华科智能投资(01140) - 2025 - 中期财报

Investment Strategy - The investment strategy consists of four pillars: coreholding-centered unlisted equity investments, debt investments, fund investments, and listed equity investments, aimed at achieving a balanced and efficient portfolio[14]. - The company has undergone comprehensive adjustments and optimization of its investment strategy since last year, reflecting a proactive approach to market conditions[14]. - The focus on unlisted equity investments aims to identify and invest in companies with long-term growth potential, providing necessary capital support[15]. - Debt investment strategy is designed to achieve stable fixed income through bond purchases or loans, enhancing overall portfolio stability[15]. - Fund investment strategy leverages industry expertise and market insights from professional fund management companies to diversify investment opportunities[15]. - Listed equity investment strategy emphasizes short-term investment opportunities in both domestic and international secondary markets to balance liquidity and returns[15]. - The company aims to deliver continuous and stable investment returns to shareholders through its diversified investment strategies[15]. - The management discussion highlights the importance of comprehensive assessments of return, risk, and opportunity cost in investment decisions[6]. - The company is committed to maximizing the value of its capital and financing capability as a public entity[6]. - The company has re-established its four core investment strategies: unlisted equity investments, debt investments, fund investments, and listed equity investments[21]. - The company emphasizes investment diversity and risk diversification in response to market volatility and uncertainty[21]. Financial Performance - As of September 30, 2024, total revenue reached HK$249,745,000, an increase of 12.6$221,641,000 for the same period in 2023[54]. - The comprehensive income for the period ended September 30, 2024, was HK$96,876,000, compared to HK$72,502,000 for the same period in 2023, reflecting a growth of 33.6%[54]. - The company reported a dividend income and interest revenue of HK$128,897,000 for the six months ended September 30, 2024, down from HK$147,416,000 in the previous year[54]. - The Hong Kong segment generated revenue of HK$380,533,000 as of September 30, 2024, up from HK$269,908,000 as of March 31, 2024, indicating a significant increase[57]. - The Mainland China segment reported revenue of HK$304,082,000, a decrease from HK$399,831,000 in the previous period[57]. - The company’s earnings for the purpose of calculating basic and diluted earnings per share were HK$24,374,000 for the six months ended September 30, 2024, compared to HK$23,146,000 in 2023, representing a growth of 5.3%[62]. - The total comprehensive income for the period as of September 30, 2023, was HK$10,009,496,000, compared to HK$9,870,137,000 as of September 30, 2024[1]. Investment Valuation - Investments at fair value through profit or loss amounted to HK$1,730,589,000 as of September 30, 2024[46]. - The company’s fair value measurements included a discount rate range of 7.79$24,500,000, with a price-to-book ratio of 1.91[73]. - The Group's share of net assets from unlisted investment funds and limited partnerships was HK$1,733,915,000[73]. - The discounted cash flows for unlisted economic interests were valued at HK$1,632,000, with a discount rate of 11.70%[73]. Debt and Borrowing - The average effective interest rate on borrowings was 6.50% as of September 30, 2024, slightly down from 6.55% as of March 31, 2024[99]. - The Group's interest on borrowings for the period was HK$24,695,000, a decrease from HK$42,023,000 in the same period of the previous year, indicating a reduction of approximately 41.1%[81]. - The provision for expected credit losses (ECL) for debt investments was HK$29,224,000 for the six months ended September 30, 2024, compared to a reversal of HK$12,033,000 in the previous period[106]. - Total debt investments as of September 30, 2024, were HK$2,787,157,000, a decrease from HK$3,749,489,000 as of March 31, 2024[111]. - The tenure of debt investments ranged from 6 months to 2 years, with interest rates applied between 7.00% to 10.00% per annum[91]. Corporate Governance and Compliance - The Group's compliance with the Corporate Governance Code was confirmed, with no known issues reported[68]. - The Board is not aware of any information indicating non-compliance with the Corporate Governance Code during the reporting period[3]. - Management provided regular verbal reports to Directors, although monthly management accounts were not circulated, which was deemed sufficient for performance assessment[70]. Employee and Management Changes - The Group had 30 employees as of September 30, 2024, a decrease from 32 employees as of March 31, 2024[194]. - Total staff costs for the period amounted to HK$8.41 million, compared to HK$8.71 million for the six months ended 30 September 2023[194]. - Key management personnel compensation increased to HK$985,000 for the six months ended September 30, 2024, compared to HK$905,000 in the same period of 2023, reflecting a growth of approximately 8.8%[153]. - Dr. Liu Zhiwei resigned as an executive director on 9 October 2024[171]. - Mr. Chen Yuming resigned as an independent non-executive director effective 4 September 2024[179]. - Mr. Yang Songbin was appointed as an independent non-executive director and chairman of the audit committee effective 4 September 2024[181]. Investment Disposals - The company completed the disposal of Block AI Company Limited for a consideration of HK$15,000,000 on April 9, 2024[120]. - The total consideration for the disposal of Prestige Power Global Limited (PPG) was HK$865,863,000, completed on September 29, 2023[145]. - The gain on the disposal of PPG was HK$60,000, while the loss on the disposal of another subsidiary was HK$30,010[146]. - The net cash inflow from the disposal of Block AI Company Limited was HK$14,952,000 after accounting for cash and cash equivalents disposed of[121]. - The total liabilities disposed of in the recent transactions amounted to HK$54,278,000[126]. Future Outlook and Risks - The global economic outlook remains uncertain for the rest of 2024 due to changes in international situations affecting major economies[21]. - As of September 30, 2024, there were no plans for material investments or capital assets, but potential negotiations for investments may occur[1]. - The Group did not purchase, sell, or redeem any of its securities during the reporting period[1]. - There were no significant events after the reporting period that would impact the Group's financial position[2]. - The Group's maximum exposure to foreign exchange risk was RMB2,618.19 million, equivalent to HK$2,916.28 million[1]. - The Group held certain financial assets denominated in USD, with minimal exposure to USD foreign exchange risk due to the pegging of HKD to USD[1].