Financial Performance - The company reported a revenue of HKD 190,243,000 for the six months ended June 30, 2022, a decrease of 20.9% compared to HKD 240,569,000 in the same period of 2021[5]. - Gross profit for the same period was HKD 9,211,000, down 41.1% from HKD 15,615,000 year-on-year[5]. - The company incurred a loss before tax of HKD 20,689,000, compared to a loss of HKD 13,876,000 in the previous year, representing an increase in loss of 49.4%[5]. - The total comprehensive loss for the period was HKD 22,982,000, compared to HKD 14,954,000 in the same period last year, indicating a 53.7% increase in total comprehensive loss[5]. - Basic and diluted loss per share was HKD 3.05, compared to HKD 2.44 in the previous year, reflecting a 25.0% increase in loss per share[7]. - The company reported a total loss of HKD 13,329,000 during the period, contributing to an accumulated loss of HKD 900,045,000 as of June 30, 2022[16]. - The company reported a loss attributable to shareholders of HKD 18,653,000 for the six months ended June 30, 2022, compared to a loss of HKD 13,329,000 for the same period in 2021, representing a year-over-year increase in loss of approximately 40.5%[35]. Assets and Liabilities - Non-current assets increased to HKD 274,059,000 as of June 30, 2022, from HKD 250,798,000 at the end of 2021, marking a growth of 9.3%[9]. - Current assets totaled HKD 314,245,000, up from HKD 301,120,000 at the end of 2021, representing a 4.5% increase[9]. - The company's total liabilities were HKD 537,597,000, slightly up from HKD 533,249,000 at the end of 2021, indicating a marginal increase of 0.7%[11]. - The company’s total liabilities exceeded its current assets by approximately HKD 223,352,000 as of June 30, 2022[21]. - The total trade and other receivables amounted to HKD 194,783,000 as of June 30, 2022, compared to HKD 181,054,000 as of December 31, 2021, indicating an increase of approximately 7.6%[38]. - Trade and other payables totaled HKD 108,892,000 as of June 30, 2022, down from HKD 138,054,000 as of December 31, 2021[46]. - Interest-bearing borrowings amounted to approximately HKD 210.7 million, up from HKD 159.9 million as of December 31, 2021, resulting in a capital debt ratio of 35.8%[62]. - The net current liabilities were approximately HKD 223.4 million, with a current ratio of 0.58[62]. Cash Flow and Financing - The cash flow from operating activities for the six months ended June 30, 2022, was a net outflow of HKD 16,661,000, compared to a net inflow of HKD 15,635,000 for the same period in 2021[18]. - The company’s financing activities generated a net cash inflow of HKD 51,407,000 for the six months ended June 30, 2022, compared to HKD 8,252,000 for the same period in 2021[18]. - New bank loans obtained during the interim period amounted to HKD 50,833,000, compared to zero in the same period of 2021[48]. - The company is in discussions with bankers to secure necessary financing to meet its operational and financial needs[21]. - The company plans to continue seeking debt and equity financing to improve its working capital and cash flow situation[70]. Operational Highlights - The company experienced a significant decline in revenue from LED lighting, which dropped to HKD 1,874,000 from HKD 25,619,000, a decrease of 92.7% year-over-year[27]. - The group's revenue decreased in the first half of 2022, primarily due to business disruptions caused by the pandemic and related lockdown measures, leading to a reduction in PCB product orders and a decline in LED business revenue[74]. - Single-sided PCB revenue was HKD 35,184,000, accounting for 18.5% of total revenue, while double-sided PCB revenue was HKD 142,542,000, representing 74.9% of total revenue[57]. - Multi-layer PCB revenue decreased by 39.9% to HKD 10,643,000, and LED business revenue dropped by 91.6% to HKD 1,874,000[57]. - The LED division confirmed revenue of approximately HKD 1.9 million from lighting projects in Jiangsu Province during the first half of 2022[76]. Employee and Management Information - Total employee costs decreased to HKD 23,401,000 in the first half of 2022 from HKD 35,152,000 in the same period of 2021, reflecting a reduction of about 33.4%[30]. - The group employed approximately 267 employees as of June 30, 2022, a decrease from 448 employees as of December 31, 2021[66]. - The company’s management compensation for the six months ended June 30, 2022, was HKD 1,477,000, slightly up from HKD 1,440,000 in the previous year[56]. Corporate Governance and Compliance - The company confirmed compliance with the corporate governance code during the reporting period, with some deviations noted regarding the distribution of management accounts to the board[100]. - All current directors have confirmed compliance with the standard code for securities trading by directors during the six months ending June 30, 2022[101]. - The audit committee consists of three independent non-executive directors, with Dr. Lu Hailin serving as the chairman[103]. - The audit committee reviewed the unaudited financial statements for the six months ending June 30, 2022, and confirmed compliance with applicable accounting standards and legal requirements[103]. Share Capital and Options - The weighted average number of ordinary shares for calculating basic and diluted loss per share increased to 610,789,000 in 2022 from 545,304,000 in 2021 due to a share consolidation[35]. - The old share option scheme, established in June 2006, has not been able to grant new options since its expiration in June 2016, but previously granted options remain valid[86]. - As of the report date, there are 4,558,930 unexercised share options under the old scheme, representing 0.68% of the company's existing issued share capital[87]. - The new share option plan allows for the issuance of up to 90,225,766 pre-consolidation shares, equivalent to 18,045,153 post-consolidation shares, representing 10% of the issued shares as of August 19, 2016[90]. - The maximum allocation for any eligible participant within a 12-month period is capped at 1% of the issued shares, while major shareholders or independent non-executive directors are limited to 0.1%[90]. - The updated plan allows for the issuance of up to 271,823,697 pre-consolidation shares, equivalent to 54,364,739 post-consolidation shares, also representing 10% of the issued shares as of June 22, 2020[91]. - The exercise price for options must be at least the highest of the closing price on the grant date, the average closing price over the five trading days prior to the grant date, or the par value of the shares[91]. - The company has not purchased, redeemed, or sold any of its own listed securities during the six months ending June 30, 2022[97].
中华银科技(00515) - 2022 - 中期财报