大禹金融(01073) - 2025 - 中期业绩

Interim Results Announcement Condensed Consolidated Statement of Profit or Loss and Other Comprehensive Income The Group's net profit for the six months ended June 30, 2025, significantly decreased by 42.80% to 14,764 thousand HKD, with basic earnings per share falling to 0.65 HK cents, driven by reduced net other financial income and increased expenses Key Data from Condensed Consolidated Statement of Profit or Loss and Other Comprehensive Income | Indicator | 2025 (thousand HKD) | 2024 (thousand HKD) | Change (thousand HKD) | Change (%) | | :--- | :--- | :--- | :--- | :--- | | Service income | 22,417 | 24,057 | (1,640) | -6.82% | | Interest income | 872 | 775 | 97 | 12.52% | | Total income | 23,289 | 24,832 | (1,543) | -6.21% | | Net other financial income | 10,744 | 18,235 | (7,491) | -41.08% | | Employee benefit expenses | (9,091) | (8,293) | (798) | 9.62% | | Administrative and other expenses | (9,029) | (7,867) | (1,162) | 14.77% | | Profit before tax | 15,988 | 26,941 | (10,953) | -40.65% | | Profit for the period attributable to owners of the Company | 14,764 | 25,813 | (11,049) | -42.80% | | Basic earnings per share (HK cents) | 0.65 | 1.24 | (0.59) | -47.58% | - Total comprehensive income attributable to owners of the Company for the period decreased from 25,813 thousand HKD in 2024 to 16,427 thousand HKD in 2025[5] Condensed Consolidated Statement of Financial Position As of June 30, 2025, the Group's total assets grew to 938,463 thousand HKD, with net current assets at 258,927 thousand HKD and net assets at 507,757 thousand HKD, while current liabilities rose significantly due to increased trade and other payables Key Data from Condensed Consolidated Statement of Financial Position | Indicator | June 30, 2025 (thousand HKD) | December 31, 2024 (thousand HKD) | Change (thousand HKD) | Change (%) | | :--- | :--- | :--- | :--- | :--- | | Non-current assets | 259,681 | 260,359 | (678) | -0.26% | | Current assets | 678,782 | 496,794 | 181,988 | 36.63% | | Current liabilities | 419,855 | 246,471 | 173,384 | 70.35% | | Net current assets | 258,927 | 250,323 | 8,604 | 3.44% | | Total assets less current liabilities | 518,608 | 510,682 | 7,926 | 1.55% | | Non-current liabilities | 10,851 | 9,326 | 1,525 | 16.35% | | Net assets | 507,757 | 501,356 | 6,401 | 1.28% | | Total equity | 507,757 | 501,356 | 6,401 | 1.28% | - Client trust bank balances significantly increased by 76.01% from 230,741 thousand HKD as of December 31, 2024, to 406,127 thousand HKD as of June 30, 2025[6] - Trade and other payables and accrued expenses significantly increased by 69.52% from 242,248 thousand HKD as of December 31, 2024, to 410,661 thousand HKD as of June 30, 2025[6] Notes to the Condensed Consolidated Financial Statements Basis of Preparation and Significant Accounting Policies These interim condensed consolidated financial statements adhere to HKEX Listing Rules and HKAS 34, incorporating revised HKFRS effective January 1, 2025, without material impact on the Group's financial position - Financial statements are prepared in compliance with the HKEX Listing Rules and Hong Kong Accounting Standard 34[8] - The adoption of revised Hong Kong Financial Reporting Standards, effective January 1, 2025, has no material impact on the Group's interim condensed consolidated financial statements[10][11] Revenue Disaggregation The Group's total revenue for the 2025 interim period decreased by 6.21% to 23,289 thousand HKD, with growth in asset management and securities services offset by significant declines in advisory and referral fees Revenue Disaggregation Details | Service Category | 2025 (thousand HKD) | 2024 (thousand HKD) | Change (thousand HKD) | Change (%) | | :--- | :--- | :--- | :--- | :--- | | Advisory and related services | 7,163 | 11,034 | (3,871) | -35.08% | | Asset management services | 9,840 | 7,722 | 2,118 | 27.43% | | Securities and related services | 4,999 | 1,119 | 3,880 | 346.74% | | Referral fees | – | 3,746 | (3,746) | -100.00% | | Miscellaneous income | 415 | 436 | (21) | -4.82% | | Total service income | 22,417 | 24,057 | (1,640) | -6.82% | | Loan interest income | 872 | 775 | 97 | 12.52% | | Total revenue | 23,289 | 24,832 | (1,543) | -6.21% | - Regarding the timing of service revenue recognition, revenue transferred over time increased from 13,712 thousand HKD in 2024 to 17,350 thousand HKD in 2025, while revenue recognized at a point in time decreased from 10,345 thousand HKD to 5,067 thousand HKD[14] Transaction Price Allocated to Remaining Performance Obligations As of June 30, 2025, the Group's remaining performance obligations totaled 5,977 thousand HKD, a 57.62% decrease from December 31, 2024, with most revenue expected within 6-12 months Timing of Remaining Performance Obligations | Expected Fulfillment Period | June 30, 2025 (thousand HKD) | December 31, 2024 (thousand HKD) | Change (thousand HKD) | Change (%) | | :--- | :--- | :--- | :--- | :--- | | Year ending December 31, 2025 | 5,410 | 14,102 | (8,692) | -61.63% | | Year ending December 31, 2026 | 567 | – | 567 | N/A | | Total | 5,977 | 14,102 | (8,125) | -57.62% | - The amount of remaining performance obligations excludes a significant conditional advisory transaction due to uncertainty in its amount and the expectation that it will not be resolved in the short term[16] Segment Information The Group operates four segments: corporate finance, asset management, securities, and money lending; in 2025, corporate finance and investment segments saw significant declines in revenue and profit, while asset management and securities segments experienced revenue growth Segment External Revenue and Profit Before Tax | Segment | 2025 External Revenue (thousand HKD) | 2024 External Revenue (thousand HKD) | Change (thousand HKD) | Change (%) | | :--- | :--- | :--- | :--- | :--- | | Corporate finance services, investments and others | 7,163 | 11,034 | (3,871) | -35.08% | | Asset management services | 10,255 | 8,158 | 2,097 | 25.70% | | Securities and related services | 4,999 | 4,865 | 134 | 2.75% | | Money lending business | 872 | 775 | 97 | 12.52% | | Total | 23,289 | 24,832 | (1,543) | -6.21% | | Segment | 2025 Profit Before Tax (thousand HKD) | 2024 Profit Before Tax (thousand HKD) | Change (thousand HKD) | Change (%) | | :--- | :--- | :--- | :--- | :--- | | Corporate finance services, investments and others | 8,699 | 22,209 | (13,510) | -60.83% | | Asset management services | 5,919 | 4,420 | 1,499 | 33.91% | | Securities and related services | 1,109 | 518 | 591 | 114.09% | | Money lending business | 261 | (206) | 467 | N/A | | Total | 15,988 | 26,941 | (10,953) | -40.65% | Segment Assets and Liabilities | Segment | June 30, 2025 Total Assets (thousand HKD) | December 31, 2024 Total Assets (thousand HKD) | Change (thousand HKD) | Change (%) | | :--- | :--- | :--- | :--- | :--- | | Corporate finance services, investments and others | 439,664 | 439,936 | (272) | -0.06% | | Asset management services | 43,453 | 43,531 | (78) | -0.18% | | Securities and related services | 426,215 | 244,335 | 181,880 | 74.44% | | Money lending business | 29,131 | 29,351 | (220) | -0.75% | | Total | 938,463 | 757,153 | 181,310 | 23.95% | | Segment | June 30, 2025 Total Liabilities (thousand HKD) | December 31, 2024 Total Liabilities (thousand HKD) | Change (thousand HKD) | Change (%) | | :--- | :--- | :--- | :--- | :--- | | Corporate finance services, investments and others | 14,010 | 12,460 | 1,550 | 12.44% | | Asset management services | 1,095 | 243 | 852 | 350.62% | | Securities and related services | 411,666 | 231,118 | 180,548 | 78.12% | | Money lending business | 117 | 318 | (201) | -63.21% | | Total | 426,888 | 244,139 | 182,749 | 74.86% | Revenue from Major Customers In 2025, Customer A's revenue grew to 9,018 thousand HKD from asset management and securities services, while major customers B, C, and D from 2024 generated no revenue Revenue from Major Customers Details | Customer | 2025 (thousand HKD) | 2024 (thousand HKD) | Change (thousand HKD) | Change (%) | | :--- | :--- | :--- | :--- | :--- | | Customer A | 9,018 | 8,064 | 954 | 11.83% | | Customer B | – | 5,000 | (5,000) | -100.00% | | Customer C | – | 3,746 | (3,746) | -100.00% | | Customer D | – | 3,000 | (3,000) | -100.00% | - Revenue from Customer A is attributable to asset management services and securities and related services[20] - Revenue from Customers B and D in 2024 was attributable to corporate finance services, investments, and other, while revenue from Customer C was attributable to securities and related services[21][22] Loan Concentration to Major Customers The Group's credit risk concentration increased, with the largest customer and top five customers' share of mortgage and term loans in the money lending segment rising - The proportion of mortgage and term loans from the largest customer increased from 52.3% as of December 31, 2024, to 54.7% as of June 30, 2025[23] - The proportion of mortgage and term loans from the top five customers increased from 81.9% as of December 31, 2024, to 83.5% as of June 30, 2025[23] Geographical Information The Group's operations and non-current assets, excluding mortgage loans and FVTPL financial assets, are primarily concentrated in Hong Kong - The Group's business operations are primarily conducted in Hong Kong[24] - All of the Group's non-current assets (excluding mortgage loans and financial assets at fair value through profit or loss) are located in Hong Kong[24] Items Deducted From / (Credited to) Profit Before Tax In 2025, intangible asset amortization was stable, while depreciation and impairment reversals decreased, and employee benefits and lease liability interest expenses increased Items Deducted From / (Credited to) Profit Before Tax | Item | 2025 (thousand HKD) | 2024 (thousand HKD) | Change (thousand HKD) | Change (%) | | :--- | :--- | :--- | :--- | :--- | | Amortisation of intangible assets | 1,726 | 1,726 | 0 | 0.00% | | Depreciation of owned property, plant and equipment | 30 | 50 | (20) | -40.00% | | Depreciation of right-of-use assets | 1,447 | 1,551 | (104) | -6.71% | | Employee benefit expenses | 9,091 | 8,293 | 798 | 9.62% | | Interest on lease liabilities | 104 | 67 | 37 | 55.22% | | Reversal of impairment losses on financial assets | (179) | (100) | (79) | 79.00% | Income Tax Expense In 2025, the Group's income tax expense increased by 8.51% to 1,224 thousand HKD, mainly due to higher Hong Kong profits tax, which applies a 16.5% rate with an 8.25% two-tiered rate for some profits Income Tax Expense Details | Item | 2025 (thousand HKD) | 2024 (thousand HKD) | Change (thousand HKD) | Change (%) | | :--- | :--- | :--- | :--- | :--- | | Hong Kong profits tax | (1,509) | (1,413) | (96) | 6.79% | | Deferred tax | 285 | 285 | 0 | 0.00% | | Income tax expense | (1,224) | (1,128) | (96) | 8.51% | - Hong Kong profits tax is provided at an estimated assessable profit rate of 16.5%, with one subsidiary's first 2,000,000 HKD of assessable profits taxed at 8.25%[26] Earnings Per Share In 2025, basic and diluted EPS attributable to owners decreased by 47.58% to 0.65 HK cents, driven by lower profit and an increased weighted average number of ordinary shares Earnings Per Share Calculation Data | Indicator | 2025 (thousand HKD/share) | 2024 (thousand HKD/share) | Change | Change (%) | | :--- | :--- | :--- | :--- | :--- | | Profit for the period attributable to owners of the Company | 14,764 | 25,813 | (11,049) | -42.80% | | Weighted average number of ordinary shares outstanding | 2,278,660,380 | 2,073,580,946 | 205,079,434 | 9.90% | | Basic and diluted earnings per share (HK cents) | 0.65 | 1.24 | (0.59) | -47.58% | - For the six months ended June 30, 2025, and 2024, there were no outstanding potential ordinary shares, thus diluted earnings per share were the same as basic earnings per share[28] Dividends The Board resolved not to declare a 2025 interim dividend; however, 2024 final and special dividends totaling 10,026 thousand HKD were paid during the 2025 interim period - The Board resolved not to declare an interim dividend for 2025 (2024: nil)[29] - A final dividend of 0.28 HK cents per share and a special dividend of 0.16 HK cents per share for 2024, totaling 10,026 thousand HKD, were paid during the 2025 interim period[29] Goodwill As of June 30, 2025, the Group's goodwill carrying amount remained stable at 108,788 thousand HKD, unchanged from December 31, 2024 Goodwill Carrying Amount | Indicator | June 30, 2025 (thousand HKD) | December 31, 2024 (thousand HKD) | Change (thousand HKD) | Change (%) | | :--- | :--- | :--- | :--- | :--- | | Cost | 302,965 | 302,965 | 0 | 0.00% | | Accumulated impairment | 194,177 | 194,177 | 0 | 0.00% | | Carrying amount | 108,788 | 108,788 | 0 | 0.00% | Intangible Assets As of June 30, 2025, the Group's intangible assets decreased by 2.92% to 57,359 thousand HKD, mainly due to trademark name amortization Intangible Assets Carrying Amount Details | Intangible Asset Category | June 30, 2025 Carrying Amount (thousand HKD) | December 31, 2024 Carrying Amount (thousand HKD) | Change (thousand HKD) | Change (%) | | :--- | :--- | :--- | :--- | :--- | | Investment management agreements | – | – | 0 | N/A | | Inventories | – | – | 0 | N/A | | Trademark names | 48,619 | 50,345 | (1,726) | -3.43% | | SFC licenses | 3,740 | 3,740 | 0 | 0.00% | | Club memberships | 5,000 | 5,000 | 0 | 0.00% | | Total | 57,359 | 59,085 | (1,726) | -2.92% | - In the 2025 interim period, intangible asset amortization was 1,726 thousand HKD, primarily from trademark names[31] Mortgage Loans As of June 30, 2025, total secured mortgage loans decreased by 9.64% to 7,459 thousand HKD, with all loans current and no loss allowance recognized Mortgage Loans Details | Indicator | June 30, 2025 (thousand HKD) | December 31, 2024 (thousand HKD) | Change (thousand HKD) | Change (%) | | :--- | :--- | :--- | :--- | :--- | | Total secured mortgage loans | 7,459 | 8,255 | (796) | -9.64% | | Non-current assets | 5,923 | 6,691 | (768) | -11.48% | | Current assets | 1,536 | 1,564 | (28) | -1.79% | - As of June 30, 2025, and December 31, 2024, there were no overdue mortgage loans[32] - The Group has not recognized any loss allowance for mortgage loans secured by collateral, as the realizable value of the collateral is sufficient to cover the loan amounts[32] Term Loans As of June 30, 2025, net term loans increased by 4.24% to 9,024 thousand HKD, driven by higher gross term loans and a corresponding rise in impairment allowance Term Loans Details | Indicator | June 30, 2025 (thousand HKD) | December 31, 2024 (thousand HKD) | Change (thousand HKD) | Change (%) | | :--- | :--- | :--- | :--- | :--- | | Gross term loans | 9,554 | 9,047 | 507 | 5.60% | | Less: Impairment allowance | (530) | (390) | (140) | 35.90% | | Net term loans | 9,024 | 8,657 | 367 | 4.24% | Trade and Other Receivables As of June 30, 2025, total trade and other receivables surged by 109.88% to 7,245 thousand HKD, primarily driven by significant growth in trade receivables Trade and Other Receivables Details | Item | June 30, 2025 (thousand HKD) | December 31, 2024 (thousand HKD) | Change (thousand HKD) | Change (%) | | :--- | :--- | :--- | :--- | :--- | | Trade receivables | 5,601 | 1,452 | 4,149 | 285.74% | | Other receivables | 482 | 260 | 222 | 85.38% | | Prepayments | 274 | 792 | (518) | -65.40% | | Rental and utilities deposits | 888 | 948 | (60) | -6.33% | | Total | 7,245 | 3,452 | 3,793 | 109.88% | Ageing Analysis of Trade Receivables | Ageing Analysis (Trade Receivables) | June 30, 2025 (thousand HKD) | December 31, 2024 (thousand HKD) | Change (thousand HKD) | Change (%) | | :--- | :--- | :--- | :--- | :--- | | Within 30 days | 5,351 | 1,452 | 3,899 | 268.52% | | Over 30 days but within 60 days | 250 | – | 250 | N/A | | Total | 5,601 | 1,452 | 4,149 | 285.74% | Client Trust Bank Balances Client monies are held in segregated bank accounts, classified as current assets and corresponding trade payables, and are regulated by the Securities and Futures Ordinance - Client monies are held in segregated bank accounts and classified as client trust bank balances under current assets[36] - The Group is responsible for any loss or misappropriation of client monies[36] - Balances in segregated bank accounts are subject to and regulated by the Securities and Futures (Client Money) Rules under the Securities and Futures Ordinance[36] Trade and Other Payables As of June 30, 2025, total trade and other payables surged by 69.52% to 410,661 thousand HKD, mainly driven by a significant increase in client trade payables Trade and Other Payables Details | Item | June 30, 2025 (thousand HKD) | December 31, 2024 (thousand HKD) | Change (thousand HKD) | Change (%) | | :--- | :--- | :--- | :--- | :--- | | Client trade payables | 408,651 | 228,498 | 180,153 | 78.85% | | Hong Kong Securities Clearing Company Limited | – | 2,228 | (2,228) | -100.00% | | Other payables and accrued expenses | 2,010 | 11,522 | (9,512) | -82.55% | | Total | 410,661 | 242,248 | 168,413 | 69.52% | - As of June 30, 2025, approximately 406,127 thousand HKD (December 31, 2024: approximately 230,741 thousand HKD) of trade payables represent amounts payable to clients for segregated bank account balances received and held on behalf of clients in the course of conducting regulated business[37] Business Review Corporate Finance Advisory Yu Ming provides corporate finance advisory, placing, and underwriting services; in 2025, revenue from these services decreased to approximately 7,200 thousand HKD - Yu Ming provides corporate finance advisory services, including financial advisory, compliance advisory, placing agent, and underwriting services[38][40][47] - In the 2025 interim period, revenue from corporate finance advisory and related services was approximately 7,200 thousand HKD, a decrease from 11,000 thousand HKD in 2024[41] Asset Management Yu Ming provides asset management services to New Work Investment Limited and other funds, with revenue growing to approximately 10,200 thousand HKD in 2025 - Yu Ming provides asset management services to New Work Investment Limited and other investment funds[42] - In the 2025 interim period, revenue from asset management services was approximately 10,200 thousand HKD, an increase from 8,100 thousand HKD in 2024[42] Investments YMHD Fund primarily invests in securities, generating approximately 6,600 thousand HKD in net other financial income in 2025, a significant increase from 2024 - YMHD Fund primarily engages in securities investments[43] - In the 2025 interim period, net other financial income from securities investments by YMHD Fund was approximately 6,600 thousand HKD, an increase from 2,300 thousand HKD in 2024[43] Securities Brokerage Man Kee Securities, engaged in brokerage, placing, and investments, maintained stable operations with slight profit and revenue growth to approximately 5,000 thousand HKD in 2025 - Man Kee Securities primarily engages in securities brokerage, securities placing, and securities investments[44] - Man Kee Securities maintained stable operations during the interim period, despite a slight profit[45] - In the 2025 interim period, revenue from securities and related services was approximately 5,000 thousand HKD, a slight increase from 4,900 thousand HKD in 2024[46] Money Lending Business Man Kee Finance conducts money lending in Hong Kong, offering various loans; it maintains a cautious approach with enhanced credit risk management, and revenue slightly increased to approximately 900 thousand HKD in 2025 - Man Kee Finance primarily conducts money lending business in Hong Kong, providing unsecured loans (term loans and personal loans) and secured loans (property mortgages and share mortgages)[48] - Given the unstable economic environment, Man Kee Finance maintains a cautious approach, strengthening credit risk management and adjusting interest rates and loan-to-value ratios as appropriate[48] - In the 2025 interim period, revenue from money lending and related businesses was approximately 900 thousand HKD, an increase from 800 thousand HKD in 2024[49] Financial Review Overall Results In 2025, the Group's net profit significantly decreased by 11,000 thousand HKD to 14,800 thousand HKD, with basic EPS falling to 0.65 HK cents, mainly due to reduced corporate finance and fixed income investment income - In the 2025 interim period, the Group recorded a net profit of approximately 14,800 thousand HKD, a decrease of approximately 11,000 thousand HKD from 2024[51] - The decrease in profit was primarily due to reduced corporate finance revenue and investment income from fixed income investments[51] - Basic earnings per share were 0.65 HK cents (2024: 1.24 HK cents)[52] Revenue and Financial Resources In 2025, the Group's revenue slightly decreased to 23,300 thousand HKD; cash and cash equivalents rose to 114,000 thousand HKD, but the current ratio declined from 201.6% to 161.7% Key Revenue and Financial Resources Data | Indicator | June 30, 2025 (thousand HKD) | December 31, 2024 (thousand HKD) | Change (thousand HKD) | Change (%) | | :--- | :--- | :--- | :--- | :--- | | Cash and cash equivalents | 114,000 | 98,600 | 15,400 | 15.62% | | Current ratio | 161.7% | 201.6% | -39.9% | -19.79% | - In the 2025 interim period, the Group's revenue was approximately 23,300 thousand HKD (2024: approximately 24,800 thousand HKD)[53] - During the interim period, the Group had no significant foreign exchange fluctuation risks or related hedges[54] Debts and Bank Facilities As of June 30, 2025, the Group had no bank or other borrowings, maintaining a 0% capital-to-debt ratio, reflecting a robust financial position - As of June 30, 2025, the Group had no bank and other borrowings[55] - As of December 31, 2024, the Group had no bank and other borrowings, except for an unsecured bank overdraft of 100 thousand HKD[56] - The Group's capital-to-debt ratio was 0%[56] Assets and Liabilities As of June 30, 2025, the Group's total assets, total liabilities, and net assets all increased to approximately 938,500 thousand HKD, 430,700 thousand HKD, and 507,800 thousand HKD, respectively Total Assets and Liabilities | Indicator | June 30, 2025 (thousand HKD) | December 31, 2024 (thousand HKD) | Change (thousand HKD) | Change (%) | | :--- | :--- | :--- | :--- | :--- | | Total assets | 938,500 | 757,200 | 181,300 | 23.94% | | Total liabilities | 430,700 | 255,800 | 174,900 | 68.37% | | Net assets | 507,800 | 501,400 | 6,400 | 1.28% | Capital Structure As of June 30, 2025, and December 31, 2024, the Group's share capital remained unchanged - As of June 30, 2025, and December 31, 2024, there was no change in share capital[58] Commitments and Pledged Assets As of June 30, 2025, and December 31, 2024, the Group had no outstanding contracted capital commitments or pledged assets - As of June 30, 2025, and December 31, 2024, the Group had no outstanding contracted capital commitments[59] - As of June 30, 2025, and December 31, 2024, the Group had no pledged assets[60] Material Investments, Acquisitions and Disposals The Group holds perpetual securities from Standard Chartered and Bank of East Asia as material investments, which generated unrealized gains and coupon income in 2025, and are intended for continued holding due to attractive yields - The Group holds perpetual securities issued by Standard Chartered PLC and The Bank of East Asia, Limited as material investments[61][69] - The Group intends to hold these investments due to their attractive yields[68][74] Standard Chartered PLC Perpetual Securities As of June 30, 2025, the Group held 7,000,000 USD Standard Chartered securities (fair value 51,400 thousand HKD, 5.5% of total assets), recognizing 1,700 thousand HKD unrealized gains and 1,200 thousand HKD coupon income, while Standard Chartered's operating income grew 10% but credit impairment increased Standard Chartered Securities Investment Data | Indicator | June 30, 2025 (thousand HKD) | % of Total Assets | | :--- | :--- | :--- | | Total cost of Standard Chartered securities | 47,300 | N/A | | Fair value of Standard Chartered securities | 51,400 | 5.5% | - Unrealized gains of approximately 1,700 thousand HKD and coupon income of approximately 1,200 thousand HKD were recognized from Standard Chartered securities during the interim period[62] - Standard Chartered Group's operating income increased by 10% to 10,900,000 thousand USD, driven by growth in wealth solutions, corporate and institutional banking, and financial markets businesses[63] - Credit impairment charges increased by 87,000 thousand USD to 336,000 thousand USD, primarily due to higher charges in wealth management and retail banking businesses[64] The Bank of East Asia, Limited Perpetual Securities As of June 30, 2025, the Group held 6,000,000 USD Bank of East Asia securities (fair value 47,500 thousand HKD, 5.1% of total assets), recognizing 900 thousand HKD unrealized gains and 1,400 thousand HKD coupon income, while Bank of East Asia's profit grew 14.1% despite reduced net interest income Bank of East Asia Securities Investment Data | Indicator | June 30, 2025 (thousand HKD) | % of Total Assets | | :--- | :--- | :--- | | Total cost of Bank of East Asia securities | 37,200 | N/A | | Fair value of Bank of East Asia securities | 47,500 | 5.1% | - Unrealized gains of approximately 900 thousand HKD and coupon income of approximately 1,400 thousand HKD were recognized from Bank of East Asia securities during the interim period[69] - Profit attributable to owners of Bank of East Asia was 2,407,000 thousand HKD, an increase of 14.1% from the same period in 2024[70] - Net interest income decreased by 10.7% to 7,344,000 thousand HKD, with net interest margin narrowing by 22 basis points to 1.88%, primarily impacted by falling interest rates[70] Other Important Matters Contingent Liabilities As of the announcement date, June 30, 2025, and December 31, 2024, the Board was unaware of any significant contingent liabilities - The Board was not aware of any significant contingent liabilities[76] Events After the Reporting Period The Company proposes a rights issue of up to 1,139,330,190 new shares at 0.12 HKD each, aiming to raise 136,700 thousand HKD (before expenses) for margin financing and general working capital - The Company proposes to issue up to 1,139,330,190 new shares via a rights issue at a subscription price of 0.12 HKD per share to raise up to approximately 136,700 thousand HKD[77] - Net proceeds from the rights issue, approximately 116,000 thousand HKD, will be used for margin financing business, and 20,000 thousand HKD for general working capital[77] - The results of the rights issue are expected to be announced on September 8, 2025[77] Prospects The Group anticipates competitive corporate finance advisory, stable asset management income, a profitable H2 2025 launch for margin financing, and a cautious approach to money lending - Corporate finance advisory business faces intense competition, with Yu Ming focusing on contentious corporate finance transactions[80] - Asset management business provides a long-term stable revenue source, integrating resources from Yu Ming and Man Kee Securities to offer more comprehensive services[80] - Margin financing business will launch in the second half of 2025, expected to be profitable and complementary to securities brokerage business[80] - Given the local economic slowdown, the money lending business will adopt a cautious approach[80] Corporate Governance The Company has an Audit Committee and complied with the Corporate Governance Code (Appendix C1) and Model Code for Securities Transactions by Directors (Appendix C3) during the interim period - The Company has established an Audit Committee and reviewed the 2025 interim results report[81] - The Company complied with all applicable code provisions of the Corporate Governance Code set out in Appendix C1 of the Listing Rules during the interim period[82] - All Directors complied with the Model Code for Securities Transactions by Directors set out in Appendix C3 of the Listing Rules during the interim period[83] Audit Committee The Audit Committee reviewed financial reporting and the 2025 interim results, relying on external auditor's review and management's statements - The Audit Committee reviewed financial reporting matters and the 2025 interim results report, including the interim condensed consolidated financial statements[81] - The Audit Committee relied on the review results by the external auditor in accordance with Hong Kong Standard on Review Engagements 2410 and management's representations[81] Compliance with Code Provisions of Corporate Governance Code The Company complied with all applicable code provisions and principles of the Corporate Governance Code (Appendix C1 of Listing Rules) during the interim period - The Company complied with all applicable code provisions of the Corporate Governance Code set out in Appendix C1 of the Listing Rules and applied the relevant principles during the interim period[82] Model Code for Securities Transactions by Directors The Company adopted and confirmed compliance by all Directors with the Model Code for Securities Transactions (Appendix C3 of Listing Rules) during the interim period - The Company adopted the Model Code set out in Appendix C3 of the Listing Rules as the code of conduct for Directors' securities transactions[83] - Following enquiry, the Company confirmed that all Directors complied with the requirements set out in the Model Code during the interim period[83] Purchase, Sale or Redemption of the Company's Listed Securities Neither the Company nor its subsidiaries purchased, sold, or redeemed any listed securities or transferred treasury shares during the interim period - Neither the Company nor any of its subsidiaries purchased, sold, or redeemed any of the Company's listed securities during the interim period[84] - Neither the Company nor any of its subsidiaries sold or transferred treasury shares as defined by the Listing Rules during the interim period[84]