阿仕特朗金融(08333) - 2024 - 中期财报

Performance Highlights The Group's performance for the six months ended June 30, 2024, shows a decrease in revenue and a significant expansion of loss attributable to owners Performance Summary for the Six Months Ended June 30, 2024 | Metric | Six Months Ended June 30, 2024 | Six Months Ended June 30, 2023 | | :--- | :--- | :--- | | Revenue | Approx. 6,094,000 HKD | Approx. 7,993,000 HKD | | Loss Attributable to Owners of the Company | Approx. 19,558,000 HKD | Approx. 9,906,000 HKD | | Basic Loss Per Share | Approx. 20.37 HK cents | Approx. 10.32 HK cents | | Dividend | Not Proposed | Nil | Condensed Consolidated Financial Statements This section presents the Group's condensed consolidated financial statements, including the statement of profit or loss, financial position, changes in equity, and cash flows Condensed Consolidated Statement of Profit or Loss and Other Comprehensive Income For the six months ended June 30, 2024, revenue decreased to HKD 6.094 million, and loss attributable to owners expanded to HKD 19.558 million, driven by increased fair value losses on financial assets and higher administrative expenses Key Profit or Loss Statement Data (Six Months Ended June 30) | Item (HKD thousands) | 2024 (Unaudited) | 2023 (Unaudited) | Year-on-Year Change | | :--- | :--- | :--- | :--- | | Revenue | 6,094 | 7,993 | -23.8% | | Fair Value Changes of Financial Assets at FVTPL | (9,855) | (3,193) | +208.6% (Loss Widened) | | Administrative and Other Operating Expenses | (16,505) | (15,435) | +6.9% | | Loss Before Tax | (19,558) | (9,906) | +97.4% (Loss Widened) | | Loss for the Period Attributable to Owners of the Company | (19,558) | (9,906) | +97.4% (Loss Widened) | | Basic Loss Per Share (HK cents) | (20.37) | (10.32) | +97.4% (Loss Widened) | Condensed Consolidated Statement of Financial Position As of June 30, 2024, total assets decreased to HKD 154.025 million from HKD 191.062 million, with net assets declining to HKD 120.264 million, reflecting the period's operating loss Key Financial Position Data | Item (HKD thousands) | As of June 30, 2024 (Unaudited) | As of December 31, 2023 (Audited) | Change | | :--- | :--- | :--- | :--- | | Total Assets | 154,025 | 191,062 | -19.4% | | Total Liabilities | 33,761 | 51,240 | -34.1% | | Net Assets | 120,264 | 139,822 | -14.0% | | Total Equity | 120,264 | 139,822 | -14.0% | Condensed Consolidated Statement of Changes in Equity As of June 30, 2024, total equity decreased from HKD 140 million to HKD 120 million, solely due to the HKD 19.558 million comprehensive expense for the period - The decrease in total equity is entirely attributable to the HKD 19.558 million loss for the period, with opening equity at HKD 139,822 thousands and closing equity at HKD 120,264 thousands[5] Condensed Consolidated Statement of Cash Flows In H1 2024, net cash and cash equivalents decreased by HKD 60 thousand, a significant improvement from the prior period, driven by reduced cash used in operations and a shift to net cash inflow from investing activities Key Cash Flow Statement Data (Six Months Ended June 30) | Item (HKD thousands) | 2024 (Unaudited) | 2023 (Unaudited) | | :--- | :--- | :--- | | Net Cash Used in Operating Activities | (633) | (6,401) | | Net Cash From/(Used in) Investing Activities | 1,489 | (206) | | Net Cash (Used in)/From Financing Activities | (916) | 970 | | Net Decrease in Cash and Cash Equivalents | (60) | (5,637) | | Cash and Cash Equivalents at End of Period | 12,338 | 16,543 | Notes to the Financial Statements This section provides detailed notes to the condensed consolidated financial statements, covering revenue, financial assets, and related party transactions Revenue and Segment Information The Group operates a single financial services segment, with total revenue decreasing 23.8% to HKD 6.094 million in H1 2024, as declines in key commissions were partially offset by growth in advisory and financing income - The Group operates a single operating segment, providing brokerage, placing and underwriting, corporate finance advisory, financing, and asset management services[10] Revenue Breakdown by Service Type (Six Months Ended June 30) | Service Type (HKD thousands) | 2024 | 2023 | Year-on-Year Change | | :--- | :--- | :--- | :--- | | Brokerage Service Commissions | 621 | 906 | -31.5% | | Placing and Underwriting Commissions | 728 | 2,688 | -72.9% | | Corporate Finance Advisory Service Fees | 1,450 | 1,060 | +36.8% | | Asset Management Service Fees | 221 | 543 | -59.3% | | Securities and IPO Financing Interest Income | 3,074 | 2,796 | +9.9% | | Total Revenue | 6,094 | 7,993 | -23.8% | Financial Assets at Fair Value Through Profit or Loss As of June 30, 2024, financial assets at FVTPL totaled HKD 10.248 million, nearly halving from HKD 20.103 million, comprising Hong Kong-listed equity securities and unlisted investment funds Fair Value of Financial Assets | Item (HKD thousands) | As of June 30, 2024 | As of December 31, 2023 | | :--- | :--- | :--- | | Listed Equity Securities in Hong Kong | 4,452 | 6,385 | | Unlisted Investment Funds Outside Hong Kong | 5,796 | 13,718 | | Total | 10,248 | 20,103 | - Fair value of listed equity securities is classified as Level 1 (quoted prices in active markets), while unlisted investment fund units are classified as Level 2 (fund net asset value)[30] Significant Related Party Transactions During the period, the Group engaged in transactions with controlling shareholder Mr. Poon and his close relatives, providing brokerage and financing services, with key management personnel compensation totaling HKD 3.537 million - The Group provided brokerage and financing services to controlling shareholder Mr. Poon and his close relatives, receiving corresponding commissions and interest income[25] Key Management Personnel Compensation (Six Months Ended June 30) | Item (HKD thousands) | 2024 | 2023 | | :--- | :--- | :--- | | Salaries and Other Benefits in Kind | 3,492 | 3,209 | | Retirement Benefit Scheme Contributions | 45 | 45 | | Total | 3,537 | 3,254 | Management Discussion and Analysis This section provides management's perspective on the Group's business and financial performance, outlook, and liquidity Business Review In H1 2024, Group revenue decreased 23.8% to HKD 6.094 million, and loss attributable to owners surged 97.4% to HKD 19.558 million, driven by lower revenue and expanded investment losses - Revenue decreased by 23.8% to HKD 6.094 million for the current period from HKD 7.993 million in the prior period[33] - Loss attributable to owners increased by 97.4% to HKD 19.558 million from HKD 9.906 million in the prior period, primarily due to decreased revenue and expanded fair value losses on listed equity securities and unlisted investment funds[33] Financial Review This section details the Group's financial performance, highlighting revenue decline from reduced business activities, expanded unrealized losses on financial assets, and increased administrative expenses, collectively leading to a significant rise in period loss Revenue Total revenue decreased by 23.8%, with significant declines in brokerage, placing, underwriting, and asset management commissions, partially offset by growth in corporate finance advisory fees and securities financing interest income - Placing and underwriting commissions and service fees decreased by 72.9% from HKD 2.688 million to HKD 0.728 million, primarily due to the absence of a large underwriting mandate in the current period compared to the prior period[36] - Asset management service fees decreased by 59.3% from HKD 0.543 million to HKD 0.221 million, as the assets under management of Astrum China Fund declined and it was voluntarily liquidated in May 2024[36] Fair Value Changes of Financial Assets at Fair Value Through Profit or Loss During the period, the Group recorded a net fair value loss of HKD 9.855 million on financial assets, significantly higher than the prior period, with all losses being unrealized and having no significant cash flow impact - A net loss of approximately HKD 9.855 million was recorded from fair value changes of financial assets at FVTPL, compared to a loss of HKD 3.193 million in the prior period[38] - All fair value losses are unrealized and non-cash in nature, having no significant impact on the Group's cash flow[38] Administrative and Other Operating Expenses Administrative and other operating expenses increased 6.9% to HKD 16.505 million, primarily due to higher legal and professional fees, asset disposal losses, and increased office rent, partially offset by reduced employee benefits - Administrative and other operating expenses increased by 6.9% from HKD 15.435 million to HKD 16.505 million[39] - The increase in expenses is primarily attributable to: (a) an increase in legal and professional fees of approximately HKD 1.577 million; (b) recognition of a loss on disposal of property, plant and equipment of approximately HKD 0.908 million; and (c) an increase in office rent and rates of approximately HKD 0.976 million[39] Outlook Management anticipates continued risks and uncertainties in global and local stock markets, despite moderate Hong Kong economic growth, and will regularly review and adjust business strategies with prudent risk management - Management expects global and Hong Kong stock markets to face continuous risks and uncertainties due to geopolitical instability, interest rate policies of major economies, and the US election[42] - The Group's management will regularly review and adjust business strategies with a prudent and balanced risk management approach to navigate the current unpredictable economic landscape[42] Liquidity and Financial Resources As of June 30, 2024, total assets and equity decreased due to operating losses and declining investment fair values; however, the current ratio improved to 3.8x, with total bank balances and cash at HKD 37.115 million Liquidity and Financial Resources Status | Metric | As of June 30, 2024 | As of December 31, 2023 | | :--- | :--- | :--- | | Total Assets | Approx. 154,025,000 HKD | Approx. 191,062,000 HKD | | Total Equity Attributable to Owners | Approx. 120,264,000 HKD | Approx. 139,822,000 HKD | | Current Ratio | Approx. 3.8 times | Approx. 3.0 times | | Total Bank Balances and Cash | Approx. 37,115,000 HKD | Approx. 51,802,000 HKD | | Gearing Ratio | Approx. 5.5% | 5.2% | Other Information This section provides additional information regarding the company's directors' and major shareholders' interests, share option scheme, and corporate governance practices Directors' and Major Shareholders' Interests As of June 30, 2024, Chairman Mr. Poon, through his wholly-owned company and personal beneficial ownership, held a combined 56.32% of the company's shares, making him the controlling shareholder - Chairman Mr. Poon, through controlled corporations and as a beneficial owner, collectively held 54,068,500 shares, representing 56.32% of the Company's issued share capital[51] - Mr. Poon's spouse, Ms. Liu Mingli, is deemed to have an interest in all 54,068,500 shares held by Mr. Poon and related shares due to their spousal relationship[53] Share Option Scheme The company has a share option scheme adopted in 2016, with 6,800,000 unexercised options outstanding as of June 30, 2024; no options were granted, exercised, or lapsed during the reporting period - As of June 30, 2024, there were 6,800,000 outstanding share options[55] - No share options were granted, exercised, or lapsed during the period[55] Corporate Governance The company maintains high corporate governance standards, largely complying with the code, with one deviation: the roles of Chairman and Chief Executive are not separated, both held by Mr. Poon - The Company deviated from Code Provision C.2.1 of the Corporate Governance Code, which states that the roles of chairman and chief executive should be separate and not performed by the same individual[63] - The Board believes that Mr. Poon's dual role as Chairman and Chief Executive Officer is beneficial to the Group's operations and management, providing strong and consistent leadership[63]