Financial Performance - Revenue for the six months ended December 31, 2024, was HK$72,334,000, a decrease of 13.4% compared to HK$83,563,000 for the same period in 2023[7]. - Gross profit for the period was HK$43,921,000, down 13.7% from HK$50,860,000 in the previous period[7]. - Profit for the period increased to HK$11,637,000, representing a significant rise of 104.3% compared to HK$5,682,000 in the previous period[10]. - Earnings per share for the period were HK3.72 cents, up from HK2.18 cents in the previous period, reflecting a growth of 70.7%[10]. - Total comprehensive income for the period was HK$11,998,000, compared to HK$6,292,000 in the previous period, marking an increase of 90.5%[10]. - Profit before taxation for the six months ended 31 December 2024 was HK$11,987,000, an increase of 77.5% compared to HK$6,777,000 for the same period in 2023[21]. - The Group reported a profit before taxation of HK$11,987,000, compared to HK$6,777,000 for the same period last year, marking an increase of 77.5%[45]. - Profit attributable to owners of the Company for the same period was approximately HK$11.6 million, an increase from approximately HK$5.6 million in the previous period, mainly driven by the principal subsidiary Multitone Electronics PLC and a reduction in fair value loss on financial assets[121][126]. Revenue Breakdown - Revenue from technology system sales, including software licensing, was HK$60,378,000, down from HK$71,433,000, representing a decline of 15.5%[41]. - Revenue from installation and maintenance services increased to HK$24,820,000, up from HK$23,350,000, reflecting a growth of 6.3%[41]. - The Group's revenue for the six months ended December 31, 2024, was HK$72,334,000, a decrease of 13.4% compared to HK$83,563,000 for the same period in 2023 due to delays in Emergency Services orders in the UK and decreased sales in Germany[120][125]. Expenses and Costs - Distribution costs decreased to HK$12,280,000 from HK$13,826,000, a reduction of 11.2%[7]. - General and administrative expenses increased to HK$22,418,000 from HK$20,169,000, an increase of 11.1%[7]. - General and administrative expenses increased by approximately 11.2% to approximately HK$22 million compared to approximately HK$20 million in 2023, primarily due to higher administrative staff costs[123][128]. Assets and Liabilities - Current assets increased to HK$180,778,000 as of December 31, 2024, compared to HK$171,576,000 as of June 30, 2024[14]. - Net assets rose to HK$177,410,000 as of December 31, 2024, up from HK$165,412,000 as of June 30, 2024, indicating a growth of 7.3%[14]. - Trade and other receivables increased to HK$46,091,000 from HK$36,263,000, reflecting a growth of 27.1%[14]. - Cash and cash equivalents at the end of the period were HK$108,890,000, a decrease from HK$105,760,000 at the end of the previous year[21]. - The total equity at 31 December 2024 was HK$177,410,000, an increase from HK$140,885,000 at 31 December 2023, reflecting a growth of 26%[18]. Cash Flow and Financing - Net cash generated from operating activities for the six months ended 31 December 2024 was HK$6,875,000, compared to HK$11,115,000 in 2023, reflecting a decrease of 38.5%[21]. - The company incurred finance costs of HK$231,000 for the six months ended 31 December 2024, a decrease from HK$294,000 in the same period of 2023[21]. - The repayment of lease liabilities amounted to HK$2,006,000 for the six months ended 31 December 2024, compared to HK$1,862,000 in 2023[21]. Taxation - Current tax expense decreased to HK$350,000 from HK$1,095,000, a reduction of 68.0%[54]. - The corporate income tax rate for the Group's German subsidiary remained at 31.45% for both years[57]. - The PRC subsidiary's enterprise income tax rate was maintained at 25% for both years[57]. Investments and Fair Value - The Group recorded an overall fair value loss on financial assets of approximately HK$0.4 million during the period, attributed to changes in market sentiment[130][132]. - As of 31 December 2024, the fair value of listed equity investments in Hong Kong classified as financial assets at fair value through profit or loss amounted to approximately HK$3.3 million, up from approximately HK$0.4 million on 30 June 2024[131]. - The Group held 101,000 shares in STAR CM Holdings Limited, with an accumulated unrealized loss of approximately HK$2.3 million as of 31 December 2024[138]. - The Group held 14,660,000 shares in China Environmental Resources Group Limited, with an accumulated unrealized loss of approximately HK$399,600 during the period[140]. Dividends - The Group has resolved not to pay any interim dividend for the six months ended 31 December 2024, consistent with the decision in 2023[63]. - The Board resolved not to declare an interim dividend for the six months ended 31 December 2024, consistent with the previous year[119][124]. Market and Strategic Initiatives - The UK remains the largest market for the company, with both revenue and profit on target, and several large contracts in the Emergency Services sector expected in early 2025[189]. - The company is investing in a rebranding initiative to modernize its image while maintaining a connection to its history, with the new branding set to launch on July 1, 2025[175][177]. - The company plans to expand its sales team to target new market sectors, particularly in the Baltic and Eastern European regions[174][189]. - The company is focusing on developing new products within its EkoTek® range to enhance staff safety and nurse call solutions, leveraging newer technology for greater bandwidth[184][187]. Product Development - The Multitone Nucleus™ product is currently in internal release, with external sales expected in the first quarter of 2025[180][185]. - The Multitone Evolve™ device is moving to the pilot stage, with expected sales availability in the second quarter of 2025[182][186]. - The company is set to release two major products in the first half of 2025, following a restructuring of its R&D efforts[175][177]. Operational Challenges - Sales in the EU market for the first half of the fiscal year were approximately HK$14.4 million, a decrease of 22.2% from approximately HK$18.5 million in the previous period[191][195]. - The increase in administrative expenses and the decrease in revenue highlight the need for strategic adjustments in operations and cost management moving forward[123][128]. - 看通集团有限公司在2024年下半年未能实现预期的欧元区复苏，导致运营受到 considerable 影响[144]. - 看通集团有限公司截至2024年12月31日的六个月收入和利润有所减少，但反映出对运营的深思熟虑和审慎管理[145].
看通集团(01059) - 2025 - 中期业绩