Revenue and Business Performance - The Group's revenue from data center services reached approximately HKD 29.6 million, an increase of about HKD 18.8 million compared to the same period in 2023, primarily due to contributions from the new US data center[5]. - The US data center, which began operations in December 2023, generated revenue of approximately HKD 26 million during the reporting period[5]. - The Hong Kong data center, operational since November 2021, produced revenue of approximately HKD 3.6 million during the reporting period[5]. - The group recorded total revenue of approximately HKD 30,300,000 for the reporting period, an increase of HKD 18,000,000 compared to HKD 12,300,000 for the same period last year[13]. - Revenue from big data center services contributed approximately HKD 29,600,000, representing an increase of HKD 18,800,000 compared to HKD 10,800,000 for the same period last year[13]. - Revenue from lending business was approximately HKD 700,000, a decrease of HKD 800,000 compared to HKD 1,500,000 for the same period last year[14]. - For the six months ended June 30, 2024, the company reported revenue from continuing operations of HKD 30,258 thousand, a significant increase from HKD 12,300 thousand in the same period of 2023, representing a growth of 145%[47]. - The revenue breakdown shows that the United States contributed HKD 25,957 thousand and Hong Kong contributed HKD 4,301 thousand for the six months ended June 30, 2024[47]. - The company’s data center services generated external customer revenue of HKD 29,557 thousand, while the lending business contributed HKD 701 thousand for the same period[49]. Financial Position and Losses - The group recorded a loss of approximately HKD 2,900,000, a reduction of HKD 6,000,000 or 67.4% compared to a loss of HKD 8,900,000 for the same period last year[15]. - The company reported a loss before tax of HKD 2,910,000 for the six months ended June 30, 2024, an improvement from a loss of HKD 5,471,000 in the previous year[34]. - The total comprehensive loss for the period was HKD 2,898,000, compared to HKD 8,869,000 for the same period in 2023, indicating a reduction in losses[35]. - The company incurred a loss attributable to owners of the company of HKD 2,898,000 for the six months ended June 30, 2024, compared to a loss of HKD 8,869,000 for the same period in 2023, indicating an improvement of 67.3%[70][71]. - The company reported a decrease in cash and cash equivalents to HKD 3,071 thousand as of June 30, 2024, down from HKD 28,533 thousand as of June 30, 2023, a reduction of approximately 89%[43]. Lending and Credit Provisions - The Group's lending business generated revenue of approximately HKD 700,000 during the reporting period[6]. - As of June 30, 2024, the Group made a cumulative provision of approximately HKD 4.9 million for a loan due to credit status and collateral valuation[6]. - The Group's total outstanding loan principal and accrued interest amount to approximately HKD 24.3 million as of the report date[6]. - The expected credit loss model indicated a provision for impairment losses of HKD 2,554 thousand, with HKD 1,903 thousand from data center services and HKD 651 thousand from the lending business[49]. - The expected credit loss for the loans was HKD 4,905,000 as of June 30, 2024, down from HKD 8,547,000 in the previous year[77]. Operational Costs and Employee Expenses - Employee costs increased by approximately HKD 3,100,000 due to an increase in headcount for the US data center and multiple application development projects[15]. - Operating expenses increased by approximately HKD 1,100,000 due to the new US data center commencing operations in 2024[15]. - Short-term employee benefits for key management personnel increased to HKD 1,257,000 for the six months ending June 30, 2024, compared to HKD 815,000 in the previous year[83]. Assets and Liabilities - Total non-current assets increased to HKD 42,711 thousand as of June 30, 2024, from HKD 29,839 thousand as of December 31, 2023, representing a growth of approximately 43%[38]. - Current assets decreased to HKD 35,061 thousand as of June 30, 2024, down from HKD 40,303 thousand as of December 31, 2023, a decline of about 13%[38]. - Total current liabilities rose to HKD 23,243 thousand as of June 30, 2024, compared to HKD 15,733 thousand as of December 31, 2023, an increase of approximately 48%[39]. - The company recognized a total of HKD 9,097,000 in right-of-use assets during the interim period, compared to HKD 7,000,000 in the same period of 2023[74]. - The company reported a total of HKD 27,797,000 in impairment provisions for receivables as of June 30, 2024, compared to HKD 35,400,000 in the previous year[76]. Corporate Governance and Compliance - The company emphasizes the importance of good corporate governance to protect shareholder interests, adhering to GEM listing rules and maintaining high transparency[99]. - The management did not provide monthly updates to the board as per the corporate governance code but provided business updates as necessary, ensuring a balanced assessment of the company's performance and outlook[100]. - The audit committee, composed of three independent non-executive directors, is responsible for overseeing the financial reporting process and risk management[102]. Investments and Acquisitions - The company acquired property, machinery, and equipment worth approximately HKD 1,559,000 during the reporting period[22]. - The company has not authorized any significant investments or acquisitions during the reporting period[21]. - The company completed the sale of its data center services in China for a total consideration of HKD 37,000 thousand, with a net asset value of HKD 40,398 thousand at the time of sale[61]. Share Capital and Options - The total issued and fully paid ordinary shares as of June 30, 2024, were 548,408,822, with a total share capital of HKD 54,841,000[81]. - Wan Fung Industrial Co., Ltd. holds 279,815,740 shares, representing 51.02% of the total issued shares[94]. - The average share price for options granted on August 10, 2020, is HKD 0.26, with an expected volatility of 87.11%[92]. - The average exercise price for options granted on April 1, 2019, is HKD 1.1, with an expected volatility of 75.86%[92]. - The company approved a new share option plan on December 28, 2022, allowing directors to grant options to eligible persons for a period of 10 years[93].
加幂科技(08198) - 2024 - 中期业绩