新龙移动(01362) - 2025 - 中期业绩

Company Announcements and Financial Summary Interim Results Announcement The company announced its unaudited condensed consolidated results for the six months ended June 30, 2025, reviewed by the audit committee - The company announced its unaudited condensed consolidated results for the six months ended June 30, 2025[3] - The interim financial statements have been reviewed by the company's audit committee[3] Condensed Consolidated Statement of Profit or Loss and Other Comprehensive Income Revenue increased by 20.6%, but gross profit fell 35.8%, leading to a net loss of HK$3,297 thousand, with a basic and diluted loss per share of 1.18 HK cents Key Data from Condensed Consolidated Statement of Profit or Loss and Other Comprehensive Income | Metric | June 30, 2025 (HK$ '000) | June 30, 2024 (HK$ '000) | Y-o-Y Change (%) | | :--- | :--- | :--- | :--- | | Revenue | 567,357 | 470,383 | +20.6% | | Cost of sales | (550,797) | (444,574) | +23.9% | | Gross profit | 16,560 | 25,809 | -35.8% | | (Loss) Profit before tax | (3,199) | 5,449 | -158.7% | | (Loss) Profit for the period | (3,297) | 4,140 | -179.6% | | (Loss) Earnings per share (HK cents) | (1.18) | 1.47 | -180.3% | - Total comprehensive income attributable to owners of the company for the period was HK$127 thousand, a significant decrease from HK$5,206 thousand in the prior year[4] Condensed Consolidated Statement of Financial Position Total assets slightly increased, but net current assets and total assets less current liabilities decreased, with a significant rise in current liabilities Key Data from Condensed Consolidated Statement of Financial Position | Metric | June 30, 2025 (HK$ '000) | December 31, 2024 (HK$ '000) | Change (HK$ '000) | | :--- | :--- | :--- | :--- | | Non-current assets | 23,250 | 25,400 | (2,150) | | Current assets | 194,805 | 179,255 | 15,550 | | Current liabilities | 48,133 | 27,616 | 20,517 | | Net current assets | 146,672 | 151,639 | (4,967) | | Net assets | 166,907 | 170,980 | (4,073) | | Bank balances and cash | 82,543 | 81,042 | 1,501 | - Trade payables, other payables, and accruals increased from HK$23,127 thousand as of December 31, 2024, to HK$40,815 thousand as of June 30, 2025[5] - Dividends payable increased from nil to HK$4,200 thousand[5] Notes to the Financial Statements Basis of Preparation and Accounting Policies The condensed consolidated financial statements are prepared under HKAS 34, with consistent accounting policies and no material impact from new HKFRS amendments - The condensed consolidated financial statements are prepared in accordance with Hong Kong Accounting Standard 34 'Interim Financial Reporting' and Appendix 16 of the Listing Rules[6] - These condensed consolidated financial statements are prepared on a historical cost basis, except for certain financial instruments measured at fair value[7] - The application of HKFRS amendments during the period had no material impact on the group's financial position, performance, or disclosures[8] Segment Reporting and Revenue The group primarily sells mobile phones in Hong Kong; no segment information is presented due to focus on brand-based revenue analysis, with revenue mainly from distribution and retail sales - The group is principally engaged in the sale and distribution of mobile phones and related products in Hong Kong[9] - No segment information is presented beyond entity-wide disclosures, as no separate financial information other than the group's consolidated revenue and profit is provided[9] - Revenue represents the net amounts received and receivable from the sale of goods arising from the distribution and retail sales of mobile phones and related products[10] (Loss) Profit Before Tax and Income Tax Expense The company recorded a pre-tax loss of HK$3,199 thousand, with increased inventory costs and significantly reduced income tax expense, reflecting lower profitability Components of (Loss) Profit Before Tax | Item | June 30, 2025 (HK$ '000) | June 30, 2024 (HK$ '000) | | :--- | :--- | :--- | | Cost of inventories recognized as an expense | 550,797 | 444,574 | | Reversal of impairment loss under expected credit loss model | (218) | (46) | | Depreciation of property, plant and equipment | 68 | 397 | | Depreciation of right-of-use assets | 1,677 | 1,149 | | Dividend income | (400) | (325) | | Exchange (gain) loss, net | (11) | 391 | | Interest income from bank deposits | (630) | (1,274) | | Interest expense on lease liabilities | 214 | 179 | Income Tax Expense | Item | June 30, 2025 (HK$ '000) | June 30, 2024 (HK$ '000) | | :--- | :--- | :--- | | Hong Kong profits tax—current period | 98 | 1,309 | - Hong Kong profits tax is calculated at a two-tiered rate: 8.25% on the first HK$2,000,000 of assessable profits and 16.5% on the remaining portion[12] (Loss) Earnings Per Share Basic and diluted loss per share was 1.18 HK cents, based on a group loss of HK$3,297 thousand and 280,000 thousand ordinary shares, with no dilutive shares (Loss) Earnings Per Share | Metric | June 30, 2025 (HK cents) | June 30, 2024 (HK cents) | | :--- | :--- | :--- | | Basic and diluted (loss) earnings per share | (1.18) | 1.47 | - The number of ordinary shares used for calculating basic and diluted (loss) earnings per share was 280,000 thousand[14] - Diluted (loss) earnings per share for the six months ended June 30, 2025, and 2024, was the same as basic (loss) earnings per share due to the absence of potential dilutive shares during the interim period[14] Dividend Policy The company recognized a final dividend of 1.5 HK cents per share for 2024, totaling HK$4,200 thousand, but the board did not recommend an interim dividend - Dividends recognized for the six months ended June 30, 2025, included a final dividend of 1.5 HK cents per share for the year ended December 31, 2024, totaling HK$4,200 thousand[15] - The directors did not recommend an interim dividend for the six months ended June 30, 2025 (2024: nil)[15] Analysis of Trade and Other Receivables and Payables Trade receivables decreased to HK$21,464 thousand, while trade payables significantly increased to HK$27,740 thousand, with a 30-day credit period Aging Analysis of Trade Receivables | Aging | June 30, 2025 (HK$ '000) | December 31, 2024 (HK$ '000) | | :--- | :--- | :--- | | Within 30 days | 15,181 | 19,254 | | 31 to 60 days | 4,036 | 3,596 | | 61 to 90 days | 1,345 | 2,568 | | 91 to 120 days | 543 | - | | Over 120 days | 359 | - | | Total trade receivables | 21,464 | 25,418 | Aging Analysis of Trade Payables | Aging | June 30, 2025 (HK$ '000) | December 31, 2024 (HK$ '000) | | :--- | :--- | :--- | | Within 30 days | 21,726 | 5,806 | | 31 to 90 days | 54 | 7 | | 91 to 120 days | 1 | 2 | | Over 120 days | 5,959 | 5,970 | | Total trade payables | 27,740 | 11,785 | - The group offers an average credit period of 30 days to its trade customers and does not charge interest on overdue balances[17] Share Capital Structure As of June 30, 2025, authorized share capital was HK$50,000 thousand, with issued and fully paid share capital of HK$28,000 thousand, unchanged from prior year Share Capital Structure | Item | Number of Ordinary Shares (shares) | Par Value (HK$ '000) | | :--- | :--- | :--- | | Authorized share capital | 500,000,000 | 50,000 | | Issued and fully paid share capital | 280,000,000 | 28,000 | - As of June 30, 2025, the issued and fully paid share capital remained consistent with January 1, 2024, June 30, 2024, and December 31, 2024[20] Business Review and Outlook Business Review Turnover increased by 21%, but gross profit fell 36% to a net loss of HK$3,297 thousand due to market challenges, prompting cost review and new revenue exploration - Turnover increased by 21% compared to the prior year, reflecting the company's ability to drive sales and maintain market share[22] - Significant pressure on gross profit margin led to a 36% decrease in gross profit[22] - A net loss of HK$3,297 thousand was recorded for the period, compared to a net profit of HK$4,140 thousand in the prior year[22] - The company is actively reviewing its cost structure, optimizing inventory management, and exploring new revenue streams to alleviate operational pressure[22] Outlook Hong Kong's consumer outlook remains sluggish due to intense competition and changing consumer behavior, prompting the company to reassess costs and explore new business models - Hong Kong's consumer outlook remains sluggish, affected by several interconnected challenges[23] - Competition from mainland Chinese brands is intensifying, offering aggressive pricing and rapid innovation, further squeezing profit margins and market share[24] - Shifting consumer behavior, favoring value-oriented purchases and longer replacement cycles, has impacted overall demand[24] - The company is actively reassessing its cost structure, enhancing operational flexibility, and exploring new product categories or business models[23] Financial Analysis and Risk Management Liquidity and Financial Resources Total assets were HK$218,055 thousand, with a current ratio of 4.0 (down from 6.5), and HK$82,543 thousand in cash, maintaining good liquidity with no bank borrowings - As of June 30, 2025, the group's total assets of HK$218,055 thousand comprised total equity of HK$166,907 thousand and total liabilities of HK$51,148 thousand[25] - The group's current ratio was approximately 4.0, compared to approximately 6.5 as of December 31, 2024[25] - As of June 30, 2025, the group held bank balances and cash of HK$82,543 thousand (December 31, 2024: HK$81,042 thousand)[25] - There were no bank borrowings as of June 30, 2025 (December 31, 2024: nil)[25] Pledged Assets and Material Investments The group had no pledged assets; listed securities held as long-term investments appreciated by 24%, with a fair value gain of HK$3,424 thousand and dividend income of HK$400 thousand - There were no pledged assets as of June 30, 2025 (December 31, 2024: nil)[26] - Listed securities held by the group for long-term investment purposes appreciated by 24% for the six months ended June 30, 2025[28] - A fair value gain of HK$3,424 thousand was recognized in other comprehensive income, and dividend income of HK$400 thousand was received[28] Employee Information and Remuneration Policy The group had 54 employees, with salaries and benefits totaling HK$10,262 thousand, and no significant changes to the remuneration policy, which includes MPF, medical insurance, and performance bonuses - The group had 54 employees as of June 30, 2025 (June 30, 2024: 51 employees)[27] - Salaries and other benefits paid and payable to employees (excluding directors' emoluments) amounted to HK$10,262 thousand (June 30, 2024: HK$10,886 thousand)[27] - In addition to MPF contributions and medical insurance, employees receive discretionary bonuses based on performance assessments, with no significant changes to the employee remuneration policy from the prior year[27] Currency Risk Management and Contingent Liabilities Some purchases, receivables, and bank balances are in USD, but due to the HKD-USD peg, no significant currency risk is expected; no hedging policy exists, and no derivative financial instruments or contingent liabilities were present - Certain of the group's purchases of goods, other receivables, and bank balances are denominated in US dollars[29] - As the Hong Kong dollar is pegged to the US dollar, the group's management does not expect any significant currency risk between the US dollar and the Hong Kong dollar[29] - The group currently has no currency hedging policy; however, management monitors currency fluctuation risks and will hedge significant currency risks when necessary[29] - As of June 30, 2025, the group had no contingent liabilities or guarantees (December 31, 2024: nil)[30] Corporate Governance and Other Information Corporate Governance Code The company adopted and complied with the Corporate Governance Code in Appendix C1 of the Listing Rules for the period ended June 30, 2025 - The company has adopted the Corporate Governance Code as set out in Appendix C1 of the Listing Rules of the Stock Exchange[31] - For the period ended June 30, 2025, the company has complied with the code provisions under the Code[31] Standard Securities Dealing Code for Directors The company adopted the Standard Securities Dealing Code for Directors in Appendix C3 of the Listing Rules, and all directors confirmed compliance - The company has adopted the Standard Securities Dealing Code for Directors of Listed Issuers as set out in Appendix C3 of the Listing Rules as the code of conduct for directors' dealings in the company's securities[32] - Following specific enquiry with all directors, they have confirmed compliance with the Standard Code[32] Audit Committee The Audit Committee, composed of all independent non-executive directors, reviewed the company's condensed consolidated financial statements and accounting policies - The Audit Committee comprises all independent non-executive directors[33] - The Audit Committee has reviewed the company's condensed consolidated financial statements for the six months ended June 30, 2025, including the accounting policies and practices adopted by the company[33] Dealings in Listed Securities Neither the company nor its subsidiaries purchased, sold, or redeemed any of the company's listed securities for the period ended June 30, 2025 - Neither the company nor any of its subsidiaries purchased, sold, or redeemed any of the company's listed securities for the period ended June 30, 2025[34] Publication of Results Announcement This results announcement is published on the company and Stock Exchange websites; the 2025 interim report will be dispatched to shareholders and published by September 30, 2025 - This results announcement is published on the company's website www.sismobile.com.hk and the Stock Exchange's website www.hkexnews.hk[35](index=35&type=chunk) - The company's 2025 interim report will be dispatched to shareholders and published on the aforementioned websites on or before September 30, 2025[35] Acknowledgement Chairman Lam Ka Ming thanked employees, customers, partners, and shareholders, pledging continued value creation and strategic adaptation to market changes - Chairman Lam Ka Ming expressed sincere gratitude for the unwavering dedication of employees, the continued trust of customers and business partners, and the steadfast support of shareholders[36] - The company will continue to strive for shareholder value creation and adapt its strategies to meet the evolving market environment[36]