Financial Performance - The Group recorded total net revenue of HK$108.0 million, a slight decline of 1.7% from HK$109.8 million in the same period last year[9]. - Gross profit margin increased to 56.7%, up from 54.1% in 2024[9]. - Profit from operations rose by 23.3% to HK$17.7 million, with the operating profit margin improving to 14.7% from 11.3% in 2024[10]. - Consolidated net profit attributable to shareholders increased by 2.4% to HK$18.6 million, with basic earnings per share rising to 7.66 HK cents from 7.46 HK cents in 2024[12]. - The Group declared an interim dividend of 5.5 HK cents per ordinary share, consistent with the prior period[13]. - Other income and gains decreased by 13.2% to HK$6.3 million due to lower bank interest rates[11]. - The Group's net revenue after direct third-party costs declined by 1.7% to HK$108.0 million, primarily due to lower professional service income recognition and delays in new contract backlog[40]. - The Solutions and Integration Services segment recorded an 8.7% revenue decline to HK$51.6 million, attributed to reduced professional services revenue and absence of third-party product sales[23]. - Recurring revenue, including maintenance and SaaS income, continued to grow steadily despite the overall revenue decline[40]. Investments and Strategic Initiatives - The Group is actively exploring joint ventures and M&A opportunities for overseas market expansion, with a strategic initiative expected to materialize in the second half of the year[36]. - The Group is forming strategic partnerships with leading technology firms in Mainland China to integrate cutting-edge technologies into its product portfolio[26]. - The Group continues to invest in product research and development to enhance its software portfolio with new AI features[20]. Operational Efficiency - The cost of goods and services procured from third parties decreased by HK$5.5 million, or 30.9%, to HK$12.3 million[40]. - Overall staff costs decreased by 1.2% to HK$76.5 million, down from HK$77.4 million in the previous year[44]. - Selling and distribution expenses increased by 2.6% to HK$18.0 million, compared to HK$17.6 million last year[45]. - General and administrative expenses decreased by HK$3.2 million, or 10.7%, to HK$26.7 million from HK$29.9 million[46]. Assets and Liabilities - Current assets slightly declined by HK$5.9 million, or 1.4%, to HK$428.7 million[59]. - Current and non-current liabilities decreased by HK$22.4 million, or 13.1%, to HK$148.0 million[60]. - Total equity attributable to owners of the parent remained stable at HK$507.6 million, reflecting profit generated during the period[63]. - Non-current assets declined by HK$9.9 million, or 4.2%, to HK$228.1 million, mainly due to amortization and downward revaluation of investment property[54]. - The Group's cash and cash equivalents increased significantly to HK$326.9 million as of June 30, 2025, compared to HK$128.9 million as of December 31, 2024[70]. - The current ratio improved to 3.3 as of June 30, 2025, up from 2.9 as of December 31, 2024, indicating better short-term financial health[72]. - The gearing ratio decreased to 22.5% as of June 30, 2025, from 25.3% as of December 31, 2024, reflecting a reduction in total liabilities relative to total assets[72]. - The Group had no bank borrowings as of June 30, 2025, consistent with the position as of December 31, 2024[72]. Revenue Segmentation - Total segment revenue decreased to HK$123,322,000 in 2025 from HK$135,763,000 in 2024, representing a decline of approximately 9.1%[129]. - Application services segment revenue was HK$67,771,000 in 2025, down from HK$70,191,000 in 2024, a decrease of about 3.9%[129]. - Solutions and integration services segment revenue fell to HK$53,023,000 in 2025 from HK$63,598,000 in 2024, a decline of approximately 16.7%[129]. - The investments segment generated revenue of HK$920,000 in 2025, slightly down from HK$957,000 in 2024, a decrease of about 3.9%[129]. Taxation and Compliance - The total tax charge for the period was HK$2,969,000 in 2025, compared to HK$2,721,000 in 2024, reflecting an increase of 9.1%[174]. - The Group has been responding to multiple inquiries from the Hong Kong Inland Revenue Department regarding R&D tax deductions, with the latest inquiry issued on February 28, 2025[175]. - The tax authority issued protective assessments for the years 2016/17 and 2017/18, requiring approximately HK$0.8 million and HK$1.0 million in tax payments, respectively[178]. - The focus of the tax review is on the nature and deductibility of certain expenses and R&D Enhanced Deduction claims made by the subsidiaries[180]. Shareholder Information - An interim dividend of HK$0.055 per ordinary share has been determined for shareholders[186]. - The weighted average number of ordinary shares outstanding during the period was 242,787,539 for 2025, compared to 243,670,021 for 2024[187]. - The total dividends attributable to the previous financial year approved during the interim period amounted to HK$13.4 million[185].
科联系统(00046) - 2025 - 中期财报