Financial Performance - For the three months ended June 30, 2023, the revenue was HK$22,886,000, a significant increase of 411% compared to HK$4,479,000 for the same period in 2022[6]. - The gross profit for the six months ended June 30, 2023, was HK$1,118,000, compared to HK$2,112,000 for the same period in 2022, indicating a decline of 47%[6]. - The loss before tax for the three months ended June 30, 2023, was HK$3,439,000, compared to a loss of HK$2,748,000 for the same period in 2022, representing an increase in loss of 25%[6]. - Total comprehensive loss for the period attributable to owners of the Company for the six months ended June 30, 2023, was HK$7,065,000, compared to HK$6,912,000 for the same period in 2022, reflecting an increase of 2%[6]. - The Company reported a loss per share of HK$3.33 for the three months ended June 30, 2023, compared to HK$2.40 for the same period in 2022, indicating a deterioration in performance[6]. - For the six months ended June 30, 2023, the Group reported a total comprehensive loss of HK$7,065,000, compared to a loss of HK$6,912,000 for the same period in 2022[10]. - For the three months ended June 30, 2023, the company reported a loss of HK$3,432,000, compared to a loss of HK$2,471,000 for the same period in 2022, representing an increase in loss of approximately 39%[49]. - For the six months ended June 30, 2023, the total loss was HK$6,955,000, compared to HK$6,137,000 in the same period of 2022, indicating an increase of about 13%[49]. Assets and Liabilities - As of June 30, 2023, the net liabilities/assets stood at HK$4,152,000, a decline from net assets of HK$1,079,000 as of December 31, 2022[7]. - Trade receivables increased to HK$36,722,000 as of June 30, 2023, compared to HK$21,841,000 as of December 31, 2022, marking a rise of 68%[7]. - The total assets less current liabilities decreased to HK$1,344,000 as of June 30, 2023, from HK$1,640,000 as of December 31, 2022, indicating a decline of 18%[7]. - As of June 30, 2023, the Group had net current liabilities of approximately HK$8,778,000 and net liabilities of HK$4,152,000[22]. - The Group's accumulated losses increased to HK$122,104,000 as of June 30, 2023, from HK$102,797,000 as of June 30, 2022[8]. - The total equity attributable to the owners of the Company decreased to HK$5,298,000 as of June 30, 2023, from HK$12,508,000 as of June 30, 2022[8]. - Trade payables as of June 30, 2023, totaled HK$9,297,000, compared to HK$551,000 as of December 31, 2022, indicating a substantial increase[59]. Cash Flow and Financing - The cash and cash equivalents at the end of the period were HK$1,244,000, a decrease from HK$4,641,000 at the end of June 2022[10]. - The Group's net cash used in operating activities for the six months ended June 30, 2023, was HK$6,194,000, compared to net cash generated of HK$3,562,000 in the same period of 2022[10]. - The Group issued convertible bonds amounting to HK$1,033,000 during the period[10]. - The gross proceeds from the issue of the 2023 Convertible Bonds were HK$6,500,000, with net proceeds of approximately HK$6.4 million intended for general working capital[120]. - Interest charged for the six months ended 30 June 2023 was HK$1,052,000, with an effective interest rate of 10.20% to 13.32% applied to the liability component[72]. - The total amount of convertible bonds was HK$27,096,000, consisting of HK$21,600,000 from 2022 and HK$5,496,000 from 2023[71]. - The outstanding principal amount of convertible bonds was HK$26,500,000, an increase from HK$20,000,000 as of December 31, 2022[131]. Operational Performance - Revenue from external customers for the six months ended June 30, 2023, was HK$23,059,000, a decrease of 64.0% compared to HK$63,952,000 for the same period in 2022[34]. - The Group's revenue from the sale of manufactured products was HK$0 for the six months ended June 30, 2023, compared to HK$17,907,000 in 2022[39]. - The Group's trading sales of electronic products, accessories, and raw materials amounted to HK$23,059,000 for the six months ended June 30, 2023, down from HK$46,045,000 in 2022[39]. - Major customer A contributed HK$16,936,000, representing over 10% of total revenue for the six months ended June 30, 2023[36]. - The Group's trading business in Hong Kong showed growth momentum in Q2 2023, contributing to a slowdown in revenue decline[87]. Corporate Governance - The company has complied with the applicable Code Provisions and mandatory disclosure requirements as set out in the Corporate Governance Code during the six months ended June 30, 2022[168]. - Following the appointment of Ms. Liang Zhijun on May 29, 2023, the company complied with the GEM Listing Rules regarding the composition of its board and committees[170]. - The roles of chairman and chief executive officer are separate, as required by the Corporate Governance Code, although the company did not have a chairman at the time of the report[169]. - The company is in the process of identifying suitable candidates to fill the board vacancy within three months from June 29, 2023, to ensure compliance with GEM Listing Rules[174]. - The audit committee currently comprises two independent non-executive Directors, resulting in non-compliance with GEM Listing Rules[193]. Share Options and Employee Compensation - The share option scheme adopted on June 20, 2014, is valid for a period of 10 years, with a remaining life until June 19, 2024[148]. - The total number of shares that may be issued upon exercise of all outstanding share options must not exceed 30% of the shares in issue at any time[149]. - On June 10, 2022, the company granted 103,072,000 share options with an exercise price of HK$0.032 per share, entitling grantees to subscribe for the same number of shares[159]. - The total number of share options that may be further granted under the scheme as of the date of the interim report is 189 shares, representing 0.0002% of the issued share capital of the company[161]. - The Group's staff costs for the six months ended June 30, 2023, amounted to approximately HK$2.7 million, slightly up from HK$2.6 million for the same period in 2022[146]. - Key management compensation decreased from HK$686,000 in the first half of 2022 to HK$356,000 in the same period of 2023[83]. Market and Economic Conditions - The US Federal Reserve raised interest rates by 100 basis points in the first half of 2023, following a 425 basis point increase in 2022, impacting the overall business environment[86]. - The Group's cautious stance aims to capture new opportunities and adjust priorities in the post-pandemic era[101].
汇思太平洋(08147) - 2023 - 中期财报