金涌投資有限公司 | 於酮曼群島註冊成立之有限公司] I 颜份代號：1328 I | --- | --- | --- | --- | --- | |---------------------------|-------|-------|-------|-------| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | tay | | Jun | | | | | | | | | | | | | | | | | | | | | | | | | | | | 2024 | | | | | | 中期業績報告 | | | | | | Good Investment Made Easy | | | | | 目錄 | --- | --- | |-------|--------------------------| | | | | | | | 2 | 摘要 | | 3 | 管理層討論及分析 | | 10 | 其他資料 | | 18 | 簡明合併中期利潤表 | | 19 | 簡明合併中期綜合收益表 | | 20 | 簡明合併中期財務狀況表 | | 21 | ...

Financial Performance - For the six months ended June 30, 2024, the net fair value gain on financial assets and liabilities measured at fair value through profit or loss was approximately HKD 31,931,000, compared to HKD 16,970,000 for the same period in 2023, representing an increase of about 88%[1] - Total investment management service income for the six months ended June 30, 2024, was approximately HKD 11,242,000, an increase of approximately HKD 2,874,000 from HKD 8,368,000 for the same period in 2023, reflecting a growth of about 34%[1] - Profit attributable to equity holders for the six months ended June 30, 2024, was approximately HKD 47,695,000, up from HKD 36,421,000 in the same period of 2023, marking an increase of approximately 31%[2] - The total expenses for the six months ended June 30, 2024, were HKD 16,571,000, compared to HKD 12,909,000 for the same period in 2023, indicating an increase of approximately 28%[2] - Basic and diluted earnings per share for the six months ended June 30, 2024, were both HKD 0.40, compared to HKD 0.32 for the same period in 2023, representing a growth of 25%[2] - The company reported a total comprehensive income attributable to equity holders of HKD 47,657,000 for the six months ended June 30, 2024, compared to HKD 36,295,000 for the same period in 2023, indicating an increase of approximately 31%[4] - The company reported a net profit of HKD 1,878 million for the six months ended June 30, 2024, compared to a loss of HKD 290 million in the same period last year[60] - Profit before tax for the first half of 2024 was approximately HKD 49,667,000, up from HKD 36,485,000 in the same period last year, reflecting a 36.1% increase[83] Assets and Liabilities - Total assets as of June 30, 2024, amounted to HKD 919,263,000, an increase from HKD 833,909,000 as of December 31, 2023, reflecting a growth of approximately 10%[5] - The equity attributable to equity holders increased to HKD 726,157,000 as of June 30, 2024, compared to HKD 661,782,000 as of December 31, 2023, representing an increase of about 10%[5] - Total liabilities decreased to HKD 21,548 million as of June 30, 2024, down from HKD 29,922 million as of December 31, 2023[63] - The total non-current assets as of June 30, 2024, were HKD 267,189,000, an increase from HKD 255,627,000 as of December 31, 2023, reflecting a growth of 4.5%[30] - The company's cash and cash equivalents as of June 30, 2024, were HKD 120,303,000, compared to HKD 114,585,000 as of December 31, 2023, indicating a slight increase of about 5%[5] - The net amount of trade receivables as of June 30, 2024, was HKD 11,404,000, down from HKD 12,927,000 as of December 31, 2023, indicating a decrease of 11.8%[50] - The company's other financial assets, specifically receivables from brokers, decreased to HKD 27,532,000 from HKD 65,270,000, reflecting a decline of 57.8%[50] Revenue and Income Sources - As of June 30, 2024, the total revenue was HKD 1,735,566,000, showing an increase from HKD 1,718,929,000 as of June 30, 2023[7] - IM business revenue for the six months ended June 30, 2024, was HKD 11,242,000, an increase from HKD 8,369,000 for the same period in 2023, representing a growth of 34.5%[24] - Total segment revenue for the six months ended June 30, 2024, was HKD 46,161,000, compared to HKD 26,290,000 for the same period in 2023, reflecting a significant increase of 75.8%[27] - The company generated service revenue of HKD 4,518 million from related parties in the first half of 2024, compared to HKD 2,075 million in the same period of 2023, reflecting a significant increase of 118.8%[66] - Investment dividend income surged by 262.7% to HKD 1,110,000 from HKD 306,000 year-on-year[76] Expenses and Costs - The company’s financial costs for the six months ended June 30, 2024, were HKD 227,000, compared to HKD 173,000 for the same period in 2023, reflecting an increase of about 31%[2] - Employee benefits expenses totaled HKD 7,959,000 for the six months ended June 30, 2024, compared to HKD 6,437,000 for the same period in 2023, indicating an increase of 23.7%[34] - Total operating expenses increased by 28.4% to approximately HKD 16,571,000 from HKD 12,909,000 in the previous year[81] Governance and Compliance - The company has established an audit committee to oversee financial reporting and internal control processes, ensuring compliance with high governance standards[113] - The company confirmed compliance with all corporate governance code provisions as of June 30, 2024[111] - The management team consists of two executive directors and three independent non-executive directors, ensuring a balanced governance structure[115] Strategic Initiatives and Future Outlook - The company’s management believes that the business will continue to expand and create greater value for investors, focusing on investment management and strategic direct investment[74] - The company plans to continue increasing fundraising and marketing efforts while seeking additional investment opportunities in the SDI business to enhance shareholder returns[89] - The company remains optimistic about capitalizing on opportunities arising from the recovery of the Chinese economy in the second half of 2024[90] - The company aims to improve risk management capabilities and operational efficiency to ensure sustainable growth and profitability[90] Shareholder Information - The company did not recommend the payment of an interim dividend for the six months ended June 30, 2024, consistent with the previous year[39] - The company issued 1,336,303 shares during the period, increasing the total issued shares to 12,831,797, with a corresponding increase in share premium to HKD 1,735,566 million from HKD 1,718,929 million[61][62] - As of June 30, 2024, the company's shareholders' equity was approximately HKD 854,475,000 with a total issued share capital of 12,831,797,215 shares[92] Risk Management - The liquidity risk management policy involves regular monitoring of cash flow needs to ensure sufficient cash reserves for short-term and long-term obligations[15] - The company has no significant capital commitments as of June 30, 2024, indicating a stable financial position[64] - The group has no outstanding asset mortgages or contingent liabilities as of June 30, 2024[95][96]

Financial Performance - The company achieved a net profit of approximately HKD 46 million for the year ended December 31, 2023, reversing losses from the previous year[12]. - The company’s financial performance was primarily driven by its IM and SDI businesses for the year ended December 31, 2023[14]. - IM services revenue decreased by 37% to approximately HKD 22,309,000 compared to HKD 35,272,000 in the previous year[18]. - Investment dividend income fell by 87% to HKD 517,000 from HKD 4,097,000 year-on-year[18]. - The net fair value gain/loss on financial assets and liabilities was HKD 21,500,000, a turnaround from a loss of HKD 58,367,000 in the previous year, representing a 137% improvement[18]. - Other income surged by 346% to approximately HKD 47,288,000 from HKD 10,611,000, primarily due to increased interest income[20]. - Total operating expenses decreased by 17% to HKD 43,928,000 from HKD 53,214,000[21]. - The profit before tax from continuing operations was approximately HKD 47,178,000, a significant recovery from a loss of HKD 81,661,000 in the previous year[23]. - The group achieved a strong performance in 2023, with confidence in attracting more clients for its IM business and increasing financing efforts[38]. - As of December 31, 2023, the group's total equity was approximately HKD 776,737,000, an increase from HKD 729,282,000 in 2022[41]. - The group's cash and cash equivalents increased by approximately HKD 67,942,000, totaling HKD 114,585,000 as of December 31, 2023[43]. - The current ratio and quick ratio stood at 10.16 as of December 31, 2023, compared to 5.93 in 2022[43]. Investment Management and Strategy - The company focused on developing its Investment Management (IM) and Strategic Direct Investment (SDI) businesses, resulting in significant progress in adjusting investment strategies[9]. - The company anticipates a volatile and challenging market environment, adjusting risk-return profiles and diversifying investments accordingly[12]. - The company continues to seek investment opportunities in the SDI business while focusing on sustainable growth of its client portfolio[26]. - The performance of the investment management business is heavily reliant on assets under management (AUM), management fees, and performance fees, which are affected by market conditions and investment strategies[68]. - Recent trends show an increase in demand for alternative investment strategies in Asia, although there has been significant investment outflow impacting AUM growth[68]. - The company is committed to a cautious and selective investment approach to balance risk and return amid uncertain market conditions[35]. Market Conditions - The Hang Seng Index fell by 13.82% in 2023, marking the third consecutive year of decline, while the S&P 500 Index in the US rose by nearly 25%[12]. - The average daily trading volume in the Hong Kong stock market was HKD 105 billion, a decrease of 16% compared to 2022[12]. - The NASDAQ Composite Index increased by 43.42% in 2023, driven by strong gains in AI-related technology stocks[34]. - The Hang Seng Index declined by 13.82% by the end of 2023, following a brief rebound after the lifting of COVID-19 restrictions[34]. - The company faces various risks including general economic conditions, investment strategy availability, and market disruptions that could adversely affect investment performance[70][72][74]. - Regulatory changes in the alternative investment management industry may negatively impact the value of investments held by funds and their ability to achieve investment objectives[76]. Cost Management and Employee Expenses - The company continues to implement strict cost control measures to enhance profitability[23]. - Employee benefits expenses increased to approximately HKD 27,298,000 from HKD 22,389,000, reflecting a rise in discretionary bonuses[21]. - Total employee compensation for ongoing business in 2023 was approximately HKD 27,298,000, compared to HKD 22,389,000 in 2022[58]. - The group has maintained a stable employee count of 22 as of December 31, 2023, down from 30 in 2022[57]. Shareholder and Equity Information - As of December 31, 2023, the company had distributable reserves of approximately HKD 1,718,929,000, unchanged from the previous year[97]. - The company does not recommend the distribution of a final dividend for the year ending December 31, 2023[92]. - The company aims to enhance shareholder returns by increasing fundraising and marketing efforts while exploring additional investment opportunities in the SDI business[102]. - The goodwill and intangible assets from the acquisition of the company in 2018 accounted for a significant portion of the total assets, with goodwill valued at approximately HKD 197,965,000[99]. - As of December 31, 2023, Zhao Linghuan holds a total of 7,802,539,321 shares, representing approximately 67.87% of the company's equity[125]. - Hony Gold Holdings, L.P. and its related entities collectively own 7,802,539,321 shares, also accounting for approximately 67.87% of the company's equity[127]. - Glory Moment Investments Ltd. holds 840,000,000 shares, which is about 7.31% of the company's equity[127]. Corporate Governance - The financial statements were audited by PwC, and the auditors are eligible and willing to be reappointed[150]. - The audit committee reviewed the full-year results for the year ending December 31, 2023[151]. - The board consists of six members, ensuring a balance of skills, experience, and perspectives[160][164]. - The company has adopted a code of conduct that meets or exceeds the standards set forth in the guidelines[159]. - The board is responsible for the company's business strategy, mid-term and annual performance, and risk management[167]. - The board held four meetings during the review year, with attendance records showing that all independent non-executive directors attended all meetings[177]. - The company has established three board committees, including the audit committee, to assist the board in fulfilling its responsibilities[183]. - Independent non-executive directors confirmed their independence in accordance with listing rules, ensuring compliance with governance standards[172]. Future Outlook - The company plans to continue its long-term growth strategy while seizing short-term opportunities in 2024[5]. - The group is optimistic about leveraging opportunities from the recovery of the Chinese economy in 2024[38]. - The company plans to continue sustainable growth in its customer portfolio while seeking new institutional clients[102].

Financial Performance - The group reported a revenue of 44,036 thousand HKD for the year ending December 31, 2023, compared to a loss of 37,278 thousand HKD in 2022, indicating a significant recovery[12]. - The profit before tax for the continuing operations was 47,178 thousand HKD in 2023, a substantial improvement from a loss of 81,661 thousand HKD in the previous year[12]. - The basic earnings per share for continuing operations increased to 0.40 HKD in 2023 from a loss of 0.71 HKD in 2022, reflecting a positive turnaround[16]. - The group reported a profit before tax from continuing operations of HKD 47.178 million in 2023, compared to a loss of HKD 81.661 million in 2022, marking a 158% increase[54]. - For the year ended December 31, 2023, the company recorded a net profit of approximately HKD 46.39 million, a significant recovery from a net loss of HKD 33.40 million in 2022[80]. - The company reported a profit from continuing operations of HKD 46,393,000, a turnaround from a loss of HKD 81,039,000 in 2022[97]. Revenue and Growth Expectations - The estimated service revenue growth rate for 2023 to 2024 is projected at 97.2%, indicating strong future performance expectations[19]. - The group anticipates a service revenue growth rate of 129.7% for the period from 2023 to 2024, suggesting aggressive market expansion plans[19]. - The company expects revenue to stabilize and grow as it reaches high watermarks in its managed funds[58]. - The group faced a decrease in service fee income due to net outflows in AUM, but continues to implement cost management measures to stabilize IM business revenue, which is expected to grow steadily as losses from 2022 are recovered[195]. Asset and Liability Management - The total assets of the group increased to 833,909 thousand HKD in 2023 from 769,105 thousand HKD in 2022, showing growth in the asset base[12]. - Cash and cash equivalents rose significantly to 114,585 thousand HKD in 2023 from 46,643 thousand HKD in 2022, enhancing liquidity[12]. - The total liabilities increased to HKD 57.17 million in 2023 from HKD 39.82 million in 2022, while total equity rose to HKD 833.91 million from HKD 769.10 million[86]. - The group’s total assets rose to HK$833.909 million in 2023 from HK$769.105 million in 2022[43]. - The total assets of the group as of December 31, 2023, were HKD 255,627 million, down from HKD 302,081 million in the previous year, reflecting a decrease of approximately 15.4%[142]. Cost Management and Expenses - Total operating expenses decreased by approximately 17% to HK$43.928 million in 2023 from HK$53.214 million in 2022[41]. - The company’s total expenses decreased to HKD 43,928,000 from HKD 53,214,000 in 2022, indicating improved cost management[96]. - Other expenses decreased by approximately HKD 9,171,000 to about HKD 7,286,000 for the year ended December 31, 2023, down from HKD 16,457,000 in 2022, due to reductions in foreign exchange differences, fund operating expenses, and audit fees[194]. Investment and Financial Assets - The net gain/loss from financial assets and liabilities at fair value through profit or loss was $21.5 million in 2023, compared to a loss of $58.367 million in 2022, representing a 137% improvement[54]. - The fair value of financial assets at fair value through profit or loss increased to HK$118.203 million in 2023 from HK$59.537 million in 2022[43]. - The fair value gain on financial assets and liabilities recognized in profit or loss was approximately HKD 21.50 million for the year ended December 31, 2023, compared to a fair value loss of approximately HKD 58.37 million in 2022[80]. - The company generated interest income from loans amounting to HKD 38,802,000, compared to HKD 3,510,000 in 2022, reflecting a substantial growth[93]. Market Conditions and Challenges - The economic environment in 2023 has been challenging for the group's IM and SDI businesses due to rising interest rates, inflation, geopolitical tensions, and market volatility[197]. - The Hang Seng Index experienced a decline of 13.82% by the end of 2023, following a brief rebound earlier in the year, reflecting weakened investor confidence in the Chinese market amid geopolitical tensions and intense competition[198]. - Despite market conditions, the funds managed by the group performed strongly, recovering some of last year's losses and outperforming comparable benchmarks and stock indices[199]. Dividends and Shareholder Equity - The company did not recommend the payment of a final dividend for the year ended December 31, 2023[80]. - The company does not recommend the payment of any final dividend for the year ended December 31, 2023, consistent with the previous year where no dividend was declared[145]. - The weighted average number of ordinary shares outstanding increased slightly to 11,495,494 thousand shares in 2023 from 11,433,997 thousand shares in 2022, reflecting stable shareholder equity[16].

Discontinued Operations - The company agreed to sell Honor Crest Holdings Limited for HKD 219,464,000, with HKD 215,000,000 offset against a loan owed to a former director[1]. - The loss from discontinued operations for the six months ended June 30, 2022, was HKD 2,515,000, while the sale generated a profit of HKD 50,157,000[3]. - The group completed the sale of 100% equity in Honor Crest Holdings Limited in March 2022, which was previously a wholly-owned subsidiary[49]. - The group reported a comprehensive loss of HKD 27,846,000 for the period, which includes a loss of HKD 12,817,000 from other comprehensive income[158]. - The CRM services segment was classified as discontinued operations as of June 30, 2022, following the completion of a sale transaction on March 22, 2022[196]. Financial Performance - The profit attributable to the owners of the company for the six months ended June 30, 2023, was approximately HKD 36,421,000, a significant improvement from a loss of approximately HKD 12,817,000 for the same period in 2022[47]. - For the six months ended June 30, 2023, the group recorded a net fair value gain of approximately HKD 16,790,000 on financial assets measured at fair value through profit or loss, compared to a net fair value loss of approximately HKD 35,349,000 for the same period in 2022[47]. - Total revenue from continuing operations was HKD 26,290,000, compared to a loss of HKD 31,341,000 in the previous year[146]. - The company reported total expenses of HKD 12,909,000, down from HKD 28,423,000 in the previous year, indicating a reduction of approximately 54%[146]. - The company achieved a net cash flow from operating activities of HKD (10,019,000), an improvement from HKD (82,028,000) in the prior year[153]. Revenue and Income - The group's investment management service revenue for the six months ended June 30, 2023, was approximately HKD 8,368,000, a decrease of about HKD 6,434,000 compared to the same period in 2022[47]. - Other income increased by approximately 1,137.5% to about HKD 23,277,000, primarily due to increased interest income from higher deposit rates and increased cash held in bank deposits[54]. - The group recognized approximately HKD 17,406,000 in loan interest income and HKD 1,755,000 in loan arrangement fees from providing a loan of USD 30,000,000 to a subsidiary[54]. - The company’s other income for the period was HKD 23,277,000, a substantial increase from HKD 1,881,000 in the same period last year[146]. Assets and Liabilities - As of June 30, 2023, the company had total liabilities of HKD 17,488,000 in other payables, compared to HKD 18,463,000 as of December 31, 2022[19]. - As of June 30, 2023, the total assets of the group remained strong, primarily consisting of goodwill, loans to subsidiaries, and other assets[68]. - As of June 30, 2023, total assets amounted to HKD 803,486,000, an increase of 4.5% from HKD 769,105,000 as of December 31, 2022[155]. - The company's liabilities decreased from HKD 39,823,000 to HKD 37,338,000, a reduction of 6.2%[155]. - The group had no significant contingent liabilities as of June 30, 2023, and December 31, 2022[39]. Employee Compensation and Expenses - Employee benefits expenses decreased from approximately HKD 13,049,000 to approximately HKD 6,437,000 due to a reduction in the number of employees[66]. - The total employee compensation for the six months ended June 30, 2023, was approximately HKD 6,437,000, a decrease from HKD 13,049,000 in the same period last year[106]. - Total expenses decreased by approximately 54.6% to about HKD 12,909,000 from approximately HKD 28,423,000 in the same period last year, primarily due to a reduction in employee benefits expenses[55]. Investment Strategy and Opportunities - The group actively seeks new investment opportunities while managing its cash position to avoid potential losses from public company investments[72]. - The group aims to retain existing clients and attract new clients by establishing a strong performance track record in its investment management business[50]. - The group continues to implement strict cost control measures to enhance profitability despite facing a decrease in service fee income due to net outflows of AUM[67]. - The group has not entered into any significant acquisitions or disposals during the reporting period[93]. Share Capital and Options - The company’s issued share capital remained unchanged at 11,495,494 shares as of June 30, 2023[16]. - Hony Gold Holdings, L.P. holds 7,802,539,321 shares, representing 67.87% of the company's ordinary shares[116]. - The maximum number of shares that can be issued upon the exercise of options under the share option scheme is 1,134,647,232 shares, equivalent to approximately 10% of the issued shares as of the adoption date[120]. - The share option scheme was adopted on June 4, 2020, and has a remaining term of approximately 6 years and 9 months[125]. Corporate Governance and Compliance - The company has complied with the corporate governance code as per the listing rules for the six months ended June 30, 2023[140]. - The audit committee has reviewed the unaudited consolidated interim financial information for the six months ended June 30, 2023, and found it compliant with applicable accounting standards[141]. - There were no changes in the information of directors or the CEO that require disclosure under the listing rules as of June 30, 2023[142]. Economic Outlook - The group remains optimistic about the economic recovery in China and is prepared to capitalize on investment opportunities as investors gradually return to the market[83]. - The board believes that the group's business will continue to expand and create greater value for investors[49].

Business Strategy and Focus - The company aims to focus on its Investment Management (IM) and Strategic Direct Investment (SDI) businesses, which are expected to provide stable revenue streams and sustainable cash flows[10]. - The company believes that the completion of the sale will allow it to concentrate on its remaining businesses and release internal resources for potential investment opportunities[10]. - The company aims to continue seeking investment opportunities to enhance overall financial resource returns amid uncertain market conditions[29]. - The company completed the sale of its CRMS business for HKD 219.5 million on March 22, 2022, reallocating resources to focus on its IM and SDI businesses[37]. - The company is committed to ensuring that any grants of options do not disproportionately benefit major shareholders or connected persons without proper oversight[120]. Financial Performance - The company's IM service revenue decreased by 49% to HKD 35,272,000 in 2022 from HKD 68,778,000 in 2021[16]. - The total operating expenses reduced by 38% to HKD 53,214,000 in 2022 from HKD 85,938,000 in 2021, primarily due to a decrease in employee benefits expenses[21]. - The company's assets under management (AUM) dropped by 48% to approximately USD 515 million as of December 31, 2022, down from USD 985 million in 2021, reflecting poor fund performance[16]. - The pre-tax loss from continuing operations increased by 40% to HKD 81,661,000 in 2022 compared to HKD 58,409,000 in 2021, mainly due to losses in the SDI segment[22]. - Other income decreased by 54% to HKD 10,611,000 in 2022 from HKD 23,058,000 in 2021, primarily due to the absence of a one-time compensation received in the previous year[20]. Market Outlook - The company anticipates that the macroeconomic uncertainties and volatile market conditions will require skilled investment managers more than ever[6]. - The company is confident that 2023 will provide more return opportunities as value and growth stocks approach normal valuation levels[6]. - The company anticipates a rebound in the Asian stock market in the second half of 2023 if inflation begins to decline and interest rates decrease[14]. - The company expects China's GDP growth to rise to 5.2% in 2023, driven by the reopening of the economy[14]. Employee and Management - The total employee compensation for continuing operations in 2022 was approximately HKD 22,389,000, down from approximately HKD 48,000,000 in 2021[48]. - The company had 30 employees as of December 31, 2022, a significant decrease from 1,979 employees in 2021[47]. - The company relies heavily on the experience and expertise of its executive directors and senior management, which is critical for its success[57]. - All directors participated in continuous professional development training to stay updated on relevant regulations and enhance their skills[163]. Corporate Governance - The company has complied with all provisions of the corporate governance code except for the separation of the roles of the chairman and CEO, which was addressed after a change in leadership[142]. - The board consists of six members, ensuring a balance of skills, experience, and perspectives[145]. - The company has established three board committees, including the audit committee, to assist the board in fulfilling its responsibilities[168]. - The audit committee reviewed the remuneration for external auditors, which included fees for both audit and non-audit services, ensuring no potential adverse impact on the company[172]. Risk Management - The company faces risks related to investment management, including pressure on asset management scale and management fees due to market conditions[58]. - Cybersecurity risks may lead to operational disruptions and financial losses, including regulatory fines and reputational damage[4]. - Market disruptions and liquidity issues could result in significant losses for the fund due to unexpected political or military events[64]. - The company emphasizes compliance with laws and regulations to avoid operational interruptions and maintain good relationships with regulatory bodies[70]. Shareholder Information - The board does not recommend the distribution of a final dividend for the year ended December 31, 2022[82]. - The company has adopted a dividend policy that allows for the declaration of dividends from realized or unrealized profits[82]. - The company has established a share option plan on June 4, 2020, which is effective for 10 years, with approximately 7 years and 2 months remaining[119]. - The total number of shares granted under the share incentive plan as of December 31, 2022, is 334,720,000, which represents 2.91% of the total issued shares of the company[126]. Financial Health - The liquidity ratio improved to 5.93 in 2022, compared to 2.34 in 2021, due to the offset of a loan to a former director against the sale proceeds[34]. - As of December 31, 2022, the company's equity was approximately HKD 729.3 million, down from HKD 775.2 million in 2021[32]. - The company recorded a net loss of approximately HKD 58,367,000 from financial assets measured at fair value through profit or loss in 2022[22]. - The company reported a total cash and deposits balance of approximately HKD 46.6 million as of December 31, 2022, significantly reduced from HKD 159.4 million in 2021[33].

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，並明確表示概不就因本公告全部或 任何部份內容而產生或因倚賴該等內容而引致之任何損失承擔任何責任。 GOLDSTREAM INVESTMENT LIMITED 金涌投資有限公司 （於開曼群島註冊成立之有限公司） （股份代號：1328） 截至二零二二年十二月三十一日止年度 全年業績公告 摘要 • 投 資 管 理（「IM」）服 務 收 益 總 額 約 為35,272,000港 元，較 二 零 二 一 年 約 68,778,000港元減少約49%。 • 本公司權益擁有人應佔虧損為約33,397,000港元（二零二一年：約67,729,000 港元）。虧損減少主要由於出售Honor Crest Holdings Limited全部已發現股本 的利得（「出售利得」）。 • 截至二零二二年十二月三十一日止年度，本公司錄得持續經營業務的經 營虧損（不計及出售利得）增加至約79,881,000港元（二零二一年：52,176,000 ...

Financial Performance - For the six months ended June 30, 2022, the investment management service revenue was approximately HKD 14,802,000, a decrease of about HKD 19,400,000 compared to the same period in 2021[7]. - The loss attributable to owners for the six months ended June 30, 2022, was approximately HKD 12,817,000, compared to a profit of HKD 4,313,000 for the same period in 2021[7]. - The total operating expenses for the six months ended June 30, 2022, were HKD 28,423,000, a decrease of 37.7% compared to HKD 45,597,000 in the previous year[19]. - The IM service revenue decreased by 56.7% from HKD 34,202,000 in 2021 to HKD 14,802,000 in 2022, primarily due to a reduction in management and performance fees[19]. - The fair value loss on financial assets measured at fair value through profit or loss was HKD (35,349,000), a significant decline compared to a gain of HKD 7,410,000 in the previous year, representing a change of -577.0%[19]. - The group recorded a loss attributable to shareholders of approximately HKD 60,459,000 for the six months ended June 30, 2022, compared to a profit of HKD 9,837,000 in the same period last year, mainly due to fair value losses on financial assets and losses from associates[26]. - The company reported a loss of HKD 12,817,000 for the six months ended June 30, 2022, compared to a profit of HKD 4,313,000 in the same period of 2021[109]. - The company’s basic and diluted loss per share for continuing operations was HKD 0.53, compared to earnings of HKD 0.09 per share in the previous year[109]. - The company reported a comprehensive loss of HKD 27,846,000 for the six months ended June 30, 2022[119]. - The group reported a net loss of HKD 59,525 thousand for the six months ended June 30, 2022, compared to a profit of HKD 8,835 thousand for the same period in 2021[172]. Revenue and Expenses - Other income decreased by 6.7% from HKD 2,015,000 in the previous year to approximately HKD 1,881,000 in the current period, mainly due to lower interest income from reduced cash deposits[24]. - Total expenses decreased by approximately 37.7% to about HKD 28,423,000 from HKD 45,597,000 in the same period last year, primarily due to reduced employee benefits expenses[25]. - The total cash and deposits as of June 30, 2022, amounted to HKD 118,621,000, a decrease of approximately HKD 40,788,000 compared to the previous period[43][44]. - The cash flow from operating activities for the six months ended June 30, 2022, was a net outflow of HKD 82,028,000, compared to a net inflow of HKD 40,690,000 for the same period in 2021[122]. - The net cash used in investing activities was HKD 38,058,000 for the first half of 2022, an increase from HKD 29,756,000 in the previous year[122]. - The cash flow from financing activities resulted in a net outflow of HKD 311,000, compared to a net outflow of HKD 3,223,000 in the same period of 2021[122]. Asset Management - The assets under management (AUM) as of June 30, 2022, were approximately USD 533 million, down 45.89% from USD 985 million as of December 31, 2021, representing a decrease of about USD 452 million[19]. - The company completed the sale of its CRM business for a total consideration of HKD 219,464,000, resulting in a gain of approximately HKD 50,157,000[10]. - The group achieved a gain from the sale of discontinued operations of HKD 50,157,000, compared to no gain in the previous year[30]. - The company completed the sale of its CRMS business for HKD 219,464,000 on March 22, 2022[51]. - The company reported a cash outflow of HKD 55,034,000 related to the sale of its CRM business, net of cash sold[122]. Corporate Governance - The company appointed Mr. Geng Tao as the new CEO effective September 13, 2022, ensuring compliance with corporate governance guidelines[100]. - The audit committee confirmed the effectiveness of the risk management and internal control systems as of June 30, 2022[102]. - The company has established an audit committee to oversee financial reporting and internal control processes, consisting of three independent non-executive directors[102]. - The company aims to maintain high standards of corporate governance to protect shareholder interests[100]. Market Conditions - The Hang Seng Index fell by 6.57% and the MSCI China Index (in USD) dropped by 12.27% during the first half of 2022, impacting the group’s managed fund performance[36]. - The group recognizes ongoing market instability and volatility, particularly due to the impacts of the Russia-Ukraine war and inflation, and will continue to balance risk and return[38]. - The group implemented strict cost control measures to improve profitability amid challenging market conditions[26]. - The group’s IM business remains optimistic about its medium to long-term prospects despite the challenging environment[37]. Employee and Compensation - The total employee compensation for continuing operations for the six months ended June 30, 2022, was approximately HKD 13,049,000, down from approximately HKD 25,009,000 in the same period last year[66]. - The company had a total of 34 employees as of June 30, 2022, a significant decrease from 1,979 employees as of December 31, 2021[65]. Shareholder Information - As of June 30, 2022, the company's total equity was approximately HKD 747,327,000, with a total issued share count of 11,495,494,321 shares[42]. - The company did not recommend any interim dividend for the six months ended June 30, 2022[69]. - The company has adopted a share option scheme effective from June 4, 2020, with a remaining term of approximately 7 years and 9 months[78]. - The maximum number of shares that can be issued upon the exercise of options under the scheme is capped at 1,134,647,232 shares, equivalent to about 10% of the issued shares at the time of adoption[79]. - The company has granted a total of 334,720,000 shares under the share incentive plan, which represents approximately 2.91% of the total issued shares as of June 30, 2022[94]. Financial Position - Total assets as of June 30, 2022, amounted to HKD 837,684,000, a decrease of 23.9% from HKD 1,099,916,000 as of December 31, 2021[116]. - Total liabilities decreased to HKD 90,357,000, down 72.1% from HKD 324,707,000[116]. - The company's equity attributable to owners increased to HKD 747,327,000 from HKD 775,209,000, a decrease of 3.6%[116]. - The company’s total reserves decreased to HKD 1,462,425,000 from HKD 1,467,001,000, a decline of 0.3%[119]. Investment and Fair Value - The fair value of financial assets as of June 30, 2022, totaled HKD 248,628,000, with HKD 109,706,000 classified as Level 1, HKD 128,266,000 as Level 2, and HKD 10,656,000 as Level 3[151]. - The company holds investments in funds with a fair value of HKD 301,327,000 as of December 31, 2021, with HKD 127,668,000 classified as Level 1 and HKD 162,116,000 as Level 2[153]. - The company’s financial assets include listed equity securities valued at HKD 70,763,000 from China and HKD 12,114,000 from the United States[151].

Business Focus and Strategy - The company sold its CRM services business for HKD 219.5 million to focus on investment management and strategic direct investment businesses[6] - The completion of the sale of the CRM business allows the management to focus more on the core investment management business and allocate resources flexibly for potential investment opportunities[12] - The investment management business includes securities advisory services, asset management, and trading of securities[12] - The strategic direct investment business involves proprietary investments in financial markets[13] - The company aims to leverage its capabilities in asset allocation, stock selection, and risk management to provide services to clients amidst market uncertainties[8] - The company aims to expand its investment management business by promoting its funds and advisory services to institutional clients and family offices, targeting an increase in AUM[35] - The company is focusing on developing its quantitative research and asset allocation model, Magic Abacus System, to provide comprehensive investment solutions[35] - The company anticipates that the current global volatility presents a unique opportunity for investment in China, with attractive valuations[34] Financial Performance - Assets under management (AUM) increased from approximately USD 355 million at the end of 2018 to about USD 985 million by the end of 2021, indicating steady growth in the investment management business[7] - The group's overall revenue for the year ended December 31, 2021, was approximately HKD 10,704,000, a decrease of about 93.6% from HKD 167,584,000 in 2020[23] - The group reported a loss attributable to equity holders of approximately HKD 67,729,000 for the year ended December 31, 2021, compared to a profit of approximately HKD 17,254,000 in 2020[26] - The fair value loss on financial assets for the year was approximately HKD 59,192,000, compared to a fair value gain of approximately HKD 22,993,000 in 2020[23] - The group recorded a net loss of approximately HKD 12,231,000 for the year ended December 31, 2021, compared to a net profit of approximately HKD 1,088,000 in 2020[29] - Other income increased significantly to approximately HKD 23,058,000 in 2021 from HKD 4,733,000 in 2020, mainly due to a one-time compensation of approximately HKD 18,962,000[24] Cost Management and Expenses - Total expenses for the CRMS business increased from approximately HKD 220,728,000 in 2020 to HKD 253,213,000 in 2021, primarily due to rising employee costs[27] - Employee benefits expenses rose by approximately HKD 54,976,000 to HKD 202,012,000 in 2021, accounting for about 79.8% of total expenses for the group[27] - Total operating expenses decreased from approximately HKD 166,812,000 in 2020 to HKD 85,938,000 in 2021, reflecting strict cost management[25] - The group aims to balance investment development with strict cost management to maintain profitability in its business segments[42] Market Conditions and Risks - The Chinese asset management market is currently over USD 20 trillion and is expected to continue strong growth over the next decade[7] - The CSI 300 index and Hang Seng index fell by 5.2% and 14.8% respectively in 2021, reflecting a challenging year for investors in China[8] - The group faces significant risks related to investment management, including pressure on assets under management (AUM) and management fees due to market conditions[75] - The company is subject to various risks including general economic conditions, which can impact investment performance and fund liquidity[78] - Future regulatory changes could lead to increased compliance costs and disclosure requirements, potentially impacting the fund's net asset value[85] Employee and Operational Insights - The group faced significant challenges in employee recruitment due to high service standards expected by CRM clients and a relatively high employee turnover rate[20] - The sustainability and growth of the group depend on the ability to recruit and retain competent employees, which is critical for achieving business and financial goals[91] - Employees are considered the most valuable asset, with the group offering competitive compensation and comprehensive performance evaluation programs[107] - The group employed 1,979 staff as of December 31, 2021, an increase from 1,874 in 2020[63] Regulatory and Compliance Matters - The company is committed to complying with new regulations and ensuring adherence to regulatory requirements in both Hong Kong and China[110] - The regulatory environment for alternative investment management is changing, which may adversely affect the value of fund investments and the ability to implement investment strategies[84] - The group has confirmed compliance with the disclosure requirements under the Listing Rules regarding related party transactions[138] Client and Revenue Dependency - A substantial portion of the group's revenue is derived from a few major clients, which poses a risk if these clients impose exclusivity clauses[87] - The group's revenue is heavily reliant on telecommunications service providers in Hong Kong, Macau, and China, making it vulnerable to market competition and pricing pressures[89] - The largest customer contributed approximately 34% of the group's service revenue, while the top five customers accounted for about 77% of the revenue from continuing operations[114] Environmental and Social Governance - The group plans to publish an Environmental, Social, and Governance (ESG) report in accordance with the Hong Kong Stock Exchange listing rules[65] - The group emphasizes environmental protection and has implemented measures to reduce environmental impact, including energy conservation and recycling initiatives[102]

Financial Performance - For the six months ended June 30, 2021, the revenue was approximately HKD 178,779,000, a decrease of about HKD 117,000 compared to the same period in 2020[6]. - The profit attributable to the company's owners for the six months ended June 30, 2021, was approximately HKD 4,313,000, a turnaround from a loss of HKD 12,274,000 in the same period of 2020[6]. - The operating profit for the same period was HKD 5,969,000, a significant improvement from an operating loss of HKD 15,635,000 in the previous year[103]. - The company reported total revenue of HKD 178,779,000, a slight decrease of 0.07% compared to HKD 178,896,000 in the same period of 2020[103]. - The company reported a loss of HKD 12,274,000 for the period, which reflects ongoing challenges in the market[115]. - The reported segment profit for the six months ended June 30, 2021, was HKD 11,048, down 51.2% from HKD 22,614 in the previous year[179]. Revenue Breakdown - Service revenue from the CRM business was approximately HKD 123,295,000, an increase of about 5% compared to HKD 117,301,000 in the previous year[10]. - The IM business generated revenue of approximately HKD 34,202,000, down from HKD 48,948,000 in the same period of 2020[10]. - Revenue from telecommunications industry clients increased by approximately 5% compared to the same period last year[19]. - Revenue from non-telecom industry clients increased by approximately 17% compared to the same period last year[20]. - Total revenue for the IM business was HKD 34,202 million, while the CRMS business generated HKD 123,295 million in revenue for the six months ended June 30, 2021[173]. Expenses and Costs - Total expenses decreased from approximately HKD 200,394,000 in the previous year to about HKD 176,663,000 in 2021[14]. - The total employee compensation paid by the group for the six months ended June 30, 2021, was approximately HKD 125,612,000, compared to HKD 109,822,000 for the same period last year[60]. - The company’s financial costs for the period were HKD 3,269,000, compared to HKD 3,006,000 in the previous year[103]. - The company incurred depreciation and amortization expenses totaling HKD 11,062 million during the reporting period[173]. Assets and Liabilities - The company reported total assets of HKD 1,269,460,000 as of June 30, 2021, an increase from HKD 1,258,594,000 at the end of 2020[111]. - The company’s total liabilities decreased to HKD 2,504,560,000 as of June 30, 2021, compared to HKD 2,472,060,000 at the end of the previous year[115]. - The company’s total equity attributable to the company's owners was HKD 838,736,000, up from HKD 829,782,000 at the end of 2020[111]. Cash Flow - The group recorded a cash flow increase of approximately HKD 7,360,000 for the six months ended June 30, 2021[46]. - The company reported a net cash flow from operating activities of HKD 40,690,000 for the six months ended June 30, 2021, compared to HKD 12,371,000 for the same period in 2020, representing an increase of 229%[117]. - The company incurred a net cash outflow from investing activities of HKD 29,756,000, a significant improvement from HKD 126,057,000 in the prior year[117]. Shareholder Information - The board proposed to issue up to 330,700,000 new shares under a share incentive plan, which was approved by shareholders on August 27, 2021[40]. - The company did not recommend any interim dividend for the six months ended June 30, 2021, consistent with the previous year[64]. - Zhao Linghuan holds 7,802,539,321 shares, representing approximately 68.76% of the company's equity[65]. Employee and Governance - The company emphasizes that employees are its most valuable asset and provides various employee benefits[65]. - The company has adopted a code of conduct that meets or exceeds the standards set out in the listing rules, ensuring compliance by all directors[93]. - The company has complied with all provisions of the corporate governance code as of June 30, 2021[98]. Investment and Strategy - The company plans to increase fundraising and marketing efforts while seeking additional investment opportunities in SDI to enhance shareholder returns[18]. - The group continues to pursue investment strategies that diversify its portfolio to mitigate market risks while generating returns[38]. - The group aims to enhance market penetration in China and explore opportunities in the non-telecom market, anticipating new market opportunities from the 14th Five-Year Plan[28]. Financial Risks and Management - The group faces various financial risks, including market risk, credit risk, liquidity risk, and price risk, which are consistent with those reported in the previous fiscal year[130]. - The group has not made any changes to its risk management policies since the end of the last fiscal year[131].