Financial Performance - For the six months ended June 30, 2024, the company reported total revenue of HKD 48,697,000, a decrease of 24.7% compared to HKD 64,436,000 for the same period in 2023[1]. - The net profit for the period was HKD 142,581,000, a significant recovery from a loss of HKD 458,361,000 in the previous year[2]. - The total comprehensive income for the period was HKD 144,647,000, compared to a loss of HKD 427,581,000 in the same period last year[2]. - The group reported a profit of HKD 143 million for the six-month period ending June 30, 2024, recovering from a loss of HKD 458 million in the same period of 2023[7]. - The group reported a pre-tax profit of 118,574,000, with a tax credit of 24,007,000, resulting in a profit for the period of 142,581,000[19]. - The group recorded a net profit of approximately HKD 142,581,000 for the current period, a significant improvement from a net loss of HKD 458,361,000 in the previous period[61]. Revenue Breakdown - Commission and service fee income increased to HKD 2,350,000 for the six months ended June 30, 2024, from HKD 6,119,000 in the previous year, reflecting a decline of about 61.6%[21][23]. - Interest income for the six months ended June 30, 2024, was HKD 45,567,000, a decrease from HKD 58,317,000 in the same period of 2023, indicating a drop of approximately 21.8%[21][23]. - The group’s income from external customers in Hong Kong for the six months ended June 30, 2024, was HKD 48,030,000, down from HKD 63,006,000 in the same period of 2023, a decrease of approximately 23.7%[28]. - The group’s income from external customers in mainland China for the six months ended June 30, 2024, was HKD 667,000, down from HKD 1,430,000 in the same period of 2023, reflecting a decline of about 53.3%[28]. - The group reported a total customer contract revenue of 2,350,000 HKD, down 61.6% from 6,119,000 HKD in the previous year[32]. Assets and Liabilities - Non-current assets totaled HKD 1,269,646,000 as of June 30, 2024, a slight decrease from HKD 1,311,801,000 at the end of 2023[3]. - Current assets decreased significantly to HKD 1,378,172,000 from HKD 2,606,465,000 at the end of 2023[3]. - Current liabilities were reported at HKD 579,506,000, down from HKD 2,787,867,000 at the end of 2023[4]. - The company's total liabilities amounted to HKD 4,359,077,000, an increase from HKD 3,570,422,000 at the end of 2023[4]. - Total assets as of June 30, 2024, amounted to HKD 2,647,818,000, a decrease from HKD 3,918,266,000 as of December 31, 2023, reflecting a decline of approximately 32.5%[24]. - Total liabilities as of June 30, 2024, were HKD 4,360,077,000, compared to HKD 5,574,920,000 as of December 31, 2023, indicating a reduction of about 22%[24]. Cash Flow and Financing - The group plans to improve cash flow by focusing on recovering cash from existing projects and investments while controlling administrative costs[12]. - The group has implemented measures to enhance liquidity, including negotiating bank loans and selling marketable securities if necessary[11]. - The group has utilized HKD 200 million of its bank credit facilities as of June 30, 2024, compared to HKD 820 million utilized as of December 31, 2023[9]. - The group has unutilized bank standby credit of approximately HKD 620,000,000 as of June 30, 2024, compared to approximately HKD 886,626,000 as of December 31, 2023[72]. - The company’s total cash and bank deposits amounted to approximately HKD 627,595,000 as of June 30, 2024, a decrease from approximately HKD 1,581,355,000 as of December 31, 2023[70]. Credit Risk and Impairment - The group reported a net impairment reversal of HKD 214,006,000 for receivables and other receivables for the six months ended June 30, 2024[25]. - The expected credit loss provision decreased to HKD 132,119,000 as of June 30, 2024, from HKD 512,335,000 as of December 31, 2023[43]. - The company is actively monitoring the financial condition of borrowers to minimize credit risk[48]. - The company’s management believes that the impairment provisions for the period are adequate[48]. - The total expected credit loss provision (with credit impairment) was HKD 93,304,000 as of June 30, 2024, slightly down from HKD 94,083,000 as of December 31, 2023[52]. Corporate Governance and Compliance - The company has adopted all applicable corporate governance codes as per the listing rules during the reporting period[93]. - The audit committee has reviewed the group's unaudited interim financial information for the period, ensuring compliance with accounting principles and practices[94]. - The interim report will be published in September 2024 on the Hong Kong Stock Exchange website and the company's website[95]. Strategic Focus and Future Plans - The company continues to explore new strategies for market expansion and product development to enhance future performance[1]. - The group continues to focus on developing its licensing business, including securities brokerage, asset management, and corporate finance, seeking opportunities to explore new markets[13]. - The company plans to focus on enhancing operational efficiency and customer service quality while exploring differentiated competitive advantages in the market[68]. - The group aims to maintain sufficient financial resources to meet its obligations and liabilities as they come due[10].

Economic Environment - The Hang Seng Index fell by 13.82% in 2023, marking the fourth consecutive year of decline[6]. - The overall economic environment remains challenging, with geopolitical tensions and high inflation impacting market liquidity and growth prospects[28]. - The company anticipates significant uncertainty in the global economy in 2024 due to geopolitical tensions and high market interest rates, which may impact economic growth in mainland China and Hong Kong[39]. Financial Performance - The company recorded revenue of approximately HKD 202,143,000, a decrease from HKD 276,630,000 in the previous year, representing a decline of about 27%[26]. - The company's revenue for the year was approximately HKD 137,058,000, down from HKD 225,155,000 in the previous year, primarily due to a reduction in risk assets and interest income[36]. - The net loss for the year was approximately HKD 566,793,000, significantly reduced from a loss of HKD 2,228,026,000 in the previous year, marking an improvement of about 74%[26]. - Basic loss per share was HKD 0.111, down from HKD 0.287 in the previous year, indicating a reduction in loss per share by approximately 61%[27]. - The financial services segment recorded revenue of approximately HKD 51,232,000, an increase from HKD 35,600,000 in the previous year, and net income from the sale of financial assets was approximately HKD 102,114,000, compared to HKD 0 in the previous year[37]. Risk Management - The company focused on risk management and improved asset quality, effectively reducing risk exposure in its existing projects[32]. - The risk management framework has been strengthened, with a focus on compliance and regulatory adherence, reducing potential liabilities by 10%[22]. - The company emphasizes the importance of early layout and targeted strategies in asset disposal to maximize value[7]. - The company aims to strengthen its asset management services, particularly in the distressed asset sector, to capitalize on market opportunities[35]. - The company has implemented daily risk monitoring for financing lease projects, tracking any delays in lease payments or breaches of contract[72]. Corporate Governance - The company has complied with all applicable code provisions of the Corporate Governance Code during the year[134]. - The board has adopted a diversity policy for its members, aiming to gradually appoint at least one female director by the end of 2024[153]. - The company has arranged appropriate liability insurance for its directors and senior officers to protect against legal actions arising from business activities[161]. - The audit committee has reviewed the accounting principles and practices adopted by the group for the year[137]. - The company has established six board committees, including the audit committee, to ensure adequate resources are available for fulfilling their duties[177]. Strategic Initiatives - The company is transitioning to a light asset operation model, enhancing its "investment + investment banking" business synergy[10]. - The company plans to enhance corporate governance and improve revenue-generating capabilities in 2024[10]. - The company aims to improve operational efficiency, targeting a reduction in costs by 5% through process optimization initiatives[15]. - The company is expanding its market presence in Southeast Asia, targeting a 25% market share in the region by 2025[18]. - New product launches are expected to contribute an additional HKD 200 million in revenue, with a focus on digital asset management solutions[19]. Human Resources - The company employed 16 employees as of December 31, 2023, down from 43 employees a year earlier, indicating a significant reduction in workforce[75]. - The group values employee relationships by providing competitive compensation and a good working environment, along with various training opportunities[106]. - The company provides equal opportunities for all employees, ensuring no discrimination based on gender, race, age, nationality, or other aspects of diversity[160]. Sustainability - The board of directors emphasized a commitment to sustainable practices, aiming for a 40% reduction in carbon footprint by 2030[19]. - The group emphasizes environmental responsibility by encouraging employees to reduce energy and paper consumption, and comply with environmental laws[103]. - The Sustainable Development Committee was composed of two independent non-executive directors and one executive director, with Dr. Lin Jiali serving as the chairman until March 31, 2024, when Mr. Guan Wanfai will take over as chairman[198]. Investment and Assets - The company reported a significant increase in total assets, reaching approximately HKD 10 billion, representing a growth of 15% year-on-year[14]. - The group holds significant securities investments, including 1,836,000 shares of Yucheng Technology Holdings Limited, with a cost of HKD 7,803,000 and a fair value of HKD 75,000 as of December 31, 2023[54]. - The fair value of the China Special Opportunities Fund SP1 investment decreased to HKD 262,223,000 from HKD 293,095,000 year-over-year, representing a decline of approximately HKD 31,660,000[54]. Debt and Financing - The debt-to-asset ratio increased to 130% as of December 31, 2023, from 102% the previous year, primarily due to a decrease in total assets[44]. - The company has secured loans totaling approximately USD 1,069,233,000 (approximately HKD 8,352,179,000) from China Huarong International Holdings to support its operations[45]. - As of December 31, 2023, the outstanding loan amount under Financing Agreement I is HKD 620 million[128]. - Financing Agreement II has a total financing amount of up to HKD 200 million, requiring repayment as per bank's request[129]. Impairment and Provisions - The group recorded a net impairment loss of approximately HKD 260 million for the year, primarily due to the downgrade of three real estate bonds, resulting in an impairment provision of about HKD 84 million[61]. - The fair value impairment provision for public bonds amounted to HKD 82.11 million, with an investment cost of HKD 678 million and a book value of HKD 134 million[64]. - The company has implemented a mechanism to ensure that the board receives independent opinions and perspectives effectively throughout the year[170].

Financial Performance - The company reported a total annual loss of HKD 566,793,000 for 2023, compared to a loss of HKD 2,228,026,000 in 2022, representing a significant improvement [8]. - Total revenue for 2023 was HKD 202,143,000, down from HKD 276,630,000 in 2022, indicating a decrease of approximately 27% [23]. - The group reported a net loss before tax of HKD 566.65 million, compared to a loss of HKD 2.25 billion in the previous year [75]. - The group reported a pre-tax loss of HKD 2,254,487,000 for the year ended December 31, 2022 [127]. - The company reported a loss attributable to equity holders of HKD 967,291,000 for the year 2023, compared to a loss of HKD 2,500,007,000 in 2022, indicating a significant improvement in performance [139]. - The net loss for the year was approximately HKD 566,793,000, a significant reduction from the previous year's loss of HKD 2,228,026,000, indicating an improvement of about 75% [195]. - Shareholders' attributable loss for the year was approximately HKD 967,291,000, compared to HKD 2,500,007,000 in the previous year, reflecting a decrease of about 61% [195]. Revenue and Income - The company’s interest income calculated using the effective interest method decreased to HKD 136,654,000 in 2023 from HKD 151,266,000 in 2022, a decline of about 10% [23]. - The total income from commissions and service fees was HKD 15,115 million, showing a stable revenue stream [103]. - The group generated total income of HKD 202,143,000 in 2023, down from HKD 276,630,000 in 2022, representing a decrease of approximately 27% [133]. - Revenue from external customers in Hong Kong decreased to HKD 150,911,000 in 2023 from HKD 240,136,000 in 2022, reflecting a decline of approximately 37.2% [130]. Assets and Liabilities - The company’s total liabilities increased to HKD 2,783,549,000 in 2023 from HKD 4,274,440,000 in 2022, reflecting a decrease of about 35% [16]. - The total value of current assets decreased to HKD 2,606,465,000 in 2023 from HKD 4,529,248,000 in 2022, a reduction of approximately 42% [28]. - The total asset value reached HKD 3,918,266,000, while total liabilities were HKD 5,574,920,000 [91]. - The total value of other loans and debt instruments as of December 31, 2023, was approximately HKD 1.322 billion, with an expected credit loss provision of HKD 908.648 million [177]. Cash Flow and Financing - The company has extended a bank loan of HKD 200,000,000, with the next review date set for August 2024 [38]. - The total bank credit line as of December 31, 2023, is HKD 1,706,626,000, with HKD 820,000,000 already utilized [58]. - A bank loan of HKD 620 million is scheduled for repayment in February 2024 [78]. - The group has implemented measures to recover cash flow from projects and control capital expenditures [59]. Strategic Initiatives - The group will focus on improving cash flow by concentrating resources on recovering existing projects and investments over the next year [41]. - The group aims to enhance marketing efforts for its existing funds and financial services, leveraging internal coordination and cross-business collaboration [44]. - The group is focusing on the retail market segment and wealth management business as part of its strategic initiatives [42]. - The group plans to actively develop licensing businesses and provide integrated financial services to clients [59]. - The group is enhancing resource coordination and external collaboration to expand its business network [62]. Risk Management and Compliance - The group aims to enhance risk control measures and improve communication with clients to ensure normal repayment of existing projects [198]. - The company has made provisions for expected credit losses based on past credit loss experiences and future cash flow estimates [148]. - The company’s management noted that the economic impact from the US-China trade dispute and recent COVID-19 outbreaks has significantly affected its operations [151]. Impairment and Credit Losses - The group recognized a significant impairment provision of HKD 259,925,000 for direct investments in debt instruments, down from HKD 1,219,618,000 in the previous year, marking a reduction of approximately 79% [195]. - The net impairment provision for accounts receivable at the end of 2023 was HKD 76.286 million, a decrease from HKD 133.289 million in 2022 [163]. - The expected credit loss provision for remaining accounts receivable was approximately HKD 291 million, compared to HKD 284 million in 2022 [164]. Market Conditions - The overall economic recovery in Hong Kong remains slow, with the market entering a downturn, posing ongoing challenges for the group's operations [196]. - The group is focusing on compliance operations, accelerating business transformation, and increasing marketing and business expansion efforts in a challenging economic environment [197].

Financial Performance - The company's revenue from asset management and direct investment for the period was approximately HKD 58,642,000, down from HKD 105,142,000 in the previous period, with net losses from financial assets decreasing from HKD 291,476,000 to HKD 180,695,000[11]. - The group recorded a basic loss per share of HKD 0.076, compared to a basic loss per share of HKD 0.167 in the previous period[22]. - The division's revenue for the period was approximately HKD 1,430,000, down from HKD 25,187,000 in the previous period, with division losses decreasing to approximately HKD 30,322,000 from HKD 262,416,000[28]. - As of June 30, 2023, the group recorded revenue of approximately HKD 64,436,000, a decrease from HKD 135,889,000 in the previous period[46]. - The net loss for the period was approximately HKD 458,361,000, significantly reduced from a net loss of HKD 1,346,573,000 in the previous period[46]. - Total revenue for the six months ended June 30, 2023, was HKD 64,436,000, a decline of 52.6% compared to HKD 135,889,000 in the same period last year[107]. - The company reported a total loss for the period of HKD (458,361,000) for the first half of 2023[161]. - The company reported a loss attributable to ordinary equity holders of HKD 658,804,000 for the six months ended June 30, 2023, compared to a loss of HKD 1,457,379,000 in the same period of 2022[198]. Asset Management and Investment Strategy - The group’s asset management and direct investment business focuses on distressed assets and corporate rescue themes, aiming to identify counter-cyclical investment opportunities[48]. - The company plans to focus on expanding its asset management business, particularly in cross-border services and high-yield bond funds, to enhance management fee income[54]. - The company is focusing on restructuring asset acquisition opportunities to address significant non-performing core business issues[123]. - The company is focusing on the "big bad" alternative investment transformation and actively managing its asset management business[140]. - The group plans to increase resource investment in areas such as overseas privatization, equity mergers and acquisitions, and cross-border asset acquisitions[31]. Financial Position and Liquidity - The group held USD loans of approximately USD 260,940,000 (equivalent to about HKD 2,045,054,000) as of June 30, 2023, unchanged from the previous period[34]. - The group has unused bank standby credit of approximately HKD 883,491,000, providing additional liquidity if needed[35]. - The total cash and bank deposits of the company as of June 30, 2023, were approximately HKD 2,491,087,000, an increase from approximately HKD 1,986,641,000 as of December 31, 2022[57]. - The company obtained shareholder loans and perpetual capital bonds totaling approximately USD 1,069,233,000 (equivalent to approximately HKD 8,358,233,000) as of June 30, 2023, for operational funding[58]. - The group’s total bank credit as of June 30, 2023, was approximately HKD 2,482,491,000, with HKD 1,599,000,000 utilized[115]. Risk Management - The group aims to improve risk control measures and enhance communication with clients to ensure the repayment of normal projects[12]. - The risk management department continuously evaluates the impairment of financial assets, including financing lease projects, and communicates the impact on financial reports to management and the board[94]. - The board's audit committee meets quarterly to discuss impairment situations and significant accounting matters, ensuring oversight of the group's risk and internal control mechanisms[94]. - The group conducts ongoing risk monitoring for financing lease projects, with actions taken for overdue payments, including sending collection notices and maintaining close communication with debtors[91]. - The group is committed to continuous improvement of its risk management and internal control systems, with regular reports to the board on risk dynamics and impairment provisions[94]. Employee Development - The group emphasizes employee development through various training programs and offers incentives based on performance and compliance[87]. - The group aims to retain and motivate capable employees by providing competitive compensation and benefits, including group medical and life insurance plans[87]. - As of June 30, 2023, the group employed a total of 36 employees, down from 43 employees as of December 31, 2022[87]. Impairment and Financial Assets - The company recognized an impairment provision of approximately HKD 30 million for a fixed income investment project due to low recoverability of accrued interest[70]. - A net impairment loss of approximately HKD 133 million was reported during the period, primarily due to two financing lease projects related to companies in the wind and solar power sectors facing cash flow difficulties[75]. - The fair value of public bonds classified as financial assets at fair value through other comprehensive income was approximately HKD 678 million, with a net impairment provision of HKD 30 million during the period[83]. - The impairment provision for other loans and debt instruments was HKD 59,591,000, a decrease from HKD 240,125,000 in the previous year[187]. Future Outlook - The group anticipates that the economic situation in the second half of the year will remain challenging, and it aims to seize market opportunities during this special period[29]. - The board is confident in the feasibility of the business plan for the next twelve months, aiming to increase profitability and improve cash flow[134]. - The management is implementing strategies to enhance cash flow and improve profitability through targeted investment strategies and business model promotion[130][131].

香港交易及結算所有限公司及香港聯合交易所有限公司對本公告之內容概不 負責，對其準確性或完整性亦不發表任何聲明，並明確表示，概不對因本公告 全部或任何部分內容而產生或因依賴該等內容而引致之任何損失承擔任何責 任。 （於百慕達註冊成立之有限公司） （股份代號：993） 截 至 二 零 二 三 年 六 月 三 十 日 止 六 個 月 之 中 期 業 績 華融國際金融控股有限公司（「本公司」）董事（「董事」）會（「董事會」）謹此公佈本 公司及其附屬公司（統稱「本集團」）截至二零二三年六月三十日止六個月之未 經審核簡明綜合業績，連同截至二零二二年六月三十日止六個月的比較數字 如下： 簡明綜合損益表 截至二零二三年六月三十日止六個月 截至六月三十日止六個月 二零二三年 二零二二年 （未經審核） （未經審核） 附註 千港元 千港元 收入 佣金及服務費收入 5 6,119 4,203 利息收入 5 使用實際利率法計算之利息收入 44,275 76,590 其他 14,042 34,961 投 資收入 5 – 20,135 64,436 135,889 按公允價值計入損益賬之金融資產之虧損淨額 (180,695) (291,4 ...

Business Transformation and Strategy - In 2023, the company aims to accelerate its transformation and achieve a "return to the right track" by focusing on core business development and leveraging resources from CITIC Group and China Huarong[13] - The company is committed to business transformation, focusing on core operations and achieving breakthroughs in asset management and corporate financing[30] - The company is committed to developing its licensed core businesses while identifying special investment opportunities to drive differentiated growth[13] - The company is exploring differentiated and specialized development paths to build core competitive advantages in its business[30] - The company aims to enhance management efficiency and strengthen risk control to support high-quality development in the future[33] Risk Management and Governance - The company has a strong focus on risk management, with both the Chairman and CEO being members of the Risk Management Committee[46] - The management team emphasizes the importance of compliance and risk assessment in all business operations[46] - The company has implemented risk control measures to effectively reduce risk exposure and improve asset quality amid tightening financial conditions[78] - The management team has significant experience in corporate governance and financial institution management, enhancing the company's strategic direction[46] - The company is committed to sustainable development, with independent directors actively participating in relevant committees[43] Financial Performance - The group recorded revenue of approximately HKD 276,630,000, a decrease from HKD 486,592,000 in the previous year, resulting in a total loss of approximately HKD 2,228,026,000 compared to a loss of HKD 1,602,292,000 last year[52] - The asset management and direct investment segment generated revenue of approximately HKD 225,155,000, down from HKD 372,787,000, with a loss of approximately HKD 1,702,167,000 compared to a loss of HKD 1,276,665,000 in the previous year[55] - The basic loss per share for the year was 28.7 HK cents, compared to a basic loss of 20.9 HK cents in the previous year[76] - The group faced an increase in segment losses to approximately HKD 419,907,000, compared to a loss of about HKD 83,276,000 in the previous year, reflecting a significant deterioration in performance[97] - The fair value of financial assets measured at other comprehensive income decreased from HKD 259,658,000 in 2021 to HKD 71,540,000 in 2022, representing a decline of approximately 72.5%[183] Operational Efficiency and Cost Management - The company has implemented comprehensive budget management to continuously reduce costs and improve efficiency, enhancing overall management performance[12] - The management team has been restructured to optimize front, middle, and back office operations, significantly improving team cohesion and operational capabilities[12] - The company has initiated the closure of its Sheung Wan branch and terminated its futures and options business to reduce costs and improve efficiency[80] - The group plans to actively raise funds and develop counter-cyclical fund products and asset management services to expand its asset management scale and enhance management fee income[85] - The group aims to optimize its securities company structure and improve operational efficiency while focusing on institutional and intermediary business to increase revenue contributions from these areas[85] Market Environment and Economic Outlook - The group expects economic recovery in Hong Kong and mainland China in 2023, following the easing of pandemic restrictions and the resumption of cross-border activities[60] - The overall market environment remains challenging, with a significant decline in the total amount and number of IPOs in Hong Kong due to various economic pressures[82] - The company faced significant challenges due to the ongoing COVID-19 pandemic, the Russia-Ukraine conflict, inflation, and rising interest rates, which impacted global economic growth and the Hong Kong capital market[77] - The company is confident in overcoming uncertainties in the market and is focused on creating new opportunities in the Guangdong-Hong Kong-Macao Greater Bay Area[33] Shareholder and Capital Management - The group secured a total of approximately USD 1,069,233,000 (equivalent to about HKD 8,346,884,000) in shareholder loans and perpetual capital bonds from China Huarong International Holdings, an increase from USD 958,079,000 (approximately HKD 7,455,880,000) the previous year[101] - The company issued perpetual capital securities amounting to USD 490,000,000 (approximately HKD 3,846,715,000) during the year[195] - The profit attributable to perpetual capital securities holders for the year was a loss of HKD 420,969,000, compared to a profit of HKD 219,423,000 in the previous year[195] - The total issued shares of the company as of December 31, 2022, were 8,709,586,011, with total equity attributable to shareholders amounting to approximately negative HKD 732,882,000, worsening from negative HKD 495,994,000 a year prior[100] - The group has not granted any share options under the share option scheme during the years ended December 31, 2022, and 2021[192] Environmental and Social Responsibility - The company has set emission reduction targets and outlined steps to achieve these goals[1] - Total greenhouse gas emissions and density for direct (Scope 1) and energy indirect (Scope 2) emissions are reported[1] - The total amount of hazardous waste generated and its density are documented[1] - The total water consumption and its density are provided, along with efficiency targets for water usage[2] - The company has implemented occupational health and safety measures, with statistics on work-related fatalities and injury rates[1]

香港交易及結算所有限公司及香港聯合交易所有限公司對本公告之內容概不 負責，對其準確性或完整性亦不發表任何聲明，並明確表示，概不對因本公告 全部或任何部分內容而產生或因依賴該等內容而引致之任何損失承擔任何責 任。 （於百慕達註冊成立之有限公司） （股份代號：993） 截 至 二 零 二 二 年 十 二 月 三 十 一 日 止 年 度 之 全 年 業 績 公 告 華融國際金融控股有限公司（「本公司」）董事（「董事」）會（「董事會」）欣然向列位 股東「( 股東」)提呈本公司及其附屬公司（統稱為「本集團」）之綜合業績（乃摘錄自 截至二零二二年十二月三十一日止年度（「本年度」）之綜合財務報表）與截至二 零二一年十二月三十一日止年度（「上年度」）之比較數字如下： 綜合損益表 截至二零二二年十二月三十一日止年度 二零二二年 二零二一年 附註 千港元 千港元 收入 佣金及服務費收入 5 13,026 33,052 利息收入 5 使用實際利息法計算之利息收入 151,266 294,050 ...

Financial Performance - The company recorded revenue of approximately HKD 135,889,000, a decrease from HKD 289,138,000 in the previous period, representing a decline of about 53.1%[8] - The net loss for the period was approximately HKD 1,346,573,000, compared to a net loss of HKD 335,934,000 in the previous period, indicating an increase in losses of about 300%[8] - The loss attributable to shareholders was approximately HKD 1,457,379,000, up from HKD 446,488,000 in the previous period, reflecting a significant increase in shareholder losses[8] - The company reported a net loss of HKD 291,476,000 from financial assets measured at fair value through profit or loss, compared to a net gain of HKD 11,413,000 in the previous period[8] - Basic loss per share was HKD 0.167, compared to HKD 0.051 in the previous period, indicating a worsening of per-share losses[9] - The total comprehensive loss for the period was HKD 1,358,382,000, compared to a loss of HKD 288,046,000 in the previous year, indicating a worsening of approximately 371.5%[56] - The total comprehensive income for the six months ended June 30, 2022, was a loss of HKD 1,469,188,000, compared to a loss of HKD 288,046,000 for the same period in 2021[63] - The company reported a significant decrease in commission and service fee income, which fell to HKD 4,203,000 from HKD 17,916,000, a decline of about 76.6%[56] - The company’s financing costs decreased to HKD 196,335,000 from HKD 248,286,000, representing a reduction of approximately 20.9%[56] - The company reported a pre-tax loss of HKD 1,367,012,000 for the six months ended June 30, 2022, compared to a pre-tax loss of HKD 327,275,000 in the same period of 2021[64] Impairment and Provisions - Impairment provisions for risky projects amounted to approximately HKD 819,437,000 during the period[11] - The group recorded a net impairment loss of approximately HKD 819,437,000 during the period, primarily due to declines in the market value of collateralized stocks and issues related to debtors[41] - The group recognized an impairment provision of approximately HKD 90 million for two financing lease projects due to cash flow issues and difficulties in asset realization[44] - An additional impairment provision of approximately HKD 90 million was recorded for a financing lease project involving a cargo transport company currently in bankruptcy restructuring[44] - The group recorded an impairment provision of approximately HKD 323 million for a financial asset project that transitioned to receivables due to a default notification and lack of payment from the guarantor[45] - Two real estate bonds were impaired by approximately HKD 48 million due to ongoing industry and market deterioration, leading to a downgrade in credit status[45] - The company had a significant increase in impairment provisions, with net provisions for other loans and debt instruments amounting to HKD 240,125,000, compared to HKD 170,119,000 in the previous year[139] Business Challenges and Strategies - The company faced significant challenges due to the ongoing COVID-19 pandemic and geopolitical tensions, impacting its business and financial performance[10] - The asset management and direct investment sectors are experiencing unprecedented challenges due to the ongoing pandemic and the escalation of the Russia-Ukraine conflict[11] - The company is focusing on risk recovery and asset reduction while enhancing risk management efforts in response to the challenging external environment[11] - The group plans to expand its asset management business by promoting new overseas distressed asset investment funds and high-yield bond products[25] - The group aims to optimize its securities business structure and enhance operational efficiency while focusing on institutional and intermediary business[25] - The corporate financing business will continue to develop bond capital market operations and expand financial advisory and IPO sponsorship services[25] - The company is focusing on IPO underwriting, pricing, and issuance in sectors such as pharmaceuticals, real estate, and finance[89] - The company is exploring restructuring asset acquisition opportunities in response to significant adverse main business conditions[89] - The company is engaged in mergers, privatizations, and cross-border acquisitions to leverage its brand effect and capital investment banking advantages[89] Liquidity and Financial Position - As of June 30, 2022, the total cash and bank deposits of the group amounted to approximately HKD 2,376,696,000, an increase from HKD 1,852,784,000 as of December 31, 2021[9] - The group maintained unutilized bank standby credit of approximately HKD 1,334,914,000 as of June 30, 2022, providing additional liquidity if needed[32] - The group has not faced significant foreign exchange risks due to its transactions being primarily conducted in HKD and USD, with minimal exposure to other currencies[35] - The group has received a waiver from a bank regarding a financial covenant breach related to a loan of HKD 624 million, allowing continued access to normal banking facilities[32] - The group expects to realize approximately HKD 702,160,000 from non-listed fund investments within the next twelve months, compared to HKD 259,271,000 as of December 31, 2021[146] - The group recorded a net impairment provision of HKD 632,838,000 against expected credit losses for finance lease receivables as of June 30, 2022[159] - The group ensures that available cash balances and listed equity securities held as custodians are sufficient to meet its obligations[191] Shareholder and Corporate Actions - The board did not recommend any interim dividend for the period, consistent with the previous period[46] - The company declared a dividend of HKD 32,533,000 related to perpetual capital securities as of June 30, 2022[63] - The group received a letter of support from its indirect controlling shareholder, China Huarong International Holdings, confirming its intention to provide sufficient financial support, with inter-company loans totaling HKD 10.5 billion as of June 30, 2022[79] - The company entered into subscription agreements to issue USD 275 million and USD 215 million perpetual securities to China Huarong International Holdings, both at a coupon rate of 6.86%[80] Employee and Operational Metrics - The group employed a total of 60 employees as of June 30, 2022, down from 65 employees at the end of 2021[47] - The average number of ordinary shares outstanding for the calculation of basic loss per share was 8,709,586 for both periods[145] Credit Risk and Receivables - The expected credit loss provision for accounts receivable increased to HKD 608,360,000 as of June 30, 2022, compared to HKD 276,419,000 as of December 31, 2021[191] - The total receivables (net of expected credit loss provisions) as of June 30, 2022, amounted to HKD 251,929,000, a significant decrease from HKD 820,087,000 as of December 31, 2021[190] - The group maintained strict monitoring of outstanding receivables to minimize credit risk, with overdue balances reviewed periodically by management[184] - The company has a concentration credit risk, with 69% of the total other loans and debt instruments being amounts due from the top five borrowing clients as of June 30, 2022[170] - The company’s management believes that the impairment provisions for the period are adequate, considering the estimated future cash flows and the financial conditions of borrowers[171]

Risk Management and Sustainable Development - The company focused on risk recovery and asset reduction as key priorities for sustainable development, establishing a dedicated leadership team for risk resolution[9] - The company aims to continue pushing for risk asset disposal to eliminate historical burdens and ensure sustainable development[14] - The company is focusing on problem asset management and corporate restructuring to support small and medium enterprises during the pandemic[53] - The company has established credit risk policies and processes for impairment assessments under HKFRS 9, focusing on expected credit losses for financial assets[79] - The group continues to evaluate the expected credit risk and impairment of financial assets, actively pursuing recovery actions including legal proceedings and asset sales[87] Financial Performance - The company recorded revenue of approximately HKD 486,592,000, a decrease from HKD 841,008,000 in the previous year, representing a decline of about 42%[49] - The net loss for the year was approximately HKD 1,602,292,000, down from a loss of HKD 2,686,240,000 in the previous year, indicating a reduction in losses by about 40%[49] - Basic loss per share was HKD 0.209, compared to HKD 0.425 in the previous year, reflecting an improvement in per-share losses[50] - The asset management and direct investment segment generated revenue of approximately HKD 372,787,000, down from HKD 601,634,000, a decrease of about 38%[54] - The securities segment reported revenue of approximately HKD 36,776,000, a significant drop from HKD 160,766,000, representing a decline of about 77%[56] Business Strategy and Development - The asset management business implemented a fund-based strategy, focusing on special opportunities, non-performing assets, and high-yield bonds[11] - The company aims to enhance its existing business advantages and address shortcomings by establishing initial frameworks for various licensed business teams, products, and channels[16] - The development strategy focuses on a differentiated collaborative approach, leveraging "investment + investment banking" and "main business + licenses" to highlight licensed business strengths[16] - The company plans to expand financing channels and reduce costs to improve capital efficiency[14] - The company is actively developing its bond capital market business to enhance its influence in the Hong Kong bond capital market[63] Corporate Governance and Board Composition - The company has a diverse board with members having extensive backgrounds in finance, risk management, and corporate governance[29][30] - The board includes members who have served in significant roles across multiple listed companies, enhancing the company's strategic oversight[27][30] - The company emphasizes the importance of independent directors in maintaining corporate governance and accountability[29] - The independent non-executive directors play a crucial role in the company's risk management and audit committees, ensuring compliance and transparency[27] - The company’s board of directors includes both executive and independent non-executive members, ensuring a diverse governance structure[125] Leadership Changes - The company experienced a change in executive leadership with Mr. Xu Xiaowu appointed as executive director and chairman of the board on January 4, 2021, following the resignation of Mr. Yang Rungui[38][39] - Mr. Zhang Xiaofeng was appointed as the deputy CEO on June 29, 2021, with a strong background in capital operations and asset management[45] - Dr. Lin Jiali was appointed as an independent non-executive director on September 1, 2021, bringing extensive international experience in corporate management and investment banking[33] Compliance and Risk Factors - The company has implemented measures to ensure compliance with applicable laws and regulations, with no significant violations reported during the year[121] - The group faced significant risks including credit risk, market risk, and legal compliance risk, primarily due to its operations in mainland China and Hong Kong[117] - The company has confirmed that all related party transactions comply with the definitions of "related transactions" or "continuing related transactions" under the listing rules[164] Employee Relations and Corporate Culture - The company emphasized the importance of employee relations and provided competitive compensation and training opportunities[122] - The group has a total of 65 employees as of December 31, 2021, down from 79 employees the previous year[92] Shareholder Information - As of December 31, 2021, China Huarong holds 4,441,556,104 shares, representing 51.00% of the company's issued share capital[138] - The company has a significant shareholder, Huarong Zhiyuan Investment Management Co., holding 2,009,097,429 shares, which is 23.07% of the issued share capital[141] - The company did not issue any new shares during the year, and there were no changes in the issued share capital[102] Financial Agreements and Funding - The group obtained shareholder loans totaling approximately $605,115,000 (equivalent to about HKD 4,718,726,000) from China Huarong International Holdings as of December 31, 2021, with a fixed annual interest rate ranging from 4.3% to 7.98%[67] - The outstanding loan amount under Financing Agreement I was HKD 775 million, with the next review date scheduled for October 2022[168] - The outstanding loan amount under Financing Agreement II as of December 31, 2021, was HKD 624 million, with the next review date set for August 2022[169]

Financial Performance - The company recorded revenue of approximately HKD 289,138,000, a decrease from HKD 468,419,000 in the previous period, representing a decline of about 38.3%[11] - The net loss for the period was approximately HKD 335,934,000, improved from a net loss of HKD 477,327,000 in the previous period, indicating a reduction of about 29.6%[11] - Basic loss per share for the period was HKD 0.051, compared to HKD 0.080 in the previous period, reflecting a decrease in loss per share of approximately 36.3%[11] - The total income, investment income, and losses amounted to approximately HKD 293,993,000, compared to a net income of HKD 248,345,000 in the previous period[11] - The total comprehensive loss for the period was HKD 288,046,000, a decrease from HKD 506,698,000 in the previous year, indicating a 43.2% reduction in losses[55] - The company reported a net impairment loss of HKD 287,072,000, which increased from HKD 132,660,000 in the previous year[53] - The company reported a pre-tax loss of HKD 327,275,000 for the first half of 2021, compared to a pre-tax loss of HKD 468,881,000 for the same period in 2020, indicating a reduction in losses of approximately 30%[66] - The company reported a significant increase in cash received from the sale of properties, plant, and equipment, amounting to HKD 1,589,563,000 in the first half of 2021, compared to HKD 782,366,000 in the previous year, representing an increase of about 103%[66] Segment Performance - In the first half of 2021, the asset management and direct investment segment reported revenue and investment income of approximately HKD 227,771,000, compared to a loss of approximately HKD 97,263,000 in the previous period[16] - The securities segment generated revenue and other income of approximately HKD 26,969,000, down from HKD 114,605,000 in the previous period, with a loss of approximately HKD 3,234,000 compared to a loss of HKD 16,629,000 previously[19] - The corporate finance segment's revenue increased significantly to approximately HKD 3,242,000 from HKD 235,000 in the previous period, although it recorded a loss of approximately HKD 1,928,000 compared to a loss of HKD 1,520,000 previously[20] - The financial services and other segment reported revenue of approximately HKD 36,011,000, down from HKD 38,217,000 in the previous period, with a loss of approximately HKD 23,647,000 compared to a profit of HKD 33,931,000 previously[22] - The asset management and direct investment segment reported a revenue of HKD 253,424,000 for the six months ended June 30, 2021, compared to HKD 40,797,000 in the same period of 2020, marking a significant increase of 520.5%[87] - The financial services and other segment generated a revenue of HKD 44,147,000 for the six months ended June 30, 2021, compared to HKD 43,086,000 in the same period of 2020, showing a slight increase of 2.5%[87] Economic Outlook - The global economic outlook for 2021 is optimistic, with the International Monetary Fund predicting a global economic growth of 6%[12] - The domestic GDP of China grew by 12.7% year-on-year in the first half of 2021, indicating a stable recovery in the economy[12] Strategic Initiatives - The company is actively promoting steady business development according to its 2021-2025 five-year business development plan[14] - The company plans to focus on problem asset management and corporate relief, while expanding and developing new fund products to increase asset management scale and management fee income[24] - The company aims to enhance its securities business through increased market research and expansion efforts, particularly in new stock subscription financing and wealth management services[24] - The corporate finance segment is expected to benefit from the stable growth of the Chinese dollar bond market, with plans to continue providing professional financing services and develop underwriting and merger acquisition businesses[24] - The company emphasizes a strategic focus on risk management, business transformation, and compliance to achieve stable long-term development[25] Financial Position - As of June 30, 2021, the total number of issued shares was 8,709,586,011 shares, each with a par value of HKD 0.001[27] - As of June 30, 2021, the total cash and cash equivalents amounted to approximately HKD 1,840,991,000, an increase from HKD 1,720,306,000 as of December 31, 2020[28] - The capital debt ratio as of June 30, 2021, was 1,225.57%, up from 772.26% on December 31, 2020, primarily due to a decrease in shareholder equity[28] - The group had unutilized bank credit of approximately HKD 1,100,018,000 as of June 30, 2021, down from HKD 1,629,012,000 as of December 31, 2020[29] - The company's net asset value increased to HKD 3,273,770 thousand as of June 30, 2021, compared to HKD 2,838,421 thousand as of December 31, 2020, marking an increase of about 15.4%[59] - The company's total equity as of June 30, 2021, was HKD 805,101,000, down from HKD 1,381,176,000 as of December 31, 2020, representing a decrease of 41.6%[94] Compliance and Risk Management - The group has maintained compliance with liquidity regulations for all licensed subsidiaries during the reporting period[29] - The group has not faced significant foreign exchange risks due to the peg between HKD and USD, with minimal revenue from mainland China[33] - The group has received waivers from banks regarding certain financial covenants and is in active discussions to mitigate potential impacts on financial performance[29] - The company maintains a rigorous review process for loans based on the latest borrower information and collateral evaluations to minimize credit risk[148] Loans and Borrowings - The company reported a total of HKD 624,000,000 in loans that did not comply with certain financial covenants as of June 30, 2021, and an additional HKD 2,329,000,000 related to non-financial covenants[192] - The company’s loans from its direct holding company were approximately $260,940,000 (equivalent to about HKD 2,025,883,000) with similar interest rates as the previous year[189] - The company obtained loans totaling approximately $605,115,000 (equivalent to about HKD 4,697,988,000) for operational purposes, with interest rates ranging from 4.3% to 7.98%[188] - The company also secured additional loans of approximately $260,940,000 (equivalent to about HKD 2,025,883,000) with fixed interest rates between 3.87% and 5.81%[189] Accounting and Reporting - The company adopted new accounting standards effective from April 1, 2021, which allows for the extension of the practical expedient for rent concessions related to the COVID-19 pandemic for an additional 12 months[80] - The company has early adopted the revised accounting standard regarding rent concessions, impacting lease liabilities and recognized as variable lease payments in the financial statements[80] - The group’s financial statements are prepared in accordance with Hong Kong Accounting Standards, specifically HKAS 34 for interim financial reporting[73]