Financial Performance - For the six months ended September 30, 2022, the revenue was HK$4,858,000, a decrease of 53.8% compared to HK$10,503,000 for the same period in 2021[7]. - The gross profit for the six months ended September 30, 2022, was HK$790,000, down 6.4% from HK$844,000 in the corresponding period of 2021[7]. - The loss before income tax for the six months ended September 30, 2022, was HK$7,258,000, representing a 41.1% improvement compared to a loss of HK$12,378,000 in the same period of 2021[7]. - Total comprehensive expense for the period attributable to owners of the Company was HK$6,596,000 for the six months ended September 30, 2022, compared to HK$10,220,000 for the same period in 2021, indicating a 35.7% reduction[15]. - Basic loss per share for the six months ended September 30, 2022, was HK$0.47, an improvement from HK$0.78 in the corresponding period of 2021[15]. - The company reported a loss for the period of HK$3,644,000 for the three months ended September 30, 2022, compared to a loss of HK$6,382,000 in the same period of 2021, marking a 42.9% improvement[7]. - The total comprehensive expense for the period, net of tax, was HK$6,692,000 for the six months ended September 30, 2022, down from HK$12,137,000 in the same period of 2021, indicating a 44.0% decrease[11]. - The company reported a loss for the period of HK$ (6,317,000) for the six months ended September 30, 2022, compared to a loss of HK$ (10,535,000) in the same period of 2021[22]. - Loss attributable to owners for the six months ended September 30, 2022, was HK$6,317,000, an improvement from HK$10,535,000 in the same period of 2021, reflecting a reduction in loss of 40.5%[92]. - Basic loss per share for the six months ended September 30, 2022, was calculated at HK$0.00465, compared to HK$0.00777 for the same period in 2021, indicating a 40.5% improvement[92]. Revenue Breakdown - Total revenue for the six months ended September 30, 2022, was HK$10,023,000, a decrease from HK$20,286,000 in the same period of 2021, representing a decline of 50.5%[56]. - Hardware revenue for the six months ended September 30, 2022, was HK$1,274,000, down from HK$9,660,000 in the same period of 2021, indicating a decrease of 86.8%[56]. - Service revenue for the six months ended September 30, 2022, was HK$8,749,000, compared to HK$10,626,000 in the same period of 2021, reflecting a decline of 17.6%[56]. - The company reported a total revenue from contracts with customers of HK$4,858,000 for the three months ended September 30, 2022, compared to HK$10,503,000 in the same period of 2021, a decline of 53.8%[56]. - Revenue recognized at a point in time for the three months ended September 30, 2022, was HK$235,000, down from HK$4,857,000 in the same period of 2021, a decrease of 95.2%[56]. - Revenue recognized over time for the three months ended September 30, 2022, was HK$4,623,000, compared to HK$5,646,000 in the same period of 2021, reflecting a decline of 18.1%[56]. Expenses and Costs - Administrative expenses decreased to HK$9,317,000 for the six months ended September 30, 2022, down from HK$14,797,000 in the corresponding period of 2021, reflecting a 37.1% reduction[7]. - Research and development costs for the six months ended September 30, 2022, were HK$822,000, down from HK$1,211,000 in 2021, a decrease of 32.1%[88]. - Employee benefit expenses for the six months ended September 30, 2022, totaled HK$3,710,000, compared to HK$5,127,000 in 2021, reflecting a reduction of 27.6%[88]. - The Group is actively taking measures to control administrative costs, including human resources optimization and management remuneration adjustments[39]. Cash Flow and Assets - For the six months ended September 30, 2022, the company reported a net cash used in operating activities of HK$ (7,034,000), an improvement from HK$ (9,521,000) in the same period of 2021[26]. - The company generated net cash from investing activities of HK$ 7,557,000 for the six months ended September 30, 2022, compared to HK$ 1,785,000 in the prior year[26]. - Cash and cash equivalents at the end of the period were HK$ 7,254,000, down from HK$ 9,971,000 at the end of the previous year[29]. - The company had trade and other receivables of HK$ 14,041,000 as of March 31, 2022, which decreased to HK$ 11,000 as of September 30, 2022[21]. - The Group's cash and cash equivalents as of September 30, 2022, were reported at HK$ 2,080,000[126]. Liabilities and Equity - As of September 30, 2022, total assets amounted to HK$ 35,838,000, while total liabilities were HK$ 39,932,000, resulting in net liabilities of HK$ 4,094,000[21]. - The total liabilities per condensed consolidated statement of financial position as of September 30, 2022, were HK$39,932,000, down from HK$54,956,000 as of March 31, 2022, a decrease of 27.2%[67]. - The total equity attributable to owners of the company as of September 30, 2022, was HK$ 4,111,000, a decrease from HK$ 10,707,000 as of April 1, 2022[22]. - As of 30 September 2022, the Group's current liabilities exceeded its current assets by approximately HK$4,094,000, resulting in net liabilities of approximately HK$3,441,000[39]. - The Group's trade payables as of September 30, 2022, totaled HK$ 8,360,000, compared to HK$ 31,006,000 as of March 31, 2022, indicating a significant reduction[110]. Business Developments and Contracts - The Group signed a contract in October 2022 to provide multimedia short messaging services for a major PRC telecommunications carrier, which is expected to be profitable[44]. - The Group is diversifying into value-added services such as short messaging services for businesses, including banks[171]. - CITIC Cyber Security signed a contract to build an infrastructure for real-name system management based on eCitizen digital identity verification technology[173]. - The Group is fulfilling a contract to build a unified digital authentication system for a transportation infrastructure design and construction firm[174]. - In September 2022, the Group signed a contract to sell data encryption devices and develop software for an information technology firm[174]. Market Trends and Future Outlook - The electronic signature market in China is projected to grow from RMB15.28 billion in 2021 to RMB21.71 billion in 2022 and RMB40.42 billion in 2024[170]. - The Chinese AI software and services market grew by 23.5% to RMB 106.44 billion in 2021 and is projected to exceed RMB 200 billion by 2024[171]. - The United States government imposed restrictions on the export of advanced chips (less than 14 nanometers) and related technology to China in October 2022, which may impact China's information system solution industry in the next two to three years[197]. - The Group is shifting its business focus towards the operation of information technology systems, diversifying into value-added services such as multimedia short messaging services for businesses[198].
量子思维(08050) - 2023 - 中期财报