Financial Performance - Revenue for the six months ended June 30, 2024, was HK$60,932,000, compared to HK$47,173,000 for the same period in 2023, representing a 29% increase[4] - Gross profit for the period was HK$19,661,000, up from a gross loss of HK$28,239,000 in the previous year[4] - Total comprehensive loss for the period was HK$28,660,000, an improvement from a loss of HK$31,559,000 in the same period last year, indicating a 9% reduction in losses[5] - Loss attributable to owners of the Company was HK$28,663,000, compared to HK$31,862,000 in the prior year, reflecting a 10% decrease[5] - Basic and diluted loss per share improved to (3.72) cents from (4.14) cents year-over-year[5] - For the six months ended June 30, 2024, the company reported a net cash outflow from operating activities of HK$2,556,000, compared to a net cash inflow of HK$304,000 for the same period in 2023[11] - The total comprehensive loss for the period was HK$28,660,000, with accumulated losses reaching HK$77,311,000 as of June 30, 2024[13] - Loss before income tax for the six months ended 30 June 2024 was HK$28,663, compared to a loss of HK$31,862 for the same period in 2023, indicating an improvement of 6.9%[74] Assets and Liabilities - Non-current assets decreased to HK$7,886,000 as of June 30, 2024, down from HK$10,015,000 at the end of 2023[7] - Current assets totaled HK$101,550,000, a decrease from HK$139,655,000 at the end of 2023, indicating a 27% decline[9] - Current liabilities decreased to HK$132,791,000 from HK$142,953,000, showing a reduction of 7%[9] - The Company reported a net current liabilities position of HK$31,241,000, worsening from HK$3,298,000 at the end of 2023[9] - Total equity showed a capital deficiency of HK$24,262,000 as of June 30, 2024, compared to total equity of HK$4,398,000 at the end of 2023[9] - Cash and cash equivalents at the end of the period decreased to HK$7,005,000 from HK$8,843,000 in the previous year, reflecting a net decrease of HK$1,838,000[11] - The cash and cash equivalents at the beginning of the period were HK$14,421,000, down from HK$16,850,000 in the previous year[11] - As of June 30, 2024, the company had net liabilities of approximately HK$24,262,000, indicating a challenging financial position[16] Cash Flow and Financing - The company is in the process of issuing convertible bonds amounting to HK$16,800,000 and straight bonds of HK$55,000,000 to offset existing convertible loan notes of approximately HK$72,300,000 due in October 2024[16] - The company is actively taking measures to collect loan receivables to improve operating cash flows and financial position[16] - The company reported a net cash outflow from investing activities of HK$141,000 for the six months ended June 30, 2024[11] - The Group's cash flow projections cover a period of not less than twelve months from the end of the reporting period, indicating sufficient capital to finance operations[19] - The directors believe that the Group will have sufficient capital to meet its financial obligations as they fall due within the next twelve months[19] Revenue and Income - Revenue from contracts with customers for the six months ended June 30, 2024, was HK$60,426,000, a decrease of 14% compared to HK$70,259,000 for the same period in 2023[31] - Other income, gains, and losses net for the period amounted to HK$60,932,000, down from HK$80,826,000 in the previous year[31] - The Group recognized an impairment loss on loan receivables of HK$28,334,000 under the expected credit loss model for the period[31] - The Group's interest income from other sources was HK$611,000 for the period[31] - The Group's loan interest income for the period was approximately HK$1 million, a decrease from HK$6 million in 2023, with a segment loss (before taxation) of approximately HK$14 million compared to HK$31 million in 2023[115] Segment Performance - Revenue from the Chinese products segment decreased from approximately HK$70 million in the corresponding period to approximately HK$60 million in the Period[111] - Revenue from the money lending segment decreased from approximately HK$6 million in the corresponding period to approximately HK$1 million in the Period[111] - The segment loss for Chinese health products was approximately HK$2 million, compared to a profit of approximately HK$3 million in the corresponding period[114] - The impairment loss in respect of loan receivables decreased from approximately HK$28 million in the corresponding period to approximately HK$6 million in the Period[113] - The Group's investment in financial instruments reported a segment loss of approximately HK$6 million for the period, compared to a segment profit of approximately HK$4 million in the previous year[122][123] Corporate Governance and Compliance - The Board believes the company has complied with all provisions of the Corporate Governance Code throughout the reporting period[154] - The Audit Committee has reviewed the unaudited condensed interim financial statements for the six months ended June 30, 2024[154] - The company has independent non-executive directors who ensure compliance and governance[156] - The company has made specific inquiries to its Directors regarding compliance with the Model Code for securities transactions[154] Future Plans and Strategies - The Group plans to strengthen the promotion of health care products, including cordyceps sinensis and ginseng, in response to increasing health awareness and an aging population in Hong Kong[128] - The Group aims to develop online sales channels for Chinese health products, capitalizing on the shift to online shopping since the COVID-19 outbreak[129] - Seasonal health and wellness promotions will be conducted regularly to maintain relationships with local customers and attract different customer groups[129] - The Group will introduce coupons on food delivery platforms and collaborate with service providers for live-streaming sales to broaden its customer base[129] - The retail industry faces challenges such as inflation and rising costs, but the Group aims to optimize operations using technology and data, including a potential CRM system[133]
中国智能健康(00348) - 2024 - 中期财报