Financial Performance - Total revenue for the six months ended June 30, 2023, was approximately HKD 38,097,000, a decrease of about 9.8% compared to HKD 42,246,000 for the same period in 2022[4] - Profit attributable to owners for the six months ended June 30, 2023, was approximately HKD 4,158,000, an increase of about 193% compared to a loss of HKD 1,419,000 for the same period in 2022[4] - Earnings per share for the six months ended June 30, 2023, was approximately HKD 1.49, compared to HKD 0.51 for the same period in 2022[4] - Operating profit for the six months ended June 30, 2023, was HKD 4,435,000, an increase from HKD 2,024,000 for the same period in 2022[6] - Total comprehensive income for the six months ended June 30, 2023, was HKD 4,158,000, compared to HKD 1,419,000 for the same period in 2022[6] - The reported segment performance increased to HKD 8,611,000 for the six months ended June 30, 2023, up 32.5% from HKD 6,497,000 in the previous year[23] - The pre-tax profit for the six months ended June 30, 2023, was HKD 4,405,000, compared to HKD 1,907,000 in the previous year, marking an increase of 131.5%[23] - Other income increased significantly from approximately HKD 2,400,000 for the six months ended June 30, 2022, to approximately HKD 6,500,000 for the six months ended June 30, 2023, primarily due to the recovery of expected credit losses on financial assets[74] - The profit attributable to the owners of the company rose to approximately HKD 4,200,000 for the six months ended June 30, 2023, compared to approximately HKD 1,400,000 for the same period in 2022, driven mainly by the increase in other income related to the recovery of expected credit losses[77] Assets and Liabilities - Non-current assets as of June 30, 2023, amounted to HKD 5,652,000, a decrease from HKD 6,623,000 as of December 31, 2022[7] - Current assets as of June 30, 2023, totaled HKD 103,232,000, down from HKD 112,579,000 as of December 31, 2022[7] - Total liabilities as of June 30, 2023, were HKD 19,059,000, a decrease from HKD 29,335,000 as of December 31, 2022[8] - The net asset value attributable to owners as of June 30, 2023, was HKD 89,809,000, compared to HKD 89,851,000 as of December 31, 2022[8] - The net trade receivables as of June 30, 2023, were HKD 26,047,000, a decrease from HKD 27,304,000 as of December 31, 2022, reflecting a decline of 4.6%[36] - The total trade and other payables as of June 30, 2023, amounted to HKD 7,277,000, significantly down from HKD 15,365,000 as of December 31, 2022, indicating a reduction of 52.7%[41] Cash Flow - The net cash generated from operating activities for the six months ended June 30, 2023, was HKD 5,992,000, a decrease of 64.8% compared to HKD 17,054,000 for the same period in 2022[11] - The net cash used in investing activities increased significantly to HKD (8,800,000) from HKD (1,728,000), indicating a rise in investment expenditures[11] - The net cash used in financing activities also rose to HKD (6,424,000) from HKD (1,853,000), reflecting increased financing costs[11] Dividends - The company declared no interim dividend for the period ended June 30, 2023[10] - The company reported no interim dividend for the six months ended June 30, 2023, consistent with the previous year[31] Shareholder Information - As of June 30, 2023, the company has a significant shareholder, Mr. Tang Yao-sheng, holding 210,000,000 shares, representing 75% of the issued share capital[89] - Wan Shida Enterprises Limited, as a beneficial owner, also holds 210,000,000 shares, equating to 75% of the issued share capital[92] - Songling Elderly Care Group Limited and Songling Youtai Limited each hold 15,625,000 shares, representing approximately 5.58% of the issued share capital[92] - The company has no other directors or key executives holding any additional interests or short positions in the company's shares as of June 30, 2023[91] Corporate Governance - The company has complied with all the corporate governance code provisions as set out in Appendix 15 of the GEM Listing Rules during the six months ended June 30, 2023[78] - The audit committee has reviewed the unaudited interim results for the six months ended June 30, 2023, confirming compliance with accounting policies and sufficient disclosure[94] - The company is committed to maintaining transparency and compliance with the Hong Kong Stock Exchange regulations[94] Operational Challenges and Outlook - The company remains optimistic about future growth in the local business environment, anticipating continued improvement in performance for the remainder of the year[56] - The company is focusing on the development of system solutions and investing in new technology for the Marvel customer contact center system[53] - The company is facing challenges in recruitment due to rising labor costs and competition from other industries, which are expected to persist in the near future[52] Revenue Breakdown - Revenue from outsourced inbound customer contact services increased by approximately 10.8% to about HKD 6,600,000 compared to HKD 5,900,000 in the same period of 2022[65] - Revenue from personnel dispatch services was approximately HKD 23,600,000, a slight increase of about 1% from HKD 23,400,000 in the same period of 2022[69] - Revenue from customer contact center equipment management services decreased by approximately 22% to about HKD 5,000,000 compared to HKD 6,400,000 in the same period of 2022[70] - Financial services revenue decreased to approximately HKD 1,200,000 from HKD 3,900,000 in the same period of 2022[72] Other Financial Information - The average credit period for sales was 30 days, with trade receivables aging analysis showing HKD 5,946,000 within 0-30 days as of June 30, 2023[38] - The company had no contingent liabilities as of June 30, 2023, indicating a stable financial position[48] - The financial assets at fair value through profit or loss were HKD 1,260,000 as of June 30, 2023, unchanged from December 31, 2022[34] - The total issued and paid-up capital remained at HKD 2,800,000, with 280,000,000 shares as of both June 30, 2023, and December 31, 2022[43] - The company did not recognize any deferred tax liabilities in the financial statements due to the absence of significant timing differences[30] - The management's remuneration for the six months ended June 30, 2023, was HKD 243,000, unchanged from the same period in 2022[47] - The company did not repurchase any of its listed securities during the six months ended June 30, 2023[97] - There are no provisions in the company's articles of association or Cayman Islands law requiring the company to offer new shares to existing shareholders on a pro-rata basis[95] - The convertible bonds issued by Songling Youtai Limited have a principal amount of HKD 9,500,000, with a conversion price of HKD 0.608 per share[96] - The company has confirmed that there are no other individuals with interests in the company's shares that require disclosure under the Securities and Futures Ordinance as of June 30, 2023[93] - There were no share options granted, exercised, expired, or lapsed under the share option scheme during the six months ended June 30, 2023[80]
易通讯集团(08031) - 2023 - 中期财报