Financial Performance - The group's revenue decreased from approximately HKD 11,332,000 for the six months ended June 30, 2020, to approximately HKD 9,232,000 for the six months ended June 30, 2021, a reduction of about HKD 2,100,000[7]. - Gross profit for the six months ended June 30, 2021, was approximately HKD 2,161,000, with a gross margin of 23.41%, compared to a gross profit of HKD 1,505,000 and a gross margin of 13.28% for the same period in 2020[7]. - Loss attributable to equity shareholders decreased from approximately HKD 5,381,000 for the six months ended June 30, 2020, to approximately HKD 3,050,000 for the six months ended June 30, 2021, a reduction of about HKD 2,331,000[7]. - The company reported other income of HKD 1,129,000 for the six months ended June 30, 2021, significantly up from HKD 159,000 in the same period of 2020[17]. - The total comprehensive loss attributable to equity shareholders for the period was HKD 3,133,000, compared to HKD 5,264,000 for the same period in 2020[20]. - Basic and diluted loss per share for the six months ended June 30, 2021, was HKD 0.38, compared to HKD 0.67 for the same period in 2020[20]. - The company reported a pre-tax loss of HKD 3,081,000 for the six months ended June 30, 2021, an improvement from a loss of HKD 5,404,000 in the same period of 2020[30]. - The company reported a comprehensive loss of HKD 3,133,000 for the six months ended June 30, 2021, compared to a loss of HKD 5,264,000 in the same period of 2020[28]. - Total employee costs amounted to HKD 4,293,000 for the first half of 2021, down 10.2% from HKD 4,782,000 in the same period of 2020[81]. - Compensation for directors and key management personnel totaled HKD 2,477,000 for the six months ended June 30, 2021, compared to HKD 2,741,000 for the same period in 2020, reflecting a decrease of about 9.6%[17]. Assets and Liabilities - As of June 30, 2021, the total non-current assets amounted to HKD 8,913,000, a decrease of 18.0% from HKD 10,873,000 as of December 31, 2020[22]. - Current assets totaled HKD 40,668,000, down 9.9% from HKD 44,884,000 as of December 31, 2020[22]. - The company's total equity attributable to shareholders decreased to HKD 39,266,000 from HKD 42,399,000, a decline of 7.4%[25]. - The company recorded a decrease in inventory from HKD 420,000 to HKD 264,000, a reduction of 37.1%[22]. - The total liabilities decreased from HKD 8,502,000 to HKD 6,627,000, a decrease of 22.0%[22]. - Cash and cash equivalents decreased to HKD 38,366,000 from HKD 42,700,000, reflecting a decline of 10.9%[30]. - The net cash used in operating activities was HKD 1,597,000, compared to a net cash used of HKD 1,142,000 in the previous year[30]. - Current liabilities for accrued expenses decreased to HKD 919,000 in the first half of 2021 from HKD 1,432,000 in the same period of 2020, a reduction of 35.8%[91]. Revenue Breakdown - Revenue from Hong Kong was HKD 8,535,000, down from HKD 10,671,000 in 2020, indicating a decrease of about 20.0%[67]. - Revenue from Mainland China increased slightly to HKD 697,000 from HKD 661,000, reflecting a growth of approximately 5.4%[67]. - For the six months ended June 30, 2021, total revenue was HKD 9,232,000, a decrease from HKD 11,332,000 in the same period of 2020, representing a decline of approximately 18.5%[67]. - The decline in revenue was primarily due to reduced demand for identification photos during the COVID-19 outbreak and significant decreases in travel demand due to border control measures implemented since early 2020[115]. Business Strategy and Operations - The company is actively exploring new business opportunities to diversify its operations and broaden revenue sources for sustainable growth[101]. - The company is reassessing its self-service digital photo booth network strategy and seeking new locations with better business development potential after the expiration of licensing contracts[105]. - Management is focusing on upgrading IT infrastructure and verification centers to enhance service capabilities and operational efficiency[111]. - The company plans to apply its successful business model in Hong Kong to mainland China and other countries as part of its future development strategy[104]. - The company is expanding its self-service photo booth network in Guangdong Province and other regions, in collaboration with Guangzhou Zhuoteng Technology Co., Ltd.[177]. - The company has engaged suppliers to upgrade its IT infrastructure, including remote monitoring systems and electronic payment facilities, to meet future business trends and customer demands[177]. - The company is assessing the feasibility of upgrading its verification systems and IT infrastructure in Hong Kong and mainland China[177]. Compliance and Governance - The financial statements were prepared in accordance with the GEM Listing Rules and have been reviewed by the audit committee[43]. - The audit committee has reviewed the unaudited consolidated results for the six months ended June 30, 2021, and confirmed compliance with applicable accounting standards and GEM listing rules[170]. - The group has adopted revised Hong Kong Financial Reporting Standards, which did not have a significant impact on the financial results for the period[47]. - The group continues to monitor and assess the impact of accounting estimates and assumptions on its financial reporting[46]. - The report includes significant events and transactions affecting the group's financial position and performance since the last annual report[46]. Shareholder Information - Causeway Treasure holds 427,600,560 shares, representing 53.45% of the company's equity[161]. - Chen Yongji and Chen Tianqi each own approximately 47.25% of Causeway Treasure, which is a significant shareholder in the company[161]. - The company has no plans to issue any new shares, maintaining the total issued share capital at 800,000,000 shares[94]. - No stock options were granted, lapsed, exercised, or cancelled under the company's share option scheme during the six months ended June 30, 2021[165]. - Riccardo Costi, a non-executive director, has interests in Dedem S.P.A., which operates in a competitive business area, but the company maintains independence in its operations[166]. - As of June 30, 2021, there were no other disclosures of interests or positions held by directors or senior management that could potentially conflict with the company's business[166]. Future Plans and Utilization of Proceeds - The company raised approximately HKD 62 million from the sale of 200,000,000 shares at HKD 0.31 per share, with a net amount of approximately HKD 31.85 million[173]. - As of June 30, 2021, approximately HKD 7.72 million of the net proceeds had been utilized, leaving HKD 24.13 million unutilized[174]. - The company plans to extend the timeline for utilizing the unutilized net proceeds by 12 months to December 31, 2022, due to delays in business development caused by the COVID-19 pandemic and changes in government policies[177]. - All unutilized proceeds have been deposited in a licensed bank in Hong Kong as of the mid-term report date[178].
名仕快相(08483) - 2021 - 中期财报