Financial Performance - Revenue for the six months ended June 30, 2024, was HKD 36,476,000, a decrease of 48.2% compared to HKD 70,326,000 in the same period of 2023[1] - Gross profit for the same period was HKD 591,000, down 85.0% from HKD 3,930,000 in 2023[1] - Operating loss increased to HKD 96,407,000 from HKD 31,202,000 year-over-year, representing a 208.5% increase[2] - The total comprehensive loss for the period was HKD 105,339,000, compared to HKD 51,238,000 in the previous year, marking a 105.5% increase[2] - Basic and diluted loss per share was HKD 4.24, compared to HKD 1.86 in the same period last year, reflecting a 127.4% increase in loss per share[2] - The group recognized a net loss of HKD 97,962,000 for the six months ended June 30, 2024, compared to a loss of HKD 33,672,000 for the same period in 2023, indicating a worsening financial performance[17] Assets and Liabilities - Current assets decreased to HKD 284,614,000 from HKD 334,436,000, a decline of 14.9%[3] - Total liabilities decreased to HKD 310,083,000 from HKD 361,126,000, a reduction of 14.1%[3] - Net assets decreased to HKD 181,507,000 from HKD 227,521,000, a decline of 20.2%[4] - The group’s total assets for the lithium-ion battery segment amounted to HKD 494,874,000 as of June 30, 2024, down from HKD 594,943,000 as of December 31, 2023[13] - The group’s total liabilities for the lithium-ion battery segment were HKD 235,932,000 as of June 30, 2024, compared to HKD 270,788,000 as of December 31, 2023, showing a decrease in liabilities[13] Business Operations - The company continues to engage in the production and sale of lithium-ion power batteries and related equipment, indicating ongoing investment in the lithium-ion battery business[6] - The group reported external customer revenue of HKD 36,476,000 for the lithium-ion battery business for the six months ended June 30, 2024, compared to HKD 70,326,000 for the same period in 2023, representing a decline of approximately 48%[13] - The group incurred a total segment loss of HKD 89,399,000 for the lithium-ion battery business for the six months ended June 30, 2024, compared to a loss of HKD 25,562,000 for the same period in 2023, indicating a significant increase in losses[13] - The lithium-ion battery business experienced a 17.5% year-on-year increase in total production, reaching over 282 GWh from January to April 2024[34] - The average selling price of lithium-ion batteries decreased by approximately 10% due to oversupply of materials[34] - The group adjusted product prices in response to industry trends, resulting in a sales decline of HKD 33,900,000 in the first half of 2024[34] Research and Development - Research and development expenses, including depreciation and employee costs, increased to HKD 14,736,000 for the six months ended June 30, 2024, from HKD 7,073,000 for the same period in 2023, reflecting a growth of approximately 108%[17] - The group plans to focus on the R&D and production of lithium-ion battery products in the second half of the year, exploring new production methods to enhance efficiency and customization[35] Governance and Compliance - The financial statements were prepared in accordance with Hong Kong Accounting Standards, ensuring compliance with local regulations[7] - The company has adhered to all applicable provisions of the Corporate Governance Code, except for the deviation regarding the roles of Chairman and CEO being held by the same individual since August 1, 2019[52] - The Audit Committee is responsible for reviewing and supervising the financial reporting process and internal controls of the group[53] - All directors confirmed compliance with the standards set forth in the Listing Rules during the reporting period[54] Shareholder Information - The group did not recommend the payment of an interim dividend for the current period, consistent with the previous year[18] - The company plans to issue 593,365,583 shares at a subscription price of HKD 0.1 per share as part of a rights issue[29] - The net proceeds from the rights issue amounted to approximately HKD 57,915,000, which have been fully utilized as of June 30, 2024[49] Cash Flow and Receivables - As of June 30, 2024, the group's bank and cash balance was approximately HKD 4,844,000, up from HKD 2,598,000 as of December 31, 2023[44] - The group's trade receivables decreased from HKD 30,239,000 to HKD 25,000,000, reflecting a decline of approximately 17.1%[22] - The total trade receivables aged 0 to 60 days amounted to HKD 20,589,000, down from HKD 26,041,000, a decrease of about 21.0%[24] Risks and Future Outlook - The group does not foresee significant foreign exchange rate risks due to its operations primarily in China and transactions mainly in RMB[51] - The company cautions investors that the unaudited interim financial results and operational data for the six months ending June 30, 2024, are based on internal data and should not be relied upon excessively[55] - The interim report for the six months ending June 30, 2024, will be published on the Hong Kong Stock Exchange and the company's website at an appropriate time[56] - The group aims to continue developing its overseas sales network to enhance brand recognition and diversify its customer base[35]
天臣控股(01201) - 2024 - 中期业绩