Financial Performance - Revenue for the six months ended June 30, 2023, was RMB 261,641,000, representing an increase of 32.8% compared to RMB 197,059,000 in the same period of 2022[16]. - Gross profit for the same period was RMB 33,355,000, up from RMB 26,963,000, indicating a growth of 23.5%[16]. - Loss before tax increased to RMB 18,710,000 in 2023 from RMB 13,514,000 in 2022, reflecting a rise of 38.5%[16]. - The loss for the period attributable to owners of the parent was RMB 23,133,000, compared to RMB 15,230,000 in 2022, marking a 52.1% increase[16]. - Basic and diluted loss per share for the six months ended June 30, 2023, was (19.73) RMB cents, compared to (14.32) RMB cents in 2022[18]. - The Group recorded a net loss of approximately RMB 19.3 million for the Period, compared to a net loss of approximately RMB 14.1 million for the same period in 2022[33]. - Loss for the period was RMB 19,327,000, compared to a loss of RMB 14,096,000 in the prior year, reflecting a 37.5% increase in losses[188]. - Loss attributable to owners of the parent was RMB 23,133,000, compared to RMB 15,230,000 in the previous year, marking a significant increase in losses[188]. - Total comprehensive loss for the period was RMB (17,963,000), down from RMB (27,674,000) in the previous year, reflecting a reduction of 34.9%[192]. Operational Insights - The company is engaged in network system integration, providing network infrastructure solutions and smart office software solutions[3]. - The interim report indicates ongoing challenges with increasing losses, necessitating strategic adjustments moving forward[15]. - The company continues to explore market expansion opportunities and new technology developments to enhance its service offerings[15]. - Future outlook includes a focus on improving operational efficiency and potentially diversifying revenue streams through new product offerings[15]. - The Group's smart office software solutions and PropTech solutions recorded stable growth, driven by increased demand for smart office devices[32]. - The Group aims to maintain stable development in its IT infrastructure system integration and smart office software solution businesses, focusing on digital transformation and customer needs[90]. - The Group aims to continue developing integrated smart office solutions to meet corporate needs in areas such as operational efficiency and carbon reduction[93]. - The Group plans to expand its R&D team and enhance the construction of its R&D center in Xi'an to provide more diversified products and services[93]. - The Group is establishing strategic partnerships with cloud services and technology giants to enhance its market position[94]. Financial Position - Current ratio decreased to 1.1 times as of 30 June 2023, down from 1.3 times as of 31 December 2022[26]. - Gearing ratio increased to 19.6% as of 30 June 2023, compared to 12.7% as of 31 December 2022[26]. - Total assets increased to approximately RMB 792.2 million as of 30 June 2023, up from approximately RMB 746.4 million as of 31 December 2022[26]. - Cash and cash equivalents (excluding pledged deposits) rose to approximately RMB 78.2 million as of 30 June 2023, compared to approximately RMB 59.4 million as of 31 December 2022[26]. - Total equity decreased to RMB 302,130,000 from RMB 320,093,000 at the end of 2022, a reduction of 5.6%[197]. - Interest-bearing bank and other borrowings rose to RMB 101,022,000 from RMB 59,574,000 at the end of 2022, an increase of 69.6%[194]. - As of June 30, 2023, total non-current assets increased to RMB 311,730,000 from RMB 250,761,000 at the end of 2022, marking a growth of 24.3%[194]. - Current assets decreased to RMB 480,498,000 from RMB 495,651,000 at the end of 2022, a decline of 3.1%[194]. - Net current assets were RMB 58,499,000, down from RMB 113,031,000 at the end of 2022, indicating a decrease of 48.2%[197]. Governance and Management - The roles of chairman and CEO are held by the same individual, which deviates from the Corporate Governance Code, but the Board believes this facilitates business strategy execution[153]. - The Audit Committee consists of three independent non-executive Directors and convened one meeting during the review period[159]. - The Company has complied with the principles and applicable code provisions of the Corporate Governance Code throughout the six months ended June 30, 2023, with noted deviations[153]. - The company appointed Ms. Chung, Elizabeth Ching Yee as a non-executive Director effective January 3, 2023[145]. - Mr. Lu, Brian Yong Chen resigned as independent non-executive Director effective January 31, 2023[145]. - Ms. Tin Yat Yu Carol was appointed as vice-chairman of the company effective June 15, 2023[146]. - The company appointed Mr. Hon Ming Sang as independent non-executive Director and chairman of the Compensation and Benefits Committee effective January 31, 2023[171]. Shareholder Information - As of June 30, 2023, Mr. Chan Sek Keung, Ringo held a 14.51% interest in the Company, while Ms. Tin Yat Yu, Carol held a 15.50% interest[105]. - As of June 30, 2023, the total number of issued shares of the Company was 117,240,000 shares[110]. - The company did not declare any interim dividend for the six months ended June 30, 2023, consistent with the previous year[147]. - The total number of shares available for issue under both the Old and New Share Option Schemes is 6,924,600, representing approximately 5.91% of the total issued shares as of June 30, 2023[122]. - The New Share Option Scheme was approved by shareholders on June 23, 2021[118]. Acquisitions and Investments - The acquisition of Sino Profit Trading Limited was completed on June 8, 2023, making it an indirect wholly-owned subsidiary of the Company, with a total consideration of HK$87,900,000[89]. - The acquisition of all shares of Huaying Trading Co., Ltd. was completed on June 8, 2023, for a total consideration of HKD 87,900,000[91][92]. - As of June 30, 2023, the Group had outstanding capital commitments of approximately RMB 7.4 million related to the acquisition of a 30% interest in an unincorporated joint venture[69][76].
威讯控股(01087) - 2023 - 中期财报