Financial Performance - Revenue for the six months ended June 30, 2024, was HK$36,476,000, a decrease of 48.2% compared to HK$70,326,000 in the same period of 2023[6]. - Gross profit for the period was HK$591,000, down from HK$3,930,000, reflecting a significant decline in profitability[6]. - Loss from operations increased to HK$96,407,000, compared to a loss of HK$31,202,000 in the prior year, indicating a worsening operational performance[6]. - Total comprehensive loss for the period was HK$105,339,000, compared to HK$51,238,000 in the same period last year, representing a 105.5% increase in losses[8]. - Loss per share for the period was HK$4.24, compared to HK$1.86 in the previous year, indicating a significant increase in per-share losses[8]. - Other income and loss, net, was a loss of HK$25,719,000, contrasting with a gain of HK$9,613,000 in the prior year, highlighting a negative shift in financial performance[6]. - The company reported a loss attributable to owners of the Company of HK$83,726,000, compared to HK$27,620,000 in the same period last year, indicating a significant increase in losses attributable to shareholders[8]. - The Group's overall loss for the period was HK$97,962,000, up from HK$33,672,000 in the previous year, reflecting a worsening financial position[26]. Operational Costs - Administrative expenses rose to HK$69,365,000, up from HK$42,455,000, reflecting increased operational costs[6]. - Distribution and selling expenses decreased slightly to HK$1,914,000 from HK$2,290,000, indicating some cost control measures[6]. - Research and development expenses for the six months ended June 30, 2024, amounted to HK$14,736,000, which is a 108.5% increase from HK$7,073,000 in 2023, highlighting increased investment in innovation[32]. - Depreciation of property, plant, and equipment for the period was HK$33,903,000, compared to HK$28,174,000 in 2023, showing a rise in asset depreciation costs[32]. - Interest expenses on borrowings decreased to HK$1,404,000 in 2024 from HK$2,094,000 in 2023, reflecting improved debt management[29]. - Finance costs decreased to approximately HK$1,555,000 from HK$2,470,000 due to partial loan repayment[61]. Assets and Liabilities - As of June 30, 2024, total assets less current liabilities amounted to HK$188,792,000, a decrease of 20.6% from HK$237,904,000 as of December 31, 2023[9]. - Net current liabilities improved to HK$8,065,000 from HK$26,690,000, indicating a significant reduction in short-term financial obligations[9]. - Trade and other payables decreased to HK$275,448,000 as of June 30, 2024, from HK$305,254,000, reflecting better management of liabilities[9]. - The company’s inventories significantly decreased to HK$12,537,000 from HK$40,504,000, indicating improved inventory turnover and management[9]. - Trade receivables decreased from HK$30,239,000 as of December 31, 2023, to HK$25,000,000 as of June 30, 2024, representing a decline of approximately 17%[36]. - Trade payables decreased from HK$77,795,000 to HK$65,816,000, reflecting a decline of approximately 15%[41]. Cash Flow and Financing - The company's net cash used in operating activities for the six months ended June 30, 2024, was HK$37,152,000, compared to HK$2,134,000 for the same period in 2023, reflecting increased operational challenges[13]. - Cash and cash equivalents at the end of the period increased to HK$4,844,000 from HK$1,629,000, showing improved liquidity[13]. - The company reported a net cash generated from financing activities of HK$39,376,000 for the six months ended June 30, 2024, compared to a net cash used of HK$1,912,000 in the same period of 2023, indicating improved financing conditions[13]. - The Group's issued and fully paid shares increased to 2,076,852,283 as of June 30, 2024, following a rights issue that raised approximately HK$59,336,000[48]. - As of June 30, 2024, net proceeds from the Rights Issue were fully utilized for operational costs, including material costs and staff costs[65]. Market Conditions - The Group's revenue from the Lithium Ion Motive Battery Business for the six months ended 30 June 2024 was HK$36,476,000, a decrease from HK$70,326,000 for the same period in 2023, representing a decline of approximately 48%[22]. - The Group's sales dropped by HK$33.9 million in the first half of 2024 due to adverse market conditions[56]. - Sales of new energy vehicles increased by approximately 30% in the first half of 2024, but the general sales price decreased by 5%-10%[55]. - Total output of lithium batteries in China exceeded 282GWh from January to April 2024, representing a year-on-year increase of 17.5%[55]. Corporate Governance - The company has complied with all applicable provisions of the Corporate Governance Code, except for the deviation where the chairman also serves as the CEO[93]. - The audit committee consists of three independent non-executive directors, ensuring compliance with the Listing Rules[97]. - The company emphasizes the importance of internal controls and has sufficient resources to comply with the Corporate Governance Code[94]. - The company has adopted the Model Code for securities transactions by directors, confirming compliance throughout the reporting period[97]. Shareholder Information - The Group's controlling shareholder is Double Key International Limited, incorporated in the British Virgin Islands[1]. - As of June 30, 2024, Double Key holds 1,357,815,432 shares, representing 65.38% of the total issued share capital of the Company[82]. - Cheng Hung Mui has a corporate interest in Double Key, which also holds 1,357,815,432 shares, equating to 65.38% of the total issued share capital[82]. - The Company has not been notified of any other substantial shareholders with interests of 5% or more in the shares or underlying shares as of June 30, 2024[85].
天臣控股(01201) - 2024 - 中期财报