Financial Performance - For the six months ended June 30, 2024, the Group's revenue decreased by approximately 6.3% to approximately HK$29,930,000 compared to HK$31,932,000 in 2023[6]. - Gross profit for the same period was approximately HK$5,521,000, a decrease of 10.9% from HK$6,199,000 in 2023[6]. - The loss attributable to owners of the Company for the period was approximately HK$28,162,000, an increase of 32.5% from HK$21,251,000 in 2023[6]. - Total comprehensive income for the period was approximately HK$29,771,000, compared to HK$23,962,000 in 2023[10]. - Basic and diluted loss per share was HK$1.27, compared to HK$1.06 in 2023[10]. - The company reported a net loss for the period of HK$28,162,000, which is a significant impact on accumulated losses[13]. - The company reported a loss before tax of HK$28,403,000, which includes unallocated corporate expenses of HK$12,531,000 and finance costs of HK$3,315,000[24]. - The company reported a loss before tax of HK$21,324,000 for the six months ended June 30, 2024[32]. Revenue Breakdown - For the six months ended June 30, 2024, total revenue from external customers was HK$29,930,000, with the apparel segment contributing HK$23,122,000, money lending services HK$3,056,000, and trendy and cultural products HK$3,752,000[24]. - Revenue from apparel operation decreased by 12.5% to approximately HK$23,122,000, impacted by insufficient demand due to a slower-than-anticipated economic recovery in Mainland China[129]. - Revenue from money lending operation decreased by approximately 25.9% to approximately HK$3,056,000, down from HK$4,124,000 in 2023, due to a decrease in interest income[131]. - Revenue from IP application and products operation increased by 172.5% to approximately HK$3,752,000, compared to HK$1,377,000 in 2023[134]. Assets and Liabilities - As of June 30, 2024, total assets amounted to HK$197,518,000, an increase from HK$162,923,000 as of December 31, 2023, representing a growth of approximately 21.2%[11]. - Current liabilities increased significantly to HK$90,528,000 from HK$39,048,000, indicating a rise of approximately 132.5%[11]. - Net current assets decreased to HK$106,990,000 from HK$123,875,000, reflecting a decline of about 13.6%[11]. - The company reported a net cash used in operating activities of HK$50,031,000 for the six months ended June 30, 2024, compared to HK$29,041,000 in the same period of 2023, indicating a worsening cash flow situation[14]. - Cash and cash equivalents at the end of the period were HK$8,320,000, down from HK$24,340,000 in 2023, representing a decrease of approximately 65.8%[14]. - The company generated HK$43,793,000 from financing activities in the first half of 2024, a significant increase from HK$3,358,000 in the previous year[14]. - The company’s inventories increased to HK$23,732,000 from HK$8,435,000, indicating a substantial rise of approximately 180.5%[11]. - Total borrowings and lease liabilities as of June 30, 2024, were approximately HK$43,463,000, an increase from HK$32,908,000 as of December 31, 2023[170]. Expenses and Costs - Employee benefit expenses, including directors' emoluments and share-based compensation, decreased significantly to HK$12,918,000 from HK$23,753,000, a reduction of 45.6%[6]. - Selling and distribution expenses for the six months ended June 30, 2024, were approximately HK$1,533,000, a decrease of 12.0% from HK$1,743,000 in 2023, representing 5.1% of revenue[139]. - Administrative expenses decreased by approximately 33.6% to HK$22,023,000 for the six months ended June 30, 2024, down from HK$33,144,000 in 2023, primarily due to the absence of share-based compensation[140]. - Finance costs increased by 1.8% to approximately HK$3,315,000 for the six months ended June 30, 2024, compared to HK$3,257,000 in 2023[143]. Share Capital and Equity - Share capital increased to HK$24,953,000 as of June 30, 2024, up from HK$21,371,000 at the end of 2023, reflecting a growth of approximately 12.1%[12]. - Total equity rose to HK$155,494,000 from HK$148,712,000, marking an increase of about 4.9%[12]. - The issued share capital increased from HK$21,370,763.24 to HK$24,952,763.24, with a total of 358,200,000 shares issued and allotted during the six months ended June 30, 2024[155]. Corporate Governance and Compliance - The financial statements have been prepared in accordance with Hong Kong Accounting Standards 34 and include applicable disclosure requirements of the Hong Kong Companies Ordinance and Listing Rules[16]. - The company has adopted new and revised Hong Kong Financial Reporting Standards effective from January 1, 2024, which did not have a material impact on the interim financial statements[19]. - The Group did not pay or propose any dividends during the six months ended June 30, 2024, consistent with 2023[58]. - The Group does not face any material foreign currency exchange risk, as most transactions are denominated in Renminbi or Hong Kong dollars[178]. - The Company has complied with the Corporate Governance Code, except for the deviation regarding the separation of the roles of chairman and chief executive officer[197]. Strategic Developments - The company continues to focus on its core business segments while managing losses and exploring potential strategies for improvement[24]. - The Group launched new businesses to develop new revenue sources and explore new potential customers during the reporting period[134]. - The Company plans to acquire not less than 20% of the entire issued share capital in Tonwell Security Limited, which provides security services across various sectors[153]. - A letter of intent was signed for a possible lease of a site measuring approximately 22,000-30,000 square meters for organizing Guochao-themed civic events, pending government approval[150]. - The Company expects the possible lease to expand its IP application and product operations in the PRC, enhancing its income sources[151].
天机控股(01520) - 2024 - 中期财报