Financial Performance - Revenue for the six months ended June 30, 2024, was HKD 96,750,000, an increase of 21.2% compared to HKD 79,802,000 for the same period in 2023[2] - The net loss for the period was HKD 35,143,000, compared to a net loss of HKD 20,274,000 in the previous year, representing a 73.5% increase in losses[2] - The basic and diluted loss per share for the six months ended June 30, 2024, was HKD (15.26), compared to HKD (8.83) in 2023, indicating a worsening of 73.5%[4] - The company reported a total comprehensive expense of HKD 36,178,000 for the period, compared to HKD 15,607,000 in the previous year, an increase of 131.5%[3] - The company reported a loss of HKD 35,143,000 for the six months ended June 30, 2024, compared to a loss of HKD 20,338,000 for the same period in 2023, representing a 73% increase in losses[22] Revenue Breakdown - Medical products generated revenue of HKD 36,286,000, up from HKD 35,447,000, while plastic toys revenue slightly decreased to HKD 1,812,000 from HKD 1,852,000[15] - Interest income from loans and finance leases increased significantly to HKD 58,080,000, compared to HKD 42,306,000 in the previous year, reflecting a growth of 37.4%[15] - Revenue from medical products for the six months ended June 30, 2024, was approximately HKD 36,300,000, representing an increase of about 2.4% year-on-year[36] - Interest income from lending activities for the six months ended June 30, 2024, was approximately HKD 48,800,000, up from HKD 31,800,000 in 2023, accounting for about 50.4% of total revenue[37] Cash Flow and Assets - Cash generated from operating activities was HKD 105,666,000, significantly up from HKD 18,569,000 in the same period last year[9] - Cash and cash equivalents at the end of the period were HKD 132,573,000, up from HKD 127,822,000, reflecting a slight increase of 3.0%[9] - The company’s non-current assets totaled HKD 74,955,000, a decrease from HKD 75,954,000, indicating a decline of 1.3%[5] - Trade and other receivables totaled HKD 86,823,000 as of June 30, 2024, down from HKD 150,596,000 at the end of 2023, indicating a 42% decrease[23] - The company’s receivables from loans decreased to HKD 978,564,000 from HKD 1,049,055,000, reflecting a decline of approximately 7%[27] - Cash and cash equivalents increased by approximately HKD 4,800,000 to about HKD 132,600,000 as of June 30, 2024, compared to HKD 127,800,000 as of December 31, 2023[40] Liabilities and Expenses - Total assets decreased to HKD 1,164,973,000 from HKD 1,301,062,000, reflecting a decline of 10.5%[6] - Current liabilities remained stable at HKD 427,257,000, compared to HKD 427,560,000 in the previous year[6] - The total amount of trade payables increased to HKD 43,706,000 from HKD 20,994,000, marking a 108% rise[30] - The total tax expense for the six months was HKD 29,000, a significant decrease from HKD 1,024,000 in the same period last year[18] Segment Performance - The group reported a segment loss of HKD 6,742,000 in the medical products and plastic toys business, while the lending and other financial services segment achieved a profit of HKD 24,239,000[16] - The fair value changes of financial assets through profit or loss resulted in a loss of HKD 43,230,000, indicating challenges in the investment portfolio[16] - The fair value changes of financial assets through profit or loss resulted in a loss of approximately HKD 43,230,000, compared to a loss of HKD 15,374,000 in the previous year[20] Corporate Governance and Compliance - The company has complied with the corporate governance code throughout the six months ending June 30, 2024[55] - The audit committee, consisting of three independent non-executive directors, reviewed the accounting principles and discussed audit and financial reporting matters for the six months ending June 30, 2024[56] - All directors confirmed full compliance with the securities trading code during the six months ending June 30, 2024[57] Future Outlook and Strategy - The company continues to focus on expanding its medical products and financial services segments, which are key growth areas[12] - The company plans to expand its financial services in Hong Kong and China, focusing on lending, leasing, and securities brokerage, while also exploring potential investment opportunities[38] - The company has not adopted new accounting standards that are not yet effective, and expects no significant impact on performance or financial position[12] - The company anticipates that the adoption of new accounting standards will not have a significant financial impact on the group[12] Staffing and Dividends - The company employed a total of 159 staff as of June 30, 2024, with 146 based in China and the remainder in Hong Kong[46] - The company did not recommend the payment of an interim dividend for the six months ended June 30, 2024, consistent with the previous year[21] - The board of directors did not recommend the payment of an interim dividend for the six months ended June 30, 2024[47] Stock Options and Investments - No stock options were granted, exercised, lapsed, or cancelled under the 2022 stock option plan for the six months ending June 30, 2024[49] - As of June 30, 2024, there are no specific plans for significant investments or capital assets[50] - There were no major acquisitions or disposals during the six months ending June 30, 2024[50] - As of June 30, 2024, the number of stock options available for grant under the 2022 stock option plan is 23,032,241[49] Shareholding Structure - The major shareholder, Opus Platinum Growth Fund, holds 18,000,000 shares, representing 7.82% of the issued share capital[54] - Mr. Lai Shu-Hsun indirectly owns approximately 40.03% of the issued share capital of Opus Platinum Growth Fund[54] Events After Reporting Period - No significant events occurred after June 30, 2024, up to the report date[50]
隆成金融(01225) - 2024 - 中期财报