Revenue Performance - The Group's revenue increased by approximately 8.8% from approximately RMB127.1 million for the six months ended June 30, 2022, to approximately RMB138.2 million for the Interim Period[15]. - Revenue for the six months ended June 30, 2023, was RMB 138,247,000, an increase of 8.5% compared to RMB 127,083,000 for the same period in 2022[108]. - Revenue from PCBAs for telecommunication devices increased by approximately 10.3% to RMB76.1 million, up from RMB69.0 million in the prior year[31]. - Revenue from PCBAs for IoT products decreased by approximately 18.2% to RMB34.3 million, down from RMB41.9 million in the prior year[32]. - Revenue from PCBAs for automotive related devices surged by approximately 95.1% to RMB23.8 million, compared to RMB12.2 million in the same period last year[33]. - The Group recorded revenue from Financial Application Platform and Platform Maintenance Services of approximately RMB1.3 million during the Interim Period, compared to nil in the prior year[37]. - Revenue from Electronic Manufacturing Services (EMS) was RMB 136,903,000, up from RMB 127,083,000 in the previous year, reflecting a growth of 7.0%[193]. - The total revenue from platform maintenance services was RMB 133,000, which was newly introduced in the current reporting period[193]. Financial Losses - The Group's net loss increased from RMB2.9 million for the six months ended June 30, 2022, to RMB22.6 million in the Interim Period, primarily due to the financial technology business[15]. - Loss for the period was approximately RMB22.6 million, compared to a loss of approximately RMB2.9 million for the same period in 2022[60]. - The total comprehensive loss for the period was RMB 23,918,000, compared to a total comprehensive loss of RMB 1,246,000 in the previous year[111]. - The Group reported an impairment loss on intangible assets of RMB 14,671,000 during the six months ended June 30, 2023[184]. - The Group's total loss for the period was RMB 22,640,000, highlighting ongoing financial challenges[176]. Competition and Market Conditions - The Group is facing intense competition in the fintech and insurance-related market, which has slowed the development of its financial technology business[13]. - The economic recovery in China has been slower than expected, affecting consumer spending and overall market conditions[14]. - The Group's financial technology business development has been slower than anticipated due to external uncertainties and competition[13]. Strategic Focus and Investments - The Group plans to maintain cautious spending and expansion strategies to reduce financial risk amid a complex international environment and sluggish global economic growth[21]. - The Group will continue to focus on the development of electronic manufacturing services (EMS) and invest in in-house capabilities to secure more business opportunities[21]. - The Group aims to diversify its customer base and product offerings to broaden revenue sources and mitigate business risks[21]. - Following the sale of the target company, the Group will continue to focus on developing its EMS capabilities and invest in internal capabilities to align with the latest industry technology developments[24]. Financial Position and Assets - Net current assets were approximately RMB142.6 million as at 30 June 2023, with a current ratio increase from approximately 2.7 to 3.0[66]. - The gearing ratio was approximately 6.1% as of June 30, 2023, compared to 5.8% as of December 31, 2022, indicating a low level of bank and other borrowings[68][73]. - As of June 30, 2023, the Group's current assets net value was approximately RMB 142.6 million, with a current ratio increasing from approximately 2.7 to 3.0[71]. - The Group's bank borrowings were approximately RMB 5.3 million as of June 30, 2023, down from RMB 8.0 million as of December 31, 2022[72]. - As of June 30, 2023, total assets amounted to RMB 214,310,000, a decrease of 5.99% from RMB 227,985,000 as of December 31, 2022[113]. Expenses and Costs - Gross profit for the Interim Period was approximately RMB13.0 million, a decrease of 7.3% from RMB14.0 million in the corresponding period in 2022[39]. - Overall gross profit margin decreased from 11.0% in the prior year to 9.4% for the Interim Period[40]. - Administrative expenses increased to approximately RMB19.3 million, mainly due to increased operating costs for the Financial Application Platform and Platform Maintenance Services segment[55]. - Selling and distribution expenses slightly decreased to RMB 1,301,000 from RMB 1,343,000 year-over-year[108]. - Finance costs decreased to RMB 410,000 from RMB 585,000 year-over-year, reflecting a reduction of 30%[108]. Cash Flow and Financing Activities - For the six months ended June 30, 2023, the net cash used in operating activities was RMB (28,201,000), a significant decrease compared to RMB 47,293,000 generated in the same period of 2022[132]. - The company reported a net decrease in cash and cash equivalents of RMB 36,879,000 for the period, contrasting with a net increase of RMB 40,279,000 in the prior year[139]. - The payment of principal elements of lease liabilities decreased to RMB 1,916,000 from RMB 2,876,000, showing a reduction of 33.5%[139]. - The company paid dividends of RMB 3,600,000 to non-controlling shareholders during the period, which was not applicable in the previous year[139]. Regulatory and Compliance Matters - The company adopted new/revised HKFRSs effective from January 1, 2023, which may impact future financial reporting[157]. - The interim financial information is unaudited but has been reviewed by the audit committee, ensuring a level of oversight for the reported figures[147]. - The adoption of new/revised HKFRSs in the current period has no material impact on the Group's financial position and performance for the current and prior periods[159]. Segment Information - The Group's operating segments include the provision of EMS and Financial Application Platform and Platform Maintenance Services[168]. - Segment revenue for the six months ended June 30, 2023, was RMB 138,247,000, with a loss before tax of RMB 17,549,000[176]. - Major customers contributed a total revenue of RMB 121,859,000, accounting for approximately 77.2% of the Group's total revenue for the same period[181]. - The five largest customers accounted for a significant portion of revenue, indicating a reliance on key clients for financial performance[181].
信恳智能(01967) - 2023 - 中期财报