Financial Performance - Revenue for the six months ended June 30, 2024, was HKD 12,180,000, a decrease of 71.8% compared to HKD 43,280,000 for the same period in 2023[3] - Gross profit for the same period was HKD 726,000, down 96.4% from HKD 20,022,000 in 2023[3] - The net loss for the six months ended June 30, 2024, was HKD 23,930,000, an improvement of 26.9% compared to a net loss of HKD 32,700,000 in 2023[4] - The company reported a basic and diluted loss per share of HKD 3.97 for the six months ended June 30, 2024, compared to HKD 5.40 in 2023[3] - The company's loss attributable to owners decreased from approximately HKD 32.6 million for the six months ended June 30, 2023, to approximately HKD 23.9 million for the same period in 2024[43] - The revenue from mobile application development and settlement services was HKD 525 thousand, down from HKD 11,655 thousand in the previous year[18] Assets and Liabilities - Total assets as of June 30, 2024, were HKD 358,345,000, a decrease from HKD 381,547,000 as of December 31, 2023[6] - Total liabilities increased to HKD 49,409,000 as of June 30, 2024, compared to HKD 48,672,000 as of December 31, 2023[7] - The company's equity attributable to owners was HKD 308,025,000, down from HKD 331,992,000 at the end of 2023[6] - Cash and bank balances decreased to HKD 7,286,000 from HKD 12,813,000 as of December 31, 2023[6] - Trade receivables increased to HKD 49,594,000 from HKD 46,119,000 as of December 31, 2023[6] - Total liabilities as of June 30, 2024, were approximately HKD 49.4 million, with a debt ratio of about 15.9%, compared to 14.6% on December 31, 2023[44] Cash Flow - For the six months ended June 30, 2024, the net cash used in operating activities was HKD (4,353) thousand, compared to HKD (367) thousand for the same period in 2023[13] - The net cash used in investing activities was HKD 1 thousand, a significant improvement from HKD (3,896) thousand in the previous year[13] - The net cash used in financing activities was HKD (1,217) thousand, with no financing cash flow reported in the same period last year[13] - As of June 30, 2024, cash and cash equivalents decreased to HKD 7,286 thousand from HKD 12,813 thousand at the beginning of the period[13] Operational Challenges - The company faced significant economic challenges in the first half of 2024, impacting its operational environment and necessitating adjustments to its core business and delivery[37] - Sales and administrative expenses for the period were approximately HKD 2.7 million, a reduction of about HKD 36.18 million from HKD 38.8 million in the previous year[41] Investments and Financial Assets - The company reported a pre-tax loss of HKD 21,496 thousand due to unrealized losses on financial assets measured at fair value[23] - The group held financial assets at fair value through profit or loss amounting to approximately HKD 21.3 million as of June 30, 2024, with a total loss of HKD 21.5 million recorded[50] - The major investments included a loss of HKD 10.6 million from China Investment Group and a loss of HKD 3.1 million from Hui Long Holdings[50][51] - The group has no significant plans for major investments or capital assets as of June 30, 2024[55] Governance and Shareholder Information - The company has adopted corporate governance codes and has complied with them throughout the reporting period[57] - The board of directors includes two executive directors and three independent non-executive directors, ensuring a balanced governance structure[68] - The audit committee consists of three members, including independent non-executive director Huang Sile as chairman, and has reviewed the accounting principles and practices adopted by the group[65] - The company expresses gratitude to shareholders, business partners, and customers for their continued support and acknowledges the efforts of the management team and employees[70] Employment and Staffing - The group employed 19 staff as of June 30, 2024, a decrease from 21 staff as of December 31, 2023[53] Dividends and Share Activity - The company did not recommend an interim dividend for the six months ended June 30, 2024, consistent with the previous year[28] - No shares of the company were purchased, redeemed, or sold by the company or its subsidiaries during the six months ended June 30, 2024[58] - The company has 45,318,000 shares held by Song Qifeng, representing 7.5% of the issued share capital, and 31,000,000 shares held by Huang Hao, representing 5.1%[62] - As of June 30, 2024, there are 114,126,000 unexercised options under the stock option plan that have expired, with no options granted, exercised, or canceled during the six months ending June 30, 2024[64] Trading and Regulatory Issues - The company's shares were suspended from trading on April 2, 2024, due to the auditor's inability to express an opinion on the financial statements for the year ending December 31, 2023[66] - There have been no significant events after June 30, 2024, up to the date of this report[67] Contingent Liabilities - The group reported no contingent liabilities as of June 30, 2024, consistent with the previous period[46]
中国钱包(00802) - 2024 - 中期财报