Financial Performance - The Group recorded a loss of approximately US$2.2 million for the six months ended June 30, 2023, compared to a loss of approximately US$16.3 million in the same period of 2022, resulting in a loss per share of US0.19 cents[12]. - Revenue for the period was approximately US$3.6 million, an increase of approximately US$0.4 million from US$3.2 million in the same period of 2022, primarily due to a US$0.9 million increase in trading of PCB and AI materials[13]. - Gross profit decreased from approximately US$1.4 million in 2022 to approximately US$1.2 million in 2023, attributed to lower trading margins[15]. - The Group recorded a net loss of approximately US$2.2 million for the six months ended 30 June 2023, compared to a net current asset of approximately US$4.5 million, down from US$6.1 million as of 31 December 2022[37][41]. - Loss before tax for the period was $2,201,000, significantly improved from a loss of $16,321,000 in the previous year[184]. - Loss for the period attributable to owners of the Company was $2,059,000, compared to $14,725,000 in 2022, reflecting a reduction of 86%[186]. - Total comprehensive expense for the period was $2,958,000, down from $16,910,000 in the same period last year[186]. - Basic and diluted loss per share was $0.19, a significant improvement from $1.54 in the previous year[186]. Expenses and Costs - Administrative expenses decreased from approximately US$0.8 million to approximately US$0.5 million, mainly due to a reduction in staff costs[16]. - Finance costs for the period amounted to approximately US$0.5 million, down from approximately US$0.9 million in the same period of 2022, with no bank borrowings during the period[26]. - The increase in cost of sales was approximately US$0.6 million, driven by higher direct costs and sales expenses during the period[14]. - Market development and promotion expenses remained steady compared to the previous year, including consultancy fees and research and development costs[25]. Assets and Liabilities - As of June 30, 2023, total assets less current liabilities amounted to US$107,436,000, a decrease of 3.1% from US$110,980,000 as of December 31, 2022[189]. - Current assets decreased to US$8,599,000 from US$9,913,000, reflecting a decline of 13.2%[191]. - Net current assets were reported at US$4,483,000, down 26.2% from US$6,072,000 at the end of 2022[191]. - Non-current liabilities decreased significantly to US$8,609,000, a reduction of 38.2% from US$13,966,000[191]. - The company's net assets increased to US$98,827,000, up 1.9% from US$97,014,000[191]. - Share capital rose to US$44,240,000, an increase of 11.7% from US$39,597,000[191]. - Cash and bank balances decreased to US$280,000 from US$1,718,000, indicating a decline of 83.7%[191]. Cash Flow - For the six months ended June 30, 2023, the net cash generated from operating activities was a negative US$1,611,000, compared to a negative US$1,370,000 in the same period of 2022[196]. - The net cash used in investing activities remained unchanged at US$1,000 for both the six months ended June 30, 2023, and 2022[196]. - The net cash from financing activities decreased to US$688,000 in 2023 from US$2,630,000 in 2022, indicating a significant decline in financing inflows[196]. - The total cash and cash equivalents at the end of the period were US$280,000, a decrease from US$1,717,000 at the end of June 2022[196]. - The cash and cash equivalents at the beginning of the period were US$1,718,000, indicating a decrease in liquidity over the six months[196]. Investments and Future Plans - The Company aims to diversify its revenue by venturing into AI trading due to promising demand for AI applications and related devices[68][73]. - The Village Internet Project is seeking a soft launch in the second half of 2023, focusing on cost-effective solutions for stable connectivity in developing countries[77][79]. - The LPTV market remains challenging due to the shift towards online streaming platforms, prompting the Company to explore strategies to revitalize its offerings[75][78]. - There were no material acquisitions or disposals of subsidiaries, associates, or joint ventures during the period, and no future plans for material investment were disclosed[61]. Shareholder Information - The Company holds 58.65% of the issued shares, with Mr. Wong being the beneficial owner of 1,011,058,872 shares[85]. - As of June 30, 2023, CCH holds 916,281,730 shares, representing approximately 53.15% of the total issued shares[93]. - The convertible notes issued to CCH amount to US$12,000,000, convertible into 266,742,857 shares at a conversion price of HK$0.35 per share, representing approximately 15.47% of the issued shares[95]. - The total number of issued shares as of June 30, 2023, is 1,723,989,888 shares[93]. - The share option scheme was adopted on December 18, 2015, to incentivize contributions to the Group[98]. - The percentages of shareholdings are calculated based on the total number of issued shares as of June 30, 2023[99]. Governance and Compliance - The Audit Committee has reviewed the unaudited condensed consolidated financial statements for the period and recommended their adoption by the Board[175]. - The Company has maintained compliance with the Corporate Governance Code, except for the separation of the roles of chairman and chief executive[171]. - The Company has adopted a shareholder communication policy to enhance communication with shareholders and stakeholders[177]. - The Board approved the unaudited financial statements on August 30, 2023[176]. Risk Management - Management considers the impact of foreign exchange risk to be insignificant, as most assets and liabilities are denominated in US dollars[50]. - The effect of foreign exchange rate changes resulted in a loss of US$516,000 during the period, impacting overall cash position[196]. - The Group has taken measures to mitigate liquidity pressure, including refinancing debts and broadening income sources[38][41]. - The Directors believe the Group can continue as a going concern, supported by measures to ensure sufficient financial resources[200].
中播数据(00471) - 2023 - 中期财报