Financial Performance - For the six months ended June 30, 2023, the company's revenue was approximately HKD 40,365,000, an increase of 16.2% compared to HKD 34,735,000 for the same period last year[9]. - The loss attributable to owners of the company for the same period was approximately HKD 3,785,000, a significant reduction from HKD 21,028,000 in the previous year, primarily due to the sale of a subsidiary generating HKD 8,756,000 and a decrease in R&D expenses from approximately HKD 14,324,000 to HKD 5,256,000[9]. - The loss per share from continuing operations was approximately HKD 0.0672, compared to HKD 0.5007 (restated) for the same period last year[9]. - The company's gross profit for the first half of 2023 was approximately HKD 12,640,000, a decrease of 3.7% compared to HKD 13,131,000 in the prior year[60]. - The company reported a loss attributable to equity holders of approximately HKD 3,785,000 for the first half of 2023, compared to a loss of HKD 21,028,000 in the same period last year[64]. - The company recorded a pre-tax loss of HKD 17,148,000 for the six months ended June 30, 2023, compared to a loss of HKD 21,028,000 in the same period of 2022[95]. - The company reported a loss of HKD 1,576,000 for the three months ended June 30, 2023, compared to a loss of HKD 18,597,000 for the same period in 2022, representing a decrease of approximately 91.5%[71]. - For the six months ended June 30, 2023, the loss was HKD 4,654,000, down from HKD 22,460,000 in the previous year, indicating a reduction of about 79.3%[71]. Dividend and Shareholder Actions - The board of directors did not recommend the payment of an interim dividend for the six months ended June 30, 2023, consistent with the previous year[9]. - The company completed a rights issue on April 11, 2022, issuing a total of 171,570,664 shares, with net proceeds estimated at approximately HKD 24,710,000[14]. - The company completed a placement agreement on April 4, 2023, successfully placing 7,642,000 shares at a price of HKD 1.93 per share, representing approximately 12.93% of the company's issued share capital post-placement[26]. - The company has proposed a new share option scheme on April 21, 2023, to incentivize eligible participants for their contributions[31]. - The company issued 7,642,000 shares at a price of HKD 1.93 per share during a placement completed on April 4, 2023[113]. Research and Development - The company incurred research and development expenses of HKD 5,256,000 for the six months ended June 30, 2023, down from HKD 14,324,000 in the same period of 2022[92]. - The company plans to continue investing in its R&D team to promote its AI products and services, requiring funding and experienced experts[55]. - The company is currently in the optimization phase of its AI products and is conducting product concept validation, with remaining net proceeds expected to be fully utilized by Q3 2023[15]. Strategic Focus and Collaborations - The company continues to focus on developing innovative advanced technologies, particularly in AI and cloud technology, while prudently managing and allocating resources[8]. - The company is actively collaborating with industry talents to expand its customer network and enhance existing IT solution services[8]. - The company is leveraging synergies from collaborations and its own AI developments to improve service offerings[8]. - The company entered into a non-binding memorandum of understanding with Autostereoscopic 3D Limited to explore collaboration using proprietary AI technology and big data[23]. - The company is collaborating with various interested parties and has integrated its AI Booster into the Hong Kong government's innovation lab to provide effective predictive analytics solutions[47]. Financial Position and Assets - As of June 30, 2023, the company's cash and bank balances were approximately HKD 17,536,000, an increase from HKD 13,877,000 as of December 31, 2022[65]. - The total borrowings of the company as of June 30, 2023, were approximately HKD 60,673,000, down from HKD 136,960,000 as of December 31, 2022[65]. - The company's total assets decreased from HKD 332,650,000 as of December 31, 2022, to HKD 278,219,000 as of June 30, 2023, a decline of about 16.4%[73]. - Current assets increased from HKD 136,134,000 at the end of 2022 to HKD 175,783,000 by June 30, 2023, an increase of approximately 29.1%[73]. - The company reported a total of HKD 110,629,000 in prepayments and other receivables as of June 30, 2023, significantly higher than HKD 22,816,000 at the end of December 2022[102]. Market Outlook and Future Plans - The company anticipates a gradual recovery in the global market as COVID-19 restrictions ease and business activities resume[53]. - The company is preparing for future challenges while seizing sustainable growth opportunities[8]. - The company plans to explore potential collaborations and projects, particularly in artificial intelligence and related IT services, to create long-term benefits[57]. Corporate Governance and Compliance - The company has complied with the GEM Listing Rules regarding corporate governance, except for the deviation where the Chairman also serves as the CEO[178]. - The audit committee consists of three members, all of whom are independent non-executive directors[180]. - The board is responsible for ensuring a robust internal control and risk management system to protect shareholder investments and the group's assets[184]. - The board includes both executive and non-executive directors, ensuring a diverse governance structure[188]. Investment Properties and Fair Value - The company’s investment properties were valued at HKD 245,243,000 as of June 30, 2023, down from HKD 256,671,000 at the beginning of the year[99]. - The company’s investment properties experienced a foreign exchange adjustment loss of HKD 11,428,000 during the first half of 2023[120]. - The fair value of non-listed equity investments was HKD 10,852,000 as of June 30, 2023, compared to HKD 43,025,000 at the end of 2022[120]. Stock Options and Employee Incentives - The company aims to attract and retain top talent through the share option scheme, rewarding contributions to the group's growth[146]. - The number of unexercised stock options as of June 30, 2023, is 4,102,775, with a weighted average exercise price of HKD 1.88[131]. - The 2023 Share Option Scheme allows the company to grant a total of 6,176,523 share options, equivalent to 10% of the issued shares as of the report date[163].
中国信息科技(08178) - 2023 - 中期财报