松景科技(01079) - 2024 - 中期业绩

Financial Statements Consolidated Performance Overview During the reporting period, the Group achieved a turnaround to profit, primarily driven by a one-off gain from subsidiary disposal; despite revenue increasing over tenfold, gross profit margin significantly declined due to business restructuring, resulting in a profit attributable to owners of HK$52.46 million, compared to a loss of HK$17.76 million in the prior period Performance Overview for the Six Months Ended December 31, 2023 | Indicator | For the Six Months Ended December 31, 2023 (thousand HKD) | For the Six Months Ended December 31, 2022 (thousand HKD) | Year-on-Year Change | | :--- | :--- | :--- | :--- | | Revenue (Continuing Operations) | 127,559 | 10,792 | +1082% | | Gross Profit (Continuing Operations) | 1,490 | 1,766 | -15.6% | | Gain on Disposal of Subsidiary | 57,412 | (1,183) | Turnaround to Profit | | Profit/(Loss) for the Period | 51,843 | (18,432) | Turnaround to Profit | | Profit/(Loss) Attributable to Owners of the Company | 52,458 | (17,756) | Turnaround to Profit | | Basic Earnings/(Loss) Per Share (HKD) | 0.040 | (0.013) | Turnaround to Profit | Financial Position At the end of the reporting period, the Group's financial position remained robust, with net assets slightly increasing and total liabilities significantly reducing due to subsidiary disposal; bank borrowings were fully repaid, and cash balances remained high, indicating ample liquidity Key Financial Position Indicators (December 31, 2023 vs June 30, 2023) | Indicator | December 31, 2023 (thousand HKD) | June 30, 2023 (thousand HKD) | Change | | :--- | :--- | :--- | :--- | | Net Assets | 90,503 | 85,384 | +6.0% | | Bank Balances and Cash | 91,735 | 98,109 | -6.5% | | Current Liabilities | 3,816 | 20,900 | -81.7% | | Bank Borrowings | 0 | 1,367 | -100% | | Equity Attributable to Owners of the Company | 90,487 | 36,277 | +149.4% | Notes to Financial Statements Company Information and Accounting Policies This note outlines the Group's principal activities, the discontinued money lending business, and explains the change in presentation currency from USD to HKD for better investor understanding, with accounting policies remaining consistent with the prior year - The Group's principal activities include manufacturing and sales of branded video graphics display cards, distribution of other branded computer components, trading business, and software and hardware development services[11] - The Group has discontinued its money lending business, with its results classified as 'discontinued operations' in the financial statements[12][20][29] - To provide shareholders and investors with a more accurate understanding of financial performance, the Group has changed the presentation currency of its financial statements from US Dollar (USD) to Hong Kong Dollar (HKD)[13][76] Segment Information During the reporting period, the Group's revenue structure underwent significant changes, with new 'other branded products' distribution and 'trading business' becoming primary revenue sources, while traditional 'computer software and hardware and system development services' revenue substantially declined, and the 'Group's branded products' segment generated no revenue Revenue by Business Segment for H1 2023 (Continuing Operations) | Business Segment | Revenue (thousand HKD) | Revenue in Prior Period (thousand HKD) | | :--- | :--- | :--- | | Other Branded Products | 101,363 | 0 | | Trading Business | 24,965 | 0 | | Computer Software and Hardware and System Development Services | 1,231 | 10,792 | | Group's Branded Products | 0 | 0 | | Total | 127,559 | 10,792 | Disposal of Subsidiary During the reporting period, the Group completed a significant asset disposal, selling its entire equity interest in Choi Min Limited on December 22, 2023, which generated a one-off gain of approximately HK$57.41 million and was a key factor in achieving profitability for the period - On December 22, 2023, the Group completed the disposal of its subsidiary Choi Min Limited and its subsidiaries[39] - This disposal generated a gain of HK$57,412,000 for the Group and resulted in a net cash outflow of HK$3,481,000[39][46] Dividends and Earnings Per Share The Board did not recommend an interim dividend for the period; basic earnings per share turned profitable at HK$0.040, compared to a loss of HK$0.013 in the prior period, primarily due to the gain from the disposal of a subsidiary - The Board did not recommend the payment of an interim dividend for the six months ended December 31, 2023[28][81] - Basic earnings per share from continuing and discontinued operations was HK$0.040, compared to a loss per share of HK$0.013 in the prior period[7][33][34] Management Discussion and Analysis Financial Review This period's financial performance was marked by a revenue structure transformation and a one-off disposal gain; revenue surged by 1082% to HK$128 million from new distribution and trading businesses, though overall gross margin fell to 1.2% due to lower-margin activities, while the HK$57.41 million gain from subsidiary disposal was key to the Group's turnaround to profit, supported by a robust financial position with a 24.39x current ratio and 4.05% gearing ratio - Revenue increased by 1,082% year-on-year to HK$128 million, primarily driven by new sales of computer components and consumer electronics (HK$101 million) and plastic raw material trading (HK$25 million)[42] - Overall gross profit margin significantly decreased from 16.4% in the prior period to 1.2%, as the business focus shifted from high-margin software services to low-margin trade and distribution[43] - Profit for the period primarily resulted from a gain of approximately HK$57.41 million recognized from the disposal of a subsidiary[46][52] - The Group maintains ample liquidity, with a current ratio of approximately 24.39 times (June 30, 2023: 5.05 times) and a gearing ratio reduced from 20.65% to 4.05%[54][58] Business Review and Outlook Facing a sluggish macroeconomic environment, the Group adopted a conservative strategy, leading to an 89% revenue decline in computer software services and the disposal of its related subsidiary; new distribution of other branded products and plastic raw material trading became primary revenue pillars, and looking ahead, the Group is cautiously optimistic, establishing a Shenzhen joint venture for computer services and planning investments in drones, robotics, and diversified technology opportunities - Revenue from the computer software and hardware and system development services segment decreased by approximately 89% year-on-year, with segment loss reduced by approximately 80%; the Group disposed of its Chinese subsidiary engaged in this business in December 2023[67][70] - Newly added segments, Other Branded Products (computer components and consumer electronics distribution) and Trading Business (plastic raw material trading), became major performance contributors, generating approximately HK$101 million and HK$25 million in revenue, respectively[62][66] - Looking ahead, the Group established a joint venture in Shenzhen in January 2024, primarily engaged in computer services, and plans to actively explore opportunities in the drone and robotics markets[71] - The Board remains cautiously optimistic about the economic outlook for fiscal year 2024 and will actively seek diversified investment opportunities in technology and other promising businesses[72] Other Information Corporate Governance and Compliance During the reporting period, the company complied with the Corporate Governance Code under the Listing Rules, with two deviations: the Chairman and Chief Executive Officer roles are held by the same person (Mr. Zhang Sanhuo), and directors' fixed two-year terms do not fully align with the triennial rotation requirement, though the company intends to comply; the Audit Committee has reviewed these interim results - The Company has complied with the Corporate Governance Code, with deviations from Code Provisions C.2.1 and B.2.2[82] - Deviation from C.2.1: The roles of Chairman and Chief Executive Officer are not segregated, both held by Mr. Zhang Sanhuo; the Board believes this structure consolidates leadership and facilitates effective strategy execution[83] - The Audit Committee, comprising three independent non-executive directors, has reviewed the unaudited condensed consolidated interim financial statements for the period[93][95] Share Option Scheme and Other Disclosures The company's share option scheme adopted in 2013 expired after ten years during the reporting period; neither the company nor any of its subsidiaries purchased, sold, or redeemed any of the company's listed securities during the period - The Company's share option scheme adopted on November 22, 2013, expired on the tenth anniversary of its adoption date[86] - During the reporting period, neither the Company nor any of its subsidiaries purchased, sold, or redeemed any of the Company's listed securities[96]