Financial Performance - The Group's warehouse operation revenue decreased by approximately HK$2,092,000 to approximately HK$6,476,000 for the six months ended June 30, 2024, compared to approximately HK$8,568,000 for the same period in 2023[10]. - The segment loss for the warehouse operation was approximately HK$2,381,000 for the Period, compared to a segment profit of approximately HK$525,000 in the same period of 2023[10]. - The Group's general trading segment reported a loss of approximately HK$412,000 for the Period, an improvement from a loss of approximately HK$1,312,000 in the same period of 2023[15]. - The overall segment loss for the Group was approximately HK$50,114,000 for the Period, compared to a loss of approximately HK$63,953,000 in the same period of 2023[11]. - The Group recorded a loss of approximately HK$412,000 in the white liquor trading segment, an improvement from a loss of approximately HK$1,312,000 in the previous year[17]. - For the six months ended June 30, 2024, the loss attributable to owners of the Company was HK$60,823,000, compared to a loss of HK$88,833,000 for the same period in 2023, representing a 31.6% improvement[83]. - The total comprehensive expense for the period was HK$46,239,000, significantly lower than the HK$87,742,000 reported in the previous year[82]. - The total loss for the period was HK$60,823,000, compared to a loss of HK$88,833,000 for the same period in 2023, reflecting an improvement in financial performance[107][109]. Revenue and Expenses - The unaudited interim revenue for the six months ended June 30, 2024, was HK$8,799,000, a decrease of 72.7% from HK$32,271,000 in the same period of 2023[82]. - Gross profit for the period was HK$8,623,000, down from HK$24,799,000 in the previous year, reflecting a decline of 65.3%[82]. - Administrative and other operating expenses decreased by approximately 31.6% to about HK$24,130,000, down HK$11,160,000 compared to the same period in 2023[25]. - Finance costs increased by approximately 8.4% to about HK$19,577,000, up HK$1,523,000 from HK$18,054,000 in the previous year, primarily due to higher effective interest expenses on convertible bonds[28]. - The Group's cash and cash equivalents increased to approximately HK$38,179,000 as of June 30, 2024, compared to HK$31,985,000 at the end of 2023[28]. Operational Highlights - The average occupancy rate of the Group's warehouse during the Period was 100%, primarily used for storage of electric and non-electric power tools and spare parts[10]. - The Group's management expects the warehouse occupancy rate to maintain at a full 100% capacity throughout 2024[13]. - The total area of the Group's warehouse is approximately 48,600 square meters, divided into six units[10]. - The loan financing business in Beijing has completely ceased operations, and related subsidiaries will be disposed of to an independent third party in 2024[20]. Shareholder Information - As of June 30, 2024, Mr. Liu holds 1,552,750,000 shares, representing approximately 19.97% of the issued shares[57]. - Mr. Chen holds 800,000,000 shares and 200,000,000 underlying shares from convertible notes, totaling 1,000,000,000 shares, which is approximately 12.86% of the issued shares[58]. - The interests of Mr. Liu include shares held by Eastern Spring Global Limited, of which he is the beneficial owner[59]. - The interests of Mr. Chen include shares from Skill Rich Limited, of which he is also the beneficial owner[58]. - As of June 30, 2024, no other Directors or chief executives had interests or short positions in the shares or debentures of the Company[61]. Debt and Liabilities - The Group's total borrowings amounted to approximately HK$289,476,000 as of June 30, 2024, with HK$208,036,000 repayable within one year[28]. - The Group's current ratio as of June 30, 2024, was 0.14, down from 0.21 at the end of 2023, indicating a decline in liquidity[28]. - The Group's net current liabilities were approximately HK$667,662,000 as of June 30, 2024, compared to approximately HK$550,952,000 as of December 31, 2023[31]. - The Group's shareholder's deficit attributable to owners amounted to approximately HK$651,526,000 as of June 30, 2024, compared to approximately HK$634,624,000 at the end of 2023[28]. Future Outlook - The Group anticipates that market conditions for the liquor trading business will improve in the second half of 2024 due to government policies aimed at boosting domestic consumption[14]. - The Board decided not to review the Decision and will focus on enhancing business operations to comply with Rule 13.24 and resume trading as soon as practicable[50]. Share Options and Convertible Notes - The company issued convertible notes amounting to HK$200 million on July 31, 2020, with an initial conversion price of HK$1 per share[68]. - No convertible notes had been converted as of June 30, 2024, and no new shares were allotted or issued pursuant to the convertible notes[72]. - The company has a total of 200 million new shares that can be allotted upon full conversion of the convertible notes, representing approximately 2.57% of the issued share capital[68]. - The 2021 Share Option Scheme was approved on June 10, 2021, to motivate eligible participants and retain business relationships for long-term growth[74]. - A total of 293,000,000 share options were granted under the 2011 Share Option Scheme, with an exercise price of HK$0.200, valid until December 29, 2025[76]. Compliance and Governance - The Company has failed to maintain a sufficient level of operations and assets to support its continued listing as required under Rule 13.24 of the Listing Rules[49]. - The Audit Committee reviewed the interim financial statements and confirmed compliance with applicable accounting standards[78]. - The company expressed gratitude to its staff, shareholders, customers, and business partners for their support[80].
大中华金融(00431) - 2024 - 中期财报