Financial Performance - The net loss attributable to owners of the Company was approximately HK$8,819,000, a decrease of approximately HK$7,658,000 from the loss of approximately HK$16,477,000 in the last interim financial period[15]. - The decrease in loss position was mainly due to an increase in net gain on financial assets at fair value through profit or loss of approximately HK$5,263,000[16]. - The decrease in administrative costs was approximately HK$2,696,000 during the reporting period[16]. - Loss from operations narrowed to HK$2,573,615, compared to a loss of HK$10,521,387 in the previous year[118]. - Loss before tax improved to HK$8,819,390 from HK$16,477,319, indicating a reduction of about 47%[118]. - Basic and diluted loss per share decreased to HK$0.41 from HK$0.85, representing a 52% improvement[118]. - The Group incurred a net loss of approximately HK$8,819,000 for the six months ended June 30, 2022[136]. - The company incurred a loss from operations of HK$8,819,390 for the six months ended June 30, 2022, an improvement from a loss of HK$16,477,319 in the same period of 2021[179]. Investment Portfolio - The Company's investment portfolio included a net unrealised gain of approximately HK$2,813,000 from fair value changes of listed equity investments and unlisted investment funds[14]. - The Company has maintained a diversified investment portfolio across different business sectors, including education and equity and debt securities[13]. - The investment strategy for Fixed Income Products A and B targets a 10% annual return with manageable risks[36]. - The investment objective is to achieve a stable annual return of around 10% with manageable risks[41]. - The investment portfolio includes a private bond investment of HK$32,000,000 with a carrying value of HK$34,071,025 as of June 30, 2022[41]. - The investment portfolio also includes a private bond investment of HK$28,000,000 with a carrying value of HK$29,219,330 as of June 30, 2022[47]. - The investment strategy emphasizes diversification through alternative assets like art and antiques to hedge against market risks[39]. - The current geopolitical crisis has made the investment more appealing as investors become more risk-averse[41]. - The investment mandate aims for capital growth across various asset classes with an expected annual return of approximately 10%[48]. - The Group's investment in Fixed Income Product A has a carrying value of HK$12,485,642, with an initial investment of HK$12,000,000[31]. - Fixed Income Product B has a carrying value of HK$6,257,171, with an initial investment of HK$6,000,000[38]. - A private bond with a 12% annual interest rate was selected, issued by a European industry leader in metal powder technology, indicating strong growth potential[43]. - The investment in a private bond of 10% annual interest targets steady returns with solid fundamentals from a high-end manufacturing company[52]. Financial Position - As of 30 June 2022, the Group had cash and cash equivalents of approximately HK$3,290,000, down from approximately HK$7,745,000 at the end of 2021[20]. - The consolidated net liabilities value of the Group was approximately HK$64,335,000, with a net liabilities value per share of HK$0.0297[20]. - The Group's net liabilities amounted to approximately HK$64,335,000 as of June 30, 2022, compared to HK$55,515,000 as of December 31, 2021, with a net liability per share of HK$0.0297[22]. - The Group reported net current liabilities of approximately HK$23,365,000 and net liabilities of approximately HK$64,335,000[140]. - The gearing ratio for the Group is 150.14%, an increase from 141.90% as of December 31, 2021[66]. - The debt-to-asset ratio is 150.14%, an increase from 141.90% as of December 31, 2021[69]. - Current assets totaled HK$113,049,551, slightly down from HK$114,937,535 at the end of 2021[120]. - Unsecured borrowings increased significantly to HK$83,451,824 from HK$25,891,997, indicating a rise of approximately 222%[120]. Capital Management and Strategy - The Group plans to issue and allot ordinary shares totaling approximately HK$166,000,000 as part of its financial strategy[22]. - The Group is negotiating with convertible bondholders and corporate bondholders to restructure and refinance its borrowings[28]. - The Group aims to obtain additional financial support through loans or issuing new equity or debt securities[28]. - The Group may adjust its capital structure by issuing new shares, raising new debts, or selling assets to reduce debt[67]. - The Group's capital management objectives include maintaining an optimal capital structure to reduce the cost of capital and support stability and growth[67]. - The Group plans to leverage its market analytical capabilities to increase investments in biomedicine, new energy, and new economy sectors[80]. - The Group aims to achieve positive cash flow from operations through tightened cost control measures[139]. Governance and Compliance - The Company has complied with all code provisions of the Corporate Governance Code during the reporting period[85]. - The risk management and internal control systems are functioning effectively to safeguard shareholders' investments and the Company's assets[95]. - There were no contingent liabilities as of June 30, 2022, consistent with the previous year[74]. - The Company has not redeemed any shares during the reporting period[92]. - The Company did not grant any share options to Directors or their associates during the reporting period[106]. - The Company maintained the public float percentage required under the Listing Rules as of the date of the interim report[113]. Market Environment - The operating environment for financial markets is expected to remain challenging in the second half of 2022 due to COVID-19, rising interest rates totaling 1.5% by the US Federal Reserve, and geopolitical tensions[80]. Shareholder Information - As of June 30, 2022, Dr. XIAO Yanming holds 276,000,000 shares through Harmony Rise, representing 12.75% of the total issued share capital[99]. - Eagle Ride Investments Limited is the largest shareholder with 690,638,573 shares, accounting for approximately 31.91% of the total issued share capital[111]. - Dragon Synergy Holdings Limited holds 270,520,000 shares, which is 12.50% of the total issued share capital[111]. Revenue and Income - Revenue for the six months ended June 30, 2022, was HK$0, compared to HK$0 for the same period in 2021[118]. - The Group's revenue and net loss primarily stemmed from investments in financial assets at fair value through profit or loss (FVTPL) during the periods ended June 30, 2022, and 2021[155]. - For the six months ended June 30, 2022, the company reported a net other income of HK$65,247,000, a decrease of 14.8% compared to HK$76,564,000 for the same period in 2021[168]. - The total interest income on rental deposits decreased to HK$41,252,000 from HK$73,874,000, reflecting a decline of 44%[170]. - The company reported a net exchange loss of HK$5,000, compared to a gain of HK$2,690,000 in the prior year, indicating increased volatility in currency exchange[171]. Investment in Funds - The HF Multi-Asset Strategy Fund's net assets were approximately HK$109,397,000 as of June 30, 2022, with a carrying amount of HK$106,676,299, representing 89.23% of the Group's total net assets[193]. - The Group subscribed participating shares amounting to HK$156,500,000 in the HF Multi-Asset Strategy Fund during the year ended December 31, 2021[196]. - The Group did not receive any cash dividends from the HF Fund during the reporting period[196]. - The fund manager of HF Fund, JZ Asset Management Company Limited, is registered to conduct regulated activities and employs experienced investment professionals[200]. - JZ Financial Holdings Group Limited, the parent of the fund manager, has a founding partner with about 20 years of experience in asset management and capital markets[200]. - The fund manager specializes in various investment strategies, including non-performing loan acquisition and private equity investments[200].
金石投资集团(00901) - 2022 - 中期财报