Financial Performance - The company reported a revenue of approximately HKD 116,981,000 for the six months ended June 30, 2024, an increase of about 23.3% compared to HKD 94,851,000 for the same period in 2023[4]. - The net profit attributable to shareholders for the same period was approximately HKD 14,709,000, up from HKD 13,608,000, reflecting a growth of about 8.1%[3]. - Interest income from financial lending operations was approximately HKD 116.2 million, an increase of about HKD 22.7 million compared to HKD 93.5 million for the same period in 2023[4]. - Revenue generated from unsecured loans for the six months ended June 30, 2024, was approximately HKD 95 million, compared to HKD 81 million for the same period in 2023, indicating a growth of about 17.3%[6]. - Operating profit rose to HKD 21,505, an increase of 7.2% from HKD 20,062 year-on-year[35]. - The company reported a net profit before tax of HKD 20,382 for the six months ended June 30, 2024[51]. - The total unallocated expenses for the period were HKD 7,767, impacting overall profitability[51]. - The company reported a net loss from investment properties of HKD 3,000, compared to a gain of HKD 6,000 in the previous year[35]. - Basic earnings per share improved to HKD 0.55 from HKD 0.51, indicating a growth of 7.8%[66]. Customer and Loan Activity - The number of active customers for unsecured loans increased from 13,491 as of December 31, 2023, to 14,224 as of June 30, 2024, representing a growth of approximately 5.4%[6]. - The weighted average interest rate for unsecured loans was approximately 41%, with loan amounts ranging from HKD 5,000 to HKD 1,200,000[6]. - The company has implemented strict loan application requirements and is actively reviewing its loan portfolio to minimize default risks[17]. - The company closely monitors overdue loans and has established a system to identify and review overdue accounts[14]. Property Development and Investment - The company did not record any sales transactions for residential units in its property development project during the review period, with 56 units remaining unsold as of June 30, 2024[5]. - The rental income from the property project in Zhongshan decreased by approximately 5% compared to the same period in 2023[5]. - The property development and investment segment reported a loss of HKD 2,503, while the financial lending segment generated a profit of HKD 28,666, resulting in a total segment profit of HKD 26,163[51]. - The company has not explored investment opportunities in the property market due to the downturn in the Chinese property market[18]. Financial Position - As of June 30, 2024, the net amount of receivables and interest recorded by the company was HKD 739,260,000, with an expected credit loss provision of HKD 83,912,000[8]. - Total assets decreased to HKD 1,228,706 from HKD 1,264,977, a decline of 2.9%[37]. - Total liabilities decreased to HKD 143,730 as of June 30, 2024, down from HKD 184,202 as of December 31, 2023[55]. - The total receivables for property mortgage loans as of June 30, 2024, was HKD 312,202,000, compared to HKD 271,727,000 as of December 31, 2023[75]. - The total receivables for personal loans as of June 30, 2024, was HKD 510,970,000, up from HKD 439,566,000 as of December 31, 2023[76]. Strategic Developments - The company acquired 100% of the issued share capital of Alpha Moment Technology Limited for approximately HKD 25,000 on April 30, 2024[10]. - The company has acquired an information technology business to reduce reliance on external vendors and enhance its IT system development[17]. - The company plans to change its name from 添利工業國際（集團）有限公司 to 零在科技金融集團有限公司 to better reflect its business development and future direction in fintech[17]. - The launch of the X Wallet application and the "Buy Now Pay Later" feature, X Pay, aims to diversify financial services for users in areas such as payment services and fund management[17]. Risk Management and Compliance - The company has established a rigorous control framework for credit approval and renewal processes to mitigate risks associated with asset types, counterparties, credit ratings, and geographical locations[8]. - The company has implemented internal control measures for its financial lending operations[12]. - The company has not reported any significant changes in financial risk management policies since December 31, 2023[48]. - The company has complied with the corporate governance code as per the Hong Kong Stock Exchange Listing Rules during the six months ending June 30, 2024[26]. Cash Flow and Financing - Operating cash outflow for the six months ended June 30, 2024, was HKD (88,515) thousand, compared to HKD (30,576) thousand for the same period in 2023, representing a significant increase of 189%[41]. - Financing activities generated a net cash inflow of HKD 114,150 thousand for the six months ended June 30, 2024, compared to a net cash outflow of HKD (492) thousand in the same period of 2023[41]. - The company has entered into a loan agreement with shareholder Li Mingjun, providing a total of 114,700,000 HKD to support business development, with an annual interest rate of 3% and a repayment period of two years[82]. Audit and Financial Reporting - The audit committee reviewed the accounting principles and practices adopted by the group, including the interim financial report for the six months ending June 30, 2024[30]. - The interim financial data was reviewed by the auditors, and no significant issues were found that would indicate non-compliance with the relevant accounting standards[32]. - The company’s financial statements are prepared in accordance with Hong Kong Accounting Standards, specifically HKAS 34 for interim financial reporting[44].
TERMBRAY IND(00093) - 2024 - 中期财报