Financial Performance - Revenue for the six months ended June 30, 2022, was HKD 1,776,000, compared to HKD 4,869,000 for the same period in 2021, representing a decrease of 63.6%[6] - Operating loss for the period was HKD 6,446,000, significantly improved from a loss of HKD 32,517,000 in the previous year, indicating a reduction of 80.2%[6] - The net loss for the period was HKD 8,500,000, compared to a net loss of HKD 34,297,000 in the same period last year, reflecting a decrease of 75.2%[6] - Total comprehensive loss for the period was HKD 9,916,000, down from HKD 33,808,000 in the previous year, a reduction of 70.7%[8] - The company’s basic and diluted loss per share improved from HKD 6.55 in 2021 to HKD 1.62 in 2022, a reduction of 75.7%[8] - The company reported a net loss of approximately HKD 8,500,000 for the six months ended June 30, 2022, compared to a net loss of approximately HKD 34,297,000 for the same period in 2021[17] - For the six months ended June 30, 2022, the company recorded unaudited revenue of approximately HKD 1,776,000, a decrease of about 63.5% compared to HKD 4,869,000 in the same period last year[50] - The unaudited loss attributable to the company's owners was approximately HKD 8,500,000, compared to a loss of approximately HKD 34,297,000 in the previous year[50] Assets and Liabilities - The company’s total assets less current liabilities decreased from HKD 48,210,000 in December 2021 to HKD 38,294,000 as of June 30, 2022, a decline of 20.7%[11] - The company’s total equity decreased from HKD 48,210,000 at the end of 2021 to HKD 38,294,000 by June 30, 2022, a decline of 20.7%[11] - As of June 30, 2022, the company had recognized a net expected credit loss provision of approximately HKD 451,000 for receivables, significantly lower than HKD 18,931,000 in the previous year[39] - The company's total accounts payable decreased to HKD 9,765,000 as of June 30, 2022, from HKD 9,386,000 as of December 31, 2021[40] - As of June 30, 2022, the total assets decreased to approximately HKD 71,538,000 from HKD 82,311,000 as of December 31, 2021, representing a decline of about 13.5%[56] - The total liabilities as of June 30, 2022, decreased to approximately HKD 33,244,000 from HKD 34,101,000 as of December 31, 2021, a reduction of about 2.5%[56] Cash Flow and Financing - Cash and cash equivalents at the end of the period were HKD 12,331,000, down from HKD 18,886,000 at the beginning of the period, a decrease of 34.5%[14] - The company is actively considering fundraising activities, including rights issues and public offerings, to raise new capital[18] - The company raised approximately HKD 7,760,000 from the placement of 200,000,000 new shares at a price of HKD 0.04 per share, with the net proceeds intended for general working capital and potential investments[69] - As of June 30, 2022, HKD 17,191,000 of the rights issue proceeds had been utilized, leaving a balance of HKD 3,759,000 for potential new projects[71] - The company completed a rights issue on December 14, 2020, raising approximately HKD 21,000,000, with net proceeds allocated for general working capital, including HKD 12,600,000 for potential new projects and HKD 8,400,000 for operating expenses[71] Operational Efficiency - The company is implementing cost control measures to improve cash flow and operational efficiency[19] - The company noted delays in the collection of receivables due to the impact of the COVID-19 pandemic, affecting customer business activities[52][53] - The company has taken necessary measures to address the collection delays, including negotiating repayment plans and seeking legal advice for enforcement[53] Shareholder Information - As of June 30, 2022, the company had issued 523,330,908 shares, with significant shareholdings by directors, including 38,000,000 shares (7.26%) held by Mr. Zheng Yutian[78] - China CITIC Group holds a controlling interest with 106,447,008 shares, representing approximately 20.34% of the issued shares[81] - The company announced a share transaction involving the sale of 105,815,008 shares, which accounts for 20.22% of the issued shares, for a total consideration of HKD 25,000,000[82] - The company’s major shareholders include Hong Kong Mengzai Materials Co., Ltd. with 38,441,600 shares, representing 7.35%[81] - The company has no other significant interests or short positions in its shares or related securities as of June 30, 2022[80] Governance and Compliance - The company has complied with the principles of the corporate governance code, except for the absence of a separate chairman and CEO, which are currently held by the executive directors[97] - The company has adopted the standard code of conduct for securities trading by directors as per the listing rules[98] - The audit committee has reviewed the accounting principles and practices adopted by the group[101] - The audit committee approved the unaudited interim financial statements for the six months ending June 30, 2022[101] Future Outlook - The company anticipates challenges in the fiscal year 2022 due to ongoing uncertainties in the global economy and increased competition in the energy-saving solutions sector[75] - The company plans to explore opportunities in green industries, including HVAC energy-saving projects and potential investments in water treatment and energy storage[76] - The management is actively seeking ways to maintain business and enhance profitability to provide better returns to shareholders[77]
信能低碳(00145) - 2022 - 中期财报