Financial Performance - Revenue decreased by 13.0% to HKD 185.3 million for the six months ended June 30, 2022[5] - Gross profit decreased by 19.2% to HKD 107.6 million for the same period[5] - Profit attributable to owners of the company was HKD 85.1 million, with basic earnings per share of HKD 0.0134[5] - The group's revenue for the six months ended June 30, 2022, was HKD 185.3 million, a decrease of 13.0% compared to the same period last year[13] - Gross profit for the same period was HKD 107.6 million, down 19.2% year-on-year[13] - The attributable profit to the company's owners was HKD 85.1 million, compared to a loss of HKD 114.4 million in the same period last year; basic earnings per share were HKD 0.0134, compared to a loss per share of HKD 0.0227 last year[13] - Total revenue for the six months ended June 30, 2022, was HKD 185,309,000, a decrease of 13.1% from HKD 213,117,000 in the same period of 2021[99] - The net profit for the six months ended June 30, 2022, was HKD 97,268,000, compared to a loss of HKD 97,394,000 in 2021, indicating a significant turnaround[101] - The company's basic and diluted earnings per share for the period were HKD 1.34, compared to a loss per share of HKD 2.27 in the previous year[99] - Total comprehensive income for the period was a loss of HKD 536,358,000, compared to a gain of HKD 526,700,000 in the same period of 2021[101] Economic Context - China's GDP for the first half of 2022 was RMB 56,264.2 billion, growing by 2.5% year-on-year[10] - The average disposable income per capita in China was RMB 18,463, with a nominal growth of 4.7% year-on-year[10] - The U.S. inflation rate reached a 40-year high, with June figures at 9.1%[8] - The European Central Bank has initiated a rate hike plan for the first time in eight years, marking a significant turning point[7] - The company anticipates that the economic impact of rising energy prices in Europe will be approximately 30% greater than in the U.S.[6] - The global economic growth is projected to slow from 6.1% last year to 3.2% this year, a decrease of 0.4 percentage points from previous forecasts[54] - China's economic growth for the first half of the year was 2.5%, indicating a significant effort is needed in the second half to meet the government's target of around 5.5%[56] - The ongoing challenges in the global economy include rising inflation and the impact of the Russia-Ukraine conflict, affecting supply chains and consumer spending[54] Business Development and Strategy - The company is actively responding to the financial technology development direction promoted by the Chinese and Hong Kong governments[11] - The company has invested in ZhongAn Online P&C Insurance Co., Ltd. and established a joint venture, ZhongAn Technology (International) Group Limited[11] - The company has entered into a partnership with Zhong An Bank to provide investment fund services, marking a strategic expansion into new business areas[24] - The company plans to leverage Hong Kong's international advantages to expand its business and enhance user experience in financial technology[32] - The company has actively sought breakthroughs in new business areas, including providing investment services to other financial institutions[24] - ZA Bank launched a partnership with Hong Kong Chubb Insurance to offer five comprehensive life insurance products, including critical illness and retirement plans, through its app[37] - ZA Insure introduced the "ZA Savings Plan 2" with a guaranteed average return rate of 2.5% per annum, enhancing user flexibility in achieving financial goals[38][39] - As of June 30, 2022, ZA Tech has expanded its footprint in multiple Asian markets, including Japan, Singapore, Malaysia, and Indonesia, and is now entering Vietnam, Thailand, and the Philippines[41] - ZA Tech became an investor in Aladin Bank, Indonesia's first Islamic digital bank, focusing on expanding its business ecosystem and promoting inclusive finance[42] - ZA Tech partnered with Sumitomo Life Insurance to launch an innovative heatstroke insurance product via the PayPay platform, receiving positive market feedback[42] Investment and Financial Position - The investment in Zhong An International has a carrying value of approximately HKD 996 million as of June 30, 2022, representing 8.3% of the total assets[31] - Zhong An International's project loss attributable to the group was HKD 101.1 million for the six months ended June 30, 2022, compared to a loss of HKD 156.4 million in the same period last year[34] - The fair value of redeemable preferred shares as of June 30, 2022, was approximately HKD 305.1 million, down from HKD 633.5 million as of December 31, 2021[28] - The company believes that the investment in Zhong An International is a long-term investment with expected performance improvement in the coming years[32] - The company has pledged HKD 9.824 billion to banks as collateral for general bank financing as of June 30, 2022[60] - The company's cash and bank balances reached HKD 31.785 billion as of June 30, 2022, up from HKD 29.744 billion on December 31, 2021[62] - The net proceeds from the rights issue were approximately HKD 788.2 million, with intended uses including debt repayment and further investment in fintech[52] - The company's total liabilities included non-current liabilities of HKD 8,354,370,000 as of June 30, 2022[65] - The company's total equity decreased to HKD 8,801,925 thousand from HKD 9,338,283 thousand, reflecting a decline of approximately 5.7%[105] Operational Challenges - Rental income for the six months ended June 30, 2022, totaled HKD 82.6 million, a decrease of 23.6% year-on-year, impacted by a week-long lockdown in Shenzhen[14] - The occupancy rate of the office space in the "Bai Shi Da Building" was approximately 37% as of June 30, 2022[15] - The group continues to enhance risk management in its financing leasing and factoring businesses due to the impact of the COVID-19 pandemic[23] - The company did not declare an interim dividend for the six months ended June 30, 2022, retaining resources for business development[68] - The group employed approximately 650 full-time employees as of June 30, 2022, and provided various benefits including medical and retirement benefits[69] Accounting and Compliance - The audit committee, consisting of three independent non-executive directors, reviewed the unaudited interim financial information for the six months ended June 30, 2022[74] - The financial data presented is unaudited and should be read in conjunction with the annual report for the year ended December 31, 2021[120] - The company is currently assessing the impact of newly issued accounting standards and interpretations[141] - The company plans to continue evaluating the comprehensive impact of new accounting standards on its financial reporting[141] Shareholder Information - Asia Pacific holds 3,272,309,301 shares, representing approximately 51.34% of the company's issued shares as of June 30, 2022[91] - The company did not purchase, sell, or redeem any of its listed shares during the period ended June 30, 2022[70] - The company did not declare any dividends during the interim period, consistent with the previous year[167]
百仕达控股(01168) - 2022 - 中期财报