Financial Performance - The Group recorded a turnover of approximately RMB 8,869,000 for the six months ended 30 June 2020, representing a decrease of approximately 89.6% compared to RMB 84,976,000 for the same period in 2019[3]. - Loss attributable to owners of the Company for the six months ended 30 June 2020 amounted to approximately RMB 99,152,000, compared to a profit of approximately RMB 32,493,000 in 2019[3]. - Basic loss per share for the six months ended 30 June 2020 was RMB 5.73 cents, down from earnings per share of RMB 1.88 cents in 2019[3]. - Total comprehensive income for the period attributable to owners of the Company was a loss of RMB 99,342,000, compared to a profit of RMB 33,377,000 in 2019[6]. - Revenue for the three months ended June 30, 2020, was RMB 6,359,000, a decrease of 84.8% compared to RMB 42,001,000 for the same period in 2019[31]. - Revenue for the six months ended June 30, 2020, was RMB 8,869,000, a decrease of 89.6% compared to RMB 84,976,000 for the same period in 2019[31]. - Financial consultation services income for the three months ended June 30, 2020, was RMB 3,264,000, down 72.7% from RMB 11,978,000 in 2019[31]. - Interest income for the three months ended June 30, 2020, was RMB 1,738,000, an increase of 172.5% compared to RMB 637,000 in 2019[31]. - Loss before income tax expense for the three months ended June 30, 2020, was RMB 63,950,000, compared to a gain of RMB 684,000 in 2019[39]. - The company reported a net cash used in operating activities of RMB 8,510,000 for the six months ended June 30, 2020, compared to RMB 74,380,000 for the same period in 2019, indicating a significant improvement[19]. Assets and Liabilities - Cash and cash equivalents as of 30 June 2020 were RMB 7,658,000, down from RMB 16,973,000 as of 31 December 2019[10]. - Loans and accounts receivables as of 30 June 2020 totaled RMB 36,905,000, compared to RMB 53,747,000 as of 31 December 2019[10]. - The Group's non-current assets decreased from RMB 643,819,000 as of 31 December 2019 to RMB 99,443,000 as of 30 June 2020[10]. - As of June 30, 2020, the company's net assets decreased to RMB 657,585,000 from RMB 757,229,000 as of December 31, 2019, representing a decline of approximately 13.2%[12]. - The total current liabilities decreased from RMB 84,012,000 to RMB 74,075,000, a reduction of about 11.8%[12]. - The equity attributable to owners of the company decreased from RMB 745,451,000 to RMB 646,109,000, a decline of approximately 13.3%[12]. - The company's current tax liabilities decreased significantly from RMB 29,676,000 to RMB 22,014,000, a reduction of about 25.9%[12]. - The Group's financial assets at fair value through profit or loss amounted to RMB 544,328,000 as of June 30, 2020, a decrease from RMB 625,431,000 as of December 31, 2019[53][55]. - The Group's loans and accounts receivables include various types of financial receivables, indicating a diversified income stream[56]. - The Group's entrusted loan receivables involve loans arranged through banks or financial institutions, highlighting its operational strategy in the lending market[58]. Operational Challenges and Strategies - The Group faced unprecedented challenges during the review period, including the impact of the China-USA trade war and the COVID-19 outbreak, affecting operations due to travel restrictions and social distancing measures[78]. - The Group is committed to mitigating compliance risks and reducing operating costs through business transformation to maintain stable growth during the industry's downward cycle[79]. - The Group focused on developing pipeline property projects in 2020 to cope with the cyclical downturn of the real estate industry[88]. - The Group continued to optimize costs and strengthen internal controls to improve operational efficiency amid the industry's downward trend[99]. - The Group plans to focus on the development of existing property projects to secure a higher safety margin for business operations[123]. - The Group aims to expand its supply chain factoring and financial consultation services, with customized financial arrangements for target customers[127]. - The Group will enhance its fin-tech capabilities to provide technological services and system services to target customers, aiming to consolidate its market position[128]. - The Group will continue to invest in technological research and development to develop systemic solutions for no-contact services in response to changing consumer habits[129]. Shareholder Information - The Directors and management will continue to monitor foreign exchange exposure and consider utilizing derivatives to hedge against exchange risk when necessary[155]. - As of June 30, 2020, Mr. Zheng Weijing holds an equity interest of RMB 71,240,000, representing approximately 70.53% in Huilian Assets Management Company Limited[173]. - Ming Cheng Investments Limited holds 367,739,567 shares, accounting for approximately 21.24% of the total shares[179]. - Ms. Zhang Chushan, spouse of Mr. Zheng Weijing, has an interest in 408,369,769 shares, which is approximately 23.59% of the total shares[179]. - Sino-Africa Resources Holdings Limited, wholly owned by Mr. Huang Xiguang, holds 255,676,042 shares, representing approximately 14.77%[179]. - Peace Bloom Limited, wholly owned by Mr. Hu Jinxi, has an interest in 145,429,087 shares, which is approximately 8.40% of the total shares[179]. - Upsoar Limited, wholly owned by Ms. Fu Shanping, holds 155,518,650 shares, accounting for approximately 8.98%[179]. - As of June 30, 2020, no directors or chief executives had any interests or short positions in the shares or debentures of the company that required disclosure[174]. Employee and Administrative Expenses - Employee benefit expenses for the six months ended 30 June 2020 were RMB 12,980,000, down from RMB 27,032,000 in 2019[5]. - Total staff costs for the six months ended June 30, 2020, were approximately RMB 13.0 million, down from approximately RMB 27.0 million for the same period in 2019[160]. - The Group had a total of 114 staff as of June 30, 2020, down from 158 as of December 31, 2019[160]. - Administrative and employee benefit expenses decreased by approximately 58.9% to about RMB 24.6 million due to tightened expense control[110]. Investment and Development - The Group's investment in property development projects was significantly impacted by the COVID-19 outbreak, leading to a suspension of construction and sales activities[88]. - As of the report date, most of the Group's pipeline property development projects are located in Shenzhen and Dongguan, cities in the Greater Bay Area, which are expected to generate stable returns[89]. - As of June 30, 2020, the Group held investments in property development projects valued at approximately RMB 509,688,000, constituting over 10% of total financial assets at fair value and over 5% of total assets[138]. - The Group's investments in property development projects are spread across various cities, including Shenzhen, Dongguan, and Kunming, with a focus on the Guangdong-Hong Kong-Macao Greater Bay Area[142].
丰银禾控股(08030) - 2020 - 中期财报