Financial Performance - Revenue for the six months ended June 30, 2024, was HKD 34,506,000, a decrease of 10.0% compared to HKD 38,703,000 for the same period in 2023[2]. - Gross profit for the same period was HKD 95,000, down 50.0% from HKD 190,000 in 2023[2]. - The net loss for the six months ended June 30, 2024, was HKD 8,771,000, compared to a net loss of HKD 7,441,000 in 2023, representing an increase in loss of 17.9%[2][4]. - Basic and diluted loss per share was HKD 3.13 for the six months ended June 30, 2024, compared to HKD 2.90 in 2023, reflecting a 7.9% increase in loss per share[2]. - The company reported a total comprehensive expense of HKD (8,932,000) for the six months ended June 30, 2024, compared to HKD (7,477,000) in 2023, indicating a 19.5% increase in comprehensive expenses[3]. - Other income decreased significantly to HKD 142,000 for the six months ended June 30, 2024, from HKD 1,428,000 in 2023, a decline of 90.1%[2]. - The company reported a loss attributable to shareholders of approximately HKD 6,753,000 for the six months ended June 30, 2024, compared to a loss of HKD 5,332,000 in the same period of 2023[11]. - The company reported a loss before tax of HKD 6,753,000 for the six months ended June 30, 2024, compared to a loss of HKD 5,332,000 for the same period in 2023[32]. - The group’s total comprehensive loss before tax for the six months ended June 30, 2024, was HKD 8,771[20]. Assets and Liabilities - Total assets less current liabilities as of June 30, 2024, were HKD (18,748,000), compared to HKD (17,147,000) as of December 31, 2023[5][7]. - Cash and cash equivalents decreased to HKD 7,475,000 as of June 30, 2024, from HKD 11,866,000 at the beginning of the period, a decline of 37.0%[8]. - The company’s current liabilities increased to HKD 67,484,000 as of June 30, 2024, from HKD 56,049,000 as of December 31, 2023, representing a 20.4% increase[5]. - As of June 30, 2024, current liabilities exceeded current assets by approximately HKD 23,396,000, an increase from HKD 21,758,000 as of December 31, 2023[11]. - Trade receivables increased to HKD 34,530,000 as of June 30, 2024, compared to HKD 20,440,000 as of December 31, 2023, reflecting a growth of 69.0%[33]. - The total amount of trade payables and other payables rose to HKD 55,742,000 as of June 30, 2024, up from HKD 41,589,000 as of December 31, 2023, an increase of 33.9%[35]. - The company's net asset value was HKD 26,800,000 or HKD 0.11 per share as of June 30, 2024, down from HKD 28,000,000 or HKD 0.14 per share on December 31, 2023[57]. - The current ratio improved to 0.65 times on June 30, 2024, compared to 0.61 times on December 31, 2023[57]. Financing and Capital Management - The company received a letter of commitment from its controlling shareholder, Mr. Liu Xiaoying, on March 28, 2024, agreeing to provide sufficient funds to meet the group's financial obligations[12]. - The company has entered into subscription agreements with independent third parties to issue a total of 26,000,000 shares at HKD 0.26 per share, raising approximately HKD 6,760,000[12]. - The board believes that the group has sufficient cash resources to meet its operational funding needs and financial obligations for at least the next twelve months from June 30, 2024[13]. - The company plans to continue seeking alternative financing and bank loans to cover existing financial debts and future operational and capital expenditures[12]. - The board is considering further equity issuance or other fundraising activities to improve the financial situation and expand the capital base[12]. - The company completed a subscription agreement for 26,000,000 shares at HKD 0.26 per share, raising approximately HKD 6,720,000 for general working capital[63]. - The company plans to use the net proceeds from the 2024 subscription, amounting to HKD 6,720,000, for general operating funds, with HKD 3,499,000 already utilized as of June 30, 2024[84]. Business Operations and Strategy - The mobile phone and electronic products segment reported revenue of HKD 34,506, a decrease of 10.0% from HKD 38,703 for the same period in 2023[20]. - The mobile phone and electronic products segment incurred a loss of HKD 1,145, while the mining segment reported a loss of HKD 413, resulting in a total loss of HKD 1,558 for the group[20]. - The group is considering reapplying for an extended mining license for its mining operations in China, which currently has not generated any revenue[19]. - The group adopted a supply chain diversification strategy to enhance resilience and reduce risk concentration, which contributed to the shift in revenue sources from China to Hong Kong[42]. - The company has secured exclusive distribution rights for the "Philips" brand routers and related electronic products in China, Hong Kong, and Macau for five years[68]. - The group plans to expand its core business by engaging in distribution of "Philips" brand electronic products through distribution and licensing partnerships[69]. - The company is exploring potential business and investment opportunities to expand and enrich its existing business portfolio for sustainable growth[68]. - The group actively participates in the trade, wholesale, and retail of mobile phones and electronic products in China and Hong Kong, aiming for business growth through market, product, and distribution channel expansion[71]. Market and Economic Outlook - The company anticipates continued impact from the US-China trade war, leading to an uncertain outlook for the consumer and retail sectors in the coming years[75]. - China has approximately 1.7 billion mobile phone users, with significant growth in 5G users and network users, indicating substantial opportunities in mobile applications and commerce[75]. - By the end of 2023, telecom operators in China had deployed 3.4 million 5G base stations, with over 800 million mobile users having used 5G services, accounting for over 50% of mobile phone users[67]. - China plans to install 600,000 additional 5G base stations in 2024, aiming for approximately 3.64 million by the end of 2025, based on a population estimate[67]. Corporate Governance - The company has complied with the corporate governance code, with some deviations regarding the roles of the chairman and CEO[87]. - The board believes that the current arrangement of having the same individual serve as both chairman and CEO is beneficial for executing the company's business strategy[87]. - The Audit Committee consists of three independent non-executive directors, including Mr. Liang Wei Xiong as the chairman[88]. - The company has adopted a securities trading code that complies with the standards set out in Appendix C3 of the listing rules, confirming no violations by employees during the specified period[89]. Future Plans and Developments - The company is committed to maintaining a strong financial position and exploring new business plans to drive growth and create long-term value for shareholders[79]. - The company expects to leverage private social e-commerce to enhance user retention and generate higher returns compared to traditional advertising models by 2024[79]. - The "Bag Master" business, which integrates smart IoT terminals, aims to capitalize on the demand for eco-friendly bags and is expected to generate revenue through data monetization and advertising[78]. - By 2023, the "Bag Master" will focus on deepening market penetration and integrating with various eco-friendly bag brands and manufacturers[79]. - The company has established a technology team to optimize the bag retrieval process and enhance consumer feedback mechanisms since July 2022[78].
中国长远(00110) - 2024 - 中期业绩