Revenue and Income - Revenue for the six months ended December 31, 2020, was HKD 187,000, a significant decrease of 99% compared to HKD 19,199,000 in the same period of 2019[5] - Other income increased to HKD 22,946,000, up 285% from HKD 5,960,000 year-over-year[5] - Revenue for the six months ended December 31, 2020, was HKD 22,946,000, compared to HKD 5,960,000 for the same period in 2019, representing a significant increase[31] Losses and Financial Performance - The company reported a loss before tax of HKD 27,874,000, an improvement from a loss of HKD 96,257,000 in the previous year[5] - Total comprehensive loss for the period amounted to HKD 20,316,000, compared to a loss of HKD 132,066,000 in the same period last year[5] - The company reported a loss of HKD 27,874,000 for the six months ended December 31, 2020, compared to a loss of HKD 96,257,000 for the same period in 2019, indicating a significant improvement[12] - The company reported a loss attributable to shareholders of HKD 27,874,000 for the six months ended December 31, 2020, compared to a loss of HKD 96,257,000 in the same period of 2019[38] - The company experienced a net cash outflow from operating activities of HKD 11,708,000 for the six months ended December 31, 2020, compared to a net cash inflow of HKD 9,778,000 in the previous year[12] Assets and Liabilities - Non-current assets totaled HKD 753,959,000 as of December 31, 2020, an increase from HKD 702,736,000 as of June 30, 2020[7] - Current assets decreased to HKD 95,732,000 from HKD 199,570,000 in the previous period[7] - The company's net asset value was HKD 795,401,000, down from HKD 815,717,000 as of June 30, 2020[7] - The total liabilities decreased to HKD 54,290,000 from HKD 86,589,000 as of June 30, 2020[7] - The company’s total assets as of December 31, 2020, were HKD 795,401,000, down from HKD 1,084,706,000 as of December 31, 2019[10] Cash and Cash Equivalents - The company had cash and cash equivalents of HKD 48,479,000, a decrease from HKD 107,372,000 in the previous period[7] - As of December 31, 2020, the company's cash and cash equivalents amounted to HKD 7,554,000, a decrease from HKD 45,440,000 at the end of 2019[15] - As of December 31, 2020, the company held cash deposits of HKD 30,000,000 for potential investments, with a provision for expected credit losses of HKD 7,500,000[80] Investments and Segments - The clean energy segment reported a loss of HKD 11,801,000 for the six months ended December 31, 2020, while the real estate and natural gas segment incurred a loss of HKD 14,439,000[29] - The company reported a loss of HKD 7,327,000 from its micro-lending services segment for the six months ended December 31, 2020[29] - The company plans to exit the micro-lending industry due to declining interest rates and rising operational risks, focusing instead on investments in the bioenergy sector[127] - The company has invested in several bioenergy projects, with notable investments including HKD 150,065,000 in Mengzhou Houyuan Biotechnology Co., which had a fair value of HKD 146,581,000, accounting for 18.43% of the group's net asset value[133] Corporate Governance and Compliance - The board of directors is responsible for maintaining high levels of corporate governance and has complied with the corporate governance code, with one exception regarding the roles of the chairman and CEO being held by the same individual[165] - The audit committee, consisting of three independent non-executive directors, reviewed the accounting principles and practices adopted by the group[169] - The company will continue to monitor and review its corporate governance practices to ensure compliance with the corporate governance code[166] Future Outlook and Strategy - The company plans to continue monitoring cash flow forecasts and may need to secure additional equity or debt financing to support future capital plans[18] - The company aims to maximize shareholder value by gradually exiting the micro-lending sector while increasing its focus on bioenergy investments[127] - The company plans to continue focusing on the bioethanol industry in China to maximize shareholder value[144] - The company has entered into cooperation agreements with local governments and companies to establish joint ventures in the bioethanol sector[144] Market Conditions and Risks - The company continues to assess the impact of the pandemic on its operations and financial performance, indicating a cautious outlook for future periods[24] - The company does not face significant foreign exchange risk as the majority of its transactions are conducted in HKD and RMB[152] Shareholder Information - The company’s major shareholders include Zhang Zuhao with 1,000,000,000 shares (9.11%) and Hongjing Holdings Limited with 1,016,860,000 shares (9.27%) as of December 31, 2020[159] - The total equity held by the beneficial owner Du Lintong amounts to 685,914,830 shares, representing approximately 6.25% of the company’s equity[155]
中国金融国际(00721) - 2021 - 中期财报