Financial Performance - The company recorded a profit attributable to owners of approximately HKD 12,913,000 for the period ended June 30, 2022, a decrease from HKD 84,223,000 for the same period last year, primarily due to a reduction in gross profit and interest income from deferred consideration[21]. - Basic earnings per share for the review period were HKD 0.0303, compared to HKD 0.1975 for the previous period[22]. - Revenue for the review period was approximately HKD 166,925,000, representing a decrease of 3.6% compared to the previous year, with 85.0% of revenue coming from the printed circuit board business[24]. - Gross margin decreased to 4.9%, down from approximately 15.5% in the previous year, due to pricing pressure and inflation[25]. - The company reported a net loss from foreign exchange of approximately HKD 26,839,000, compared to HKD 2,594,000 in the previous year, primarily due to the depreciation of the Renminbi[29]. - The company experienced a decrease in gross profit of approximately HKD 18,653,000, from HKD 26,890,000 in the previous year to HKD 8,237,000 in the review period[21]. - The company reported a net fair value loss of approximately HKD 9,894,000 on investments measured at fair value through profit or loss, compared to a gain of HKD 4,449,000 in the previous year[26]. - The company reported a loss of HKD 16,955,000 in other income or losses, compared to a gain of HKD 1,811,000 in the previous year[135]. - Profit before tax decreased to HKD 30,835,000, down 73.0% from HKD 114,341,000 in the prior year[135]. - Net profit for the period was HKD 12,908,000, a decline of 84.7% compared to HKD 84,197,000 in 2021[135]. - Total comprehensive income for the period was a loss of HKD 12,829,000, compared to a gain of HKD 109,561,000 in the previous year[138]. Revenue Breakdown - The geographical breakdown of revenue showed that China accounted for 83.4%, the United States 5.6%, South Korea 2.3%, Taiwan 2.0%, and other global regions 6.7%[24]. - Revenue from the printed circuit board (PCB) business increased by 7.6% to HKD 113.274 million, driven primarily by shipments to China, which accounted for 91.7% of total revenue[70]. - Surface treatment business revenue decreased by 37.9% to approximately HKD 19.963 million, with 53.0% of shipments directed to China[72]. - Revenue from customized electroplating machinery and other industrial machinery contracts was HKD 133,237,000, down from HKD 137,420,000 year-on-year[167]. - Revenue from parts sales of electroplating machinery increased to HKD 6,374,000 from HKD 3,542,000, showing a growth of 80.5%[167]. - The geographical revenue breakdown shows significant growth in China, with revenue rising to HKD 139,296,000 from HKD 82,267,000, an increase of 69.2%[171]. Expenses and Losses - The company indicated an increase in expected credit loss provisions by approximately HKD 35,403,000 during the review period[21]. - Expected credit loss under the impairment model for deferred consideration was HKD 45,150,000, compared to HKD 8,634,000 in the previous period[51]. - The company recognized an expected credit loss of approximately HKD 45,150,000 for the six months ending June 30, 2022, compared to HKD 8,634,000 for the same period in 2021[190]. - The company incurred a tax expense of HKD 3,728,000 for the six months ended June 30, 2022, compared to HKD 76,162,000 in the previous year[178]. - Deferred tax expense for the period was HKD 14,199,000, compared to a tax credit of HKD 46,018,000 in the previous year[178]. Cash Flow and Assets - The company reported a net cash outflow from operating activities of HKD 7,387,000 for the six months ended June 30, 2022, compared to an outflow of HKD 32,666,000 in the same period last year[154]. - Cash and cash equivalents at the end of the period were HKD 321,761,000, a decrease from HKD 1,154,647,000 at the end of the previous year[156]. - The company generated cash inflow from financing activities of HKD 54,396,000, compared to an outflow of HKD 4,407,000 in the previous year[156]. - The company reported a significant decrease in cash flow from investment activities, with a net cash outflow of HKD 382,755,000 due to fair value investments[154]. - The company's total assets decreased to HKD 1,242,720,000 from HKD 1,781,284,000 at the end of 2021[147]. - The company's equity attributable to owners decreased to HKD 1,297,798,000 from HKD 1,319,202,000 at the end of 2021[150]. Investments and Financing - The company has invested in various debt instruments and listed securities to improve the average return rate of its funds[83]. - The company’s investment portfolio primarily consists of blue-chip companies, with over 50% of the fair value of investments attributed to a leading telecommunications service provider in China[198]. - The company anticipates that the majority of its investments will be realized within the next twelve months, classifying them as current assets[198]. - The company has received a guarantee of HKD 200,000,000 from a related party for the repayment of debts, which is included in the financial statements as of December 31, 2021, and June 30, 2022[187]. - The group provided an unsecured revolving loan of HKD 130 million to Gao Xin Financial Group, with an average interest rate of 5% per annum[59]. - The company’s loan receivables as of June 30, 2022, totaled HKD 44,151,000, a decrease from HKD 56,837,000 as of December 31, 2021[194]. Corporate Governance - The company has complied with the corporate governance code, with some deviations regarding the roles of the chairman and CEO[109]. - The chairman and CEO roles are currently held by the same individual, which the board believes enhances leadership effectiveness[114]. - The audit committee consists of three independent non-executive directors, ensuring oversight of financial reporting and internal controls[116]. - The remuneration committee is responsible for establishing executive director remuneration policies and evaluating their performance[120]. - The nomination committee regularly reviews the board's structure and composition, making recommendations for changes to assist in overall strategy formulation[121]. - The company’s chairman or managing director is not required to retire by rotation, which deviates from the corporate governance code[115]. Dividends and Shareholder Information - The company announced an interim dividend of HKD 0.01 per share for the six months ending June 30, 2022, consistent with the previous year[98]. - The company declared a final dividend of HKD 0.02 per share for the year ending December 31, 2021, totaling approximately HKD 8,529,000, and an interim dividend of HKD 0.01 per share for the six months ending June 30, 2022, amounting to about HKD 4,265,000[183][185]. - Major shareholders include Medusa with 48,520,666 shares (11.38%), J & A with 19,400,000 shares (4.55%), and 佳帆 with 201,995,834 shares (47.37%) as of June 30, 2022[105].
亚洲联网科技(00679) - 2022 - 中期财报