紫荆国际金融(08340) - 2024 - 中期财报

Performance Highlights The Group's revenue surged by 234% to HKD 20.79 million in H1 2024, driven by new businesses, while loss attributable to owners narrowed by 24.6% to HKD 2.75 million Performance Highlights The Group's revenue surged by 234% to HKD 20.79 million in H1 2024, driven by new businesses, while loss attributable to owners narrowed by 24.6% to HKD 2.75 million Key Performance Indicators for H1 2024 | Indicator | For the six months ended June 30, 2024 | For the six months ended June 30, 2023 | Year-on-year change | | :--- | :--- | :--- | :--- | | Revenue | Approx. HKD 20.79 million | Approx. HKD 6.22 million | +234.2% | | Loss attributable to owners of the Company | Approx. HKD 2.75 million | Approx. HKD 3.65 million | -24.6% | | Proposed Dividend | Nil | Nil | - | Interim Financial Statements (Unaudited) This section presents the Group's unaudited interim financial statements, including the statement of profit or loss, financial position, and cash flows Condensed Consolidated Statement of Profit or Loss and Other Comprehensive Income H1 2024 revenue grew 234% to HKD 20.79 million, driven by new businesses, resulting in a gross profit of HKD 7.71 million and a narrowed loss attributable to owners of HKD 2.75 million Condensed Consolidated Statement of Profit or Loss (For the six months ended June 30) | Item (HKD '000) | 2024 (Unaudited) | 2023 (Unaudited) | | :--- | :--- | :--- | | Revenue | 20,791 | 6,222 | | Cost of Revenue | (13,081) | — | | Gross Profit | 7,710 | 6,222 | | Operating Expenses | (9,472) | (9,869) | | Operating Loss | (1,762) | (3,647) | | Loss Attributable to Owners of the Company | (2,749) | (3,647) | | Basic and Diluted Loss Per Share (HK cents) | (3.1) | (5.6) | Condensed Consolidated Statement of Financial Position Total assets increased to HKD 63.87 million by June 30, 2024, but rising current liabilities, particularly bills payable, reduced net current assets to HKD 3.10 million and net assets to HKD 21.62 million Condensed Consolidated Statement of Financial Position Summary | Item (HKD '000) | June 30, 2024 (Unaudited) | December 31, 2023 (Audited) | | :--- | :--- | :--- | | Non-current assets | 18,525 | 13,672 | | Current assets | 45,344 | 29,089 | | Current liabilities | 42,247 | 18,182 | | Net current assets | 3,097 | 10,907 | | Net assets / Total equity | 21,622 | 24,579 | Condensed Consolidated Statement of Cash Flows H1 2024 saw increased net cash outflows from operations (HKD 14.84 million) and investing (HKD 9.02 million), largely offset by HKD 23.46 million from financing, with cash and equivalents ending at HKD 11.27 million Condensed Consolidated Statement of Cash Flows (For the six months ended June 30) | Item (HKD '000) | 2024 (Unaudited) | 2023 (Unaudited) | | :--- | :--- | :--- | | Net cash used in operating activities | (14,838) | (5,938) | | Net cash used in investing activities | (9,021) | 10 | | Net cash generated from financing activities | 23,463 | 1,038 | | Net decrease in cash and cash equivalents | (396) | (4,890) | | Cash and cash equivalents at end of period | 11,268 | 8,645 | Notes to the Financial Statements Summary This section provides a summary of key notes to the financial statements, including revenue segmentation, loss per share, and trade receivables Revenue and Segment Information Total revenue reached HKD 20.79 million across four segments, with online gaming contributing HKD 14.54 million and car rental HKD 1.92 million, while corporate finance advisory revenue declined to HKD 4.09 million Revenue and Results by Business Segment (For the six months ended June 30) | Segment (HKD '000) | 2024 Revenue | 2023 Revenue | 2024 (Loss)/Profit | 2023 (Loss)/Profit | | :--- | :--- | :--- | :--- | :--- | | Corporate Finance Advisory Services | 4,092 | 5,892 | 925 | (1,050) | | Securities Advisory and Asset Management | 240 | 330 | (77) | (120) | | Car Rental Business | 1,917 | — | (411) | — | | Online Gaming Business | 14,542 | — | 560 | — | | Total | 20,791 | 6,222 | 997 | (1,170) | - The Group's business expanded to four operating segments, with the newly added car rental and online gaming businesses becoming the primary sources of revenue[12] Loss Per Share Basic loss per share narrowed to 3.1 HK cents in H1 2024 from 5.6 HK cents, driven by reduced loss and increased weighted average shares, with no dilutive impact Basic Loss Per Share Calculation | Item | For the six months ended June 30, 2024 | For the six months ended June 30, 2023 | | :--- | :--- | :--- | | Loss attributable to owners of the Company | Approx. HKD 2,749,000 | Approx. HKD 3,647,000 | | Weighted average number of ordinary shares in issue | 89,600,000 shares | 65,626,519 shares | | Basic Loss Per Share | 3.1 HK cents | 5.6 HK cents | Trade and Other Receivables Net trade receivables increased to HKD 24.96 million by June 30, 2024, with HKD 8.48 million overdue by over three months, indicating a longer collection cycle Trade Receivables Ageing Analysis (Net of Provision) | Ageing | June 30, 2024 (HKD '000) | December 31, 2023 (HKD '000) | | :--- | :--- | :--- | | Within 3 months | 16,477 | 2,441 | | Over 3 months | 8,479 | 14,243 | | Total | 24,956 | 16,684 | Management Discussion and Analysis This section provides an overview of the Group's business performance, strategic outlook, financial review, liquidity, and post-reporting period events Business Review The Group diversified its business, with traditional corporate finance securing 14 projects, asset management reaching HKD 15 million AUM, and new car rental and online gaming businesses becoming key growth drivers - Corporate Finance Advisory Business: Despite a weak market, the Group successfully secured multiple advisory mandates, with 14 authorized projects[28] - Securities Advisory and Asset Management Business: Two open-ended fund companies were established, with one sub-fund managing HKD 15 million in assets[29] - Car Rental Business: Launched in late 2023, it owns five luxury vehicles (including Bentley and Rolls-Royce), all successfully leased[30] - Online Gaming Business: Commenced in October 2023, it has entered into licensing agreements with developers for four online games, generating revenue during the reporting period[31] Outlook The Group plans to expand corporate finance leveraging listing reforms, seek investors for a second fund, grow car rental with new vehicle acquisitions, and expand online gaming through new licenses and marketing for diversified revenue - Corporate Finance: Leveraging new listing regimes, the Group aims to position itself as a comprehensive financing advisor, actively engaging international companies for IPO sponsorship and other services[32] - Asset Management: Plans to raise capital for a second open-ended fund company in H2 2024 and serve as investment manager for three funds under the new Capital Investment Entrant Scheme[33] - Car Rental: Seizing Greater Bay Area opportunities, the Group plans to acquire suitable vehicles to enhance its existing fleet and meet cross-border leasing demand[33] - Online Gaming: Plans to expand business by acquiring additional game licenses, establishing an internal operations team, and strengthening promotional marketing[33] Financial Review H1 2024 consolidated revenue surged 234% to HKD 20.79 million, mainly from online gaming, while loss attributable to owners narrowed 24.6% to HKD 2.75 million Financial Performance Summary | Item | For the six months ended June 30, 2024 | For the six months ended June 30, 2023 | Reason for Change | | :--- | :--- | :--- | :--- | | Consolidated Revenue | HKD 20.79 million | HKD 6.22 million | Primarily from online gaming business segment | | Loss attributable to owners of the Company | HKD 2.75 million | HKD 3.65 million | Increased revenue | Liquidity and Financial Resources Cash and equivalents remained stable at HKD 11.27 million, but increased borrowings led to a drop in net current assets to HKD 3.10 million and a sharp rise in gearing ratio to 185%, indicating higher financial leverage Key Liquidity Indicators | Indicator | June 30, 2024 | December 31, 2023 | | :--- | :--- | :--- | | Cash and cash equivalents | Approx. HKD 11.27 million | Approx. HKD 11.46 million | | Net current assets | Approx. HKD 3.10 million | Approx. HKD 10.91 million | | Current Ratio | 1.07 times | 1.6 times | | Gearing Ratio | 185% | 65.1% | Events After Reporting Period Post-period, the Company completed a 1-for-5 rights issue on August 8, 2024, raising approximately HKD 52.8 million net for debt repayment, car fleet enhancement, online gaming expansion, and working capital - The Company completed a rights issue, raising up to HKD 52.8 million net proceeds, primarily for debt repayment (approx. HKD 30 million) and business expansion (car rental approx. HKD 13 million, online gaming approx. HKD 7 million)[43] Other Information Disclosure This section covers information on directors' and major shareholders' interests and the Company's transactions in its listed securities Directors' and Major Shareholders' Interests As of June 30, 2024, Chairman Mr. Li Junwei held 15.49% of shares, while major shareholder Mr. Ma Kun held 7.25% Major Shareholders' Interests (As of June 30, 2024) | Name | Capacity | Number of Shares Held | Percentage of Shareholding | | :--- | :--- | :--- | :--- | | Mr. Li Junwei | Director/Chairman | 13,879,000 | 15.49% | | Mr. Ma Kun | Major Shareholder | 6,500,000 | 7.25% | Purchase, Sale or Redemption of the Company's Listed Securities Neither the Company nor its subsidiaries purchased, sold, or redeemed any of the Company's listed securities during the six months ended June 30, 2024 - During the reporting period, neither the Company nor any of its subsidiaries purchased, sold, or redeemed any of the Company's listed securities[49] Corporate Governance This section details the Company's compliance with corporate governance codes and the composition and roles of its board committees Compliance with Corporate Governance Code The Company largely complied with the Corporate Governance Code, with a deviation where the Chairman and Chief Executive roles are combined, deemed appropriate given the Company's current scale - The Company deviates from Corporate Governance Code Provision C.2.1, where the roles of Chairman and Chief Executive are held by the same individual, explained by the Company's relatively small scale[50] Board Committees The Company has established Remuneration, Nomination, and Audit Committees, with the Audit Committee, composed of three independent non-executive directors, having reviewed and approved the interim financial statements - Remuneration Committee: Composed of one executive director and two independent non-executive directors, chaired by Ms. Lau Mei Suet[52] - Nomination Committee: Composed of one executive director and two independent non-executive directors, chaired by Mr. Li Junwei[53] - Audit Committee: Composed of three independent non-executive directors, chaired by Ms. Lau Mei Suet, which has reviewed these interim financial statements[54][55]