Revenue and Profit Performance - Revenue for the period decreased by approximately $0.5 million to $3.1 million, primarily due to a $1.3 million decrease in PCB and AI materials trading, offset by an $0.8 million increase in TV rental income[4] - Gross profit increased from $1.2 million in 2023 to $1.5 million in 2024, driven by higher margins from TV rental income[4] - The Group recorded a loss of approximately $0.1 million for the six months ended 30 June 2024, compared to a loss of $2.2 million in the same period in 2023[4] - Loss per share for the period was $0.02 cents, compared to $0.19 cents in the same period in 2023[4] - Revenue for the six months ended 30 June 2024 decreased to $3,132 thousand, compared to $3,588 thousand in the same period in 2023, representing a decline of 12.7%[89] - Gross profit increased to $1,452 thousand in H1 2024, up from $1,178 thousand in H1 2023, reflecting a 23.3% growth[89] - Loss for the period improved significantly to $134 thousand in H1 2024, compared to a loss of $2,201 thousand in H1 2023[89] - Total comprehensive expense for the period was $1,557 thousand in H1 2024, down from $2,958 thousand in H1 2023[89] - Loss attributable to owners of the company was $498 thousand in H1 2024, a significant improvement from $2,059 thousand in H1 2023[90] - Net loss for the six months ended 30 June 2024 was approximately $0.1 million[96] - Revenue from major products and services for the six months ended 30 June 2024 was $3.132 million, with $1.385 million from trading of PCB and AI-related products and $1.747 million from transmission and broadcasting services[108] - Segment revenue for the six months ended 30 June 2024 was $3.132 million, with $1.385 million from the trading business and $1.747 million from the CMMB business[104] - Segment profit for the six months ended 30 June 2024 was $750,000, with a loss of $57,000 in the trading business and a profit of $807,000 in the CMMB business[104] - Revenue from major products and services for the six months ended 30 June 2023 was $3.588 million, with $2.659 million from trading of PCB and AI-related products and $929,000 from transmission and broadcasting services[108] - Segment revenue for the six months ended 30 June 2023 was $3.588 million, with $2.659 million from the trading business and $929,000 from the CMMB business[106] - Segment profit for the six months ended 30 June 2023 was $203,000, with a profit of $221,000 in the trading business and a loss of $18,000 in the CMMB business[106] Cost and Expense Management - Cost of sales decreased by approximately $0.7 million due to lower direct costs and sales costs[4] - Administrative expenses remained steady at approximately $0.5 million compared to the same period in 2023[4] - Market development and promotion expenses decreased from approximately US$0.4 million to US$0.1 million due to tighter cost control[5][10] - Finance costs for the period amounted to approximately US$0.4 million, mainly from effective interest expense on convertible notes[6][11] - Staff costs for the period amounted to approximately US$0.3 million, compared to US$0.4 million in the six months ended 30 June 2023[32] - Market development and promotion expenses for the six months ended 30 June 2024 were $41,000, compared to $450,000 for the same period in 2023[104][106] - Unallocated expenses for the six months ended 30 June 2024 were $190,000, compared to $251,000 for the same period in 2023[104][106] - Staff costs, including Directors' remuneration, were $306,000 for the six months ended 30 June 2024, down from $386,000 in the same period in 2023[115] - Legal and professional fees increased to $76,000 for the six months ended 30 June 2024, up from $25,000 in the same period in 2023[115] Financial Position and Assets - The Group recorded a net loss of approximately US$0.1 million during the period, with net current assets of approximately US$6.5 million as of 30 June 2024[15][18] - Convertible notes as of 30 June 2024 amounted to approximately US$9.2 million, with a gearing ratio of approximately 21.0%[20][26] - The Group maintained cash and cash equivalents of approximately US$0.7 million as of 30 June 2024[15][18] - Non-current assets decreased slightly to $34,313 thousand as of 30 June 2024, compared to $34,763 thousand as of 31 December 2023[91] - Current assets decreased to $9,538 thousand as of 30 June 2024, down from $10,022 thousand as of 31 December 2023[91] - Net current assets stood at $6,467 thousand as of 30 June 2024, compared to $7,281 thousand as of 31 December 2023[91] - Total equity decreased to $31,565 thousand as of 30 June 2024, down from $33,119 thousand as of 31 December 2023[92] - Equity attributable to owners of the company decreased to $25,922 thousand as of 30 June 2024, compared to $27,840 thousand as of 31 December 2023[92] - Net current assets as of 30 June 2024 were approximately $6.5 million[96] - Net cash generated from operating activities for the six months ended 30 June 2024 was $510,000, compared to a net cash used of $2.127 million in the same period in 2023[94] - Net cash used in financing activities for the six months ended 30 June 2024 was $516,000, compared to net cash generated of $688,000 in the same period in 2023[94] - Cash and cash equivalents at the end of the period were $722,000, down from $727,000 at the beginning of the period[94] - Accumulated losses as of 30 June 2024 were $266.275 million, compared to $265.777 million at the end of 2023[93] - Total comprehensive expense for the six months ended 30 June 2024 was $2.629 million, compared to $2.71 million in the same period in 2023[93] - The company's share capital remained unchanged at $46.012 million as of 30 June 2024[93] - The carrying value of spectrum usage rights was $23,807,000 as of 30 June 2024, with no impairment loss recognized for the period[117][118][119] - The recoverable amount of spectrum usage rights is determined using a VIU calculation with a discount rate of 15.26% (up from 14.16% in the previous period)[120] - The cost of equity for the year is 13.43%, calculated using a risk-free rate of 3.87%, equity beta of 0.91, and market risk premium of 7.17%[120] - The cost of debt for the year is estimated at 8.5%, based on the US Prime Lending Rate[120] - The weight of debt and equity is estimated at 72% and 28% respectively, compared to 47% and 53% in the previous period[120] - The specific risk premium for the year is 3.5%, up from 3% in the previous period[120] - Cash flow projections for spectrum usage rights beyond the three-year period use a steady growth rate of 2.18% per annum[120] - Trade receivables decreased from $3.8 million in December 2023 to $2.3 million in June 2024, with over 120 days receivables dropping from $1.7 million to $606,000[124] - Trade payables decreased from $797,000 in December 2023 to $532,000 in June 2024, while accruals increased from $767,000 to $1.5 million[126] - The liability component of 2028 Convertible Notes increased from $8.9 million in December 2023 to $9.2 million in June 2024[128] - As of 30 June 2024, the amount due from CCH, a related company controlled by the Chairman, was USD 5,867,000, compared to USD 5,509,000 as of 31 December 2023[139] Convertible Notes and Share Issuance - CCH holds convertible notes with a principal amount of US$12,000,000, convertible into 266,742,857 shares, representing 14.88% of the total issued shares as of 30 June 2024[46][52] - The company issued USD 96,000,000 convertible notes (2025 CN) on 29 May 2018, with a maturity date of 28 May 2025, convertible at HK$0.4 per share, representing 41.5% of the total issued shares on a fully diluted basis[58][59] - The 2025 CN was split into a liability component of USD 44,137,000 and an equity component of USD 51,863,000, with the liability component measured at an effective interest rate of 11.41% per annum[60][63] - The conversion price and number of shares for the 2025 CN were adjusted to HK$8 and 84,390,000 shares respectively after a share consolidation on 12 November 2019, and further adjusted to HK$8.088 and 83,471,810 shares retrospectively from 18 February 2020[60][63] - On 29 June 2021, the company entered into a subscription agreement to issue USD 65,000,000 convertible notes (2028 CN), which will mature on the seventh anniversary of the issue date, offsetting the 2025 CN[61][63] - The conversion price of HK$0.35 per share for the 2028 CN represents a premium of 22.81% to the closing price on 29 June 2021, with a maximum of 1,444,857,142 shares issuable upon full conversion[62][63] - As of 30 June 2024, the outstanding principal amount of the 2028 CN is USD 12,000,000, which, if fully converted, would increase the issued shares by 266,742,857, representing 14.88% of the issued shares as of 30 June 2024[65][68] - The conversion of the 2028 CN would dilute the equity interest of substantial shareholders, with CCH's shareholding decreasing from 56.42% to 49.93% upon full conversion[67] - The conversion of the 2028 convertible notes will not result in the number of shares held by the public falling below 25% of the issued shares[70][76] - The total number of issued shares as of 30 June 2024 is 1,792,389,888[46][50][51] - The 2023 Share Option Scheme had 103,998,988 options available for grant as of 1 January 2024, increasing to 179,238,988 by 30 June 2024[53][55] - No shares were issued under the 2023 Share Option Scheme during the period, representing 0% of the weighted average number of shares[57] - No share options were granted, exercised, lapsed, or canceled under the 2023 Share Option Scheme during the period[57] - The number of share options available for grant under the 2023 Share Option Scheme increased from 103,998,988 as of 1 January 2024 to 179,238,988 as of 30 June 2024[141] Strategic Initiatives and Partnerships - The company plans to deploy a Low-Earth-Orbit (LEO) satellite constellation to deliver low-latency voice and broadband internet services across Asia[40] - The company will utilize a geostationary satellite platform to distribute popular content, digital infotainment, enterprise data services, and essential government information with minimal data cost for users[40] - The satellite network will provide robust broadband solutions, utilizing advanced data analytics to enhance network performance and user experience[40] - Strategic partnerships with governments, technology providers, and local stakeholders will be crucial for the company's success[41] - The company aims to address the increasing demand for high-speed, reliable internet in underserved and remote areas[39] - The company holds a 20% equity interest in Silkwave Holdings Limited, with a call option to acquire an additional 31%[121] - Silkwave indirectly holds a geosynchronous L-band satellite operating platform with 40MHz spectrum frequency covering China and Asia[121][122] - The platform includes the AsiaStar satellite capacity, network solutions, terminal applications, and a Silkwave-1 satellite design under procurement[121][122] - The satellite platform aims to deliver digital multimedia and internet-based content services to vehicles and mobile devices across China and the Asia-Pacific region[121][122] - Silkwave's satellite-related assets were impaired to approximately $1.2 million due to lower value in use compared to carrying amount[123] Corporate Governance and Compliance - The company did not declare any interim dividend for the six months ended 30 June 2024[138] - The company has not purchased, sold, or redeemed any of its listed securities during the period[74][80] - The company has adopted a code of conduct for directors' securities transactions, ensuring compliance with the Model Code for Securities Transactions by Directors of Listed Issuers[75][81] - The company has deviated from the CG Code provision C.2.1, as the roles of chairman and chief executive are not separate, with Mr. Wong Chau Chi holding both positions[82][84] - The Audit Committee, comprising independent non-executive directors, reviewed and recommended the adoption of the unaudited condensed consolidated financial statements for the period[83][85] - The company has a shareholder communication policy in place to facilitate efficient and sound communication with shareholders and other stakeholders[87][88] - The company's remuneration policy is reviewed annually and is in line with prevailing market practices[32] - The total compensation for key management personnel remained unchanged at USD 40,000 for the six months ended 30 June 2024 compared to the same period in 2023[143] Legal and Regulatory Matters - The group faces potential litigation in the US related to satellite assets in Asia and Africa, with claims including breach of contract and fraud[134] - The company proposed a share consolidation (20:1), capital reduction (HK$4.00 to HK$0.01), and share subdivision (1:400) on 8 August 2024[133] - The company has proposed a share consolidation, capital reduction, and share subdivision, with a ratio of 20 existing shares with a par value of HKD 0.20 each to be consolidated into 1 share with a par value of HKD 4.00, followed by a capital reduction of HKD 3.99 per share, reducing the par value to HKD 0.01, and then subdividing each unissued share into 400 new shares with a par value of HKD 0.01[136] Related Party Transactions - The company paid USD 12,000 in rental fees to CCH, a related party, during the six months ended 30 June 2024, the same amount as in the corresponding period in 2023[142] - As of 30 June 2024, the amount due from CCH, a related company controlled by the Chairman, was USD 5,867,000, compared to USD 5,509,000 as of 31 December 2023[139] Taxation - Hong Kong Profits Tax is calculated at 16.5% for the period, with the first HK$2,000,000 of assessable profit taxed at 8.25% under the two-tiered profits tax rates regime[111][112] - US Income Tax is charged at 24% on estimated assessable profits for the six months ended 30 June 2024[113][114] - Taiwan Income Tax is charged at 20% on estimated assessable profits, but no provision was made as the Group had no assessable profit in Taiwan for both periods[113][114] - PRC subsidiaries are subject to a 25% tax rate under the EIT Law, but no provision for PRC income tax was made as there was no taxable income for both periods[113][114] Employee and Management - The average number of employees for the period was approximately 23, down from 25 in the six months ended 30 June 2023[32] - Staff costs for the period amounted to approximately US$0.3 million, compared to US$0.4 million in the six months ended 30 June 2023[32] - Staff costs, including Directors' remuneration, were $306,000 for the six months ended 30 June 2024, down from $386,000 in the same period in 2023[115] - The total compensation for key management personnel remained unchanged at USD 40,000 for the six months ended 30 June 2024 compared to the same period in 2023[143] Investments and Acquisitions - The company did not make any significant investments as of 30 June 2024[38] - The company did not have any material acquisitions or disposals of subsidiaries, associates, and joint ventures during the period[34] - The company holds a 20% equity interest in Silkwave Holdings Limited, with a call option to acquire an additional 31%[121] - Silkwave indirectly holds a geosynchronous L-band satellite operating platform with 40MHz spectrum frequency covering China and Asia[121][122] - The platform includes the AsiaStar satellite capacity, network solutions, terminal applications, and a Silkwave-1 satellite design under procurement[121][122] - The satellite platform aims to deliver digital multimedia and internet-based content services to vehicles and mobile devices across China and the Asia-Pacific region[121][122] - Silkwave's satellite-related assets were impaired to approximately $1.2 million due to lower value in use compared to carrying amount
中播数据(00471) - 2024 - 中期财报