Financial Performance - For the six months ended June 30, 2024, the company reported total revenue of HKD 145,000, a significant decrease of 99.4% compared to HKD 22,913,000 for the same period in 2023[1]. - The company incurred a pre-tax loss of HKD 16,047,000, compared to a loss of HKD 5,561,000 in the previous year, reflecting a year-over-year increase in losses of 188.5%[2]. - The total expenses for the period were HKD 24,365,000, down 36.5% from HKD 38,351,000 in the prior year[1]. - The basic and diluted loss per share for the period was HKD 0.438, compared to HKD 0.152 in the same period last year, representing an increase of 187.5%[2]. - The company reported a total loss before tax of 16,047,000 HKD, reflecting the financial challenges faced during the period[14]. - The group recorded revenue and other income of approximately HKD 8.3 million for the review period, compared to HKD 32.8 million for the six months ended June 30, 2023[35]. - The group reported a pre-tax loss of approximately HKD 16.0 million for the review period, compared to a loss of HKD 5.6 million for the six months ended June 30, 2023[35]. Financial Position - The company reported a net cash and bank balance of HKD 81,292,000 as of June 30, 2024, a decrease of 86.5% from HKD 603,964,000 at the end of 2023[3]. - Current liabilities net value stood at HKD (53,979,000), indicating a deterioration compared to HKD (37,990,000) at the end of 2023[3]. - The company has a capital deficit of approximately HKD 53,124,000 as of June 30, 2024, compared to HKD 37,077,000 at the end of 2023[4]. - The company’s total assets less current liabilities amounted to HKD (53,124,000) as of June 30, 2024, compared to HKD (37,077,000) at the end of 2023[3]. - The company has received a revolving loan of approximately HKD 5,349,000 from its controlling shareholder to support daily operations[6]. - The company is facing significant uncertainty regarding its ability to continue as a going concern due to its financial position and reliance on continued financial support from its controlling shareholder[6]. Revenue Sources - The total revenue from customer contracts for the six months ended June 30, 2024, was 145,000 HKD, compared to 22,913,000 HKD for the same period in 2023, indicating a significant decline[9]. - The brokerage and margin financing segment generated external customer revenue of 48,000 HKD, while the trading segment reported 97,000 HKD for the same period[14]. - The company’s corporate finance segment reported no revenue for the current period, compared to 3,700,000 HKD in the previous year[10]. - The total income from other sources, including interest income, was 97,000 HKD, down from 17,892,000 HKD in the previous year[10]. - The group’s proprietary trading business generated net revenue of approximately HKD 0.1 million, significantly lower than HKD 17.9 million for the six months ended June 30, 2023[39]. Cost Management - The company’s financial costs amounted to 3,279,000 HKD, contributing to the overall loss reported[14]. - The financial costs for the company amounted to HKD 7,736,000 for the six months ended June 30, 2024, compared to HKD 16,576,000 in the previous year, showing a reduction of approximately 53.3%[15]. - Financial costs for the review period amounted to approximately HKD 6.3 million, a decrease of about HKD 10.3 million or 62.0% compared to HKD 16.6 million for the six months ended June 30, 2023[43]. Employee and Operational Changes - The group employed a total of 30 employees as of June 30, 2024, down from 36 employees as of June 30, 2023[51]. - The group has suspended direct operations in the futures and options business since May 20, 2022, to enhance cost efficiency[36]. - The group is strategically reallocating resources to develop financial advisory services in response to challenges in the corporate finance environment[37]. Governance and Compliance - The company has adopted and complied with the corporate governance code as per the listing rules, ensuring high standards of corporate governance to protect shareholder interests[52]. - During the review period, the company confirmed that all directors adhered to the standards set forth in the securities trading code[53]. - The audit committee has reviewed the accounting principles and practices adopted by the group, discussing internal controls and financial reporting matters[55]. - Ernst & Young resigned as the company's auditor on July 7, 2021, and was replaced by Shinewing (HK) CPA Limited, which must be reappointed at the annual general meeting[56]. Future Outlook - The company plans to continue developing its financial advisory business and explore new opportunities in the bond capital market business initiated in December 2021[44]. - The company aims to improve its business and financial performance through a conditional agreement to purchase approximately 74.1% of its issued shares[44]. - The group will provide monthly updates to shareholders and potential investors regarding the latest developments of the comprehensive offer[45]. - The Hong Kong government has implemented several policies to stimulate economic recovery, which may positively impact the group's operations[34].
西证国际证券(00812) - 2024 - 中期业绩