Financial Performance - The group recorded revenue of approximately HKD 41.98 million for the six months ended June 30, 2022, a decrease of 9.4% compared to HKD 46.43 million for the same period in 2021[4] - The loss attributable to equity shareholders for the six months ended June 30, 2022, was approximately HKD 7.92 million, compared to a loss of HKD 1.75 million for the same period in 2021[4] - Gross profit for the six months ended June 30, 2022, was HKD 6.26 million, down 51.2% from HKD 12.84 million in the same period of 2021[5] - The total comprehensive loss for the six months ended June 30, 2022, was HKD 10.26 million, compared to a total comprehensive income of HKD 2.29 million for the same period in 2021[5] - The company reported a basic loss per share of HKD 4.98 for the six months ended June 30, 2022, compared to a basic loss per share of HKD 1.62 for the same period in 2021[7] - The company reported a loss of HKD (9,719,000) for the six months ended June 30, 2022, compared to a loss of HKD (2,318,000) in the same period of 2021[20] - Total revenue decreased by approximately 9.59% to about HKD 41.98 million compared to the same period in 2021, primarily due to a decline in financial printing revenue by approximately HKD 19.45 million[52] - Gross profit recorded was approximately HKD 6.26 million, a decrease of about HKD 6.57 million from approximately HKD 12.84 million in the same period of 2021[53] - The company reported a loss attributable to equity shareholders of approximately HKD 9.72 million, compared to a loss of approximately HKD 2.32 million in the same period of 2021[58] Revenue Breakdown - Sales of metal casting products increased significantly to HKD 37,094,000, up 67.8% from HKD 22,095,000 in the previous year[18] - The financial printing service revenue dropped to HKD 4,886,000, down 79.9% from HKD 24,338,000 in the prior year[18] - Revenue from Germany increased significantly to HKD 30,288,000, up 48.7% from HKD 20,387,000 in 2021[22] - Revenue from China rose to HKD 5,642,000, a substantial increase from HKD 1,346,000 in the previous year[22] - The revenue from the metal casting business increased by approximately 67.88% compared to the six months ended June 30, 2021, indicating a recovery in the core markets of Europe and the United States[48] - The financial printing services revenue decreased by approximately 79.92% during the same period, primarily due to ongoing restrictions affecting IPO-related printing orders[49] Cash Flow and Assets - Current assets as of June 30, 2022, amounted to HKD 50.10 million, an increase from HKD 48.09 million as of December 31, 2021[9] - The net asset value as of June 30, 2022, was HKD 7.11 million, compared to HKD 5.48 million as of December 31, 2021[9] - The company’s cash and cash equivalents increased to HKD 2.56 million as of June 30, 2022, from HKD 1.31 million as of December 31, 2021[9] - The cash and cash equivalents at the end of the period were HKD 2,561,000, down from HKD 6,128,000 at the end of the previous year[13] - The net cash used in operating activities was HKD (1,774,000), an improvement from HKD (5,806,000) in the previous year[13] - The net cash generated from financing activities was HKD 3,346,000, compared to a net cash used of HKD (1,803,000) in the same period last year[13] - Trade receivables increased to HKD 15,466,000 as of June 30, 2022, compared to HKD 13,208,000 at the end of December 2021[33] - Trade payables amounted to HKD 17,406,000 as of June 30, 2022, slightly down from HKD 17,728,000 at the end of December 2021[36] Shareholder Information - The company has two reportable segments: metal casting and financial printing, with total segment performance showing a significant decline in the financial printing division[20] - The weighted average number of ordinary shares issued was 158,873,000 for the six months ended June 30, 2022, compared to 107,703,000 in 2021[32] - The total equity attributable to equity shareholders as of June 30, 2022, was HKD 13,393,000, a decrease from HKD 23,748,000 as of January 1, 2021[10] - Ms. Hu Lan Ying holds 15,375,000 shares, representing 8.70% of the company's issued share capital as of June 30, 2022[75] - Mr. Fang Jin Huo holds 26,611,500 shares, accounting for 15.05% of the company's issued share capital as of June 30, 2022[77] Corporate Actions and Governance - The board of directors did not recommend the payment of an interim dividend for the six months ended June 30, 2022[4] - The company did not recommend any interim dividend for the six months ended June 30, 2022, consistent with the previous year[30] - The company has not granted any stock options under its stock option plan since its adoption on April 10, 2015[79] - The company has established an audit committee consisting of two independent non-executive directors, ensuring compliance with GEM listing rules[84] - The company is actively seeking suitable candidates to fill the vacancy left by the resignation of an independent non-executive director to comply with GEM listing rules[85] - The company confirms compliance with the corporate governance code during the reporting period[86] - The report was reviewed and provided with suggestions and opinions by the audit committee[84] Future Outlook and Strategy - The company remains cautiously optimistic about the recovery of financial printing business amid the ongoing COVID-19 pandemic[51] - The company will continue to monitor the COVID-19 situation and seek potential investment opportunities to diversify its business and create new revenue sources[51] - The company plans to use approximately HKD 1,200,000 from a new placement for loan repayment and HKD 2,900,000 for general working capital and potential new projects[44] - The company raised approximately HKD 9,300,000 through a rights issue at a subscription price of HKD 0.2 per share, increasing the number of issued shares from 104,000,000 to 156,000,000[40] - A placement agreement was established to issue up to 20,800,000 new shares at HKD 0.13 per share, raising approximately HKD 2,704,000 in total proceeds[40] - The company’s financial printing services cater primarily to clients in the financial and capital markets, including listed companies and organizations seeking IPOs in Hong Kong[49] - The company is monitoring potential legal claims and their impact on financial conditions, with no provisions currently deemed necessary[45] Employee Information - As of June 30, 2022, the group employed 179 staff members, an increase from 169 staff members as of December 31, 2021[74] - Employee costs totaled approximately HKD 12.95 million for the period, down from HKD 16.07 million in the previous year, reflecting a decrease of about 19.5%[74] Debt and Liabilities - The debt-to-equity ratio as of June 30, 2022, was approximately 45.43%, an increase from 36.53% as of December 31, 2021[61] - The company has no tax liabilities for the periods ended June 30, 2022, and 2021 due to the absence of taxable profits in Hong Kong and China[27]
吉盛集团控股(08133) - 2022 - 中期财报