Revenue Performance - In the first half of 2024, the renewable energy business generated approximately HK$169.0 million in revenue, a decrease from HK$210.3 million in the same period of 2023[27]. - The e-commerce business contributed approximately HK$33.6 million in revenue in the first half of 2024, significantly increasing from HK$2.0 million in the first half of 2023[27]. - Revenue for the six months ended June 30, 2024, was HK$203,926,000, a decrease of 5.7% from HK$215,653,000 in the same period of 2023[78]. - Total revenue from contracts with customers was HK$203,712,000 in H1 2024, down from HK$215,312,000 in H1 2023, reflecting a decrease of about 5.4%[95]. - The total segment revenue for H1 2024 was HK$203,926,000, compared to HK$215,653,000 in H1 2023, indicating a decline of approximately 5.4%[99]. - Revenue from renewable energy systems decreased to HK$168,739,000 in H1 2024 from HK$209,983,000 in H1 2023, representing a decline of approximately 19.7%[95]. - Revenue from external customers in the PRC was HK$203,926,000 in H1 2024, down from HK$215,653,000 in H1 2023, reflecting a decrease of approximately 5.4%[105]. Profitability and Loss - The loss attributable to owners of the Company for the six months ended June 30, 2024, was approximately HK$11.2 million, a decrease of about 5.8% compared to a loss of approximately HK$11.9 million in 2023[32]. - The company reported a loss attributable to owners of approximately HK$11.2 million for the six months ended June 30, 2024, a decrease of about 5.8% compared to a loss of approximately HK$11.9 million for the same period in 2023[34]. - Operating loss widened to HK$18,573,000 from HK$9,170,000 year-over-year, indicating increased operational challenges[78]. - The company reported a total comprehensive loss of HK$18,582,000 for the period, compared to HK$17,749,000 in the previous year, indicating ongoing financial challenges[79]. - The total comprehensive loss for the period ended June 30, 2024, is HK$18,582,000, which includes a loss of HK$11,249,000 and other comprehensive losses of HK$7,333,000[84]. - The basic loss per share improved to HK$1.23 in the first half of 2024 from HK$1.57 in 2023, showing a reduction in loss per share of 22%[120]. Financial Position - The Group had a total of 5 contracts on hand as of the report date, with an unrecognized contract sum of approximately RMB392.1 million, up from RMB224.4 million as of December 31, 2023[27]. - Total assets increased to HK$550,751,000 as of June 30, 2024, compared to HK$259,387,000 at the end of 2023, showing significant growth in asset base[82]. - Total liabilities increased to HK$433,940,000 from HK$154,976,000, primarily due to higher trade and other payables[83]. - The current ratio decreased from 1.5 as of December 31, 2023, to 1.2 as of June 30, 2024, indicating a decline in liquidity[36]. - The gearing ratio improved from 37.3% as of December 31, 2023, to 19.6% as of June 30, 2024, reflecting a reduction in debt relative to equity[36]. - The net debt to equity ratio changed from (6.8%) to (47.3%), indicating a significant increase in net debt relative to equity[36]. - As of June 30, 2024, the total equity attributable to owners of the Company is HK$128,541,000, with accumulated losses of HK$213,394,000[84]. Expenses and Costs - Selling and administrative expenses increased to approximately HK$46.6 million in the relevant period, up from approximately HK$18.5 million in the last corresponding period, primarily due to a change in business strategy[33]. - Sales and administrative expenses rose to approximately HK$46.6 million, an increase of about HK$28.1 million from approximately HK$18.5 million in the previous year, primarily due to changes in business strategy[34]. - Staff costs, including directors' remuneration, reduced to HK$5,730,000 in the first half of 2024, a decrease of 40% from HK$9,467,000 in 2023[111]. - The cost of inventories recognized as an expense increased significantly to HK$12,528,000 in the first half of 2024, compared to HK$3,610,000 in 2023, indicating a rise of 248%[113]. - Total finance costs decreased to HK$168,000 in the first half of 2024, down 78% from HK$761,000 in the same period of 2023[110]. Share Capital and Financing - The Company entered into a placing agreement on 28 July 2023 for a maximum of 90,000,000 new ordinary shares at a gross price of HK$0.40 per share, with gross proceeds of approximately HK$14.9 million[71]. - A total of 37,176,000 new ordinary shares were successfully placed at a net price of HK$0.39, resulting in net proceeds of approximately HK$14.4 million[71]. - On 8 January 2024, the Company entered into a subscription agreement for a maximum of 40,000,000 new ordinary shares at a gross price of HK$0.40 per share, with gross proceeds of HK$16.0 million[72]. - The net proceeds from the subscription amounted to approximately HK$15.8 million, fully utilized according to the intended purposes disclosed[72]. - The total number of issued and fully paid shares increased to 928,006,000 as of June 30, 2024, from 760,830,000 at the beginning of 2023[13]. - The share capital increased from HK$8,508,000 on January 1, 2024, to HK$9,280,000 on June 30, 2024, reflecting an increase of approximately 9%[84]. - The share premium increased from HK$312,505,000 on January 1, 2024, to HK$342,715,000 on June 30, 2024, indicating a growth of approximately 9.7%[84]. Corporate Governance and Management - The Audit Committee is responsible for reviewing the Group's unaudited interim financial report for the six months ended June 30, 2024[77]. - The Company has complied with all applicable code provisions as set out in the Corporate Governance Code during the reporting period[68]. - Mr. Ding Ji was appointed as an executive Director on 15 April 2024[76]. - Dr. Tang Dajie was appointed as the chairman of the nomination committee on 15 April 2024[76]. - The company has not disclosed any other substantial shareholders with interests of 5% or more in the company's shares[66]. Employee and Workforce - The Group had 34 employees as of June 30, 2024, up from 24 employees as of December 31, 2023, reflecting growth in workforce[37]. - Key management personnel compensation for the year included short-term benefits of HK$2,596,000, down from HK$3,630,000 in 2023[15]. Other Financial Information - The Group has no significant exposure to foreign currency risk, as most transactions are conducted in Hong Kong dollars, USD, and RMB[44]. - The company had no contingent liabilities as of June 30, 2024[14]. - The company did not recommend the payment of a dividend for the six months ended June 30, 2024, consistent with the same period in 2023[13]. - The company has adopted all new and revised Hong Kong Financial Reporting Standards effective from January 1, 2024, with no significant changes to accounting policies[93].
中天顺联(00994) - 2024 - 中期财报