Financial Performance - Revenue for the six months ended June 30, 2022, was HKD 2,973,645, a decrease of 24.4% compared to HKD 3,931,313 for the same period in 2021[2] - The company reported a loss before tax of HKD 641,650 for the six months ended June 30, 2022, compared to a profit in the same period of 2021[2] - The net loss attributable to owners of the company for the period was HKD 663,875, compared to a profit of HKD 41,938 in the prior year[5] - Total comprehensive loss for the period was HKD 814,090, a significant increase from a total comprehensive income of HKD 63,603 in the previous year[5] - Basic and diluted loss per share was HKD 72.26, compared to earnings of HKD 4.87 per share in the same period last year[5] - The revenue from property agency services was HKD 2,937,664 thousand, down 23.1% from HKD 3,821,157 thousand in the previous year[24] - Financing income, including interest income from receivables, was HKD 33,259 thousand, a decline of 58.1% compared to HKD 79,396 thousand in 2021[24] - The company reported a net cash used in financing activities of HKD (166,414) thousand for the period[14] - The company reported a loss of HKD 663,875 for the six months ended June 30, 2022, compared to a profit of HKD 41,938 in the same period of 2021[32][33] - The segment loss for property agency was HKD 384,600, while the financial services segment reported a profit of HKD 19,355[32] Cash Flow and Liquidity - The net cash used in operating activities for 2022 was HKD (125,746) thousand, compared to HKD 277,091 thousand in 2021[14] - The cash and cash equivalents at the end of the period were HKD 486,403 thousand, significantly down from HKD 2,973,056 thousand at the end of 2021[14] - The total cash and cash equivalents decreased by HKD 2,490,616 thousand from the beginning of the period[14] - As of June 30, 2022, the group maintained a cash and bank deposit balance of approximately HKD 487 million, down from HKD 1.721 billion as of December 31, 2021[77] - The current ratio as of June 30, 2022, was 2.16, compared to 2.32 as of December 31, 2021[77] - The total borrowings amounted to approximately HKD 381 million, down from HKD 516 million as of December 31, 2021, with a capital debt ratio of approximately 6.3%[77] Operational Changes and Strategy - The company is focusing on restructuring and improving operational efficiency to address the current financial challenges[2] - The company operates two reportable segments: property agency services and financial services, which require different business strategies[22] - The company has classified the assets and liabilities of the Poly Consulting Group as held for sale, with total assets amounting to HKD 2,784,011,000 and liabilities of HKD 1,834,244,000[53] - The company is in the process of a conditional agreement to sell its 43.9% stake in a subsidiary, which will result in the subsidiary becoming a wholly-owned subsidiary post-restructuring[49] - The group adjusted its cooperation model with Poly Development, taking over 43.9% of the equity in HeFu China and selling Poly Consulting Group, resulting in an impairment of goodwill of approximately HKD 206 million[73] Employee and Cost Management - Total employee costs for the six months ended June 30, 2022, were HKD 1,724,999, down from HKD 2,108,791 in the previous year, indicating a reduction of approximately 18.2%[37] - The group views employees as valuable assets, with approximately 18,600 full-time staff as of June 30, 2022[80] Market Conditions - The real estate market in mainland China faced significant challenges, with the top 100 property companies experiencing a sales decline of over 50% year-on-year in the first half of 2022[66] - The financial services business had a total transaction amount of approximately HKD 600 million, down from HKD 1.6 billion in the previous year, with revenue of approximately HKD 36 million compared to HKD 110 million in the prior year[74] Corporate Governance - The company has complied with the corporate governance code as per the Hong Kong Stock Exchange rules during the six months ending June 30, 2022[100] - The company secretary is a practicing lawyer, ensuring compliance with applicable laws and regulations[101] - The company has adopted the standard code of conduct for securities transactions by directors as per the listing rules and confirmed compliance[102] Shareholder Information - As of June 30, 2022, major shareholders held the following stakes: Mr. Fu Wei Cong with 340,369,807 shares (50.49%), Fu's Family Limited with 174,184,799 shares (25.84%), and China-net Holding Ltd. with 130,762,340 shares (19.40%)[93] - No stock options were granted, canceled, exercised, or lapsed during the reporting period[90] - The company has not repurchased any shares since its listing and has not purchased or sold any shares of the company or its subsidiaries[99]
合富辉煌(00733) - 2022 - 中期财报