Revenue and Profitability - Revenue for the six months ended June 30, 2022, decreased by approximately 27.6% to approximately HK$23,224,000 compared to HK$32,081,000 in 2021[3]. - Gross profit increased by 155.8% to approximately HK$6,199,000, with the money lending operation earning gross profit of approximately HK$8,062,000, up from HK$5,451,000 in 2021[3]. - Loss attributable to owners of the Company for the period was approximately HK$40,992,000, an increase of approximately 99.7% from HK$20,522,000 in 2021[3]. - The apparel operation recorded a gross loss of approximately HK$1,863,000, improved from a loss of HK$3,028,000 in 2021[3]. - For the six months ended June 30, 2022, total revenue was HK$23,224,000, with HK$15,162,000 from apparel design, manufacturing, and trading, and HK$8,062,000 from money lending services[41]. - The segment loss before tax for the apparel segment was HK$10,250,000, while the money lending segment reported a loss of HK$7,395,000, resulting in a total loss before tax of HK$40,967,000[41]. - Revenue from the apparel operation decreased by approximately 43.1% to approximately HK$15,162,000 compared to HK$26,630,000 in 2021, significantly affected by reduced consumer activity[154]. - Revenue from the money lending operation increased by approximately 47.9% to approximately HK$8,062,000 compared to HK$5,451,000 in 2021[159]. Expenses and Losses - Administrative expenses increased significantly to HK$37,838,000 from HK$20,582,000 in 2021[7]. - Provision for expected credit loss on loans and interest receivables rose to HK$9,382,000 from HK$1,106,000 in 2021[7]. - Total comprehensive loss for the period was approximately HK$41,497,000, compared to HK$20,352,000 in 2021[10]. - Basic and diluted loss per share attributable to owners of the Company was HK(2.30) cents, compared to HK(1.21) cents in 2021[10]. - Selling and distribution expenses decreased by approximately 79.4% to HK$929,000 from HK$4,508,000 in 2021, mainly due to reduced transportation costs[171]. - Loss attributable to owners of the Company was approximately HK$40,992,000, an increase of approximately 99.7% from HK$20,522,000 in 2021, driven by decreased revenue from the apparel operation and increased provisions[175]. Cash Flow and Financial Position - For the six months ended June 30, 2022, the net cash used in operating activities was HK$26,346,000, a decrease from HK$54,961,000 in the same period of 2021[18]. - The net cash used in investing activities for the same period was HK$3,708,000, compared to HK$13,457,000 in 2021[18]. - The net cash generated from financing activities was HK$32,784,000, significantly higher than HK$5,054,000 in the previous year[18]. - Cash and cash equivalents at the end of the period increased to HK$17,879,000 from HK$15,087,000 in 2021[18]. - The company's cash and bank balances at the end of the period were HK$15,348,000, down from HK$78,547,000 at the beginning of the period[18]. - The current ratio improved to approximately 5.83 as of June 30, 2022, compared to 4.87 as of December 31, 2021[185]. - The total borrowings and lease liabilities amounted to approximately HKD 19,659,000 as of June 30, 2022, compared to HKD 7,954,000 as of December 31, 2021[188]. - The current margin loan payable decreased to HK$1,479,000 from HK$4,057,000 as of December 31, 2021, representing a reduction of approximately 63.6%[124]. Assets and Liabilities - Net assets decreased to HK$184,846,000 as of June 30, 2022, from HK$196,257,000 at the end of 2021[14]. - As of June 30, 2022, total assets amounted to HK$231,379,000, with segment assets of HK$46,567,000 for apparel and HK$176,028,000 for money lending services[44]. - The company experienced a significant increase in segment liabilities, with total liabilities reaching HK$46,533,000 as of June 30, 2022[44]. - Trade receivables as of 30 June 2022 amounted to HK$20,147,000, with an impairment loss of HK$435,000, resulting in a net trade receivable of HK$19,712,000[100][101]. - The total trade payables as of 30 June 2022 were HK$17,422,000, with significant amounts due within 0 to 30 days (HK$6,772,000) and 31 to 60 days (HK$2,807,000)[121]. - The Group's loans receivables as of 30 June 2022 were HK$151,953,000, with an impairment loss of HK$45,327,000, resulting in a net current loans receivable of HK$115,583,000[110][111]. Shareholder Information - The Board of Directors did not recommend the payment of any interim dividend for the reporting period[3]. - No dividends were paid or proposed during the six months ended June 30, 2022, consistent with the previous year[82]. - The total number of issued and fully paid ordinary shares increased to 1,790,267,378 as of June 30, 2022, up from 1,690,000,000 as of December 31, 2021[135]. - A total of 87,100,000 share options were granted at an exercise price of HK$0.278 per share, with an estimated fair value of approximately HK$8,638,000[140]. - Directors' emoluments increased significantly to HK$6,170,000 in 2022 from HK$2,245,000 in 2021, marking an increase of approximately 174.5%[139]. Compliance and Regulations - The financial statements are prepared in accordance with Hong Kong Accounting Standards 34, ensuring compliance with local regulations[26]. - The company has not indicated any major impact from the adoption of new and revised accounting standards on its interim financial statements[33]. - The Group did not incur any taxation under the British Virgin Islands and the Cayman Islands jurisdictions during the reporting period[77]. - The Hong Kong profits tax is calculated at a rate of 16.5%, with the first HK$2,000,000 of assessable profit taxed at 8.25%[79]. Market and Operational Insights - The company has not reported any significant changes in its business operations during the period[22]. - The company identified design, manufacturing, and trading of apparels and provision of money lending services as its reportable operating segments[36]. - The geographical location of external customers is based on their domicile, with a notable revenue contribution from Mainland China[60]. - Major customers contributing to over 10% of the group's revenue included Customer A with HK$5,666,000, Customer B with HK$3,219,000, and Customer C with HK$2,587,000[63].
天机控股(01520) - 2022 - 中期财报