Financial Performance - For the six months ended June 30, 2024, the company reported a revenue of HKD 5,361,000, a decrease of 60.3% compared to HKD 13,501,000 in the same period of 2023[3] - The cost of goods sold for the same period was HKD 3,059,000, resulting in a gross loss of HKD 3,410,000, compared to a gross profit of HKD 4,254,000 in 2023[3] - The net loss attributable to the company for the period was HKD 3,410,000, compared to a profit of HKD 4,254,000 in the prior year[3] - The basic and diluted loss per share from continuing operations was HKD 3.15, compared to a loss of HKD 8.79 in the same period of 2023[3] - The loss from continuing operations for the six months ended June 30, 2024, was HKD 3,410,000, compared to a loss of HKD 3,173,000 for the same period in 2023[19] - The company reported a profit from discontinued operations of HKD 7,427,000 for the six months ended June 30, 2023, primarily from the sale of its loan brokerage and credit assessment services[21] - The company reported a loss of approximately HKD 3,400,000 for the six months ending June 30, 2024, compared to a profit of about HKD 4,300,000 for the same period in 2023[51] Assets and Liabilities - As of June 30, 2024, total assets were HKD 18,740,000, down from HKD 28,737,000 at the end of 2023[4] - The company's current liabilities decreased to HKD 8,245,000 from HKD 13,450,000 at the end of 2023[4] - The net asset value as of June 30, 2024, was HKD 12,903,000, a decline from HKD 16,313,000 at the end of 2023[4] - The total borrowings of the company as of June 30, 2024, were approximately HKD 4,400,000, down from about HKD 7,300,000 as of December 31, 2023[52] - The company's debt-to-asset ratio was 19.3% as of June 30, 2024, compared to 23.8% as of December 31, 2023[52] - The current assets net value was approximately HKD 10,500,000 as of June 30, 2024, down from HKD 15,300,000 as of December 31, 2023[52] - Trade receivables, net of credit loss provisions, were HKD 2,240,000 as of June 30, 2024, down from HKD 12,919,000 at the end of 2023, indicating a significant reduction of about 82.7%[28] Cash Flow - The net cash generated from operating activities for the six months ended June 30, 2024, was HKD 5,345,000, compared to a net cash used of HKD (2,397,000) for the same period in 2023[9] - The cash and cash equivalents at the end of the period decreased to HKD 1,092,000 from HKD 2,624,000 in the previous year, reflecting a decline of 58.4%[9] - The financing activities resulted in a net cash outflow of HKD (4,771,000) for the six months ended June 30, 2024, compared to a net cash inflow of HKD 3,459,000 in 2023[9] Revenue Breakdown - Revenue from Hong Kong for the six months ended June 30, 2024, was HKD 5,060,000, down 28.3% from HKD 7,059,000 in 2023[16] - Revenue from Canada significantly decreased to HKD 301,000 from HKD 6,442,000 in the previous year, marking a decline of 95.3%[16] - The total revenue from the trading of footwear and sports-related peripheral products for the six months ended June 30, 2024, was HKD 5,361,000, a decrease of 60.3% from HKD 13,501,000 in 2023[14] - The revenue from the discontinued loan brokerage business dropped to zero from approximately HKD 2,000,000 for the six months ended June 30, 2023[48] Operational Changes - The group has ceased operations in the loan brokerage and credit assessment services segment as of June 30, 2023, impacting overall revenue reporting[15] - The company is focused on restructuring and exploring new strategies to improve financial performance in the upcoming periods[2] - The company is preparing new strategies to maintain and strengthen its position in the industry while seeking overseas opportunities to compensate for the weak domestic market[45] - The company aims to allocate internal resources to develop its existing trading business in shoes, clothing, and related products[45] Employee and Costs - The company incurred total operating expenses of HKD 2,462,000, which is a decrease from HKD 2,771,000 in the previous year[3] - Total employee costs for the six months ended June 30, 2024, were HKD 2,462,000, down from HKD 2,771,000 in the previous year, representing a decrease of approximately 11.1%[19] - Employee benefits expenses remained stable, increasing from approximately HKD 2,500,000 for the six months ended June 30, 2023, to approximately HKD 2,800,000 for the same period in 2024[49] - Financing costs decreased by 76.3%, from approximately HKD 773,000 for the six months ended June 30, 2023, to approximately HKD 182,000 for the same period in 2024, due to the repayment of most loans[50] Share Capital and Options - The company completed a share consolidation on March 21, 2023, converting 722,304,000 shares of HKD 0.01 each into 36,115,200 shares of HKD 0.20 each[34] - The company raised approximately HKD 14,446,000 from the issuance of 72,230,400 rights shares at a subscription price of HKD 0.20 per share[36] - The company has granted 807,886 share options with an adjusted exercise price of HKD 0.37 per share[8] - The total number of options available for grant under the share option scheme is 1,592,114 shares[61] - The company did not grant any options under the share option scheme during the reporting period[61] Corporate Governance - The audit committee reviewed the interim results for the six months ended June 30, 2024, and confirmed compliance with applicable accounting standards and GEM listing rules[69] - The unaudited interim results for the six months ending June 30, 2024, have been published on the Hong Kong Stock Exchange and the company's website[73] Market Conditions - The decline in revenue was primarily due to global economic uncertainty, slow recovery in the Chinese economy, and weak consumer spending, which impacted retail performance[47] - The company anticipates that the economic outlook will remain bleak, impacting consumer behavior and retail performance in Hong Kong[45]
积木集团(08187) - 2024 - 中期财报