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力盟科技(02405) - 2024 - 中期财报
02405POWERWIN TECH(02405)2024-09-20 08:31

Revenue and Profit Performance - For the six months ended June 30, 2024, the company recorded revenue of 7.4million,adecreaseof15.97.4 million, a decrease of 15.9% from 8.8 million for the same period in 2023[5]. - Profit for the same period dropped from 2.0millionin2023to2.0 million in 2023 to 0.3 million in 2024, with basic and diluted earnings per share falling from 0.29to0.29 to 0.04[5]. - Revenue for the six months ended June 30, 2024, decreased by 15.9% to 7.4millionfrom7.4 million from 8.8 million for the same period in 2023, primarily due to intensified competition in digital marketing services[14]. - Revenue from standardized digital marketing services fell by 30.9% to 3.2million,whilerevenuefromcustomizeddigitalmarketingservicesdecreasedby32.73.2 million, while revenue from customized digital marketing services decreased by 32.7% to 1.5 million[14]. - Revenue from SaaS-based digital marketing services increased by 173.4% to 1.2million,attributedtoashiftindemandfromcustomizedservices[14].−Thenetprofitdecreasedby83.31.2 million, attributed to a shift in demand from customized services[14]. - The net profit decreased by 83.3% from 2.0 million for the six months ended June 30, 2023, to 0.3millionforthesameperiodin2024,withanetprofitmargindroppingfrom23.10.3 million for the same period in 2024, with a net profit margin dropping from 23.1% to 4.6% due to increased competition and higher bad debt provisions[21]. Client and Market Engagement - The total billings from marketing clients increased from 288.4 million for the six months ended June 30, 2023, to 450.5millionforthesameperiodin2024[6].−Themarketingservicesprovidedcovervariousverticalsincludinge−commerce,onlinegaming,andapplications,servingover2,900marketingclients[5].−AsofJune30,2024,thecompanyprovidedservicestoover2,900marketingclients,coveringvariousverticalsincludinge−commerceandonlinegaming[10].−ThecompanyaimstoenhanceservicequalityforcoreclientstoincreaserevenueandplanstoleverageitsdualSaaSplatformcapabilitiestosupportcross−bordere−commercebusinesses[7].−ThecompanyhaspartneredwithmajorsocialmediaoperatorsincludingMeta,Google,TikTok,andLinkedIntoenhanceitsmarketingsolutions[6].StrategicInitiativesandFuturePlans−FuturestrategiesincludeoptimizingandupgradingtheAdoradoandPowershopyplatformsusingevolvingAItechnologies,expandingmarketingcoverage,andenhancingbrandreputation[7].−ThecompanyintendstoestablishlocalteamsorofficesinemergingmarketssuchasSoutheastAsiaandtheMiddleEasttoexpanditsglobalreach[7].−Thecompanyisseekingstrategicpartnershipsandinvestmentopportunitiesthatcomplementorenhanceitsexistingbusinesscapabilities[7].−ThecompanyplanstooptimizeandupgradeitsAdoradoandPowershopyplatforms,expandmarketingcoverage,andenhancelocalizedservicesinoverseasmarkets[13].FinancialPositionandLiabilities−Tradereceivablesincreasedfrom450.5 million for the same period in 2024[6]. - The marketing services provided cover various verticals including e-commerce, online gaming, and applications, serving over 2,900 marketing clients[5]. - As of June 30, 2024, the company provided services to over 2,900 marketing clients, covering various verticals including e-commerce and online gaming[10]. - The company aims to enhance service quality for core clients to increase revenue and plans to leverage its dual SaaS platform capabilities to support cross-border e-commerce businesses[7]. - The company has partnered with major social media operators including Meta, Google, TikTok, and LinkedIn to enhance its marketing solutions[6]. Strategic Initiatives and Future Plans - Future strategies include optimizing and upgrading the Adorado and Powershopy platforms using evolving AI technologies, expanding marketing coverage, and enhancing brand reputation[7]. - The company intends to establish local teams or offices in emerging markets such as Southeast Asia and the Middle East to expand its global reach[7]. - The company is seeking strategic partnerships and investment opportunities that complement or enhance its existing business capabilities[7]. - The company plans to optimize and upgrade its Adorado and Powershopy platforms, expand marketing coverage, and enhance localized services in overseas markets[13]. Financial Position and Liabilities - Trade receivables increased from 203.6 million as of December 31, 2023, to 245.1millionasofJune30,2024,drivenbythegrowthofcross−bordere−commerceinChinaandextendedcollectionperiodsfromcertaincustomers[22].−Bankloansrosefrom245.1 million as of June 30, 2024, driven by the growth of cross-border e-commerce in China and extended collection periods from certain customers[22]. - Bank loans rose from 61.0 million as of December 31, 2023, to 99.1millionasofJune30,2024,primarilytosupportcapitalneedsarisingfromincreasedbilling[24].−Thedebt−to−equityratioincreasedfrom132.899.1 million as of June 30, 2024, primarily to support capital needs arising from increased billing[24]. - The debt-to-equity ratio increased from 132.8% as of December 31, 2023, to 276.0% as of June 30, 2024, mainly due to the rise in borrowings[27]. - The cash and cash equivalents decreased from 21.8 million as of December 31, 2023, to 16.7millionasofJune30,2024,primarilyduetoincreasedprepaymentstosupporthigherbilling[25].−Theasset−liabilityratioincreasedfrom206.716.7 million as of June 30, 2024, primarily due to increased prepayments to support higher billing[25]. - The asset-liability ratio increased from 206.7% as of December 31, 2023, to 331.8% as of June 30, 2024, attributed to the increase in borrowings[26]. Research and Development - 41.7% of the net proceeds have been allocated to strengthening the company's R&D capabilities, amounting to HKD 40.3 million[43]. - Research and development costs rose to 614,000 for the six months ended June 30, 2024, compared to 592,000inthesameperiodof2023,indicatinga4592,000 in the same period of 2023, indicating a 4% increase[71]. Shareholder Information and Dividends - The company did not propose any interim dividend for the six months ended June 30, 2024[25]. - No interim dividend was declared for the six months ended June 30, 2024, consistent with the previous year[45]. - The company's issued share capital includes 800,000,000 ordinary shares as of June 30, 2024, with a par value of 0.01 each[87]. - Mr. Li holds a total of 600,000,000 shares, representing 75.00% of the company's equity[36]. - The company holds 800,000,000 shares in total, with key shareholders owning significant stakes, including 44.25% by Common Excellence[40]. Cash Flow and Operating Activities - Cash used in operating activities was (40,310,000),comparedto(40,310,000), compared to (30,302,000) in the previous year, indicating a significant increase in cash outflow[57]. - The company reported a net cash decrease of (5,169,000)fortheperiod,comparedto(5,169,000) for the period, compared to (12,326,000) in the previous year[57]. Miscellaneous Financial Information - The company raised approximately HKD 96.8 million from its initial public offering, net of underwriting fees and related expenses[42]. - As of June 30, 2024, the company has utilized HKD 74.4 million of the net proceeds, with HKD 22.8 million remaining for R&D enhancement[43]. - The company reported a fair value change of 55,000fortheinsurancecontractdepositsduringtheperiod[94].−Thefairvaluechangeoffinancialassetsresultedinalossof55,000 for the insurance contract deposits during the period[94]. - The fair value change of financial assets resulted in a loss of 55,000 for the six months ended June 30, 2024, compared to a loss of $29,000 in the same period of 2023[71].