Financial Performance - Revenue for the six months ended June 30, 2024, was HKD 100,511,000, a decrease of 13.1% compared to HKD 115,611,000 for the same period in 2023[1] - Gross profit for the same period was HKD 16,811,000, down from HKD 17,436,000, reflecting a gross margin of 16.7%[1] - The company reported a loss before tax of HKD 24,459,000, compared to a loss of HKD 19,982,000 in the previous year, indicating a worsening financial performance[2] - The total comprehensive loss for the period was HKD 21,359,000, compared to HKD 26,646,000 in the same period last year, showing an improvement in overall losses[3] - The company reported a basic and diluted loss per share of HKD 7.75, compared to HKD 7.56 in the previous year, indicating a slight increase in loss per share[2] - The company experienced a significant increase in other net losses, reporting a loss of HKD 9,263,000 for the six months ended June 30, 2024, compared to HKD 1,365,000 in the same period of 2023, marking an increase of approximately 579%[26] Assets and Liabilities - Non-current assets decreased to HKD 118,233,000 from HKD 134,710,000, indicating a reduction in long-term asset value[4] - Current assets increased to HKD 202,398,000 from HKD 196,228,000, primarily driven by an increase in trade receivables[4] - The company's net asset value decreased to HKD 114,315,000 from HKD 135,674,000, reflecting a decline in equity[5] - Total liabilities as of June 30, 2024, included interest-bearing borrowings of HKD 39,194,000, with an interest rate ranging from 3.45% to 7.50%[32] - The company's cash and cash equivalents significantly decreased to HKD 7,344,000 from HKD 27,749,000, highlighting liquidity challenges[4] Revenue Sources - The group reported a revenue of HKD 100,511 thousand for the sale of prestressed high-strength concrete piles and other products for the six months ended June 30, 2024, a decrease of 13.1% compared to HKD 115,611 thousand in the same period of 2023[11] - Major customers contributing over 10% of total revenue included Customer A with HKD 11,951 thousand and Customer B with HKD 11,421 thousand for the six months ended June 30, 2024[11] - Revenue from external customers for the six months ended June 30, 2024, was HKD 100,511,000, a decrease of approximately 13% compared to HKD 115,611,000 for the same period in 2023[25] Expenses - Selling and distribution expenses decreased by 10% to HKD 20,927,000 for the six months ended June 30, 2024, primarily due to reduced transportation costs[27] - Administrative expenses decreased by 17% to HKD 9,861,000 for the six months ended June 30, 2024, mainly due to lower employee costs[28] Legal and Regulatory Matters - There are ongoing legal proceedings involving claims totaling HKD 262,000,000 against the company[39] - The company’s indirect wholly-owned subsidiary, New Way Financial Management, received a statutory demand for repayment amounting to approximately HKD 958,000 for overdue legal service fees[45] - A second statutory demand was issued to New Way Financial Management for an adjusted amount of approximately HKD 754,000, requiring payment within three weeks[45] - The court has frozen 70% of the equity in Guangdong Hengjia, which was reduced to 50% following a ruling on April 10, 2023[44] - New Way Financial Management has initiated legal proceedings against several borrowers who have failed to repay loans, including Hua Li Capital and Tailor Wealth[46] - The court has issued a winding-up order against Tailor Wealth, with joint liquidators appointed to investigate its assets and liabilities[47] - A winding-up order has also been issued against Mei Rui Group, with joint liquidators appointed[48] - New Way Financial Management has withdrawn claims against Shenzhen Sipin Investment due to insufficient evidence[49] - Fuzhou Xufai Trading has expressed willingness to negotiate repayment terms, offering a sincerity deposit of HKD 1,000,000[50] - Legal actions have been initiated against Mr. Chen for the recovery of unpaid loans, with the court ruling confirming his responsibility to repay the principal, accrued interest, and related legal fees[51] - Mr. Chen's bank accounts and assets have been frozen for one to three years to enforce the court's ruling[52] - Fuzhou Dongye Trading Co., Ltd. has been deregistered as of January 2024, impacting the recovery of loans transferred to Tianlang Group[53] Corporate Governance - The company has established an audit committee to oversee financial reporting, risk management, and internal controls[57] - All directors confirmed compliance with the standard code of conduct for securities trading during the six months ending June 30, 2024[58] - The company is in the process of identifying suitable candidates for the roles of chairman and CEO to comply with governance codes[56] Future Outlook - The anticipated GDP growth rate for China in the second half of 2024 is approximately 5%[41] - The company expects to benefit from supportive policies in the construction materials industry due to government measures aimed at stabilizing the property market[41] Miscellaneous - The company did not declare or recommend any interim dividend for the six months ended June 30, 2024, nor for the same period in 2023[19] - The company did not adopt any new or revised Hong Kong Financial Reporting Standards that have been issued but are not yet effective during the accounting period[9] - The company has no significant capital commitments as of June 30, 2024[38] - The company has not granted, exercised, canceled, or expired any share options during the fiscal years 2023 and 2024[34] - The company has no significant employee stock options or changes in director information to report as of June 30, 2024[42] - The company has not engaged in any significant litigation or arbitration as of the announcement date[53] - No purchases, sales, or redemptions of the company's listed securities occurred in the six months ending June 30, 2024[54] - The unaudited interim report for 2024 will be published on the company's website and the stock exchange's website at an appropriate time[59]
新威国际(00058) - 2024 - 中期业绩