Corporate Activities - For the six months ended June 30, 2024, Da Yu Financial Holdings Limited primarily engaged in corporate finance advisory services, asset management, securities broking, and money lending [5]. - Yu Ming Investment Management Limited is licensed for Type 1, Type 4, Type 6, and Type 9 regulated activities under the Securities and Futures Ordinance [5]. - Morton Securities is a licensed securities dealer and an Exchange Participant of The Stock Exchange of Hong Kong Limited [5]. - Morgan Finance holds a money lenders license, allowing it to conduct money lending business in Hong Kong [5]. - The corporate finance advisory services included advising listed issuers and shareholders on specific transactions related to the Listing Rules and Hong Kong Codes [5]. Financial Performance - Revenue for the Interim Period was approximately HK$24.8 million, an increase from approximately HK$21.1 million in 2023 [8]. - The Group recorded a net profit of approximately HK$25.8 million for the Interim Period, up from approximately HK$4.2 million in 2023, representing an increase of approximately HK$21.6 million [8]. - Revenue from corporate finance advisory and related services was approximately HK$11.0 million, compared to approximately HK$9.0 million in 2023 [7]. - Revenue from asset management services was approximately HK$8.1 million, an increase from approximately HK$7.8 million in 2023 [7]. - Revenue from securities and related services was approximately HK$4.9 million, significantly up from approximately HK$1.2 million in 2023 [7]. - Revenue from money lending and related business was approximately HK$0.8 million, down from approximately HK$3.1 million in 2023 [8]. Assets and Liabilities - As of June 30, 2024, the Group had cash and cash equivalents of approximately HK$194.4 million, compared to approximately HK$70.4 million as of December 31, 2023 [9]. - The Group's current ratio was approximately 193.8% as of June 30, 2024, up from approximately 150.8% as of December 31, 2023 [9]. - Total assets as of June 30, 2024, were approximately HK$789.5 million, an increase from approximately HK$492.5 million as of December 31, 2023 [12]. - The Group's net assets increased to approximately HK$505.8 million as of June 30, 2024, from approximately HK$309.9 million as of December 31, 2023, due to a rights issue that raised approximately HK$170.1 million [12]. Rights Issue - The Company proposed a rights issue of up to 1,139,330,190 new shares at a subscription price of HK$0.15 per share, with gross proceeds of approximately HK$170.9 million and net proceeds of approximately HK$170.1 million after expenses [18]. - The rights issue was approved by independent shareholders on December 28, 2023, and completed on February 2, 2024 [18]. - The Company had no outstanding contracted capital commitments or assets under pledge as of June 30, 2024 [20]. Investment Activities - The Company invested US$15.0 million (approximately HK$117.4 million) in the YMHD Fund, which became a wholly-owned subsidiary in February 2024, and increased the investment by US$4.2 million (approximately HK$32.8 million) in July 2024 [22]. - The total cost of the investment in the YMHD Fund amounted to US$19.2 million (approximately HK$150.2 million) as of July 2024 [22]. - The Company recorded an unrealized gain of approximately HK$5.0 million from the BEA Notes during the interim period [22]. Shareholder Information - As of June 30, 2024, Xu Haohao holds 680,106,534 shares, representing 29.85% of the total issued shares [42]. - Lee Wa Lun holds 227,250,000 shares, accounting for 9.97% of the total issued shares [42]. - Beyond Global holds a corporate interest of 677,646,534 shares, representing 29.74% of the total shares [50]. - Victory Gain has a beneficial interest of 664,076,534 shares, accounting for 29.14% of the total shares [50]. - Universal Way Limited, indirectly wholly-owned by AGL, holds 217,279,896 shares, which is approximately 9.53% of the total shares [51]. Employee Expenses - Employee benefit expenses amounted to approximately HK$7.7 million, an increase from HK$7.3 million in 2023 [38]. - Employee benefits expenses during the Interim Period included salaries of approximately HK$7.7 million, MPF contributions of about HK$300,000, and directors' fees also around HK$300,000 [40]. - Employee benefit expense increased to HK$8,293,000 from HK$7,865,000, reflecting a rise of 5.4% [77]. Legal Matters - Yu Ming is involved in ongoing litigation with China Health Group Limited, seeking HK$5,300,000 for fees under engagement letters [186]. - The legal advisor for Yu Ming believes there is a good prospect of successfully defending the action against the claims [186]. - Mediation efforts in the litigation were unsuccessful, and the parties failed to reach an agreement [186]. Compliance and Governance - The company has complied with all applicable code provisions of the Corporate Governance Code during the interim period, except for code provision F.2.2 regarding the attendance of the chairman at the annual general meeting [62]. - The audit committee reviewed the interim condensed consolidated financial statements for the six months ended June 30, 2024 [59]. - The interim financial statements were approved by the Board of Directors on August 27, 2024 [88]. Revenue Recognition - Revenue from contracts with customers within the scope of HKFRS 15 increased to HK$24,832,000 in 2024 from HK$21,147,000 in 2023, representing a growth of approximately 12.7% [96]. - The total revenue from interest revenue not within the scope of HKFRS 15 increased to HK$24,057,000 in 2024 from HK$18,410,000 in 2023, a growth of approximately 30% [96]. - The timing of services revenue recognition within the scope of HKFRS 15 shows a significant portion recognized at a point in time, totaling HK$10,345,000 in 2024 [96]. Financial Assets - The fair value of listed debt securities and listed perpetual securities is approximately HK$121,338,000 as of June 30, 2024, compared to approximately HK$59,451,000 as of December 31, 2023 [195]. - The total fair value of financial assets at fair value through profit or loss is HK$126,422,000, with HK$5,084,000 in Level 1 and HK$121,338,000 in Level 2 [193]. - The Group's non-current financial assets at fair value through profit or loss (FVPL) increased to HK$77,066,000 as of June 30, 2024, up from HK$49,579,000 [168].
大禹金融(01073) - 2024 - 中期财报