Corporate Finance and Advisory Services - For the six months ended June 30, 2021, Da Yu Financial Holdings Limited primarily engaged in corporate finance advisory and asset management services, with a focus on securities broking, underwriting, and placing through Morton Securities Limited[10]. - Corporate finance advisory services included acting as financial adviser for listed issuers on compliance with the Listing Rules and the Takeovers Code[13]. - The Group's corporate finance advisory services also involved providing independent advice required under the Listing Rules and the Takeovers Code[13]. - The company aims to expand its market presence through strategic acquisitions and enhanced service offerings in the financial advisory sector[10]. - The management emphasizes the importance of compliance and regulatory adherence in all advisory services provided[10]. - The Group's full-year 2021 outlook depends on income recognition from corporate finance transactions, the renewal of the investment management agreement with SHK, and the development of the securities business[25]. - The corporate finance services contract value is approximately HK$50,450,000 as of June 30, 2021, up from HK$40,200,000 as of December 31, 2020[192]. Financial Performance - The Group recorded a net loss of approximately HK$2.5 million for the Interim Period, a decrease of approximately HK$18.1 million compared to a net profit of approximately HK$15.6 million in the previous year[16]. - Revenue for the Interim Period was approximately HK$22.1 million, down from approximately HK$34.6 million in 2020, representing a decrease of about 36.4%[16]. - The company reported a loss before income tax of HK$2,487,000, compared to a profit of HK$18,415,000 in the same period of 2020[81]. - Total comprehensive income for the period was a loss of HK$2,453,000, down from a profit of HK$15,633,000 in 2020[81]. - Basic and diluted loss per share attributable to the owners of the company was HK$0.22, compared to earnings of HK$1.37 per share in 2020[81]. - Advisory and related services revenue dropped to HK$11,376,000, down 56.5% from HK$26,163,000 in the previous year[117]. - The Group's reportable segment profit before income tax for the same period was a loss of HK$2,487,000, with corporate finance services reporting a loss of HK$3,552,000[136]. Assets and Liabilities - Total assets as of June 30, 2021, were approximately HK$728.6 million, an increase from approximately HK$514.9 million at the end of 2020[18]. - Total liabilities increased to approximately HK$265.8 million as of June 30, 2021, compared to approximately HK$49.7 million at the end of 2020[18]. - The Group had no bank and other borrowings as of June 30, 2021, maintaining a gearing ratio of 0%[18]. - Current assets increased to HK$346,099,000 from HK$131,394,000, primarily due to an increase in cash and cash equivalents[83]. - The company’s total equity decreased to HK$462,776,000 from HK$465,229,000 as of December 31, 2020[86]. - Contract assets as of June 30, 2021, amounted to HK$22,320,000, an increase from HK$13,969,000 as of December 31, 2020, representing a growth of approximately 59.5%[196]. - Contract liabilities as of June 30, 2021, were HK$86,000, compared to HK$53,000 as of December 31, 2020, indicating a rise of 62.3%[196]. Employee and Operational Metrics - Employee benefit expenses amounted to approximately HK$6.0 million during the Interim Period, up from approximately HK$4.5 million in 2020[16]. - As of June 30, 2021, the Group had 33 staff members, including Directors, compared to 19 staff members as of December 31, 2020[22]. - The monthly salary of Executive Directors Mr. Lam Chi Shing and Ms. Li Ming was increased by approximately 2% effective from January 1, 2021 compared to 2020[63]. Compliance and Governance - The Company has complied with all applicable code provisions of the Corporate Governance Code during the interim period[56]. - The Company has complied with the corporate governance code as per the Listing Rules during the interim period[60]. - The Company has adopted the Model Code for securities transactions by Directors and confirmed compliance by all Directors during the Interim Period[67]. Shareholder Information - As of June 30, 2021, Lee Wa Lun held 227,250,000 shares, representing 19.94% of the total issued shares[32]. - Lam Chi Shing and Li Ming each held 17,800,000 shares, representing 1.56% of the total issued shares[32]. - The number of ordinary shares in issue remained constant at 1,139,330,190 for both 2021 and 2020[178]. Future Outlook and Strategic Initiatives - Future outlook includes a commitment to developing new financial products and services to meet market demands[10]. - The Group is exploring opportunities for further market expansion in the Asia-Pacific region[10]. - The management is focused on improving operational efficiency and leveraging synergies from the acquisition of Morton Securities Limited[10]. Cash Flow and Financial Management - The company reported a net cash generated from operating activities of HK$33,205,000 for the six months ended June 30, 2021, compared to HK$24,329,000 in the same period of 2020, representing an increase of approximately 36.7%[97]. - Cash and cash equivalents at the end of the period increased to HK$113,027,000, up from HK$63,377,000 at the end of June 2020, marking an increase of approximately 78.4%[100]. - The company continues to monitor the timing of recovery for contract assets to ensure effective cash management strategies[196].
大禹金融(01073) - 2021 - 中期财报