Financial Performance - Revenue for the six months ended June 30, 2024, was HKD 37,550,000, an increase of 7.1% compared to HKD 35,073,000 for the same period in 2023[2] - Profit for the period was HKD 14,938,000, representing a 40.5% increase from HKD 10,669,000 in the previous year[4] - Basic and diluted earnings per share increased to HKD 0.84 from HKD 0.55, reflecting a growth of 52.7%[3] - Revenue from customer contracts for the six months ended June 30, 2024, was HKD 36,023,000, an increase of 6.9% compared to HKD 33,830,000 for the same period in 2023[11] - Rental income from investment properties for the six months ended June 30, 2024, was HKD 8,183,000, up 27.5% from HKD 6,420,000 in the previous year[11] - The net profit after tax for the six months ended June 30, 2024, was HKD 14,938,000, representing a 40.5% increase from HKD 10,669,000 for the same period in 2023[12] - The company reported a financial income of HKD 1,271,000 from bank deposits for the six months ended June 30, 2024, compared to HKD 930,000 in the previous year, marking a 36.7% increase[19] - The company reported a net financial income of HKD 1,146,000 for the six months ended June 30, 2024, compared to HKD 889,000 in the previous year[19] - The company reported a foreign exchange loss of HKD 34,498,000 for the period, compared to a loss of HKD 52,175,000 in the previous year[4] - The total comprehensive income for the period was HKD (19,560,000), an improvement from HKD (41,506,000) in the same period last year[4] Assets and Liabilities - Total assets as of June 30, 2024, were HKD 923,725,000, a slight decrease from HKD 943,281,000 at the end of 2023[5] - Net current assets decreased to HKD 604,981,000 from HKD 618,809,000, indicating a decline of 2.2%[5] - The company’s cash and bank balances decreased to HKD 144,088,000 from HKD 159,548,000, a decline of 9.7%[5] - Trade receivables amounted to approximately HKD 4.5 million as of June 30, 2024, down from HKD 11.2 million as of December 31, 2023[26] - As of June 30, 2024, the total receivables amounted to approximately HKD 501.2 million, an increase from approximately HKD 495.5 million in 2023[35] - The group holds approximately HKD 144.1 million in cash and cash equivalents as of June 30, 2024, down from HKD 159.5 million as of December 31, 2023, indicating a decrease of about 3.4%[49] - The current ratio as of June 30, 2024, is approximately 10.4, compared to 11.4 as of December 31, 2023, reflecting a decline in liquidity[49] - The group has no capital debt as of June 30, 2024, maintaining a debt-free status similar to December 31, 2023[49] Business Segments - The company identified four reportable segments, including investment properties, flower and plant sales, and bad asset management, consistent with the previous year[13] - The East Kui business segment contributed revenue of approximately HKD 27.8 million, an increase of about 1.46% from HKD 27.4 million in 2023[29] - The East Kui business segment recorded a post-tax profit of approximately HKD 22 million, up from HKD 20.1 million in 2023, attributed to increased income from factoring and reduced operating expenses[29] - Dongdongmo's investment property segment contributed approximately HKD 8.2 million in revenue for the six months ended June 30, 2024, compared to HKD 6.4 million in 2023, reflecting a growth in income from investment properties[37] - The segment recorded a post-tax profit of approximately HKD 3.7 million for the six months ended June 30, 2024, up from HKD 3.4 million in 2023, attributed to increased income from investment properties[37] - The sales of flowers and plants segment generated approximately HKD 1.5 million in revenue for the six months ended June 30, 2024, compared to HKD 1.2 million in 2023, indicating a growth despite market challenges[38] - The post-tax profit for the sales of flowers and plants segment was approximately HKD 17,000 for the six months ended June 30, 2024, down from HKD 100,000 in 2023, primarily due to increased costs[38] Investments and Financing - The company continues to focus on expanding its investment properties and financing services in China and Hong Kong[7] - As of June 30, 2024, the company provided loans totaling approximately HKD 501.8 million, compared to HKD 496.1 million as of December 31, 2023[11] - The company has established loan financing and factoring agreements with 9 borrowers as of June 30, 2024, consistent with the number as of December 31, 2023[29] - The company entered into a loan financing agreement with Chongqing Longyate Metal Materials Co., Ltd. for a total consideration of approximately HKD 2.1 million, with an annual interest rate of 9.80%[30] - The company has provided financing of approximately HKD 20.4 million under a factoring agreement with Wuhan Hezhong Chuangzhan Trading Co., Ltd., with an annual interest rate of 12.00%[31] - Shanghai Dongrui entered into a factoring agreement with Chongqing Maotong, providing financing of approximately RMB 8.5 million (about HKD 9.1 million) at an annual interest rate of 11.00%[32] - On October 11, 2023, Shanghai Dongrui signed a factoring agreement with Chongqing Chaofeng, providing financing of approximately RMB 53 million (about HKD 56.9 million) at an annual interest rate of 10.00%[32] - Shanghai Dongrui entered into a factoring agreement with Chongqing Baicui, providing financing of approximately RMB 67 million (about HKD 72 million) at an annual interest rate of 11.00%[34] - On November 2, 2023, Shanghai Dongrui signed a refinancing agreement with Panyun, providing financing of approximately RMB 49.6 million (about HKD 53.2 million) at an annual interest rate of 9.41%[34] - The company reported a loss provision of approximately HKD 660,000 against total receivables[35] - Shanghai Dongrui's factoring agreements with various companies included collateral of receivables totaling approximately RMB 44.4 million (about HKD 47.7 million) from Chongqing Pumei[33] Future Outlook and Strategy - The company anticipates stable growth in the Chinese consumer market despite challenges in the real estate sector and low consumer confidence[35] - The company anticipates continued positive development momentum in the second half of 2024, supported by government policies aimed at stimulating demand and improving economic expectations[40] - The company plans to focus resources on factoring and re-factoring businesses, enhancing internal management and risk control capabilities[41] - The company is actively exploring business innovation and expanding new market development opportunities while adhering to compliance and risk management standards[42] - The company has identified the need for a suitable team to optimize business models for managing bad assets after selling its stake in Anxin Wanbang Asset Management[39] - The company is closely monitoring domestic and international economic trends to prudently deploy business strategies and ensure sustainable long-term development[40] Corporate Governance - The company did not declare any dividends for the six months ended June 30, 2024, and 2023[22] - The company does not recommend declaring an interim dividend for the six months ending June 30, 2024 (2023: none) [50] - No shares were purchased, sold, or redeemed by the company or its subsidiaries during the six months ending June 30, 2024 [50] - The audit committee, consisting of three independent non-executive directors, reviewed the interim financial information for the six months ending June 30, 2024, and confirmed compliance with applicable accounting standards and regulations [51] - The interim results announcement for the six months ending June 30, 2024, has been published on the Hong Kong Stock Exchange and the company's website [51] - The company has adopted the standard code of conduct for directors' securities transactions and confirmed compliance by all directors for the six months ending June 30, 2024 [50] Staffing and Operations - The group employs 29 full-time staff as of June 30, 2024, consistent with the number as of December 31, 2023[48] - The group has signed a nearly 10-year lease agreement for its office in Chengdu, which is expected to provide a stable and sustainable income source[45] - The group aims to become a major supplier of landscaping flowers and plants in China, despite ongoing pressures in the real estate market[46] - The Chongqing government has introduced multiple policies to support the real estate market, which is expected to gradually stabilize and benefit the group's flower and plant sales business[46] - The group has not utilized any derivative instruments to hedge interest rate risks as of June 30, 2024[49] - The group has not pledged any assets as of June 30, 2024, maintaining a clean asset status[49]
东银国际控股(00668) - 2024 - 中期业绩