Interim Results Announcement Condensed Consolidated Statement of Profit or Loss and Other Comprehensive Income The Group achieved a profit of HK$6,229 thousand from continuing operations, a significant improvement from a loss of HK$250,400 thousand in the prior period, despite a revenue decrease due to reduced big data services activity Condensed Consolidated Statement of Profit or Loss and Other Comprehensive Income (Continuing Operations) | Indicator | 2025 (HK$ thousand) | 2024 (HK$ thousand) | | :--- | :--- | :--- | | Revenue | 20,258 | 89,721 | | Gross Profit | 10,052 | 57,567 | | Profit/(Loss) Before Tax | 6,207 | (256,708) | | Profit/(Loss) for the Period from Continuing Operations | 6,229 | (250,400) | | Profit/(Loss) for the Period from Discontinued Operations | 4,897 | (109,570) | | Profit/(Loss) for the Period | 11,126 | (359,970) | | Profit/(Loss) for the Period Attributable to Owners of the Company | 27,362 | (226,005) | | Basic and Diluted Earnings/(Loss) Per Share (HK cents) | 2.57 | (21.21) | - Continuing operations turned from a loss of HK$250,400 thousand in the prior period to a profit of HK$6,229 thousand, indicating a significant improvement in operating performance4 Condensed Consolidated Statement of Financial Position As of June 30, 2025, total non-current assets significantly decreased to HK$23,989 thousand, while net current liabilities improved to HK$35,926 thousand, and the deficiency attributable to owners of the company narrowed to HK$45,273 thousand Condensed Consolidated Statement of Financial Position (Period End) | Indicator | June 30, 2025 (HK$ thousand) | December 31, 2024 (HK$ thousand) | | :--- | :--- | :--- | | Non-current Assets | 23,989 | 112,827 | | Current Assets | 188,363 | 436,383 | | Current Liabilities | 224,289 | 578,320 | | Net Current Liabilities | (35,926) | (141,937) | | Net Liabilities | (15,345) | (36,229) | | Deficiency Attributable to Owners of the Company | (45,273) | (54,339) | | Total Deficiency | (15,345) | (36,229) | - Net current liabilities significantly improved from HK$141,937 thousand as of December 31, 2024, to HK$35,926 thousand as of June 30, 20256 - Non-current assets significantly decreased, primarily due to financial assets at fair value through profit or loss reducing from HK$86,836 thousand to zero6 Notes to the Condensed Consolidated Financial Statements 1 General Information and Basis of Preparation The Group, an investment holding company primarily engaged in big data services, completed the disposal of its discontinued third-party payment business and faces significant going concern uncertainties due to net current liabilities, net deficiency, and a substantial decline in continuing operations revenue, with directors implementing measures to ensure sustainability - The Company primarily engages in big data services and has disposed of its third-party payment services business, which is classified as a discontinued operation910 - As of June 30, 2025, the Group faces net current liabilities of HK$35,926 thousand and a net deficiency of HK$15,345 thousand, with a significant decline in revenue from continuing operations, indicating material uncertainty about its ability to continue as a going concern10 - The Board has prepared cash flow forecasts and plans to implement measures such as equity financing, disposal of unlisted equity investments, negotiation of convertible bond settlements, and renewal of big data service license agreements to ensure the Group can operate on a going concern basis1213 2 Significant Accounting Policies The condensed consolidated financial statements are prepared on a historical cost basis, with the first-time application of HKFRS accounting standards (amendments) having no material impact on financial position or performance - The financial statements are primarily prepared on a historical cost basis, with the first-time application of HKFRS accounting standards (amendments) having no material impact1415 3 Revenue Revenue from continuing operations (big data services) significantly decreased by approximately 77.4% to HK$20,258 thousand in the first half of 2025 compared to HK$89,721 thousand in the same period of 2024 Revenue from Continuing Operations | Indicator | 2025 (HK$ thousand) | 2024 (HK$ thousand) | | :--- | :--- | :--- | | Data Analysis Services Revenue | 20,258 | 89,721 | - Revenue from continuing operations decreased significantly by 77.4% year-on-year, primarily due to reduced big data services business activities16 4 Segment Information The Group's continuing operations are attributed to a single operating segment, big data services, following the termination of its third-party payment business, with no separate geographical segment analysis presented as revenue and non-current assets are primarily from China - The Group's continuing operations comprise a single operating segment, big data services, as the third-party payment services business has been terminated17 - All revenue and non-current assets from continuing operations are primarily derived from China, hence no geographical segment information is provided18 5 Other Income and Net Gains or Losses Net other income from continuing operations significantly improved to HK$10,994 thousand for the six months ended June 30, 2025, from a loss of HK$45 thousand in the prior period, primarily due to gains from derecognition of a subsidiary and net gains on lease termination Other Income and Net Gains or Losses | Item | 2025 (HK$ thousand) | 2024 (HK$ thousand) | | :--- | :--- | :--- | | Fair value change in financial assets at FVTPL – gains/(losses) | 961 | (87) | | Gain on derecognition of a subsidiary | 5,008 | – | | Net gain on lease termination | 5,163 | 46 | | Net exchange losses | (4) | (1) | | Others | (134) | (3) | | Total | 10,994 | (45) | - Other income and net gains or losses turned from a loss to a gain, primarily due to gains from derecognition of a subsidiary and net gains on lease termination19 6 Finance Costs Finance costs for continuing operations slightly increased to HK$3,097 thousand for the six months ended June 30, 2025, primarily driven by effective interest expense on convertible bonds Finance Costs | Item | 2025 (HK$ thousand) | 2024 (HK$ thousand) | | :--- | :--- | :--- | | Interest on bank and other borrowings | 480 | 516 | | Interest on lease liabilities | 166 | 80 | | Effective interest expense on convertible bonds | 2,451 | 2,465 | | Total | 3,097 | 3,061 | 7 Profit/(Loss) Before Tax Profit/(loss) before tax from continuing operations is stated after deducting/(crediting) items such as amortization of intangible assets, depreciation of property, plant and equipment, depreciation of right-of-use assets, and interest income Adjustments to Profit/(Loss) Before Tax | Item | 2025 (HK$ thousand) | 2024 (HK$ thousand) | | :--- | :--- | :--- | | Amortisation of intangible assets | 89 | 979 | | Depreciation of property, plant and equipment | 16 | 7,961 | | Depreciation of right-of-use assets | 609 | 2,323 | | Interest income | (121) | (222) | 8 Income Tax Credit Income tax credit from continuing operations significantly decreased to HK$22 thousand for the six months ended June 30, 2025, from HK$6,308 thousand in the prior period, primarily due to a reduction in the reversal of deferred tax liabilities related to fair value adjustments of intangible assets Income Tax Credit | Item | 2025 (HK$ thousand) | 2024 (HK$ thousand) | | :--- | :--- | :--- | | Deferred tax credit | (22) | (6,308) | - Income tax credit significantly decreased, primarily due to a reduction in the reversal of deferred tax liabilities2144 9 Discontinued Operations The Group completed the disposal of its third-party payment services business (PAD (BVI)) on June 16, 2025, which is classified as a discontinued operation, achieving a profit of HK$4,897 thousand in the first half of 2025, primarily due to a HK$33,867 thousand gain on disposal, reversing a HK$109,570 thousand loss in the prior period - The Group completed the disposal of its third-party payment services business, PAD (BVI), on June 16, 2025, which is classified as a discontinued operation2234 Profit/(Loss) for the Period from Discontinued Operations | Item | January 1, 2025 to June 16, 2025 (HK$ thousand) | Six Months Ended June 30, 2024 (HK$ thousand) | | :--- | :--- | :--- | | Loss from discontinued operations for the period | (28,970) | (109,570) | | Gain on disposal of discontinued operations | 33,867 | – | | Total | 4,897 | (109,570) | - Net cash flow from discontinued operations turned from an outflow of HK$86,266 thousand in the prior period of 2024 to an inflow of HK$7,612 thousand in the first half of 202525 10 Earnings/(Loss) Per Share Basic and diluted earnings per share from continuing operations significantly improved to 0.89 HK cents for the six months ended June 30, 2025, from a loss of 18.21 HK cents in the prior period, with discontinued operations also turning profitable at 1.7 HK cents Earnings/(Loss) Per Share | Item | 2025 (HK cents) | 2024 (HK cents) | | :--- | :--- | :--- | | Basic and diluted from continuing operations | 0.89 | (18.21) | | Basic and diluted from discontinued operations | 1.7 | (3.0) | - The calculation of diluted earnings per share does not assume the exercise of convertible bonds and share options, as their exercise prices are higher than the average market price of shares or would result in a reduction in loss per share2627 11 Dividends For the six months ended June 30, 2025, the Board did not pay, declare, or propose any interim dividends - No dividends were paid, declared, or proposed for the current period or the prior period2939 12 Trade and Other Receivables Total trade and other receivables significantly decreased to HK$49,350 thousand as of June 30, 2025, from HK$307,791 thousand as of December 31, 2024, with trade receivables net of credit loss allowance at HK$9,560 thousand and no overdue balances at the reporting date Trade and Other Receivables | Item | June 30, 2025 (HK$ thousand) | December 31, 2024 (HK$ thousand) | | :--- | :--- | :--- | | Trade receivables (net) | 9,560 | 48,645 | | Other receivables, deposits and prepayments | 39,790 | 259,146 | | Total | 49,350 | 307,791 | - As of June 30, 2025, the Group had no overdue trade receivables balances31 13 Trade and Other Payables Total trade and other payables significantly decreased to HK$148,079 thousand as of June 30, 2025, from HK$336,983 thousand as of December 31, 2024, with trade payables over 90 days forming the largest proportion Trade and Other Payables | Item | June 30, 2025 (HK$ thousand) | December 31, 2024 (HK$ thousand) | | :--- | :--- | :--- | | Trade payables | 108,244 | 133,250 | | Accrued staff costs | 7,738 | 23,370 | | Amounts due to merchants | – | 44,709 | | Unutilised float | – | 39,089 | | Other payables and accrued expenses | 32,097 | 96,565 | | Total | 148,079 | 336,983 | - Among trade payables, amounts overdue for over 90 days accounted for HK$107,080 thousand, representing a major component33 14 Disposal of a Subsidiary The Group disposed of its entire equity interest in PAD (BVI), a third-party payment services subsidiary, for a cash consideration of HK$1 on June 16, 2025, resulting in a gain on disposal of HK$33,867 thousand - The Group disposed of its entire equity interest in PAD (BVI), which engages in third-party payment services, for a cash consideration of HK$1, completed on June 16, 202534 Net Liabilities and Gain on Disposal of PAD (BVI) | Item | Amount (HK$ thousand) | | :--- | :--- | | Net liabilities disposed of | (45,763) | | Gain on disposal | 33,867 | | Non-controlling interests | 31,273 | | Reserves released on disposal | (19,377) | | Total consideration settled by cash | –* | | Net cash outflow arising from disposal | (727) | Management Discussion and Analysis Results and Financial Overview For the six months ended June 30, 2025, revenue from continuing operations significantly decreased by 77.4% to HK$20,258 thousand due to reduced big data services activity, yet continuing operations achieved a profit of HK$6,229 thousand, reversing a prior-period loss, primarily due to substantial reductions in impairment losses on intangible assets, distribution and selling expenses, administrative expenses, and research and development expenses, leading to a turnaround in earnings per share - Revenue from continuing operations decreased by 77.4% year-on-year to HK$20,258 thousand, primarily due to a significant reduction in big data services business activities38 - Continuing operations turned from a loss of HK$250,400 thousand in the prior period to a profit of HK$6,229 thousand, mainly due to significant reductions in impairment losses on intangible assets, distribution and selling expenses, administrative expenses, and research and development expenses38 - Earnings per share from continuing operations turned from a loss of 18.21 HK cents in the prior period to a profit of 0.89 HK cents38 Interim Dividends The Board has resolved not to pay and not to recommend the payment of any interim dividend for the six months ended June 30, 2025 - The Board decided not to pay an interim dividend39 Business Review Big Data Services Business LYGR Group, a subsidiary, provides AI-powered big data analytics and digital risk management solutions for retail financial services, but faced significant business contraction in H1 2025 due to economic headwinds, prompting cost-efficiency measures and expansion of its SaaS/PaaS cloud platform and AI large model capabilities into new sectors like education, culture, and telecom operators - LYGR Group provides digital risk management and other digital services for retail financial services, building SaaS/PaaS cloud platforms to offer AI-powered algorithmic solutions to key clients, including leading Chinese banks40 - In the first half of 2025, the big data risk control business significantly contracted due to macroeconomic and regulatory impacts, with the industry entering a new normal of "low gross profit, high compliance"4153 - The Group implemented cost reduction and efficiency improvement measures, and expanded its big data analysis services to multiple industries, including education, culture, and telecom operators4154 Overall Performance For the six months ended June 30, 2025, continuing operations saw significant declines in gross profit and gross margin, but a substantial increase in net other income, alongside significant reductions in impairment losses on intangible assets, distribution and selling expenses, administrative expenses, and R&D expenses, while finance costs slightly increased and income tax credit decreased Key Financial Performance Changes for Continuing Operations | Indicator | 2025 (HK$ thousand) | 2024 (HK$ thousand) | Change | | :--- | :--- | :--- | :--- | | Gross Profit | 10,052 | 57,567 | Decreased by 82.5% | | Gross Margin | 49.6% | 64.2% | Decreased by 14.6 percentage points | | Other Income | 842 | 1,159 | Decreased by 27.4% | | Other Income and Net Gains or Losses | 10,994 | (45) | Turned from loss to gain | | Impairment Loss on Intangible Assets | 0 | 238,301 | Decreased by 100% | | Distribution and Selling Expenses | 1,844 | 25,469 | Decreased by 92.8% | | Administrative Expenses | 8,527 | 30,103 | Decreased by 71.7% | | Research and Development Expenses | 2,213 | 18,455 | Decreased by 88% | | Finance Costs | 3,097 | 3,061 | Increased by 1.2% | | Income Tax Credit | 22 | 6,308 | Decreased by 99.6% | - The decrease in gross profit and gross margin was primarily due to a significant reduction in big data services business activities42 - The significant increase in other income was primarily due to gains from derecognition of a subsidiary and net gains on lease termination42 Liquidity, Financial Resources, Borrowings, Share Capital Structure, Charges on Assets and Foreign Exchange Fluctuation Risks As of June 30, 2025, the Group experienced a significant reduction in non-current assets and an improvement in net current liabilities, with total debt substantially decreasing due to reduced borrowings, while maintaining stable gearing and current ratios, no asset pledges, and close monitoring of foreign exchange risks Liquidity and Debt Indicators | Indicator | June 30, 2025 (HK$ thousand) | December 31, 2024 (HK$ thousand) | | :--- | :--- | :--- | | Non-current Assets | 23,989 | 112,827 | | Net Current Liabilities | (35,926) | (141,937) | | Total Debt | 76,210 | 149,202 | | Borrowings | 12,617 | 80,683 | | Convertible Bonds | 62,909 | 60,458 | | Lease Liabilities | 684 | 8,061 | | Gearing Ratio | 1.1 times | 1.1 times | | Current Ratio | 0.8 times | 0.8 times | - All borrowings of approximately HK$12,617 thousand are repayable after one year47 - Convertible bonds bear interest at 6% per annum, with an additional 10% per annum interest accruing upon default46 - The Group has no assets pledged/charged and closely monitors foreign exchange risks48 Treasury Policy The Group adopts a prudent financial management approach, committed to maintaining a sound liquidity position, mitigating credit risk through continuous credit assessments, and closely monitoring liquidity to meet funding requirements - The Group adopts a prudent treasury policy, maintaining sound liquidity, mitigating risks through credit assessments, and monitoring its liquidity position50 Employees As of June 30, 2025, the Group's employee count significantly decreased to 24 (December 31, 2024: 172), with remuneration policies regularly reviewed to align with market conditions and individual performance - The number of employees significantly decreased from 172 to 2451 - The Group regularly reviews its remuneration policy to ensure alignment with market conditions and individual performance51 Material Investments, Acquisitions and Disposals Apart from the disclosed disposal of a subsidiary, the Group had no other material investments, acquisitions, or disposals during the interim period - Apart from the disclosed disposal of a subsidiary, there were no other material investments, acquisitions, or disposals during the current period52 Prospects and Strategies Facing macroeconomic challenges and a "low gross profit, high compliance" industry new normal, the Group achieved revenue in H1 2025 under business pressure and will continue cost reduction and efficiency improvement, leveraging its SaaS/PaaS cloud platform and AI large model capabilities to expand into education, culture, and telecom sectors, while focusing on "stabilizing finance," "diversifying," and "pioneering innovation" in H2 to develop new growth drivers - The Group will continue to implement cost reduction and efficiency improvement measures, leveraging its SaaS/PaaS cloud platform and AI large model capabilities to expand big data analysis services into multiple industries, including education, culture, and telecom operators4154 - The Group will actively participate in the integrated development of public and social data, striving to gain a first-mover advantage in the new round of market access54 - Looking ahead to the second half of the year, the Group's strategy focuses on "stabilizing finance" (lightweight transformation of credit risk control products), "diversifying" (deepening data analysis services in real economy sectors like education, culture, and operators), and "pioneering innovation" (accelerating vertical application iteration of industry large models, breaking through multimodal data fusion and automated compliance auditing)55 Other Information Purchase, Sale or Redemption of the Company's Listed Securities For the six months ended June 30, 2025, neither the Company nor any of its subsidiaries purchased, sold, or redeemed any of the Company's listed securities - Neither the Company nor its subsidiaries purchased, sold, or redeemed any listed securities during the current period56 Changes in Directors' Information For the six months ended June 30, 2025, Mr. Li Yunjiu was appointed as an executive director on February 14, 2025, and Dr. Wang Bangyi resigned as an executive director on July 23, 2025 Changes in Directors' Information | Director Name | Change Details | | :--- | :--- | | Mr. Li Yunjiu | Appointed as Executive Director on February 14, 2025 | | Dr. Wang Bangyi | Resigned as Executive Director on July 23, 2025 | Corporate Governance and Other Information The Company generally complies with the Corporate Governance Code, except for Code Provision C.2.1 regarding the separation of Chairman and CEO roles, with Chairman Mr. Gu Zhongli overseeing strategy and supervision while executive directors and senior management monitor daily operations, a structure the Board believes ensures a balance of power and authority - The Company complies with the Corporate Governance Code, except for Code Provision C.2.1 regarding the separation of roles between the Chairman and Chief Executive Officer5758 - Following Dr. Wang Bangyi's resignation as CEO, the Company has no CEO position, with Chairman Mr. Gu Zhongli responsible for strategy formulation and supervision, while daily operations are monitored by executive directors and senior management58 - All Directors confirmed compliance with the Model Code for Securities Transactions by Directors of Listed Issuers throughout the current period59 Review by Audit Committee The Audit Committee reviewed the Group's adopted accounting principles and practices, discussed internal controls and financial reporting matters, and examined the unaudited condensed consolidated financial statements for the six months ended June 30, 2025 - The Audit Committee reviewed accounting principles, internal controls, and financial reporting matters, and examined the unaudited condensed consolidated financial statements for the current period60 Publication of Interim Report on the HKEX Website The 2025 interim report will be dispatched to shareholders and published on the HKEX website and the Company's website in due course - The 2025 interim report will be dispatched to shareholders and published on the HKEX and Company websites61
联洋智能控股(01561) - 2025 - 中期业绩