Financial Position - As of June 30, 2023, the total assets of the Group were HK$10,389,200,000, down from HK$11,455,300,000 as of December 31, 2022[21] - The total liabilities decreased to HK$2,809,000,000 from HK$3,901,000,000 as of December 31, 2022[21] - The total equity increased slightly to HK$7,580,100,000 from HK$7,554,300,000 as of December 31, 2022[21] - The net asset value per share was HK$2.730 as of June 30, 2023, compared to HK$2.720 as of December 31, 2022[21] - The net cash position as of June 30, 2023, was HK$3,176.5 million, a decrease from HK$3,481.8 million as of December 31, 2022[46] - The gearing ratio improved to 3.6% as of June 30, 2023, down from 13.8% as of December 31, 2022, indicating a healthier capital structure[46] - The Group had restricted bank balances of HK$1,160.7 million as of June 30, 2023, compared to HK$1,064.9 million as of December 31, 2022[46] - Cash and cash equivalents decreased to HK$3,177.6 million as of June 30, 2023, from HK$3,537.5 million as of December 31, 2022[46] - As of June 30, 2023, the Group had bank borrowings of HK$1.1 million, a significant decrease from HK$55.7 million as of December 31, 2022[47] - The Group's banking facilities amounted to approximately HK$185.2 million as of June 30, 2023, down from HK$284.0 million as of December 31, 2022[47] - The Group's restricted bank balances and cash equivalents totaled approximately HK$3,289.5 million as of June 30, 2023, compared to HK$2,693.6 million as of December 31, 2022[51] - The balance of advances from business channel partners was HK$405.0 million as of June 30, 2023, compared to HK$426.3 million as of December 31, 2022[55] - Trade receivables increased to HK$202.5 million as of 30 June 2023, up from HK$182.0 million as of 31 December 2022[152] - The Group's total trade payables amounted to HK$2,481.6 million as of June 30, 2023, a decrease from HK$2,575.9 million as of December 31, 2022[184] Revenue and Profitability - Total revenue for 1H2023 was HK$1,310,613, a decrease of 25% compared to HK$1,742,494 in 1H2022[90] - EBITDA for 1H2023 was HK$175,405, down 55% from HK$389,627 in 1H2022[85] - Operating profit decreased by 65% to HK$69,735 in 1H2023 from HK$201,163 in 1H2022[90] - Profit from continuing operations for 1H2023 was HK$357,007, compared to HK$314,987 in 1H2022, showing an increase of 13.4%[93] - Basic earnings per share for 1H2023 was HK$0.115, up from HK$0.085 in 1H2022[76] - The company reported a profit attributable to owners of HK$316,301 for 1H2023, down from HK$710,401 in 1H2022[94] - The company's profit for the period in 1H2023 was HK$357 million, a decrease of 57% compared to HK$825 million in 1H2022[104] - Total comprehensive income for the period attributable to owners of the company was HK$12.8 million, down 90% from HK$131.6 million in 1H2022[104] - Segmental turnover from external customers decreased by 29% to HK$1,023.5 million in 1H2023 from HK$1,448.8 million in 1H2022[106] - Segmental operating profit fell by 64% to HK$113.7 million in 1H2023 compared to HK$313.7 million in 1H2022[106] - The consolidated turnover for Hi Sun Technology (China) Limited in 1H2023 was HK$1,310.6 million, representing a decrease of 25% compared to HK$1,743.2 million in 1H2022[125] - The digital services business is in an expansion stage, with lower handling fees impacting revenue during the transition from traditional to digital payments[128] - The turnover from other business operations, including electronic power meters, contributed approximately 1.3% of the total consolidated turnover from continuing operations[135] - The financial solutions segment reported a turnover of HK$60.0 million in 1H2023, down from HK$62.0 million in 1H2022, but with a reduced operating loss of HK$16.1 million compared to HK$24.7 million in the prior period[134] Investment and Financial Instruments - The Group recognized a fair value gain of HK$4,339,000 on financial assets at fair value through profit or loss for the six months ended June 30, 2023[7] - The Group's financial liability related to written put options was derecognized, resulting in a reclassification to a derivative financial liability at fair value through profit or loss[17] - The first phase of the ABS Scheme had an issue size of RMB309 million (approximately HK$380.1 million) established on January 27, 2022[22] - The second phase of the ABS Scheme had an issue size of RMB362 million (approximately HK$419.9 million) established on May 20, 2022[22] - The third phase of the ABS Scheme had an issue size of RMB303 million (approximately HK$339.4 million) established on December 30, 2022[22] - The proceeds from the ABS issuance are primarily used as general working capital for the fintech services segment, improving the financing structure of the Company[22] - The maximum issue size of the asset-backed securities scheme is RMB1,000 million (approximately HK$1,230 million), which can be issued in not more than 15 phases by December 31, 2023[57] - The Group's investment cost in associated companies as of 30 June 2023 was HK$127.8 million[148] - The fair value of equity securities listed in Hong Kong was HK$1.0 million as of 30 June 2023[148] - The Group remains optimistic about the future prospects of its associated companies and will continue to assess its investment strategy prudently[166] - The Group's interest in Megahunt was valued at HK$515.2 million, representing approximately 5.0% of the Group's total assets as of June 30, 2023[172] - As of June 30, 2023, the Group held approximately 33.85% effective interest in PAX Global, valued at approximately HK$2,162.2 million, with the recoverable amount exceeding the carrying value[188] - The interest in PAX Global represented approximately 28.6% of the Group's unaudited total assets as of June 30, 2023, with an investment cost of HK$259.8 million[188] Operational Performance - The segment of payment and digital services generated revenue of HK$1,023,799, a decline of 29% from HK$1,451,052 in 1H2022[90] - Financial solutions segment revenue was HK$94,858, down from HK$101,040 in 1H2022, reflecting a decrease of 6.5%[90] - The segment turnover for fintech services was HK$115.7 million in 1H2023, a slight decrease of 2% from HK$117.5 million in 1H2022, while EBITDA increased by 130% to HK$58.9 million[130] - The operating profit for fintech services rose to HK$55.6 million in 1H2023, up 155% from HK$21.8 million in 1H2022, reflecting improved operational efficiency[130] - The overall operating loss for the company was HK$16.1 million in 1H2023, improved from a loss of HK$24.7 million in 1H2022[111] - Operating expenses increased mainly due to higher staff costs during 1H2023[137] - The Group's employee count was 2,672 as of June 30, 2023[196] Taxation and Regulatory Matters - The income tax credit for the first half of 2023 was primarily due to a subsidiary qualifying as a Software and Integrated Circuit Enterprise, resulting in a 0% corporate income tax rate for two years[35] - The Group has not entered into any agreements to hedge exchange rate risks, which may impact operating results due to fluctuations in currencies such as the Hong Kong dollar and Renminbi[50] - There were no material acquisitions or disposals of subsidiaries, associates, and joint ventures during the six months ended June 30, 2023[48] - The Group did not have any specific plans for material investments or capital assets as of June 30, 2023[49] - As of June 30, 2023, the company has no specific plans for significant investments or capital assets[197]
高阳科技(00818) - 2023 - 中期财报