Revenue Performance - For the six months ended June 30, 2023, the Group recorded revenue of approximately HK$20.2 million, a decrease of approximately HK$8.8 million or 30% compared to HK$29.0 million in the same period last year[16]. - Revenue from the Recruit Magazine business segment was approximately HK$17.0 million, representing an increase of approximately HK$3.2 million or 23% from the same period last year[5]. - Revenue from the Medical and Health Services business decreased significantly to approximately HK$0.4 million, a decline of 97% compared to approximately HK$12.5 million in the same period last year[6]. - E-Commerce revenue for the six months ended June 30, 2023, was approximately HK$2.9 million, an increase of approximately HK$0.2 million or 7% from the same period last year[7]. - Turnover for the six months ended June 30, 2023, was HK$20,223,000, a decrease of 30.1% compared to HK$29,010,000 in the same period of 2022[64]. - Total revenue for the six months ended June 30, 2023, was HK$20,223,000, a decrease of 30.1% compared to HK$29,010,000 in the same period of 2022[111]. - Revenue from external customers in Hong Kong for the six months ended June 30, 2023, was HK$20,223,000, down from HK$26,300,000 in the same period of 2022, representing a decline of 23.3%[120]. Financial Losses - The Group recorded a loss attributable to equity shareholders of approximately HK$9.7 million for the six months ended June 30, 2023, compared to a loss of approximately HK$2.7 million for the same period last year[23]. - Loss before income tax increased to HK$9,966,000 from HK$1,169,000 year-on-year, reflecting a significant decline in profitability[66]. - The company reported a loss before income tax of HK$9,662,000 for the six months ended June 30, 2023, compared to a loss of HK$2,661,000 in the same period of 2022[139]. - The loss for the period was HK$9,662,000, which is an increase from a loss of HK$2,661,000 in the same period of the previous year[78]. - Basic and diluted loss per share for the period was HK$2.13 cents, compared to HK$0.60 cents in the previous year[66]. Expenses and Costs - Selling and distribution costs increased from approximately HK$4.2 million in the first half of 2022 to approximately HK$6.2 million in the first half of 2023[21]. - Administrative expenses rose to approximately HK$16.4 million, an increase of HK$4.1 million or 33% compared to HK$12.3 million in the same period last year[22]. - Employee benefit expenses increased to HK$12,740,000 in 2023 from HK$11,943,000 in 2022, an increase of 6.7%[133]. - The company recognized a cost of inventories of HK$3,128,000 in direct operating costs for the six months ended June 30, 2023, down from HK$8,616,000 in 2022, a decrease of 63.7%[133]. - Unallocated corporate expenses for the six months ended June 30, 2023, were HK$8,343,000, an increase of 101.3% from HK$4,136,000 in the same period of 2022[113]. Assets and Liabilities - As of June 30, 2023, the Group had net current assets of approximately HK$49.4 million, down from HK$72.1 million as of December 31, 2022[24]. - The Group's current ratio was approximately 6.8 as of June 30, 2023, compared to 6.6 as of December 31, 2022[24]. - The Group's gearing ratio as of June 30, 2023, was 0.00, indicating no bank loans or other borrowings[25]. - Cash and cash equivalents decreased to HK$25,807,000 from HK$69,917,000, indicating a cash outflow situation[68]. - The total trade receivables as of June 30, 2023, amounted to HK$7,670,000, up from HK$5,627,000 as of December 31, 2022, indicating a growth in receivables[154]. - The total trade payables as of June 30, 2023, were HK$267,000, a decrease from HK$1,862,000 as of December 31, 2022, indicating improved payment management[156]. Investments and Capital - The company invested in three securities as of June 30, 2023, compared to two securities as of December 31, 2022[32]. - The company raised approximately HK$103.6 million from the placing of 74,000,000 shares at HK$1.40 per share, intended for general working capital and future business opportunities[38]. - The company plans to revise the use of unutilized net proceeds, reducing the allocation for potential investment opportunities from approximately HK$82 million to HK$49 million, while allocating approximately HK$33 million for general working capital[46]. - The company committed to invest approximately HK$2.4 million in a concert as of June 30, 2023, with no significant contingent liabilities reported[54][60]. - On April 3, 2023, the company entered into a share subscription agreement to invest approximately HK$16 million in Aurora Medical Technology (HK) Corp. Limited, acquiring a 45% equity interest[55]. - The investment in Aurora Medical Technology is seen as having significant potential due to the favorable growth prospects in the global medical and healthcare market, particularly in China[55]. Share Capital and Options - The total issued shares of the company increased to 455,534,000 shares as of June 30, 2023, from 446,614,000 shares as of December 31, 2022[37]. - A total of 8,920,000 share options were exercised during the six months ended June 30, 2023, with 13,380,000 options lapsing, indicating active participation in the share option scheme[160]. - The company granted a total of 22,300,000 share options on January 22, 2021, with an exercise price of HKD 0.38 per share[196]. - As of June 30, 2023, there were no unexercised share options remaining[196]. - The company approved a ten-year Share Award Scheme on December 28, 2022, aimed at recognizing and incentivizing selected employees[199]. Cash Flow and Liquidity - Cash and cash equivalents at the beginning of the period were HK$69,917,000, down from HK$89,194,000 at the beginning of the same period in 2022[74]. - Cash and cash equivalents at the end of the period were HK$25,807,000, significantly lower than HK$82,895,000 at the end of June 2022[74]. - Net cash used in operating activities was HK$22,794,000, a significant increase from HK$420,000 in the same period last year[72]. - For the six months ended June 30, 2023, the net decrease in cash and cash equivalents was HK$44,110,000, compared to a decrease of HK$6,299,000 in the same period of 2022[74]. Related Party Transactions - Amounts due from related parties included HK$100,000 from Kingkey Management Limited, while amounts due to related parties included HK$0 from Kingkey Enterprise Hong Kong Limited, which had a balance of HK$2,014,000 as of December 31, 2022[175]. - The Group's related party transactions included professional fees and marketing expenses, with all service charges determined at market rates[172]. - The remuneration of key management personnel is determined by the remuneration committee based on individual performance and market trends[178]. Other Financial Information - The Group recognized HK$584,000 of right-of-use assets and lease liabilities upon entering a new lease agreement for office equipment on January 1, 2023[75]. - The Group's accumulated loss increased to HK$198,609,000 as of June 30, 2023, from HK$184,543,000 at the same date in 2022[81]. - The Group's investment revaluation reserve increased by HK$96,259,000 during the period[78]. - The Group has three reportable and operating segments: advertising, sale of medical and health products, and e-commerce[104]. - The application of new or amended HKFRSs did not result in significant changes to the Group's accounting policies or financial statements for the current and prior periods[99].
律齐文化(00550) - 2023 - 中期财报