Revenue and Income - Revenue for the six months ended June 30, 2021, was HK$88,000, compared to HK$54,000 for the same period in 2020, representing a 63% increase[5] - Dividend income increased to HK$88,000 for the six months ended 30 June 2021, compared to HK$54,000 in the same period of 2020, representing a growth of 63%[27] Losses and Expenses - The net loss on financial assets at fair value through profit or loss was HK$27,099,000, significantly higher than the loss of HK$6,127,000 in the previous year[5] - Loss from operations for the period was HK$29,364,000, compared to HK$7,407,000 in the prior year, indicating a substantial increase in operational losses[5] - Loss before income tax was HK$29,589,000, up from HK$8,196,000 year-over-year[6] - The total comprehensive income for the six months ended June 30, 2021, was a loss of HK$29,589,000, compared to a loss of HK$19,874,000 for the previous year[11] - The company reported a basic and diluted loss per share of HK$1.46, compared to HK$0.43 for the same period in 2020[6] - The accumulated losses increased to HK$296,499,000 as of June 30, 2021, from HK$266,910,000 at the end of 2020[11] - The remuneration for key management personnel during the six months ended June 30, 2021, was HK$953,000, a decrease of approximately 24% from HK$1,260,000 for the same period in 2020[86] Assets and Equity - Current assets decreased to HK$73,505,000 from HK$87,636,000, a decline of 16%[7] - Net current assets were HK$68,251,000, down from HK$80,169,000, reflecting a decrease of 15%[8] - Total equity decreased to HK$68,530,000 from HK$80,477,000, indicating a reduction of 15%[9] - As of June 30, 2021, total equity amounted to HK$68,530,000, a decrease from HK$80,477,000 at the end of 2020, reflecting a change in equity of HK$11,947,000 for the period[11] - Cash and cash equivalents at the end of the period were HK$14,794,000, a substantial increase from HK$389,000 at the end of June 2020[12] - The total net assets as of June 30, 2021, are approximately HK$68,530,000, compared to HK$80,477,000 as of December 31, 2020, indicating a decline of approximately 15%[81] Cash Flow - The net decrease in cash from operating activities was HK$1,536,000, significantly improved from a net decrease of HK$34,695,000 in the same period of 2020[12] - The net increase in cash from financing activities was HK$16,216,000, compared to HK$36,216,000 in the prior year, indicating a reduction in financing inflow[12] - The company reported a net decrease in cash from investing activities of HK$6,000, compared to HK$2,255,000 in the same period last year[12] Financial Instruments and Investments - Gross proceeds from trading of listed equity securities decreased significantly to approximately HK$3,195,000 in the first half of 2021, down from HK$37,480,000 in 2020, a decline of 91.5%[27] - Realised losses on financial assets at fair value through profit or loss were approximately HK$2,328,000 for the six months ended June 30, 2021, compared to realised gains of HK$19,525,000 in 2020[27] - Unrealised losses on financial assets at fair value through profit or loss amounted to HK$24,771,000 in the first half of 2021, compared to unrealised gains of HK$13,398,000 in 2020[27] - The total fair value of the Group's investments as of June 30, 2021, was approximately HK$48,955,000, down from HK$74,514,000 as of December 31, 2020[112] - The total cost of listed investments held as at June 30, 2021 was HK$84,038,000[120] Share Capital and Financing - The total issued share capital increased to 2,312,649,882 shares as of June 30, 2021, from 1,927,649,882 shares as of December 31, 2020, reflecting an increase of approximately 20%[74] - The company completed a share placement on May 14, 2021, issuing 385,000,000 shares at a net price of approximately HK$0.046 per share, raising net proceeds of about HK$17,600,000[78] - The intended use of proceeds from the share placements was for general working capital and potential investments[194] - A share consolidation proposal was announced on July 12, 2021, to consolidate every ten existing shares into one consolidated share, resulting in 231,264,988 consolidated shares post-consolidation[198] Market Conditions and Outlook - The market outlook remains cautious due to the severity of the Delta variant of COVID-19 and increasing tensions in Sino-U.S. relations[107] - The Hang Seng Index dropped over approximately 2,300 points or 7.4% from its peak of over 31,100 points in February 2021 to around 28,800 points in June 2021[106] - The Hang Seng TECH Index fell by approximately 2,850 points or 25.9% from over 11,000 points in February 2021 to around 8,150 points at the end of June 2021[106] Tax and Regulatory Matters - As of 30 June 2021, the Group had unused tax losses of approximately HK$306,945,000 available for offset against future profits[39] - The Group did not recognize any deferred tax assets related to tax losses due to the unpredictability of future profit streams[39] - The company has adopted all new and revised Hong Kong Financial Reporting Standards effective from January 1, 2021, with no material impact on the financial statements[22]
中国金融租赁(02312) - 2021 - 中期财报