Financial Performance - The net loss for the period was approximately HK$34 million, compared to a net loss of approximately HK$50 million for the same interim period last year, primarily due to net changes in fair value of listed equity investments of approximately HK$29 million[177]. - The CGI business made no profit contribution to the Group during the Period under Review, and the Company invested approximately HK$8.2 million in two movies, which also did not yield any profit[18]. - The money lending business contributed a profit of approximately HK$0.4 million to the Group during the period under review[173]. - John & Wong Securities Company Limited did not make any profit contribution to the Group for the period under review[172]. Market Conditions and Business Strategy - The Company is adopting a cautious stance in its proprietary trading business due to the depressed local equity market influenced by international trade disputes and the uncertain political situation in Hong Kong[20]. - The Group adopted a conservative approach towards its money lending business due to the current uncertain economic environment[173]. - The Company plans to continue its expansion into integrated financial services, including securities brokerage, corporate finance advisory, and asset management, albeit at a cautious pace due to poor economic conditions[188]. - The Group is preparing to commence expansion plans for its brokerage business upon market recovery[172]. Financial Position - As of June 30, 2019, the aggregate market value of listed debt securities and equity securities was approximately HK$430 million, with a net realized gain of approximately HK$26 million and an unrealized loss of approximately HK$56 million during the Period under Review[20]. - As of June 30, 2019, the Group's bank balances amounted to approximately HK$130 million, up from approximately HK$104 million as of December 31, 2018[177]. - The current ratio as of June 30, 2019, was approximately 42 times, compared to approximately 14 times as of December 31, 2018[177]. - The Group had no bank or other borrowing as of June 30, 2019, with a gearing ratio of zero, down from 6.5% as of December 31, 2018[177]. - Held-for-trading investments pledged to financial institutions amounted to approximately HK$423 million as of June 30, 2019, down from HK$549 million as of December 31, 2018[180][184]. Employee and Staff Costs - Total staff costs, including Directors' emoluments, increased by approximately 20% from approximately HK$8.6 million to approximately HK$10.4 million for the period under review[177]. - As of June 30, 2019, the Group employed 27 employees excluding 8 Directors, consistent with the previous year[197]. - The total staff cost for Directors and staff during the review period was approximately HK$10.4 million, an increase from approximately HK$8.6 million in 2018, representing a growth of about 21%[197][200]. - The Group's emolument policy is based on employee qualifications, experience, work performance, and market benchmarks, with regular reviews to ensure compliance with labor laws[197][200]. - Incentives in the form of bonuses and share options may be offered to eligible employees based on individual performance and the Group's business results[197][200]. Acquisition Plans - The Company has conditionally agreed to acquire Les Ambassadeurs Club Limited for a consideration of £122 million (approximately HK$1,206.1 million), subject to shareholder approval[190][193]. - The acquisition of Les Ambassadeurs Club is considered a very substantial acquisition and will be treated as a reverse takeover, requiring compliance with new listing application rules[192]. - Completion of the acquisition is conditional upon the satisfaction of various conditions in the Sale and Purchase Agreement, with potential completion expected towards the end of 2019 or the first quarter of 2020[196]. - The completion of potential acquisition matters is contingent upon meeting various conditions, with no guarantee of completion by the end of 2019 or the first quarter of 2020[199].
元汇集团(00585) - 2019 - 中期财报