华科智能投资(01140) - 2024 - 中期业绩

Unaudited Interim Results Announcement Disclaimer The HKEX and Stock Exchange disclaim responsibility for the announcement's content, accuracy, completeness, and any resulting losses - The HKEX and Stock Exchange disclaim responsibility for the announcement's content, make no statements, and accept no liability for any losses[29] Company Overview Wealthink AI-Innovation Capital Limited announces its unaudited condensed results for the six months ended September 30, 2023 - The company has been renamed Wealthink AI-Innovation Capital Limited and announced its unaudited condensed results for the six months ended September 30, 2023[30] Condensed Consolidated Statement of Profit or Loss and Other Comprehensive Income Profit or Loss Overview Total revenue significantly increased by 71.62% to HKD 147.42 million, but profit for the period substantially decreased to HKD 23.15 million, offset by unrealized and realized losses from investments at fair value through profit or loss Condensed Consolidated Statement of Profit or Loss and Other Comprehensive Income (Summary) | Indicator | Six Months Ended September 30, 2023 (HKD thousands) | Six Months Ended September 30, 2022 (HKD thousands) | | :--- | :--- | :--- | | Revenue | 147,416 | 85,904 | | Other income and gains, net | 84,570 | 7 | | Net change in unrealized investment (losses)/gains at fair value through profit or loss | (112,148) | (29,262) | | Net realized investment (losses)/gains on disposal/distribution | (45,141) | 21,510 | | Operating profit | 45,515 | 138,841 | | Share of profits of associates and joint ventures | 20,192 | 104,257 | | Profit for the period attributable to owners of the Company | 23,146 | 213,210 | | Basic earnings per share (HK cents) | 0.22 | 3.25 | - Total revenue increased by 71.62% year-on-year to HKD 147.42 million, primarily from debt investment income[123][124] - Profit for the period significantly decreased to HKD 23.15 million from HKD 213.21 million in the prior period, mainly offset by HKD 112.15 million in unrealized investment losses and HKD 45.14 million in realized losses from investments at fair value through profit or loss[123][126][127] Condensed Consolidated Statement of Financial Position Financial Position Overview As of September 30, 2023, total assets were HKD 11.138 billion, a slight decrease from March 31, 2023, with net assets at HKD 9.870 billion and net asset value per share at HKD 0.94 Condensed Consolidated Statement of Financial Position (Summary) | Indicator | September 30, 2023 (HKD thousands) | March 31, 2023 (HKD thousands) | | :--- | :--- | :--- | | Assets | | | | Non-current assets | 5,659,239 | 5,738,619 | | Current assets | 5,479,227 | 5,627,586 | | Total assets | 11,138,466 | 11,366,205 | | Equity and Liabilities | | | | Total equity | 9,870,137 | 10,010,755 | | Current liabilities | 1,260,175 | 1,347,468 | | Non-current liabilities | 8,154 | 7,982 | | Total liabilities | 1,268,329 | 1,355,450 | | Total equity and liabilities | 11,138,466 | 11,366,205 | | Net asset value per share | HKD 0.94 | HKD 0.95 | - Total assets were HKD 11.138 billion, a 2.00% decrease from HKD 11.366 billion as of March 31, 2023[33] - Net asset value was HKD 9.870 billion, with net asset value per share at HKD 0.94, a slight decrease from HKD 10.011 billion and HKD 0.95 respectively as of March 31, 2023[26][150] - Debt investments increased by 6.65% to HKD 3.5915 billion, primarily due to new investments during the period[122] - Bank and cash balances significantly decreased to HKD 34.38 million from HKD 108.36 million as of March 31, 2023[131][153] Notes to Condensed Consolidated Financial Statements 1. Basis of Preparation These condensed consolidated financial statements are prepared under HKAS 34 and Listing Rules, consistent with prior annual financial statements - The condensed consolidated financial statements are prepared in accordance with HKAS 34 and the Listing Rules[62] - Accounting policies and methods of computation are consistent with the annual financial statements for the year ended March 31, 2023[27] 2. Adoption of New and Revised HKFRSs The Group adopted all new and revised HKFRSs effective April 1, 2023, without significant changes to accounting policies or financial statement presentation, and is evaluating the impact of standards not yet effective - The adoption of new and revised HKFRSs did not result in significant changes to accounting policies or financial statement presentation[3] - The Group is evaluating the impact of new and revised HKFRSs not yet effective, but has not yet determined if there will be a significant impact[4] 3. Turnover and Revenue Turnover, comprising dividend income, interest income, and sales proceeds from investments at fair value through profit or loss, reached HKD 221.641 million, primarily driven by a 73.71% increase in interest income to HKD 147.416 million - Turnover is defined as the sum of dividend income, interest income, and gross proceeds from the sale/redemption of investments at fair value through profit or loss[5] Turnover and Revenue Analysis | Indicator | Six Months Ended September 30, 2023 (HKD thousands) | Six Months Ended September 30, 2022 (HKD thousands) | | :--- | :--- | :--- | | Dividend income | – | 1,038 | | Interest income | 147,416 | 84,866 | | Total revenue | 147,416 | 85,904 | | Gross proceeds from sale/redemption of investments at fair value through profit or loss | 74,225 | 125,289 | | Turnover | 221,641 | 211,193 | - Interest income increased by 73.71% year-on-year to HKD 147.416 million, mainly from debt instruments and bank time deposits[6][154] 4. Segment Information The Group identifies only one operating segment, investment holding, thus no segment disclosures are presented, while geographical revenue shows significant growth in Hong Kong, Mainland China, and the US - The Group identifies only investment holding as its sole operating segment, therefore no segment disclosures are presented[8] Geographical Revenue Analysis | Region | Six Months Ended September 30, 2023 (HKD thousands) | Six Months Ended September 30, 2022 (HKD thousands) | | :--- | :--- | :--- | | Hong Kong | 111,875 | 57,292 | | Mainland China | 33,289 | 26,786 | | United States | 2,252 | 1,826 | | Total Revenue | 147,416 | 85,904 | Revenue from Major Debt Investments | Debt Investment | Six Months Ended September 30, 2023 (HKD thousands) | Six Months Ended September 30, 2022 (HKD thousands) | | :--- | :--- | :--- | | Debt Investment A | 24,389 | – | | Debt Investment B | 20,305 | 12,058 | | Debt Investment C | 19,403 | 9,092 | | Debt Investment D | | 16,362 | | Debt Investment E | | 9,212 | Revenue amounts are less than 10% of the total revenue for the respective period. 5. Other Income and Gains, Net Other income and gains, net, significantly increased to HKD 84.57 million for the six months ended September 30, 2023, primarily from a net gain on disposal of a subsidiary of HKD 84.308 million Other Income and Gains, Net Analysis | Indicator | Six Months Ended September 30, 2023 (HKD thousands) | Six Months Ended September 30, 2022 (HKD thousands) | | :--- | :--- | :--- | | Net gain on disposal of a subsidiary | 84,308 | – | | Others | 262 | 7 | | Total | 84,570 | 7 | - Other income and gains, net, primarily refers to the HKD 84.81 million net gain on disposal of a subsidiary during the period[155] 6. Income Tax Expense No income tax provision was made for the period as the Group did not generate any assessable profits for the six months ended September 30, 2023, or 2022 - No assessable profits were generated during the current or prior periods, hence no income tax provision was made[13] 7. Profit for the Period Profit for the period is stated after deducting depreciation, expected credit loss reversals, and employee costs, with significant reductions in depreciation and expected credit loss reversals, and a slight increase in employee costs Profit for the Period Adjustment Items | Indicator | Six Months Ended September 30, 2023 (HKD thousands) | Six Months Ended September 30, 2022 (HKD thousands) | | :--- | :--- | :--- | | Depreciation of equipment | 1,019 | 2,942 | | Depreciation of right-of-use assets | 3,559 | 15,562 | | Expected credit loss (reversal)/provision — Debt investments | (12,033) | (97,829) | | Expected credit loss (reversal)/provision — Trade and other receivables, loans and interest receivables | 825 | (5,701) | | Total expected credit loss (reversal)/provision | (11,208) | (103,530) | | Employee costs (including directors' emoluments) | 8,711 | 8,336 | - Expected credit loss allowance reversal significantly decreased to HKD 11.21 million from HKD 103.53 million in the prior period, mainly due to a change in the expected credit loss allowance rate[15][157] - Employee costs slightly increased to HKD 8.711 million from HKD 8.336 million in the prior period[15] 8. Earnings Per Share Basic and diluted earnings per share for the six months ended September 30, 2023, significantly decreased to 0.22 HK cents from 3.25 HK cents in the prior period, primarily due to reduced profit Basis for Earnings Per Share Calculation | Indicator | Six Months Ended September 30, 2023 | Six Months Ended September 30, 2022 | | :--- | :--- | :--- | | Profit for the purpose of calculating basic and diluted earnings per share (HKD thousands) | 23,146 | 213,210 | | Weighted average number of ordinary shares for basic and diluted earnings per share (thousands of shares) | 10,520,325 | 6,560,757 | | Basic and diluted earnings per share (HK cents) | 0.22 | 3.25 | - Basic and diluted earnings per share significantly decreased to 0.22 HK cents, primarily due to reduced profit for the period[18] - The effect of all potential ordinary shares was anti-dilutive[18] 9. Trade and Other Receivables and Loans Total trade and other receivables and loans significantly decreased to HKD 28.024 million as of September 30, 2023, from HKD 114.516 million, with unsecured loans disposed of and dividends receivable settled Trade and Other Receivables and Loans Analysis | Indicator | September 30, 2023 (HKD thousands) | March 31, 2023 (HKD thousands) | | :--- | :--- | :--- | | Unsecured loans | – | 45,102 | | Trade receivables | 1,089 | 1,089 | | Amounts due from associates, joint ventures and related companies | 26,935 | 26,789 | | Dividends receivable | – | 41,536 | | Total | 28,024 | 114,516 | - Unsecured loans were disposed of during the period with the sale of a subsidiary[21] - Expected credit loss allowance for amounts due from associates decreased significantly from HKD 2.541 million in the prior period to HKD 7 thousand in the current period[23] - Dividends receivable were settled during the period[23] 10. Trade and Other Payables As of September 30, 2023, trade and other payables exceeding one year amounted to HKD 50 thousand, remaining consistent with March 31, 2023 Ageing Analysis of Trade and Other Payables | Ageing | September 30, 2023 (HKD thousands) | March 31, 2023 (HKD thousands) | | :--- | :--- | :--- | | Over 1 year | 50 | 50 | 11. Net Asset Value Per Share As of September 30, 2023, net asset value per share was HKD 0.94, a slight decrease from HKD 0.95 as of March 31, 2023, with total net asset value at HKD 9.870137 billion and unchanged issued ordinary shares - Net asset value per share was HKD 0.94, a slight decrease from HKD 0.95 as of March 31, 2023[26][150] - Total net asset value was HKD 9.870137 billion, with the number of issued ordinary shares remaining unchanged at 10,520,324,505 shares[26][163] 12. Dividends No dividends were paid or proposed for ordinary shareholders during the six months ended September 30, 2023, and no dividends were proposed at the end of the reporting period - No dividends were paid or proposed for ordinary shareholders during the current or prior corresponding periods[37] Management Discussion and Analysis Overview of Wealthink AI-Innovation Capital Wealthink AI-Innovation Capital is a cross-border investment company focused on high-growth industries in China, leveraging long-term investment, industry, technology, and financial capital through private equity, portfolio management, and trading strategies - The company focuses on cross-border investments in China's high-growth industries, aiming to create value with a long-term investment perspective[47] - Investment strategies comprise private equity (core holdings), portfolio management, and trading and others, with returns derived from interest, dividends, and capital appreciation[47] Investment Review Amid China's economic downturn and weak capital markets, the Group adjusted its investment strategy, increasing fixed-income and income-generating investments, and focusing on emerging technology sectors, with HKD 3.49846 billion in new investments and HKD 3.29932 billion in disposals - Facing macroeconomic challenges, the company increased fixed-income and income-generating investments, focusing on emerging technology sectors[63] - New investments totaled HKD 3.49846 billion, primarily through private equity, debt investments, funds, and listed securities; disposals amounted to HKD 3.29932 billion, mainly from listed securities, funds, private equity, and debt investments[64][135] Investment Strategy The Group's investment strategy is divided into private equity (core holdings), portfolio management, and trading and others, aiming to balance long-term growth, medium-term returns, and asset liquidity - The private equity strategy aims to make direct investments using proprietary capital, empowering quality enterprises with a focus on long-term core holdings[50] - The portfolio management strategy focuses on medium-to-long-term investments in the secondary market, fixed-income investments, and others, expected to generate medium-term returns[50] - The trading and other strategies aim to capture short-term investment opportunities in domestic and overseas secondary markets and other opportunistic transactions, balancing asset liquidity and return rates[50] Investment Portfolio Details As of September 30, 2023, the Group's investment portfolio is primarily concentrated in fixed income, smart education, technology, media and telecommunications, and fintech, accounting for 75.60% of total holdings - The four major areas of the existing investment portfolio are fixed income, smart education, technology, media and telecommunications, and fintech, accounting for 75.60% of total holdings[66] Investment Portfolio by Sector | Sector | Proportion | | :--- | :--- | | Fixed Income | 33.23% | | Smart Education | 15.78% | | Technology, Media and Telecommunications | 15.54% | | Fintech | 11.05% | | Financial Services | 6.32% | | Healthcare and Wellness | 9.99% | | Others | 8.09% | Investment Portfolio by Investment Horizon | Investment Horizon | Proportion | | :--- | :--- | | Less than one year | 36.72% | | One to two years | 30.43% | | Greater than five years | 16.12% | | Three to five years | 13.08% | | Two to three years | 3.65% | Private Equity As of September 30, 2023, the Group's private equity holdings amounted to HKD 3.72787 billion, comprising long-term core holdings and other private equity, with no new investments and HKD 156.79 million in disposals during the period - Private equity holdings amounted to HKD 3.72787 billion, divided into long-term core holdings and other private equity[93] - No new private equity investments were made, and disposals amounted to HKD 156.79 million during the period[77] Long-term Core Holdings The Group designates iCarbonX, CSOP Asset Management, and OPIM Holdings Limited as long-term core holdings, totaling HKD 1.08229 billion, to support their development and pursue long-term investment returns - iCarbonX, CSOP Asset Management, and OPIM Holdings Limited are long-term core holdings, with a total carrying amount of HKD 1.08229 billion[55] iCarbonX Group Limited iCarbonX is a global leader in AI and precision health management, focusing on digital health and peptide chip technology, with the Group holding a 7.73% equity interest valued at HKD 911.34 million as a long-term core holding - iCarbonX is a global leader in artificial intelligence and precision health management, focusing on digital health management[95] - The Group holds a 7.73% equity interest in iCarbonX, with a carrying amount of HKD 911.34 million, considered a long-term core holding[56][70] - iCarbonX will focus on developing peptide drugs, in-vitro diagnostics, chip manufacturing, medical, and technology services in the future[57] CSOP Asset Management Limited CSOP Asset Management is a renowned Hong Kong asset management company specializing in China investments, with the Group holding a 22.5% equity interest valued at HKD 139.95 million, reflecting its strong performance in ETF issuance and innovation - CSOP Asset Management is a renowned Hong Kong asset management company, managing over USD 12.6 billion, specializing in China investments[59] - The Group holds a 22.5% equity interest in CSOP Asset Management, with a carrying amount of HKD 139.95 million, a 26.86% increase from the previous period due to its sustained strong performance[58][97] - CSOP Asset Management excels in ETF issuance and innovation, holding six positions among the top 10 most actively traded ETPs listed on the HKEX[98] OPIM Holdings Limited OPIM Holdings Limited is a leading Asian hedge fund platform managing over 35 funds with assets exceeding USD 1.5 billion, in which the Group holds a 30% equity interest and 100% non-voting preference shares, valued at HKD 31 million, with expected continuous business growth - OPIM Holdings Limited is a leading Asian hedge fund platform, managing over 35 funds with assets exceeding USD 1.5 billion[101][100] - The Group holds 30% of issued ordinary shares and 100% of non-voting preference shares in OPIM Holdings Limited, with a carrying amount of HKD 31 million[75][100] - OPIM Holdings Limited is expected to benefit from the opening of China's financial markets, with potential for continuous business growth[76] Other Private Equity Other private equity holdings amounted to HKD 2.64558 billion, with no new investments and HKD 156.79 million in disposals during the period, primarily including Jiedaibao and Shanghai Hengjia Meilian - Other private equity holdings amounted to HKD 2.64558 billion, with no new investments and disposals of HKD 156.79 million during the period[77] Jiedaibao Co., Ltd. Jiedaibao is an internet fintech company offering personal and corporate lending services, in which the Group holds a 2.49% equity interest valued at HKD 971.42 million, anticipating considerable medium-term returns from its growing business scale - Jiedaibao provides peer-to-peer lending and supply chain finance services, aiming to solve financing difficulties for SMEs[78] - The Group holds a 2.49% equity interest in Jiedaibao, with a carrying amount of HKD 971.42 million[78][104] - Jiedaibao's growing business scale is expected to bring considerable medium-term returns to the Group[79] Shanghai Hengjia Meilian Development Co., Ltd. Hengjia Meilian is a diversified group primarily engaged in equity investment, property investment, and commodity trading, in which the Group has invested HKD 450 million for a 14.9% equity interest, expecting development opportunities and medium-term returns from financial market liberalization - Hengjia Meilian is a diversified group primarily engaged in equity investment, property investment, and commodity trading, focusing on financial services equity investments[80] - The Group has invested HKD 450 million, holding a 14.9% equity interest in Hengjia Meilian[80][106] - Hengjia Meilian is expected to seize development opportunities amid financial market liberalization, bringing medium-term returns[107] Portfolio Management As of September 30, 2023, the Group's portfolio management holdings amounted to HKD 7.02928 billion, including listed securities, debt investments, fund investments, and income right investments, with HKD 3.48205 billion in new investments and HKD 3.13909 billion in disposals - Portfolio management holdings amounted to HKD 7.02928 billion, including listed securities, debt investments, fund investments, and income right investments[82] - New investments totaled HKD 3.48205 billion, and disposals amounted to HKD 3.13909 billion during the period[82] - The debt instrument investment portfolio recorded expected credit loss provisions, and market prices of some listed securities changed[82] - Debt investment interest rates ranged from 7% to 10% (compared to 6% to 10% in the prior period), with total interest income of HKD 147.09 million[109] Sichuan Honghu Zhiyuan Education Management Group Co., Ltd. Honghu Education focuses on operating private high schools, providing inclusive and high-quality education through technology, with the Group acquiring income rights to a 29.99% equity interest valued at HKD 1.70486 billion, expecting medium-term returns - Honghu Education focuses on operating private high schools, providing inclusive and high-quality education through technology empowerment[111] - The Group acquired the income right to a 29.99% equity interest in Honghu Education, with a carrying amount of HKD 1.70486 billion[84][111] - Honghu Education adopts the 'RAIC (Ruike) model', combining AI systems to provide personalized education experiences[111] Hong Kong Nanshan Development Ltd 7.5% 23-05-2024 (Nanshan Bond) The Group subscribed to Nanshan Bond with a principal amount of HKD 975 million, a 7.5% coupon rate, maturing on May 24, 2024, guaranteed by Nanshan Group, providing stable returns in a volatile economic environment - The Group subscribed to Nanshan Bond with a principal amount of HKD 975 million, a coupon rate of 7.5%, maturing on May 24, 2024[86][143][178] - Nanshan Group provides a guarantee, with its long-term corporate credit rating of 'AAA'[113][144][178] - The Group believes Nanshan Bond offers stable returns in a volatile economic environment, with an interest rate higher than fixed deposits[144] Qingdao Wanfeng Shidai Linghang Equity Investment Center (Shidai Linghang Fund) The Group's holding in Shidai Linghang Fund is HKD 758.87 million, which primarily invests in unlisted equity of emerging technology industries like cybersecurity, internet, and AI, aiming for indirect participation and risk reduction in China's emerging tech sector - The Group's holding in Shidai Linghang Fund is HKD 758.87 million[87][145] - Shidai Linghang Fund primarily invests in unlisted equity of emerging technology industries such as cybersecurity software, internet, and artificial intelligence[145] - The Group believes subscribing to this fund allows indirect participation in China's emerging technology industry, reducing direct investment risks through professional management, and is expected to bring medium-term returns[88] Qingdao Taihe Specialized and New Equity Investment Center (Specialized and New Fund) The Group's holding in Specialized and New Fund is HKD 416.42 million, which primarily invests in innovative unlisted companies focusing on niche markets with specialized technologies, covering energy conservation, environmental protection, and fintech, aiming for diversified investment opportunities - The Group's holding in Specialized and New Fund is HKD 416.42 million[89][116] - The Specialized and New Fund primarily invests in innovative unlisted companies focusing on niche markets with specialized technologies, covering energy conservation, environmental protection, and fintech industries[89] - The Group believes subscribing to this fund offers diversified investment opportunities and potential returns from various high-growth industries[117] Qingdao Dongying Linghang Equity Investment Center (Dongying Linghang Fund) The Group invested RMB 450 million in Dongying Linghang Fund, which covers technological innovation and market expansion in China's advanced manufacturing sector, including new materials, high-end equipment, biotechnology, and next-generation information technology, expecting new growth momentum - The Group invested RMB 450 million in Dongying Linghang Fund[147] - Dongying Linghang Fund covers technological innovation and market expansion in China's advanced manufacturing sector, including new materials, high-end equipment manufacturing, biotechnology, and next-generation information technology[91] - The Group believes subscribing to this fund will provide opportunities to participate in future economic growth and benefit from the rapid development of China's advanced manufacturing sector[91] Trading and Others As of September 30, 2023, the Group's trading and other holdings amounted to HKD 49.20 million, primarily in listed securities and other equity investments, with new and disposed investments made to enhance capital liquidity and generate returns - Trading and other holdings amounted to HKD 49.20 million, primarily listed securities (HKD 48.75 million) and other equity investments (HKD 0.45 million)[119] - New and disposed investments in certain listed securities were made during the period to enhance capital liquidity and generate returns[119] Financial Review This section reviews the Group's financial position and profit or loss performance, noting a decrease in debt-to-asset and debt ratios, improved liquidity, significant revenue growth, but a substantial decrease in profit due to investment losses Financial Position As of September 30, 2023, the Group's debt-to-asset ratio decreased to 0.13 from 0.14, with net assets at HKD 9.87014 billion and net asset value per share at HKD 0.94, while investments at fair value through profit or loss decreased and debt investments increased - The debt-to-equity ratio (total liabilities divided by total equity) was 0.13, a decrease from 0.14 as of March 31, 2023[120] - Net asset value was HKD 9.87014 billion, with net asset value per share at HKD 0.94, a slight decrease from March 31, 2023[150] - Investments at fair value through profit or loss amounted to HKD 6.37512 billion, a 4.25% decrease, mainly due to RMB depreciation[152] - Debt investments increased by 6.65% to HKD 3.59150 billion, primarily due to new investments during the period[122] - Bank and cash balances amounted to HKD 34.38 million, a significant decrease from HKD 108.36 million as of March 31, 2023[153] Condensed Consolidated Statement of Profit or Loss and Other Comprehensive Income (Review) Total revenue increased by 71.62% to HKD 147.42 million, driven by debt investment interest income, but profit for the period significantly decreased to HKD 23.15 million, offset by unrealized and realized investment losses and reduced share of profits from associates and joint ventures - Total revenue increased by 71.62% to HKD 147.42 million, primarily from debt investment interest income[123][124] - Profit for the period was HKD 23.15 million, compared to HKD 213.21 million in the prior period, mainly offset by HKD 112.15 million in unrealized investment losses and HKD 45.14 million in realized losses from investments at fair value through profit or loss[123][126][127] - Other income and gains, net, primarily refers to the HKD 84.81 million net gain on disposal of a subsidiary[155] - Share of profits of associates and joint ventures, net, was HKD 20.19 million, a significant decrease from HKD 104.26 million in the prior period, mainly due to the share of losses from Treasure Up[158] - Operating and administrative expenses decreased to HKD 32.03 million, primarily due to reduced depreciation of right-of-use assets from office relocation[128] - Net loss from other comprehensive expenses was HKD 163.76 million, mainly due to exchange differences from RMB depreciation[129] Dividend Policy and Proposed Interim Dividend The Board will consider the Group's financial position, cash flow, future investment plans, and macroeconomic conditions to determine dividend distribution, and resolved not to pay any interim dividend for the period - The Board will comprehensively consider the Group's financial position, cash flow, future investment plans, and macroeconomic conditions to determine dividend distribution[160] - The Board resolved not to pay any interim dividend for the period[160] - Current main income sources are investment dividend income and interest income from bank deposits and financial instruments[161] Liquidity and Financial Resources As of September 30, 2023, the Group had bank and cash balances of HKD 34.38 million and total borrowings of HKD 1.17692 billion, with an equity-to-debt ratio of 11.92%, debt-to-asset ratio of 10.57%, and a current ratio of 4.35 times, indicating sufficient liquidity - Bank and cash balances amounted to HKD 34.38 million, a decrease from HKD 108.36 million as of March 31, 2023[131] - Total borrowings amounted to HKD 1.17692 billion, a decrease from HKD 1.28039 billion as of March 31, 2023[131] - The equity-to-debt ratio (interest-bearing external borrowings divided by shareholders' equity) was 11.92%, and the debt-to-asset ratio (total borrowings divided by total assets) was 10.57%[131] - The current ratio (current assets divided by current liabilities) was 4.35 times, indicating sufficient liquidity[131] - The Board believes that operating and borrowing resources are sufficient to meet future continuous investment and working capital needs[162] Capital Structure As of September 30, 2023, shareholders' equity was HKD 9.870137 billion, with the total number of issued shares at 10,520,324,505, consistent with March 31, 2023 - Shareholders' equity was HKD 9.870137 billion, with the total number of issued shares at 10,520,324,505, consistent with the end of the prior period[163] Significant Acquisitions and Disposals of Investments During the period, the Group made new investments totaling HKD 3.49846 billion, primarily in portfolio management (debt instruments and income rights), and disposed of investments totaling HKD 3.29932 billion, mainly from portfolio management (listed securities and other investments) Significant Acquisitions and Disposals of Investments | Category | New/Additional Investments (HKD millions) | Disposals/Sales of Investments (HKD millions) | | :--- | :--- | :--- | | Private Equity | – | (156.79) | | Portfolio Management | 3,482.05 | (3,139.09) | | — Listed Securities | 0.01 | (425.15) | | — Debt Instruments | 1,288.18 | (1,039.07) | | — Income Rights | 1,704.86 | – | | — Others | 489.00 | (1,674.87) | | Trading and Others | 16.41 | (3.44) | | Total | 3,498.46 | (3,299.32) | - New investments in the portfolio management category totaled HKD 3.48205 billion, including HKD 1.70486 billion in income right investments and HKD 1.28818 billion in debt instrument investments[135] - Disposals in the portfolio management category totaled HKD 3.13909 billion, including HKD 1.67487 billion in other investments and HKD 1.03907 billion in debt instrument investments[135] Advances to Entities The Group, through its wholly-owned subsidiary, subscribed to Nanshan Bond with a principal amount of HKD 975 million, an annual interest rate of 7.5%, guaranteed by Nanshan Group, and maturing on May 24, 2024 - The Group subscribed to Nanshan Bond with a principal amount of HKD 975 million, an annual interest rate of 7.5%, maturing on May 24, 2024[178] - Nanshan Group unconditionally and irrevocably guaranteed all payments for the Nanshan Bond[178] Employees As of September 30, 2023, the Group had 31 employees, with total staff costs of HKD 8.71 million, a slight increase from the prior period, and remuneration policy aligned with market practices based on individual performance and experience - As of September 30, 2023, the Group had 31 employees, a slight decrease from 33 as of March 31, 2023[179] - Total staff costs for the period amounted to HKD 8.71 million, a slight increase from HKD 8.34 million in the prior period[179] - Remuneration policy is consistent with market practices, determined by individual employee performance and experience[179] Share Option Scheme No share options were granted or exercised by the Board during the period, and as of September 30, 2023, zero share options remained outstanding under the scheme - No share options were granted or exercised by the Board during the period[138] - As of September 30, 2023, zero share options remained outstanding under the share option scheme[138] Foreign Exchange Fluctuation Risk and Related Hedging The Group is primarily exposed to foreign exchange risk from RMB-denominated financial instruments, with a maximum exposure of RMB 3.01906 billion (equivalent to HKD 3.24020 billion), while USD exchange risk is minimal due to the HKD peg - The Group is primarily exposed to foreign exchange risk from RMB-denominated financial instruments, with a maximum exposure of RMB 3.01906 billion (equivalent to HKD 3.24020 billion)[167] - USD exchange rate risk is minimal due to the HKD peg to the USD[139] Pledge of Assets and Contingent Liabilities of the Group As of September 30, 2023, the Group had no pledge of assets, except for certain interests in associates and debt investments pledged for bank loans - As of September 30, 2023, the Group had no pledge of assets, except for certain interests in associates and debt investments pledged for bank loans[168] Plans for Material Investments or Capital Assets and Expected Sources of Funding As of September 30, 2023, there were no plans for material investments or capital assets, but the Group may negotiate potential investments at any time as part of its ordinary course of business - As of September 30, 2023, there were no plans for material investments or capital assets[169] - The company considers new investments as part of its ordinary course of business, and management may make announcements during the financial year[169] Purchase, Sale or Redemption of Securities Neither the Group nor any of its subsidiaries purchased, sold, or redeemed any of the Group's securities during the period - Neither the Group nor any of its subsidiaries purchased, sold, or redeemed any of the Group's securities during the period[183] Change of Company Name The company's English name was changed to "Wealthink AI-Innovation Capital Limited" and its Chinese name to "華科智能投資有限公司" on August 28, 2023, reflecting its innovation-driven investment strategy focused on AI and high-tech industries - The company's English name was changed to 'Wealthink AI-Innovation Capital Limited' and its Chinese name to '華科智能投資有限公司', effective August 28, 2023[142][183] - The name change aims to provide a new corporate image and reflect the company's innovation-driven investment strategy, focusing on quality investment opportunities in AI and high-tech industries[183] Events After Reporting Period The company's stock short name on the Stock Exchange was changed to "WEALTHINK AI" and "華科智能投資" effective October 9, 2023, with the stock code unchanged, and a new company logo adopted on October 3, 2023 - The company's stock short name on the Stock Exchange was changed to 'WEALTHINK AI' and '華科智能投資', effective October 9, 2023, with the stock code remaining unchanged[171] - A new company logo was adopted on October 3, 2023[171] Corporate Governance Corporate Governance Code The company has complied with the Corporate Governance Code in Appendix 14 of the Listing Rules, with management regularly reporting to the Board, which is deemed sufficient for performance assessment - The company has complied with the Corporate Governance Code in Appendix 14 of the Listing Rules[186] - Management regularly reports to the Board, which the directors deem sufficient for proper performance assessment[172] Model Code for Securities Transactions by Directors of Listed Issuers The company adopted a policy supplementing the Model Code, and all directors confirmed full compliance with both the Model Code and internal policy during the period - The company has adopted a 'Policy on Securities Transactions by Directors and Employees' to supplement the Model Code set out in Appendix 10 of the Listing Rules[173] - All directors confirmed full compliance with the Model Code and the aforementioned internal policy during the period[173] Directors' Rights to Acquire Shares and Debentures During the period, neither the company nor its associated corporations entered into any arrangements enabling directors or chief executives to acquire any interests or short positions in shares, related shares, or debentures of the company or its associated corporations - During the period, neither the company nor its associated corporations entered into any arrangements enabling directors or chief executives to acquire any interests or short positions in shares, related shares, or debentures of the company or its associated corporations[174] Audit Committee The Audit Committee, comprising three independent non-executive directors, reviewed the Group's accounting principles and practices with management, discussing audit and financial reporting matters, including the condensed consolidated interim financial information for the period - The Audit Committee reviewed the accounting principles and practices adopted by the Group with management, and discussed audit and financial reporting matters, including the condensed consolidated interim financial information for the period[175] Review of Interim Financial Information External Auditor Review The external auditor reviewed the unaudited interim financial information for the period in accordance with Hong Kong Standard on Review Engagements 2410 - The external auditor reviewed the unaudited interim financial information for the period in accordance with Hong Kong Standard on Review Engagements 2410[190] Forward-Looking Statements Nature of Forward-Looking Statements This interim results announcement contains forward-looking statements based on the Board's beliefs, assumptions, and expectations, where actual results or performance may differ materially due to risks, uncertainties, and other factors beyond the company's control - This interim results announcement contains forward-looking statements based on the Board's beliefs, assumptions, and expectations[190] - Actual results or performance may differ materially due to risks, uncertainties, and other factors beyond the company's control[190] Publication of Interim Results and Interim Results Announcement Publication Details The interim results announcement has been published on the Stock Exchange and the company's website and will be dispatched to the company's shareholders at the appropriate time - The interim results announcement has been published on the Stock Exchange website and the company's website (www.1140.com.hk)[191](index=191&type=chunk) - The interim results announcement will be dispatched to the company's shareholders at the appropriate time[191]