Financial Performance - Revenue for the six months ended December 31, 2023, was HK$47,457,000, a decrease of 8.5% compared to HK$51,576,000 for the same period in 2022[2]. - Gross profit for the period was HK$13,297,000, down 55.4% from HK$29,808,000 in the previous year[2]. - Operating loss narrowed to HK$23,049,000 from HK$64,058,000 year-on-year, indicating improved operational efficiency[2]. - Loss before income tax decreased to HK$80,655,000 from HK$87,938,000, reflecting a reduction in overall losses[2]. - Loss attributable to owners of the Company was HK$71,577,000, compared to HK$85,939,000 in the prior period, showing a 16.7% improvement[3]. - The Company reported a total comprehensive expense of HK$80,210,000 for the period, compared to HK$90,328,000 in the previous year, indicating a reduction in overall losses[5]. - The total comprehensive expenses for the six months ended December 31, 2023, amounted to HK$86,700,000, which includes a loss of HK$71,577,000 for the period[12]. - The Group incurred a net loss of approximately HK$71,577,000 for the six months ended 31 December 2023[23]. Assets and Liabilities - Total assets as of December 31, 2023, were HK$341,646,000, down from HK$504,611,000 as of June 30, 2023[7]. - Non-current assets decreased significantly from HK$350,310,000 to HK$24,765,000, primarily due to the deconsolidation of a subsidiary[7]. - Current liabilities decreased from HK$600,126,000 to HK$530,298,000, indicating a reduction in short-term financial obligations[8]. - As of December 31, 2023, the company's net liabilities increased to HK$224,287,000 from HK$137,587,000 as of June 30, 2023, reflecting a deterioration in financial position[10]. - The accumulated losses rose to HK$2,294,075,000 as of December 31, 2023, compared to HK$2,224,196,000 at the end of June 2023, indicating ongoing financial challenges[12]. - The Group's current liabilities exceeded its current assets by approximately HK$213,417,000, resulting in net liabilities of approximately HK$224,287,000[23]. - The Group's total liabilities as of December 31, 2023, were significantly impacting its financial stability, as indicated by the high gearing ratio[169]. Cash Flow and Liquidity - Cash and bank balances were HK$60,133,000, down from HK$84,207,000, reflecting a tighter liquidity position[7]. - Operating cash flows before changes in working capital were negative at HK$25,606,000 for the six months ended December 31, 2023, compared to negative HK$29,552,000 for the same period in 2022[15]. - The net cash used in operating activities decreased to HK$15,347,000 for the six months ended December 31, 2023, from HK$43,691,000 in the previous year, showing improved cash management[15]. - The company experienced a net decrease in cash and cash equivalents of HK$24,074,000 during the reporting period, compared to a decrease of HK$48,856,000 in the previous year[15]. - The Group's cash and deposits with banks decreased from HK$103.7 million as of June 30, 2023, to HK$80.6 million as of December 31, 2023[168]. Operational Efficiency - Staff costs (excluding share options expenses) decreased to HK$25,577,000 for the six months ended December 31, 2023, down from HK$39,735,000 for the same period in 2022, a reduction of 35.5%[65]. - The management emphasizes employee competence as a key factor for sustained growth and profitability, with performance-based remuneration and training programs in place[172]. Business Segments and Revenue Sources - Revenue from lottery systems, terminal equipment, and related products was HK$43,715,000, accounting for 92.5% of total revenue[45]. - Sales of natural and health food increased to HK$2,351,000, up 73.1% from HK$1,359,000 in the previous period[41]. - The ecotourism segment generated revenue of HK$1,391,000, a decrease of 7.9% from HK$1,510,000 in the prior period[45]. - The group reported a total segment loss of HK$8,277,000 for the six months ended December 31, 2023, compared to a loss of HK$8,354,000 for the same period in 2022[45]. Future Outlook and Strategies - The management is seeking solutions to address defaults and is working with Acclime Corporate Advisory to formulate a restructuring plan[28]. - The Group aims to control administrative costs and maintain capital expenditure containment[28]. - The Group plans to continue seeking equity financing opportunities to improve liquidity[28]. - The Group aims to maintain its leading position in the lottery industry and expand its overseas lottery business in 2024[150]. - The Group plans to integrate resources to promote innovative development in China's ecotourism and natural health food businesses[151]. Share Capital and Ownership - The total number of issued and fully paid ordinary shares as of December 31, 2023, was 154,422,109 shares, unchanged from June 30, 2023, following the share consolidation[89]. - Ms. Lau Ting holds 55,032,782 shares, representing approximately 35.64% of the company's issued share capital[186]. - Mr. Qiu Peiyuan beneficially owns 1,955,500 shares, accounting for about 1.27% of the issued share capital[184]. - The company has no outstanding share options as of December 31, 2023, and no share options were granted, exercised, canceled, or lapsed during the six months ended December 31, 2023[190]. Property Transactions - The company entered into a provisional agreement to sell a property for HK$309,800,000 on June 5, 2023[194]. - The property has not generated any net profit for the two financial years preceding the disposal as it was held for own use[196]. - The Directors believe the disposal provides a good opportunity to realise the property's value and will reduce the Group's indebtedness and future interest expenses[199].
中国生态旅游(01371) - 2023 - 中期财报