Revenue and Profitability - Revenue for the six months ended December 31, 2021, was HK$37,541,000, a decrease of 48.5% compared to HK$72,600,000 in the previous period[4] - Gross profit for the same period was HK$2,609,000, down 52.0% from HK$5,434,000 in the previous period[4] - Loss before taxation was HK$37,112,000, compared to a loss of HK$35,714,000 in the previous period, indicating a 3.9% increase in losses[4] - Loss for the period from continuing operations was HK$37,631,000, slightly higher than the loss of HK$35,927,000 in the previous period[4] - Profit from discontinued operations for the period was HK$4,742,000, down 48.3% from HK$9,164,000 in the previous period[4] - Total comprehensive expense for the period was HK$32,428,000, compared to HK$16,916,000 in the previous period, reflecting a significant increase in losses[8] - The Group's revenue for the six months ended December 31, 2021, was HK$37,541,000, a decrease of 46.5% compared to HK$70,200,000 for the same period in 2020[53] - Revenue from the sale of cultural products was HK$0, while revenue from the sale and leasing of surveillance equipment was HK$43,000, down from HK$520,000 in the previous year[53] - Revenue from renewable energy products was HK$3,864,000, a decrease of 8.7% from HK$4,234,000 in the prior year[53] - Trading of gasoil generated revenue of HK$33,634,000, down 48.7% from HK$65,446,000 in the previous year[53] Financial Position - As of December 31, 2021, total assets less current liabilities amounted to HK$185,786,000, a decrease from HK$314,988,000 as of June 30, 2021, representing a decline of approximately 41%[15] - The company's net current assets were HK$94,890,000, down from HK$184,140,000, indicating a reduction of about 48%[15] - Non-current liabilities increased to HK$9,888,000 from HK$250,893,000, reflecting a significant decrease of approximately 96%[18] - The total equity attributable to owners of the company rose to HK$148,362,000 from a deficit of HK$6,967,000, marking a substantial turnaround[18] - Cash and cash equivalents decreased to HK$30,322,000 from HK$135,567,000, a decline of about 78%[15] - The company reported a loss for the period, with accumulated losses reaching HK$4,568,627,000 as of December 31, 2021[23] - Share capital increased significantly to HK$273,532,000 from HK$68,383,000, indicating a growth of approximately 300%[23] - The company’s reserves showed a negative balance of HK$125,170,000, worsening from a negative HK$75,350,000[18] - The Group's total assets as of 31 December 2021 were approximately HK$3,334,623,000[166] Cash Flow and Financing Activities - Cash generated from operations was HK$773,000, significantly down from HK$33,182,000 in the prior period[28] - Net cash used in investing activities amounted to HK$59,824,000, compared to a net cash generation of HK$8,156,000 in the same period last year[31] - The company reported a net cash outflow of HK$98,939,000 in cash and cash equivalents, contrasting with an increase of HK$15,637,000 in the previous year[31] - The company incurred finance costs of HK$11,923,000, compared to HK$16,600,000 in the previous year[28] - The repayment of other interest-bearing borrowings was HK$185,000,000, a significant increase from HK$10,000,000 in the prior period[31] - The company reported a net cash used in financing activities of HK$39,660,000, compared to HK$25,319,000 in the previous year[31] - The rights issue completed on December 14, 2021, raised net proceeds of approximately HK$198,000,000, which were used to repay HK$126,000,000 of remaining loans[157] - The company completed a Rights Issue on 14 December 2021, raising gross proceeds of approximately HK$205 million by issuing 2,051,492,544 rights shares at a subscription price of HK$0.1 per share[172] Discontinued Operations - The Group reported a segment loss before taxation from continuing operations of HK$37,112,000 for the period[60] - The Group ceased operations related to system sales and licensing after the disposal of its shareholding in Kantone Holdings Limited, impacting comparative figures[54] - For the six months ended December 31, 2021, the revenue from discontinued operations was HK$41,302,000, a decrease of 38.5% compared to HK$66,993,000 in 2020[90] - The gross profit from discontinued operations for the same period was HK$24,069,000, down 38.6% from HK$39,218,000 in 2020[90] - The profit for the period from discontinued operations was HK$4,742,000, a decline of 48.3% compared to HK$9,164,000 in 2020[90] - The net cash outflows from discontinued operations were HK$6,888,000 for the period, compared to inflows of HK$19,976,000 in 2020[90] Taxation and Compliance - The total income tax expense for the six months ended December 31, 2021, was HK$519,000, significantly higher than HK$213,000 in 2020[75] - The deferred tax charged for the period was HK$256,000, compared to HK$28,000 in 2020, indicating increased tax liabilities[75] - The company has applied certain amendments to Hong Kong Financial Reporting Standards for the first time during the current period[34] Assets and Liabilities - The carrying value of property, plant, and equipment decreased from HK$36,577,000 on July 1, 2021, to HK$2,106,000 by December 31, 2021, primarily due to the disposal of subsidiaries[103] - The fair value of investment properties as of June 30, 2021, was approximately HK$50,022,000, with no significant changes noted by December 31, 2021[106] - The present value of minimum lease payment receivables decreased from HK$42,975,000 as of June 30, 2021, to HK$41,604,000 by December 31, 2021[111] - Inventory levels dropped significantly from HK$38,564,000 on June 30, 2021, to HK$12,979,000 by December 31, 2021, indicating a reduction in raw materials and finished goods[118] - The Group's finished goods included cultural products valued at approximately HK$8,508,000 as of December 31, 2021[118] - The Group's lease liabilities were reported at HK$3,546,000[177] - The warranty provision stood at HK$1,166,000[177] Credit and Receivables Management - As of December 31, 2021, trade receivables amounted to HK$39,605,000, with an impairment provision of HK$1,353,000, compared to HK$41,531,000 and HK$1,122,000 as of June 30, 2021[123] - Other receivables as of December 31, 2021, totaled HK$36,645,000, with an impairment provision of HK$5,683,000, up from HK$19,438,000 and HK$5,683,000 as of June 30, 2021[123] - The ageing analysis of trade receivables shows that HK$18,391,000 (48.1%) were within 0-60 days past due as of December 31, 2021, compared to HK$14,919,000 (36.9%) as of June 30, 2021[126] - Trade receivables over 90 days past due increased to HK$15,831,000 (41.4%) as of December 31, 2021, from HK$9,071,000 (22.2%) as of June 30, 2021[126] - The Group's credit policy allows for credit periods ranging from 30 to 180 days based on customer financial strength and market conditions[124] - The Group regularly reviews credit limits for customers based on past settlement history and current reputation[130] Fair Value Measurement - The fair value measurement is categorized into levels 1 to 3 based on the observability of the fair value[197] - The company has maintained consistent valuation of investment properties across reporting periods[195][196] - The financial instruments and investment properties are measured at fair value for recurring measurement[197] - The company adheres to its accounting policy for fair value measurement without any changes in classification[198]
冠军科技集团(00092) - 2022 - 中期财报