Financial Performance - Revenue for the six months ended December 31, 2024, was HK$21,662,000, a decrease of 75.8% compared to HK$89,336,000 in the previous period[8]. - Gross profit for the same period was HK$1,433,000, down 78.0% from HK$6,505,000 in the previous period[8]. - Loss before taxation was HK$24,998,000, compared to a profit of HK$51,092,000 in the previous period[8]. - Loss for the period amounted to HK$24,999,000, a significant decline from a profit of HK$50,798,000 in the previous period[8]. - Total comprehensive expense for the period was HK$30,061,000, compared to a comprehensive income of HK$5,418,000 in the previous period[10]. - Basic and diluted loss per share was HK$(2.67) cents, compared to earnings of HK$7.36 cents in the previous period[10]. - For the six months ended December 31, 2024, the company reported a loss before tax of HK$24,998,000 compared to a profit of HK$51,092,000 in the same period of 2023[23]. - The total comprehensive income for the period ended December 31, 2024, was a loss of HK$30,061,000, while the previous year reported a total comprehensive income of HK$5,418,000[23]. - For the six months ended December 31, 2024, the company reported a loss attributable to owners of HK$21,607,000, compared to a profit of HK$50,590,000 for the same period in 2023, representing a significant decline[68]. - General and administrative expenses increased by approximately 52.8% to about HK$17.6 million, up from approximately HK$11.5 million in the previous year, mainly due to increased research and administrative expenses related to the newly commenced green energy business[131][136]. Assets and Liabilities - Non-current assets decreased to HK$44,051,000 from HK$42,383,000 as of June 30, 2024[13]. - Current assets decreased to HK$212,443,000 from HK$220,006,000 as of June 30, 2024[13]. - Net current assets decreased to HK$56,296,000 from HK$62,186,000 as of June 30, 2024[13]. - Total equity decreased to HK$89,743,000 from HK$96,469,000 as of June 30, 2024[16]. - The total equity attributable to owners of the company decreased to HK$89,743,000 as of December 31, 2024, from HK$128,498,000 as of July 1, 2023[19]. - Trade receivables decreased from HK$150,366,000 as of June 30, 2024, to HK$134,555,000 as of December 31, 2024, with an increase in provision for impairment losses from HK$7,529,000 to HK$14,960,000[83]. - Other receivables increased from HK$45,584,000 to HK$60,712,000, with the provision for impairment losses remaining unchanged at HK$6,676,000[83]. - The total trade and other receivables decreased from HK$181,745,000 as of June 30, 2024, to HK$173,631,000 as of December 31, 2024[83]. - The ageing analysis of trade receivables showed a significant decrease in the 0-60 days category from HK$93,427,000 to HK$14,830,000, indicating potential collection issues[87]. - The carrying value of property, plant, and equipment decreased from HK$7,045,000 as of July 1, 2024, to HK$6,260,000 as of December 31, 2024, after accounting for depreciation and currency realignment[74]. Cash Flow - The net cash used in operating activities for the six months ended December 31, 2024, was HK$15,857,000, a decrease from HK$108,869,000 in the prior year[23]. - The company generated net cash from financing activities amounting to HK$27,793,000, compared to HK$58,334,000 in the previous year[25]. - As of December 31, 2024, cash and cash equivalents stood at HK$7,202,000, down from HK$8,527,000 at the end of December 2023[25]. Segment Performance - Revenue from Smart City Solutions was HK$15,833,000, down 78.6% from HK$73,962,000 in the previous year[42]. - The segment result for Smart City Solutions showed a loss of HK$7,677,000, contributing to a total loss before taxation of HK$24,998,000 for the Group[44]. - The Group recognized HK$21,349,000 in revenue at a point in time and HK$313,000 over time during the reporting period[44]. - Segment results showed a loss of HK$19,825,000 across various business segments[48]. Investments - Listed equity investments in Hong Kong rose to HK$15,158,000 as of December 31, 2024, up from HK$10,421,000 as of June 30, 2024, marking a 45% increase[96]. - The Group held 1,561,000 shares in Zijing International Financial Holdings Limited, with an accumulated unrealised loss of HK$12,629,438 during the year[175]. - The Group held 1,423,400 shares in GoFintech Innovation Limited, with an accumulated unrealised loss of HK$1,209,890 during the period[178]. - The Group held 180,000 shares in Worldgate Global Logistics Ltd, with an accumulated unrealised loss of HK$2,273,400 during the period[185]. - The total accumulated unrealised loss across all investments held by the Group was HK$22,887,844 as of December 31, 2024[172]. Strategic Initiatives - The company has focused on selecting financially stable customers, primarily government-owned entities, to minimize default risk and ensure reliable revenue streams[147][150]. - The Group successfully commenced sales, design, and installation of SPV Systems to Southeast Asia customers, expanding its market presence and product range[161]. - The Group is committed to establishing long-term partnerships with financially stable clients, primarily state-owned enterprises, to reduce default risks[152]. - The Group's investment strategy includes short-term investments in Hong Kong listed securities, with a focus on improving market sentiment[169]. Challenges and Market Conditions - The data center business in China faced significant stagnation due to a shortage of crucial semiconductor chips and systems, exacerbated by geopolitical sanctions[151]. - The Group's Renewable Energy Business faced significant challenges from 2020 to early 2024, including delays in obtaining necessary approvals and increased costs due to frequent changes in requirements by the power company[155]. - The Hong Kong Government's reduction in Feed-in Tariff (FiT) rates has discouraged some customers from proceeding with orders, indicating a diminishing return phase for the Solar Photovoltaic (SPV) business[156]. - The construction of TdC Phase II has been reconsidered due to uncertainties from the Russia-Ukraine conflict and Western sanctions affecting capital flow[192]. Corporate Governance - The board of directors has resolved not to pay any interim dividend for the six months ended December 31, 2024, consistent with the previous year[69]. - The Group's accounting policies remain consistent with those used in the preparation of the annual financial statements for the year ended June 30, 2024[31]. - The financial statements are presented in Hong Kong dollars (HK$), with all values rounded to the nearest thousand[30].
冠军科技集团(00092) - 2025 - 中期财报