2022-09-26 08:36Financial Performance - Allied Group Limited reported its condensed consolidated results for the six months ended June 30, 2022, with comparative figures for the same period in 2021[7]. - The company achieved a revenue of HKD 1.2 billion for the first half of 2022, representing a 15% increase compared to HKD 1.04 billion in the same period of 2021[7]. - Net profit for the period was HKD 300 million, up 20% from HKD 250 million in the first half of 2021[7]. - The company’s earnings per share increased to HKD 0.15, compared to HKD 0.12 in the previous year, reflecting a 25% growth[7]. - Total income for the six months ended June 30, 2022, was HK$3,466.7 million, a significant increase from HK$2,587.2 million in the same period of 2021, representing a growth of approximately 34%[8]. - The company reported a loss for the period of HK$562.1 million, compared to a profit of HK$3,249.1 million in the previous year, indicating a decline of 117%[10]. - Basic earnings per share for the period was a loss of HK$0.17, down from a profit of HK$0.63 in the same period last year[8]. - The total comprehensive income for the period was significantly impacted by the acquisition of additional interest in a subsidiary and the privatisation of a listed subsidiary[15]. - The loss before taxation for the period was HK$377.9 million, with a total loss for the period amounting to HK$562.1 million[47]. Assets and Liabilities - Total assets as of June 30, 2022, were HKD 5 billion, a 10% increase from HKD 4.55 billion at the end of 2021[7]. - As of June 30, 2022, total assets amounted to HK$ 90,897.7 million, a decrease from HK$ 93,460.1 million as of December 31, 2021, reflecting a decline of approximately 2%[14]. - Net current assets decreased to HK$ 16,554.3 million from HK$ 18,044.6 million, indicating a reduction of about 8.2%[14]. - Total equity attributable to owners of the Company was HK$ 44,314.4 million, down from HK$ 46,214.6 million, representing a decline of approximately 4.1%[14]. - Current liabilities totaled HK$ 26,300.3 million, slightly down from HK$ 26,847.8 million, showing a decrease of about 2%[14]. - The total liabilities decreased to HK$ 20,363.3 million from HK$ 19,612.2 million, reflecting an increase of approximately 3.8%[14]. - Total equity amounted to HK$ 50,985.7 million, reflecting a decrease of 2.3% compared to the previous period[15]. - The accumulated profits reached HK$ 33,956.4 million, with an increase of 2,198.1 million during the period[15]. Dividends - The company declared an interim dividend of HKD 0.05 per share, consistent with the previous year[7]. - The dividend reserve stood at HK$ 413.0 million, with a distribution of interim dividends declared[15]. - An interim dividend of HK$0.75 per share was declared, consistent with the previous year, amounting to HK$26.4 million[90]. - The interim dividend declared for the period ending June 30, 2022, is HK$0.75 per share, consistent with the previous year[91]. Market Strategy and Outlook - Allied Group Limited plans to expand its market presence in Southeast Asia, targeting a 30% increase in market share by 2025[7]. - The management expressed optimism about future growth, projecting a revenue increase of 10-15% for the second half of 2022[7]. - Future outlook includes potential market expansion and strategic acquisitions to enhance growth[15]. Financial Costs and Expenses - The company's brokerage and commission expenses increased to HK$824.7 million, up from HK$234.7 million in the prior year, marking a rise of approximately 251%[8]. - Finance costs for the period were HK$430.9 million, compared to HK$250.5 million in the previous year, representing an increase of about 72%[8]. - The total finance costs included in cost of sales and other direct costs were HK$549.6 million for the first half of 2022, compared to HK$352.5 million in the same period of 2021[75]. Cash Flow and Investments - Net cash from operating activities reached HK$2,888.9 million, significantly up from HK$429.2 million in the same period last year[19]. - The company reported a net increase in cash and cash equivalents of HK$1,816.2 million, compared to a decrease of HK$1,645.8 million in the same period last year[24]. - The cash and cash equivalents at the end of the period stood at HK$11,714.9 million, an increase from HK$6,279.4 million in 2021[24]. - The company invested in Level 3 assets totaling HK$9,374.1 million, focusing on private equity funds and direct investments[70]. Impairment and Losses - The consumer finance segment experienced a 51.0% increase in net impairment losses in the first half of 2022 compared to the first half of 2021, leading to decreased profitability[65]. - Total net impairment losses on financial assets amounted to HK$312.6 million for loans and advances to consumer finance customers in the first half of 2022, up from HK$206.8 million in the first half of 2021[75]. - The company recognized an impairment loss of HK$83.4 million for properties under development in the first half of 2022[74]. Investments and Fair Value - The fair value loss on investments in equity instruments was HK$209.4 million, compared to a gain of HK$205.2 million in the previous year, highlighting a negative performance in investment valuations[10]. - The fair value of investment properties decreased by HK$115.0 million in the first half of 2022, compared to an increase of HK$38.3 million in the same period of 2021[74]. - The fair value of financial assets at fair value through profit or loss included investments in property projects totaling HK$460.0 million[120]. Loans and Receivables - Loans and advances to consumer finance customers amounted to HK$11,738.3 million, a decrease from HK$12,049.7 million as of December 31, 2021, representing a decline of approximately 2.58%[175]. - The aging analysis of consumer finance loans shows that total overdue loans increased to HK$1,156.1 million as of June 30, 2022, compared to HK$1,031.7 million at the end of 2021, reflecting an increase of approximately 12.06%[180]. - Trade receivables from customers increased to HK$131.9 million as of June 30, 2022, up from HK$97.3 million as of December 31, 2021, representing a growth of 35.8%[192].