Financial Performance - The company reported a consolidated profit attributable to owners of approximately HKD 11,039,000 for the six months ended June 30, 2021, compared to a loss of HKD 6,021,000 for the same period in 2020[5]. - Revenue for the six-month period was HKD 50,516,000, significantly up from HKD 8,695,000 for the same period in 2020[7]. - The company reported a net loss of HKD 5,908,000 for the six months ended June 30, 2021, compared to a net profit of HKD 11,039,000 for the same period in 2020[42]. - The company reported a significant other comprehensive loss of HKD 50,304,000 for the period, primarily due to revaluation losses on leasehold land and buildings[42]. - The company experienced a total comprehensive loss of HKD 39,265 thousand for the six months ended June 30, 2021, compared to a total comprehensive income of HKD 560 thousand for the same period in 2020[44]. - Total tax expenses for the six months ended June 30, 2021, amounted to HKD 5,908,000, significantly higher than HKD 984,000 for the same period in 2020[76]. Revenue Sources - For the six months ended June 30, 2021, total revenue was HKD 50,516,000, with property development and investment contributing HKD 3,616,000 and financial lending contributing HKD 46,900,000[58]. - Interest income from financial lending operations increased to approximately HKD 46.9 million, up by about HKD 42.4 million compared to HKD 4.5 million for the same period in 2020[8]. - Revenue from property sales in China for the six months ended June 30, 2021, was HKD 1,765, compared to HKD 2,422 for the six months ended September 30, 2020[64]. User Growth and Engagement - The number of registered users for the "X Wallet" mobile application increased from 43,489 in 2020 to 54,090 by June 30, 2021[10]. - The number of existing customers for "X Wallet" rose from 4,384 at the end of 2020 to 6,540 by June 30, 2021, contributing to improved performance in unsecured loans[10]. - The group anticipates growth in its fintech lending business, driven by increasing demand for unsecured loan services through its mobile app "X Wallet" which offers instant approval and 24/7 fund transfers[15]. Acquisitions and Investments - The acquisition of Zero Finance Group was completed on October 30, 2020, for a total consideration of HKD 404,109,000, with part of the payment made in shares and the remainder in cash[17][18]. - The acquisition is expected to create synergies between the group's existing mortgage lending business and Zero Finance's secured and unsecured lending operations[21]. - The acquisition of "X Wallet" is expected to provide potential mortgage loan customers and reduce reliance on agent referrals, thereby lowering loan business costs[22]. - The company is actively seeking investment opportunities in the Chinese property market, particularly in Guangdong Province, despite facing intense competition[16]. Financial Position - Total assets as of June 30, 2021, were HKD 1,330,116 thousand, a decrease of 2.8% from HKD 1,368,929 thousand as of December 31, 2020[43]. - Total equity amounted to HKD 1,121,156 thousand, down from HKD 1,160,421 thousand, reflecting a decline of 3.4%[44]. - The company reported a net cash outflow from operating activities of HKD 38,405 thousand for the six months ended June 30, 2021, compared to a net outflow of HKD 987 thousand for the same period in 2020[45]. - The cash and cash equivalents at the end of the period were HKD 219,187 thousand, an increase from HKD 192,189 thousand as of September 30, 2020[45]. Operational Insights - The group has a strong cash position with no significant capital expenditure commitments, relying on cash generated from operations and reserves[12]. - The group employs 54 staff members, with compensation based on performance, qualifications, and market statistics[14]. - The company has not purchased, sold, or redeemed any of its listed securities during the six months ended June 30, 2021[33]. - The company has complied with the corporate governance code during the reporting period[34]. Market Conditions - The COVID-19 pandemic has impacted the global economy, but with vaccination rollouts, the economy is expected to gradually recover in the second half of the year[15]. - There is a growing demand for convenient and efficient lending services in Hong Kong, and "X Wallet" is well-positioned to meet this demand with its automated services[24]. - The company acknowledges the competitive challenges in the market but remains optimistic about the prospects of "X Wallet" personal loan services[24]. Shareholder Information - As of June 30, 2021, Lee & Leung (B.V.I.) Limited holds 1,252,752,780 shares, representing 46.96% of the company's issued share capital[29]. - Earth Axis Investment Limited holds 710,000,000 shares, accounting for 26.62% of the company's issued share capital[29]. - The company reported a total of 2,667,643,000 weighted average ordinary shares outstanding for the six months ended June 30, 2021, compared to 1,957,643,000 in the same period of 2020, reflecting an increase of 36%[77]. Expenses and Liabilities - Employee benefits expenses increased to HKD 7,008,000 for the six months ended June 30, 2021, compared to HKD 2,431,000 for the same period in 2020, representing a growth of 187%[66]. - Interest expenses for the financial lending segment were HKD 3,940 for the six months ended June 30, 2021, compared to HKD 8 for the same period in the previous year[61]. - The company’s total liabilities were HKD 208,960 thousand, a slight increase from HKD 208,508 thousand[43].
TERMBRAY IND(00093) - 2021 - 中期财报