Report Overview Summary The Group reported revenue of HKD 4.50 million and profit of HKD 7.03 million for the six months ended June 30, 2025, with basic earnings per share of 0.09 HK cents, and no dividend recommended Summary of Financial Performance | Metric | Amount (HKD thousand) | | :--- | :--- | | Revenue | 4,501 | | Profit | 7,027 | | Profit attributable to owners of the Company | 6,975 | | Basic earnings per share | 0.09 HK cents | - The Directors do not recommend the payment of a dividend for the six months ended June 30, 20257 Characteristics of GEM and Disclaimer This section highlights the GEM market's investment risks for small and medium-sized companies and clarifies the Stock Exchange's non-responsibility for the announcement's content - The GEM market is positioned as a listing platform for small and medium-sized companies, carrying higher investment risks, and securities may be subject to significant market volatility2 - Hong Kong Exchanges and Clearing Limited and the Stock Exchange take no responsibility for the contents of this announcement, and the Directors of the Company jointly and severally accept full responsibility for the information2 Interim Results (Unaudited) Condensed Consolidated Statement of Profit or Loss and Other Comprehensive Income The Group achieved a profit for the six months ended June 30, 2025, reversing a prior-year loss, mainly driven by the reversal of impairment loss on car purchase prepayments despite reduced revenue Condensed Consolidated Statement of Profit or Loss and Other Comprehensive Income (For the six months ended June 30) | Metric | 2025 (HKD thousand) | 2024 (HKD thousand) | | :--- | :--- | :--- | | Revenue | 4,501 | 20,343 | | Other income and gains/(losses) – net | 34 | 114 | | Reversal of impairment loss on trade receivables | 779 | – | | Reversal of impairment loss on prepayments for car purchases | 18,642 | – | | Profit/(loss) before income tax | 6,916 | (11,311) | | Profit/(loss) for the period from continuing operations | 7,027 | (11,282) | | Loss for the period from discontinued operations | – | (1,700) | | Profit/(loss) for the period | 7,027 | (12,982) | | Profit/(loss) attributable to owners of the Company | 6,975 | (12,973) | | Basic earnings/(loss) per share | 0.09 HK cents | (0.17) HK cents | - Profit for the period was primarily attributable to the reversal of impairment loss on prepayments for car purchases of approximately HKD 18,642 thousand8 Condensed Consolidated Statement of Financial Position As of June 30, 2025, the Group's total assets and net assets increased, with an improved net current liabilities position indicating reduced liquidity pressure Condensed Consolidated Statement of Financial Position (As at June 30, 2025) | Metric | June 30, 2025 (HKD thousand) | December 31, 2024 (HKD thousand) | | :--- | :--- | :--- | | Non-current assets | 46,750 | 67,430 | | Current assets | 90,507 | 50,320 | | Total assets | 137,257 | 117,750 | | Current liabilities | 112,567 | 100,963 | | Net current liabilities | (22,060) | (50,643) | | Net assets | 22,762 | 14,770 | | Equity attributable to owners of the Company | 22,812 | 14,870 | - Total current liabilities exceeded total current assets by approximately HKD 22,060 thousand, an improvement from HKD 50,643 thousand at the end of 202411 Condensed Consolidated Statement of Changes in Equity The Group's equity attributable to owners increased from HKD 14,870 thousand to HKD 22,812 thousand for the six months ended June 30, 2025, reflecting period profit and other comprehensive income Condensed Consolidated Statement of Changes in Equity (For the six months ended June 30) | Item | June 30, 2025 (HKD thousand) | January 1, 2024 (HKD thousand) | | :--- | :--- | :--- | | Balance at beginning of period/year | 14,870 | 118,052 | | Profit/(loss) for the period | 6,975 | (12,973) | | Other comprehensive income/(loss) for the period | 967 | (3,076) | | Total comprehensive income/(loss) for the period | 7,942 | (16,049) | | Balance at end of period/year | 22,812 | 102,003 | Condensed Consolidated Statement of Cash Flows For the six months ended June 30, 2025, the Group experienced net cash outflows across operating, investing, and financing activities, leading to a decrease in cash and cash equivalents Condensed Consolidated Statement of Cash Flows (For the six months ended June 30) | Item | 2025 (HKD thousand) | 2024 (HKD thousand) | | :--- | :--- | :--- | | Net cash (used in)/generated from operating activities | (1,010) | 7,728 | | Net cash used in investing activities | (10) | (23) | | Net cash used in financing activities | (3,000) | (1,713) | | Net (decrease)/increase in cash and cash equivalents | (4,020) | 5,992 | | Cash and cash equivalents at beginning of period | 13,532 | 19,554 | | Cash and cash equivalents at end of period | 9,512 | 25,546 | Notes to the Financial Statements General Information The Company, incorporated in the Cayman Islands, primarily engages in car trading and securities trading, having terminated its Hong Kong brokerage services and changed its functional currency to RMB on July 9, 2024 - The Group primarily engages in car trading, providing agency services and procurement of accessories in China, and trading of listed securities in Hong Kong17 - The Hong Kong brokerage and securities margin financing services business was terminated on July 9, 2024, and the functional currency was changed from HKD to RMB17 - Mr. Wang Jiawei, Chairman and Executive Director of the Company, is the ultimate controlling party16 Basis of Preparation The unaudited condensed consolidated financial statements are prepared under HKAS 34 on a going concern basis, with the Board implementing plans to ensure sufficient working capital despite current liabilities exceeding assets - The financial statements are prepared in accordance with Hong Kong Accounting Standard 34 Interim Financial Reporting issued by the Hong Kong Institute of Certified Public Accountants19 - The Group's total current liabilities exceeded total current assets by approximately HKD 22,060 thousand, but the Board considers the going concern basis appropriate20 - To address liquidity issues, the Company plans to dispose of Huayi Property Limited for HKD 29,000 thousand, using proceeds to repay borrowings, and implement measures to enhance sales network and control costs22 Revenue For the six months ended June 30, 2025, the Group's revenue of HKD 4,501 thousand primarily came from car trading as a principal, significantly lower than the prior year, with no accessory procurement income Revenue Breakdown (For the six months ended June 30) | Major Product or Service Line | 2025 (HKD thousand) | 2024 (HKD thousand) | | :--- | :--- | :--- | | Car trading as a principal by the Group | 4,501 | 19,715 | | Agency and service fee income from accessory procurement | – | 628 | | Total Revenue | 4,501 | 20,343 | - All revenue is recognized at a point in time23 Segment Information The Group's reportable segments include car trading and listed securities trading, with the car trading segment generating HKD 4,501 thousand in revenue and HKD 16,794 thousand in profit for the first half of 2025 - The Group's reportable segments include: car trading, providing agency services and procurement of accessories; trading of listed securities; and the discontinued brokerage and securities margin financing services25 Revenue and Results Analysis by Reportable Segment (For the six months ended June 30) | Segment | 2025 Revenue (HKD thousand) | 2025 Profit/(Loss) (HKD thousand) | 2024 Revenue (HKD thousand) | 2024 Loss (HKD thousand) | | :--- | :--- | :--- | :--- | :--- | | Car trading, agency services and accessory procurement | 4,501 | 16,794 | 20,343 | (1,739) | | Trading of listed securities | – | (208) | – | (80) | | Brokerage and securities margin financing services (discontinued) | – | – | 157 | (1,698) | | Total | 4,501 | 7,027 | 20,500 | (12,982) | - All revenue from external customers is derived from China28 Other Income and Gains/(Losses) – Net For the six months ended June 30, 2025, the Group's net other income and gains totaled HKD 34 thousand, mainly from bank interest and sundry income, partially offset by net exchange losses Other Income and Gains/(Losses) – Net (For the six months ended June 30) | Item | 2025 (HKD thousand) | 2024 (HKD thousand) | | :--- | :--- | :--- | | Bank interest income | 35 | 42 | | Sundry income | 97 | 109 | | Fair value gain on financial assets at fair value through profit or loss – listed equity securities | – | 24 | | Net exchange (loss)/gain | (98) | 76 | | Loss on disposal of financial assets at fair value through profit or loss | – | (137) | | Other income and gains/(losses) – net | 34 | 114 | Income Tax Credit The Group recorded a deferred tax credit of HKD 111 thousand for the period, with no income tax provision due to tax losses incurred by group companies Income Tax Credit (For the six months ended June 30) | Item | 2025 (HKD thousand) | 2024 (HKD thousand) | | :--- | :--- | :--- | | Deferred tax credit | (111) | (29) | - No provision for Hong Kong profits tax and PRC enterprise income tax was made as group companies incurred tax losses during the period33 Discontinued Operations The Group completed the disposal of Sinofortune BVI on July 9, 2024, terminating its brokerage services, resulting in no revenue or loss from discontinued operations during the current period - The Group disposed of its subsidiary Sinofortune BVI on July 9, 2024, terminating its brokerage and securities margin financing services business34 Loss for the Period from Discontinued Operations (For the six months ended June 30) | Item | 2025 (HKD thousand) | 2024 (HKD thousand) | | :--- | :--- | :--- | | Revenue | – | 157 | | Loss before income tax | – | (1,700) | | Loss for the period from discontinued operations | – | (1,700) | Earnings/(Loss) Per Share Basic earnings per share attributable to owners of the Company improved from a loss of 0.17 HK cents to a profit of 0.09 HK cents, with no diluted earnings per share presented Basic Earnings/(Loss) Per Share (For the six months ended June 30) | Item | 2025 (HK cents) | 2024 (HK cents) | | :--- | :--- | :--- | | From continuing and discontinued operations | 0.09 | (0.17) | | From continuing operations | 0.09 | (0.15) | | From discontinued operations | – | (0.02) | - Diluted earnings/(loss) per share for the six months ended June 30, 2025 and 2024 were not presented as there were no potential ordinary shares in issue for both periods42 Trade Receivables As of June 30, 2025, the Group's net trade receivables were HKD 218 thousand, primarily from car trading and all current, benefiting from a HKD 779 thousand impairment loss reversal Trade Receivables (As at June 30, 2025) | Item | June 30, 2025 (HKD thousand) | December 31, 2024 (HKD thousand) | | :--- | :--- | :--- | | Gross receivables | 1,526 | 2,038 | | Less: Impairment loss recognized | (1,308) | (2,038) | | Net amount | 218 | – | - Trade receivables from car trading are due within 120 days from the invoice date, with all outstanding amounts at period-end due within 0 to 30 days4445 Movement in Impairment Loss on Trade Receivables | Item | For the six months ended June 30, 2025 (HKD thousand) | For the year ended December 31, 2024 (HKD thousand) | | :--- | :--- | :--- | | At beginning of period/year | 2,038 | 1,672 | | (Reversal of)/impairment loss recognized during period/year | (779) | 429 | | At end of period/year | 1,308 | 2,038 | Prepayments, Deposits and Other Receivables As of June 30, 2025, the Group's prepayments, deposits, and other receivables totaled HKD 109,474 thousand, including significant car purchase deposits, with a HKD 18,642 thousand impairment loss reversal Prepayments, Deposits and Other Receivables (As at June 30, 2025) | Item | June 30, 2025 (HKD thousand) | December 31, 2024 (HKD thousand) | | :--- | :--- | :--- | | Deposits paid for car purchases for resale | 103,177 | 74,300 | | Less: Impairment loss recognized | (57,449) | (75,781) | | Other receivables | 63,257 | 83,271 | | Total | 109,474 | 83,879 | Movement in Impairment Loss on Deposits Paid for Car Purchases for Resale | Item | For the six months ended June 30, 2025 (HKD thousand) | For the year ended December 31, 2024 (HKD thousand) | | :--- | :--- | :--- | | At beginning of period/year | 75,781 | – | | (Reversal of)/impairment loss recognized during period/year | (18,642) | 75,805 | | At end of period/year | 57,449 | 75,781 | Amounts Due to Directors Amounts due to Directors are unsecured, interest-free, and repayable on demand - Amounts due to Directors are unsecured, interest-free, and repayable on demand49 Share Capital and Premium As of June 30, 2025, the Company's issued share capital was approximately HKD 77,489 thousand, comprising 7,748,958,120 shares of HKD 0.01 par value each Share Capital and Premium (As at June 30, 2025) | Item | Number of Shares (thousand shares) | Ordinary Shares (HKD thousand) | Share Premium (HKD thousand) | Total (HKD thousand) | | :--- | :--- | :--- | :--- | :--- | | As at January 1, 2025 and June 30, 2025 | 7,748,958 | 77,489 | 1,673,299 | 1,750,788 | - The Company's authorized ordinary share capital is 10,000,000,000 shares with a par value of HKD 0.01 each50 Dividends The Directors do not recommend a dividend payment for the six months ended June 30, 2025 - The Directors of the Company do not recommend the payment of a dividend for the six months ended June 30, 202550 Business and Financial Review Business Review For the six months ended June 30, 2025, the Group reported HKD 4.50 million in revenue, a significant decrease due to market competition, but achieved HKD 7.03 million profit primarily from impairment loss reversal on car purchase prepayments Business Performance Comparison (For the six months ended June 30) | Metric | 2025 (HKD million) | 2024 (HKD million) | Change (HKD million) | | :--- | :--- | :--- | :--- | | Revenue | 4.50 | 20.34 | (15.84) | | Profit/(Loss) | 7.03 | (12.98) | 20.01 | | Basic earnings/(loss) per share | 0.09 HK cents | (0.17) HK cents | 0.26 HK cents | - The decrease in revenue was primarily due to intense price competition in the China market, geopolitical tensions, and global trade restrictions5254 - The Group has invested in the new drug development market in China, with one new drug entering Phase II clinical trials53 Prospects The Group plans to diversify its customer base, introduce new energy vehicles, explore China's new drug development market, and improve its financial position through a property sale and leaseback arrangement - Chongqing Shengyu Hongjia International Trade Co., Ltd. has increased its customer base to 135 clients and is in negotiations with 44 clients, striving to reduce customer reliance55 - The Group plans to leverage the global green transformation and technological advancements in the automotive industry to introduce more new energy vehicles to its customers56 - The Company has entered into an agreement to dispose of its entire equity interest in Huayi Property Limited for a total consideration of HKD 29 million, and will lease back the property for two years at a monthly rent of HKD 130,00057 Financial Review As of June 30, 2025, the Group's current assets were HKD 90.51 million, with an improved current ratio of 0.8 times and a decreased gearing ratio of 501.9%, alongside HKD 9.51 million in cash and HKD 25 million in borrowings Key Financial Indicators (As at June 30, 2025) | Metric | June 30, 2025 (HKD million) | December 31, 2024 (HKD million) | | :--- | :--- | :--- | | Current assets | 90.51 | 50.32 | | Bank balances and cash | 9.51 | 13.53 | | Total borrowings | 25.00 | 28.00 | | Equity attributable to owners of the Company | 22.81 | 14.87 | | Current Ratio | 0.8 times | 0.5 times | | Gearing Ratio | 501.9% | 692.6% | - Equity attributable to owners of the Company increased by 53.4% to approximately HKD 22.81 million59 Share Capital As of June 30, 2025, the Company's authorized share capital was HKD 100,000,000, with issued share capital of approximately HKD 77,489,581 comprising 7,748,958,120 shares - The Company's authorized share capital is HKD 100,000,000, and its issued share capital is approximately HKD 77,489,58160 Foreign Exchange Risk The Group manages foreign exchange risk through local business cash flows and had no significant unhedged foreign exchange exposure from interest rate mismatches as of June 30, 2025 - The Group manages foreign exchange risk arising from its overseas operations by using cash flows generated from local business transactions to meet local business and investment needs61 - As of June 30, 2025, the Group had no significant unhedged foreign exchange exposure due to interest rate mismatches61 Employee Information As of June 30, 2025, the Group employed 36 staff with total costs of approximately HKD 5.27 million, and its remuneration policy is annually reviewed Employee Information | Metric | June 30, 2025 | December 31, 2024 | | :--- | :--- | :--- | | Number of employees | 36 | 38 | | Total staff costs (for the period ended June 30) | HKD 5.27 million | HKD 6.52 million | - Remuneration packages include basic salary, MPF, medical benefits, and discretionary bonuses, reviewed annually to ensure alignment with industry standards62 Pledged Assets As of June 30, 2025, the Group's leasehold land and buildings, with a carrying amount of approximately HKD 17.07 million, were pledged for credit facilities - The Group's leasehold land and buildings with a carrying amount of approximately HKD 17.07 million were pledged as security for credit facilities granted to the Group64 Contingent Liabilities The Group had no contingent liabilities as of June 30, 2025, and December 31, 2024 - The Group had no contingent liabilities65 Significant Investments, Acquisitions and Disposals of Subsidiaries, Associates and Joint Ventures The Company entered an agreement to dispose of Huayi Property Limited, a major transaction requiring shareholder approval and remaining uncompleted as of the announcement date - The Company has entered into a formal agreement with an independent third party, Advantage Property Limited, for the disposal of its entire equity interest in Huayi Property Limited66 - This disposal constitutes a major disposal transaction for the Company and therefore requires shareholder approval at an extraordinary general meeting, which has not been completed as of the date of this announcement66 Corporate Governance and Other Information Directors' and Chief Executive's Interests and Short Positions in Shares, Underlying Shares and Debentures of the Company As of June 30, 2025, Directors and the Chief Executive held interests in the Company's shares, with Chairman Mr. Wang Jiawei holding 27.40%, and no other disclosable interests or short positions Directors' Shareholding Summary | Director Name | Capacity | Number of Shares Held | Approximate Percentage of Shareholding | | :--- | :--- | :--- | :--- | | Wang Jiawei | Beneficial owner | 2,123,395,935 | 27.40% | | Li Yu Mei | Beneficial owner | 2,780,127 | 0.04% | | Liu Run Tong | Beneficial owner | 2,646,000 | 0.03% | - Save as disclosed above, none of the Directors or Chief Executive of the Company had any interests or short positions in the shares, underlying shares or debentures of the Company or any associated corporation that were required to be notified to the Company and the Stock Exchange pursuant to Divisions 7 and 8 of Part XV of the Securities and Futures Ordinance68 Substantial Shareholders' and Other Persons' Interests and Short Positions in Shares and Underlying Shares of the Company As of June 30, 2025, the Company was unaware of any substantial shareholders or other persons, beyond the Directors, holding disclosable interests or short positions in its shares - Save for the Directors, the Company is not aware of any person who had interests or short positions in the shares or underlying shares which were required to be disclosed to the Company and the Stock Exchange pursuant to Divisions 2 and 3 of Part XV of the Securities and Futures Ordinance69 Competing Interests The Directors confirm that as of June 30, 2025, no Directors, controlling shareholders, or their associates had any competing business or conflicts of interest with the Group - The Directors are not aware of any business or interest of any Director, controlling shareholder, or their respective associates that competes or may compete with the Group's business, nor any other conflicts of interest between such persons and the Group, existing or potential72 Purchase, Sale or Redemption of Listed Securities Neither the Company nor its subsidiaries purchased, sold, or redeemed any of the Company's listed securities during the reporting period - During the period, neither the Company nor any of its subsidiaries purchased, sold, or redeemed any of the Company's listed securities73 Compliance with the Corporate Governance Code The Company complied with the GEM Listing Rules Corporate Governance Code, except for a deviation from code provision C.2.1 where Mr. Wang Jiawei holds both Chairman and Chief Executive roles - The Company has applied and complied with all the principles and code provisions set out in Appendix C1 to the GEM Listing Rules Corporate Governance Code74 - There is a deviation from code provision C.2.1 (the roles of Chairman and Chief Executive should be separate), as Mr. Wang Jiawei concurrently holds both positions75 Directors' Securities Transactions The Company adopted a stringent code of conduct for Directors' securities transactions, with all Directors confirming compliance during the period - The Company has adopted a code of conduct regarding Directors' securities transactions, the terms of which are no less stringent than the required standard set out in Rules 5.48 to 5.67 of the GEM Listing Rules76 - Following specific enquiry with all Directors, they confirmed compliance with the Company's code of conduct regarding Directors' securities transactions during the year76 Audit Committee The Audit Committee, comprising three independent non-executive Directors, reviewed and deemed the Group's financial statements compliant with applicable accounting standards, overseeing financial reporting and internal controls - The Audit Committee comprises Professor Zhang Benzheng, Mr. Li Jianxing, and Professor Chen Shuwen, all independent non-executive Directors78 - The primary responsibilities of the Audit Committee are to review and oversee the Group's financial reporting process and internal control procedures77 - The Audit Committee has reviewed the Group's financial statements for the six months ended June 30, 2025, and considers them to have been prepared in compliance with applicable accounting standards78 Board Approval and Publication Date This announcement was approved and authorized for publication by the Board on August 29, 2025, listing the Executive, Non-executive, and Independent Non-executive Directors as of that date - This announcement was approved and authorized for publication by the Board on August 29, 202579 - As of the date of this announcement, the Executive Directors are Mr. Wang Jiawei and Ms. Li Yu Mei, the Non-executive Director is Mr. Liu Run Tong, and the Independent Non-executive Directors are Professor Zhang Benzheng, Mr. Li Jianxing, Professor Chen Shuwen, and Mr. Li Guan Qun80
华亿金控(08123) - 2025 - 中期业绩