Workflow
中播数据(00471) - 2024 - 中期财报
00471SILKWAVE INC(00471)2024-09-27 08:37

Revenue and Profit Performance - Revenue for the period decreased by approximately 0.5millionto0.5 million to 3.1 million, primarily due to a 1.3milliondecreaseinPCBandAImaterialstrading,offsetbyan1.3 million decrease in PCB and AI materials trading, offset by an 0.8 million increase in TV rental income[4] - Gross profit increased from 1.2millionin2023to1.2 million in 2023 to 1.5 million in 2024, driven by higher margins from TV rental income[4] - The Group recorded a loss of approximately 0.1millionforthesixmonthsended30June2024,comparedtoalossof0.1 million for the six months ended 30 June 2024, compared to a loss of 2.2 million in the same period in 2023[4] - Loss per share for the period was 0.02cents,comparedto0.02 cents, compared to 0.19 cents in the same period in 2023[4] - Revenue for the six months ended 30 June 2024 decreased to 3,132thousand,comparedto3,132 thousand, compared to 3,588 thousand in the same period in 2023, representing a decline of 12.7%[89] - Gross profit increased to 1,452thousandinH12024,upfrom1,452 thousand in H1 2024, up from 1,178 thousand in H1 2023, reflecting a 23.3% growth[89] - Loss for the period improved significantly to 134thousandinH12024,comparedtoalossof134 thousand in H1 2024, compared to a loss of 2,201 thousand in H1 2023[89] - Total comprehensive expense for the period was 1,557thousandinH12024,downfrom1,557 thousand in H1 2024, down from 2,958 thousand in H1 2023[89] - Loss attributable to owners of the company was 498thousandinH12024,asignificantimprovementfrom498 thousand in H1 2024, a significant improvement from 2,059 thousand in H1 2023[90] - Net loss for the six months ended 30 June 2024 was approximately 0.1million[96]−Revenuefrommajorproductsandservicesforthesixmonthsended30June2024was0.1 million[96] - Revenue from major products and services for the six months ended 30 June 2024 was 3.132 million, with 1.385millionfromtradingofPCBandAI−relatedproductsand1.385 million from trading of PCB and AI-related products and 1.747 million from transmission and broadcasting services[108] - Segment revenue for the six months ended 30 June 2024 was 3.132million,with3.132 million, with 1.385 million from the trading business and 1.747millionfromtheCMMBbusiness[104]−Segmentprofitforthesixmonthsended30June2024was1.747 million from the CMMB business[104] - Segment profit for the six months ended 30 June 2024 was 750,000, with a loss of 57,000inthetradingbusinessandaprofitof57,000 in the trading business and a profit of 807,000 in the CMMB business[104] - Revenue from major products and services for the six months ended 30 June 2023 was 3.588million,with3.588 million, with 2.659 million from trading of PCB and AI-related products and 929,000fromtransmissionandbroadcastingservices[108]−Segmentrevenueforthesixmonthsended30June2023was929,000 from transmission and broadcasting services[108] - Segment revenue for the six months ended 30 June 2023 was 3.588 million, with 2.659millionfromthetradingbusinessand2.659 million from the trading business and 929,000 from the CMMB business[106] - Segment profit for the six months ended 30 June 2023 was 203,000,withaprofitof203,000, with a profit of 221,000 in the trading business and a loss of 18,000intheCMMBbusiness[106]CostandExpenseManagement−Costofsalesdecreasedbyapproximately18,000 in the CMMB business[106] Cost and Expense Management - Cost of sales decreased by approximately 0.7 million due to lower direct costs and sales costs[4] - Administrative expenses remained steady at approximately 0.5millioncomparedtothesameperiodin2023[4]−MarketdevelopmentandpromotionexpensesdecreasedfromapproximatelyUS0.5 million compared to the same period in 2023[4] - Market development and promotion expenses decreased from approximately US0.4 million to US0.1millionduetotightercostcontrol[5][10]−FinancecostsfortheperiodamountedtoapproximatelyUS0.1 million due to tighter cost control[5][10] - Finance costs for the period amounted to approximately US0.4 million, mainly from effective interest expense on convertible notes[6][11] - Staff costs for the period amounted to approximately US0.3million,comparedtoUS0.3 million, compared to US0.4 million in the six months ended 30 June 2023[32] - Market development and promotion expenses for the six months ended 30 June 2024 were 41,000,comparedto41,000, compared to 450,000 for the same period in 2023[104][106] - Unallocated expenses for the six months ended 30 June 2024 were 190,000,comparedto190,000, compared to 251,000 for the same period in 2023[104][106] - Staff costs, including Directors' remuneration, were 306,000forthesixmonthsended30June2024,downfrom306,000 for the six months ended 30 June 2024, down from 386,000 in the same period in 2023[115] - Legal and professional fees increased to 76,000forthesixmonthsended30June2024,upfrom76,000 for the six months ended 30 June 2024, up from 25,000 in the same period in 2023[115] Financial Position and Assets - The Group recorded a net loss of approximately US0.1millionduringtheperiod,withnetcurrentassetsofapproximatelyUS0.1 million during the period, with net current assets of approximately US6.5 million as of 30 June 2024[15][18] - Convertible notes as of 30 June 2024 amounted to approximately US9.2million,withagearingratioofapproximately21.09.2 million, with a gearing ratio of approximately 21.0%[20][26] - The Group maintained cash and cash equivalents of approximately US0.7 million as of 30 June 2024[15][18] - Non-current assets decreased slightly to 34,313thousandasof30June2024,comparedto34,313 thousand as of 30 June 2024, compared to 34,763 thousand as of 31 December 2023[91] - Current assets decreased to 9,538thousandasof30June2024,downfrom9,538 thousand as of 30 June 2024, down from 10,022 thousand as of 31 December 2023[91] - Net current assets stood at 6,467thousandasof30June2024,comparedto6,467 thousand as of 30 June 2024, compared to 7,281 thousand as of 31 December 2023[91] - Total equity decreased to 31,565thousandasof30June2024,downfrom31,565 thousand as of 30 June 2024, down from 33,119 thousand as of 31 December 2023[92] - Equity attributable to owners of the company decreased to 25,922thousandasof30June2024,comparedto25,922 thousand as of 30 June 2024, compared to 27,840 thousand as of 31 December 2023[92] - Net current assets as of 30 June 2024 were approximately 6.5million[96]−Netcashgeneratedfromoperatingactivitiesforthesixmonthsended30June2024was6.5 million[96] - Net cash generated from operating activities for the six months ended 30 June 2024 was 510,000, compared to a net cash used of 2.127millioninthesameperiodin2023[94]−Netcashusedinfinancingactivitiesforthesixmonthsended30June2024was2.127 million in the same period in 2023[94] - Net cash used in financing activities for the six months ended 30 June 2024 was 516,000, compared to net cash generated of 688,000inthesameperiodin2023[94]−Cashandcashequivalentsattheendoftheperiodwere688,000 in the same period in 2023[94] - Cash and cash equivalents at the end of the period were 722,000, down from 727,000atthebeginningoftheperiod[94]−Accumulatedlossesasof30June2024were727,000 at the beginning of the period[94] - Accumulated losses as of 30 June 2024 were 266.275 million, compared to 265.777millionattheendof2023[93]−Totalcomprehensiveexpenseforthesixmonthsended30June2024was265.777 million at the end of 2023[93] - Total comprehensive expense for the six months ended 30 June 2024 was 2.629 million, compared to 2.71millioninthesameperiodin2023[93]−Thecompany′ssharecapitalremainedunchangedat2.71 million in the same period in 2023[93] - The company's share capital remained unchanged at 46.012 million as of 30 June 2024[93] - The carrying value of spectrum usage rights was 23,807,000asof30June2024,withnoimpairmentlossrecognizedfortheperiod[117][118][119]−TherecoverableamountofspectrumusagerightsisdeterminedusingaVIUcalculationwithadiscountrateof15.2623,807,000 as of 30 June 2024, with no impairment loss recognized for the period[117][118][119] - The recoverable amount of spectrum usage rights is determined using a VIU calculation with a discount rate of 15.26% (up from 14.16% in the previous period)[120] - The cost of equity for the year is 13.43%, calculated using a risk-free rate of 3.87%, equity beta of 0.91, and market risk premium of 7.17%[120] - The cost of debt for the year is estimated at 8.5%, based on the US Prime Lending Rate[120] - The weight of debt and equity is estimated at 72% and 28% respectively, compared to 47% and 53% in the previous period[120] - The specific risk premium for the year is 3.5%, up from 3% in the previous period[120] - Cash flow projections for spectrum usage rights beyond the three-year period use a steady growth rate of 2.18% per annum[120] - Trade receivables decreased from 3.8 million in December 2023 to 2.3millioninJune2024,withover120daysreceivablesdroppingfrom2.3 million in June 2024, with over 120 days receivables dropping from 1.7 million to 606,000[124]−Tradepayablesdecreasedfrom606,000[124] - Trade payables decreased from 797,000 in December 2023 to 532,000inJune2024,whileaccrualsincreasedfrom532,000 in June 2024, while accruals increased from 767,000 to 1.5million[126]−Theliabilitycomponentof2028ConvertibleNotesincreasedfrom1.5 million[126] - The liability component of 2028 Convertible Notes increased from 8.9 million in December 2023 to 9.2millioninJune2024[128]−Asof30June2024,theamountduefromCCH,arelatedcompanycontrolledbytheChairman,wasUSD5,867,000,comparedtoUSD5,509,000asof31December2023[139]ConvertibleNotesandShareIssuance−CCHholdsconvertiblenoteswithaprincipalamountofUS9.2 million in June 2024[128] - As of 30 June 2024, the amount due from CCH, a related company controlled by the Chairman, was USD 5,867,000, compared to USD 5,509,000 as of 31 December 2023[139] Convertible Notes and Share Issuance - CCH holds convertible notes with a principal amount of US12,000,000, convertible into 266,742,857 shares, representing 14.88% of the total issued shares as of 30 June 2024[46][52] - The company issued USD 96,000,000 convertible notes (2025 CN) on 29 May 2018, with a maturity date of 28 May 2025, convertible at HK0.4pershare,representing41.50.4 per share, representing 41.5% of the total issued shares on a fully diluted basis[58][59] - The 2025 CN was split into a liability component of USD 44,137,000 and an equity component of USD 51,863,000, with the liability component measured at an effective interest rate of 11.41% per annum[60][63] - The conversion price and number of shares for the 2025 CN were adjusted to HK8 and 84,390,000 shares respectively after a share consolidation on 12 November 2019, and further adjusted to HK8.088and83,471,810sharesretrospectivelyfrom18February2020[60][63]−On29June2021,thecompanyenteredintoasubscriptionagreementtoissueUSD65,000,000convertiblenotes(2028CN),whichwillmatureontheseventhanniversaryoftheissuedate,offsettingthe2025CN[61][63]−TheconversionpriceofHK8.088 and 83,471,810 shares retrospectively from 18 February 2020[60][63] - On 29 June 2021, the company entered into a subscription agreement to issue USD 65,000,000 convertible notes (2028 CN), which will mature on the seventh anniversary of the issue date, offsetting the 2025 CN[61][63] - The conversion price of HK0.35 per share for the 2028 CN represents a premium of 22.81% to the closing price on 29 June 2021, with a maximum of 1,444,857,142 shares issuable upon full conversion[62][63] - As of 30 June 2024, the outstanding principal amount of the 2028 CN is USD 12,000,000, which, if fully converted, would increase the issued shares by 266,742,857, representing 14.88% of the issued shares as of 30 June 2024[65][68] - The conversion of the 2028 CN would dilute the equity interest of substantial shareholders, with CCH's shareholding decreasing from 56.42% to 49.93% upon full conversion[67] - The conversion of the 2028 convertible notes will not result in the number of shares held by the public falling below 25% of the issued shares[70][76] - The total number of issued shares as of 30 June 2024 is 1,792,389,888[46][50][51] - The 2023 Share Option Scheme had 103,998,988 options available for grant as of 1 January 2024, increasing to 179,238,988 by 30 June 2024[53][55] - No shares were issued under the 2023 Share Option Scheme during the period, representing 0% of the weighted average number of shares[57] - No share options were granted, exercised, lapsed, or canceled under the 2023 Share Option Scheme during the period[57] - The number of share options available for grant under the 2023 Share Option Scheme increased from 103,998,988 as of 1 January 2024 to 179,238,988 as of 30 June 2024[141] Strategic Initiatives and Partnerships - The company plans to deploy a Low-Earth-Orbit (LEO) satellite constellation to deliver low-latency voice and broadband internet services across Asia[40] - The company will utilize a geostationary satellite platform to distribute popular content, digital infotainment, enterprise data services, and essential government information with minimal data cost for users[40] - The satellite network will provide robust broadband solutions, utilizing advanced data analytics to enhance network performance and user experience[40] - Strategic partnerships with governments, technology providers, and local stakeholders will be crucial for the company's success[41] - The company aims to address the increasing demand for high-speed, reliable internet in underserved and remote areas[39] - The company holds a 20% equity interest in Silkwave Holdings Limited, with a call option to acquire an additional 31%[121] - Silkwave indirectly holds a geosynchronous L-band satellite operating platform with 40MHz spectrum frequency covering China and Asia[121][122] - The platform includes the AsiaStar satellite capacity, network solutions, terminal applications, and a Silkwave-1 satellite design under procurement[121][122] - The satellite platform aims to deliver digital multimedia and internet-based content services to vehicles and mobile devices across China and the Asia-Pacific region[121][122] - Silkwave's satellite-related assets were impaired to approximately 1.2millionduetolowervalueinusecomparedtocarryingamount[123]CorporateGovernanceandCompliance−Thecompanydidnotdeclareanyinterimdividendforthesixmonthsended30June2024[138]−Thecompanyhasnotpurchased,sold,orredeemedanyofitslistedsecuritiesduringtheperiod[74][80]−Thecompanyhasadoptedacodeofconductfordirectors′securitiestransactions,ensuringcompliancewiththeModelCodeforSecuritiesTransactionsbyDirectorsofListedIssuers[75][81]−ThecompanyhasdeviatedfromtheCGCodeprovisionC.2.1,astherolesofchairmanandchiefexecutivearenotseparate,withMr.WongChauChiholdingbothpositions[82][84]−TheAuditCommittee,comprisingindependentnon−executivedirectors,reviewedandrecommendedtheadoptionoftheunauditedcondensedconsolidatedfinancialstatementsfortheperiod[83][85]−Thecompanyhasashareholdercommunicationpolicyinplacetofacilitateefficientandsoundcommunicationwithshareholdersandotherstakeholders[87][88]−Thecompany′sremunerationpolicyisreviewedannuallyandisinlinewithprevailingmarketpractices[32]−ThetotalcompensationforkeymanagementpersonnelremainedunchangedatUSD40,000forthesixmonthsended30June2024comparedtothesameperiodin2023[143]LegalandRegulatoryMatters−ThegroupfacespotentiallitigationintheUSrelatedtosatelliteassetsinAsiaandAfrica,withclaimsincludingbreachofcontractandfraud[134]−Thecompanyproposedashareconsolidation(20:1),capitalreduction(HK1.2 million due to lower value in use compared to carrying amount[123] Corporate Governance and Compliance - The company did not declare any interim dividend for the six months ended 30 June 2024[138] - The company has not purchased, sold, or redeemed any of its listed securities during the period[74][80] - The company has adopted a code of conduct for directors' securities transactions, ensuring compliance with the Model Code for Securities Transactions by Directors of Listed Issuers[75][81] - The company has deviated from the CG Code provision C.2.1, as the roles of chairman and chief executive are not separate, with Mr. Wong Chau Chi holding both positions[82][84] - The Audit Committee, comprising independent non-executive directors, reviewed and recommended the adoption of the unaudited condensed consolidated financial statements for the period[83][85] - The company has a shareholder communication policy in place to facilitate efficient and sound communication with shareholders and other stakeholders[87][88] - The company's remuneration policy is reviewed annually and is in line with prevailing market practices[32] - The total compensation for key management personnel remained unchanged at USD 40,000 for the six months ended 30 June 2024 compared to the same period in 2023[143] Legal and Regulatory Matters - The group faces potential litigation in the US related to satellite assets in Asia and Africa, with claims including breach of contract and fraud[134] - The company proposed a share consolidation (20:1), capital reduction (HK4.00 to HK0.01),andsharesubdivision(1:400)on8August2024[133]−Thecompanyhasproposedashareconsolidation,capitalreduction,andsharesubdivision,witharatioof20existingshareswithaparvalueofHKD0.20eachtobeconsolidatedinto1sharewithaparvalueofHKD4.00,followedbyacapitalreductionofHKD3.99pershare,reducingtheparvaluetoHKD0.01,andthensubdividingeachunissuedshareinto400newshareswithaparvalueofHKD0.01[136]RelatedPartyTransactions−ThecompanypaidUSD12,000inrentalfeestoCCH,arelatedparty,duringthesixmonthsended30June2024,thesameamountasinthecorrespondingperiodin2023[142]−Asof30June2024,theamountduefromCCH,arelatedcompanycontrolledbytheChairman,wasUSD5,867,000,comparedtoUSD5,509,000asof31December2023[139]Taxation−HongKongProfitsTaxiscalculatedat16.50.01), and share subdivision (1:400) on 8 August 2024[133] - The company has proposed a share consolidation, capital reduction, and share subdivision, with a ratio of 20 existing shares with a par value of HKD 0.20 each to be consolidated into 1 share with a par value of HKD 4.00, followed by a capital reduction of HKD 3.99 per share, reducing the par value to HKD 0.01, and then subdividing each unissued share into 400 new shares with a par value of HKD 0.01[136] Related Party Transactions - The company paid USD 12,000 in rental fees to CCH, a related party, during the six months ended 30 June 2024, the same amount as in the corresponding period in 2023[142] - As of 30 June 2024, the amount due from CCH, a related company controlled by the Chairman, was USD 5,867,000, compared to USD 5,509,000 as of 31 December 2023[139] Taxation - Hong Kong Profits Tax is calculated at 16.5% for the period, with the first HK2,000,000 of assessable profit taxed at 8.25% under the two-tiered profits tax rates regime[111][112] - US Income Tax is charged at 24% on estimated assessable profits for the six months ended 30 June 2024[113][114] - Taiwan Income Tax is charged at 20% on estimated assessable profits, but no provision was made as the Group had no assessable profit in Taiwan for both periods[113][114] - PRC subsidiaries are subject to a 25% tax rate under the EIT Law, but no provision for PRC income tax was made as there was no taxable income for both periods[113][114] Employee and Management - The average number of employees for the period was approximately 23, down from 25 in the six months ended 30 June 2023[32] - Staff costs for the period amounted to approximately US0.3million,comparedtoUS0.3 million, compared to US0.4 million in the six months ended 30 June 2023[32] - Staff costs, including Directors' remuneration, were 306,000forthesixmonthsended30June2024,downfrom306,000 for the six months ended 30 June 2024, down from 386,000 in the same period in 2023[115] - The total compensation for key management personnel remained unchanged at USD 40,000 for the six months ended 30 June 2024 compared to the same period in 2023[143] Investments and Acquisitions - The company did not make any significant investments as of 30 June 2024[38] - The company did not have any material acquisitions or disposals of subsidiaries, associates, and joint ventures during the period[34] - The company holds a 20% equity interest in Silkwave Holdings Limited, with a call option to acquire an additional 31%[121] - Silkwave indirectly holds a geosynchronous L-band satellite operating platform with 40MHz spectrum frequency covering China and Asia[121][122] - The platform includes the AsiaStar satellite capacity, network solutions, terminal applications, and a Silkwave-1 satellite design under procurement[121][122] - The satellite platform aims to deliver digital multimedia and internet-based content services to vehicles and mobile devices across China and the Asia-Pacific region[121][122] - Silkwave's satellite-related assets were impaired to approximately $1.2 million due to lower value in use compared to carrying amount