股份發行人及根據《上市規則》第十九B章上市的香港預託證券發行人的證券變動月報表 截至月份: 2025年7月31日 狀態: 新提交 致：香港交易及結算所有限公司 公司名稱: 中策資本控股有限公司 (「本公司」) 呈交日期: 2025年8月4日 I. 法定/註冊股本變動 不適用 備註： 本公司並無法定股本及其股本中並無股份面值。 FF301 第 1 頁 共 10 頁 v 1.1.1 FF301 II. 已發行股份及/或庫存股份變動 | 1. 股份分類 | 普通股 | 股份類別 | 不適用 | | 於香港聯交所上市 (註1) | 是 | | | --- | --- | --- | --- | --- | --- | --- | --- | | 證券代號 (如上市) | 00235 | 說明 | 普通股 | | | | | | | | 已發行股份（不包括庫存股份）數目 | | 庫存股份數目 | | 已發行股份總數 | | | 上月底結存 | | | 20,385,253,835 | | 0 | | 20,385,253,835 | | 增加 / 減少 (-) | | | 0 | | 0 | | | | 本月底結存 | ...

Core Viewpoint - S.F. Holding is initiated with an OUTPERFORM rating and target prices of HK$50.37 for H-shares and Rmb51.87 for A-shares, driven by improving logistics network and domestic demand for logistics services [1] Investment Positives - The logistics market in Asia is the largest globally, accounting for 46% in 2023, with S.F. Holding ranking No.1 in various submarkets [1] - The company is expected to leverage its logistics network and diversified product portfolio to reduce logistics costs for clients [1] Operating Efficiency - The capex-to-revenue ratio has decreased from 13.9% in 2021 to 3.8% in 2024, indicating improved operating leverage and capacity utilization [2] - Earnings visibility has improved due to better control over investment pace [2] Revenue Growth Projections - Revenue for express and freight, global supply chain, and intra-city delivery segments is expected to grow at CAGRs of 9%, 3%, and 19% respectively from 2024 to 2026 [3] - Gross margin is projected to rise by an average of 0.4 percentage points per year [3] Market Differentiation - Historical fluctuations in business operations are attributed to mismatches between capacity investment and market demand cycles [4] - The company’s logistics network construction is expected to reduce cyclical fluctuations significantly [4] Financial Forecasts - EPS is forecasted at Rmb2.35 and Rmb2.74 for 2025-2026, indicating a CAGR of 16% [5] - EBITDA is projected at Rmb36.2 billion and Rmb40.4 billion for 2025-2026 [5] - H-shares are trading at 5.5x 2025e EV/EBITDA, with a target price set at HK$50.37, offering a 30% upside [5]

Financial Performance - For the fiscal year ending December 31, 2024, the company reported a revenue decrease of 9% to HKD 65,193,000, down from HKD 71,886,000 in 2023[10] - The profit attributable to the company's owners decreased by 83% to HKD 4,509,000, compared to HKD 26,788,000 in the previous year[10] - Basic earnings per share were HKD 0.02, down from HKD 0.13 in 2023[10] - The total comprehensive income attributable to the company's owners was HKD 4,884,000, significantly lower than HKD 20,591,000 in 2023[11] - The company confirmed an income tax expense of HKD 2,084,000, compared to an income tax credit of HKD 13,274,000 in 2023[10] - The lending business recorded a revenue decrease of 17% to HKD 51,944,000 in 2024, down from HKD 62,530,000 in 2023[26] - The profit from the lending business decreased by 34% to HKD 45,959,000 in 2024, compared to HKD 69,917,000 in 2023[26] - The group recorded income from securities investments of HKD 1,892,000 in 2024, a significant increase from HKD 152,000 in 2023[18] - The loss from financial assets measured at fair value through profit or loss was HKD 4,620,000 in 2024, compared to HKD 7,121,000 in 2023[19] - The fair value loss of debt instruments measured at fair value through other comprehensive income was HKD 4,418,000 in 2024, down from HKD 17,659,000 in 2023[20] Business Strategy and Outlook - The company plans to diversify its business by acquiring 26.8% of Citystate Savings Bank, Inc. to capitalize on opportunities in the Southeast Asian financial market[12] - The company remains cautiously optimistic about its medium to long-term business outlook despite ongoing geopolitical tensions and global trade uncertainties[12] - The company will continue to adopt a prudent approach in managing its business while exploring various investment opportunities[12] - The group remains committed to developing its trading business and actively seeks opportunities to improve performance[25] Impairment and Provisions - The company recorded a provision for impairment losses on receivables of HKD 10,646,000, compared to a reversal of HKD 10,263,000 in 2023[10] - The group confirmed an impairment loss of HKD 10,646,000 on receivables in the lending business for 2024, compared to a reversal of HKD 10,263,000 in 2023[26] - The group’s debt instruments portfolio was fully impaired due to credit risk increases, with an impairment loss of HKD 4,418,000 recognized in 2024[21] - The impairment provision decreased by 25% or HKD 120,301,000 to HKD 365,835,000 as of December 31, 2024, compared to HKD 486,136,000 in 2023[28] Assets and Liabilities - As of December 31, 2024, the group's securities investments included a financial asset portfolio valued at HKD 7,108,000, down from HKD 9,912,000 in 2023[18] - The total loan portfolio decreased by 29% or HKD 363,285,000 to HKD 890,083,000 as of December 31, 2024, down from HKD 1,253,368,000 in 2023[29] - The net value of the loan portfolio (after impairment provisions) was HKD 524,248,000 as of year-end 2024, compared to HKD 767,232,000 in 2023[29] - 98% of the loan portfolio (after impairment provisions) was secured by collateral, including properties and securities, while 2% was unsecured as of December 31, 2024[29] Governance and Compliance - The company maintained compliance with relevant laws and regulations, with no significant violations reported during the fiscal year 2024[62] - The company has a strong governance structure with various committees overseeing audit, remuneration, and nominations, ensuring compliance and effective management[67][68][70] - The company has established a policy for handling and disclosing inside information to ensure compliance with statutory and listing rules[139] - The company has adopted an anti-fraud and anti-corruption policy in August 2022 to prevent misconduct and ensure ethical business practices[140] Environmental, Social, and Governance (ESG) Initiatives - The company emphasizes its commitment to environmental policies and performance, with discussions available on pages 40 to 64 of the annual report[73] - The group has established a governance framework for environmental, social, and governance (ESG) matters, with the board overseeing ESG strategies and performance[153] - The ESG report covers the group's performance, challenges, measures, and plans for the fiscal year 2024, with comparative data from the fiscal year 2023[156] - The total greenhouse gas emissions for the fiscal year 2024 decreased by 4.51% compared to fiscal year 2023, with total emissions amounting to 64.13 tons of CO2 equivalent[171] - The company aims to achieve long-term sustainable development in the communities where it operates by regularly reviewing its environmental goals and measures[167] Employee and Workforce Management - Employee costs for the year amounted to HKD 39,811,000, an increase from HKD 33,427,000 in 2023, with a total of 48 employees at year-end[56] - The employee count decreased from 56 in FY2023 to 48 in FY2024, contributing to the reduction in total water consumption[191] - The company has not identified any significant violations of employment-related laws and regulations during the fiscal year 2024[199] Shareholder Information - As of December 31, 2024, the company had no reserves available for distribution to shareholders[80] - The company’s total issued shares as of December 31, 2024, were 20,385,253,835[94] - The board of directors did not recommend a final dividend for the year ending December 31, 2024, consistent with the previous year where no dividend was declared[75] - Revenue from the top five customers accounted for approximately 75% of total revenue, with the largest customer contributing about 32%[81]

Financial Performance - Total revenue for the year ended December 31, 2024, was HKD 65,193,000, a decrease of 9.4% from HKD 71,886,000 in 2023[2] - The company reported a pre-tax profit of HKD 6,593,000, down 51.2% from HKD 13,514,000 in the previous year[3] - Net profit attributable to shareholders was HKD 4,509,000, a significant drop of 83.2% compared to HKD 26,788,000 in 2023[3] - Total comprehensive income attributable to shareholders for the year was HKD 4,884,000, down 76.3% from HKD 20,591,000 in the prior year[3] - Interest income from lending activities decreased to HKD 49,800,000 from HKD 62,530,000, representing a decline of 20.4%[8] - The company recorded a loss of HKD 4,620,000 on financial assets measured at fair value through profit or loss in 2024, compared to a loss of HKD 7,121,000 in 2023[15] - The company’s other income decreased to HKD 37,680,000 in 2024 from HKD 41,894,000 in 2023, a decline of approximately 10.3%[15] - Profit attributable to the company's owners decreased by 83% to HKD 4,509,000 in 2024, down from HKD 26,788,000 in 2023[29] - Basic earnings per share were HKD 0.02 in 2024, compared to HKD 0.13 in 2023[29] Assets and Liabilities - The company’s total assets increased to HKD 2,231,737,000 from HKD 2,237,511,000, indicating a slight decrease of 0.25%[4] - The company’s total liabilities decreased slightly to HKD 15,125,000 from HKD 25,783,000, a reduction of 41.2%[4] - The total assets of the company increased to HKD 2,270,664,000 in 2024 from HKD 2,278,329,000 in 2023, a slight decrease of about 0.3%[14] - The total liabilities decreased to HKD 54,052,000 in 2024 from HKD 66,601,000 in 2023, a reduction of about 18.9%[14] - The company’s total receivables from interest-bearing loans included HKD 302,902,000 due within one year in 2024, down from HKD 640,230,000 in 2023[23] Employee Costs - Employee costs increased to HKD 39,811,000 from HKD 33,427,000, marking an increase of 19.4%[2] - Employee costs increased to HKD 39,811,000 in 2024 from HKD 33,427,000 in 2023, reflecting an increase of approximately 19.3%[18] Dividends - The company did not declare any dividends for the year ended December 31, 2024, consistent with the previous year[19] - The company did not recommend a final dividend for the fiscal year ending December 31, 2024[28] Impairment and Provisions - The company made a provision for impairment losses on receivables of HKD 10,646,000 in 2024, compared to a reversal of HKD 10,263,000 in 2023[29] - The company’s provision for impairment losses on other receivables decreased to HKD 655,000 in 2024 from HKD 10,764,000 in 2023[29] - The impairment provision for receivables decreased by 25% or HKD 120,301,000 to HKD 365,835,000 as of December 31, 2024[38] - The group has made full impairment on debt instruments due to increased credit risk, with a loss of HKD 4,418,000 recognized in the fiscal year 2024[34] Securities and Investments - The company reported a decrease in the fair value of listed investments from HKD 9,912,000 in 2023 to HKD 7,108,000 in 2024[26] - As of December 31, 2024, the group's securities investments included a financial asset portfolio valued at HKD 7,108,000, down from HKD 9,912,000 in 2023[31] - The group recorded income from securities investments of HKD 1,892,000 for the fiscal year 2024, a significant increase from HKD 152,000 in 2023[32] - The group recognized a loss of HKD 6,959,000 from securities investments, an improvement compared to a loss of HKD 26,543,000 in 2023[31] - The fair value loss of debt instruments through other comprehensive income was HKD 4,418,000, reduced from HKD 17,659,000 in 2023[33] Business Operations - The lending business generated revenue of HKD 51,944,000, a decrease of 17% from HKD 62,530,000 in 2023[37] - The profit from the lending business fell by 34% to HKD 45,959,000, down from HKD 69,917,000 in 2023, primarily due to a provision for loan impairment losses of HKD 10,646,000[37] - The total loan portfolio decreased by 29% or HKD 363,285,000 to HKD 890,083,000, primarily due to borrower repayments[39] - As of December 31, 2024, 98% of the loan portfolio was secured by collateral, with 2% being unsecured, compared to 99% and 1% respectively in 2023[40] - The group did not generate any income from trade activities during the fiscal year 2024, consistent with 2023[36] Future Plans - The company plans to diversify its business by acquiring 26.8% of Citystate Savings Bank, Inc. in the Philippines, aiming to capitalize on opportunities in the Southeast Asian financial market[48] Financial Ratios - The group’s current assets amounted to HKD 2,008,692,000, with a current ratio of approximately 51.6, indicating strong liquidity[45] - The capital-to-debt ratio was approximately 2%, down from 3% in 2023, reflecting a low level of leverage[47] Governance - The board of directors includes one non-executive director, two executive directors, and four independent non-executive directors[54]

Financial Performance - For the six months ended June 30, 2024, the group recorded a revenue decrease of 61% to HKD 19,888,000, compared to HKD 51,267,000 for the same period in 2023[7]. - The group reported a loss attributable to owners of the company of HKD 1,926,000, down from a loss of HKD 11,996,000 in the previous year[7]. - Basic loss per share for the interim period was HKD 0.01, compared to HKD 0.06 for the same period in 2023[7]. - Revenue from lending activities decreased to HKD 14,662,000, down from HKD 46,587,000 in the previous year[23]. - Interest income decreased to HKD 19,431 thousand from HKD 50,284 thousand, representing a decline of 61.4% year-over-year[31]. - The total comprehensive loss for the period was HKD 1,582 thousand, significantly lower than HKD 14,759 thousand in the previous year[33]. - For the six months ended June 30, 2024, the company reported a pre-tax loss of HKD 859,000, significantly improved from a loss of HKD 22,312,000 in the same period of 2023, representing a reduction of approximately 96.1%[34]. - The company reported a loss of HKD 11,996,000 for the six months ended June 30, 2024, compared to a loss of HKD 1,926,000 for the same period in 2023, indicating a significant increase in losses[55]. Securities Investments - The group's securities investments included a portfolio valued at HKD 9,258,000 as of June 30, 2024, down from HKD 9,912,000 as of December 31, 2023[8]. - The group recorded an unrealized loss of HKD 548,000 on its securities investments during the period, compared to an unrealized loss of HKD 12,166,000 in the previous year[8]. - The financial assets measured at fair value through profit or loss recorded a loss of HKD 654,000 during the first half of 2024, compared to a loss of HKD 3,809,000 in the same period of 2023[9]. - The group has not recorded any income from its securities investments during the interim period[8]. - The group's securities brokerage business saw a 12% increase in total revenue to HKD 5,226,000 for the first half of 2024, compared to HKD 4,680,000 in the same period last year[22]. - Interest income from margin financing increased by 29% to HKD 4,769,000, driven by an increase in the average amount of margin loans extended to clients[22]. Lending Business - The group's lending business recorded a revenue decrease of 69% to HKD 14,662,000 in the first half of 2024, compared to HKD 46,587,000 in the same period of 2023[13]. - The profit from the lending business increased by 235% to HKD 15,025,000 in the first half of 2024, up from HKD 4,489,000 in the previous year[13]. - The expected credit loss provision for loans decreased by 93% to HKD 2,651,000 in the first half of 2024, compared to HKD 40,614,000 in the same period of 2023[13]. - The total loan portfolio of the group increased by 5% to HKD 1,316,940,000 as of June 30, 2024, compared to HKD 1,253,368,000 at the end of 2023[15]. - The net value of the loan portfolio, after deducting impairment provisions, rose to HKD 854,277,000 from HKD 767,232,000 at the end of 2023[15]. - 99% of the loan portfolio is secured by collateral, with the remaining 1% being unsecured, consistent with the previous period[15]. Impairment and Provisions - The impairment provision balance decreased by 5% or HKD 23,473,000 to HKD 462,663,000 as of June 30, 2024, from HKD 486,136,000 at the end of 2023[14]. - The impairment loss provision for receivables decreased significantly to HKD 2,651,000 from HKD 48,683,000 year-on-year[23]. - The group made an impairment provision of HKD 2,651,000 during the interim period, significantly lower than HKD 40,614,000 for the same period last year[61]. - The total amount of loans that were fully impaired and written off was HKD 30,605,000[64]. Economic Environment - The overall economic recovery in Hong Kong is constrained by high interest rates and ongoing geopolitical tensions[7]. - Management maintains a cautiously optimistic outlook for the medium to long-term business prospects, despite geopolitical tensions and global interest rate uncertainties[28]. Assets and Liabilities - As of June 30, 2024, the group held current assets of HKD 1,986,800,000, down from HKD 2,094,897,000 as of December 31, 2023[24]. - The group's current ratio improved to approximately 55.8 from 51.3 as of December 31, 2023, indicating strong liquidity[24]. - The equity attributable to owners of the company was HKD 2,210,146,000, slightly down from HKD 2,211,728,000 as of December 31, 2023, due to losses recognized during the period[24]. - The total liabilities decreased to HKD 35,614,000 from HKD 40,818,000, a reduction of 12.7%[32]. - The company's total liabilities increased, impacting its financial position, with a focus on managing cash flow and operational efficiency moving forward[34]. Employee Costs - The group has 51 employees as of June 30, 2024, with total employee costs amounting to HKD 20,332,000, up from HKD 15,522,000 in the previous year[27]. - Employee costs increased to HKD 20,332 thousand, up 30.5% from HKD 15,522 thousand in the previous year[31]. Corporate Governance - The company complied with all applicable code provisions of the Corporate Governance Code during the six months ended June 30, 2024[89]. - The company has adopted a standard code of conduct for securities trading by its directors, confirming compliance for the six months ending June 30, 2024[90].

Revenue Performance - Revenue for the six months ended June 30, 2024, was HKD 19,888,000, a decrease of 61.2% compared to HKD 51,267,000 for the same period in 2023[1] - Total revenue for the six months ended June 30, 2024, was HKD 19,888,000, compared to HKD 51,267,000 for the same period in 2023, representing a decrease of approximately 61.2%[11] - The company’s lending business reported a revenue decrease of 69% to HKD 14,662,000 in the first half of 2024, down from HKD 46,587,000 in the same period of 2023, while profit increased by 235% to HKD 15,025,000[34] Financial Losses - The company reported a pre-tax loss of HKD 859,000, significantly improved from a loss of HKD 22,312,000 in the previous year[2] - The total comprehensive loss attributable to owners of the company was HKD 1,582,000, compared to HKD 14,759,000 in the prior period[2] - The company reported a loss before tax of HKD 859,000 for the six months ended June 30, 2024, compared to a loss of HKD 22,312,000 for the same period in 2023, indicating an improvement in financial performance[11] - The company recorded a loss attributable to owners of HKD 1,926,000 for the period, compared to a profit of HKD 11,996,000 in the previous year[27] - The company incurred a loss of HKD 1,926,000 for the six months ended June 30, 2024, compared to a loss of HKD 11,996,000 for the same period in 2023, showing a significant reduction in losses[17] Asset Management - Non-current assets increased to HKD 279,124,000 as of June 30, 2024, from HKD 183,432,000 at the end of 2023, reflecting a growth of 52.1%[3] - Current assets decreased to HKD 1,986,800,000 from HKD 2,094,897,000, a decline of 5.2%[3] - The company's net asset value stood at HKD 2,210,146,000, slightly down from HKD 2,211,728,000 at the end of 2023[3] - The company's receivables from loans amounted to HKD 854,277,000 as of June 30, 2024, compared to HKD 767,232,000 as of December 31, 2023, indicating growth in loan receivables[18] - The total carrying amount of the company's loan portfolio increased by 5% to HKD 1,316,940,000 as of June 30, 2024, compared to HKD 1,253,368,000 at the end of 2023[35] Expenses and Costs - Employee costs increased to HKD 20,332,000 from HKD 15,522,000, representing a rise of 30.5%[1] - Other expenses decreased to HKD 15,909,000 from HKD 25,404,000, a reduction of 37.4%[1] - The financing costs for the six months ended June 30, 2024, were HKD 808,000, up from HKD 289,000 in the same period of 2023, suggesting increased borrowing costs[13] - The company’s financing costs increased to HKD 808,000 from HKD 289,000 in the previous year due to lease liabilities[41] Impairment and Credit Losses - The impairment loss on receivables for the six months ended June 30, 2024, was HKD 2,651,000, a decrease from HKD 49,019,000 in the same period of 2023, reflecting improved asset quality[15] - The company recorded a decrease in impairment losses on receivables to HKD 2,651,000 from HKD 48,683,000 in the previous year[39] - The company's impairment provision for expected credit losses decreased by 5% or HKD 23,473,000 to HKD 462,663,000 as of June 30, 2024, from HKD 486,136,000 at the end of 2023[35] - The company has not recognized any impairment losses on debt instruments measured at fair value through other comprehensive income during the first half of 2024, compared to an impairment loss of HKD 336,000 in the same period of 2023[32] Dividends and Shareholder Returns - The company did not declare any dividends for the interim period, consistent with the previous year[16] - The company did not declare an interim dividend for the six months ended June 30, 2024, consistent with the previous year[26] Market and Business Strategy - The company maintained a cautious approach to managing its business amid a challenging operating environment influenced by high interest rates and geopolitical tensions[27] - The company continues to seek and evaluate business opportunities in the global commodity market to improve trade business performance[33] - The company plans to explore new business and investment opportunities to enhance its business scale and diversify its revenue base[42] Other Financial Metrics - The company reported a loss per share of HKD 0.01 for the current period, compared to HKD 0.06 in the previous year[2] - The weighted average number of ordinary shares for calculating basic loss per share remained constant at 20,385,254 for both periods[17] - The current ratio improved to approximately 55.8 from 51.3 at the end of 2023[40] - The company's equity attributable to owners was HKD 2,210,146,000, a slight decrease from HKD 2,211,728,000 at the end of 2023[40] - The fair value of listed equity securities held by the company was HKD 9,258,000 as of June 30, 2024, down from HKD 9,912,000 as of December 31, 2023[24] - The company did not record any income from its securities investments during the period, similar to the previous year, and reported an unrealized loss of HKD 548,000[29]

Environmental Impact - The company reported a total greenhouse gas emissions of 67.16 tons of CO2 equivalent for the fiscal year 2023, an increase from 58.44 tons in 2022, reflecting a 14.8% rise [18]. - The nitrogen oxides (NOx) emissions decreased to 1.13 kg in 2023 from 1.28 kg in 2022, showing a reduction of 11.7% [15]. - The company maintained a total harmless waste density of 0.01 tons per employee for both fiscal years 2023 and 2022, indicating consistent waste management practices [22]. - The total amount of paper waste generated was 0.50 tons in 2023, slightly up from 0.48 tons in 2022, representing a 4.2% increase [23]. - The company aims to reduce total harmless waste density by 2025, using the baseline of 0.01 tons per employee recorded in the fiscal year 2021 [22]. - The company has implemented measures to encourage recycling of office waste, including ink cartridges and electronic equipment, to minimize environmental impact [21]. - The company’s direct greenhouse gas emissions (Scope 1) increased to 28.65 tons of CO2 equivalent in 2023 from 20.97 tons in 2022, marking a 36.5% increase [18]. - The company’s indirect greenhouse gas emissions (Scope 2) rose to 38.51 tons of CO2 equivalent in 2023 from 37.47 tons in 2022, a 2.8% increase [18]. - The total greenhouse gas emissions intensity increased from 1.17 tons of CO2 equivalent per employee in 2022 to 1.20 tons in 2023, with a long-term goal to reduce this intensity by the fiscal year ending December 31, 2025 [38]. - The company encourages employees to use public transportation to reduce carbon emissions [17]. Financial Performance - The group's revenue decreased by 78% to HKD 71,886,000 for the fiscal year ending December 31, 2023, compared to HKD 323,579,000 in 2022, primarily due to reduced interest income from lending activities and a temporary halt in commodity trading with European clients [30]. - The group reported a profit attributable to owners of the company of HKD 26,788,000 for the fiscal year, a turnaround from a loss of HKD 189,249,000 in 2022, mainly due to a reversal of impairment losses on receivables amounting to HKD 10,263,000 compared to an impairment of HKD 209,397,000 last year [30]. - The group's securities investments included a portfolio valued at HKD 9,912,000 as of December 31, 2023, down from HKD 17,033,000 in 2022, with income from this portfolio recorded at HKD 152,000, a decrease from HKD 540,000 in the previous year [32]. - The group experienced a net loss of HKD 7,121,000 from its financial assets measured at fair value through profit or loss during the fiscal year, compared to a net loss of HKD 8,086,000 in 2022 [35]. - The group's debt instruments measured at fair value through other comprehensive income amounted to HKD 4,418,000 as of December 31, 2023, with no income generated from this portfolio during the fiscal year [36]. - The company reported a net loss of HKD 17,659,000 in fair value of debt instruments for the year, an improvement from a loss of HKD 41,883,000 in 2022 [78]. - The total comprehensive income for the year ended December 31, 2023, was HKD 26,788 thousand, with a net loss on debt instruments measured at fair value of HKD (17,659) thousand [150]. - The company’s accumulated losses increased to HKD (1,086,741) thousand as of December 31, 2023 [150]. - Basic earnings per share were HKD 0.13, compared to a loss per share of HKD 0.93 in 2022 [198]. - The total comprehensive income attributable to owners was HKD 20,591,000, compared to a total comprehensive loss of HKD 223,831,000 in the previous year, which included a net fair value loss on debt securities of HKD 17,659,000 [199]. Employee and Training Metrics - In the fiscal year 2023, the percentage of male employees increased to 22% from 4% in 2022, while female employees rose to 24% from 12% [55]. - The age group of 41 to 50 years saw a significant increase in employment, with 48% in 2023 compared to 17% in 2022 [55]. - The average training hours per employee for males was 8.75 hours in 2023, up from 6.92 hours in 2022, while for females it was 3.54 hours, an increase from 5.16 hours [61]. - The percentage of trained senior management employees was 58% in 2023, compared to 61% in 2022, while other employees trained dropped to 12% from 15% [61]. - The percentage of trained employees is calculated by dividing the total number of trained employees during the reporting period by the total number of employees at the end of the reporting period [92]. - The average training hours by category are calculated by dividing the total training hours for specific category employees during the reporting period by the number of employees in that specific category at the end of the reporting period [93]. Compliance and Ethical Standards - The company emphasizes ethical standards and compliance with laws, providing a total of 12 hours of anti-corruption training for directors and employees in 2023 [73]. - The group has a zero-tolerance policy towards corruption, bribery, extortion, fraud, and money laundering, with disciplinary actions for violations including termination of employment [101]. - The group has implemented policies to ensure financial integrity and compliance with anti-money laundering and counter-terrorist financing laws [102]. - The company has implemented a structured supplier evaluation process focusing on quality, environmental performance, and ethical standards [65]. - The group has not found any violations of child labor and forced labor laws during the fiscal year 2023 [94]. - There were no significant violations of health and safety laws reported during the fiscal year 2023, nor any product recalls due to safety concerns [67]. Business Strategy and Outlook - The group adopted a cautious and prudent approach to manage its business amid geopolitical tensions, high inflation, and market uncertainties, reflecting a challenging operating environment [30]. - The group aims to achieve a stable return for its shareholders by continuously developing its business model to reduce operational risks [45]. - The company maintains a cautious optimism regarding its medium to long-term business outlook, despite ongoing geopolitical tensions and market uncertainties [200]. - Management plans to continue a prudent approach in managing the business and seeks new business and investment opportunities that are expected to bring long-term benefits [200]. - The company is evaluating investment opportunities in target companies within the financial sector to expand its business scale and diversify its revenue base [200]. Asset and Liability Management - Non-current assets increased significantly to HKD 183,432,000 from HKD 50,435,000, representing a growth of 264% year-over-year [117]. - Current assets decreased slightly to HKD 2,094,897,000 from HKD 2,189,628,000, a decline of approximately 4.3% [117]. - Cash and cash equivalents rose to HKD 1,312,947,000, up from HKD 1,005,561,000, marking an increase of 30.5% [117]. - Total liabilities decreased from HKD 48,039,000 to HKD 40,818,000, a reduction of about 15% [117]. - The net value of current assets was HKD 2,054,079,000, down from HKD 2,141,589,000, reflecting a decrease of approximately 4.1% [117]. - The total assets minus current liabilities increased to HKD 2,237,511,000 from HKD 2,192,024,000, an increase of about 2.1% [117]. - The company reported a significant increase in deferred tax assets to HKD 6,276,000 from HKD 1,315,000, a growth of 376% [117]. - Trade and other receivables decreased to HKD 127,183,000 from HKD 140,638,000, a decline of approximately 9.6% [117]. - The company has maintained goodwill at HKD 4,000,000, unchanged from the previous year [117]. - The company has recognized a new financial asset at fair value through other comprehensive income amounting to HKD 4,418,000, which was not present in the previous year [117].

Financial Performance - The company reported a revenue decrease of 78% to HKD 71,886,000 in the fiscal year 2023, down from HKD 323,579,000 in 2022, primarily due to reduced interest income from lending activities and a temporary halt in commodity trading with European clients[4]. - The company achieved a profit attributable to shareholders of HKD 26,788,000 in fiscal year 2023, compared to a loss of HKD 189,249,000 in 2022, mainly due to a reversal of impairment losses on receivables amounting to HKD 10,263,000[4]. - Total revenue for the year ended December 31, 2023, was HKD 71,886,000, a significant decrease from HKD 323,579,000 in 2022, representing a decline of approximately 77.8%[43]. - The company reported a profit of HKD 26,788,000 for the year ended December 31, 2023, a significant recovery from a loss of HKD 189,249,000 in the previous year[73]. - Basic earnings per share for the year were HKD 0.13, compared to a loss per share of HKD 0.93 in the previous year[35]. - The total comprehensive income attributable to shareholders was HKD 20,591,000, a recovery from a total comprehensive loss of HKD 223,831,000 in 2022[35]. Revenue Sources - Interest income increased by 374% to HKD 38,269,000, driven by higher cash reserves and rising bank deposit rates[33]. - Interest income from lending activities dropped to HKD 62,530,000 in 2023, down from HKD 123,523,000 in 2022, a decrease of 49.3%[43]. - Dividend income decreased to HKD 152,000 in 2023 from HKD 540,000 in 2022, reflecting a decline of 71.8%[43]. - Commission and fee income from securities brokerage fell to HKD 1,889,000 in 2023, compared to HKD 3,869,000 in 2022, a decline of 51.1%[43]. - The company’s interest income from banks rose to HKD 38,269,000 in 2023 from HKD 8,076,000 in 2022, an increase of approximately 373.5%[69]. Asset and Liability Management - The company's capital-to-debt ratio was approximately 3% in fiscal year 2023, up from 2% in 2022, with total liabilities of HKD 66,601,000 and equity attributable to shareholders of HKD 2,211,728,000[15]. - The company's total assets decreased slightly to HKD 2,237,511,000 from HKD 2,192,024,000 in the previous year[36]. - Total liabilities decreased to HKD 66,601,000 in 2023 from HKD 48,926,000 in 2022, a reduction of about 31.5%[91]. - The total amount of receivables, net of impairment provisions, was HKD 767,232,000 in 2023, down from HKD 1,020,598,000 in 2022, indicating a decrease of approximately 25%[100]. Impairment and Provisions - The company confirmed an impairment loss of HKD 11,519,000 on debt instruments measured at fair value through other comprehensive income, compared to HKD 7,301,000 in 2022[7]. - The company made a provision for impairment of receivables amounting to HKD 10,263,000 in 2023, compared to HKD 209,397,000 in 2022, indicating a significant reduction in impairment losses[77]. - The impairment provision for receivables decreased by 4% to HKD 486,136,000 in 2023 from HKD 507,116,000 in 2022[110]. Business Operations - The company continues to engage primarily in investment securities, trading, lending, and securities brokerage businesses as of December 31, 2023[104]. - The company’s loan portfolio was 99% secured by collateral as of December 31, 2023, with HKD 640,230,000 due within one year[11]. - The company’s commodity trading activities generated no revenue in fiscal year 2023, down from HKD 188,301,000 in 2022, with a profit of HKD 11,010,000 attributed to interest income from cash deposits[24]. Future Outlook - The group maintains a cautiously optimistic outlook on its medium to long-term business prospects despite geopolitical tensions and ongoing conflicts, including the Russia-Ukraine war and recent Israel-Hamas conflicts[134]. - The management will continue to adopt a prudent and rigorous approach to managing the group's business and seek new business and investment opportunities that are anticipated to bring long-term benefits[134]. - The group is evaluating multiple investment opportunities involving target companies in the financial industry to strengthen and diversify its business and revenue base[134].

Financial Performance - The total revenue for the group for the six months ended June 30, 2023, was HKD 20,465,000, compared to HKD 997,000 in the previous year, indicating a substantial growth[9]. - In the first half of 2023, the company recorded a revenue decrease of 80% to HKD 51,267,000, down from HKD 258,750,000 in the same period of 2022[127]. - Total revenue for the six months ended June 30, 2023, was HKD 51,267,000, a decrease of 80.2% compared to HKD 258,750,000 for the same period in 2022[185]. - Interest income decreased to HKD 50,284,000 from HKD 67,831,000, representing a decline of 26.0% year-over-year[185]. - The company reported a pre-tax loss of HKD 22,312,000, an improvement from a loss of HKD 72,582,000 in the previous year[185]. - The group recorded a significant reduction in loss attributable to owners, decreasing by 89% to HKD 11,996,000 for the first half of 2023, compared to HKD 104,350,000 for the same period in 2022[171]. - The company reported a loss attributable to owners of HKD 11,996,000 for the first half of 2023, compared to a loss of HKD 104,350,000 in the same period of 2022[127]. - Total comprehensive expenses amounted to HKD 14,759,000, a decrease from HKD 126,073,000 in the prior year[171]. Income and Expenses - The group's bank interest income for the six months ended June 30, 2023, was HKD 16,910,000, compared to HKD 666,000 for the same period in 2022, representing a significant increase[9]. - The group’s other income for the six months ended June 30, 2023, was HKD 3,555,000, compared to HKD 23,000 in the same period last year[9]. - The company achieved a turnaround in performance with a profit of HKD 4,489,000 in the first half of 2023, compared to a loss of HKD 19,023,000 in the previous year[162]. - The impairment loss provision decreased by 49% to HKD 40,614,000 in the first half of 2023, down from HKD 78,981,000 in the same period of 2022[162]. - The company confirmed an impairment loss of HKD 336,000 on debt instruments due to increased credit risk, compared to HKD 17,133,000 on June 30, 2022[118]. Assets and Liabilities - The group's total receivables from cash clients amounted to HKD 1,984,000, and from margin clients amounted to HKD 112,141,000 as of June 30, 2023[22]. - The group’s total receivables decreased from HKD 140,638,000 as of December 31, 2022, to HKD 129,416,000 as of June 30, 2023[22]. - The total liabilities for trade and other payables as of June 30, 2023, were HKD 36,625,000, a decrease from HKD 37,899,000 as of December 31, 2022, showing a reduction of 3.4%[49]. - The company's cash and cash equivalents amounted to HKD 1,059,588,000, an increase from HKD 1,005,561,000 as of December 31, 2022, representing a growth of approximately 5.4%[48]. - The total loan portfolio amounted to HKD 1,545,359,000, a slight increase of HKD 17,645,000 compared to the end of 2022[138]. - The net value of the loan portfolio, after deducting impairment provisions, was HKD 970,627,000, down from HKD 1,020,598,000 at the end of 2022[138]. - The company's deferred tax assets increased to HKD 2,806,000 as of June 30, 2023, compared to HKD 1,315,000 as of December 31, 2022, reflecting a growth of 113.1%[44]. Shareholder and Governance - The company’s major shareholders include Dr. Zheng Jiachun, holding approximately 16.67% of the issued shares, and Mr. Sun Cuhong, holding approximately 8.24%[61]. - The company has complied with all applicable code provisions of the Corporate Governance Code during the six months ended June 30, 2023[77]. - The board of directors' remuneration has been increased to HKD 250,000 per year for certain directors, effective January 1, 2023[79][80][84]. - The company has adopted the standard code as the code of conduct for securities transactions by its directors[78]. Market and Operational Insights - The company’s trading activities with European clients temporarily halted, resulting in no revenue from trading operations, which had generated HKD 188,301,000 in the previous year[120]. - The company aims to closely monitor the performance of its financial assets and explore business opportunities to improve results in the European commodity market[120]. - The company continues to adopt a prudent approach in managing its business amid ongoing geopolitical tensions and economic uncertainties[113]. - The group completed the acquisition of an asset management company licensed to conduct regulated activities, expected to create synergies with its brokerage business[171]. - The group plans to expand its fund management activities in equity, fixed income, and alternative investments[171]. Employee and Operational Costs - The group had 50 employees as of June 30, 2023, with total employee costs amounting to HKD 15,522,000, an increase from HKD 14,708,000 in the previous year[152]. - The company's short-term employee benefits for directors remained stable at HKD 3,535,000 for both 2023 and 2022[41]. Financial Instruments and Investments - The company's financial assets measured at fair value through profit or loss amounted to HKD 13,224,000, with a net loss of HKD 3,809,000 during the first half of 2023[156]. - The company's debt instruments measured at fair value through other comprehensive income totaled HKD 18,976,000, with no income generated during the first half of 2023[158]. - The company's financial assets portfolio is primarily composed of property, accounting for 97.60% of the total[157]. - The company has not purchased or sold any debt securities during the first half of 2023[158].

[Mid-term Results Announcement Overview](index=1&type=section&id=中期業績公告概覽) This announcement presents the unaudited condensed consolidated interim results of China Strategic Holdings Limited and its subsidiaries for the six months ended June 30, 2023, including financial statements and business review - This announcement publishes the unaudited condensed consolidated interim results of China Strategic Holdings Limited and its subsidiaries for the six months ended June 30, 2023[102](index=102&type=chunk) [Condensed Consolidated Statement of Profit or Loss and Other Comprehensive Income](index=1&type=section&id=簡明綜合損益及其他全面收益表) For the six months ended June 30, 2023, the company's revenue significantly decreased by 80% to HKD 51,267 thousand, and loss attributable to owners narrowed by 89% to HKD 11,996 thousand, primarily due to income tax credit and reduced fair value losses on financial assets Condensed Consolidated Statement of Profit or Loss and Other Comprehensive Income Summary | Metric | June 30, 2023 (HKD thousands) | June 30, 2022 (HKD thousands) | Change (%) | | :--- | :--- | :--- | :--- | | Revenue | 51,267 | 258,750 | -80.1% | | Loss before tax | (22,312) | (72,582) | -69.3% | | Income tax credit (expense) | 10,316 | (31,768) | N/A | | Loss for the period attributable to owners of the Company | (11,996) | (104,350) | -88.5% | | Total comprehensive expense for the period attributable to owners of the Company | (14,759) | (126,073) | -88.3% | | Basic loss per share | (0.06) HK cents | (0.51) HK cents | -88.2% | - Revenue significantly decreased by **80% to HKD 51,267 thousand**, primarily due to reduced interest income from money lending business and suspension of coke product trading activities[3](index=3&type=chunk)[42](index=42&type=chunk) - Loss attributable to owners significantly narrowed by **89% to HKD 11,996 thousand**, mainly due to reduced losses recognized from securities investments[42](index=42&type=chunk)[81](index=81&type=chunk) [Condensed Consolidated Statement of Financial Position](index=3&type=section&id=簡明綜合財務狀況表) As of June 30, 2023, the company's total assets slightly decreased, non-current assets significantly increased, while current assets and current liabilities both decreased, and net assets remained stable Condensed Consolidated Statement of Financial Position Summary | Metric | June 30, 2023 (HKD thousands) | December 31, 2022 (HKD thousands) | Change (%) | | :--- | :--- | :--- | :--- | | Total non-current assets | 291,855 | 50,435 | +478.7% | | Total current assets | 1,946,513 | 2,189,628 | -11.1% | | Total current liabilities | 46,894 | 48,039 | -2.4% | | Net current assets | 1,899,619 | 2,141,589 | -11.4% | | Total assets less current liabilities | 2,191,474 | 2,192,024 | -0.02% | | Net assets | 2,176,378 | 2,191,137 | -0.67% | | Total equity | 2,176,378 | 2,191,137 | -0.67% | - Total non-current assets significantly increased by **478.7% to HKD 291,855 thousand**, primarily due to an increase in the non-current portion of loans receivable[4](index=4&type=chunk)[123](index=123&type=chunk) - Total current assets decreased by **11.1% to HKD 1,946,513 thousand**, and total current liabilities slightly decreased by **2.4% to HKD 46,894 thousand**[4](index=4&type=chunk) [Notes to the Condensed Consolidated Financial Statements](index=4&type=section&id=簡明綜合財務報表附註) This section details the basis of preparation, significant accounting policies, revenue and results by business segment, other income and losses, finance costs, taxation, impairment provisions, dividend policy, loss per share, and specific details of various financial assets and liabilities [1. Basis of Preparation](index=4&type=section&id=1.%20編製基準) The condensed consolidated financial statements are prepared in accordance with HKAS 34 and Appendix 16 of the Listing Rules, measured at historical cost, with HKD as the functional currency - The condensed consolidated financial statements are prepared in accordance with Hong Kong Accounting Standard 34 "Interim Financial Reporting" issued by the HKICPA and the applicable disclosure requirements of Appendix 16 to the Listing Rules of the Stock Exchange of Hong Kong Limited[20](index=20&type=chunk) - The condensed consolidated financial statements have been prepared under the historical cost convention, except for certain financial instruments which are measured at fair value[5](index=5&type=chunk) - The financial statements are presented in Hong Kong Dollars, and all amounts have been rounded to the nearest thousand[112](index=112&type=chunk) [2. Significant Accounting Policies](index=4&type=section&id=2.%20主要會計政策) The accounting policies adopted in this interim period are consistent with the audited consolidated financial statements for 2022, with no significant impact from new HKFRS and amendments on financial position and performance - The accounting policies and methods of computation used in the preparation of the condensed consolidated financial statements for the six months ended June 30, 2023, are consistent with those presented in the audited consolidated financial statements of the Group for the year ended December 31, 2022[21](index=21&type=chunk) - The application of new and revised Hong Kong Financial Reporting Standards and amendments during this interim period has had no significant impact on the financial position and performance of the Group and/or the disclosures contained in the condensed consolidated financial statements for the current and prior periods[6](index=6&type=chunk) [3. Revenue](index=5&type=section&id=3.%20收入) Total revenue for the period was HKD 51,267 thousand, a significant decrease from the same period last year, mainly due to zero revenue from coke product trading and reduced interest income from money lending business Revenue Breakdown | Revenue Category | June 30, 2023 (HKD thousands) | June 30, 2022 (HKD thousands) | Change (%) | | :--- | :--- | :--- | :--- | | Coke product trading | – | 188,301 | -100% | | Arrangement fee income from money lending business | – | 200 | -100% | | Commission and handling fee income from securities brokerage business | 983 | 2,418 | -59.3% | | Interest income from securities margin financing business | 3,697 | 3,562 | +3.8% | | Interest income from money lending business | 46,587 | 64,269 | -27.5% | | **Total Revenue** | **51,267** | **258,750** | **-80.1%** | - Revenue from coke product trading decreased from HKD 188,301 thousand to **zero**, which is the primary reason for the overall revenue decline[7](index=7&type=chunk) - Interest income from money lending business decreased by **27.5% to HKD 46,587 thousand**[7](index=7&type=chunk) [4. Segment Information](index=5&type=section&id=4.%20分類資料) The Group primarily operates in securities investment, trading, money lending, and securities brokerage businesses. In the first half of 2023, money lending and securities brokerage businesses achieved segment profit, while securities investment recorded a loss, and trading business turned profitable Segment Revenue and Results | Business Segment | June 30, 2023 Segment Revenue (HKD thousands) | June 30, 2023 Segment Results (HKD thousands) | June 30, 2022 Segment Revenue (HKD thousands) | June 30, 2022 Segment Results (HKD thousands) | | :--- | :--- | :--- | :--- | :--- | | Securities Investment | – | (12,166) | – | (21,280) | | Trading | – | 5,118 | 188,301 | 626 | | Money Lending | 46,587 | 4,489 | 64,469 | (19,023) | | Securities Brokerage | 4,680 | 4,859 | 5,980 | 4,449 | | **Total** | **51,267** | **2,300** | **258,750** | **(35,228)** | - Trading business profit significantly increased from HKD 626 thousand in the same period of 2022 to **HKD 5,118 thousand** in the first half of 2023, despite zero revenue[26](index=26&type=chunk) - Money lending business turned profitable, from a loss of HKD 19,023 thousand in the same period of 2022 to a profit of **HKD 4,489 thousand** in the first half of 2023[26](index=26&type=chunk) [5. Other Income](index=7&type=section&id=5.%20其他收入) Total other income for the first half of 2023 amounted to HKD 20,465 thousand, primarily contributed by bank interest income, representing a significant increase from the same period last year Other Income Breakdown | Income Category | June 30, 2023 (HKD thousands) | June 30, 2022 (HKD thousands) | Change (%) | | :--- | :--- | :--- | :--- | | Bank interest income | 16,910 | 666 | +2439.1% | | Government subsidies | – | 308 | -100% | | Others | 3,555 | 23 | +15356.5% | | **Total** | **20,465** | **997** | **+1952.7%** | - Bank interest income significantly increased from HKD 666 thousand to **HKD 16,910 thousand**, being the main driver of other income growth[10](index=10&type=chunk) [6. Other Gains and Losses, Net](index=7&type=section&id=6.%20其他收益及虧損%EF%BC%8C淨額) In the first half of 2023, the company recorded a net loss of HKD 1 thousand from other gains and losses, primarily affected by exchange losses, compared to a gain of HKD 243 thousand in the same period last year Other Gains and Losses, Net | Category | June 30, 2023 (HKD thousands) | June 30, 2022 (HKD thousands) | | :--- | :--- | :--- | | Gain on disposal of property, plant and equipment | – | 9 | | Gain on termination of leases | – | 213 | | Exchange (loss) gain, net | (1) | 21 | | **Total** | **(1)** | **243** | - Net exchange loss was **HKD 1 thousand**, compared to a gain of HKD 21 thousand in the same period last year[27](index=27&type=chunk) [7. Net Loss on Financial Assets at Fair Value Through Profit or Loss](index=7&type=section&id=7.%20透過損益按公允值列賬之金融資產之淨虧損) In the first half of 2023, the net loss on financial assets at fair value through profit or loss was HKD 3,809 thousand, a slight decrease from HKD 3,933 thousand in the same period last year Unrealized Net Loss on Financial Assets at Fair Value Through Profit or Loss | Metric | June 30, 2023 (HKD thousands) | June 30, 2022 (HKD thousands) | Change (%) | | :--- | :--- | :--- | :--- | | Unrealized net loss | 3,809 | 3,933 | -3.2% | - The unrealized net loss was primarily due to a decrease in the fair value of the listed equity securities portfolio[65](index=65&type=chunk) [8. Finance Costs](index=8&type=section&id=8.%20融資成本) Finance costs significantly decreased to HKD 289 thousand in the first half of 2023, mainly due to the full redemption of interest-bearing notes in the previous period, resulting in zero interest on notes payable Finance Costs Breakdown | Category | June 30, 2023 (HKD thousands) | June 30, 2022 (HKD thousands) | Change (%) | | :--- | :--- | :--- | :--- | | Interest on discounted bills receivable with full recourse | – | 38 | -100% | | Interest on notes payable | – | 12,726 | -100% | | Interest on lease liabilities | 289 | 191 | +51.3% | | **Total** | **289** | **12,955** | **-97.8%** | - Interest on notes payable decreased from HKD 12,726 thousand to **zero**, which is the primary reason for the significant decline in finance costs[14](index=14&type=chunk)[96](index=96&type=chunk) [9. Income Tax Credit (Expense)](index=8&type=section&id=9.%20所得稅抵免%EF%BC%88開支%EF%BC%89) In the first half of 2023, the company recorded an income tax credit of HKD 10,316 thousand, compared to an expense of HKD 31,768 thousand in the same period last year, primarily due to changes in current and deferred tax Income Tax Credit (Expense) Breakdown | Category | June 30, 2023 (HKD thousands) | June 30, 2022 (HKD thousands) | | :--- | :--- | :--- | | Current tax | 8,825 | (2,884) | | Deferred tax | 1,491 | (28,884) | | **Income tax credit (expense) recognized in profit or loss** | **10,316** | **(31,768)** | - Under the two-tiered profits tax regime in Hong Kong, the first HKD 2 million of assessable profits are taxed at **8.25%**, and the remainder at **16.5%**[15](index=15&type=chunk)[119](index=119&type=chunk) [10. Loss for the Period](index=9&type=section&id=10.%20本期間虧損) The loss for the period was HKD 11,996 thousand, primarily influenced by a reduction in impairment loss provisions, with a significant decrease in impairment provision for loans receivable Loss for the Period Composition | Category | June 30, 2023 (HKD thousands) | June 30, 2022 (HKD thousands) | Change (%) | | :--- | :--- | :--- | :--- | | Impairment provision for debt instruments at fair value through other comprehensive income | 336 | 17,133 | -98.0% | | Impairment provision for loans receivable | 40,614 | 78,981 | -48.6% | | Impairment provision for other receivables | 8,069 | – | N/A | | **Total impairment losses** | **49,019** | **96,114** | **-49.0%** | | Depreciation of property, plant and equipment | 1,411 | 1,481 | -4.7% | | Depreciation of right-of-use assets | 4,506 | 3,728 | +20.9% | - Impairment provision for loans receivable significantly decreased by **48.6% to HKD 40,614 thousand**[16](index=16&type=chunk)[34](index=34&type=chunk) - The loss for the period was **HKD 11,996 thousand**, a significant reduction from HKD 104,350 thousand in the same period last year[53](index=53&type=chunk) [11. Dividends](index=9&type=section&id=11.%20股息) The Board of Directors decided not to declare any dividends for the six months ended June 30, 2023, consistent with the same period last year - No dividends were paid, declared, or proposed during this interim period (June 30, 2022: nil)[16](index=16&type=chunk)[30](index=30&type=chunk)[40](index=40&type=chunk) [12. Loss Per Share](index=9&type=section&id=12.%20每股虧損) For the six months ended June 30, 2023, basic loss per share was HKD 0.06 cents, a significant narrowing from HKD 0.51 cents in the same period last year, with no dilutive potential Basic Loss Per Share | Metric | June 30, 2023 | June 30, 2022 | Change (%) | | :--- | :--- | :--- | :--- | | Loss for the period attributable to owners of the Company (HKD thousands) | 11,996 | 104,350 | -88.5% | | Weighted average number of ordinary shares (thousands) | 20,385,254 | 20,385,254 | 0% | | **Basic loss per share (HK cents)** | **(0.06)** | **(0.51)** | **-88.2%** | - Diluted loss per share is not presented as there were no ordinary shares with dilutive potential outstanding during the current and prior periods[31](index=31&type=chunk) [13. Debt Instruments at Fair Value Through Other Comprehensive Income](index=10&type=section&id=13.%20透過其他全面收益按公允值列賬之債務工具) As of June 30, 2023, the portfolio value of these debt instruments was HKD 18,976 thousand, primarily debt securities listed overseas, with an impairment loss of HKD 336 thousand recognized in the current period Debt Instruments at Fair Value Through Other Comprehensive Income | Metric | June 30, 2023 (HKD thousands) | December 31, 2022 (HKD thousands) | Change (%) | | :--- | :--- | :--- | :--- | | Listed investments, at fair value | 18,976 | 22,077 | -14.1% | | Current portion | 18,976 | – | N/A | | Non-current portion | – | 22,077 | -100% | - An impairment provision of **HKD 336 thousand** was recognized in this interim period, a significant decrease from HKD 17,133 thousand in the same period last year[32](index=32&type=chunk) - The debt instrument was issued by a mainland property company, with increased expected losses due to the issuer's default on interest and principal payments[48](index=48&type=chunk) [14. Loans Receivable](index=11&type=section&id=14.%20應收貸款) As of June 30, 2023, the total carrying amount of loans receivable was HKD 1,545,359 thousand, with a net value of HKD 970,627 thousand after impairment provisions, of which 99% are secured and primarily due within one year Loans Receivable Breakdown | Metric | June 30, 2023 (HKD thousands) | December 31, 2022 (HKD thousands) | Change (%) | | :--- | :--- | :--- | :--- | | Fixed-rate loans receivable | 1,545,359 | 1,527,714 | +1.15% | | Less: Impairment provision | (574,732) | (507,116) | +13.3% | | **Net Value** | **970,627** | **1,020,598** | **-4.89%** | | Current portion | 720,222 | 1,020,598 | -29.4% | | Non-current portion | 250,405 | – | N/A | | Secured | 959,913 | 1,010,076 | -5.0% | | Unsecured | 10,714 | 10,522 | +1.8% | - The impairment provision balance increased by **13% to HKD 574,732 thousand**, with HKD 41,112 thousand being the impairment provision for this interim period[77](index=77&type=chunk) - **99%** of the loan portfolio is secured, primarily by properties, listed equity securities, and debt securities in Hong Kong[78](index=78&type=chunk) [15. Trade and Other Receivables](index=12&type=section&id=15.%20應收貿易及其他款項) As of June 30, 2023, total trade and other receivables amounted to HKD 129,416 thousand, mainly comprising trade receivables from margin clients in the securities brokerage business, with an impairment provision of HKD 8,069 thousand made for other receivables in the current period Trade and Other Receivables Breakdown | Category | June 30, 2023 (HKD thousands) | December 31, 2022 (HKD thousands) | Change (%) | | :--- | :--- | :--- | :--- | | Trade receivables from securities brokerage business | 114,125 | 118,408 | -3.6% | | Other receivables | 15,291 | 22,230 | -31.2% | | **Total** | **129,416** | **140,638** | **-8.0%** | - An impairment provision of **HKD 8,069 thousand** was made for other receivables in this interim period (June 30, 2022: nil)[58](index=58&type=chunk) - The market value of securities pledged by margin clients was **HKD 586,865 thousand**, exceeding the receivables, thus no impairment provision was made[57](index=57&type=chunk)[94](index=94&type=chunk) [16. Financial Assets at Fair Value Through Profit or Loss](index=13&type=section&id=16.%20透過損益按公允值列賬之金融資產) As of June 30, 2023, these financial assets primarily consisted of listed equity securities in Hong Kong, valued at HKD 13,224 thousand, all classified as current portion Financial Assets at Fair Value Through Profit or Loss | Metric | June 30, 2023 (HKD thousands) | December 31, 2022 (HKD thousands) | Change (%) | | :--- | :--- | :--- | :--- | | Listed equity securities in Hong Kong | 13,224 | 17,033 | -22.4% | | Current portion | 13,224 | 17,033 | -22.4% | - The fair value of listed equity securities is determined based on the market closing prices reported by the Stock Exchange of Hong Kong Limited[60](index=60&type=chunk) [17. Trade and Other Payables](index=13&type=section&id=17.%20應付貿易及其他款項) As of June 30, 2023, total trade and other payables amounted to HKD 36,625 thousand, mainly comprising trade payables from securities brokerage business and accrued expenses Trade and Other Payables Breakdown | Category | June 30, 2023 (HKD thousands) | December 31, 2022 (HKD thousands) | Change (%) | | :--- | :--- | :--- | :--- | | Trade payables from securities brokerage business | 21,138 | 17,850 | +18.4% | | Accrued expenses and other payables | 15,487 | 20,049 | -22.7% | | **Total** | **36,625** | **37,899** | **-3.4%** | - Trade payables from securities brokerage business generally have a settlement period of two days after the transaction date[61](index=61&type=chunk) [Business Review](index=14&type=section&id=業務回顧) In the first half of 2023, the Group continued to primarily engage in securities investment, coke product trading, money lending, and securities brokerage businesses amidst a challenging macroeconomic environment, adopting a cautious and prudent approach to business management, with varied performance across segments [Securities Investment](index=14&type=section&id=投資證券) The Group's securities investments include Hong Kong listed equity securities and overseas listed debt securities, recording an overall loss of HKD 12,166 thousand, but narrowing from the same period last year. The company closely monitors portfolio performance and adjusts investment strategies based on market conditions - Overall securities investment recorded a loss of **HKD 12,166 thousand**, which narrowed from HKD 21,280 thousand in the same period last year[42](index=42&type=chunk)[65](index=65&type=chunk) - Investment decisions are made with reference to target company financial information, market news, investment analysis reports, and macroeconomic outlook[42](index=42&type=chunk) - Long-term investments primarily focus on capital appreciation and dividend/interest income, while non-long-term investments focus on trading gains[43](index=43&type=chunk) [Financial Assets at Fair Value Through Profit or Loss (Securities Investment)](index=15&type=section&id=透過損益按公允值列賬之金融資產%20%28投資證券%29) As of June 30, 2023, this portfolio was valued at HKD 13,224 thousand, primarily invested in property and other sector companies, with an unrealized net loss of HKD 3,809 thousand recognized in the current period Financial Assets at Fair Value Through Profit or Loss Portfolio Composition | Company Category | Proportion of Portfolio Market Value/Fair Value (%) | | :--- | :--- | | Property | 97.60 | | Other | 2.40 | | **Total** | **100.00** | - This portfolio generated **no revenue** in the first half of 2023[65](index=65&type=chunk) - A net loss of **HKD 3,809 thousand** was recognized, mainly due to a decrease in the fair value of the listed equity securities portfolio[65](index=65&type=chunk) [Debt Instruments at Fair Value Through Other Comprehensive Income (Securities Investment)](index=16&type=section&id=透過其他全面收益按公允值列賬之債務工具%20%28投資證券%29) As of June 30, 2023, this debt instrument portfolio was valued at HKD 18,976 thousand, with an impairment loss of HKD 336 thousand recognized in the current period, primarily due to increased expected losses from a mainland property company's bond default - This portfolio generated **no revenue** in the first half of 2023[47](index=47&type=chunk) - An impairment loss of **HKD 336 thousand** was recognized, mainly due to increased credit risk of debt instruments, particularly the default of a mainland property company's bond[48](index=48&type=chunk) Overseas Debt Securities Investment Details | Company Category | Approximate Proportion of Total Assets Carrying Amount (%) | Yield to Maturity at Purchase (%) | Purchase Cost (HKD thousands) | Carrying Amount as of January 1, 2023 (HKD thousands) | Market Value/Fair Value as of June 30, 2023 (HKD thousands) | Cumulative Fair Value Loss (HKD thousands) | Fair Value Loss Recognized in Current Period (HKD thousands) | | :--- | :--- | :--- | :--- | :--- | :--- | :--- | :--- | | Property | 0.85 | 9.50 | 312,000 | 22,077 | 18,976 | (293,024) | (3,101) | [Trading](index=17&type=section&id=貿易) In the first half of 2023, the trading business generated no revenue due to the suspension of commodity trading activities with European clients, but recorded a profit of HKD 5,118 thousand, mainly from interest income on bank credit financing guarantees - Trading business revenue was **zero** (June 30, 2022: HKD 188,301 thousand), primarily due to the suspension of commodity trading activities with European clients[70](index=70&type=chunk) - Business profit was **HKD 5,118 thousand**, mainly from interest income earned on reserved cash deposits[70](index=70&type=chunk) - Management will continue to monitor the European commodity market and explore business opportunities to improve performance[70](index=70&type=chunk) [Money Lending](index=17&type=section&id=放債) Money lending business revenue decreased by 28% to HKD 46,587 thousand, but due to a 49% reduction in impairment loss provisions, the business turned profitable, recording a profit of HKD 4,489 thousand. The company strictly monitors its loan portfolio, with 99% of loans being secured - Money lending business revenue decreased by **28% to HKD 46,587 thousand**, primarily due to a decrease in the average amount of performance loans advanced to borrowers[76](index=76&type=chunk) - The business turned profitable, recording a profit of **HKD 4,489 thousand** (June 30, 2022: loss of HKD 19,023 thousand), mainly due to a **49% reduction** in impairment loss provisions to HKD 40,614 thousand[76](index=76&type=chunk) - The total carrying amount of the loan portfolio slightly increased to **HKD 1,545,359 thousand**, and management remains prudent in granting new loans[52](index=52&type=chunk) Loan Portfolio Borrower Categories and Maturity Dates | Borrower Category | Approximate Proportion of Loan Portfolio (%) | Annual Interest Rate (%) | Maturity Date | | :--- | :--- | :--- | :--- | | Individual | 26.16 | 9.50 - 18.00 | Within one year | | Corporate | 48.04 | 8.00 - 18.00 | Within one year | | Corporate | 25.80 | 8.50 - 12.00 | After one year but within three years | | **Total** | **100.00** | | | [Securities Brokerage](index=19&type=section&id=證券經紀) Securities brokerage business revenue decreased by 22% to HKD 4,680 thousand, mainly due to a decline in brokerage commission income amid weakening investment sentiment, but margin financing interest income increased, and bank interest income grew significantly, leading to a slight 9% increase in business profit to HKD 4,859 thousand - Business revenue decreased by **22% to HKD 4,680 thousand**, primarily due to a **59% decrease** in brokerage commission income to HKD 983 thousand[79](index=79&type=chunk) - Margin financing interest income increased by **4% to HKD 3,697 thousand**, partially offsetting the decline in commission income[79](index=79&type=chunk) - Business profit slightly increased by **9% to HKD 4,859 thousand**, mainly benefiting from a more than **10-fold increase** in bank interest income to HKD 1,902 thousand[79](index=79&type=chunk)[80](index=80&type=chunk) - The Group has completed the acquisition of an asset management company and plans to engage in fund management activities to generate synergistic benefits[80](index=80&type=chunk) [Financial Review](index=20&type=section&id=財務回顧) The Group's loss significantly narrowed in the first half of 2023, demonstrating strong liquidity, a low gearing ratio, and a robust financial position [Overall Results](index=20&type=section&id=整體業績) In the first half of 2023, loss attributable to owners of the Group decreased by 89% to HKD 11,996 thousand, with basic loss per share of HKD 0.06 cents, primarily due to reduced securities investment losses - Loss attributable to owners decreased by **89% to HKD 11,996 thousand**[81](index=81&type=chunk) - Basic loss per share was **HKD 0.06 cents**, a significant narrowing from HKD 0.51 cents in the same period last year[81](index=81&type=chunk) - The Group recorded total comprehensive expense attributable to owners of **HKD 14,759 thousand**, including a net fair value loss of HKD 3,101 thousand on debt securities[81](index=81&type=chunk) [Liquidity, Financial Resources and Capital Structure](index=20&type=section&id=流動資金%EF%BC%8C財務資源及資本架構) The Group maintains strong liquidity with a current ratio of approximately 41.5 times and a gearing ratio of approximately 3%, possessing sufficient financial resources to meet operational needs - Current assets amounted to **HKD 1,946,513 thousand**, and quick assets to **HKD 1,053,158 thousand**[94](index=94&type=chunk) - The current ratio was approximately **41.5 times** (December 31, 2022: 45.6 times), indicating strong liquidity[83](index=83&type=chunk)[92](index=92&type=chunk)[94](index=94&type=chunk) - The gearing ratio was approximately **3%** (December 31, 2022: 2%), reflecting a low level of financial leverage[84](index=84&type=chunk) - Equity attributable to owners of the Company was **HKD 2,176,378 thousand**, approximately **HKD 10.68 cents per share**[95](index=95&type=chunk) [Prospects](index=21&type=section&id=前景) Facing global economic uncertainties, high inflation, and geopolitical tensions, the Group will continue to prudently manage its businesses and actively evaluate new business and investment opportunities in the financial industry to expand its business scale and diversify its revenue base - The macroeconomic environment remains challenging, including geopolitical tensions, high inflation, interest rate hikes, and a slow economic recovery in Hong Kong[85](index=85&type=chunk) - The Group will continue to manage its businesses with a cautious and prudent approach, and explore new business and investment opportunities expected to bring long-term benefits[85](index=85&type=chunk) - Management is evaluating investment opportunities in the financial industry, aiming to expand business scale and diversify the revenue base[85](index=85&type=chunk) [Corporate Governance](index=22&type=section&id=企業管治) The company complied with all applicable code provisions of the Corporate Governance Code set out in Appendix 14 of the Listing Rules during the reporting period, and the condensed consolidated financial statements have been reviewed by the Audit Committee and the auditor - The Company has complied with all applicable code provisions of the Corporate Governance Code set out in Appendix 14 to the Listing Rules[86](index=86&type=chunk) - The condensed consolidated financial statements have been reviewed by the Audit Committee and the auditor, Deloitte Touche Tohmatsu[86](index=86&type=chunk) [Other Information](index=22&type=section&id=其他資料) During the reporting period, the company and its subsidiaries did not purchase, sell, or redeem any listed securities. The composition of the Board of Directors is listed [Purchase, Sale or Redemption of the Company's Listed Securities](index=22&type=section&id=購買%EF%BC%8C出售或贖回本公司之上市證券) During the six months ended June 30, 2023, neither the company nor any of its subsidiaries purchased, sold, or redeemed any of the company's listed securities - During the six months ended June 30, 2023, neither the Company nor any of its subsidiaries purchased, sold, or redeemed any of the Company’s listed securities[87](index=87&type=chunk) [Board of Directors](index=22&type=section&id=董事會成員) As of the date of this announcement, the Board of Directors comprises one non-executive chairman, three executive directors, and four independent non-executive directors - The Board of Directors includes Dr. Ko Ching Fai (Chairman, Non-executive Director); Mr. So Ka Lok (Chief Executive Officer, Executive Director), Mr. Chow Kam Wah and Mr. Chow Man Wai (Executive Directors); and Ms. Ma Yin Fan, Mr. Chow Yu Chun, Mr. Leung Hoi Ying and Mr. Lam Kin Fung (Independent Non-executive Directors)[88](index=88&type=chunk)