中国金融租赁(02312) - 2024 - 中期业绩

Financial Summary Consolidated Performance For the six months ended June 30, 2024, the Group reported stable revenue of HKD 0.36 million, but a net loss of HKD 7.45 million from financial assets led to a 140% increase in the period's loss to HKD 8.68 million, while net assets grew to HKD 71.0 million Consolidated Statement of Profit or Loss Highlights | Indicator | H1 2024 | H1 2023 | | :--- | :--- | :--- | | Revenue | 0.36 million HKD | 0.353 million HKD | | Net Loss from Financial Assets at Fair Value Through Profit or Loss | (7.447) million HKD | (2.376) million HKD | | Loss for the Period Attributable to Owners of the Company | (8.679) million HKD | (3.618) million HKD | | Basic Loss Per Share | 2.67 HK cents | 2.01 HK cents | Consolidated Statement of Financial Position Highlights | Indicator | June 30, 2024 | December 31, 2023 | | :--- | :--- | :--- | | Total Assets | 71.491 million HKD | 60.636 million HKD | | Net Assets | 70.995 million HKD | 60.170 million HKD | | Net Asset Value Per Share | 20.47 HK cents | 33.36 HK cents | Dividends The Board resolved not to declare an interim dividend for the six months ended June 30, 2024, consistent with the prior period's policy - The Board resolved not to declare an interim dividend for the six months ended June 30, 2024[17] Management Discussion and Analysis Market Environment and Outlook Management noted the volatile Hong Kong stock market in H1 2024, with the Hang Seng Index rebounding in mid-April due to policy support before slowing, and anticipates H2 performance will depend on mainland China's economy, US interest rate policy, and the US presidential election, while the Group maintains a strong, debt-free financial position to pursue investment opportunities - The Hong Kong stock market experienced significant volatility in the first half of 2024, with the Hang Seng Index rebounding sharply in mid-April following guidance from China's State Council, though the momentum was not sustained[19] - Management identifies key factors for second-half market performance as mainland China's economic performance, the US Federal Reserve's interest rate policy, and the outcome of the US presidential election[19][20] - The Group maintains a very robust financial position with no debt and will continue to closely monitor market changes to explore investment opportunities[20] Operational and Financial Review The Group recorded a loss of approximately HKD 8.68 million for the period, primarily due to a net loss from financial assets at fair value through profit or loss, with its core business remaining investment in listed and unlisted securities for capital appreciation, and the total fair value of the investment portfolio increasing to approximately HKD 68.34 million at period-end - For the six months ended June 30, 2024, the Group recorded a loss of approximately HKD 8.68 million (2023: loss of HKD 3.62 million), primarily due to fair value losses on financial assets[21] - As of June 30, 2024, the total fair value of the Group's investment portfolio was approximately HKD 68.34 million, an increase from HKD 58.59 million at the end of 2023[22] - During the period, realized gains from financial assets amounted to approximately HKD 1.42 million, while unrealized losses were approximately HKD 8.87 million[22] Investment Portfolio Analysis As of June 30, 2024, the Group's investment portfolio, entirely comprising listed securities with a total fair value of HKD 68.34 million, recorded a net fair value loss of HKD 7.45 million for the period, with key holdings like government green bonds, China Energy Storage, and China Mobile reflecting a diversified strategy, and management provided detailed insights into their fundamentals Overview of Major Investments Major Investment Holdings as of June 30, 2024 | Investment (Stock Code) | Fair Value (thousand HKD) | Percentage of Investment Portfolio | | :--- | :--- | :--- | | Government Green Bonds (4252) | 9,910 | 13.96% | | China Energy Storage (1143) | 6,570 | 9.25% | | Zhongtian Construction (2433) | 5,124 | 7.22% | | Kerry Logistics Network (2130) | 4,949 | 6.97% | | Meta Education (1087) | 3,932 | 5.54% | | China Mobile (0941) | 3,850 | 5.42% | | Other Listed Investments | 21,488 | 30.26% | | Total | 68,338 | 96.24% | - As of June 30, 2024, the Group held no unlisted investments[24] Analysis of Key Holdings - Government Green Bonds (4252): The Investment Committee considers them an effective diversification tool with good liquidity and competitive interest returns[25] - China Energy Storage (1143): The company turned profitable in FY2023, and the Investment Committee is optimistic about its profitability in green low-carbon development and energy storage businesses[26] - Zhongtian Construction (2433): Despite a challenging real estate market, its core business revenue and gross profit margin remained stable, with prudent financial management[27] - China Mobile (0941): The company achieved record performance, with a high dividend payout ratio expected to further increase to 75%, making it a core holding in the investment portfolio[31] - China Hanking (3788): The company returned to profitability in 2023, with promising prospects for its gold mining business, aiming to become a gold producer within three years[35] Liquidity and Capital Structure At period-end, the Group held bank and cash balances of approximately HKD 2.56 million with no interest-bearing liabilities, resulting in a zero debt-to-asset ratio; regarding capital structure, the company completed a rights issue in February 2024, issuing approximately 173 million shares and raising net proceeds of approximately HKD 19.5 million, primarily for investments and general working capital, effectively strengthening its capital base - As of June 30, 2024, the Group's bank and cash balances were approximately HKD 2.56 million, with no interest-bearing liabilities or borrowings[38] - The company completed a rights issue on February 20, 2024, raising net proceeds of approximately HKD 19.5 million[39] - Approximately HKD 18.2 million (93.33%) of the rights issue proceeds were used for investments, and approximately HKD 1.3 million (6.67%) for general working capital[40] Corporate Governance and Other Information Substantial Shareholders As per public disclosure, as of June 30, 2024, Mr. Lam Shu Song and his spouse Ms. Choi Hing Lin collectively held 27.59% of the company's shares, making them the largest shareholders, while Capital Strategic Investment Limited (Stock Code: 2324) indirectly held 7.37% through its wholly-owned subsidiary Substantial Shareholders as of June 30, 2024 | Shareholder Name | Nature of Interest | Number of Shares Held | Percentage of Shareholding | | :--- | :--- | :--- | :--- | | Mr. Lam Shu Song | Beneficial Owner | 95,706,441 | 27.59% | | Ms. Choi Hing Lin | Interest of Spouse | 95,706,441 | 27.59% | | Capital Strategic Investment Limited | Interest in Controlled Corporation | 25,556,574 | 7.37% | Corporate Governance Practices The company has adopted and complied with the Corporate Governance Code set out in the Listing Rules during the reporting period, and its Audit Committee, comprising three independent non-executive directors, has reviewed the unaudited interim financial statements for the period - The Board believes that the company has complied with the code provisions of the Corporate Governance Code for the six months ended June 30, 2024[52] - The Audit Committee, composed of three independent non-executive directors, has reviewed the Group's unaudited condensed interim financial statements[53] Post-Reporting Period Events From the period-end (June 30, 2024) to the approval date of the interim results, the Group's financial assets generated approximately HKD 2.53 million in realized gains and approximately HKD 6.66 million in unrealized losses - Between June 30, 2024, and the approval date of the interim results, the Group's financial assets generated realized gains of approximately HKD 2.534 million and unrealized losses of approximately HKD 6.655 million[41]