Financial Performance - Total revenue for the six months ended June 30, 2023, was approximately HKD 108.2 million, an increase of HKD 29.6 million or 37.7% compared to the same period in 2022[6]. - The group recorded a consolidated loss after tax of approximately HKD 31.1 million, compared to a profit of approximately HKD 9.5 million in the previous period[6]. - Core business pre-tax loss for the period was approximately HKD 15.4 million, down from a pre-tax profit of approximately HKD 42.4 million in the previous period[7]. - The overall revenue for the group during the period was approximately HKD 65,200,000, a decrease of about HKD 8,000,000 compared to the previous period[23]. - Total revenue for the six months ended June 30, 2023, was HKD 65,166,000, a decrease of 10.4% compared to HKD 73,191,000 in the same period of 2022[63]. - Total comprehensive loss for the period was HKD 31,142,000, compared to a comprehensive income of HKD 9,504,000 in the previous year[64]. - Basic and diluted loss per share was HKD (3.25), compared to earnings of HKD 0.31 per share in the same period last year[64]. - The company reported a net loss attributable to owners of HKD (30,690,000) compared to a profit of HKD 2,937,000 in the previous year[64]. Revenue Breakdown - Revenue from asset management services decreased to approximately HKD 1.9 million, down from approximately HKD 2.6 million in the previous period[12]. - Margin loan interest income fell to approximately HKD 24.5 million, down from approximately HKD 30.2 million in the previous period, primarily due to a decrease in margin loan rates[12]. - The financial services segment's revenue decreased by 20.2% to approximately HKD 29.6 million, down from approximately HKD 37.1 million in the previous period[13]. - The revenue from the lending and borrowing services segment increased from approximately HKD 25,700,000 to approximately HKD 66,100,000, primarily due to the recovery of bad debts amounting to HKD 42,000,000[17]. - The interest income from the lending business decreased to approximately HKD 24,100,000 from approximately HKD 25,100,000 in the previous year[23]. - The company’s asset management service revenue decreased to HKD 1,860,000 from HKD 2,586,000, a decline of approximately 28%[88]. - Corporate advisory service revenue fell to HKD 5,686,000, down 30.6% from HKD 8,195,000[63]. Assets and Liabilities - The group’s net asset value as of June 30, 2023, was approximately HKD 2,089,100,000, a decrease of about HKD 31,100,000 from the end of the previous fiscal year[25]. - The total assets as of June 30, 2023, amounted to HKD 2,376,988,000, an increase from HKD 2,412,742,000 as of December 31, 2022[84][85]. - The total liabilities as of June 30, 2023, were HKD 287,893,000, compared to HKD 292,505,000 at the end of 2022, indicating a slight decrease[85]. - The total outstanding principal and accrued interest not repaid is approximately HKD 507,300,000, with the largest borrower and the top five borrowers accounting for approximately 16% and 39% of the receivables, respectively[17]. - The aging analysis of receivables as of June 30, 2023, showed that HKD 504,519,000 was not overdue, down from HKD 686,714,000 as of December 31, 2022[105]. Cash Flow and Financing - For the six months ended June 30, 2023, the net cash used in operating activities was HKD (22,695) thousand, a significant improvement from HKD (362,869) thousand in the same period of 2022[71]. - The group reported a net cash outflow from investing activities of HKD (62,516) thousand, a decrease from a net cash inflow of HKD 99,829 thousand in the prior year[71]. - The group’s financing activities resulted in a net cash outflow of HKD (16,797) thousand, compared to a net cash inflow of HKD 111,547 thousand in the previous year[71]. - The cash and cash equivalents at the end of the reporting period were HKD 127,300 thousand, down from HKD 279,580 thousand at the end of June 2022[71]. Corporate Governance and Compliance - The company has complied with all corporate governance practices as per the Listing Rules during the reporting period[41]. - The company did not declare any interim dividends for the period, consistent with the previous year[8]. - The company has not established any arrangements that would allow directors to benefit from acquiring shares or debentures of the company during the period[53]. - The company has not disclosed any changes in director information since the last annual report[57]. Future Plans and Strategies - The group plans to launch a pre-IPO matching system for retail and corporate clients by September 2023, with internal testing completed in July 2023[14]. - The group has applied for additional licenses under the Securities and Futures Ordinance to expand its service offerings, with expected formal approval by mid-November 2023[14]. - Management anticipates that inflationary pressures may ease, and will continue to review and adjust strategies cautiously[10]. Employee and Shareholder Information - The company has 37 employees as of June 30, 2023, and offers various employee benefits including MPF, medical insurance, and discretionary training subsidies[40]. - As of June 30, 2023, major shareholders include Ms. Luo Qiyin, holding 633,535,440 shares, representing approximately 67.01% of the total issued share capital[55]. - The company has a share incentive plan in place that allows for the issuance of shares up to 10% of the issued share capital, with an annual limit of 3%[115]. Investment and Fair Value - The investment in Green River Associates Limited has been diluted from 33% to 31.37%, with a carrying value of approximately HKD 136.4 million as of June 30, 2023, representing about 5.7% of the total assets[34]. - The group's share of losses from Green River Marshall amounted to approximately HKD 18 million for the period, a decrease from HKD 32.9 million in the previous year, primarily due to fair value losses on investments[34]. - The fair value loss on financial assets recognized in profit or loss was HKD 70,534,000 for the first half of 2023, compared to HKD 7,490,000 in the same period of 2022[90]. - The fair value of financial assets measured at fair value through profit or loss increased to HKD 212,905,000 as of June 30, 2023, compared to HKD 161,576,000 as of December 31, 2022[107].
梧桐国际(00613) - 2023 - 中期财报