Financial Performance - Revenue for the six months ended March 31, 2022, was HKD 351,801,000, representing a 34.4% increase from HKD 261,722,000 in the previous year[2] - Gross profit decreased to HKD 101,173,000, with a gross margin of 28.8%, down 22.4 percentage points from 51.2% in the prior year[2] - The company reported a loss attributable to shareholders of HKD 48,787,000, compared to a profit of HKD 54,106,000 in the same period last year[5] - Basic and diluted loss per share was HKD 15.84, compared to earnings of HKD 17.62 in the previous year[6] - The group reported a loss before tax of HKD 44,568,000 for the six months ended March 31, 2022[31] - The group incurred a loss of HKD 48.8 million during the period, compared to a profit of HKD 54.1 million in the same period of 2021[136] Assets and Liabilities - Total assets increased to HKD 1,005,150,000 from HKD 785,005,000 as of September 30, 2021[8] - Current liabilities rose to HKD 575,144,000, up from HKD 276,279,000 in the previous period[10] - Non-current liabilities increased significantly to HKD 515,296,000 from HKD 323,245,000[10] - Total assets for the group as of March 31, 2022, amounted to HKD 1,335,240,000, with segment assets of HKD 387,135,000 for contract manufacturing, HKD 123,130,000 for technology solution services, and HKD 718,401,000 for the virtual asset ecosystem[35] - The total liabilities for the group as of March 31, 2022, were HKD 1,090,440,000, with segment liabilities of HKD 244,601,000 for contract manufacturing, HKD 87,717,000 for technology solution services, and HKD 317,109,000 for the virtual asset ecosystem[35] Revenue Breakdown - For the six months ended March 31, 2022, external customer revenue from contract manufacturing was HKD 210,447,000, from technology solution services was HKD 44,544,000, and from the virtual asset ecosystem was HKD 96,810,000, totaling HKD 351,801,000[31] - Revenue from major customers included Customer A contributing HKD 110,076,000, up from HKD 64,184,000 in 2021, and Customer B contributing HKD 38,725,000, up from HKD 29,761,000[43] - Revenue from the Chinese market (including Hong Kong) reached HKD 128,588,000, significantly increasing from HKD 20,813,000 in the previous year[40] - Sales of coil products generated HKD 118,543,000, a substantial rise from HKD 68,613,000 in the prior year[47] Cryptocurrency Operations - The group actively trades cryptocurrencies, purchasing them for resale to gain profits from price fluctuations, applying fair value measurement for virtual assets[18] - The group recognizes cryptocurrency collateral received from counterparties as assets, recorded at fair value under liabilities[19] - Borrowings denominated in cryptocurrencies are initially recognized at fair value, consistent with the treatment of cryptocurrency inventory[20] - The company reported a net gain of HKD 9,462,000 from cryptocurrency fair value, with no such income reported in the previous year[49] Expenses and Costs - The group’s administrative expenses for the six months ended March 31, 2022, were HKD 49,830,000, and financing costs were HKD 5,300,000[31] - Financing costs totaled HKD 7,246,000, slightly increasing from HKD 6,896,000 in the previous year[53] - Administrative expenses rose by approximately 174.2% from HKD 53.2 million in 2021 to HKD 145.9 million in 2022[155] Cash Flow and Financing - Cash and bank balances decreased to HKD 374,566,000 from HKD 552,175,000[8] - Net cash used in operating activities was approximately HKD 267.9 million in 2022, compared to HKD 1.8 million in 2021[164] - Net cash used in investing activities was approximately HKD 76.1 million in 2022, significantly higher than HKD 2.2 million in 2021[166] - Net cash from financing activities was approximately HKD 170.8 million in 2022, compared to cash used of HKD 5.2 million in 2021[167] Taxation - The company's income tax expense for the period was HKD 4,219,000, a decrease from HKD 19,214,000 in the previous year, reflecting a significant reduction of approximately 78%[58] - The estimated taxable profits in Hong Kong were subject to a tax rate of 16.5%, consistent with the previous year, indicating stable tax policy[58] Stock Options and Employee Compensation - The company granted 6,192,000 stock options on April 3, 2019, with an exercise price of HKD 3.13 per share[92] - The fair value of the stock options granted on April 3, 2019, was approximately HKD 8,854,000, equating to HKD 1.4299 per option[93] - The total expense for share-based payments during the six months ended March 31, 2022, was HKD 369,000, compared to HKD 1,562,000 for the same period in 2021[109] Employee and Operational Metrics - The company had 797 employees as of March 31, 2022, an increase from 728 employees on September 30, 2021[178] - The total employment cost for the period was approximately 91.5 million HKD, compared to 60.3 million HKD in the previous period[178] Future Plans and Investments - The company plans to establish a "one-stop virtual asset compliance service platform" to lead traditional financial institutions into the virtual asset world[179] - Huobi Solutions has committed to invest USD 10 million (approximately HKD 78 million) in the New World Pioneer Mining Fund No. 1 Limited Partnership[124] - Huobi Solutions has agreed to invest USD 15 million (approximately HKD 117 million) in the Huobi Multi Strategy Crypto Fund SP[128]
新火科技控股(01611) - 2022 Q2 - 季度业绩