Financial Performance - Revenue for the six months ended December 31, 2022, was HK$6,894,000, a decrease of 84.7% compared to HK$45,050,000 for the same period in 2021[9]. - Gross profit for the six months ended December 31, 2022, was a loss of HK$165,000, compared to a gross profit of HK$3,669,000 for the same period in 2021[9]. - Loss for the period attributable to owners of the Company was HK$14,201,000 for the six months ended December 31, 2022, compared to a loss of HK$26,932,000 for the same period in 2021, representing a 47.3% improvement[10]. - Total comprehensive expense for the period was HK$13,471,000 for the six months ended December 31, 2022, compared to HK$26,653,000 for the same period in 2021[10]. - Basic loss per share attributable to owners of the Company was HK$0.03 for the six months ended December 31, 2022, compared to HK$0.06 for the same period in 2021[10]. - The company reported a loss for the period of HK$14,201,000 for the six months ended December 31, 2022, compared to a loss of HK$26,932,000 for the same period in the previous year, showing an improvement of approximately 47.4%[17]. - The Group's revenue for the six months ended December 31, 2022, was approximately HK$6.9 million, representing a decrease of approximately 84.7% compared to HK$45.0 million for the same period in the previous year[114][117]. - The Group's loss attributable to equity holders for the six months ended December 31, 2022, amounted to approximately HK$14.2 million, a decrease of approximately 47.3% compared to the same period last year[115]. - The cost of sales for the six months ended December 31, 2022, was approximately HK$7.1 million, down approximately 82.3% from the previous year[122][127]. - The gross profit margin for the six months ended December 31, 2022, was approximately -2.4%, a decline of approximately 10.5% compared to 8.1% for the same period in 2021[123]. Assets and Liabilities - Non-current assets increased to HK$12,132,000 as of December 31, 2022, from HK$5,209,000 as of June 30, 2022[13]. - Current liabilities increased to HK$48,075,000 as of December 31, 2022, compared to HK$30,006,000 as of June 30, 2022[13]. - Net current assets decreased to HK$42,004,000 as of December 31, 2022, from HK$61,488,000 as of June 30, 2022[13]. - As of December 31, 2022, the company's net assets decreased to HK$39,281,000 from HK$52,752,000 as of June 30, 2022, representing a decline of approximately 25.4%[14]. - Total non-current liabilities increased to HK$14,855,000 as of December 31, 2022, compared to HK$13,945,000 as of June 30, 2022, indicating a rise of about 6.5%[14]. - Cash and cash equivalents at the end of the period decreased to HK$3,736,000 from HK$6,949,000 as of December 31, 2021, reflecting a decline of about 46.3%[19]. - The Group's outstanding borrowings amounted to HK$20.8 million as of December 31, 2022, down from HK$23.1 million as of June 30, 2022, with a total debt to equity ratio of approximately 52.9%[142]. - Interest-bearing borrowings amounted to HK$20,780,000, a decrease from HK$23,094,000 as of June 30, 2022, representing a reduction of approximately 10.0%[72]. - The borrowings are repayable within one year amounting to HK$6,040,000, down from HK$9,326,000, indicating a decrease of about 35.0%[72]. Revenue Breakdown - Revenue from internet advertising agency services was HK$5,122,000, down 87.1% from HK$39,636,000 in the previous year[34]. - Revenue from the digitalization empowerment platform business was HK$1,772,000, which is a new segment introduced this period[34]. - Revenue from external customers in Mainland China (excluding Hong Kong) was HK$6,894,000, significantly up from HK$250,000 in the same period last year[39]. - The Group's revenue from overseas internet advertising significantly declined due to the impacts of the COVID-19 pandemic and changes in digital asset policies, resulting in no revenue recorded from the digital assets business[109]. Operational Highlights - The digitalization empowerment platform business has started generating stable operating income since November 2022, indicating a growing trend[110][112]. - The Group anticipates that the online and offline advertising channels in mainland China will begin to generate sustainable income starting from the third quarter[111]. - The "Million Stars Promotion Machine," an intelligent advertising device with a product vending function, was launched and has been well received in the market since its introduction[99]. - The "Million Stars Promotion Machine" will expand its product offerings beyond fresh fruits and vegetables to include snacks and beverages, aiming to increase consumer convenience and generate sustainable income[110][112]. - The Group plans to continue ramping up investment in the construction of a global supercomputing center and build a computing ecosystem to provide professional hosting of supercomputing servers and cloud computing services[106]. - The Group's business focus has gradually expanded from internet advertising agency services to the field of digital assets business since the second half of 2021, indicating a strategic shift in operations[106]. - The Group will continue to invest in the procurement of cryptocurrency servers and expand the global trading and channeling of supercomputing servers[106]. Staff and Management - Total staff costs for the six months ended 31 December 2022 were HK$3,591,000, a decrease of 12.4% from HK$4,102,000 in the same period of 2021[48]. - The Group maintained a workforce of 26 employees as of December 31, 2022, down from 28 employees as of June 30, 2022[157]. - The remuneration for directors during the six months ended December 31, 2022, was HK$570,000, a decrease of 33.2% from HK$854,000 in the same period of 2021[78]. - The Group did not experience any significant difficulties in recruiting and retaining qualified staff during the review period[166]. - The Group's financial management policy includes centralized treasury activities to achieve better cost control and minimize funding costs[140]. Corporate Governance - The company has adopted a code of conduct for securities transactions that meets the standards set out in the GEM Listing Rules[4]. - All directors, except Mr. Gan Xiaohua, confirmed compliance with the required standards of the Model Code during the six months ended December 31, 2022[5]. - The company was in compliance with the Corporate Governance Code during the six months ended December 31, 2022, with some disclosed deviations[6]. - The board did not hold four meetings during the year due to delays in the publication of the annual report for the year ended June 30, 2021[7]. - The company dealt with certain matters through Board Resolutions instead of physical Board Meetings during the year[7]. - Mr. Gan Xiaohua made an on-market acquisition of 5,000 shares at an aggregate consideration of HK$3,000 on September 28, 2022, during a blackout period[8]. - The new Corporate Governance Code will apply to the company's corporate governance report for the financial year commencing on January 1, 2022[9]. - Management is required to provide monthly updates to the Board, ensuring a balanced assessment of the company's performance and prospects to facilitate effective governance[199].
瓦普思瑞元宇宙(08093) - 2023 - 中期财报