Financial Performance - The total revenue for the six months ended June 30, 2022, was HKD 28,100,000, a decrease of approximately HKD 25,600,000 or 47.7% compared to HKD 53,700,000 for the same period in 2021[9]. - Revenue from mobile phone and related accessories trade was HKD 28,100,000, with contributions from Shanghai and Hong Kong being HKD 22,800,000 and HKD 5,300,000, respectively, accounting for 81.1% and 18.9% of total revenue[9]. - The company's revenue for the six months ended June 30, 2022, was HKD 28,110,000, a decrease of 47.8% compared to HKD 53,706,000 for the same period in 2021[82]. - The gross profit for the same period was HKD 55,000, with a gross margin of 0.2%[82]. - The company reported a loss before tax of HKD 11,167,000, compared to a loss of HKD 4,791,000 in the previous year, indicating a significant increase in losses[82]. - The total comprehensive loss for the period was HKD 11,654,000, compared to HKD 5,084,000 in the previous year, representing an increase of 129.1%[83]. - For the six months ended June 30, 2022, the mobile phone segment reported revenue of HKD 28,110,000, a decrease of 47.8% compared to HKD 53,706,000 for the same period in 2021[117]. - The total reported segment loss for the mobile phone and mining segments was HKD 7,376,000, compared to a loss of HKD 1,183,000 in the previous year, indicating a significant increase in losses[103]. Expenses and Losses - The net loss attributable to the owners of the company for the six months ended June 30, 2022, was HKD 7,500,000, compared to a net loss of HKD 3,500,000 for the same period in 2021[19]. - Basic loss per share for the period was HKD 0.0406, compared to HKD 0.0210 for the same period last year[20]. - Administrative expenses increased by 150% to HKD 14,000,000, primarily due to the new mobile application business in China, which incurred approximately HKD 8,400,000 in administrative expenses[15]. - Administrative expenses rose to HKD 14,028,000, up from HKD 5,637,000 in the previous year, reflecting a 148.5% increase[82]. - The company reported a net cash outflow from operating activities of HKD 10,574,000 for the six months ended June 30, 2022, compared to HKD 4,542,000 in the same period last year[92]. Assets and Liabilities - Cash and cash equivalents totaled HKD 16,000,000 as of June 30, 2022, down from HKD 31,500,000 as of December 31, 2021[24]. - As of June 30, 2022, the group's net asset value attributable to shareholders was HKD 44,100,000, down from HKD 53,900,000 as of December 31, 2021, representing a decrease of approximately 18.5%[28]. - The group's current liabilities net amount was approximately HKD 8,000,000 as of June 30, 2022, compared to HKD 4,000,000 as of December 31, 2021, indicating a significant increase in current liabilities[28]. - The current ratio decreased to 0.75 times as of June 30, 2022, from 1.11 times as of December 31, 2021, reflecting a decline in liquidity[28]. - The company reported a total of HKD 3,047,000 in financial assets measured at fair value as of June 30, 2022, compared to HKD 3,294,000 at the end of 2021, indicating a decline of approximately 7%[136]. - The company's total liabilities decreased to HKD 31,979,000 from HKD 36,168,000, a decline of 11.9%[86]. Market Conditions and Outlook - The mobile phone market in China is experiencing a slowdown, with expectations of continued decline in the coming years, although partially offset by the development of 5G and 6G technologies[39]. - The group anticipates continued challenges in the consumer and retail sectors due to the dual impact of the US-China trade war and the COVID-19 pandemic, leading to an uncertain outlook for the coming years[52]. - By the end of 2021, the number of mobile phone users in China reached approximately 1.63 billion, with significant growth in 5G users and network users, indicating substantial market opportunities[55]. Business Developments - The group has recognized a full impairment provision of HKD 174.6 million for mining rights and HKD 9 million for related plants and equipment due to the inability to clarify the status of mining license renewal with the Ministry of Natural Resources[47]. - The group did not make any significant investments or acquisitions during the six months ended June 30, 2022[32][31]. - The company plans to enhance its promotion of the "Bag Master" business, which integrates IoT technology to provide free delivery of eco-friendly bags and aims to monetize offline traffic through advertising partnerships[56]. - The company has installed eco-friendly bag dispensing machines in collaboration with various hospitals, supermarkets, and other venues, aiming to monetize database traffic and related services[58]. - The database monetization business has shown a rebound and steady growth since June 2022, indicating positive market trends[58]. - The company aims to integrate with multiple eco-friendly bag brands and manufacturers, enhancing its competitive edge through a free product revenue model[59]. - The company is optimistic about the development of the eco-friendly products and services sector in China, indicating a positive long-term outlook[59]. Shareholder Information - As of June 30, 2022, the company’s major shareholder, Mr. Liu Xiaoying, holds 63.40% of the issued shares, reflecting significant insider ownership[64]. - The average number of shares issued increased to 183,555,888 as of June 30, 2022, from 167,719,781 shares in the previous year, reflecting an increase of about 9%[122]. - The board of directors did not recommend any interim dividend for the six months ended June 30, 2022, consistent with the previous year[34]. - The board did not declare an interim dividend for the six months ended June 30, 2022, and June 30, 2021[142].
中国长远(00110) - 2022 - 中期财报