Financial Performance - Revenue for the six months ended June 30, 2024, was HK$4,337,000, a decrease of 32.9% compared to HK$6,465,000 for the same period in 2023[2] - Other income decreased to HK$126,000 from HK$598,000, representing a decline of 78.9% year-on-year[2] - Loss before income tax for the period was HK$6,812,000, slightly higher than the loss of HK$6,621,000 in the previous year, indicating a 2.9% increase in losses[2] - Total comprehensive loss for the period attributable to owners of the Company was HK$6,267,000, compared to HK$5,691,000 in the same period last year, reflecting an increase of 10.1%[3] - Basic and diluted loss per share attributable to owners of the Company was HK$0.32, compared to HK$0.29 for the same period in 2023, marking an increase of 10.3%[3] - The company reported a loss before income tax of HK$6,812,000 for the six months ended June 30, 2024, compared to a loss of HK$6,621,000 for the same period in 2023[7] - The Group's loss attributable to owners for the six months ended 30 June 2024 was HK$6,267,000, compared to HK$5,691,000 in 2023, representing an increase in loss of approximately 10%[32] - The turnover for the six months ended 30 June 2024 was HK$4,377,000, a decrease of approximately 33% from HK$6,465,000 in the same period last year[32] Assets and Liabilities - Non-current assets decreased to HK$24,913,000 as of June 30, 2024, from HK$24,719,000 at the end of 2023, a decline of 0.8%[4] - Current assets totaled HK$86,813,000, down from HK$90,243,000 at the end of 2023, representing a decrease of 3.0%[4] - Trade receivables significantly decreased to HK$358,000 from HK$3,061,000, a decline of 88.3%[4] - Inventories stood at HK$43,948,000, slightly down from HK$44,513,000, indicating a decrease of 1.3%[4] - Net assets decreased to HK$76,362,000 as of June 30, 2024, from HK$83,174,000 at the end of 2023, reflecting a decline of 8.2%[4] - Total equity as of June 30, 2024, decreased to HK$76,362,000 from HK$83,174,000 as of December 31, 2023, representing a decline of approximately 8.7%[5] - The Group's reportable segment assets as of June 30, 2024, totaled HK$332,619,000, down from HK$339,915,000 as of December 31, 2023, reflecting a decrease of about 2%[17] - The Group's total liabilities increased to HK$35,364,000 as of June 30, 2024, compared to HK$31,788,000 as of December 31, 2023, marking an increase of approximately 11%[17] Revenue Breakdown - Revenue from enterprise software products decreased to HK$1,105,000 in the first half of 2024, down 74.5% from HK$4,313,000 in the same period of 2023[13] - Professional services revenue increased to HK$1,608,000 in the first half of 2024, up 51.3% from HK$1,064,000 in the same period of 2023[13] - Sales of rehabilitation products rose to HK$1,624,000 in the first half of 2024, compared to HK$1,088,000 in the same period of 2023, marking an increase of 49.2%[13] - The Group's jewellery products segment reported revenue of HK$2,713,000 for the six months ended June 30, 2024, down from HK$5,377,000 in 2023, indicating a decline of approximately 50%[15] - The IT products and services segment generated revenue of HK$1,624,000 for the six months ended June 30, 2024, compared to HK$1,088,000 in the same period of 2023, reflecting an increase of about 49%[15] - Revenue from sales of rehabilitation products amounted to HK$1,624,000, an increase from HK$1,088,000 in 2023[32] Cash Flow and Expenses - Cash and cash equivalents at the end of the period were HK$20,137,000, a slight decrease from HK$20,219,000 at the end of the previous period[7] - The company experienced a net cash outflow from operating activities of HK$82,000 for the six months ended June 30, 2024, compared to a net outflow of HK$1,002,000 in the same period of 2023[7] - Employee benefits expenses for the same period were HK$775,000, down from HK$1,501,000, reflecting a reduction of 48.3%[37] - The Group's net current assets as of June 30, 2024, were HK$11,804,000, a decrease from HK$12,735,000 as of December 30, 2023, representing a decline of 7.3%[38] Corporate Governance and Compliance - The Company has complied with the Corporate Governance Code set out in Appendix 15 of the GEM Listing Rules during the period ended 30 June 2024[49] - The audit committee reviewed the unaudited consolidated results for the six months ended 30 June 2024, confirming compliance with applicable accounting standards[49] - The Company has established good corporate governance practices essential for growth and safeguarding shareholders' interests[49] - The audit committee's principal duties include reviewing and supervising the financial reporting process and risk management systems[49] - The Company has adopted a code of conduct regarding securities transactions by directors, ensuring adherence to GEM Listing Rules[50] - All directors confirmed compliance with the required standard of dealings regarding securities transactions throughout the six months ended 30 June 2024[50] Shareholding Structure - As of June 30, 2024, Ms. Li Xia holds 804,159,697 shares, representing 41.29% of the company's issued share capital[41] - Mr. Chen Yin owns 149,455,740 shares, accounting for 7.67% of the company's issued share capital[41] - CK Hutchison Holdings is deemed to be interested in 143,233,151 shares through its controlled companies, which is 7.35% of the company's issued share capital[46] - Mr. Lau Cheung Hung holds 162,752,000 shares, representing 8.35% of the company's issued share capital[46] - Ocean Expert Investments Limited, wholly owned by Ms. Li Xia, is the beneficial owner of 804,159,697 shares[47] - Flourish Zone Limited, wholly owned by Mr. Chen Yin, is the beneficial owner of 149,455,740 shares[47] - No other interests or short positions in the issued share capital of the company were reported as of June 30, 2024[47] - The company maintains a register of interests and short positions as required by the Securities and Futures Ordinance[45] - The interests of directors and chief executives are disclosed under the provisions of the Securities and Futures Ordinance[45] - The company has not been notified of any other interests or short positions beyond those disclosed[48] Market and Economic Context - China's GDP grew by 5% in the first half of 2024, driven by industrial production and export recovery[39] - Retail sales of consumer goods increased by 4.7%, but gold jewelry sales fell by 27% due to high gold prices averaging around US$2,250 per ounce[39] - The Group expects significant growth in spending for child rehabilitation services in 2024, positively impacting its rehabilitation segment[39] - The Group will continue to scale down its IT Products and Services segment[39]
御德国际控股(08048) - 2024 - 中期财报