance and Management - The company has complied with the Corporate Governance Code throughout the period, except for provisions A.2.1, A.4.1, and A.6.7[163]. - All independent non-executive directors have entered into letters of appointment for an initial term of three years, ensuring governance practices are maintained[169]. - The company does not have a separate chairman and CEO; the role of CEO is currently shared among executive directors[165]. - The board believes that the balance of power and authority is maintained through its operations, which include experienced individuals discussing operational issues[165]. - The company will arrange for the appointment of a new chairman and CEO when deemed appropriate[165]. - The governance practices are designed to be no less exacting than those prescribed by the Corporate Governance Code[169]. Future Outlook - The Group expects a challenging recovery path, with performance inevitably affected by the ongoing pandemic and the effectiveness of new vaccines[139]. - The Group will strictly adhere to its cost control policy and swiftly adjust business strategies in response to external environmental changes[141]. - The Group's performance in the upcoming period will depend significantly on the development of the pandemic and the effectiveness of vaccination efforts[141].
悟喜生活(08148) - 2021 - 中期财报