Financial Performance - The company recorded revenue of approximately HKD 28.5 million for the six months ended June 30, 2020, a decrease of about 2.4% compared to HKD 29.2 million in the same period of 2019[6]. - The loss attributable to owners for the six months ended June 30, 2020, was approximately HKD 1.8 million, compared to a loss of about HKD 0.7 million in the same period of 2019[6]. - Total revenue decreased by approximately HKD 0.7 million or 2.4% to about HKD 28.5 million for the six months ended June 30, 2020, compared to approximately HKD 29.2 million for the same period in 2019[27]. - Revenue for the three months ended June 30, 2020, was HKD 13,623,000, a decrease of 6.0% compared to HKD 14,495,000 for the same period in 2019[58]. - Revenue for the six months ended June 30, 2020, was HKD 28,511,000, down 2.5% from HKD 29,236,000 in the prior year[58]. - The net loss for the six months ended June 30, 2020, was HKD 2,147,000, which is an increase of 147.0% from a loss of HKD 866,000 in the previous year[58]. - The company reported a pre-tax loss of HKD 1,440,000 for the three months ended June 30, 2020, compared to a loss of HKD 176,000 in the same period last year[58]. - For the six months ended June 30, 2020, the company reported a pre-tax loss of HKD 2,034,000, compared to a loss of HKD 508,000 for the same period in 2019, representing a significant increase in losses[67]. - The company experienced a net cash outflow from operating activities of HKD 2,045,000, compared to HKD 365,000 in the previous year, marking a substantial increase in cash used[67]. Employee Costs and Workforce - Employee costs rose by approximately 5.9% to about HKD 23.2 million for the six months ended June 30, 2020, compared to HKD 21.9 million in the same period of 2019[11]. - The total employee cost before capitalizing development costs was approximately HKD 23.2 million, an increase of about HKD 0.9 million or 4.0% compared to approximately HKD 22.3 million for the six months ended June 30, 2019[44]. - The group had 107 employees as of June 30, 2020, compared to 103 employees as of June 30, 2019, indicating a workforce increase primarily due to the redistribution of human resources to the Philippines representative office[44]. - Research and development costs included in employee costs for the six months ended June 30, 2020, were HKD 8,184,000, compared to HKD 5,988,000 in 2019, indicating a significant increase of 36.67%[87]. - The total short-term benefits for key management personnel increased to HKD 8,001,000 in 2020 from HKD 7,110,000 in 2019, reflecting a growth of approximately 12.5%[118]. Assets and Liabilities - The company maintained a net cash position as of June 30, 2020, with current assets of approximately HKD 80.0 million, down from HKD 91.2 million as of December 31, 2019[17]. - Non-current assets increased to HKD 21,591,000 as of June 30, 2020, compared to HKD 15,980,000 at the end of 2019[59]. - The company's total liabilities decreased to HKD 23,874,000 as of June 30, 2020, from HKD 26,188,000 at the end of 2019[61]. - The net asset value as of June 30, 2020, was HKD 74,702,000, a decrease from HKD 76,719,000 at the end of 2019[61]. - Total liabilities as of June 30, 2020, were HKD 26,925,000, down from HKD 30,507,000 as of December 31, 2019[83]. Government Support and Other Income - Other income increased by approximately 62.5% to about HKD 1.3 million for the six months ended June 30, 2020, primarily due to government subsidies received under the "Employment Support Scheme"[8]. - The company received government subsidies of approximately HKD 1,614,000 under the "Employment Support Scheme," with HKD 538,000 recognized as income[85]. - The company reported a total of HKD 1,280,000 in other income for the six months ended June 30, 2020, compared to HKD 805,000 in the same period of 2019, marking an increase of 58.77%[86]. Business Operations and Strategy - The core backup business remains stable despite a slight revenue decrease of about HKD 1.3 million or 4.4% due to the ongoing COVID-19 pandemic[26]. - The company remains optimistic about long-term growth in the backup software business, leveraging its strong online backup software foundation and global customer base[29]. - The company has purchased two additional office units in the Philippines to accommodate more employees and has begun renovations[27]. - The newly launched online information platforms, KINTIPS and KINBOY, primarily serve mobile applications, although their revenue contribution was not significant during the period[30]. - The company is closely monitoring the developments of the COVID-19 pandemic and its impact on financial performance and operations[29]. Corporate Governance - The company has adopted a set of conduct codes for directors' securities trading, which are not less stringent than the GEM Listing Rules[41]. - The company has complied with the corporate governance code as per GEM Listing Rules Appendix 15 throughout the six months ended June 30, 2020[42]. - The audit committee has reviewed the interim financial information for the six months ended June 30, 2020, ensuring compliance with applicable accounting standards and GEM Listing Rules[49]. - The company has confirmed compliance with the trading standards and conduct codes for directors throughout the reporting period[41]. Acquisitions and Investments - The group acquired a 52.17% stake in Ahsay Korea Co., Ltd. as of June 30, 2020, after investing a total of approximately HKD 2,022,000 in additional ordinary shares[109]. - The company aims to expand its core backup business in Korea through the acquisition of Asia Korea*, which was previously a distributor of the company's backup software in the region[112]. - The acquisition of Asia Korea* is part of the company's strategy to enhance its online distribution network for core backup services in Korea[114]. - The cash consideration paid for the acquisition was HKD 670,000, while the cash and bank balances acquired amounted to HKD 684,000, resulting in a net cash inflow of HKD 14,000[116].
亚势备份(08290) - 2020 - 中期财报