Financial Performance - For the six months ended June 30, 2024, the group recorded a revenue decrease of 61% to HKD 19,888,000, compared to HKD 51,267,000 for the same period in 2023[7]. - The group reported a loss attributable to owners of the company of HKD 1,926,000, down from a loss of HKD 11,996,000 in the previous year[7]. - Basic loss per share for the interim period was HKD 0.01, compared to HKD 0.06 for the same period in 2023[7]. - Revenue from lending activities decreased to HKD 14,662,000, down from HKD 46,587,000 in the previous year[23]. - Interest income decreased to HKD 19,431 thousand from HKD 50,284 thousand, representing a decline of 61.4% year-over-year[31]. - The total comprehensive loss for the period was HKD 1,582 thousand, significantly lower than HKD 14,759 thousand in the previous year[33]. - For the six months ended June 30, 2024, the company reported a pre-tax loss of HKD 859,000, significantly improved from a loss of HKD 22,312,000 in the same period of 2023, representing a reduction of approximately 96.1%[34]. - The company reported a loss of HKD 11,996,000 for the six months ended June 30, 2024, compared to a loss of HKD 1,926,000 for the same period in 2023, indicating a significant increase in losses[55]. Securities Investments - The group's securities investments included a portfolio valued at HKD 9,258,000 as of June 30, 2024, down from HKD 9,912,000 as of December 31, 2023[8]. - The group recorded an unrealized loss of HKD 548,000 on its securities investments during the period, compared to an unrealized loss of HKD 12,166,000 in the previous year[8]. - The financial assets measured at fair value through profit or loss recorded a loss of HKD 654,000 during the first half of 2024, compared to a loss of HKD 3,809,000 in the same period of 2023[9]. - The group has not recorded any income from its securities investments during the interim period[8]. - The group's securities brokerage business saw a 12% increase in total revenue to HKD 5,226,000 for the first half of 2024, compared to HKD 4,680,000 in the same period last year[22]. - Interest income from margin financing increased by 29% to HKD 4,769,000, driven by an increase in the average amount of margin loans extended to clients[22]. Lending Business - The group's lending business recorded a revenue decrease of 69% to HKD 14,662,000 in the first half of 2024, compared to HKD 46,587,000 in the same period of 2023[13]. - The profit from the lending business increased by 235% to HKD 15,025,000 in the first half of 2024, up from HKD 4,489,000 in the previous year[13]. - The expected credit loss provision for loans decreased by 93% to HKD 2,651,000 in the first half of 2024, compared to HKD 40,614,000 in the same period of 2023[13]. - The total loan portfolio of the group increased by 5% to HKD 1,316,940,000 as of June 30, 2024, compared to HKD 1,253,368,000 at the end of 2023[15]. - The net value of the loan portfolio, after deducting impairment provisions, rose to HKD 854,277,000 from HKD 767,232,000 at the end of 2023[15]. - 99% of the loan portfolio is secured by collateral, with the remaining 1% being unsecured, consistent with the previous period[15]. Impairment and Provisions - The impairment provision balance decreased by 5% or HKD 23,473,000 to HKD 462,663,000 as of June 30, 2024, from HKD 486,136,000 at the end of 2023[14]. - The impairment loss provision for receivables decreased significantly to HKD 2,651,000 from HKD 48,683,000 year-on-year[23]. - The group made an impairment provision of HKD 2,651,000 during the interim period, significantly lower than HKD 40,614,000 for the same period last year[61]. - The total amount of loans that were fully impaired and written off was HKD 30,605,000[64]. Economic Environment - The overall economic recovery in Hong Kong is constrained by high interest rates and ongoing geopolitical tensions[7]. - Management maintains a cautiously optimistic outlook for the medium to long-term business prospects, despite geopolitical tensions and global interest rate uncertainties[28]. Assets and Liabilities - As of June 30, 2024, the group held current assets of HKD 1,986,800,000, down from HKD 2,094,897,000 as of December 31, 2023[24]. - The group's current ratio improved to approximately 55.8 from 51.3 as of December 31, 2023, indicating strong liquidity[24]. - The equity attributable to owners of the company was HKD 2,210,146,000, slightly down from HKD 2,211,728,000 as of December 31, 2023, due to losses recognized during the period[24]. - The total liabilities decreased to HKD 35,614,000 from HKD 40,818,000, a reduction of 12.7%[32]. - The company's total liabilities increased, impacting its financial position, with a focus on managing cash flow and operational efficiency moving forward[34]. Employee Costs - The group has 51 employees as of June 30, 2024, with total employee costs amounting to HKD 20,332,000, up from HKD 15,522,000 in the previous year[27]. - Employee costs increased to HKD 20,332 thousand, up 30.5% from HKD 15,522 thousand in the previous year[31]. Corporate Governance - The company complied with all applicable code provisions of the Corporate Governance Code during the six months ended June 30, 2024[89]. - The company has adopted a standard code of conduct for securities trading by its directors, confirming compliance for the six months ending June 30, 2024[90].
中策资本控股(00235) - 2024 - 中期财报