Financial Performance - Revenue for the six months ended June 30, 2024, was HK$360,353,000, compared to HK$360,000,000 for the same period in 2023, reflecting a slight increase [2]. - The net loss for the period attributable to owners of the Company was HK$8,679,000, compared to a loss of HK$3,618,000 in the previous year, indicating a significant increase in losses [3]. - Basic and diluted loss per share increased to 2.67 HK cents from 2.01 HK cents year-over-year [3]. - The Group reported a loss before income tax of approximately HK$8,679,000 for the six months ended June 30, 2024, compared to a loss of HK$3,618,000 in 2023 [26]. - Basic loss per share for the period was approximately HK$0.0268, based on a weighted average number of shares of 324,543,979 [26]. Assets and Equity - Total assets less current liabilities as of June 30, 2024, were HK$71,201,000, up from HK$60,170,000 at the end of 2023 [6]. - Net current assets increased to HK$70,634,000 from HK$60,110,000, showing improved liquidity [6]. - The Company reported a total equity of HK$70,995,000 as of June 30, 2024, compared to HK$60,170,000 at the end of 2023 [6]. - The fair value of listed equity securities held for trading increased to HK$68,338,000 as of June 30, 2024, from HK$58,951,000 as of December 31, 2023 [31]. - As of June 30, 2024, the net asset value is approximately HK$70,995,000, an increase from HK$60,170,000 as of December 31, 2023, resulting in a net asset value per share of approximately HK cents 20.47, down from HK cents 33.36 [39]. Cash Flow - For the six months ended June 30, 2024, the net decrease in cash from operating activities was HK$18,392,000, compared to a decrease of HK$4,750,000 for the same period in 2023, indicating a significant decline in operational cash flow [9]. - The net increase in cash from financing activities was HK$19,788,000 for the first half of 2024, contrasting with a slight decrease of HK$131,000 in the previous year, suggesting improved financing conditions [9]. - Cash and cash equivalents at the end of the period increased to HK$2,560,000 from HK$1,179,000 at the beginning of the period, reflecting a net increase of HK$1,381,000 [9]. - The cash and cash equivalents at the end of June 30, 2023, were HK$18,041,000, showing a decrease compared to the current period, which indicates a shift in liquidity management [9]. Financial Management - The finance costs decreased slightly to HK$7,000 from HK$9,000, reflecting better cost management [2]. - The Company has not reported any income tax expense for the period [2]. - No provision for Hong Kong profits tax has been made as there is no estimated assessable profit for the six months ended June 30, 2024 [24]. - The Group had unused tax losses of approximately HK$374,935,000 available for offset against future profits as of June 30, 2024 [24]. Share Capital and Rights Issue - The Company issued shares during the rights issue, increasing share capital to HK$13,876,000 from HK$6,938,000 [8]. - The company issued a total of 173,448,741 rights shares at HK$0.12 each, raising gross proceeds of approximately HK$20,813,000 and net proceeds of approximately HK$19,503,000, with a net price of approximately HK$0.11 per rights share [36]. - Approximately 93.33% of the net proceeds from the rights issue, amounting to HK$18.2 million, will be used for investments in listed and unlisted securities [100]. Market Conditions - The Hang Seng Index (HSI) experienced a significant rally in April 2024, surging over 3,000 points within a month, reaching a high of 19,706 on May 20 [50]. - The HSI closed at 17,718, reflecting a gain of 671 points or 3.9%, while the Hang Seng Tech Index fell by 209 points or 5.6% [51]. - The performance of the HSI lagged behind other major indices, with the S&P 500 and Nikkei 225 gaining 14.5% and 18.3%, respectively [51]. - The market turnover for the first half of 2024 remained relatively light due to negative sentiment and concerns over the Chinese economic growth [48]. - The lack of effective policies to revive the economy contributed to a challenging market environment, with the HSI dropping to a low of 14,794 in late January 2024 [48]. Future Outlook - The Group will monitor the mainland economy closely, as consumer spending and confidence are crucial for performance recovery [52]. - Continuous share buybacks from selective blue chips are expected to support the Hong Kong stock market despite low valuations [52]. - The upcoming U.S. presidential elections in November may impact the economic landscape and current anti-China policies [52]. Corporate Governance - The Company has adopted the Corporate Governance Code and was in compliance with its provisions during the six months ended June 30, 2024 [116]. - The Audit Committee, comprising three independent non-executive Directors, reviewed the unaudited condensed interim financial statements for the six months ended June 30, 2024 [116]. - The Company confirmed adherence to the standards set out in the Securities Trading Code during the six months ended June 30, 2024 [115].
中国金融租赁(02312) - 2024 - 中期财报