Financial Performance - For the six months ended June 30, 2024, the revenue was approximately HKD 20,068,000, a decrease of 50.3% compared to HKD 40,365,000 in the same period last year[7]. - The loss attributable to owners of the company for the six months ended June 30, 2024, was approximately HKD 7,686,000, an increase from HKD 3,785,000 in the previous year, primarily due to the sale of a subsidiary generating HKD 8,756,000 in 2023[7]. - The loss per share from continuing operations for the six months ended June 30, 2024, was approximately HKD 0.1244, compared to HKD 0.0672 in the previous year[7]. - The company recorded revenue of approximately HKD 20,068,000 for the six months ended June 30, 2024, a decrease of 50.3% compared to HKD 40,365,000 in the same period last year[20]. - The gross profit for the first half of 2024 was approximately HKD 10,642,000, a decrease of 15.8% from HKD 12,640,000 in the same period last year[20]. - The company reported a loss attributable to equity holders of approximately HKD 7,686,000 for the six months ended June 30, 2024, compared to a loss of HKD 3,785,000 in the previous year[22]. - The company reported a pre-tax loss of HKD 1,347 thousand for the six months ended June 30, 2024, compared to a pre-tax loss of HKD 3,883 thousand in the same period last year[63]. - The company generated HKD 14,202 thousand in revenue from Hong Kong, down from HKD 37,102 thousand in the previous year[57]. Dividends and Shareholder Returns - The board of directors did not recommend the payment of an interim dividend for the six months ended June 30, 2024, consistent with the previous year[7]. - The board does not recommend any interim dividend for the six months ending June 30, 2024, consistent with the previous year[158]. Risk Management and Strategy - The company has been focusing on prudent risk management to solidify and expand its artificial intelligence and other IT businesses amid geopolitical changes and macroeconomic volatility[9]. - The company is seeking potential acquisitions to achieve synergies without significantly impacting cash flow and resources[9]. - The audit committee and board have reviewed internal controls and implemented remedial measures to address previous audit reservations[8]. - The board is responsible for maintaining effective internal controls and risk management systems to protect shareholder investments[157]. Acquisitions and Joint Ventures - In January 2024, the company entered into a joint venture agreement to establish a joint venture aimed at promoting sustainable changes in the ESG sector, focusing on tokenization of carbon credits in the UAE[10]. - The joint venture has not commenced operations as of the report date[10]. - Gold Unity Limited acquired 100% equity of Popsible Limited for HKD 11,500,000, issuing 11,500,000 shares at HKD 1.00 each as payment[11]. - The company decided to terminate the proposed acquisition of Autostereoscopic 3D Limited due to unsatisfactory due diligence results, effective July 11, 2024[17]. - The proposed acquisition of Autostereoscopic 3D Limited was valued at HKD 100,000,000, to be settled through HKD 75,985,677.28 in promissory notes and the issuance of 11,117,742 shares[147]. - The acquisition was unilaterally terminated on July 11, 2024, with no further interests held by Marvion Group or Dr. Li in the 3,335,323 shares[147]. Employee and Administrative Expenses - The company employed a total of 58 full-time employees as of June 30, 2024, with total employee benefit expenses of approximately HKD 10,391,000 for the six months ended June 30, 2024, compared to HKD 8,509,000 in the previous year[19]. - The company’s administrative expenses for the first half of 2024 were approximately HKD 17,392,000, a decrease of 7.2% from HKD 18,748,000 in the previous year[20]. Assets and Liabilities - The total borrowings of the company as of June 30, 2024, were approximately HKD 64,034,000, slightly down from HKD 65,033,000 as of December 31, 2023[22]. - Non-current assets decreased from HKD 274,932 thousand to HKD 265,044 thousand, a decline of approximately 3.4%[31]. - Current assets decreased from HKD 74,952 thousand to HKD 69,440 thousand, a decline of approximately 7.4%[31]. - Total liabilities decreased from HKD 66,563 thousand to HKD 61,676 thousand, a decline of approximately 7.4%[31]. - The company’s total assets decreased from HKD 283,321 thousand to HKD 272,808 thousand, a decline of approximately 3.6%[32]. - The company’s cash and bank balances were approximately HKD 11,436,000 as of June 30, 2024, compared to HKD 11,595,000 as of December 31, 2023[21]. - The cash and cash equivalents at the end of the period were HKD 11,436 thousand, down from HKD 17,536 thousand[46]. - Trade receivables slightly decreased from HKD 15,584 thousand to HKD 15,483 thousand, a decline of approximately 0.7%[31]. - Trade payables as of June 30, 2024, were HKD 1,946,000, a decrease from HKD 3,455,000 as of December 31, 2023, indicating a reduction of approximately 43.7%[76]. - The company’s bank loans secured against investment properties amounted to HKD 39,216,000 as of June 30, 2024, down from HKD 43,460,000 as of December 31, 2023, indicating a decrease of approximately 9.5%[77]. Compliance and Governance - The company has complied with the GEM Listing Rules corporate governance code, except for the combined roles of the Chairman and CEO[150]. - The audit committee consists of three independent non-executive directors, ensuring oversight of financial reporting and compliance[155]. - The audit committee reviewed the unaudited interim financial statements for the six months ending June 30, 2024, confirming compliance with applicable standards[153]. - There were no significant events after the reporting period that require disclosure[159]. Stock Options and Shareholder Interests - The company has a total of 73,265,237 ordinary shares issued, with significant shareholdings by directors including Huang Jingzhao holding approximately 0.87% and Li Shiyong holding approximately 0.27%[109]. - The company has the authority to issue up to 6,176,523 shares under the 2023 share option plan, representing 10% of the issued shares as of the report date[135]. - The maximum number of share options that can be granted to each participant under the 2023 share option plan is capped at 1% of the issued shares as of the grant date[137]. - The share options granted do not have any performance targets associated with them[143]. - The company aims to attract and retain top talent through the 2012 Stock Option Plan, rewarding contributions to the group's growth[113]. - The company has no significant contracts with directors that would require compensation upon termination within one year, excluding statutory compensation[106]. - No rights were granted to directors or their immediate family members to acquire shares or debt securities of the company during the six months ending June 30, 2024[111]. - The company has not participated in any arrangements that would allow directors to acquire rights in any other corporate entities[111].
中国信息科技(08178) - 2024 - 中期财报