Financial Performance - Total revenue for the six months ended June 30, 2022, was HKD 44,578,000, a decrease of 34.8% compared to HKD 68,380,000 in the same period of 2021[9]. - Gross profit for the period was HKD 2,595,000, representing a gross margin of 5.8%[9]. - Operating loss for the six months was HKD 10,711,000, compared to an operating loss of HKD 2,666,000 in the prior year, indicating a significant increase in losses[9]. - The net loss attributable to the owners of the company for the period was HKD 11,622,000, compared to HKD 10,457,000 in the same period last year[12]. - The company reported a total comprehensive loss of HKD 11,752,000 for the six months ended June 30, 2022, compared to a total comprehensive loss of HKD 6,379,000 for the same period in 2021[17]. - The company reported a pre-tax loss of HKD 11,522 thousand for the six months ended June 30, 2022, compared to a loss of HKD 10,457 thousand in the previous year[31]. - The loss attributable to the company's owners increased by approximately 10.5% from about HKD 10.5 million in the previous period to about HKD 11.6 million in the current period[60]. - The company reported a basic and diluted loss per share of HKD 0.7 for the period, compared to HKD 1.0 in the previous year[9]. Revenue Breakdown - Customer contract revenue for the six months ended June 30, 2022, was HKD 43,297 thousand, a decrease of 36.7% from HKD 68,326 thousand in the same period of 2021[27]. - Telecommunications service revenue was HKD 43,297 thousand, down 36.7% from HKD 68,326 thousand year-on-year[31]. - Revenue from the telecommunications business fell by approximately 36.6% from about HKD 68,300,000 to about HKD 43,300,000, primarily due to a cautious pricing strategy and loss of several large contracts[75]. - The Hong Kong IT business generated revenue of approximately HKD 600,000, compared to about HKD 54,000 in the previous period, indicating growth since its launch[65]. Cash Flow and Assets - The company's cash and cash equivalents decreased to HKD 18,206,000 from HKD 30,663,000, reflecting a cash outflow during the period[15]. - Cash and cash equivalents decreased by HKD 12,398,000 during the six months ended June 30, 2022, compared to an increase of HKD 33,494,000 in the same period of 2021[20]. - The net cash used in operating activities was HKD 11,365,000 for the six months ended June 30, 2022, an improvement from HKD 19,493,000 in the prior year, reflecting a reduction of approximately 41.5%[20]. - The company had cash and cash equivalents of HKD 18,206,000 as of June 30, 2022, down from HKD 66,697,000 at the beginning of the year[20]. - Total assets as of June 30, 2022, were HKD 90,738,000, a slight decrease from HKD 95,409,000 as of December 31, 2021[15]. - Non-current assets in Hong Kong amounted to HKD 53,441 thousand as of June 30, 2022, slightly down from HKD 53,500 thousand at the end of 2021[33]. Liabilities and Equity - Current liabilities increased to HKD 29,872,000 from HKD 28,297,000, indicating a rise in short-term financial obligations[15]. - The company’s total equity attributable to owners decreased to HKD 54,962,000 as of June 30, 2022, from HKD 66,548,000 at the beginning of the year[17]. - The debt-to-asset ratio increased to approximately 10.4% from about 8.6% due to operating losses reducing net assets[81]. - Trade payables increased to HKD 8,457,000 as of June 30, 2022, compared to HKD 8,327,000 as of December 31, 2021[49]. Operational Challenges and Future Outlook - Future outlook remains cautious due to ongoing market challenges and operational losses[8]. - The company faced challenges due to the ongoing COVID-19 pandemic and geopolitical tensions, impacting operations primarily in Singapore and Hong Kong[57]. - The company plans to streamline operations by divesting underperforming business segments, particularly in the Chinese IT and distribution sector, which has not generated revenue since 2020[63]. - The company remains cautiously optimistic about overcoming challenges posed by COVID-19, as both Singapore and Hong Kong are gradually easing social restrictions[69]. Corporate Governance and Shareholder Information - The board of directors is committed to maintaining high standards of corporate governance, with a focus on shareholder value[104]. - The company did not recommend the payment of an interim dividend for the six months ended June 30, 2022, and 2021[40]. - As of June 30, 2022, the total trade payables amounted to HKD 8,457,000, compared to HKD 8,327,000 as of December 31, 2021, reflecting a slight increase of 1.56%[50]. - Beta Dynamic Limited owns over 50% of the company's issued share capital, qualifying it as the company's holding entity[90].
长城天下(00524) - 2022 - 中期财报