Company Overview - For the six months ended June 30, 2022, Da Yu Financial Holdings Limited primarily engaged in corporate finance advisory, asset management, securities broking, and money lending services [8]. - The Group's principal activities include dealing in securities, advising on corporate finance, and asset management, among others [121]. Acquisitions and Investments - The Group completed the acquisition of Morgan Finance on March 1, 2022, which holds a money lenders license to operate in Hong Kong [8]. - The Group completed the acquisition of two mortgage loan portfolios for approximately HK$42.8 million on 26 April 2022 [27]. - The acquisition of Morgan Finance in March 2022 for approximately HK$42.8 million enhances the Group's capability to offer comprehensive financial services [33]. Financial Performance - Revenue for the Interim Period was approximately HK$44.7 million, an increase of 102.3% compared to HK$22.1 million in 2021 [13]. - The Group recorded a net profit of approximately HK$21.8 million, representing an increase of approximately HK$24.3 million from a net loss of HK$2.5 million in 2021 [13]. - Revenue from corporate finance advisory and related services was approximately HK$26.4 million, up from approximately HK$11.4 million in 2021 [11]. - Revenue from asset management services was approximately HK$7.6 million, down from approximately HK$9.3 million in 2021 [11]. - Revenue from money lending and related business was approximately HK$8.8 million, compared to nil in 2021 [11]. - Services revenue for the six months ended June 30, 2022, was HK$44,237,000, a 100.0% increase from HK$22,077,000 in 2021 [99]. - Profit before income tax for the period was HK$25,959,000, compared to a loss of HK$2,487,000 in the same period last year [99]. - Total comprehensive income attributable to the owners of the Company was HK$21,823,000, a significant recovery from a loss of HK$2,453,000 in 2021 [99]. - Basic and diluted earnings per share for the period were both 1.92 HK cents, compared to a loss of 0.22 HK cents in the previous year [99]. Assets and Liabilities - As at 30 June 2022, total assets were approximately HK$686.4 million, an increase from approximately HK$679.1 million as of 31 December 2021 [15]. - Total liabilities decreased to approximately HK$198.2 million from approximately HK$212.7 million as of 31 December 2021 [15]. - The Group's current ratio was approximately 150.8% as of 30 June 2022, compared to 151.7% as of 31 December 2021 [13]. - Net assets increased to HK$488,187,000 as of June 30, 2022, compared to HK$466,364,000 at the end of 2021 [104]. - The Company reported a net current asset position of HK$95,460,000 as of June 30, 2022, compared to HK$104,197,000 at the end of 2021 [101]. Employee Information - As of June 30, 2022, the Group had 30 employees, an increase from 29 employees as of December 31, 2021 [38]. - Employee benefit expenses totaled approximately HK$7.4 million for salaries, HK$0.3 million for mandatory provident fund, and HK$0.2 million for Directors' fees during the Interim Period, compared to HK$6.0 million, HK$0.3 million, and HK$0.2 million respectively in 2021 [40]. - The Group encourages continuous training and development for employees, viewing them as important assets [38]. Shareholder Information - As of June 30, 2022, Lee Wa Lun held 19.94% of the shares, amounting to 227,250,000 shares, making him the largest shareholder [47]. - Liu Yau Cheung holds 75,605,000 shares, representing 6.64% of the company's total shares [54]. - Chen Jian holds 57,360,000 shares, which accounts for 5.03% of the company's total shares [54]. - Heritage Riches Limited and Mariner Far East Limited hold 234,670,000 shares and 96,990,000 shares respectively, both controlled by First Steamship S.A. and First Mariner Holding Limited [57]. - BH Equities, wholly owned by Mr. Lau, holds 75,590,000 shares, along with Mr. Lau's personal interest in 10,000 shares and family interest in 5,000 shares [59]. - Universal Way Limited holds 63,475,000 shares, indirectly owned by AGL through its subsidiaries [59]. - ASM Connaught House Fund LP and ASM Connaught House (Master) Fund III LP hold 45,850,000 shares and 11,510,000 shares respectively, both controlled by ASMH [59]. Governance and Compliance - The Company has complied with all applicable code provisions set out in the Corporate Governance Code during the Interim Period [72]. - The Audit Committee reviewed the unaudited interim condensed consolidated financial statements for the six months ended June 30, 2022 [71]. - The Company has adopted the Model Code for securities transactions by Directors and confirmed compliance during the Interim Period [83]. - The Company’s independent auditor conducted a review in accordance with Hong Kong Standard on Review Engagements 2410 [71]. Future Prospects and Market Conditions - The Group's future prospects for 2022-2023 depend on income recognition from corporate finance transactions and the renewal of the investment management agreement with SHK [40]. - The Stock Exchange's reforms have reduced new listing applications, impacting the Group less significantly than other licensed corporations [40]. - The Group continues to seek opportunities in advising contentious and hostile situations, which remains an attractive business segment [40]. Cash Flow and Financial Activities - The company reported a net cash outflow of HK$13,457,000 for the six months ended June 30, 2022, compared to a net cash inflow of HK$33,205,000 in 2021 [115]. - The total cash and cash equivalents at the end of the period were HK$86,055,000, down from HK$113,027,000 at the end of the previous period [118]. - The company incurred finance costs of HK$51,000 in the first half of 2022, slightly down from HK$59,000 in the same period of 2021 [115]. - The company recognized a fair value loss on financial assets of HK$1,623,000 for the period, compared to a loss of HK$7,475,000 in the previous year [115]. Segment Performance - The Group's reportable segments include corporate finance services, asset management services, securities and related services, and money lending business [146]. - The Group's financial performance reflects a focus on resource allocation and assessment of segment performance based on the type of services provided [146]. - Major customers contributed significantly to revenue, with Customer A generating HK$8,043,000, Customer B HK$8,000,000, and Customer C HK$8,000,000, indicating a strong reliance on key clients [183]. - The concentration of credit risk is notable, with 41.8% of total mortgage loans and term loans due from the largest customer and 63.2% from the five largest customers in the money lending segment [185].
大禹金融(01073) - 2022 - 中期财报