Financial Performance - For the six months ended June 30, 2024, Imagi Brokerage generated approximately HK$1.1 million from asset management services and HK$15.3 million in interest income from margin clients[13]. - The Company reported a challenging environment affecting its brokerage's asset management services[13]. - The consolidated net loss attributable to shareholders for the review period was approximately HK$11.5 million, compared to a net profit of approximately HK$4 million in the previous period[35]. - Total revenue for the six months ended June 30, 2024, was HK$26,637,000, a decrease of 19% compared to HK$32,899,000 in the same period of 2023[103]. - The company reported a loss for the period of HK$11,276,000, compared to a profit of HK$4,941,000 in the same period of 2023[105]. - Total comprehensive expense for the period attributable to owners of the Company was HK$117,068,000, compared to HK$30,254,000 in the same period of 2023, representing an increase of 287%[108]. - The loss for the period attributable to owners of the Company was HK$11,459,000, a significant decline from a profit of HK$4,064,000 in 2023[107]. Revenue Breakdown - Revenue from the money lending business decreased by approximately 46% from approximately HK$5.8 million in the previous period to approximately HK$3.1 million in the review period, with an impairment loss of approximately HK$3.9 million recognized[23][25]. - The overall segment revenue for securities brokerage and asset management was approximately HK$18.7 million, down from approximately HK$26.7 million in the previous period, while segment results were approximately HK$6.6 million compared to HK$19.6 million previously[17][20]. - Revenue from the securities brokerage and asset management segment decreased by approximately 30%, while revenue from the provision of finance segment decreased by approximately 46% during the review period[35]. - Interest income on margin clients was HK$17,173,000, down from HK$23,845,000 in 2023, representing a decline of 28.4%[171]. - Asset management fee income decreased to HK$1,086,000 from HK$2,170,000, reflecting a drop of 50%[171]. Asset Management and Investments - The Group's strategic goal focuses on developing Integrated Financial Services, with investments in local financial service firms totaling approximately HK$310.9 million, which recognized unrealized losses of approximately HK$112 million for fair value changes[28]. - The fair value of the investment in Hope Capital Limited was approximately HK$124.8 million, representing about 16.78% of the Group's total assets, with an unrealized loss of approximately HK$70.8 million for fair value changes[28]. - The Group has started engaging in film distribution license rights and variety entertainment shows since the second half of 2023[51]. - The Group invested approximately HK$16.9 million in four proposed films under the Film Investment Agreements, with three films screened and one in post-production[31]. Financial Position - The Group's bank balances as of June 30, 2024, amounted to approximately HK$18 million, down from approximately HK$31 million as of December 31, 2023[37]. - The current ratio remained stable at approximately 13 times as of June 30, 2024, consistent with the previous period[37]. - The Group had no bank or other borrowings as of June 30, 2024, resulting in a gearing ratio of zero[37]. - The unaudited consolidated net asset value per share attributable to shareholders was approximately HK$0.70 as of June 30, 2024, down from approximately HK$0.84 as of December 31, 2023[38]. - The total assets less current liabilities decreased to HK$712,509,000 from HK$833,527,000, a decline of 14.5%[113]. Operational Changes and Strategy - The Company will continue to suspend production efforts in the CGI business while maintaining distribution efforts, indicating a strategic shift in focus[29]. - The Group is adopting a cautious approach towards new business ventures and expansion plans due to the uncertain economic environment, including high interest rates and geopolitical tensions[18][21]. - The Company plans to expand its Integrated Financial Services businesses, including securities brokerage, futures trading, and corporate finance advisory services[45]. - The Company intends to enter the mass market in its next phase of expansion to diversify its business portfolio[50]. Shareholder Information - The total number of issued shares as of June 30, 2024, is 829,921,572[76]. - The Board does not recommend the payment of an interim dividend for the period under review, consistent with the previous year where no interim dividend was paid[68][69]. - As of June 30, 2024, Oshidori International Holdings Limited holds 141,882,200 shares, representing 17.1% of the company's issued share capital[75]. Accounting and Compliance - The financial statements have been prepared in accordance with the same accounting policies as the 2023 annual financial statements, ensuring consistency in reporting[122]. - The Company has amended and restated its bye-laws to align with the latest regulatory requirements and to provide flexibility for hybrid and electronic meetings, effective from June 26, 2024[65][67]. - The Group has changed its accounting policy regarding LSP liability due to the abolition of the MPF-LSP offsetting mechanism, with no material impact on the consolidated financial statements for the year ended December 31, 2023, and the six months ended June 30, 2024[146]. Fair Value Measurements - The fair value of listed equity securities in Hong Kong is HK$136,672,000, classified as Level 1 based on quoted market closing prices in an active market[158]. - The fair value of unlisted equity securities as of June 30, 2024, is HK$124,844,000, compared to HK$222,294,000 as of December 31, 2023, indicating a significant decrease[160]. - The Group's fair value loss for the six months ended June 30, 2024, was HK$79,854,000, compared to a fair value loss of HK$32,093,000 for the year ended December 31, 2023[168].
元汇集团(00585) - 2024 - 中期财报