Financial Performance - For the six months ended June 30, 2023, the company's revenue was approximately HKD 76,308,000, an increase of about 1.1% compared to the same period in 2022[4]. - The loss attributable to shareholders for the six months ended June 30, 2023, was approximately HKD 5,521,000, a decrease of about 26.8% from the same period in 2022[4]. - Gross profit for the six months ended June 30, 2023, was HKD 1,336,000, compared to HKD 910,000 for the same period in 2022[5]. - Operating loss for the six months ended June 30, 2023, was HKD 5,621,000, improved from HKD 7,618,000 in the same period of 2022[5]. - The company reported a total comprehensive loss of HKD 5,740,000 for the six months ended June 30, 2023, compared to HKD 8,497,000 for the same period in 2022[7]. - The company reported a consolidated loss before tax of HKD 5,647,000 for the six months ended June 30, 2023, compared to a loss of HKD 7,648,000 for the same period in 2022, indicating an improvement of 26.1%[34]. - The company reported a net foreign exchange loss of HKD 44,000 for the six months ended June 30, 2023, compared to a loss of HKD 335,000 in 2022, showing a reduction of 86.9%[38]. - The group recorded a net other loss of approximately HKD 44,000, a decrease of about 86.9% from HKD 335,000 year-on-year, primarily due to reduced foreign exchange losses[88]. Revenue Breakdown - Revenue from telecommunications services for the six months ended June 30, 2023, was HKD 2,131,000, up from HKD 818,000 in 2022, reflecting a growth of approximately 160.5%[26]. - Revenue from distribution business for the six months ended June 30, 2023, was HKD 74,177,000, slightly down from HKD 74,674,000 in 2022, showing a decrease of about 0.7%[26]. - Revenue from Hong Kong for the six months ended June 30, 2023, was HKD 45,886,000, up from HKD 38,324,000 in 2022, reflecting a growth of 19.5%[37]. - The group's distribution business in Hong Kong generated revenue of approximately HKD 43,779,000 for the six months ended June 30, 2023, an increase of about 16.6% compared to HKD 37,536,000 in the same period last year[78]. - Guangzhou Zhitong Telecommunications Co., Ltd. (GZDT) reported distribution revenue of approximately HKD 5,514,000 for the six months ended June 30, 2023, a 1.5 times increase from HKD 2,250,000 year-on-year, driven by increased customer purchases of mobile phones and electronic products[79]. - South Data Communication Pte. Ltd. in Singapore experienced a revenue decline of approximately 28.7%, with revenue falling to about HKD 24,884,000 from HKD 34,889,000 in the same period last year[81]. Cash Flow and Assets - The company's cash and cash equivalents decreased to HKD 8,929,000 as of June 30, 2023, from HKD 15,858,000 as of December 31, 2022[9]. - The net cash used in operating activities for the six months ended June 30, 2023, was HKD 5,999,000, a decrease from HKD 12,635,000 in the same period of 2022, indicating an improvement of approximately 52.5%[14]. - The company's total assets less current liabilities as of June 30, 2023, were HKD 35,862,000, down from HKD 41,716,000 as of December 31, 2022[10]. - The net assets as of June 30, 2023, were HKD 35,294,000, a decrease from HKD 41,034,000 as of December 31, 2022[10]. - The total inventory as of June 30, 2023, was HKD 2,254,000, a decrease from HKD 2,397,000 as of December 31, 2022[53]. - Trade receivables increased to HKD 41,391,000 as of June 30, 2023, from HKD 40,470,000 as of December 31, 2022, with a provision for impairment of HKD 19,155,000[53]. - The company's current assets net amount was approximately HKD 31,068,000 as of June 30, 2023, compared to approximately HKD 36,426,000 as of December 31, 2022[92]. - The current ratio as of June 30, 2023, was 4.8 times, down from 6.3 times as of December 31, 2022[92]. Cost Management and Expenses - Administrative and other operating expenses decreased by approximately 17.3% to about HKD 6,954,000 for the six months ended June 30, 2023, down from HKD 8,406,000 in the same period last year[88]. - The company's employee costs for the six months ended June 30, 2023, were HKD 2,192,000, slightly down from HKD 2,263,000 in the same period of 2022, a decrease of 3.1%[39]. - The group's financial costs for the six months ended June 30, 2023, were approximately HKD 26,000, a decrease of about 13.3% compared to approximately HKD 30,000 in the same period last year[90]. Corporate Governance and Compliance - The audit committee confirmed the effectiveness of the risk management and internal control systems as of June 30, 2023[120]. - The company has complied with the corporate governance code as per GEM listing rules during the review period[113]. - The company is committed to maintaining high levels of corporate governance to protect shareholder interests[113]. - The company has established a non-competition agreement with key stakeholders to mitigate potential competition in the RF-SIM business[119]. Strategic Initiatives and Market Expansion - The company is actively negotiating with service providers to further reduce the unit cost of call time and mobile data, aiming to lower the selling price of prepaid products and enhance competitiveness[76]. - The company is exploring overseas markets to allow outbound travelers to enjoy mobile data services at lower prices, which is expected to expand the user base and increase total usage of call time and mobile data[76]. - The company continues to strengthen cost control and extend credit terms for distributors while remaining vigilant and responsive to various special circumstances[76]. - The group aims to expand its telecommunications business into other Asia-Pacific regions while enhancing its product and service offerings to improve market competitiveness[82]. - The group is actively exploring opportunities in the 5G infrastructure sector and continues to conduct internal research for various application scenarios despite slower-than-expected progress[84]. - The group is implementing strict cost control measures to improve its business and financial performance while seeking new revenue sources[84].
直通电讯(08337) - 2023 - 中期财报