Financial Performance - For the six months ended September 30, 2022, the Group recorded gross proceeds from the disposal of securities of approximately HK$24.6 million, up from approximately HK$15.2 million for the same period in 2021, representing an increase of approximately 62%[9]. - Revenue decreased from approximately HK$2.4 million for the six months ended September 30, 2021, to approximately HK$2.0 million for the current period, a decrease of approximately 18%[9]. - Profit attributable to the owners of the Company decreased from approximately HK$15.8 million for the six months ended September 30, 2021, to approximately HK$12.4 million for the current period[9]. - The net profit for the period was approximately HK$16.9 million, excluding non-cash share-based payments of approximately HK$4.5 million[9]. - For the six months ended September 30, 2022, the profit attributable to shareholders was HK$12,431,000, a decrease of 21.5% from HK$15,792,000 in the same period of 2021[116]. - The total comprehensive income for the period attributable to shareholders was HK$12,431,000, compared to HK$15,792,000 in the previous year, indicating a decrease of 21.5%[116]. - Basic earnings per share decreased to 3.65 HK cents from 5.52 HK cents, representing a decline of 33.9%[116]. - The diluted earnings per share (EPS) for the six months ended September 30, 2022 was 3.44 HK cents, down from 5.28 HK cents in 2021, indicating a decline of 34.8%[142]. Assets and Liabilities - The unaudited consolidated net assets of the Group as of September 30, 2022, amounted to approximately HK$250.2 million, an increase from approximately HK$209.7 million as of March 31, 2022[9]. - The net asset value per share was approximately HK$0.61 as of September 30, 2022, down from approximately HK$0.65 as of March 31, 2022[10]. - The Group's cash and cash equivalents increased to approximately HK$41.5 million as of 30 September 2022, up from approximately HK$10.8 million as of 31 March 2022[72]. - The gearing ratio as of 30 September 2022 was 1.9%, a decrease from 6.0% as of 31 March 2022, indicating a healthier financial position[75]. - The total equity increased to HK$250,213,000 as of September 30, 2022, from HK$209,715,000 as of March 31, 2022, reflecting an increase of 19.4%[117]. - Current assets increased to HK$232,315,000 as of September 30, 2022, up from HK$200,457,000 as of March 31, 2022, reflecting an increase of 15.9%[117]. - Net current assets improved to HK$224,544,000, compared to HK$184,454,000 as of March 31, 2022, marking an increase of 21.8%[117]. - Non-current assets decreased to HK$25,669,000 as of September 30, 2022, from HK$25,261,000 as of March 31, 2022, a slight decrease of 1.6%[117]. Investment Portfolio - The Group's investment portfolio was valued at approximately HK$204.5 million as of September 30, 2022[16]. - The investment portfolio included HK$166.8 million in listed equities, HK$28.7 million in debt investments, and HK$9.0 million in direct investments in unlisted equities[15]. - The Group's investment strategy focuses on unlisted equity securities, unlisted debt securities, and listed equity securities in Hong Kong and China[16]. - The profit on listed investments for the period was approximately HK$18.0 million, consisting of a net realised gain of HK$5.1 million and a net unrealised gain of HK$12.8 million[34]. - The Group recorded an unrealized gain of approximately HK$22.2 million from its equity investment in WLS Holdings Limited during the period[150]. - The company is actively exploring investment opportunities to diversify its business and strengthen overall development in line with government strategic plans for property construction and infrastructure investment[149]. Share Capital and Dividends - The Group raised approximately HK$16.9 million through the placing of 65,000,000 new shares at a price of HK$0.26 per share, representing a discount of approximately 13.3% to the closing price on 19 August 2022[62][64]. - The net proceeds from the placing, after expenses, were approximately HK$16.5 million, with HK$4.8 million utilized for working capital and investments by 30 September 2022[64]. - The Board has resolved not to recommend a payment of an interim dividend for the period ending September 30, 2022[59]. - The company did not recommend the payment of a dividend for the six months ended 30 September 2022, consistent with the previous year where no dividend was paid[138]. Employee and Operational Costs - The total employee costs for the Group were approximately HK$3.9 million for the six months ended 30 September 2022, down from approximately HK$4.2 million in the previous year[78]. - Total directors' remuneration decreased to HK$1,409,000, a reduction of 26% from HK$1,908,000 in the previous year[133]. - Total staff costs (excluding directors' remuneration) were HK$3,884,000, down 8% from HK$4,230,000 in the prior year[133]. - Non-cash share-based payments decreased to approximately HK$3.5 million for the six months ended 30 September 2022, down from HK$3.8 million in the same period of 2021[79]. Corporate Governance and Compliance - The company has complied with the Code on Corporate Governance Practices throughout the six months ended September 30, 2022, with some deviations noted[107]. - The roles of the Chairman and the Chief Executive Officer are currently being separated, with efforts underway to fill the vacancies[108]. - All directors have confirmed compliance with the required standards for securities transactions throughout the reporting period[109]. - The Audit Committee reviewed the unaudited consolidated results for the six months ended September 30, 2022, including discussions on internal controls and risk management[110]. Market Conditions and Future Outlook - The economic environment remains uncertain due to the pandemic, with potential impacts on market volatility amid geopolitical tensions, particularly the Russia-Ukraine war[155]. - The company anticipates facing lending risks that may affect loan demand due to the unpredictable economic environment[161][165]. - Power Financial will continue to monitor market conditions and seek potential investment opportunities to expand its business segments[161][165]. - The management believes that Power Financial can spur revenue growth and create more value despite the challenges posed by the current economic climate[164][166].
中国投融资(01226) - 2023 - 中期财报