Financial Performance - The company reported an interim performance for the six months ended June 30, 2021, with a comparison to the same period in 2020 provided in the report[5]. - Total revenue for the six months ended June 30, 2021, was HKD 127,473,000, a decrease of 1.1% from HKD 128,878,000 in the same period of 2020[45]. - The group's total revenue and other income for the review period was HKD 131.93 million, compared to HKD 134.29 million for the same period in 2020[18]. - The company reported a profit before tax of HKD 5,260,000, compared to a loss of HKD 127,210,000 in the previous year[45]. - Basic and diluted earnings per share were HKD 0.144, recovering from a loss of HKD 3.474 per share in the same period last year[45]. - The company reported a pre-tax profit of 5,260 thousand HKD for the six months ended June 30, 2021, compared to a pre-tax loss of 127,210 thousand HKD for the same period in 2020[93]. Market Conditions - Global confirmed COVID-19 cases exceeded 190 million, with over 4.15 million deaths, indicating a significant increase compared to January 2021[7]. - China's GDP growth rate for the first half of 2021 reached 12.7%, with forecasts of 8.5% and 5.6% growth for 2021 and 2022 respectively[8]. - The U.S. and EU GDPs are expected to grow by 6.6% and 4.8% in 2021, with continued growth projected for 2022 at 4.2% and 4.5% respectively[8]. - Oil prices rose from approximately $50 per barrel at the beginning of 2021 to over $70 per barrel by the end of June 2021 due to increased demand from economic recovery[11]. - International gold prices decreased from about $1,900 per ounce at the beginning of 2021 to approximately $1,800 per ounce by the end of June 2021, influenced by rising economic recovery and interest rate expectations[11]. - Bitcoin's price fluctuated from around $29,000 at the beginning of 2021 to nearly $65,000 during the first half, before falling back to about $35,000 by the end of June 2021 due to regulatory concerns[11]. Regulatory Environment - The company is monitoring geopolitical tensions, particularly between the U.S. and China, which may impact market conditions[10]. - The tightening of regulations in various sectors in China may slow the growth of leading companies in technology, education, and real estate[10]. Securities Market Overview - The average daily trading volume in the Hong Kong securities market for the first half of 2021 was HKD 188.2 billion, a year-on-year increase of 60.1%[15]. - The total market capitalization of the securities market increased by 39.4% year-on-year to HKD 52.8 trillion, up 11.2% from December 2020[15]. - The number of newly listed companies in the first half of 2021 was 46, a decrease of 28.1% year-on-year, while the IPO fundraising amount reached HKD 210.4 billion, an increase of nearly 130%[16]. Revenue Breakdown - The brokerage and margin financing business recorded a revenue of HKD 7.65 million, a decrease of approximately 55% from HKD 16.88 million in the previous year[19]. - The corporate finance business generated revenue of HKD 2.94 million, down about 69% from HKD 9.37 million in the same period last year[24]. - The asset management business recorded revenue of HKD 3,000, compared to no revenue in the same period of 2020[25]. - The group's trading business recorded revenue of HKD 116,890,000, an increase from HKD 102,640,000 in the previous six months[27]. - Other income and gains decreased to HKD 4,460,000 from HKD 5,420,000 due to a decline in bank interest income[28]. Expenses and Costs - Total expenses decreased significantly to HKD 126,670,000 from HKD 261,504,000, representing a reduction of approximately 51.6%[45]. - Employee costs rose to HKD 40,890,000 from HKD 32,980,000, attributed to performance bonuses linked to departmental business performance[29]. - Service fees and commission expenses decreased to HKD 6,440,000 from HKD 6,860,000, primarily due to reduced transaction volumes in brokerage and corporate finance[31]. - Financial costs decreased by approximately 5% to HKD 55,280,000 from HKD 58,010,000, due to lower interest payments on bonds[32]. Asset Management and Investments - The group's investment portfolio SP6 achieved a cumulative return rate of 27% as of June 30, 2021, outperforming the market[26]. - The group plans to establish two fixed-income focused funds in the second half of the year to expand its asset management scale[26]. - The group aims to enhance cross-border cooperation with its parent company to provide advisory services for quality domestic enterprises entering the Hong Kong capital market[24]. - The group plans to enhance asset management business positioning and expand product lines, including new fixed-income asset management products[33]. Financial Position - As of June 30, 2021, the group's cash and bank balances totaled HKD 395,800,000, up from HKD 382,200,000 at the end of 2020[35]. - The current ratio improved significantly to 10.2 times from 1.2 times, and the capital debt ratio decreased to 476.3% from 546.3%[35]. - The company’s total assets as of June 30, 2021, were reported at 1,208,531 thousand HKD, down from 1,391,161 thousand HKD at the end of 2020[97]. - Total assets less current liabilities amounted to HKD 1,675,904,000, compared to HKD 302,723,000 in the previous year, showing a significant increase[47]. - The company has no income tax expense for the period, maintaining a tax rate of 0%[45]. Employee and Management Changes - The group employed a total of 70 employees as of June 30, 2021, down from 84 employees a year earlier[42]. - Mr. Pu Rui resigned as Executive Director and CEO effective March 29, 2021[185]. - The company appointed Mr. Wu Jian as the Party Secretary and Chairman effective August 23, 2021, and September 6, 2021, respectively[184]. Corporate Governance - The company has adhered to the corporate governance code as outlined in Appendix 14 of the Listing Rules during the review period[186]. - The company has adopted the standard code for securities trading by directors as per Appendix 10 of the Listing Rules, confirming compliance by all directors[187]. - The audit committee reviewed the accounting principles and practices adopted by the group, discussing audit, internal control, and financial reporting matters[190].
西证国际证券(00812) - 2021 - 中期财报