高维科技(02086) - 2025 - 中期业绩

Summary The Group's revenue decreased by 14% to HK$40.9 million for the six months ended June 30, 2025, resulting in a loss of HK$5.2 million, with no interim dividend recommended Performance Overview For the six months ended June 30, 2025, the Group's revenue decreased by 14% year-on-year to HK$40.9 million, turning from a profit to a loss of HK$5.2 million, with no interim dividend recommended by the Board Key Financial Indicators for H1 2025 | Indicator | H1 2025 (HK$ Million) | H1 2024 (HK$ Million) | Change | | :--- | :--- | :--- | :--- | | Revenue | 40.9 | 47.2 | -14% | | (Loss)/Profit for the Period | (5.2) | 2.1 | Turned from profit to loss | - The Board does not recommend an interim dividend for the six months ended June 30, 2025[4] Financial Statements This section presents the Group's consolidated financial performance and position, including statements of profit or loss, comprehensive income, and financial position Consolidated Statement of Profit or Loss For the six months ended June 30, 2025, Group revenue decreased by 14% year-on-year to HK$40,829 thousand, gross profit declined to HK$22,183 thousand, operating results turned from profit to a loss of HK$5,039 thousand, with a loss for the period of HK$5,198 thousand and basic loss per share of 1.627 HK cents Key Financial Data from Consolidated Statement of Profit or Loss | Indicator (HK$ Thousand) | H1 2025 | H1 2024 | Change | | :--- | :--- | :--- | :--- | | Revenue | 40,829 | 47,210 | -14% | | Cost of Sales | (18,646) | (22,649) | -17.67% | | Gross Profit | 22,183 | 24,561 | -9.68% | | Other Income | 499 | 434 | +14.98% | | Selling and Distribution Costs | (5,535) | (4,049) | +36.70% | | Research and Development Expenses | (6,169) | (6,763) | -8.78% | | Administrative Expenses | (16,017) | (11,899) | +34.61% | | Operating (Loss)/Profit | (5,039) | 2,284 | Turned from profit to loss | | Finance Costs | (159) | (179) | -11.20% | | (Loss)/Profit Before Tax | (5,198) | 2,105 | Turned from profit to loss | | (Loss)/Profit for the Period | (5,198) | 2,105 | Turned from profit to loss | | Basic (Loss)/Earnings Per Share | (1.627) HK cents | 0.659 HK cents | Turned from profit to loss | Consolidated Statement of Profit or Loss and Other Comprehensive Income For the six months ended June 30, 2025, the Group's total comprehensive expense for the period was HK$4,707 thousand, primarily due to a loss of HK$5,198 thousand, partially offset by exchange differences of HK$491 thousand Key Data from Consolidated Statement of Profit or Loss and Other Comprehensive Income | Indicator (HK$ Thousand) | H1 2025 | H1 2024 | | :--- | :--- | :--- | | (Loss)/Profit for the Period | (5,198) | 2,105 | | Exchange differences on translation of financial statements of overseas operations | 491 | (675) | | Total comprehensive (expense)/income for the period | (4,707) | 1,430 | Consolidated Statement of Financial Position As of June 30, 2025, the Group's net assets were HK$57,064 thousand, a decrease of approximately 7.6% from December 31, 2024, primarily due to a reduction in reserves from the loss for the period, with total current assets of HK$63,484 thousand and current liabilities of HK$20,509 thousand Key Data from Consolidated Statement of Financial Position | Indicator (HK$ Thousand) | June 30, 2025 | Dec 31, 2024 | Change | | :--- | :--- | :--- | :--- | | Non-current Assets | 15,376 | 17,007 | -9.59% | | Current Assets | 63,484 | 76,925 | -17.47% | | Current Liabilities | 20,509 | 29,066 | -29.44% | | Net Current Assets | 42,975 | 47,859 | -10.20% | | Net Assets | 57,064 | 61,771 | -7.62% | | Share Capital | 31,956 | 31,956 | 0% | | Reserves | 25,108 | 29,815 | -15.79% | Notes to Unaudited Interim Financial Statements This section provides detailed explanations and disclosures regarding the Group's interim financial statements, covering preparation basis, accounting policies, revenue, and key financial balances 1 Basis of Preparation This interim financial report is prepared in accordance with the HKEX Listing Rules and HKAS 34, unaudited but reviewed and authorized for issue by the Audit Committee, involving management judgments, estimates, and assumptions - This interim financial report is unaudited but has been reviewed by the Company's Audit Committee and authorized for issue on August 26, 2025[8] - The preparation of the report requires management to make judgments, estimates, and assumptions, and actual results may differ from these estimates[9] 2 Changes in Accounting Policies Revisions to HKFRS effective for the current accounting period had no significant impact on the Group's results or financial position, and no new standards or interpretations not yet effective have been applied - Certain amendments to Hong Kong Financial Reporting Standards issued by the HKICPA had no significant impact on the Group's results or financial position for the current or prior periods[11] 3 Revenue and Segment Reporting The Group's primary business involves the development, sale, and distribution of smart card products, software, and hardware, along with related services, with revenue primarily recognized at a point in time, and management considers the Group to have only one operating segment, where Europe remains the largest revenue source despite a year-on-year decline, while Asia Pacific revenue increased - The Group's principal activities are the development, sale, and distribution of smart card products, software, and hardware, and the provision of related services[12] - Management considers the Group to have only one operating segment, and therefore no operating segment information is presented[14] Revenue from Contracts with Customers by Timing of Recognition | Revenue Recognition Timing | H1 2025 (HK$ Thousand) | H1 2024 (HK$ Thousand) | | :--- | :--- | :--- | | At a point in time | 40,829 | 47,128 | | Over time | – | 82 | | Total | 40,829 | 47,210 | Revenue from External Customers by Geographical Location | External Customer Revenue (by customer location, HK$ Thousand) | H1 2025 | H1 2024 | Change | | :--- | :--- | :--- | :--- | | Europe | 20,239 | 26,911 | -24.79% | | Asia Pacific | 15,175 | 12,211 | +24.27% | | Americas | 3,701 | 7,083 | -47.89% | | Middle East and Africa | 1,714 | 1,005 | +70.55% | | Total | 40,829 | 47,210 | -13.52% | 4 Loss/Profit Before Tax For the six months ended June 30, 2025, the Group recorded a loss before tax of HK$5,198 thousand, with a slight decrease in finance costs, a significant increase in reversal of impairment loss on trade receivables, and government grant income Items Related to Loss/Profit Before Tax | Item (HK$ Thousand) | H1 2025 | H1 2024 | Change | | :--- | :--- | :--- | :--- | | Interest on lease liabilities | 159 | 179 | -11.2% | | Amortisation of intangible assets | 908 | 908 | 0% | | Depreciation (owned property, plant and equipment) | 489 | 516 | -5.3% | | Depreciation (right-of-use assets) | 1,995 | 2,177 | -8.4% | | Government grant income | 49 | – | New | | Reversal of impairment loss on trade receivables | (1,547) | (63) | Significantly increased | | Write-down of inventories | 9 | – | New | | Interest income | 89 | 363 | -75.48% | - The Group successfully applied for a HK$49,000 SME Marketing Fund from the Hong Kong Government, aimed at assisting SMEs in exploring markets outside Hong Kong[19][20] Income Tax No income tax provision was made for the six months ended June 30, 2025 and 2024, as the Group recorded tax losses in Hong Kong, the Philippines, and mainland China - Due to tax losses incurred by the Group, no provision for Hong Kong profits tax, Philippine income tax, and PRC enterprise income tax was made for the six months ended June 30, 2025 and 2024[24] 6 Loss/Earnings Per Share For the six months ended June 30, 2025, the Group reported a basic loss per share of 1.627 HK cents, compared to earnings per share of 0.659 HK cents in the prior period, with diluted loss per share being the same due to no potential dilutive ordinary shares Loss/Earnings Per Share Data | Indicator | H1 2025 | H1 2024 | | :--- | :--- | :--- | | Basic (Loss)/Earnings Per Share | (1.627) HK cents | 0.659 HK cents | | Diluted (Loss)/Earnings Per Share | (1.627) HK cents | 0.659 HK cents | - Basic loss/earnings per share is calculated based on the loss attributable to ordinary equity holders of the Company of HK$5,198,000 (2024: profit of HK$2,105,000) and the weighted average number of ordinary shares in issue of 319,565,000 shares[22] 7 Trade and Other Receivables As of June 30, 2025, total trade and other receivables were HK$25,648 thousand, largely consistent with year-end 2024, though the aging structure of trade receivables shifted with a significant decrease in amounts due within one month and an increase in amounts due between three to twelve months and over one year Total Trade and Other Receivables | Item (HK$ Thousand) | June 30, 2025 | Dec 31, 2024 | Change | | :--- | :--- | :--- | :--- | | Trade receivables, net of loss allowance | 13,715 | 15,133 | -9.37% | | Other receivables | 11,933 | 10,463 | +14.05% | | Total | 25,648 | 25,596 | +0.20% | Aging Analysis of Trade Receivables | Aging of Trade Receivables (HK$ Thousand) | June 30, 2025 | Dec 31, 2024 | Change | | :--- | :--- | :--- | :--- | | Within 1 month | 4,898 | 13,662 | -64.18% | | 1 to 2 months | 3,906 | 1,119 | +249.0% | | 2 to 3 months | 1,432 | 47 | +2946.8% | | 3 to 12 months | 3,427 | 305 | +1023.6% | | Over 1 year | 52 | – | New | Trade and Other Payables As of June 30, 2025, total trade and other payables were HK$16,750 thousand, a significant decrease of 33.17% from year-end 2024, primarily due to substantial reductions in trade payables and customer advances, with a shift in the aging structure of trade payables showing a decrease in amounts due within one month Total Trade and Other Payables | Item (HK$ Thousand) | June 30, 2025 | Dec 31, 2024 | Change | | :--- | :--- | :--- | :--- | | Trade payables | 10,648 | 15,043 | -29.22% | | Accrued expenses | 3,755 | 3,223 | +16.51% | | Customer advances received | 2,347 | 6,797 | -65.47% | | Total | 16,750 | 25,063 | -33.17% | Aging Analysis of Trade Payables | Aging of Trade Payables (HK$ Thousand) | June 30, 2025 | Dec 31, 2024 | Change | | :--- | :--- | :--- | :--- | | Within 1 month | 6,781 | 13,390 | -49.36% | | 1 to 3 months | 2,272 | 1,537 | +47.82% | | 3 months to 1 year | 1,595 | 116 | +1275% | Management Discussion and Analysis This section provides an overview of the Group's financial performance, business operations, and future outlook, highlighting key drivers and strategic responses to market conditions Financial Review During the interim period, the Group's revenue declined by 14% due to external challenges and a lack of new government tenders, while gross margin improved, operating expenses increased by 22% due to staff additions and market expansion, and net assets decreased due to the loss for the period, leading to a shift from profit to loss, with no interim dividend recommended - Revenue decline was primarily impacted by US retaliatory tariffs, US-China trade conflicts, and a lack of new government tenders in the first half, with new products requiring more time to penetrate the market[27] - Total operating expenses increased by 22% to HK$27.7 million, mainly due to higher staff costs from increased headcount and other operating expenses from new market development and product portfolio diversification during the interim period[29] - The Board does not recommend an interim dividend for the interim period[31] Revenue The Group's revenue decreased by 14% to HK$40.9 million, primarily due to external trade conflicts and a lack of new government tenders Revenue Overview | Indicator | H1 2025 (HK$ Million) | H1 2024 (HK$ Million) | Change | | :--- | :--- | :--- | :--- | | Revenue | 40.9 | 47.2 | -14% | - The revenue decline was primarily attributed to US retaliatory tariffs, US-China trade conflicts, and a lack of new government tenders in the first half, with new products requiring more time for market penetration[27] Gross Margin Despite a challenging sales environment, the gross margin improved by 2% to 54%, reflecting enhanced efficiency and cost control Gross Margin and Gross Profit Changes | Indicator | H1 2025 | H1 2024 | Change | | :--- | :--- | :--- | :--- | | Gross Margin | 54% | 52% | +2% | | Gross Profit (HK$ Million) | 22.2 | 24.6 | -9.76% | - The improvement in gross margin reflects the Company's ability to enhance efficiency and strengthen production cost control amidst a challenging sales environment[28] Operating Expenses Total operating expenses increased by 22% to HK$27.7 million, driven by higher staff costs and market expansion efforts Total Operating Expenses | Indicator | H1 2025 (HK$ Million) | H1 2024 (HK$ Million) | Change | | :--- | :--- | :--- | :--- | | Total Operating Expenses | 27.7 | 22.7 | +22% | - The increase in operating expenses was primarily attributed to higher staff costs (increased headcount) and other operating expenses incurred from expanding into new markets and product diversification[29] Statement of Financial Position Net assets decreased by HK$4.7 million to HK$57.1 million, mainly due to the interim period's net loss, partially offset by exchange reserve movements Changes in Net Assets | Indicator | June 30, 2025 (HK$ Million) | Dec 31, 2024 (HK$ Million) | Change | | :--- | :--- | :--- | :--- | | Net Assets | 57.1 | 61.8 | -4.7 | - The decrease in net assets was primarily due to a net loss of HK$5.2 million during the interim period, partially offset by a HK$0.5 million change in exchange reserves[30] Dividend The Board does not recommend the payment of an interim dividend for the period - The Board does not recommend an interim dividend[31] Business Review The Group launched several new products and actively participated in international exhibitions to enhance brand awareness, while addressing intense market competition and global challenges by expanding product offerings, strengthening core products, and exploring new markets like the Americas and Southeast Asia, alongside reviewing pricing strategies and cost reduction measures - Several new products were launched in the first half, including the ACR1555U Secure Bluetooth NFC Reader, AquaGuard IP67 USB NFC Reader, second-generation WalletMate Mobile Wallet NFC Reader, and PocketKey+ FIDO Certified NFC USB Security Key[32] - Active participation in major exhibitions such as IOTE 2025, Japan IT Week Spring 2025, Smart IoT Indonesia 2025, and Identiverse 2025 received positive customer feedback[33] - Facing global challenges (post-pandemic environment, Russia-Ukraine conflict, US-China trade tensions), the Group is shifting its focus to the Americas and Southeast Asian markets, reviewing pricing strategies, and exploring cost reduction measures[34] Prospects The Group maintains a positive outlook for future growth, anticipating new products to stimulate demand, with marketing focused on industry exhibitions to boost brand awareness, continued resource allocation for the developing Japan office, and ongoing emphasis on cost control and efficiency, with stable management structure expected - Newly launched and upcoming products are expected to stimulate customer demand and generate new sales revenue[35] - Marketing and advertising strategies will primarily involve active participation in industry exhibitions across various regions to enhance brand awareness, strengthen industry position, and establish connections with potential customers[35] - Business operations in Japan are still in the development stage, and the Group plans to allocate additional resources to support the growth of its office and market in the region[36] - The Group will continue to focus on cost control and efficiency improvements to support long-term profitability, with no significant changes expected in management[36] Liquidity, Financial Resources and Capital Structure This section provides an overview of the Group's cash position, cash flow activities, and capital structure, highlighting changes in liquidity and financial resources Overview of Liquidity, Financial Resources and Capital Structure As of June 30, 2025, the Group's cash and cash equivalents decreased to HK$13.2 million from year-end 2024, with net cash outflows from operating, investing, and financing activities of HK$8.7 million, HK$1.7 million, and HK$2.2 million respectively, and a gearing ratio of 0% Cash and Net Assets | Indicator (HK$ Million) | June 30, 2025 | Dec 31, 2024 | Change | | :--- | :--- | :--- | :--- | | Cash and Cash Equivalents | 13.2 | 25.7 | -48.64% | | Net Assets | 57.1 | 61.8 | -7.61% | Cash Flow Activities | Cash Flow Activity (HK$ Million) | H1 2025 | H1 2024 | | :--- | :--- | :--- | | Net cash outflow from operating activities | (8.7) | 6.1 (inflow) | | Net cash outflow from investing activities | (1.7) | (0.9) | | Net cash outflow from financing activities | (2.2) | (2.4) | - The Group's gearing ratio was 0% as of June 30, 2025, consistent with December 31, 2024[39] Other Financial Information This section covers additional financial disclosures, including information on disposals, future investment plans, foreign exchange risk, asset pledges, and contingent liabilities Disposals and Acquisitions During the interim period, the Group did not undertake any significant disposals or investments in subsidiaries and associates - During the interim period, the Group did not have any significant disposals of or investments in subsidiaries and associates[40] Future Plans for Material Investments or Capital Assets As of June 30, 2025, the Group had no capital commitments for property, plant, and equipment acquisitions, nor any Board-authorized plans for other significant investments or capital asset increases - As of June 30, 2025, the Group had no capital commitments for the acquisition of property, plant, and equipment, nor any plans authorized by the Board for other material investments or additions to capital assets[41] Foreign Exchange Fluctuation Risk The Group's assets, liabilities, and transactions are primarily denominated in HKD, USD, and RMB, with USD exchange risk not posing a significant financial impact due to the HKD peg, and foreign exchange risk managed through regular net exposure reviews - The Group's assets, liabilities, and transactions are primarily denominated in Hong Kong Dollars, US Dollars, and Renminbi, with US Dollar exchange risk not posing a significant financial impact[42] - The Group manages its foreign exchange risk by regularly reviewing its net foreign exchange exposure[42] Pledge of Assets As of June 30, 2025, the Group had not pledged any significant assets - As of June 30, 2025, the Group had not pledged any significant assets[43] Contingent Liabilities As of June 30, 2025, the Company had no significant contingent liabilities - As of June 30, 2025, the Company had no significant contingent liabilities[44] Employees and Remuneration Policy This section outlines the Group's workforce details and its approach to employee compensation and development Overview of Employees and Remuneration Policy As of June 30, 2025, the Group employed 97 full-time staff with interim period staff costs of HK$16.9 million, committed to remuneration policies aligned with qualifications, performance, experience, and industry standards, and investing in team training for product and market understanding Employee and Remuneration Data | Indicator | June 30, 2025 | | :--- | :--- | | Number of full-time employees | 97 | | Staff costs for the interim period | 16.9 HK$ Million | - The Group is committed to ensuring remuneration policies and benefits align with employee qualifications, performance, experience, and industry standards, and provides training to enhance the team's understanding of products and market dynamics[45] Continuing Connected Transactions This section details the Group's ongoing transactions with related parties, including a cooperation agreement for smart technology projects Overview of Continuing Connected Transactions Longjie Guangdong, an indirect wholly-owned subsidiary, entered a three-year cooperation agreement with associate Zhongzhao for smart technology projects, with Zhongzhao providing free office space and support, and Longjie Guangdong paying a 10% service fee on revenue, totaling RMB62,000 as of June 30, 2025 - Longjie Smart Technology (Guangdong) Co., Ltd. (an indirect wholly-owned subsidiary of the Company) entered into a cooperation agreement with Guangdong Zhongzhao Industrial Group Co., Ltd. (an associate) to jointly develop smart technology projects for a period of three years (September 1, 2024 to August 31, 2027)[46] - Zhongzhao will provide office space and premises free of charge, along with production operations and business development support, while Longjie Guangdong is required to pay a service fee of 10% of revenue to Zhongzhao and has already paid an advance of RMB3,000,000[46] Financial Data for Continuing Connected Transactions | Item | Amount | | :--- | :--- | | Longjie Guangdong operating revenue (as of June 30, 2025) | RMB620,000 | | Service fees paid to Zhongzhao (as of June 30, 2025) | RMB62,000 | - The annual caps for the cooperation agreement service fees are RMB5,000,000 (2025), RMB7,000,000 (2026), and RMB9,000,000 (2027), with a total not exceeding HK$10,000,000 within any 12-month period[47] Dealings in Listed Securities of the Company This section confirms that there were no purchases, sales, or redemptions of the Company's listed shares by the Company or its subsidiaries during the interim period Overview of Dealings in Listed Securities During the interim period, neither the Company nor its subsidiaries purchased, sold, or redeemed any of the Company's listed shares - During the interim period, neither the Company nor its subsidiaries purchased, sold, or redeemed any of the Company's listed shares[48] Corporate Governance This section details the Company's adherence to corporate governance principles and policies, including compliance with the Corporate Governance Code and directors' securities dealing rules Compliance with Corporate Governance Code The Company complied with the Corporate Governance Code during the interim period, except for the combined roles of Chairman and Chief Executive Officer held by Mr. Cheung Hok Kwan, which the Board believes facilitates strategy execution, with independent non-executive directors ensuring power balance and independent decision-making - The Company complied with the Corporate Governance Code during the interim period, except for the combined roles of Chairman and Chief Executive Officer held by Mr. Cheung Hok Kwan, which deviates from Code Provision C.2.1[49] - The Board believes this combined role facilitates the continuous planning and execution of the Company's strategies, and with at least one-third of the Board members being independent non-executive directors, power balance, accountability, and independent decision-making are ensured[49] Directors' Securities Transactions The Company adopted dealing rules for directors' securities transactions no less exacting than the Model Code, and all directors confirmed compliance with the Model Code during the interim period - The Company has adopted dealing rules for directors' securities transactions, the terms of which are no less exacting than the required standard set out in the Model Code[50] - All Directors have confirmed that they have complied with the required standard set out in the Model Code regarding directors' securities transactions throughout the interim period[50] Audit Committee This section describes the Audit Committee's responsibilities and its review of the Group's interim financial results Overview of Audit Committee The Audit Committee advises on external auditor appointments, remuneration, and terms, and reviews the Company's financial controls, internal controls, and risk management systems, having reviewed the Group's unaudited consolidated results for the six months ended June 30, 2025 - The Audit Committee is primarily responsible for making recommendations on the appointment, remuneration, and terms of engagement of external auditors, and reviewing the Company's financial controls, internal controls, and risk management systems[51] - The Audit Committee has reviewed the Group's unaudited consolidated results for the six months ended June 30, 2025, and discussed relevant financial matters with management[51] - The Audit Committee comprises four members: Dr. Lin Tat Pang (Chairman), Mr. Lai Chi Leung, Mr. Cheung Ting Fong, and Mr. Koo Tin Lung[51] Board Information This section provides details on the composition of the Company's Board of Directors Board Composition As of the announcement date, the Board comprises ten members, including four executive directors, two non-executive directors, and four independent non-executive directors - The Board comprises four executive directors (Mr. Cheung Hok Kwan, Ms. Mak Yee Ki, Mr. Chan Chun Leung, and Ms. Hui Ting Ting), two non-executive directors (Mr. Mak Tsz Yip and Mr. Lam Chi Wai), and four independent non-executive directors (Dr. Lin Tat Pang, Mr. Lai Chi Leung, Mr. Cheung Ting Fong, and Mr. Koo Tin Lung)[53]