Financial Performance - Revenue for the six months ended June 30, 2024, was HK$22,397,000, a decrease of 23.5% compared to HK$29,269,000 in the same period of 2023[6]. - Gross profit for the period was HK$10,939,000, down 41.6% from HK$18,694,000 in the previous year[6]. - Loss from operations was HK$9,658,000, slightly increased from a loss of HK$9,327,000 in the same period of 2023[6]. - Total comprehensive income for the period was a loss of HK$9,938,000, compared to a loss of HK$10,620,000 in 2023[7]. - The loss attributable to owners of the company was HK$9,888,000, a slight improvement from HK$10,683,000 in 2023[7]. - The company reported a loss per share of HK$ (6.34) for the six months ended June 30, 2024, compared to a loss of HK$ (6.24) for the same period in 2023[8]. - The company reported a consolidated loss before tax of HK$9,819,000 for the six months ended June 30, 2024, compared to a loss of HK$9,719,000 in 2023[28]. - The Group recorded a net loss after tax of approximately HK$9,888,000 for the Period, a decrease from approximately HK$10,683,000 in the six months ended 30 June 2023[76]. Revenue Breakdown - The Group's total revenue for the six months ended June 30, 2024, was HK$21,475,000, a decrease from HK$28,705,000 in the same period of 2023, representing a decline of approximately 25.4%[23]. - Revenue from sales of technology software systems was HK$1,021,000, down from HK$2,746,000 in 2023, indicating a decrease of about 62.8%[23]. - Revenue from outsourcing services fee was HK$566,000 for the six months ended June 30, 2024, compared to no revenue reported in the same period of 2023[23]. - The Group's revenue from software licensing fees was HK$9,571,000, a decrease from HK$11,058,000 in 2023, reflecting a decline of approximately 13.4%[23]. - Revenue from the money lending business increased by approximately 63.5% to HK$922,000 during the Period, up from approximately HK$564,000 for the six months ended 30 June 2023[61]. Expenses and Costs - Administrative expenses decreased to HK$18,323,000 from HK$26,531,000, reflecting a reduction of 30.9%[6]. - Staff costs for the six months ended June 30, 2024, amounted to HK$18,179,000, a decrease of 15.5% from HK$21,574,000 in 2023[33]. - The company incurred finance costs of HK$148,000 for the six months ended June 30, 2024, compared to HK$177,000 in 2023, reflecting a decrease[32]. - Director remuneration for the period ending June 30, 2024, was HK$1,961,000, a decrease of approximately 42.8% from HK$3,426,000 for the same period in 2023[53]. Assets and Liabilities - Total net assets increased to HK$54,109,000 as of June 30, 2024, up from HK$37,536,000 as of December 31, 2023, representing a growth of approximately 44.1%[11]. - Current assets totaled HK$66,905,000 as of June 30, 2024, compared to HK$53,599,000 as of December 31, 2023, indicating an increase of approximately 24.8%[10]. - Consolidated total assets increased to HK$83,186,000 as of June 30, 2024, up from HK$68,597,000 as of December 31, 2023, representing a growth of 21.3%[28]. - Consolidated total liabilities decreased to HK$29,077,000 as of June 30, 2024, down from HK$31,061,000 as of December 31, 2023, a reduction of 6.4%[28]. - The Group's loan receivables as of 30 June 2024 amounted to HK$82,471,000, with an impairment loss of HK$55,344,000, compared to HK$86,871,000 and HK$62,392,000 respectively as of 31 December 2023[38]. Cash Flow - The net cash used in operating activities was HK$ (9,493,000) for the six months ended June 30, 2024, compared to HK$ (5,795,000) in the same period of 2023, indicating a worsening cash flow situation[14]. - Cash and cash equivalents at the end of the period increased to HK$23,369,000 as of June 30, 2024, from HK$17,109,000 at the end of June 30, 2023, reflecting a growth of approximately 36.6%[14]. - The company generated net cash of HK$24,519,000 from financing activities during the six months ended June 30, 2024, compared to a net cash outflow of HK$ (3,754,000) in the same period of 2023[14]. Impairment and Provisions - The provision for impairment loss on loan and interest receivables was reversed by HK$808,000, compared to a provision of HK$1,218,000 in the previous year[6]. - The Group recorded a reversal of provision for impairment loss on loan and interest receivables of approximately HK$808,000 during the Period, compared to a provision of approximately HK$1,218,000 in the same period of 2023[61]. - The Group's expected credit loss (ECL) model indicated a total impairment of HK$57,503,000 for loan and interest receivables as of 30 June 2024[42]. Corporate Governance and Compliance - The Audit Committee reviewed the unaudited condensed consolidated results and confirmed compliance with applicable accounting standards and adequate disclosures[105]. - The Company complied with all applicable code provisions in the Corporate Governance Code during the reporting period[103]. - The Company has established an Audit Committee to monitor financial reporting, risk management, and internal control systems[104]. Future Outlook and Strategy - The company continues to focus on cost management and operational efficiency to improve financial performance in the future[5]. - The Group aims to diversify its income sources by seeking opportunities in IT services related to artificial intelligence, blockchain technology, and application development[60]. - The Group will maintain a conservative investment approach and closely monitor the performance of its securities investment portfolio[70]. - The Group aims to strengthen its presence in the IT industry and pursue business diversification to capture new growth prospects[98].
汇财金融投资(08018) - 2024 - 中期业绩