Financial Performance - The company recorded revenue of approximately HKD 35.1 million for the six months ended June 30, 2023, a decrease of 42.17% compared to HKD 60.7 million in the same period of 2022[6]. - The profit for the period was approximately HKD 10.7 million, down from HKD 13.5 million in 2022, primarily due to fair value losses on financial assets measured at fair value through profit or loss[6]. - The profit attributable to owners of the company was approximately HKD 7 million, compared to HKD 8.3 million in 2022[6]. - The company's revenue for the six months ended June 30, 2023, was HKD 35,073,000, a decrease of 42.3% compared to HKD 60,710,000 in the same period of 2022[73]. - Operating profit for the same period was HKD 16,893,000, down 21.5% from HKD 21,461,000 in 2022[73]. - Net profit for the six months was HKD 10,669,000, a decline of 21.6% from HKD 13,511,000 in the previous year[75]. - Basic and diluted earnings per share were HKD 0.55, compared to HKD 0.66 in 2022[73]. - The comprehensive income for the six months ended June 30, 2023, showed a loss of HKD (34,987) thousand, compared to a loss of HKD (50,085) thousand in the same period of 2022, indicating an improvement in performance[78]. Business Segments - The East Kui business segment contributed revenue of approximately HKD 27.4 million, a decline of 15.69% from HKD 32.5 million in 2022[7]. - The investment property segment contributed revenue of approximately HKD 6.4 million for the six months ended June 30, 2023, down from HKD 7.6 million in 2022, with a post-tax profit of approximately HKD 3.4 million[30]. - The sales of flowers and plants segment generated revenue of approximately HKD 1.2 million for the first half of 2023, a significant decrease from HKD 20.6 million in 2022, with a post-tax profit of approximately HKD 100,000[31]. - Revenue from the "Property Investment" segment was HKD 6,420,000, while the "Loan Financing" segment generated HKD 27,410,000, and the "Sales of Flowers and Plants" segment contributed HKD 1,243,000[94]. Debt and Financing - As of June 30, 2023, the total receivables from loans amounted to approximately HKD 513.4 million, compared to HKD 520.1 million as of December 31, 2022[9]. - The company has established short-term loan and factoring agreements with 14 borrowers as of June 30, 2023, unchanged from December 31, 2022[7]. - The company is actively seeking legal advice regarding the recovery of outstanding debts from a borrower, with a court ruling in its favor for a repayment of approximately HKD 27 million[10]. - The company has reduced its investment scale in factoring and re-factoring businesses to mitigate operational risks in a volatile economic environment[7]. - The company plans to continue focusing resources on shorter-term, lower-risk financing options in response to the challenging market conditions[7]. - The total amount of receivables pledged as collateral across various agreements amounts to approximately RMB 65.5 million (about HKD 70.7 million)[21]. Cash Flow and Assets - As of June 30, 2023, the group held cash and bank balances of approximately HKD 95 million, down from approximately HKD 147.3 million as of December 31, 2022[49]. - The current ratio as of June 30, 2023, was approximately 11.0, compared to 11.5 as of December 31, 2022[49]. - The group had no capital debt ratio as of June 30, 2023, and maintained a net cash level sufficient to meet operational funding requirements[51]. - The total cash and cash equivalents as of June 30, 2023, amounted to HKD 95,048 thousand, up from HKD 63,140 thousand at the end of June 2022[80]. - The total equity attributable to owners of the company decreased to HKD 729,032 thousand as of June 30, 2023, from HKD 764,019 thousand at the beginning of the year, reflecting a decline in retained earnings[78]. Corporate Governance - The company maintained compliance with corporate governance codes and has established an audit committee consisting of three independent non-executive directors[66][70]. - The company has reviewed its corporate governance practices to ensure adherence to the latest developments in corporate governance[67]. - There were no reported breaches of the standard code of conduct by employees during the six months ended June 30, 2023[68]. Market Outlook and Strategy - The company anticipates a stable economic recovery in China, with expectations for continued positive performance in the second half of 2023[34]. - The company plans to enhance market research and analysis for its Dongkui business, aiming to increase customer diversity and explore new business models[35]. - The Shanghai government has issued policies to strengthen investment promotion, encouraging various capital inflows, which will provide broader development space for loan financing businesses[36]. - The Shanghai government has introduced measures to support the growth of small and micro enterprises, which will enhance the demand for factoring services[39]. - The group aims to enhance risk management in its factoring business and explore new business models to meet diverse financial needs[39]. Employee and Operational Metrics - The group employs 30 full-time staff as of June 30, 2023, maintaining a compensation structure based on market practices and individual performance[48]. - The company incurred employee costs of HKD 4,220,000 for the six months ended June 30, 2023, compared to HKD 3,881,000 in the same period of 2022, reflecting an increase of approximately 9%[95]. Shareholder and Capital Structure - Major shareholders held approximately 61.64% of the company's issued shares as of June 30, 2023[61]. - The group did not recommend an interim dividend for the six months ended June 30, 2023, consistent with the previous year[56]. - The group had no borrowings, either current or non-current, as of June 30, 2023[51]. - The total issued and paid-up capital remained at HKD 1,174,378 million for 1,274,039,000 ordinary shares as of June 30, 2023[110].
东银国际控股(00668) - 2023 - 中期财报