Financial Performance - For the six months ended June 30, 2023, the company reported revenue of HKD 5,031,000, a decrease of 43.5% compared to HKD 8,972,000 for the same period in 2022[10] - The company incurred a loss before tax of HKD 13,417,000 for the six months ended June 30, 2023, compared to a loss of HKD 12,129,000 for the same period in 2022, representing an increase in loss of 10.6%[10] - The total comprehensive loss for the six months ended June 30, 2023, was HKD 13,730,000, slightly higher than the loss of HKD 13,251,000 for the same period in 2022, indicating a 3.6% increase in total loss[10] - The company's basic and diluted loss per share from continuing operations for the six months ended June 30, 2023, was HKD 2.42, compared to HKD 2.63 for the same period in 2022, reflecting a decrease of 7.9%[11] - The net loss attributable to equity holders for the six months ended June 30, 2023, was HKD 13,730,000, compared to a loss of HKD 13,251,000 for the same period in 2022, indicating a slight increase in losses of about 3.6%[16] - Total revenue for the six months ended June 30, 2023, was HKD 5,031,000, a decrease of 44.5% compared to HKD 8,972,000 for the same period in 2022[28] - The financial services segment generated revenue of HKD 2,343,000, down 62.9% from HKD 6,327,000 in the previous year[28] - The digital business reported a loss of HKD 2,333,000, contributing to an overall loss before tax from continuing operations of HKD 13,417,000[28] Assets and Liabilities - As of June 30, 2023, the company's total assets amounted to HKD 58,959,000, down from HKD 79,097,000 as of December 31, 2022, indicating a decrease of 25.5%[13] - The company's current liabilities decreased to HKD 22,664,000 as of June 30, 2023, from HKD 32,431,000 as of December 31, 2022, representing a reduction of 30.1%[13] - Non-current assets decreased to HKD 32,827,000 as of June 30, 2023, from HKD 36,343,000 as of December 31, 2022, indicating a decline of 9.1%[13] - The total equity attributable to equity holders as of June 30, 2023, was HKD (42,665,000), a decrease from HKD (28,935,000) as of December 31, 2022, representing a decline of approximately 47.5%[14] - The company's total liabilities decreased to HKD 101,624,000 from HKD 108,032,000, a reduction of 5.2%[30] - As of June 30, 2023, the total non-current liabilities amounted to HKD 78,960,000, an increase from HKD 75,601,000 as of December 31, 2022, representing a growth of approximately 4.2%[14] Cash Flow and Financing - The total cash and cash equivalents decreased by HKD 11,541,000 during the six months ended June 30, 2023, compared to a decrease of HKD 12,674,000 in the same period of 2022, showing a reduction in cash outflow of approximately 8.9%[18] - Operating cash flow for the six months ended June 30, 2023, was a net outflow of HKD 9,335,000, compared to a net outflow of HKD 7,918,000 in 2022, indicating a worsening cash flow situation[18] - The interest expense for convertible bonds decreased significantly to HKD 6,275,000 in the first half of 2023, down from HKD 13,319,000 in the same period of 2022, indicating a reduction of about 52.8%[20] - The company issued convertible bonds totaling HKD 91,000,000 to settle outstanding debts with Huylong International Holdings Limited, demonstrating a strategic financial maneuver[74] Business Segments and Strategy - The company has three reportable segments: financial services, corporate consulting, and digital business, with distinct strategies for each segment[27] - The company is actively exploring new product development and technological advancements to enhance its service offerings in the fintech and blockchain sectors[10] - The company has expanded its business into digital platforms, including blockchain-as-a-service, allowing enterprises to manage and develop applications without maintaining their own blockchain environment[79] - The company plans to expand its customer base and enhance its corporate financing advisory, asset management, and lending services in the financial services sector[103] - The company has successfully entered the entertainment business through its subsidiary NOIZ Entertainment Limited, hosting several concerts in Hong Kong and Macau[101] Future Outlook - The company has not provided specific guidance for future performance but continues to focus on its core business areas and potential market expansion opportunities[10] - The company provided an optimistic outlook, projecting a revenue growth of 20% for the second half of 2023, driven by new product launches and market expansion[147] - A strategic acquisition of a local fintech startup is expected to be finalized by Q4 2023, which will enhance the company's service offerings[147] - The company is planning to expand its market presence in Southeast Asia, targeting a 10% market share by the end of 2024[147] Corporate Governance - The company has complied with the GEM Listing Rules and has established an audit committee consisting of three independent non-executive directors[143] - The chairman and CEO, Wang Xianshuo, currently holds both positions, which deviates from the corporate governance code requiring separation of these roles[142] - The audit committee has reviewed the unaudited condensed consolidated interim results for the six months ended June 30, 2023, ensuring compliance with applicable accounting standards and GEM Listing Rules[145] - The company has applied the principles of the corporate governance code and has adhered to all applicable code provisions, with some deviations noted[141] Employee and Shareholder Information - The group employed 27 staff members as of June 30, 2023, a decrease from 29 as of December 31, 2022[122] - The largest shareholder, Mr. Wang Xianshuo, holds 391,414,998 shares, representing 69.07% of the total issued share capital as of June 30, 2023[130] - As of June 30, 2023, the major shareholder, Huilang, holds 254,659,498 shares, representing approximately 69.07% of the total issued share capital of 566,728,946 shares[133] Investment and Acquisitions - The company completed the acquisition of NOIZChain Limited for a total consideration of approximately HKD 15,133,000, paid through the issuance of 66,666,663 shares at an issue price of HKD 0.227 per share[79] - The group completed the acquisition of NOIZ on July 4, 2022, to diversify into blockchain, AI, and immersive interactive technologies[94] - The company has established a put option for the acquired shares, allowing the buyer to require the sellers to repurchase the shares under certain conditions, adding a layer of financial security to the acquisition[82]
声扬集团(08163) - 2023 - 中期财报