Financial Performance - For the six months ended September 30, 2022, the Group reported revenue of HK$4,305,000, an increase of 6.3% compared to HK$4,051,000 for the same period in 2021[11]. - The loss before taxation for the period was HK$14,976,000, significantly higher than the loss of HK$1,998,000 recorded in the same period of 2021, representing a 648.4% increase[11]. - The loss per share for the period was HK$1.18, compared to HK$0.16 for the same period in 2021[11]. - For the six months ended September 30, 2022, the company reported a loss of HK$14,976,000 compared to a loss of HK$1,998,000 for the same period in 2021, representing an increase in loss of approximately 650%[51]. - The unrealised loss on listed equity investments was HK$14,976,000 for the six months ended September 30, 2022, compared to an unrealised loss of HK$4,800,000 in 2021, indicating a significant decline in investment performance[45]. - The Group recorded a net loss attributable to owners of approximately HK$14,976,000 for the six months ended 30 September 2022, compared to a net loss of approximately HK$1,998,000 in the same period last year, representing an increase in loss of approximately 648%[94]. Asset and Equity Changes - The net asset value per share decreased to HK$0.07 as of September 30, 2022, down from HK$0.08 as of March 31, 2022[12]. - Total equity as of September 30, 2022, was HK$89,581,000, a decrease from HK$104,557,000 as of March 31, 2022[12]. - The reserves decreased to HK$76,864,000 as of September 30, 2022, down from HK$91,840,000 as of March 31, 2022, reflecting the impact of the loss for the period[12]. - The net asset value decreased by 14% from HK$104.6 million to HK$89.6 million, outperforming the Hang Seng Index, which decreased by 21.7% during the same period[94]. Cash Flow and Liquidity - The Group's cash and bank balances increased to HK$4,809,000 from HK$3,950,000 as of March 31, 2022, indicating improved liquidity[12]. - For the six months ended September 30, 2022, net cash used in operating activities was HK$3,446,000, compared to HK$2,222,000 for the same period in 2021, indicating an increase in cash outflow of 55%[18]. - The net increase in cash and cash equivalents during the period was HK$859,000, a decrease of 53% compared to HK$1,829,000 in the previous year[18]. - Cash and cash equivalents at the end of the period rose to HK$4,809,000, up from HK$3,601,000, reflecting an increase of 33.5%[18]. - The Group's total cash and bank balances at the end of the period were HK$4,809,000, compared to HK$3,601,000 at the end of the previous period, indicating a significant improvement in liquidity[18]. Investment Performance - The Group's financial assets at fair value through profit or loss decreased to HK$84,004,000 from HK$100,544,000 as of March 31, 2022, indicating a decline in investment value[12]. - The fair value of listed equity securities decreased to HK$82,287,000 as of September 30, 2022, down from HK$97,245,000 as of March 31, 2022, reflecting a decline of approximately 15.4%[54]. - The market value of unlisted equity securities was HK$1,717,000 as of September 30, 2022, down from HK$3,299,000 as of March 31, 2022, indicating a decline of approximately 48.0%[54]. - Realized and unrealized losses on financial assets at fair value through profit or loss increased to approximately HK$16.5 million for the period ended 30 September 2022, up from HK$4.1 million in the corresponding period[94]. Administrative and Operating Expenses - Administrative and other operating expenses rose to HK$2,821,000, compared to HK$2,153,000 in the previous year, reflecting a 31.0% increase[11]. - The investment management fee paid to a related company was HK$746,000 for the six months ended September 30, 2022, down from HK$807,000 in 2021, representing a decrease of approximately 7.5%[45]. - There was no performance fee for the six months ended September 30, 2022, and 2021, and the management fee has been included under administrative and other operating expenses[69]. Dividend Information - The company did not declare any interim dividend for the six months ended September 30, 2022, consistent with the previous year where no dividend was declared[63]. - The Group has not recommended any interim dividend for the period[197]. Market Conditions and Economic Factors - The U.S. Federal Reserve raised interest rates four times for a total of 2.75% during the second and third quarters of 2022, targeting a range of 3% to 3.25% by the end of September 2022[100]. - The Dow Jones Index decreased sharply by approximately 17% from 34,678 at the end of March 2022 to 28,725 at the end of September 2022, reflecting market volatility and recession fears[100]. - U.S. inflation peaked at 8.2%, leading to concerns about a recession and a significant drop in the Dow Jones Index by approximately 17% from 34,678 at the end of March 2022 to 28,725 at the end of September 2022[101]. - The Hong Kong Stock Index (HSI) fell sharply by approximately 22% from 21,996 at the end of March 2022 to 17,222 at the end of September 2022, influenced by U.S. interest rate hikes and COVID-19 resurgence[106]. Shareholding and Ownership - Fung Fai Growth Limited holds approximately 26.74% of the Company, while CCAA Group Limited holds approximately 74.29% interest in Upbest Group Limited[14]. - The ultimate beneficial owner of Fung Fai Growth Limited and CCAA Group Limited is Cheng's Family Trust[14]. Compliance and Reporting Standards - The Group's financial statements have been prepared in accordance with Hong Kong Accounting Standard 34, ensuring compliance with relevant reporting standards[23]. - The application of new amendments to Hong Kong Financial Reporting Standards did not have a material impact on the Group's financial positions and performance[32].
开明投资(00768) - 2023 - 中期财报