华亿金控(08123) - 2024 - 中期财报

Performance Summary Key Financial Indicators The Group reported revenue of HK$20.5 million and a net loss of HK$12.98 million for the six months ended June 30, 2024 2024 Interim Results Summary | Indicator | Amount (HK$) | | :--- | :--- | | Revenue | Approx 20,500,000 | | Loss for the period | Approx 12,982,000 | | Loss attributable to owners of the Company | Approx 12,973,000 | | Basic loss per share | 0.17 HK cents | | Proposed dividend | Nil | Condensed Consolidated Financial Statements (Unaudited) Condensed Consolidated Statement of Profit or Loss and Other Comprehensive Income The Group's revenue fell 75.4% year-on-year to HK$20.5 million, while the net loss remained stable at approximately HK$12.98 million Key Income Statement Data (For the six months ended June 30) | Indicator (HK$'000) | 2024 (Unaudited) | 2023 (Unaudited) | YoY Change | | :--- | :--- | :--- | :--- | | Revenue | 20,500 | 83,380 | -75.4% | | Loss before income tax | (13,011) | (13,604) | -4.4% | | Loss for the period | (12,982) | (13,604) | -4.6% | | Loss attributable to owners of the Company | (12,973) | (13,598) | -4.6% | | Basic loss per share (HK cents) | (0.17) | (0.18) | N/A | Condensed Consolidated Statement of Financial Position The Group's net assets decreased by 13.6% to HK$102.2 million as of June 30, 2024, due to declining assets and rising liabilities Key Balance Sheet Data | Indicator (HK$'000) | Jun 30, 2024 (Unaudited) | Dec 31, 2023 (Audited) | Period Change | | :--- | :--- | :--- | :--- | | Non-current assets | 22,608 | 23,930 | -5.5% | | Current assets | 210,526 | 220,349 | -4.5% | | Total assets | 233,134 | 244,279 | -4.6% | | Current liabilities | 128,517 | 123,413 | +4.1% | | Non-current liabilities | 2,460 | 2,647 | -7.1% | | Total liabilities | 130,977 | 126,060 | +3.9% | | Net assets | 102,157 | 118,219 | -13.6% | | Equity attributable to owners of the Company | 102,003 | 118,052 | -13.6% | Condensed Consolidated Statement of Cash Flows The Group's operating activities generated a net cash inflow of HK$7.73 million, a significant turnaround from the prior year's outflow Key Cash Flow Data (For the six months ended June 30) | Indicator (HK$'000) | 2024 (Unaudited) | 2023 (Unaudited) | | :--- | :--- | :--- | | Net cash from operating activities | 7,728 | (5,087) | | Net cash used in investing activities | (23) | (79) | | Net cash used in financing activities | (1,713) | (1,206) | | Net increase/(decrease) in cash and cash equivalents | 5,992 | (6,372) | | Cash and cash equivalents at beginning of period | 19,554 | 32,986 | | Cash and cash equivalents at end of period | 25,546 | 26,614 | Management Discussion and Analysis Business and Financial Review Revenue sharply declined by 75.4% to HK$20.5 million due to the shrinking auto trade, though losses remained stable at HK$13 million - Revenue decreased by HK$62.88 million (-75.4%) year-on-year, primarily due to a reduction in the automobile trading and agency services business in China[41][43] - The loss for the period was approximately HK$13.0 million, comparable to the prior year's HK$13.6 million, mainly due to decreased sales and increased financing costs[41] - Given the persistent losses in the securities-related business, the Group disposed of Sinofortune BVI and its subsidiaries on July 9, 2024, to reallocate resources[42] Segment Performance The auto trading segment's revenue collapse drove the overall decline, while the underperforming securities business was divested post-period Revenue by Business Segment (For the six months ended June 30) | Segment (HK$'000) | 2024 | 2023 | YoY Change | | :--- | :--- | :--- | :--- | | Automobile trading, agency services and procurement of accessories | 20,343 | 83,170 | -75.5% | | Trading of listed securities | 0 | 0 | - | | Brokerage and securities margin financing services | 157 | 210 | -25.2% | | Total | 20,500 | 83,380 | -75.4% | - The Group has invested in China's new drug development market, co-developing four new drugs, one of which has entered Phase II clinical trials[42] Liquidity and Capital Resources The Group's liquidity weakened with a current ratio drop to 1.6, while the gearing ratio rose significantly to 128.4% Key Financial Ratios and Resources | Indicator | Jun 30, 2024 | Dec 31, 2023 | | :--- | :--- | :--- | | Current ratio | 1.6 times | 1.8 times | | Gearing ratio | 128.4% | 106.8% | | Bank balances and cash | HK$30.69 million | HK$24.83 million | | Total other borrowings | HK$30.00 million | HK$30.00 million | Prospects The Group will pivot its core auto business to new energy vehicles and explore new drug development investments for diversification - The strategic focus will be on new energy vehicles and the Hainan duty-free car business to counter shrinking demand for gasoline cars[46] - The Group still needs to resolve environmental certification issues for imported China VI standard vehicles, with six models certified and others pending[45] - The company will continue to monitor China's new drug development market to diversify the Group's business[46] Significant Notes and Other Disclosures Events After the Reporting Period Post-period, the Group completed the disposal of its loss-making financial services subsidiary, Sinofortune BVI, on July 9, 2024 - On July 9, 2024, the company sold its wholly-owned subsidiary Sinofortune BVI, which engaged in regulated activities, for HK$4 million in cash plus net asset value[40] Revenue Breakdown The Group's revenue is almost entirely derived from its auto trading business in Mainland China, which saw a significant decline Revenue from External Customers by Location (For the six months ended June 30) | Location (HK$'000) | 2024 | 2023 | | :--- | :--- | :--- | | China (excluding Hong Kong) | 20,343 | 83,170 | | Hong Kong | 157 | 210 | | Total | 20,500 | 83,380 | Directors, Shareholders, and Corporate Governance The Chairman and CEO, a substantial shareholder with a 27.40% stake, holds dual roles, a deviation from governance codes - Chairman Mr. Wang Jiawei beneficially owns 2,123,395,935 shares, representing an approximate 27.40% stake in the company[52] - The company deviates from the Corporate Governance Code by having Mr. Wang Jiawei serve as both Chairman and CEO[58] - The Audit Committee, comprising three independent non-executive directors, has reviewed the interim financial statements[60][61]