Revenue and Profitability - Revenue for the six months ended December 31, 2022, was HK$52,992,000, a decrease of 15.8% compared to HK$62,870,000 in the previous period[5] - Gross profit for the same period was HK$30,141,000, down 17.3% from HK$36,432,000 in the previous period[5] - Profit for the period increased to HK$4,199,000, representing a 25.8% increase from HK$3,337,000 in the previous period[8] - Total comprehensive income for the period was a loss of HK$4,862,000, compared to a gain of HK$4,924,000 in the previous period[8] - Basic and diluted earnings per share were HK1.61 cents, slightly up from HK1.54 cents in the previous period[8] - Profit before taxation for the six months ended December 31, 2022, was HK$4,245,000, an increase of 19.7% compared to HK$3,545,000 in 2021[18] - The segment result for the technology segment was HK$3,333,000 for the six months ended December 31, 2022, down from HK$6,780,000 in the same period of 2021, reflecting a decrease of approximately 50.9%[44] - Profit attributable to owners of the Company for the six months ended December 31, 2022, was HK$4,199,000, up from HK$3,337,000 in 2021, representing an increase of approximately 25.9%[56] Cash Flow and Financial Position - Cash and cash equivalents decreased to HK$72,646,000 from HK$108,260,000 as of June 30, 2022[11] - Total assets less current liabilities amounted to HK$129,703,000, down from HK$135,672,000 as of June 30, 2022[11] - Net assets decreased to HK$128,417,000 from HK$133,279,000 as of June 30, 2022[11] - Net cash used in operating activities was HK$28,907,000, significantly higher than HK$4,392,000 in the previous year[18] - Cash and cash equivalents at the end of the period were HK$72,646,000, down from HK$102,169,000 at the end of the previous period[18] - The Group incurred finance costs of HK$35,000, a decrease of 90.1% from HK$352,000 in the previous year[18] - The repayment of loans to third parties amounted to HK$5,971,000, slightly lower than HK$6,135,000 in the previous year[18] - The Group's cash used in investing activities was HK$3,481,000, a decrease from HK$10,563,000 in the previous year[18] - The group maintained liquid assets of approximately HK$73 million as of December 31, 2022, down from HK$108 million on June 30, 2022[195] - Current assets were approximately HK$140 million, while current liabilities amounted to approximately HK$61 million, resulting in net current assets of approximately HK$79 million[195] - The group's gearing ratio was 2.7% as of December 31, 2022, compared to zero on June 30, 2022, indicating a shift towards leveraging for business expansion[195][198] Revenue Breakdown - Revenue from technology system sales, including software licensing, was HK$21,967,000, down 17.5% from HK$26,513,000 in the previous year[38] - Revenue from installation and maintenance services decreased to HK$20,468,000, a decline of 15.0% from HK$24,168,000 in 2021[38] - Total revenue for the Group was HK$52,992,000, representing a decrease of 15.8% compared to HK$62,870,000 in the same period last year[38] - Total revenue for the six months ended December 31, 2022, was HK$52,992,000, a decrease from HK$62,870,000 in the same period of 2021, representing a decline of approximately 15.7%[41] - The Group reported total revenue of approximately HK$53 million for the six months ended 31 December 2022, a decrease of approximately 15.9% compared to approximately HK$63 million in the previous period, primarily due to an 11.9% devaluation of the pound sterling[105] Expenses and Cost Management - Distribution costs decreased to HK$11,793,000 from HK$12,901,000 in the previous period, reflecting a reduction of 8.6%[5] - General and administrative expenses decreased by approximately 19% to approximately HK$17 million for the six months ended December 31, 2022, down from approximately HK$21 million in 2021, due to reduced administrative staff costs and legal fees[108] - Key management personnel remuneration for the six months ended December 31, 2022 totaled approximately HK$3.137 million, down from approximately HK$5.543 million in the previous period[101] Asset Management - As of December 31, 2022, the carrying value of property, plant, and equipment was HK$33,846,000, down from HK$38,811,000 as of July 1, 2022, indicating a decrease of approximately 12.8%[61] - The Group's finished goods inventory was HK$11,223,000 as of December 31, 2022, an increase of 7.3% from HK$10,463,000 as of June 30, 2022[70] - The Group's total trade and other receivables reached HK$24,242,000 as of December 31, 2022, compared to HK$23,837,000 as of June 30, 2022, reflecting a slight increase of 1.7%[70] - The Group's trade receivables amounted to HK$12,556,000, a decrease of 5.3% from HK$13,261,000 as of June 30, 2022[70] - The ageing analysis of trade receivables showed that HK$12,059,000 (96.0%) were within 0-60 days past due as of December 31, 2022, compared to HK$10,658,000 (80.5%) as of June 30, 2022[72] Investments and Fair Value - The company reported a fair value gain on financial assets of HK$3,153,000 for the period[5] - The Group recorded an overall fair value gain on financial assets at fair value through profit or loss of approximately HK$4.3 million during the period, attributed to changes in market sentiment on certain stocks[114] - As of December 31, 2022, the fair value of listed equity investments in Hong Kong classified as financial assets at fair value through profit or loss amounted to approximately HK$11 million, consisting of two equity securities listed on the main board of The Stock Exchange of Hong Kong Limited[115] - The Group held 5,700,000 shares in Yuan Heng Gas Holdings Limited, recording an accumulated unrealized loss of HK$1,881,000 as of December 31, 2022[122] - The Group held 180,000 shares in STAR CM Holdings Limited, with an accumulated unrealized gain of HK$4,293,000 as of December 31, 2022[129] Strategic Initiatives and Future Outlook - The company is focusing on R&D to support Cloud and IoT solutions, aiming to develop a competitive advantage despite challenges from the Ukraine conflict[134] - The Multitone i-Message™ platform has been successfully migrated to a Cloud computing instance, leading to increased sales in the UK public sector healthcare[136] - The new Cloud-optimized service architecture for the Multitone i-Message™ platform, under development as "Aurora," is a major focus for R&D[137] - The company is investing in the development of the Multitone Digital Alerter ("MDA"), which will feature an e-ink display, rapid charging, two-way communication, and is scheduled for sale release towards the end of 2023[171] - The management team faces challenges from component shortages, supply chain interruptions, and rising costs due to the ongoing conflict in Ukraine and predicted global economic slump[168][172] Loan Management and Credit Policy - The company maintains a credit assessment process for loans, which includes verifying the identity and financial status of borrowers and guarantors[155][160] - All loans are made using idle funds and are only granted to individuals known to the directors of the subsidiary[154][155] - The company has established procedures for handling delinquent loans, including sending demand letters and potentially taking legal action if necessary[165] - The company’s PRC directors maintain personal contact with borrowers and remind them of repayment obligations one month before due dates[161]
看通集团(01059) - 2023 - 中期财报