Financial Performance - For the six months ended June 30, 2023, the total revenue of Kinetix Systems Holdings Limited was approximately HKD 137.968 million, a decrease of about 2.4% compared to HKD 141.317 million for the same period in 2022[9]. - The gross profit for the same period was approximately HKD 29.447 million, an increase of about 24.6% from HKD 23.642 million in 2022[9]. - The net loss recorded for the six months ended June 30, 2023, was approximately HKD 5.926 million, an improvement from a net loss of HKD 14.752 million for the same period in 2022[9]. - The company reported a basic and diluted loss per share of HKD 0.39 for the six months ended June 30, 2023, compared to HKD 1.42 for the same period in 2022[10]. - The company reported a total comprehensive loss of HKD 5,997,000 for the six months ended June 30, 2023, compared to a loss of HKD 13,672,000 for the same period in 2022[15]. - The group reported a pre-tax loss for the three months ended June 30, 2023, with total expenses including software costs of HKD 27,756,000, up from HKD 18,410,000 in the same period of 2022[34]. - The loss for the first half of 2023 was approximately HKD 5.9 million, a reduction from a loss of approximately HKD 14.8 million in the first half of 2022, indicating a recovery from the significant impacts of the pandemic[63]. Revenue Breakdown - Revenue from Hong Kong for the six months ended June 30, 2023, was HKD 135,194,000, a slight decrease of 2.0% from HKD 138,566,000 in 2022[24]. - Revenue from customer contracts for the three months ended June 30, 2023, was HKD 69,191,000, a decrease of 10% compared to HKD 76,998,000 for the same period in 2022[27]. - For the six months ended June 30, 2023, revenue from customer contracts was HKD 137,968,000, down 2% from HKD 141,317,000 in the same period of 2022[27]. - The total revenue from external customers for the six months ended June 30, 2023, was HKD 137,968,000, with a notable contribution from IT maintenance and support services amounting to HKD 24,780,000[30]. - Revenue from IT development solution services decreased by approximately 15.5% to about HKD 51.4 million, accounting for approximately 37.3% of total revenue for the period[53]. - Revenue from IT infrastructure solution services increased by approximately 30.6% to about HKD 61.8 million, accounting for approximately 44.8% of total revenue for the period[54]. Assets and Liabilities - As of June 30, 2023, total assets amounted to HKD 186.192 million, down from HKD 199.853 million as of December 31, 2022[13]. - The total liabilities decreased to HKD 102,865,000 from HKD 140,183,000, a reduction of 27%[14]. - The group's asset-liability ratio was 25.1% as of June 30, 2023, down from 43.6% as of December 31, 2022, indicating improved financial stability[65]. Cash Flow and Capital Management - Cash and cash equivalents increased to HKD 33.245 million as of June 30, 2023, compared to HKD 25.191 million at the end of 2022[13]. - The net cash used in operating activities for the six months ended June 30, 2023, was HKD (15,686,000), compared to HKD 5,906,000 for the same period in 2022[17]. - The company raised HKD 31,327,000 through a rights issue during the reporting period[15]. - The net proceeds from the rights issue amounted to approximately HKD 29.9 million, with HKD 11.6 million utilized as of June 30, 2023[96]. - The company has fully utilized HKD 10 million for working capital and other general corporate purposes[96]. Dividends and Shareholder Information - The board of directors decided not to recommend the payment of an interim dividend for the six months ended June 30, 2023[9]. - The company did not declare an interim dividend for the six months ended June 30, 2023, consistent with the previous year[36]. - Major shareholders include Vigorous King Limited with 31.80% ownership and Tang Puqi with 31.87% ownership as of June 30, 2023[87]. - The total number of share options granted under the plan is 68,427,536, representing approximately 4.73% of the company's issued shares[73]. - The total number of share options exercised during the mid-year period is 1,927,536[73]. Operational Efficiency - Gross profit increased by approximately HKD 5.8 million, primarily due to higher gross profit from IT development solution services[52]. - Sales expenses decreased by approximately HKD 1.4 million, mainly due to reduced selling and pre-sales expenses[52]. - Administrative and general expenses decreased by approximately HKD 0.6 million, primarily due to lower amortization of intangible assets and leasing expenses, although this was partially offset by increased salary expenses[52]. - The gross profit margin improved from approximately 16.7% in the first half of 2022 to about 21.3% in the first half of 2023, primarily due to lower sales costs[60]. - Administrative expenses decreased to approximately HKD 29.5 million in the first half of 2023 from approximately HKD 30.1 million in the same period of 2022, reflecting cost control measures[62]. Corporate Governance and Compliance - The audit committee has reviewed the unaudited financial statements for the six months ending June 30, 2023, and confirmed compliance with applicable accounting standards[97]. - The company has adopted a code of conduct for directors' securities transactions, ensuring compliance throughout the reporting period[90]. - The company has adhered to the corporate governance code, with a noted deviation regarding the roles of the chairman and CEO being held by the same individual[92]. - The company believes that the risk of its directors facing legal actions is relatively low, thus not opting for insurance arrangements[93]. Future Outlook - The group focused on ongoing projects and aimed to explore new business opportunities to achieve profitability, maintaining a cautiously optimistic outlook for long-term development[57]. - The company plans to expand its technology development solutions services in China, with an expected remaining balance of HKD 6.4 million to be utilized by December 31, 2023[96].
倢冠控股(08606) - 2023 - 中期财报