Financial Performance - For the six months ended June 30, 2023, total revenue was HK$35,093,000, a decrease of 71.7% compared to HK$124,100,000 in the same period of 2022 [39]. - Gross profit for the period was HK$24,799,000, down from HK$72,165,000, reflecting a gross margin decline [39]. - Loss for the period amounted to HK$88,833,000, compared to a loss of HK$95,003,000 in the previous year, indicating a slight improvement [40]. - The total comprehensive income for the period ended June 30, 2022, was a loss of HK$104,963, reflecting ongoing financial challenges [74]. - The Group reported a loss attributable to the owners of the Company of HK$77,743,000 for the six months ended 30 June 2023 [99]. - Total comprehensive income for the period was a loss of HK$69,391,000 [97]. - The loss attributable to owners of the Company for the six months ended June 30, 2023, was HK$77,743,000, compared to HK$77,415,000 for the same period in 2022 [192]. Revenue and Segments - The industrial property development segment generated revenue of HK$8,839,000, while the loan financing (I) segment generated revenue of HK$73,899,000 for the six months ended June 30, 2023 [107]. - The Group's general trading segment did not report any revenue for the six months ended June 30, 2023 [107]. - For the six months ended June 30, 2023, the total segment revenue was HK$124,100,000, a decrease from HK$124,100,000 in the same period of 2022 [107]. Impairment and Losses - The impairment loss on loans and interest receivables was HK$52,743,000 for the six months ended June 30, 2023, compared to HK$656,000 in the same period of 2022 [110][111]. - The impairment charge recognized during the current interim period was HK$50,075,000, compared to HK$71,790,000 for the six months ended June 30, 2022 [171]. - The accumulated impairment losses for the Group increased to HK$417,859,000 as of June 30, 2023, from HK$367,784,000 as of December 31, 2022 [164]. - The Group's impairment loss, net of reversal, was HK$81,063,000, compared to HK$82,423,000 in the previous year, indicating a stable impairment situation [39]. Cash Flow and Liquidity - For the six months ended June 30, 2023, the net cash used in operating activities was HK$5,791, compared to HK$38,422 for the same period in 2022, indicating a significant improvement [75]. - The company generated HK$318 in net cash from investing activities for the six months ended June 30, 2023, compared to HK$5,086 in the prior year, reflecting a decrease in investment activity [75]. - Financing activities resulted in a net cash increase of HK$18,406 for the six months ended June 30, 2023, compared to HK$28,772 in the same period of 2022, showing a reduction in financing inflows [75]. - As of June 30, 2023, cash and cash equivalents amounted to HK$40,996, slightly up from HK$40,669 at the end of June 2022, indicating stable liquidity [75]. Share Capital and Convertible Notes - The company has issued convertible notes with a principal amount of HK$200 million, convertible at an initial price of HK$1 per share, representing approximately 2.57% of the issued share capital upon full conversion [30]. - No convertible notes were converted during the period, and no new shares were allotted or issued by the company pursuant to the convertible notes [31]. - The interest rate on the convertible notes is nil for the first year, increasing to 1% in the second year, 4% in the third year, and 6% in the fourth year [59]. - The balance of convertible notes as of June 30, 2023, was HK$200,000,000, with a conversion price of HK$1.0 per share [60]. Corporate Strategy and Operations - The Group has decided to slow down its loan referral business to minimize further losses arising from default rates, reflecting a significant decline in revenue and operational performance during the period [18]. - The Group is committed to evaluating options for the disposal of its financial guarantees business in Beijing to improve performance and streamline operations [12]. - The Group's strategic move aims to focus on core strengths and allocate resources to areas with stronger growth prospects [12]. - The Group is actively negotiating corporate restructure proposals to reduce liabilities and commitments, which may impact future financial stability [77]. Shareholder Information - As of June 30, 2023, Mr. Liu owns 65.80% of the issued share capital of Long Tu Limited, which in turn owns 55% of Intraday Financial Information Service Limited [28]. - The interests of substantial shareholders include 1,447,750,000 shares held by Eastern Spring Global Limited, representing approximately 18.62% of issued voting shares [57]. - Skill Rich Limited holds 1,000,000,000 shares, accounting for approximately 12.86% of issued voting shares [57]. Compliance and Governance - The company has established an Audit Committee comprising three independent non-executive Directors to ensure compliance with Listing Rules [35]. - The Group maintains compliance with the Securities and Futures Ordinance regarding the disclosure of interests [29]. - The effective tax rate for the Group's subsidiaries in Hong Kong is 16.5%, with no tax provision made due to tax losses incurred [44]. Assets and Liabilities - As of June 30, 2023, the total consolidated assets amounted to HK$865,973,000, with segment assets of HK$562,025,000 [87]. - The total consolidated liabilities reached HK$988,927,000, with segment liabilities of HK$741,136,000 [87]. - The Group's current liabilities as of 30 June 2023 amounted to HK$599,886,000, a decrease from HK$629,385,000 as of 31 December 2022 [71]. - The Group's net liabilities as of 30 June 2023 were (HK$122,954,000), compared to (HK$35,511,000) as of 31 December 2022 [71].
大中华金融(00431) - 2023 - 中期财报