Financial Performance - The group recorded a total revenue loss of HKD 109.62 million for the six months ended June 30, 2022, compared to a revenue of HKD 127.47 million for the same period in 2021, representing a decrease of 186%[16]. - The group reported a pre-tax loss of HKD 201.62 million for the six months ended June 30, 2022, compared to a pre-tax profit of HKD 5.26 million for the same period in 2021[16]. - The brokerage and margin financing, corporate finance, asset management, and proprietary trading businesses generated a total income and other income of HKD 108.59 million, down from HKD 131.93 million in the previous year[16]. - The group's proprietary trading business recorded a negative income of HKD 115.12 million, a significant decrease from the income of HKD 116.89 million in the same period last year, marking a decline of HKD 232.01 million[16]. - Total revenue for the six months ended June 30, 2022, was HKD (109,624) million, compared to HKD 127,473 million in the same period of 2021[42]. - The group reported a loss attributable to equity shareholders of HKD (201,619) million for the six months ended June 30, 2022, compared to a profit of HKD 5,260 million in 2021[44]. - The basic and diluted loss per share for the six months ended June 30, 2022, was (5.506) HKD, compared to earnings of 0.144 HKD per share for the same period in 2021[110]. Revenue Breakdown - The brokerage and margin financing business recorded revenue of HKD 2.11 million, a significant decrease of approximately 72% compared to HKD 7.65 million in the same period last year[17]. - Commission income from brokerage services fell to HKD 0.86 million, down about 74% from HKD 3.25 million in the same period last year, due to decreased market activity and client trading interest[18]. - Corporate finance revenue increased to HKD 3.39 million, up approximately 15% from HKD 2.94 million in the same period last year, primarily driven by an increase in underwriting and placement services[21]. - Underwriting and placement service revenue reached HKD 1.09 million, a substantial increase of 10,800% compared to the previous year, attributed to the development of the bond issuance business[22]. - The asset management business recorded no revenue during the review period, a decline from HKD 3,000 in the same period last year, impacted by market volatility and investor redemptions[24]. Market Conditions - The macroeconomic environment remains challenging, with ongoing impacts from the COVID-19 pandemic and geopolitical tensions affecting market conditions[9]. - The company anticipates potential recovery in the Hong Kong IPO market in the second half of 2022, which may benefit its corporate financing business[14]. - The total amount raised through initial public offerings (IPOs) in Hong Kong during the first half of 2022 was only HKD 19.7 billion, a dramatic drop of 90.7% year-on-year[14]. - The Hang Seng Index closed at 21,859 points at the end of June 2022, down 6.6% from the end of December 2021[13]. Financial Position - As of June 30, 2022, the total cash and bank balance of the group was HKD 182.37 million, down from HKD 285.07 million as of December 31, 2021[33]. - The net current assets amounted to HKD 962.20 million, a decrease from HKD 1,582.24 million as of December 31, 2021, with a current ratio of 21.4 times compared to 11.3 times previously[33]. - The debt-to-equity ratio was 5,274.0% as of June 30, 2022, significantly higher than 629.1% as of December 31, 2021[33]. - The total assets less current liabilities were HKD 972.26 million as of June 30, 2022, down from HKD 1,602.43 million as of December 31, 2021[46]. - As of June 30, 2022, total equity amounted to HKD 288,740,000, a decrease from HKD 283,481,000 as of January 1, 2021[52]. Operational Changes - The company employed 65 staff as of June 30, 2022, a decrease from 70 staff as of June 30, 2021[40]. - The company did not recommend the payment of an interim dividend for the review period, consistent with the previous year[8]. - There were no significant acquisitions or disposals during the review period[35]. Cash Flow and Financing - The net cash flow from operating activities for the six months ended June 30, 2022, was HKD 393,683,000, compared to HKD 250,937,000 for the same period in 2021, representing a 57% increase[59]. - The company incurred a financing cash outflow of HKD (494,162,000) for the six months ended June 30, 2022, compared to HKD (241,755,000) in 2021, reflecting an increase in financing activities[59]. - The company’s accumulated losses as of June 30, 2022, were HKD (937,180,000), slightly improved from HKD (942,440,000) as of January 1, 2021[52]. - The company’s cash and cash equivalents decreased by HKD 101,630,000 during the six months ended June 30, 2022, compared to an increase of HKD 8,619,000 in the same period of 2021[59]. Accounts Receivable and Payable - The total accounts receivable as of June 30, 2022, was HKD 917,404,000, compared to HKD 745,772,000 at the end of 2021[119]. - The provision for impairment of accounts receivable was HKD 537,575,000, slightly down from HKD 539,917,000 at the end of 2021[119]. - The aging analysis of accounts receivable shows that HKD 1,330 million (83%) is overdue between 31 to 90 days, while only HKD 14 million (less than 1%) is overdue for more than 180 days[134]. - The company reported accounts payable related to securities brokerage services of HKD 68,669 million as of December 31, 2021, with no new accounts payable reported for June 30, 2022[194]. Bond Issuance - The company issued USD 178 million in three-year bonds in February 2021 to repay USD 200 million due in April 2021, improving liquidity ratios[33]. - The company issued bonds totaling $178 million on February 9, 2021, with a fixed annual interest rate of 4.00%[200]. - The 2021 USD bonds are listed on the stock exchange and will mature on February 9, 2024[200].
西证国际证券(00812) - 2022 - 中期财报