Business Segments and Operations - TOM Group's interim report for 2023 highlights the company's key business segments, including Media Business, Technology Platform & Investment, and strategic investments in fintech and advanced big data analytics[3][4] - The company's e-commerce platform, Ule Holdings Limited (Ule Group), operates in mainland China and focuses on new retail business development and financing[4] - TOM Group's transaction volume (GMV) is calculated based on all orders processed through Ule Group's platforms, including web, mobile, and desktop applications, regardless of order completion or product/service returns[3] - The company operates five reportable business segments: E-commerce, Mobile Internet, Social Network, Publishing, and Advertising[61] - E-commerce segment revenue for the six months ended June 30, 2023, was HKD 0, with a segment profit of HKD 6,537[64] - Technology platform and investment segment revenue was HKD 3,330, with a segment loss of HKD 8,054[64] - Social network segment revenue was HKD 11,749, with a segment loss of HKD 8,242[64] - Publishing business segment revenue was HKD 355,531, with a segment profit of HKD 36,645[64] - Media business segment revenue was HKD 8,062, with a segment loss of HKD 513[64] - Total revenue for the six months ended June 30, 2023, was HKD 378,672, with a total segment profit of HKD 26,373[64] - Non-current asset expenditures for the six months ended June 30, 2023, totaled HKD 74,931[64] - Total revenue for the six months ended June 30, 2022, was HKD 401,004, with a total segment profit of HKD 17,518[68] - Non-current asset expenditures for the six months ended June 30, 2022, totaled HKD 55,882[68] Financial Performance - TOM Group's consolidated revenue decreased by 5.6% to HKD 379 million, with media business revenue at HKD 364 million and technology platform & investment revenue at HKD 16 million[7] - The Group's gross profit was HKD 155 million, maintaining a gross margin of 41%[7] - The Group's net loss attributable to shareholders was HKD 95 million, with a narrowed loss excluding impairment reversal of HKD 16 million[7] - TOM Group recorded revenue of HKD 379 million with a gross margin of 41% for the six months ended June 30, 2023[17] - TOM Group's net loss attributable to shareholders was HKD 95 million for the six months ended June 30, 2023[17] - Revenue for the six months ended June 30, 2023, decreased to HKD 378.67 million from HKD 401.00 million in the same period last year, representing a decline of 5.6%[36] - Net loss attributable to equity holders of the company was HKD 94.55 million, compared to a net profit of HKD 193.38 million in the prior year period[36] - Total comprehensive loss for the period was HKD 106.26 million, down from a comprehensive income of HKD 182.60 million in the same period last year[38] - The company reported a net loss attributable to equity holders of HKD 94,547,000 for the six months ended June 30, 2023, compared to a profit of HKD 193,379,000 in the same period last year[87] - The company's tax expense for the period was HKD 9,179,000, with overseas tax accounting for HKD 7,161,000[85] - The company did not declare or pay any dividends for the six months ended June 30, 2023[86] Investments and Associates - The company's major associates include WeLab Holdings Limited, a British Virgin Islands-based company, and Mioying Holdings Inc., a Cayman Islands-based company[4] - WeLab has approximately 60 million users and has facilitated around $13 billion in loans[16] - WeLab holds an 8.03% equity stake in TOM Group as of June 30, 2023[16] - Miaozhen Technology expanded its market share in sustainability data and software, covering Greater China, Singapore, and Japan[16] - TOM Group holds a 6.22% equity stake in Miaozhen Technology as of June 30, 2023[16] - The company's significant investment in Youle accounted for 22.39% of the issued share capital, with a carrying value of HKD 371,897,000, representing 12.35% of the company's total assets[24] - The company's investment in WeLab's preferred shares accounted for 8.03% of the issued share capital, with a carrying value of HKD 892,624,000, representing 29.63% of the company's total assets[24] - During the six months ended June 30, 2023, the company recorded a reversal of impairment provision for receivables from Youle of HKD 14.471 million and a share of operating loss of HKD 16.839 million[24] - The company recorded an unrealized profit of HKD 592,000 from the revaluation of its investment in WeLab during the six months ended June 30, 2023[26] - The company's investment in associates decreased to HKD 379,660,000 as of June 30, 2023, from HKD 401,060,000 as of December 31, 2022[94] - The company's share of net loss from associates was HKD 13,937,000 for the six months ended June 30, 2023, compared to a net loss of HKD 35,746,000 in the same period last year[96] Financial Position and Liabilities - TOM Group's cash and bank balances (excluding pledged deposits) were approximately HKD 486 million as of June 30, 2023[19] - TOM Group's total credit facility was HKD 3.72 billion, with 93.4% utilized as of June 30, 2023[19] - TOM Group's net debt position was approximately HKD 1.034 billion as of June 30, 2023[19] - Total assets decreased to HKD 2.47 billion as of June 30, 2023, from HKD 2.62 billion as of December 31, 2022[40] - Cash and cash equivalents stood at HKD 442.16 million as of June 30, 2023, down from HKD 481.67 million as of December 31, 2022[40] - Trade and other receivables decreased to HKD 256.74 million as of June 30, 2023, from HKD 429.17 million as of December 31, 2022[40] - Total current liabilities decreased to HKD 541.40 million as of June 30, 2023, from HKD 583.42 million as of December 31, 2022[40] - Net current assets decreased to HKD 296.57 million as of June 30, 2023, from HKD 426.37 million as of December 31, 2022[40] - Goodwill remained relatively stable at HKD 509.34 million as of June 30, 2023, compared to HKD 509.40 million as of December 31, 2022[40] - The company's equity-accounted investments decreased to HKD 379.66 million as of June 30, 2023, from HKD 401.06 million as of December 31, 2022[40] - Total liabilities increased to HKD 3,504,537 thousand as of June 30, 2023, compared to HKD 3,544,030 thousand as of December 31, 2022[42] - Net liabilities stood at HKD (1,033,804) thousand as of June 30, 2023, compared to HKD (925,226) thousand as of December 31, 2022[42] - Total comprehensive loss for the period ending June 30, 2023, was HKD (106,259) thousand, compared to HKD (89,505) thousand for the same period in 2022[44] - Cash and cash equivalents decreased to HKD 442,158 thousand as of June 30, 2023, from HKD 481,668 thousand at the beginning of the year[49] - Net cash used in operating activities was HKD (30,753) thousand for the six months ending June 30, 2023, compared to HKD 25,672 thousand generated in the same period in 2022[49] - Net cash from investing activities was HKD 71,557 thousand for the six months ending June 30, 2023, compared to HKD (46,998) thousand used in the same period in 2022[49] - Net cash used in financing activities was HKD (76,930) thousand for the six months ending June 30, 2023, compared to HKD 18,267 thousand generated in the same period in 2022[49] - The company's equity attributable to shareholders decreased to HKD (1,357,528) thousand as of June 30, 2023, from HKD (1,241,781) thousand as of December 31, 2022[42] - The company's total accumulated losses increased to HKD (6,768,009) thousand as of June 30, 2023, compared to HKD (6,498,299) thousand as of December 31, 2022[48] - The company's deferred tax liabilities increased to HKD 9,224 thousand as of June 30, 2023, compared to HKD 9,027 thousand as of December 31, 2022[42] - Net liabilities of the company as of June 30, 2023, amounted to HKD 1.034 billion[51] - The company holds 8.03% equity in WeLab as of June 30, 2023, up from 7.74% on December 31, 2022[59] - Total assets measured at fair value as of June 30, 2023, were HKD 1.061 billion, with HKD 1.040 billion in equity securities[57] - Unrecognized gains from the initial recognition of FVOCI financial assets were HKD 12.907 million as of June 30, 2023[59] - The company's investment properties decreased from HKD 21.246 million on December 31, 2022, to HKD 20.677 million on June 30, 2023[58][59] - The company's financial assets at FVOCI include HKD 892.624 million valued by an independent external appraiser as of June 30, 2023[59] - The company's total equity securities under FVOCI increased from HKD 1.035 billion on December 31, 2022, to HKD 1.041 billion on June 30, 2023[57][58] - The company's financial risk management policies remained unchanged since the fiscal year ending December 31, 2022[54] - The company's financial resources are sufficient to support operations and repay liabilities due within 12 months from the reporting date[51] Corporate Governance and Compliance - TOM Group's board of directors includes executive directors, non-executive directors, and independent non-executive directors, with various committees such as audit, remuneration, nomination, and sustainability committees[5] - The company has established an Audit Committee consisting of three independent non-executive directors and one non-executive director, all with relevant financial and commercial management experience[131] - The Audit Committee is responsible for overseeing the company's risk management, internal control systems, and financial reporting, as well as monitoring corporate governance and compliance with statutory and listing rules[131] - The company has complied with all applicable code provisions of the Corporate Governance Code for the six months ended June 30, 2023[132] - All directors have confirmed compliance with the standard code of conduct for securities transactions during the six months ended June 30, 2023[133] - The company or its subsidiaries did not repurchase, sell, or redeem any listed securities during the six months ended June 30, 2023[135] - The company's ordinary shares are listed on the Hong Kong Stock Exchange under the stock code 2383[137] - The company's registered office is located at PO Box 309, Ugland House, Grand Cayman, KY1-1104, Cayman Islands[137] - The company's headquarters and principal place of business is at 16/F, China Resources Building, 26 Harbour Road, Wan Chai, Hong Kong[137] - The company's interim results for 2023 were announced on August 4, 2023[137] - Investor relations inquiries can be directed to the Group Corporate Communications and Investor Relations Department at the company's headquarters[137] Shareholding and Ownership - Director Lu Falan holds 492,000 shares, representing approximately 0.01% of the company's total shares[122] - Director Yang Guomeng's spouse holds 30,000 shares, representing less than 0.01% of the company's total shares[122] - Cheung Kong (Holdings) Limited holds 1,430,120,545 shares, representing 36.13% of the company's total shares[123] - Cheung Kong Investment Company Limited holds 476,341,182 shares, representing 12.03% of the company's total shares[124] - CK Hutchison Global Investments Limited holds 952,683,363 shares, representing 24.07% of the company's total shares[124] - Zhou Kaixuan holds 1,003,432,363 shares, representing 25.35% of the company's total shares[124] - Cranwood Company Limited holds 995,078,363 shares, representing 25.14% of the company's total shares[124] - Schumann International Limited holds 580,000,000 shares, representing 14.65% of the company's total shares[124] - Handel International Limited holds 348,000,000 shares, representing 8.79% of the company's total shares[124] - Lin Tianmao holds 526,610,000 shares, representing 13.30% of the company's total shares[124] - The company's issued and fully paid share capital remained unchanged at 3,958,510,558 ordinary shares with a nominal value of HKD 0.1 each[113] Sustainability and Strategy - The company focuses on achieving recurring and sustainable profitability and cash flow without compromising its financial strength and stability, with a strategy centered on revenue growth, profit and cost management, and mergers and acquisitions[31] - The company's sustainability mission is to create long-term value for all stakeholders by aligning corporate social responsibility and sustainability goals with business strategy development[32] Employee and Operational Costs - The company employed approximately 1,100 full-time employees as of June 30, 2023, with employee costs, including directors' remuneration, amounting to HKD 156 million for the first six months of the year[29] - Employee costs for the six months ended June 30, 2023, were HKD 41,361,000, slightly higher than the HKD 41,275,000 recorded in the same period in 2022[80] - The company's other operating expenses, net, for the six months ended June 30, 2023, were HKD 68,673,000, slightly higher than the HKD 68,283,000 recorded in the same period in 2022[80] - The company's other income/(loss), net, for the six months ended June 30, 2023, was HKD 4,470,000, a significant improvement from the HKD (10,468,000) loss recorded in the same period in 2022[81] - Net financing costs for the six months ended June 30, 2023, were HKD 78,575,000, primarily driven by bank loan interest and borrowing costs of HKD 80,577,000[83] Receivables and Payables - Accounts receivable increased from HKD 197,689 thousand to HKD 212,379 thousand, with overdue receivables over 90 days rising from HKD 63,092 thousand to HKD 50,775 thousand[103] - Prepayments and other receivables from associates decreased significantly from HKD 173,113 thousand to HKD 12,071 thousand[103] - Restricted cash remained stable at approximately HKD 6,160 thousand (NTD 24,342 thousand)[107] - Accounts payable decreased from HKD 534,537 thousand to HKD 507,217 thousand, with current payables dropping from HKD 59,291 thousand to HKD 52,840 thousand[108][110] - Long-term bank loans decreased from HKD 3,526,297 thousand to HKD 3,473,471 thousand, with new borrowings of HKD 107,000 thousand and repayments of HKD 160,000 thousand[111] - The company paid HKD 8,590 thousand in guarantee fees to a major shareholder for a HKD 3.7 billion loan facility[117] - Sales of goods and services to associates decreased significantly from HKD 2,503 thousand to HKD 150 thousand[116] - The company's receivable from associates of RMB 155 million was interest-free, unsecured, and collected in January 2023[103] Assets and Liabilities - Total assets as of June 30, 2023, amounted to HKD 3,012,129,000, with significant contributions from the technology platform and e-commerce segment (HKD 822,648,000) and mobile internet segment (HKD 1,083,417,000)[72] - Total liabilities as of June 30, 2023, stood at HKD 4,045,933,000, including corporate liabilities of HKD 92,876,000 and deferred tax liabilities of HKD 9,224,000[72] - The company's total assets as of December 31, 2022, were HKD 3,202,222,000, with a significant portion attributed to the technology platform and e-commerce segment (HKD 937,358,000)[75] - Total liabilities as of December 31, 2022, were HKD 4,127,448,000, including corporate liabilities of HKD 91,473,000 and deferred tax liabilities of HKD 9,027,000
TOM集团(02383) - 2023 - 中期财报