Financial Performance - For the six months ended June 30, 2022, the company reported a revenue of HK$0, compared to HK$1,070,000 in the same period of 2021, indicating a significant decline[9]. - The gross profit for the period was HK$94,000, down from HK$323,000 in the previous year, reflecting a decrease of approximately 71.0%[9]. - The loss from operations was HK$14,784,000, an improvement from a loss of HK$20,941,000 in the prior year, showing a reduction of about 29.0%[9]. - The loss before tax was HK$14,871,000, compared to HK$21,136,000 in the same period last year, indicating a decrease of approximately 29.9%[9]. - The total comprehensive loss for the period was HK$7,514,000, compared to HK$4,551,000 in the previous year, representing an increase of about 65.0%[9]. - The loss attributable to owners of the company was HK$22,385,000, a slight improvement from HK$25,687,000 in the same period of 2021, reflecting a decrease of approximately 12.0%[9]. - Basic and diluted loss per share was HK$0.07, compared to HK$0.10 in the previous year, indicating a reduction of 30.0%[9]. - The company reported a total comprehensive loss of HK$22,330,000 for the six months ended June 30, 2022, compared to a loss of HK$25,685,000 for the same period in 2021, reflecting an improvement of about 13.8%[13]. - The Group reported a loss for the period of approximately HK$14,854,000, compared to a loss of approximately HK$21,120,000 in the same period of 2021, representing a decrease in loss of about 29%[50]. Cash Flow and Assets - The company reported a net cash used in operating activities of HK$7,256,000 for the six months ended June 30, 2022, compared to HK$10,156,000 for the same period in 2021, showing an improvement of approximately 28.5%[16]. - Cash and cash equivalents at the end of the period were HK$15,701,000, a decrease from HK$17,059,000 at the end of June 30, 2021, reflecting a decline of about 8.0%[16]. - As of June 30, 2022, the company's net assets decreased to HK$442,618,000 from HK$465,003,000 as of December 31, 2021, representing a decline of approximately 4.8%[11]. - The total equity attributable to owners of the company was HK$440,977,000 at June 30, 2022, down from HK$463,307,000 at December 31, 2021, indicating a decrease of about 4.8%[11]. - The Group's total liabilities were HK$217,395,000 as of June 30, 2022, compared to HK$209,751,000 at the end of 2021[35]. - The Group had an outstanding shareholder's loan of HK$122.2 million as of June 30, 2022, compared to HK$114.5 million as of December 31, 2021[109]. - The Group had no borrowings as of June 30, 2022[109]. - The Group's gearing ratio as of June 30, 2022, was approximately 49.12%, an increase from 45.11% as of December 31, 2021[109]. Strategic Initiatives - The company is focusing on enhancing its operational efficiency and exploring new market opportunities to drive future growth[7]. - The management is committed to ongoing research and development of new products and technologies to strengthen its market position[7]. - The company is evaluating potential strategic partnerships and acquisitions to expand its market presence and capabilities[7]. - The Group aims to improve battery quality and technology to capture the electric vehicle market[73]. - The Group is exploring strategic alliances and partnerships to enhance technology in high-performance electrical systems and battery technologies[73]. - The Group remains confident in the automotive market, particularly in the PRC, which is the world's largest automotive market[79]. - The Group's expertise in advanced battery technology may drive business growth and generate new revenue streams[79]. - The Board believes that collaboration opportunities in advanced battery technology will be beneficial for the Group's business development[79]. Employee and Operational Metrics - Staff costs, including directors' emoluments, decreased to HK$7,913,000 in 2022 from HK$9,848,000 in 2021, reflecting a reduction of approximately 20%[47]. - The Group had a total of approximately 50 employees as of June 30, 2022, down from 60 employees as of December 31, 2021[113]. - Total staff costs, including Director's remuneration, were approximately HK$7.9 million during the Period, down from approximately HK$9.8 million in the same period of 2021[113]. - The Group's lease interests decreased from HK$195,000 in 2021 to HK$87,000 in 2022, reflecting a decline of approximately 55%[39]. Shareholding and Corporate Governance - Sun East LLC holds 2,673,071,189 shares, representing 13.13% of the issued share capital as of June 30, 2022[87]. - The company has outstanding share options, with Feng Rui holding options for 10,000,000 shares at an exercise price of HK$0.108, expiring on September 5, 2023[95]. - The share option scheme currently in force was adopted on June 13, 2013, and allows for options to be granted to directors and employees[101]. - The percentage of shareholding is calculated based on the total shares issued and does not account for any shares that may be allotted upon the exercise of options[92]. - The company continues to monitor its share options and director holdings as part of its corporate governance strategy[95]. - The Company has confirmed compliance with the Model Code for Securities Transactions by Directors during the period[118]. Regulatory and Compliance Issues - The Company has been suspended from trading since April 1, 2021, and will remain suspended until further notice[133]. - The Company is required to remedy the issues causing its trading suspension and comply with the Listing Rules to the satisfaction of the Stock Exchange[129]. - The Stock Exchange has set a deadline of September 30, 2022, for the Company to address the issues or face potential delisting[126]. - The Company is consulting professional advisers to address the Stock Exchange's concerns and fulfill the requirements under the Resumption Guidance[131]. - The interim results for the Group for the period are unaudited and have been reviewed by the auditor[123].
正道集团(01188) - 2022 - 中期财报