未来发展控股(01259) - 2023 - 中期财报

Company Information This section provides essential corporate details for Future Development Holdings Limited, covering governance, key personnel, and administrative contacts Management Discussion and Analysis The Group focused on continuing operations in catering services, financial services, and property holding, while divesting several discontinued businesses Business Review The Group's business review highlights performance across continuing operations in catering, financial services, and property holding, alongside the strategic divestment of discontinued segments Continuing Operations In continuing operations, catering services revenue slightly decreased by 5.8% to HKD 204.7 million, financial services revenue grew by 43.4% to HKD 36.2 million but recorded an expanded segment loss, and property holding turned profitable with HKD 0.3 million in revenue and HKD 4.4 million in profit Continuing Operations Segment Performance (For the six months ended June 30, 2023) | Business Segment | Revenue (HKD million) | YoY Change | Segment Profit/(Loss) (HKD million) | Prior Period Profit/(Loss) (HKD million) | | :--- | :--- | :--- | :--- | :--- | | Provision of catering services | 204.7 | -5.8% | 4.8 | 5.1 | | Provision of financial services | 36.2 | +43.4% | (14.9) | (2.8) | | Property holding | 0.3 | N/A (0 in prior year) | 4.4 | (4.2) | - The financial services segment, including securities brokerage, margin financing, asset management, and professional services, turned from profit to loss, recording a loss of HKD 5.1 million (profit of HKD 19.2 million in the prior period), primarily due to decreased revenue and recognition of HKD 7.0 million impairment loss on margin financing trade receivables[13][14] - The Group is developing an asset-backed credit card business, allowing consumers to exchange assets (potentially including cryptocurrencies) for credit lines, which is in its early stages and recorded a loss of HKD 9.8 million during the period due to increased staff costs[18][19] Discontinued Operations The Group fully divested personal care products, compliance advisory services, and finance lease businesses, all generating no revenue during the reporting period, while the temperature-controlled warehousing business was sold, contributing HKD 1.9 million in revenue before termination - The personal care products business (Frog Prince) was sold in 2022, generating no revenue in the reporting period compared to HKD 219.0 million in the prior period[27] - The temperature-controlled warehousing business (Greater China Cold Chain Logistics) was sold during the reporting period, recording HKD 1.9 million in revenue (a 65.7% decrease YoY) and a loss of HKD 0.5 million[31] - The Group's principal businesses include catering services, financial services, property holding, and investment holding[6] - During the reporting period, the Group sold a subsidiary engaged in temperature-controlled warehousing and related services, and in prior years, subsidiaries engaged in personal care products, compliance advisory services, finance lease, and factoring businesses were sold and presented as discontinued operations[6] Financial Review The Group's financial performance saw a slight revenue decrease but improved gross profit and a narrowed loss attributable to equity holders, maintaining a stable liquidity position Key Financial Indicators Summary (For the six months ended June 30, 2023) | Indicator | H1 2023 | H1 2022 | YoY Change | | :--- | :--- | :--- | :--- | | Revenue | 241.2 HKD million | 242.7 HKD million | -0.6% | | Gross Profit | 54.4 HKD million | 45.8 HKD million | +18.7% | | Gross Margin | 22.6% | 18.9% | +3.7 percentage points | | Administrative Expenses | 47.6 HKD million | 37.8 HKD million | +26.0% | | Loss attributable to equity holders | (20.4) HKD million | (69.9) HKD million | Loss narrowed | | Basic loss per share | (0.90) HK cents | (3.08) HK cents | Loss narrowed | - The Group changed its functional and presentation currency from RMB to HKD effective September 1, 2022, to better reflect its business focus in Hong Kong[32][35] - As of June 30, 2023, the Group's cash and bank balances were approximately HKD 363 million, with a current ratio of 2.7 and a gearing ratio of 28.8%, indicating stable liquidity[53][63] - During the reporting period, the Group sold its entire interest in Greater China Cold Chain Logistics Limited for HKD 2.3 million, recognizing a disposal gain of approximately HKD 1.1 million[48] Future Outlook The Group plans cautious business development, focusing on high-margin products in catering, asset-backed credit cards in financial services, and property redevelopment, while seeking new investment opportunities - Catering business: To address inflation and geopolitical challenges, the Group will expand high-margin products and collaborate with diverse suppliers to control costs[73] - Financial business: Optimistic about the prospects of Hong Kong's financial services industry, the Group will focus on investing in and developing asset-backed credit card business and providing support services for SMEs[75] - Property holding: The Group plans to redevelop its land parcel in Yuen Long, Hong Kong, with conditional government approval already obtained for redevelopment plans for part of the land[76] Employees and Remuneration As of June 30, 2023, the Group employed 81 staff members, with remuneration determined by individual performance, qualifications, and market trends, supported by an MPF scheme and a share option scheme to incentivize employees - As of June 30, 2023, the Group's employee count was 81, a slight decrease from 84 at the end of 2022[77] - The Group has an MPF scheme and adopted a share option scheme in June 2021 to incentivize and reward employees and other eligible participants[77][79] Dividends The Board resolved not to declare any interim dividend for the six months ended June 30, 2023 - No interim dividend was declared for this reporting period, consistent with the prior period[80] Unaudited Condensed Consolidated Interim Financial Statements This section presents the unaudited condensed consolidated interim financial statements, including the statement of profit or loss, financial position, changes in equity, cash flows, and detailed notes on accounting policies and segment information Condensed Consolidated Statement of Profit or Loss and Other Comprehensive Income For the six months ended June 30, 2023, the Group recorded a loss for the period of HKD 12.6 million, significantly narrowed from HKD 67.6 million in the prior period, with continuing operations contributing a loss of HKD 13.1 million and discontinued operations a profit of HKD 0.6 million, resulting in a loss attributable to equity holders of HKD 20.4 million Consolidated Statement of Profit or Loss Summary (For the six months ended June 30) | Item (HKD thousand) | 2023 (Unaudited) | 2022 (Unaudited, Restated) | | :--- | :--- | :--- | | Continuing Operations | | | | Revenue | 241,174 | 242,674 | | Gross Profit | 54,432 | 45,839 | | Loss before tax | (9,067) | (13,692) | | Loss for the period | (13,143) | (16,268) | | Discontinued Operations | | | | Profit/(Loss) for the period | 573 | (51,373) | | Total | | | | Loss for the period | (12,570) | (67,641) | | Loss attributable to equity holders of the Company | (20,411) | (69,949) | Condensed Consolidated Statement of Financial Position As of June 30, 2023, the Group's total assets were HKD 931.1 million, total liabilities were HKD 268.3 million, and net assets were HKD 662.8 million, with net current assets of HKD 442 million and cash and bank balances of HKD 363 million, maintaining a stable financial position Consolidated Statement of Financial Position Summary | Item (HKD thousand) | June 30, 2023 (Unaudited) | December 31, 2022 (Audited) | | :--- | :--- | :--- | | Total Assets | 931,105 | 913,430 | | Non-current assets | 229,973 | 203,616 | | Current assets | 701,132 | 709,814 | | Total Liabilities | 268,308 | 254,280 | | Current liabilities | 259,026 | 248,325 | | Non-current liabilities | 9,282 | 5,955 | | Net Assets | 662,797 | 659,150 | | Total Equity | 662,797 | 659,150 | Condensed Consolidated Statement of Changes in Equity As of June 30, 2023, equity attributable to equity holders of the Company slightly decreased from HKD 625.2 million at the beginning of the period to HKD 621.6 million, while total equity increased from HKD 659 million to HKD 663 million, primarily due to a loss for the period of HKD 20.4 million and a fair value gain of HKD 16.7 million on financial assets at fair value through other comprehensive income - During the reporting period, equity attributable to equity holders of the Company decreased by HKD 3.7 million, from HKD 625.2 million to HKD 621.6 million[90] Condensed Consolidated Statement of Cash Flows During the reporting period, the Group generated net cash inflow from operating activities of HKD 67.3 million, compared to a net outflow of HKD 116.2 million in the prior period, with net cash inflow from investing activities of HKD 2.5 million and net cash outflow from financing activities of HKD 14.0 million, resulting in cash and cash equivalents of HKD 362.7 million at period-end, an increase of HKD 55.8 million from the beginning of the period Consolidated Statement of Cash Flows Summary (For the six months ended June 30) | Item (HKD thousand) | 2023 (Unaudited) | 2022 (Unaudited, Restated) | | :--- | :--- | :--- | | Net cash from/(used in) operating activities | 67,333 | (116,168) | | Net cash from investing activities | 2,472 | 9,989 | | Net cash (used in)/from financing activities | (13,970) | 4,009 | | Net increase/(decrease) in cash and cash equivalents | 55,835 | (102,170) | | Cash and cash equivalents at beginning of period | 307,094 | 445,293 | | Cash and cash equivalents at end of period | 362,723 | 334,608 | Notes to the Condensed Consolidated Interim Financial Statements The notes to the financial statements detail accounting policies, segment information, revenue composition, and specifics of assets and liabilities, including the Group's three continuing operating segments (catering, financial services, and property holding), revenue primarily from catering, details of discontinued operations, and the composition and aging analysis of trade receivables - The Group's continuing operations are divided into three reportable segments: catering, financial services, and property holding[109][111] - During the reporting period, the Group sold Greater China Cold Chain Logistics Limited, which, along with personal care products and certain financial businesses, was classified as discontinued operations[125][161] - As of June 30, 2023, total trade receivables were HKD 75.0 million, a significant decrease from HKD 136.8 million at the beginning of the year, primarily due to a reduction in receivables from margin clients[60][137] Supplementary Information to Interim Report This section provides supplementary information including details on the share option scheme, directors' and major shareholders' interests, and corporate governance practices Share Option Scheme As of June 30, 2023, the Company had 46,400,000 outstanding share options, with no new grants, exercises, cancellations, or lapses during the reporting period, and Executive Director Mr Chan Hoi Tik holding 18,000,000 share options - As of the end of the reporting period, there were 46,400,000 outstanding share options, with no changes during the period[178] Directors' and Chief Executive's Interests and Major Shareholders' Interests As of June 30, 2023, Executive Director Mr Lau Ka Ho held 18,000,000 ordinary shares (0.79%), Executive Director Mr Chan Hoi Tik held 18,000,000 share options, and major shareholder Golden Sparkle Limited (controlled by Mr Lai Wai Lam) held 551,686,500 shares, representing 24.25% of the issued share capital - Executive Director Mr Lau Ka Ho beneficially owned 18,000,000 ordinary shares, representing 0.79% of the share capital[181] - Major shareholder Mr Lai Wai Lam, through his controlled corporation Golden Sparkle Limited, held 551,686,500 shares, representing 24.25% of the share capital[184] Corporate Governance During the reporting period, the Company complied with most provisions of the Corporate Governance Code, with deviations primarily due to the absence of a Board Chairman, leading to a lack of separation between the Chairman and CEO roles and the Chairman's inability to attend the AGM, which the Board aims to address by identifying a suitable candidate soon - The Company deviated from the Corporate Governance Code provisions regarding the Board Chairman's attendance at the Annual General Meeting (Rule F.2.2) and the separation of Chairman and Chief Executive Officer roles (Rule C.2.1) due to the temporary absence of a Board Chairman[189][190] Audit Committee The Company's Audit Committee, comprising three independent non-executive directors, reviewed the unaudited condensed consolidated results for the period and discussed related financial reporting matters - The Audit Committee has reviewed this interim financial report[195]