律齐文化(00550) - 2025 - 中期业绩

Financial Highlights Financial Highlights For the six months ended June 30, 2024, the company's revenue, gross profit, and loss all decreased year-over-year, with the loss attributable to equity shareholders narrowing by 22.6% Financial Highlights for H1 2024 | Indicator | H1 2024 | H1 2023 | YoY Change | | :--- | :--- | :--- | :--- | | Revenue | Approx. HK$13.8 million | Approx. HK$20.2 million | -31.6% | | Gross Profit | Approx. HK$10.9 million | Approx. HK$14.2 million | -23.3% | | Loss for the period | Approx. HK$7.47 million | Approx. HK$9.97 million | -25.0% | | Loss attributable to equity shareholders | Approx. HK$7.47 million | Approx. HK$9.66 million | -22.6% | - The Board of Directors resolved not to declare any interim dividend for the six months ended June 30, 2024[3] Consolidated Financial Statements Condensed Consolidated Statement of Profit or Loss and Other Comprehensive Income The company recorded revenue of HK$13.8 million in H1 2024, a 31.6% year-over-year decrease, while the loss for the period narrowed by 25.0% to HK$7.47 million Key Items from the Statement of Profit or Loss (For the six months ended June 30) | Item (HK$'000) | 2024 (Unaudited) | 2023 (Unaudited) | | :--- | :--- | :--- | | Revenue | 13,829 | 20,223 | | Gross Profit | 10,881 | 14,195 | | Loss before income tax | (7,471) | (9,966) | | Loss for the period | (7,471) | (9,966) | | Loss attributable to equity shareholders of the Company | (7,471) | (9,662) | | Basic and diluted loss per share | (1.64 HK cents) | (2.13 HK cents) | Condensed Consolidated Statement of Financial Position As of June 30, 2024, the company's total assets decreased significantly to HK$73.9 million, while net assets fell to HK$61.4 million primarily due to changes in reserves Key Items from the Statement of Financial Position | Item (HK$'000) | As at June 30, 2024 (Unaudited) | As at December 31, 2023 (Audited) | | :--- | :--- | :--- | | Non-current assets | 37,466 | 84,927 | | Current assets | 36,420 | 39,371 | | Total assets | 73,886 | 124,298 | | Current liabilities | 10,473 | 8,694 | | Non-current liabilities | 1,967 | 1,299 | | Total liabilities | 12,440 | 9,993 | | Net assets | 61,446 | 114,305 | | Total equity | 61,446 | 114,305 | Notes to the Condensed Consolidated Financial Statements Corporate Information and Principal Activities Luzqi Culture Limited is a Bermuda-incorporated investment holding company listed on the Hong Kong Stock Exchange, primarily engaged in advertising, healthcare products, e-commerce, and IP development - The Group is principally engaged in four business segments: (i) provision of advertising services; (ii) sale of medical and healthcare products; (iii) e-commerce; and (iv) provision of intellectual property (IP) development and design services[9] Segment Information In H1 2024, all group revenue of HK$13.8 million was generated from the advertising services segment, with other segments reporting no revenue Segment Revenue (For the six months ended June 30) | Segment (HK$'000) | 2024 | 2023 | | :--- | :--- | :--- | | Provision of advertising services | 13,829 | 16,950 | | Sale of medical and healthcare products | – | 373 | | E-commerce | – | 2,900 | | Provision of IP development and design services | – | – | | Total | 13,829 | 20,223 | - All of the Group's revenue was derived from Hong Kong, with no significant revenue contribution from any single major customer[22][24] Loss Per Share For the six months ended June 30, 2024, basic and diluted loss per share narrowed to 1.64 HK cents from 2.13 HK cents in the prior year period Calculation of Loss Per Share | Indicator | H1 2024 | H1 2023 | | :--- | :--- | :--- | | Loss attributable to equity shareholders (HK$) | 7,471,000 | 9,662,000 | | Weighted average number of ordinary shares (shares) | 455,534,000 | 454,047,000 | | Basic and diluted loss per share | 1.64 HK cents | 2.13 HK cents | Management Discussion and Analysis Financial Review In H1 2024, the Group's revenue decreased by 31.6% year-over-year to HK$13.8 million, while gross profit margin improved and loss before tax narrowed by 25.0% - The decrease in revenue was mainly due to a decline in advertising business income and the cessation of revenue from other segments like e-commerce[31] - Gross profit margin increased from 70.2% in the prior year period to 78.7%[36] - Administrative expenses decreased by 14.8% year-over-year, primarily due to lower staff costs[39] Business Review During the period, the Group refocused on its core advertising business, which saw an 18.4% revenue decline, while other segments were suspended and generated no income - Revenue from the core advertising business was approximately HK$13.8 million, a year-over-year decrease of 18.4%, mainly due to macroeconomic instability and cautious corporate advertising budgets[42] - The medical and healthcare products, e-commerce, and IP development segments recorded zero revenue during the period due to issues including loss of control over subsidiaries and strategic reviews[33][34][35] - The Group has begun expanding into Mainland China, with its subsidiary entering a business promotion agreement with Shenzhen Kingkey to provide advertising services for real estate projects[44] Prospects The Group will focus on strengthening its core advertising business in Hong Kong while pursuing strategic expansion in Mainland China, including setting up a factory for its promotion business - The Group will consolidate its core competitiveness while seeking strategic expansion opportunities in both Hong Kong and Mainland China[51] - The Group is actively exploring advertising opportunities in Mainland China, particularly on digital platforms like Douyin[52] - The Group plans to expand its promotion services and event management business to Mainland China and is establishing its own factory, expected to commence operations in July 2025[54] Liquidity and Financial Resources As of June 30, 2024, the Group maintained a sound financial position with no bank loans, net current assets of approximately HK$25.9 million, and a current ratio of 3.5 Liquidity Indicators | Indicator (HK$) | As at June 30, 2024 | As at December 31, 2023 | | :--- | :--- | :--- | | Net Current Assets | Approx. 25,900,000 | Approx. 30,700,000 | | Cash and Bank Balances | Approx. 31,800,000 | Approx. 30,000,000 | | Current Ratio | Approx. 3.5 | Approx. 4.5 | | Net Assets | Approx. 61,400,000 | Approx. 114,300,000 | - At the end of the reporting period, the Group had no bank loans or other borrowings[56] Other Disclosures Events After the Reporting Period Subsequent to the reporting period, the Group completed several disposals, including its interests in Beyond Noble Holdings Limited, Smart Path Enterprises Limited, and an associate company - Disposed of the entire issued share capital of Beyond Noble (holding 51% of Kingkey Tianzi) and Smart Path (holding Haotuo)[61] - Disposed of the entire investment interest in the associate company, Aoluorui, for a consideration of HK$9.95 million[62] Litigation The company is involved in several legal proceedings, including actions against a former director for breach of fiduciary duties and a defamation lawsuit filed by a former director - The Company has initiated legal action against a former director for breach of fiduciary duties, seeking damages[64] - A former director has filed a defamation lawsuit against the Company, alleging defamatory statements in its announcements[66] Other Significant Events Trading in the company's shares has been suspended since April 2, 2024, and the company is working to fulfill the Stock Exchange's resumption guidance - Trading in the Company's shares on the Stock Exchange has been suspended since April 2, 2024, and will remain suspended[69] - The Stock Exchange has issued resumption guidance, requiring the Company to conduct an independent forensic investigation, demonstrate management integrity, review internal controls, and publish all outstanding financial results[71] - The Company has changed its auditor and appointed independent firms to conduct a forensic investigation and internal control review to meet resumption requirements[70][74][75] Corporate Governance and Other Information Corporate Governance and Dividends The company complied with all applicable Corporate Governance Code provisions during the interim period, and the Board has resolved not to recommend an interim dividend - The Company has complied with all applicable code provisions of the Corporate Governance Code as set out in Appendix C1 to the Listing Rules throughout the interim period[77] - The Board of Directors has resolved not to recommend the payment of any dividend for the interim period[81]