Business Overview - The Group's principal business includes integrated financial services, investment holdings, CGI, and entertainment, with a new focus on film distribution license rights during the review period[10]. - The strategic goal is to enhance the variety and quality of integrated financial services, including forming strategic alliances and investing in local financial service firms[18]. - The Group aims to expand its coverage in the financial services industry through long-term strategic investments in equity instruments[18]. - The Group's integrated financial services encompass securities brokerage, margin financing, asset management, and corporate finance advisory services[10]. - The Company operates its money lending business through Imagi Lenders Limited, which holds a money lenders license under Hong Kong law[16]. - The Group's entertainment segment has started reporting revenues from film distribution, indicating a diversification of its business model[10]. - The Company is actively seeking opportunities to improve competitiveness in the integrated financial services sector[18]. - The Company plans to expand its Integrated Financial Services businesses, including securities brokerage, futures trading, and asset management services[51]. - The company has initiated a film distribution license rights business and aims to broaden its entertainment business in the film industry[54]. - The Company intends to enter the mass market to diversify its business portfolio while adopting a cautious approach due to challenging market conditions[80]. Financial Performance - The Group's financial performance and specific revenue figures for the review period will be detailed in the condensed consolidated financial statements[20]. - The Group's net profit attributable to shareholders for the period was approximately HK$4.1 million, a decrease from approximately HK$16.6 million in the previous period[44]. - Total segment revenue for securities brokerage and asset management was approximately HK$26.7 million, down from approximately HK$37.5 million in the previous period, representing a decrease of about 29%[44]. - Revenue from the securities brokerage and asset management segment decreased by approximately 29%, while the provision of finance segment saw a decline of approximately 34%[69]. - The consolidated net profit attributable to shareholders for the Period under Review was approximately HK$4.1 million, a decrease of approximately 75% compared to HK$16.6 million for the Previous Period[69]. - Interest income for the six months ended June 30, 2023, was HK$32,115,000, compared to HK$23,270,000 for the same period in 2022, representing an increase of 38.0%[171]. - The total revenue for the six months ended June 30, 2023, was HK$39,658,000, compared to HK$32,899,000 for the same period in 2022, indicating a year-over-year increase[199]. Liquidity and Financial Position - The Group maintained a strong liquidity position with bank balances of approximately HK$116 million as of June 30, 2023, compared to approximately HK$76 million at the end of 2022[45]. - The current ratio was approximately 18 times as of June 30, 2023, down from approximately 26 times at the end of 2022[45]. - The Group's net asset value per share was approximately HK$0.89 as of June 30, 2023, compared to approximately HK$0.92 at the end of 2022[46]. - The liquidity position remains healthy, with bank balances amounting to approximately HK$116 million, up from approximately HK$76 million as of 31 December 2022[70]. - The current ratio as of 30 June 2023 was approximately 18 times, compared to approximately 26 times as of 31 December 2022[70]. - The consolidated total assets amounted to HK$969,112,000, with bank balances and cash at HK$76,262,000[182]. - The consolidated total liabilities as of June 30, 2023, were HK$31,657,000, indicating a manageable debt level relative to assets[182]. Market Conditions and Strategic Approach - The Group is taking a cautious approach towards commencing new businesses and expansion plans due to current unstable market conditions[31]. - The Company intends to adopt a conservative approach towards business expansion due to the challenging financial market conditions, while remaining optimistic about the long-term prospects of the Hong Kong financial market[53]. - The Management does not foresee positive changes in the CGI business and will allocate minimal resources to maintain it until substantial changes occur[81]. - The Company has suspended its investment in the film industry but will continue to review investment opportunities as they arise[81]. Employee and Corporate Governance - As of June 30, 2023, the Group employed 33 employees, an increase from 31 employees in 2022, excluding Directors[102]. - The total staff cost for Directors and staff during the Period under Review was approximately HK$8.5 million, up from approximately HK$7.1 million in 2022, representing a year-on-year increase of about 19.7%[102]. - The Company has complied with the Corporate Governance Code during the Period under Review, maintaining high standards of corporate governance[104]. Shareholder Information and Share Schemes - The Company did not declare any interim dividend for the review period[93]. - The existing bye-laws of the Company were amended to comply with the Core Shareholder Protection Standards effective from January 1, 2022[89]. - As of June 30, 2023, the total number of issued shares was 829,921,572, with a market value of approximately HK$253 million, down from HK$270 million as of December 31, 2022[76]. - The Company has not sought shareholders' approval to refresh the Annual Limit under the Share Award Scheme, which expired on June 28, 2023, thus no further awards can be granted until approval is obtained[152]. - The Share Award Scheme is valid for ten years from October 22, 2019, to October 21, 2029, aimed at retaining and attracting suitable personnel[126]. - The Company has implemented a 3% annual limit for the Share Award Scheme, which equals 24,897,647 shares based on the approved limit from the annual general meeting held on June 21, 2022[148]. Investment and Asset Management - The investment in Hope Capital Limited amounted to approximately HK$96.7 million, representing about 10.18% of the Group's total assets as of June 30, 2023[76]. - As of June 30, 2023, investments in equity instruments designated at fair value and held-for-trading investments were approximately HK$25.7 million and HK$22.6 million, respectively[76]. - The unrealised losses from changes in fair value of listed equity investments classified as held-for-trading increased from approximately HK$2 million in the Previous Period to approximately HK$7 million for the Period under Review[69]. - The impairment loss on film rights investment was HK$59,000 for the six months ended June 30, 2023, which is a new expense not recorded in the previous year[171]. - Impairment allowances on margin loans receivable amounted to HK$4,139,000, highlighting potential risks in receivables[186]. Other Financial Metrics - The depreciation charge for owned property, plant, and equipment was HK$395,000 for the six months ended June 30, 2023, compared to HK$367,000 in 2022, indicating a 7.6% increase[178]. - The amortization of film rights for the six months ended June 30, 2023, was HK$1,607,000, which is a new expense not recorded in the previous year[171]. - The company reported a net foreign exchange gain of HK$146,000 for the six months ended June 30, 2023, compared to a loss of HK$582,000 in 2022, showing a significant turnaround[180]. - The company incurred finance costs totaling HK$246,000 during the reporting period[186]. - The company has not reported any significant events occurring after June 30, 2023, up to the report date[160].
元汇集团(00585) - 2023 - 中期财报