Financial Performance - For the six months ended June 30, 2024, the Group recorded an unaudited profit attributable to shareholders of HK$33.29 million, a decrease of 71.2% compared to the same period in 2023[10]. - The decrease in profit was primarily due to a reduction in the share of results from Xiamen International Bank Co., Ltd. and a one-off exchange loss of approximately HK$21.93 million from the reduction of paid-in capital of Sanming Sanyuan District Minxin Micro Credit Company Limited[10]. - Basic earnings per share for the period was 5.57 HK cents[10]. - The Group's financial services business reported an unaudited profit after tax of HK$73.18 million in the first half of 2024, a decrease of 46.9% from HK$137.69 million in the same period of 2023[17]. - Profit for the period significantly decreased to HK$33,292,000, down 71.2% from HK$115,522,000 in 2023[42]. - Basic and diluted earnings per share fell to HK$5.57, a decrease of 71.2% compared to HK$19.34 in the prior year[41]. - Total revenues for the six months ended June 30, 2024, were HK$103,301,000, a decline of 5.5% compared to HK$109,717,000 in 2023[41]. - Operating loss increased to HK$13,851,000 from HK$9,392,000 in the previous year, reflecting a deterioration in operational performance[41]. Economic Environment - The global economy showed signs of gradual recovery despite challenges from geopolitical uncertainties and high inflation rates[9]. - The Group's performance was impacted by a high interest rate environment and conservative corporate activity, leading to a prudent approach in business operations[10]. - The Group remains optimistic about future prospects due to proactive and prudent business development and diversification strategies[9]. Asset Management - The Group's total assets remained at HK$9.18 billion as of June 30, 2024, unchanged from the end of 2023[12]. - The total assets of the banking business accounted for 69.1% of the Group's total assets as of June 30, 2024[12]. - The Group's net asset value per share was HK$13.45 as of June 30, 2024, with approximately 79% derived from the investment in XIB[12]. - Total bank balances increased to HK$1,300.04 million as of June 30, 2024, from HK$1,061.83 million at the end of 2023[24]. Investment and Shareholding - XIB was ranked 156th in total assets and 168th in Tier-one Capital in the 2024 Top 1000 World Banks, maintaining its position among the top 200 banks globally for consecutive years[13]. - As of June 30, 2024, Samba Limited holds 144,885,000 shares, representing approximately 24.26% of the issued share capital of the Company[35]. - Vigour Fine Company Limited directly holds 355,552,883 shares, accounting for approximately 59.53% of the issued share capital of the Company[35]. - The total number of shares held by substantial shareholders indicates a concentrated ownership structure, with the top three shareholders holding over 98% of the issued share capital[35][36]. Risk Management - The management is focused on minimizing operational risks while seizing new opportunities for business diversification[10]. - The Group's strategy includes adapting to uncertainties in the external environment[10]. - The Chairman's statement highlighted a commitment to maintaining a cautious business approach in response to external challenges[7]. - The Group periodically reviews and monitors its foreign currency exposure due to exchange rate fluctuations between Hong Kong dollars and Renminbi[25]. Insurance Sector - The insurance service recorded a surplus of HK$5.21 million for the six months ended June 30, 2024, an increase of 27.7% from HK$4.08 million in the same period of 2023[13]. - The profit after tax for Min Xin Insurance increased by 97% to HK$3.98 million in the first half of 2024, up from HK$2.02 million in the same period of 2023, mainly due to increased insurance service results and investment income[19]. - Min Xin Insurance recorded insurance revenue of HK$91.91 million in the first half of 2024, a decrease of 7.9% compared to HK$99.79 million in the same period of 2023[19]. Corporate Governance - The Company has complied with all applicable code provisions set out in the Corporate Governance Code throughout the six months ended June 30, 2024[30]. - The Audit Committee reviewed the accounting principles and practices adopted by the Group and discussed risk management and financial reporting matters for the six months ended June 30, 2024[31]. - The Company has adopted a code of conduct for directors' securities transactions that meets or exceeds the standards set out in the Model Code[31]. Employee and Management Changes - The Group employed 69 employees as of June 30, 2024, with remuneration based on individual performance and experience[26]. - Mr. HUANG Wensheng has been appointed as General Manager and a member of the Remuneration Committee effective from March 29, 2024[38]. - Mr. CHEN Yu has resigned as General Manager and a member of the Remuneration Committee effective from March 29, 2024[39]. Debt and Financing - Total borrowings amounted to HK$820.25 million, down 4.1% from HK$855.59 million at the end of 2023[22]. - The effective interest rate for borrowings ranged from 2.7% to 6.4% as of June 30, 2024, compared to 2.7% to 7.6% on December 31, 2023[22]. - The total liabilities of the Group were HK$1,149.13 million, with a total liabilities to equity ratio of 14.3% as of June 30, 2024, up from 13.8% at the end of 2023[24]. Cash Flow and Liquidity - The net cash outflow from operating activities was HK$10,174,000, compared to an inflow of HK$22,587,000 in the same period of 2023[46]. - The company reported a net cash inflow from investing activities of HK$290,102,000 for the six months ended June 30, 2024, compared to HK$147,709,000 in the prior year[47]. - Cash and cash equivalents increased to HK$640,014,000 from HK$415,415,000, indicating improved liquidity[43]. Future Outlook - The Group aims to enhance sustainable business development and achieve better financial performance through innovative technology and strategic transformation in the insurance sector[15]. - The Group plans to continue expanding its insurance business while improving the quality and profitability of its services[13]. - The management is working with relevant parties to identify feasible measures to restore the public float[40].
闽信集团(00222) - 2024 - 中期财报