Financial Performance - Total revenue for the six months ended June 30, 2022, was HKD 26,918,000, a significant decrease of 94.66% compared to HKD 502,958,000 for the same period in 2021[5]. - The company reported a net loss attributable to equity holders of HKD 245,591,000 for the six months ended June 30, 2022, compared to a profit of HKD 13,901,000 in the same period of 2021[5]. - The company’s basic and diluted loss per share for the six months ended June 30, 2022, was HKD (3.996), compared to earnings of HKD 0.226 per share in the same period of 2021[5]. - The company reported a pre-tax loss of HKD 259,755,000 for the six months ended June 30, 2022, compared to a profit of HKD 15,917,000 in the same period of 2021[27]. - The total loss before tax for the group was HKD 259,755,000, a significant decline from a profit of HKD 15,917,000 in the previous year[50]. - The company reported a net loss of HKD 246 million for the six months ended June 30, 2022, compared to a net profit of HKD 14 million in the same period of 2021[141]. - Total revenue decreased approximately 95% to HKD 27 million for the six months ended June 30, 2022, down from HKD 503 million in the same period of 2021[141]. Revenue Breakdown - For the six months ended June 30, 2022, the total revenue from the corporate finance segment was HKD 8,097,000, a decrease from HKD 21,512,000 for the same period in 2021[46]. - The asset management segment generated revenue of HKD 7,308,000, compared to HKD 17,290,000 in the previous year, reflecting a decline of approximately 57.7%[46]. - Brokerage segment revenue was HKD 117,025,000, down from HKD 163,457,000, indicating a decrease of about 28.4% year-over-year[46]. - The income from corporate finance business fees and commissions was HKD 1,352,000, down from HKD 6,441,000 in the previous year, reflecting a decrease of about 79.02%[54]. - Total revenue from core businesses decreased by 36% from HKD 427 million in the first half of 2021 to HKD 275 million in the first half of 2022[145]. - Corporate finance business revenue fell 76% from HKD 21 million in the first half of 2021 to HKD 5 million in the first half of 2022[147]. - Asset management business revenue decreased by 67% from HKD 15 million in the first half of 2021 to HKD 5 million in the first half of 2022[148]. - Brokerage business revenue dropped 40% from HKD 80 million in the first half of 2021 to HKD 48 million in the first half of 2022, attributed to a 27% decline in average daily market turnover on the Hong Kong Stock Exchange[149]. Cash Flow and Liquidity - Cash and cash equivalents as of June 30, 2022, were HKD 213,695,000, down from HKD 405,290,000 at the end of 2021[24]. - The net cash generated from operating activities for the six months ended June 30, 2022, was HKD 197,676,000, a decrease from HKD 290,711,000 for the same period in 2021[27]. - The total cash and cash equivalents at the end of the period decreased to HKD 213,695,000 from HKD 328,184,000 year-over-year[29]. - The company’s cash flow from operations included a decrease in accounts payable and other liabilities amounting to HKD 98,721,000[27]. - Cash level as of June 30, 2022, was approximately HKD 214 million, down from HKD 405 million on December 31, 2021[182]. Assets and Liabilities - Total assets amounted to HKD 6,131,188,000 as of June 30, 2022, compared to HKD 6,841,285,000 at the end of 2021, reflecting a decrease of approximately 10.4%[24]. - Total liabilities were HKD 2,781,422,000, down from HKD 3,244,490,000 at the end of 2021, indicating a reduction of about 14.3%[24]. - The company’s total equity attributable to shareholders was HKD 5,352,580,000 as of June 30, 2022[31]. - The total amount of other loans increased by HKD 1.819 billion to HKD 42.195 billion as of June 30, 2022, compared to HKD 40.376 billion on December 31, 2021[180]. - Total borrowings decreased by 23% to HKD 11.59 billion from HKD 15.03 billion as of December 31, 2021[184]. Credit Quality and Provisions - The expected credit loss expense for the period was HKD 80,570,000, a significant reduction from HKD 234,444,000 in the previous year, indicating improved credit quality[5]. - Expected credit loss provisions decreased by approximately 65% from HKD 234 million in the first half of 2021 to HKD 81 million in the first half of 2022[153]. - The expected credit loss provision for non-listed debt securities was HKD 643,184,000 as of June 30, 2022, compared to HKD 605,362,000 as of December 31, 2021, reflecting an increase in risk assessment[76]. - The cumulative expected credit loss percentage for major borrowers ranges from 20% to 73%[170]. - The company has adopted a credit risk policy to manage its lending business, ensuring compliance with applicable laws and regulations[172]. Operational Challenges and Strategies - The company is focusing on improving its financial position and exploring new strategies for market expansion and product development[5]. - The company is focused on maintaining the stability and sustainability of its brokerage, corporate finance, and asset management businesses amid macroeconomic uncertainties[181]. - The company has capital commitments of HKD 5,288,000 as of June 30, 2022, compared to HKD 2,032,000 as of December 31, 2021[109]. - The company employed 197 full-time employees in Hong Kong as of June 30, 2022, a decrease from 222 on December 31, 2021[188]. Dividends and Shareholder Information - The company did not declare any dividends for the period, consistent with the previous year[5]. - The board has decided not to declare an interim dividend for the six months ended June 30, 2022, compared to no dividend in 2021[198]. - As of June 30, 2022, Mr. Lam holds 113,072,833 shares, representing approximately 1.82% of the issued share capital[199]. - A controlled corporation holds 4,098,510,000 shares, accounting for approximately 66.13% of the issued share capital[199].
华富建业金融(00952) - 2022 - 中期财报