Revenue and Profitability - The total revenue for the six months ended June 30, 2025, was HKD 40,500,000, an increase of approximately HKD 6,000,000 or 17.4% compared to HKD 34,500,000 for the same period in 2024[7]. - Revenue from mobile phone and electronic product trading for the six months ended June 30, 2025, was HKD 40,500,000, with contributions from Hong Kong and China being HKD 30,100,000 and HKD 10,400,000, respectively, accounting for 74.3% and 25.7% of total revenue[7]. - Gross profit for the six months ended June 30, 2025, was HKD 1,100,000, with a gross profit margin of 2.7%, compared to HKD 95,000 and 0.3% for the same period in 2024[9]. - Other income for the six months ended June 30, 2025, was approximately HKD 500,000, up from HKD 100,000 for the same period in 2024[11]. - The company recorded a loss attributable to owners of HKD 6,600,000 for the six months ended June 30, 2025, compared to a loss of HKD 6,800,000 for the same period in 2024[17]. - Basic loss per share for the six months ended June 30, 2025, was HKD 0.0261, compared to HKD 0.0313 for the same period in 2024[18]. - The net loss for the six months ended June 30, 2025, was HKD 7,455,000, a decrease in loss compared to HKD 8,771,000 for the same period in 2024, indicating a 14.9% improvement[75]. - For the six months ended June 30, 2025, the company reported a loss attributable to owners of approximately HKD 6,560,000, compared to a loss of HKD 6,753,000 for the same period in 2024, indicating a decrease of about 2.86% in losses year-over-year[88]. Financial Position - Inventory as of June 30, 2025, was HKD 3,300,000, an increase from HKD 600,000 as of December 31, 2024, primarily due to undelivered mobile phones and electronic products[21]. - Cash and cash equivalents increased from approximately HKD 7,200,000 on December 31, 2024, to about HKD 7,900,000 on June 30, 2025, mainly due to a new share subscription completed in January 2025, amounting to approximately HKD 4,100,000[23]. - Total assets as of June 30, 2025, were HKD 59,255,000, slightly up from HKD 59,188,000 as of December 31, 2024[78]. - Current liabilities increased to HKD 78,165,000 as of June 30, 2025, compared to HKD 74,733,000 as of December 31, 2024[78]. - The company's equity attributable to owners decreased to HKD (13,464,000) as of June 30, 2025, from HKD (11,721,000) as of December 31, 2024[80]. - The company’s total equity attributable to owners decreased to HKD 26,790,000 as of June 30, 2025, from HKD 28,041,000 as of January 1, 2024, reflecting a decline of approximately 4.48%[81]. - The company’s current liabilities exceeded its current assets by approximately HKD 18,910,000 as of June 30, 2025, compared to HKD 15,545,000 as of December 31, 2024, indicating a worsening liquidity position[88]. Expenses and Costs - Financing costs for the six months ended June 30, 2025, were approximately HKD 1,000,000, compared to HKD 49,000 for the same period in 2024, mainly due to interest on short-term borrowings[15]. - Administrative expenses decreased by HKD 700,000 or 8.0% to approximately HKD 8,000,000 for the six months ended June 30, 2025, primarily due to reductions in salaries and legal fees[14]. - The company incurred employee costs totaling HKD 4,321,000 for the six months ended June 30, 2025, slightly up from HKD 4,174,000 in the same period of 2024[115]. Share Capital and Financing - The company has conditionally agreed to issue a total of 16,000,000 shares at a subscription price of HKD 0.26 per share, raising approximately HKD 4,160,000[53]. - The net proceeds from the share subscription completed on January 22, 2025, were approximately HKD 4,120,000, intended for general working capital[36]. - The company issued 16,000,000 new shares at a subscription price of HKD 0.26 per share, raising approximately HKD 4,160,000[120]. - The company plans to continue seeking alternative financing and bank loans to meet existing financial obligations and future operational and capital expenditures[92]. Market and Business Strategy - The company adopted a supply chain diversification strategy, expanding its trading and distribution network to more regions, contributing to the revenue increase from China[8]. - The group aims to leverage the growing demand for internet services in China, with fixed broadband users reaching 654 million as of June 2025[43]. - The mobile phone market in China is expected to face challenges due to ongoing trade tensions, but the large domestic market continues to provide growth momentum[47]. - The group is focused on technological advancements and market diversification to strengthen its competitive advantage and ensure robust growth in the coming years[48]. - The group plans to monitor changes in the Hong Kong and ASEAN trade markets closely to identify new opportunities[47]. Corporate Governance and Compliance - The company has complied with the corporate governance code as per the Hong Kong Stock Exchange regulations, with some deviations noted[68]. - There were no significant events after the reporting period up to the date of this report[67]. - The company has not granted any stock options under its stock option plan since its adoption in May 2014 until its expiration in May 2024[59]. - No arrangements have been made for directors to benefit from purchasing shares or bonds of the company during the reporting period[60]. - The company has no other disclosures regarding interests or positions held by directors or major shareholders as of June 30, 2025[64]. Segment Information - The group has two reportable segments: mobile phone and electronic products business, and mining business, although the mining business has been terminated[100]. - The reported loss from the mobile phone and electronic products business was HKD 1,145,000, while the terminated mining business incurred a loss of HKD 413,000, resulting in a total loss of HKD 1,558,000[105]. Fair Value and Financial Instruments - The fair value of financial assets measured at fair value as of June 30, 2025, includes HKD 529,000 in listed equity investments and HKD 106,000 in unlisted equity investments[128]. - The fair value of level 3 financial instruments increased from HKD 102,000 as of December 31, 2024, to HKD 106,000 as of June 30, 2025[131]. - The company reported a fair value change of HKD 4,000 for level 3 financial instruments during the period[131]. - The company’s non-listed equity investments are valued based on the fair value of the related assets and liabilities[132].
中国长远(00110) - 2025 - 中期财报