Financial Performance - The total revenue for the group for the six months ended June 30, 2023, was HKD 20,465,000, compared to HKD 997,000 in the previous year, indicating a substantial growth[9]. - In the first half of 2023, the company recorded a revenue decrease of 80% to HKD 51,267,000, down from HKD 258,750,000 in the same period of 2022[127]. - Total revenue for the six months ended June 30, 2023, was HKD 51,267,000, a decrease of 80.2% compared to HKD 258,750,000 for the same period in 2022[185]. - Interest income decreased to HKD 50,284,000 from HKD 67,831,000, representing a decline of 26.0% year-over-year[185]. - The company reported a pre-tax loss of HKD 22,312,000, an improvement from a loss of HKD 72,582,000 in the previous year[185]. - The group recorded a significant reduction in loss attributable to owners, decreasing by 89% to HKD 11,996,000 for the first half of 2023, compared to HKD 104,350,000 for the same period in 2022[171]. - The company reported a loss attributable to owners of HKD 11,996,000 for the first half of 2023, compared to a loss of HKD 104,350,000 in the same period of 2022[127]. - Total comprehensive expenses amounted to HKD 14,759,000, a decrease from HKD 126,073,000 in the prior year[171]. Income and Expenses - The group's bank interest income for the six months ended June 30, 2023, was HKD 16,910,000, compared to HKD 666,000 for the same period in 2022, representing a significant increase[9]. - The group’s other income for the six months ended June 30, 2023, was HKD 3,555,000, compared to HKD 23,000 in the same period last year[9]. - The company achieved a turnaround in performance with a profit of HKD 4,489,000 in the first half of 2023, compared to a loss of HKD 19,023,000 in the previous year[162]. - The impairment loss provision decreased by 49% to HKD 40,614,000 in the first half of 2023, down from HKD 78,981,000 in the same period of 2022[162]. - The company confirmed an impairment loss of HKD 336,000 on debt instruments due to increased credit risk, compared to HKD 17,133,000 on June 30, 2022[118]. Assets and Liabilities - The group's total receivables from cash clients amounted to HKD 1,984,000, and from margin clients amounted to HKD 112,141,000 as of June 30, 2023[22]. - The group’s total receivables decreased from HKD 140,638,000 as of December 31, 2022, to HKD 129,416,000 as of June 30, 2023[22]. - The total liabilities for trade and other payables as of June 30, 2023, were HKD 36,625,000, a decrease from HKD 37,899,000 as of December 31, 2022, showing a reduction of 3.4%[49]. - The company's cash and cash equivalents amounted to HKD 1,059,588,000, an increase from HKD 1,005,561,000 as of December 31, 2022, representing a growth of approximately 5.4%[48]. - The total loan portfolio amounted to HKD 1,545,359,000, a slight increase of HKD 17,645,000 compared to the end of 2022[138]. - The net value of the loan portfolio, after deducting impairment provisions, was HKD 970,627,000, down from HKD 1,020,598,000 at the end of 2022[138]. - The company's deferred tax assets increased to HKD 2,806,000 as of June 30, 2023, compared to HKD 1,315,000 as of December 31, 2022, reflecting a growth of 113.1%[44]. Shareholder and Governance - The company’s major shareholders include Dr. Zheng Jiachun, holding approximately 16.67% of the issued shares, and Mr. Sun Cuhong, holding approximately 8.24%[61]. - The company has complied with all applicable code provisions of the Corporate Governance Code during the six months ended June 30, 2023[77]. - The board of directors' remuneration has been increased to HKD 250,000 per year for certain directors, effective January 1, 2023[79][80][84]. - The company has adopted the standard code as the code of conduct for securities transactions by its directors[78]. Market and Operational Insights - The company’s trading activities with European clients temporarily halted, resulting in no revenue from trading operations, which had generated HKD 188,301,000 in the previous year[120]. - The company aims to closely monitor the performance of its financial assets and explore business opportunities to improve results in the European commodity market[120]. - The company continues to adopt a prudent approach in managing its business amid ongoing geopolitical tensions and economic uncertainties[113]. - The group completed the acquisition of an asset management company licensed to conduct regulated activities, expected to create synergies with its brokerage business[171]. - The group plans to expand its fund management activities in equity, fixed income, and alternative investments[171]. Employee and Operational Costs - The group had 50 employees as of June 30, 2023, with total employee costs amounting to HKD 15,522,000, an increase from HKD 14,708,000 in the previous year[152]. - The company's short-term employee benefits for directors remained stable at HKD 3,535,000 for both 2023 and 2022[41]. Financial Instruments and Investments - The company's financial assets measured at fair value through profit or loss amounted to HKD 13,224,000, with a net loss of HKD 3,809,000 during the first half of 2023[156]. - The company's debt instruments measured at fair value through other comprehensive income totaled HKD 18,976,000, with no income generated during the first half of 2023[158]. - The company's financial assets portfolio is primarily composed of property, accounting for 97.60% of the total[157]. - The company has not purchased or sold any debt securities during the first half of 2023[158].
中策资本控股(00235) - 2023 - 中期财报