Revenue and Financial Performance - The company recorded total revenue of approximately HKD 12,300,000 for the reporting period, a decrease of HKD 3,000,000 compared to HKD 15,300,000 for the same period last year, representing a decline of 19.6%[21] - Revenue from the big data center services segment was approximately HKD 10,800,000, down HKD 3,000,000 from HKD 13,800,000 in the same period last year, a decrease of 21.7%[21] - For the six months ended June 30, 2023, revenue was HKD 12,300,000, a decrease of 19.4% compared to HKD 15,270,000 for the same period in 2022[56] - Revenue for the three months ended June 30, 2023, was HKD 6,150,000, a decrease of 19.4% compared to HKD 7,635,000 for the same period in 2022[76] - The company reported a loss of approximately HKD 8,900,000 for the reporting period, an improvement of HKD 16,500,000 or 65% compared to a loss of HKD 25,400,000 in the same period last year[23] - The net loss attributable to owners for the six months was HKD 8,869,000, down from HKD 25,412,000 in the same period last year, a 65.1% reduction[59] - The company reported a total comprehensive loss of HKD 5,556,000 for the six months ended June 30, 2023, compared to a total comprehensive loss of HKD 27,901,000 for the same period in 2022, marking an improvement of 80.0%[69] Data Center Operations - The group generated revenue of approximately HKD 10,800,000 from data center services during the reporting period, a decrease of about HKD 3,000,000 compared to the same period in 2022, primarily due to a decline in cryptocurrency prices[9] - The data center has a maximum processing capacity of approximately 1,400 kWh and commenced operations in November 2021[8] - The data center services are affected by lower leasing costs for data processors due to the cryptocurrency market downturn[9] - The segment loss for the big data center services was HKD 4,705,000 for the six months ended June 30, 2023, compared to a loss of HKD 11,072,000 for the same period in 2022[82] - The data center services incurred a loss of HKD 8,680,000 for the three months ended June 30, 2023, compared to a loss of HKD 3,398,000 for the same period in 2022[92] Lending Business - The lending business generated revenue of approximately HKD 1,500,000 during the reporting period[12] - The group holds a money lender license under the Money Lenders Ordinance in Hong Kong since January 2020[11] - A loan of HKD 30,000,000 was granted to an independent third party with a term of 24 months and an annual interest rate of 10%[11] - The loan repayment date was extended by 24 months to April 2, 2024, maintaining the annual interest rate at 10%[11] - The group has implemented internal control measures to manage risks associated with its lending activities[13] - The company aims to leverage its expertise and resources to broaden its revenue sources through its lending business[11] Investments and Acquisitions - The company has entered into an agreement to acquire 55% of Your Choice Ever Best, Inc., which operates a data center in the United States, although the acquisition is not yet completed[29] - The company invested USD 150,000 (approximately HKD 1,177,500) in Cyberflow Digital Inc., acquiring a 30% stake in the company[36] - The group incurred expenditures of HK$1,254,000 for the construction of a data center in the United States and recognized a right-of-use asset of approximately HK$2,932,000 for land use rights[104] - The group had capital commitments of HK$2,933,000 for properties, machinery, and equipment related to the new data center in the United States[112] Cash Flow and Assets - As of June 30, 2023, the company's bank balance and cash amounted to HKD 28,500,000, a significant increase from HKD 9,500,000 on June 30, 2022[40] - As of June 30, 2023, the company's net current assets were HKD 62,700,000, up from HKD 41,100,000 on December 31, 2022[41] - The company has no bank borrowings as of June 30, 2023, maintaining a debt ratio of zero[41] - Current assets increased to HKD 73,183,000 as of June 30, 2023, compared to HKD 18,924,000 at the end of 2022, showing a significant growth of 286.5%[63] - The company reported a net cash outflow from operating activities of HKD 7,586,000 for the six months ended June 30, 2023, compared to HKD 1,945,000 for the same period in 2022, indicating a worsening cash flow situation[71] Corporate Governance - The company has established an audit committee, a remuneration committee, and a nomination committee to maintain high standards of corporate governance[132] - The audit committee is responsible for reviewing and supervising the company's financial reporting process and monitoring risk management and internal controls[134] - The company has adhered to the GEM listing rules and corporate governance code, with no significant deviations reported[129] - The company emphasizes the importance of good corporate governance to protect shareholder interests[129] - The audit committee consists of three independent non-executive directors, ensuring oversight and independence in financial matters[134] Employee and Management Information - The company employed a total of 15 employees as of June 30, 2023, down from 26 employees a year earlier[46] - The short-term benefits for key management personnel amounted to HK$815,000, a decrease from HK$3,144,000 in the previous year[110] - The chairman of the board receives an additional annual remuneration of HKD 576,000, while the newly appointed Vice President of Business Development receives HKD 540,000[136] Share Capital and Equity - The total issued share capital of the company as of June 30, 2023, is 548,408,822 shares[127] - As of June 30, 2023, Wan Feng Industrial Co., Ltd. holds a 51.02% direct equity stake in the company, equating to 279,815,740 shares[123] - Ever Marvel Group Limited holds 12.32% of the company's shares, amounting to 67,548,564 shares[123] - The company issued 80,591,701 new shares as part of a share purchase agreement valued at $4,311,913, with 67,548,564 shares allocated to Ever Marvel Group Limited[127] Miscellaneous - The company did not declare an interim dividend for the reporting period ending June 30, 2022[37] - The company did not report any income tax expenses for the period[56] - The company has no significant contingent liabilities as of June 30, 2023[43] - The company has not disclosed any new product developments or market expansion strategies in the current report[56] - There were no significant mergers or acquisitions reported during the period[56]
加幂科技(08198) - 2023 - 中期财报