Financial Performance - Revenue for the six months ended June 30, 2023, was HKD 111,077,000, a decrease of 41.7% compared to HKD 190,243,000 for the same period in 2022[6] - Gross profit for the same period was HKD 7,780,000, down 15.5% from HKD 9,211,000 in 2022[6] - The company reported a loss before tax of HKD 13,154,000, an improvement from a loss of HKD 20,689,000 in the previous year, indicating a 36.2% reduction in losses[6] - Total comprehensive loss for the period was HKD 13,832,000, compared to HKD 22,982,000 in 2022, reflecting a 39.9% decrease[6] - Basic and diluted loss per share improved to HKD 1.85 from HKD 3.05 in the previous year, indicating a 39.3% improvement[7] - The company reported a loss of approximately HKD 13,134,000 for the six months ended June 30, 2023, compared to a loss of HKD 20,689,000 for the same period in 2022[17] - The group reported a loss attributable to shareholders of approximately HKD 12.4 million, reduced from HKD 18.7 million in 2022, mainly due to increased other income and reduced selling and administrative expenses[42] Assets and Liabilities - Non-current assets as of June 30, 2023, amounted to HKD 449,032,000, slightly up from HKD 447,053,000 at the end of 2022[8] - Current assets decreased to HKD 247,937,000 from HKD 258,327,000 at the end of 2022, a decline of 4.0%[8] - Current liabilities were HKD 655,926,000, down from HKD 666,743,000 at the end of 2022, showing a decrease of 1.3%[9] - The company’s net asset value decreased to HKD 6,926,000 from HKD 18,794,000 at the end of 2022, a decline of 63.1%[9] - The company’s total equity as of June 30, 2023, was HKD 33,294,000, a decrease from HKD 59,841,000 at the beginning of the year[13] - The total assets of the group as of June 30, 2023, were approximately HKD 696.9 million, compared to HKD 705.4 million as of December 31, 2022[43] - Interest-bearing borrowings amounted to approximately HKD 356.8 million as of June 30, 2023, up from HKD 315.9 million as of December 31, 2022, resulting in a capital debt ratio of approximately 51.2%[43] - The net current liabilities were approximately HKD 408.0 million as of June 30, 2023, with a current ratio of approximately 0.38[43] Cash Flow and Financing - The net cash outflow from operating activities was HKD 418,000, significantly improved from HKD 16,661,000 in the previous year[15] - The financing activities generated a net cash inflow of HKD 7,102,000, compared to HKD 51,407,000 in the previous year, with a notable issuance of convertible bonds amounting to HKD 15,000,000[15] - The company is in discussions with banks to secure necessary financing to meet operational and financial needs[17] - A shareholder has agreed to provide financial assistance for the next twelve months to support the company's ongoing operations[17] Revenue Breakdown - The revenue from single-sided PCBs was HKD 11,143,000, down 68.3% from HKD 35,184,000 in the previous year[19] - The revenue from the Chinese market was approximately HKD 98,284,000, a decrease of 41.6% compared to HKD 168,387,000 in the previous year[41] - The sales of single-sided PCB decreased by 68.3% to HKD 11,143,000, while double-sided PCB sales decreased by 32.1% to HKD 96,752,000[40] Employee and Operational Costs - Total employee costs decreased to HKD 12,008,000 in the first half of 2023 from HKD 23,401,000 in the same period of 2022, indicating a reduction of 48.7%[5] - The company is adjusting to challenges posed by the COVID-19 pandemic and global economic factors, implementing cost control measures and strategic pricing policies to attract more sales orders[57] Shareholder and Equity Information - The company did not declare any dividends during the interim period, consistent with the previous year[23][24] - The total issued share capital of the company as of June 30, 2023, is 669,415,394 shares[64] - The company aims to attract and retain talent through its share option plans to enhance business development[67] Projects and Future Plans - The company is developing a new production facility in Zhongshan, Guangdong, with a total construction area of 120,513.22 square meters and an estimated total construction cost of RMB 270 million[52] - Project A involves an investment of RMB 349.32 million for a new building with a total construction area of approximately 151,875.44 square meters, expected to generate an annual tax level of at least RMB 26.68 million within one year during the eight-year supervision period[54] - Project B involves an investment of RMB 571.17 million for a new building with a total construction area of approximately 248,333.45 square meters, expected to generate an annual tax level of at least RMB 40 million within one year during the eight-year supervision period[55] - The company is in the early planning stages for a third phase development project in Zhongshan, contingent on the full utilization of existing facilities and sufficient funding[53] Governance and Compliance - The audit committee consists of four independent non-executive directors, with Dr. Lu Hailin serving as the chairman[78] - The audit committee reviewed the unaudited financial statements for the six months ended June 30, 2023, and confirmed compliance with applicable accounting standards and legal requirements[78] - The company confirmed compliance with the corporate governance code during the reporting period, with some deviations noted[75] - All current directors confirmed compliance with the standard code for securities trading during the six months ending June 30, 2023[77]
中华银科技(00515) - 2023 - 中期财报