Revenue Performance - Revenue from continuing operations decreased from approximately HK$264.7 million for the six months ended June 30, 2024, to approximately HK$188.2 million for the six months ended June 30, 2025, representing a decline of about 29%[5]. - Revenue from the EMS segment decreased by approximately HK$63.4 million, primarily due to reduced business in the European and US markets[6]. - The revenue from the EMS business decreased by 25.6% to HK$184.0 million for the six months ended June 30, 2025, compared to HK$247.4 million in 2024[9]. - The Real Estate Supply Chain Services business revenue decreased by 11.2% to HK$4.3 million for the six months ended June 30, 2025, from HK$4.8 million in 2024[15]. - The Securities and Other Assets Investment segment generated approximately HK$nil in revenue for the six months ended June 30, 2025, down from HK$12.2 million in 2024[16]. - Total revenue for the period ended 30 June 2025 was HK$188.2 million, a decrease of 28.9% compared to HK$264.7 million in 2024[55][61]. - Revenue contributions from major European countries totaled HK$65.7 million, accounting for 34.9% of total turnover for the six months ended June 30, 2025[52]. - The United States market contributed HK$39.9 million in revenue, representing 21.2% of total turnover for the same period[52]. - The People's Republic of China and other countries accounted for HK$26.1 million and HK$56.5 million in revenue, respectively, for the six months ended June 30, 2025[52]. - Revenue from external customers for the six months ended June 30, 2025, was HK$188,226,000, a decrease from HK$264,698,000 in the same period of 2024, representing a decline of approximately 29%[192][194]. Financial Position - As of June 30, 2025, the Group had bank and cash balances totaling approximately HK$331.3 million, an increase from HK$312.1 million as of December 31, 2024[8]. - The Group's current ratio was 2.6 times, with cash and cash equivalents amounting to HK$331.3 million, an increase of HK$19.3 million from the previous period[81][86]. - Total assets as of June 30, 2025, were HK$875,181,000, slightly down from HK$880,137,000 at the end of 2024[181]. - Total current assets remained stable at HK$801,876,000 compared to HK$801,491,000 at the end of 2024[181]. - Non-current assets decreased to HK$73,305,000 from HK$78,646,000, reflecting a decline in property, plant, and equipment[181]. - Total liabilities as of June 30, 2025, amounted to HK$343,001,000, a slight decrease of 0.1% from HK$343,252,000 as of December 31, 2024[182]. - Current liabilities increased to HK$305,614,000 from HK$301,130,000, reflecting a rise of 1.6%[182]. - Total liabilities amounted to 343,001 million, slightly down from 343,252 million year-over-year[199]. - Borrowing increased to 17,300 million from 14,300 million, reflecting a growth of approximately 21%[199]. - Bonds payable rose to 33,827 million, up from 25,041 million, indicating a significant increase of about 35%[199]. - Total equity attributable to owners of the company as of June 30, 2025, was HK$532,180,000, reflecting a decrease from HK$536,531,000 as of December 31, 2024[184]. Profitability and Losses - Gross profit fell 44.4% to HK$41.0 million, with a gross profit margin of 21.8%, down from 27.8% in 2024[57][63]. - The loss attributable to owners of the Company was HK$16.3 million, with a net loss margin of 8.6%[73][79]. - Loss for the period was HK$16,497,000, compared to a loss of HK$4,786,000 in the prior year, indicating a significant increase in losses[180]. - Basic loss per share increased to 7.26 HK cents from 1.96 HK cents in the previous year[179]. - The company reported a total comprehensive loss of HK$10,011,000 for the period, compared to a loss of HK$10,154,000 in the previous year[180]. - The company reported a consolidated loss before tax of HK$15,725,000 for the six months ended June 30, 2025, compared to a loss of HK$1,521,000 in the same period of 2024[194]. Credit and Risk Management - The Group has established strict credit policies and controls to mitigate credit risks, including thorough credit assessments and due diligence during the loan application process[26][28]. - The Group's impairment losses primarily relate to the expected credit loss (ECL) allowance for loans and interest receivables, assessed based on historical credit loss experience and current economic conditions[31][34]. - The management continuously monitors the credit quality of each borrower to minimize exposure to credit risk[50]. - The Group performs public searches on borrowers and guarantors to ensure compliance with anti-money laundering and counter-terrorist financing regulations[36][37]. - Legal actions for loan recovery will be considered on a case-by-case basis to minimize potential credit losses[26][28]. - The Group's expected credit loss (ECL) assessments are based on historical credit loss experience and adjusted for specific debtor factors and economic conditions[47]. - For the six months ended June 30, 2025, the Group recorded an impairment loss on loans and interest receivable of approximately HK$nil, indicating effective credit risk management[47]. Business Strategy and Operations - The Group plans to close down the subsidiary in the Distribution Segment due to the continuing decrease in demand for business telephone system products in North America[11]. - The Group has commenced the energy storage business in 2023, aligning with government policies to achieve carbon neutrality goals[7]. - The Group is closely monitoring global economic challenges, including high interest rates and geopolitical conflicts, to adjust its business development strategy accordingly[108]. - The company continues to focus on its core operations while exploring opportunities for market expansion and new product development[192]. - The energy storage industry in China is expected to experience rapid growth driven by government policies and market demand, particularly in lithium battery energy storage[105][106]. - The Chinese energy storage industry is experiencing rapid growth driven by government policies and market demand, with a focus on lithium battery storage in the short term and multi-technology integration in the medium to long term[109]. - The company plans to invest approximately $5,000,000 in a subsidiary registered in Cambodia within the next 12 months, including the establishment of production facilities[109]. - The company is enhancing its marketing efforts to attract potential customers in the United States, benefiting from tax incentives for exports[109]. Share Options and Equity - As of June 30, 2025, there were 2,621,296 share options valid and outstanding under the 2020 Share Option Scheme[138]. - On November 3, 2023, 15,695,082 share options were granted to employees and directors under the 2023 Share Option Scheme[140]. - The total number of shares available for issue under the Share Option Scheme was 18,171,478, representing approximately 8.1% of the issued shares as of the report date[142]. - The 2023 Share Option Scheme and 2023 Share Award Plan were adopted at the 2023 AGM, terminating the 2020 Share Option Scheme[139]. - The maximum entitlement for each participant under the 2023 Share Award Plan is capped at 1% of the issued share capital of the Company within any 12-month period[153]. - The share options granted are intended to recognize past contributions and encourage future performance, with specific terms under which they may lapse[159]. - The share option scheme aims to align the interests of grantees with those of the Company and its shareholders[151]. - The Company did not grant any share options to directors or senior managers during the six months ended June 30, 2025, as per the Listing Rules[164].
中国储能科技发展(01143) - 2025 - 中期财报