Financial Performance - For the six months ended June 30, 2024, the company reported total revenue of HKD 15,904,000, a decrease of 17.9% compared to HKD 19,238,000 for the same period in 2023[7]. - The company incurred a loss attributable to owners of HKD 1,350,000 for the period, compared to a profit of HKD 1,593,000 in the previous year, indicating a significant decline in performance[7]. - The basic loss per share for the period was HKD 0.12, compared to earnings of HKD 0.14 per share in the same period last year[7]. - Operating loss for the period was HKD 1,269,000, contrasting with an operating profit of HKD 1,773,000 in the prior year[7]. - The company reported other comprehensive expenses of HKD 21,000 for the period, compared to HKD 431,000 in the previous year, reflecting a reduction in overall losses[7]. - Total revenue for the six months ended June 30, 2024, was HKD 15,904 million, down 17.9% from HKD 19,238 million in the same period of 2023[18]. - Revenue from services transferred over time amounted to HKD 8,027,000, while revenue from front-end trading solutions was HKD 4,726,000, and back-end settlement solutions was HKD 1,323,000[19]. - Revenue recognized from service provision for the six months ended June 30, 2024, was HKD 929 million, down from HKD 1,388 million for the same period in 2023, indicating a decline of approximately 33%[33]. - The company reported a loss attributable to owners of approximately HKD 1.4 million for the six months ended June 30, 2024, a decrease of about 184.7% compared to a profit of approximately HKD 1.6 million for the same period in 2023[64]. - Revenue from installation and customization services decreased significantly by approximately 47.7%, from about HKD 2.5 million to approximately HKD 1.3 million[55]. Cash Flow and Assets - Cash and cash equivalents rose to HKD 30,414 million from HKD 23,600 million, marking an increase of 28.9% year-over-year[12]. - Operating cash flow showed a net outflow of HKD 255 million for the six months ended June 30, 2024, compared to a net inflow of HKD 2,631 million in the same period of 2023[12]. - The company reported a net increase in cash and cash equivalents of HKD 1,897 million for the six months ended June 30, 2024, compared to HKD 964 million in the previous year[12]. - The total accounts receivable as of June 30, 2024, was HKD 2,701 million, an increase from HKD 2,433 million as of December 31, 2023, representing a growth of about 11%[38]. - The group's current assets reached approximately HKD 43.4 million as of June 30, 2024, down from HKD 44.9 million as of December 31, 2023, with cash and bank balances increasing to approximately HKD 30.4 million from HKD 23.6 million[65]. - The total amount of prepayments, deposits, and other receivables was HKD 3,451 million as of June 30, 2024, compared to HKD 3,495 million as of December 31, 2023[39]. - The group maintained strict control over overdue receivables, with the board regularly reviewing overdue balances[36]. Liabilities and Equity - Total liabilities increased to HKD 2,543 million in non-current liabilities, significantly up from HKD 162 million in the previous year[9]. - The company's total equity decreased to HKD 61,256 million as of June 30, 2024, down from HKD 62,568 million at the end of 2023[9]. - The group's total liabilities to total assets ratio increased to approximately 9.3% as of June 30, 2024, compared to about 6.13% as of December 31, 2023[41]. - The aging analysis of accounts payable showed that amounts overdue for more than 90 days decreased from HKD 42 million as of December 31, 2023, to HKD 2 million as of June 30, 2024[40]. - The impairment loss on accounts receivable was HKD 518 million as of June 30, 2024, slightly down from HKD 525 million as of December 31, 2023[35]. Operational Strategies and Future Outlook - The company plans to enhance its market presence and explore new strategies to recover from the current financial downturn[7]. - The company is focusing on improving operational efficiency and reducing costs in response to the declining revenue[7]. - Future outlook includes potential product innovations and technology advancements to drive growth[7]. - The company is assessing opportunities for market expansion and possible acquisitions to strengthen its competitive position[7]. Corporate Governance and Compliance - The company has adopted and complied with the corporate governance code as per GEM Listing Rules Appendix C1[96]. - The company has adopted the GEM Listing Rules regarding the trading conduct of directors and confirmed compliance with these standards for the six months ending June 30, 2024[97]. - The audit committee, including all independent non-executive directors, reviewed the unaudited financial performance for the six months ending June 30, 2024, and confirmed compliance with applicable accounting standards and GEM Listing Rules[99]. - The board of directors does not recommend the payment of dividends for the six months ending June 30, 2024, consistent with the previous year where no dividends were paid[100]. Shareholder Information - Quantsmile (BVI) Limited holds 411,902,870 shares, representing approximately 33.49% of the issued shares[86]. - 如鷹企業顧問有限公司 owns 706,816,910 shares, accounting for approximately 57.46% of the issued shares[86]. - Financial Data Technologies Limited and Mr. 聂凡淇 each hold 130,000,000 shares, which is about 10.57% of the issued shares[86]. - 交通銀行信託有限公司 acts as a trustee holding 85,140,000 shares, equivalent to 6.92% of the issued shares[86]. - As of June 30, 2024, the total number of share options available under the share option scheme is limited to 80,100,000 shares, representing approximately 6.51% of the issued share capital[90][92]. - The company granted a total of 5,040,000 reward shares to 13 selected individuals on May 13, 2024, with vesting conditions set for December 31, 2024, and December 31, 2025[92]. - The fair value of the reward shares granted on May 13, 2024, was determined to be HKD 0.08 per share[92]. Risk Management - The group is exposed to various financial risks, including credit risk, liquidity risk, and interest rate risk, but management expects no significant credit risk due to deposits in recognized banks[66][76][78]. - The group continues to monitor foreign exchange risks, although it currently has no foreign currency hedging policy in place[74].
电子交易集团(08036) - 2024 - 中期业绩