Financial Performance - For the six months ended June 30, 2025, the group recorded revenue and other income of approximately HKD 5.2 million, a decrease from HKD 8.3 million for the same period in 2024, representing a decline of 37.6%[14] - The group reported a pre-tax loss of approximately HKD 11.5 million for the current period, compared to a pre-tax loss of HKD 16.0 million for the same period in 2024, indicating an improvement of 28.1%[14] - Other income for the review period was approximately HKD 5.1 million, down from HKD 8.2 million in the previous year, reflecting a decrease of 37.8% due to reduced bank interest income[22] - Total revenue for the six months ended June 30, 2025, was HKD 49,000, compared to HKD 145,000 for the same period in 2024, reflecting a significant decline[35] - The company reported a net loss of approximately HKD 11,476,000 for the six months ended June 30, 2025, compared to a loss of HKD 16,047,000 for the same period in 2024, indicating an improvement of about 28.8%[42] - The company’s operating cash flow for the six months ended June 30, 2025, was negative HKD 13,246,000, a decline from positive cash flow of HKD 89,537,000 in the same period of 2024[42] - The company reported a loss before tax of HKD 11,476,000 for the six months ended June 30, 2025, compared to a loss of HKD 16,047,000 in 2024, showing an improvement of 28.5%[68] - Basic and diluted loss per share for the six months ended June 30, 2025, was HKD 0.313, compared to HKD 0.438 in 2024, reflecting a decrease of 28.5%[68] Expenses and Costs - Employee costs for the period were approximately HKD 7.3 million, a decrease from HKD 11.5 million in the previous year, showing a reduction of 36.5%[23] - Service fees and commission expenses were approximately HKD 0.02 million, down from HKD 0.12 million in the previous year, indicating a decline of 83.3%[24] - Financial costs for the period were approximately HKD 4.0 million, a decrease of about HKD 2.3 million or 36.5% compared to HKD 6.3 million for the six months ended June 30, 2024[25] - The total operating expenses for the period were HKD 16.7 million, down from HKD 24.4 million in the previous year, indicating a reduction in costs[35] - Total financial costs for the six months ended June 30, 2025, were HKD 3,870,000, compared to HKD 3,279,000 in 2024, representing an increase of 18.0%[60] Business Strategy and Operations - The group has suspended its proprietary trading activities to strengthen risk management and will resume trading based on market conditions and business development plans[20] - The group aims to leverage the advantages of Hong Kong's international platform to enhance comprehensive service capabilities and capitalize on opportunities in green finance and digital transformation[13] - The group continues to focus resources on securing new business appointments and opportunities in investment advisory and management services[18] - The company plans to focus resources on enhancing regulated activities in securities trading, advisory, and asset management, aiming for improved operational viability and sustainability[26] Financial Position - As of June 30, 2025, the total cash and bank balances were approximately HKD 82.2 million, down from HKD 91.8 million as of December 31, 2024[27] - The net current liabilities amounted to approximately HKD 60.2 million, an increase from HKD 48.9 million as of December 31, 2024, resulting in a current ratio of 0.6 times[27] - As of June 30, 2025, the company's total equity was negative HKD 59,769,000, reflecting a capital deficit increase from negative HKD 53,124,000 as of June 30, 2024[42] - The company has a net current liability of approximately HKD 60,151,000 as of June 30, 2025, primarily due to loans maturing on March 27, 2026, totaling HKD 145,905,000[47] - The company anticipates continued financial support from its major shareholder, Xizheng International Investment, to maintain operational liquidity until at least August 31, 2026[50] Shareholder and Governance - The board did not recommend the payment of an interim dividend for the review period, consistent with the previous year where no dividend was declared[9] - Major shareholders include Southwest Securities International, holding 2,713,469,233 shares, representing 74.10% of voting rights[103] - The company has adopted the corporate governance code as per the listing rules to protect shareholder interests[112] - The audit committee has reviewed the interim financial statements for the six months ending June 30, 2025, ensuring compliance with applicable accounting standards[115] Regulatory and Compliance - The group has submitted exit plans for regulated activities related to corporate financing and futures contract trading to the Securities and Futures Commission[15][16] - The company received a letter from the Stock Exchange on September 12, 2025, indicating that it failed to meet the resumption guidance and its listing status will be canceled[97] - The last trading date for the company's shares will be September 26, 2025, with the listing status canceled on September 29, 2025[98] - The company will not apply for a review of the decision to cancel its listing status, which will take effect on September 29, 2025[117] Loans and Financial Instruments - The company has a loan of approximately HKD 120 million from its controlling shareholder, with a fixed interest rate of 6.1475%, used to repay USD bonds[89] - As of June 30, 2025, the outstanding loan amount and interest owed by Jaguar Asian Limited is approximately HKD 807.8 million, with an annual interest rate of 12%[105] - The loan is secured by a pledge of 588,720,412 shares of Yihua Holdings Limited, which was delisted from the main board on March 21, 2022[105] - The company has made full impairment provisions for the loan as of December 31, 2020[111] Assets and Receivables - The company’s receivables as of June 30, 2025, amounted to HKD 1,383,000, slightly up from HKD 1,355,000 as of December 31, 2024[71] - The total accounts receivable (excluding securities margin clients) was HKD 1,709,000,000 as of June 30, 2025, with a decrease in impairment from HKD 348,000,000 to HKD 331,000,000[76] - The overdue accounts receivable analysis showed HKD 936,000,000 overdue within 30 days as of June 30, 2025[79] - The company held trust account balances of approximately HKD 17,973,000, which remained stable compared to HKD 17,928,000 as of December 31, 2024[81] Other Information - There were no significant acquisitions, disposals, or investments during the review period[29] - The company has not made any significant investments in fixed assets during the reporting period, with cash outflow for fixed asset purchases recorded as zero[42] - The company has not purchased, sold, or redeemed any of its listed securities during the review period[114] - The company has not disclosed any interests or short positions held by directors or key executives in its shares or related securities as of June 30, 2025[101] - There were no rights granted to directors or their associates to benefit from purchasing the company's shares or securities during the review period[102]
西证国际证券(00812) - 2025 - 中期财报