Financial Performance - For the six months ended June 30, 2020, the company recorded segment revenue of approximately HK$10,386,000, a decrease of 74.3% from HK$40,413,000 in the same period of 2019[55] - The segment profit for the same period was approximately HK$19,102,000, down 52.0% from HK$39,694,000 in the prior year[55] - For the six months ended June 30, 2020, the Group reported a net fair value loss of approximately HK$371,510,000 from listed securities investments, compared to a net fair value gain of HK$844,412,000 for the same period in 2019[70] - The Group recorded a profit of approximately HK$16,039,000 for the six months ended June 30, 2020, down 58.2% from HK$38,362,000 in the previous year[115] - Basic and diluted earnings per share were HK0.41 cents and HK0.11 cents respectively, compared to HK0.98 cents and HK0.26 cents for the same period in 2019[115] - For the six months ended June 30, 2020, the Group's revenue was approximately HK$20,956,000, a decrease of 71.9% compared to HK$74,551,000 for the same period in 2019[115] Loan and Interest Income - Interest income recorded by Joy Wealth for the six months ended June 30, 2020, was approximately HK$536,000, a significant decrease from HK$39,300,000 in the same period of 2019[45] - The Group recorded interest income of approximately HK$4,029,000 from trust beneficiary rights for the six months ended June 30, 2020, down from HK$9,087,000 for the same period in 2019[85] - The Group has prudently made a provision for impairment of approximately HK$120,000 for receivables due to the financial status of borrowers[60] - The company made impairment provisions for loan and interest receivables of approximately HK$120,000 for the six months ended June 30, 2020, while there were no provisions in the same period of 2019[55] Business Operations - The company ceased the business of loan facilitation services to allocate more resources to its principal businesses[44] - The Group continues to actively negotiate with borrowers to recover outstanding loans and interest receivables[59] - The Group has initiated legal proceedings against borrowers for outstanding loans and interest, with a hearing scheduled for September 14, 2020[61] Investments - The Group's investment in shares of Imperial Pacific amounted to approximately HK$76,490,000, representing about 3.8% of Imperial Pacific's issued share capital as of June 30, 2020[71] - The fair value of the shares of Imperial Pacific held by the Group was approximately HK$200,795,000 as of June 30, 2020, down from HK$558,971,000 as of December 31, 2019, representing 86.6% of the Group's total investment in listed securities[80] - The net fair value loss for the investment in shares of Imperial Pacific during the six months ended June 30, 2020, was approximately HK$358,176,000, compared to a net fair value gain of HK$841,169,000 for the same period in 2019[80] Current Assets and Liabilities - As of June 30, 2020, the Group had net current assets of approximately HK$330,893,000, an increase from HK$299,308,000 as of December 31, 2019[120] - Cash and bank balances were approximately HK$80,885,000, down from HK$154,958,000 as of December 31, 2019[120] - The gearing ratio as of June 30, 2020, was approximately 1.1%, up from 0.7% as of December 31, 2019[130] - The Group's debt-to-equity ratio was approximately 1.1%, an increase from 0.7% as of December 31, 2019[136] Future Outlook - The second half of the year is expected to remain challenging due to the ongoing impact of COVID-19 on the global economy[98] - The Group plans to continue expanding its business varieties to broaden income sources and seek potential investment opportunities[99] Shareholder Information - As of June 30, 2020, the total number of shares issued by the company was 3,870,102,650[195] - Ng Kwok Fai holds a long position of 2,129,143,068 shares, representing approximately 336.97% of the issued share capital[188] - Harmony Delight Holdings Limited is deemed to be interested in 10,912,000,000 shares, which is approximately 281.96% of the issued share capital[188] - Grand Harbour Finance Limited holds a long position of 2,129,143,068 shares, accounting for 55.02% of the issued share capital[188] - Success Seven Limited has a long position of 192,324,703 shares, representing 4.97% of the issued share capital[191] - Jiang Jianhui holds a long position of 2,321,467,771 shares, which is approximately 59.98% of the issued share capital[191] - Allied Summit Inc. has a long position of 580,659,755 shares, accounting for 15.00% of the issued share capital[191] - DeTai Finance Limited holds a long position of 580,659,755 shares, representing 15.00% of the issued share capital[191] - The company has not been notified of any other interests or short positions in the shares and underlying shares as of June 30, 2020[195] - Harmony Delight Holdings Limited holds convertible notes with a principal amount of HK$2,182,400,000, convertible into a maximum of 10,912,000,000 shares[195] Miscellaneous - The company did not declare an interim dividend for the six months ended June 30, 2020, consistent with the previous year[42] - The accumulated amount of loans provided by Joy Wealth Finance Limited since 2011 is approximately HK$2,536 million, unchanged from June 30, 2019[45] - The interest rates for loans during the six months ended June 30, 2020, ranged from 10% to 15%, compared to 9% to 15% in the previous year[45] - The Group had no capital commitments as of June 30, 2020, consistent with the previous year[165] - There were no material contingent liabilities reported as of June 30, 2020[167] - The Group has not implemented any foreign currency hedging policy but continuously monitors foreign exchange exposure due to fluctuations in the Renminbi[162] - The Group's corporate mission includes exploring ways to improve financial performance and diversifying into more profitable businesses[149] - The Group may consider debt and/or equity fundraising plans to meet financing needs arising from business development[151] - There have been no major subsequent events from June 30, 2020, to the date of the report[170] - As of June 30, 2020, none of the Directors or the chief executive had any interests or short positions in the shares of the Company[180] - As of June 30, 2020, the fair value of trust investments was approximately HK$35,095,000, a decrease from HK$59,755,000 as of December 31, 2019[88] - The fair value of trust investments was approximately HK$35,095,000 as of June 30, 2020, down from HK$59,755,000 as of December 31, 2019[88]
中基长寿科学(00767) - 2020 - 中期财报