Financial Performance - For the six months ended June 30, 2022, the investment management service revenue was approximately HKD 14,802,000, a decrease of about HKD 19,400,000 compared to the same period in 2021[7]. - The loss attributable to owners for the six months ended June 30, 2022, was approximately HKD 12,817,000, compared to a profit of HKD 4,313,000 for the same period in 2021[7]. - The total operating expenses for the six months ended June 30, 2022, were HKD 28,423,000, a decrease of 37.7% compared to HKD 45,597,000 in the previous year[19]. - The IM service revenue decreased by 56.7% from HKD 34,202,000 in 2021 to HKD 14,802,000 in 2022, primarily due to a reduction in management and performance fees[19]. - The fair value loss on financial assets measured at fair value through profit or loss was HKD (35,349,000), a significant decline compared to a gain of HKD 7,410,000 in the previous year, representing a change of -577.0%[19]. - The group recorded a loss attributable to shareholders of approximately HKD 60,459,000 for the six months ended June 30, 2022, compared to a profit of HKD 9,837,000 in the same period last year, mainly due to fair value losses on financial assets and losses from associates[26]. - The company reported a loss of HKD 12,817,000 for the six months ended June 30, 2022, compared to a profit of HKD 4,313,000 in the same period of 2021[109]. - The company’s basic and diluted loss per share for continuing operations was HKD 0.53, compared to earnings of HKD 0.09 per share in the previous year[109]. - The company reported a comprehensive loss of HKD 27,846,000 for the six months ended June 30, 2022[119]. - The group reported a net loss of HKD 59,525 thousand for the six months ended June 30, 2022, compared to a profit of HKD 8,835 thousand for the same period in 2021[172]. Revenue and Expenses - Other income decreased by 6.7% from HKD 2,015,000 in the previous year to approximately HKD 1,881,000 in the current period, mainly due to lower interest income from reduced cash deposits[24]. - Total expenses decreased by approximately 37.7% to about HKD 28,423,000 from HKD 45,597,000 in the same period last year, primarily due to reduced employee benefits expenses[25]. - The total cash and deposits as of June 30, 2022, amounted to HKD 118,621,000, a decrease of approximately HKD 40,788,000 compared to the previous period[43][44]. - The cash flow from operating activities for the six months ended June 30, 2022, was a net outflow of HKD 82,028,000, compared to a net inflow of HKD 40,690,000 for the same period in 2021[122]. - The net cash used in investing activities was HKD 38,058,000 for the first half of 2022, an increase from HKD 29,756,000 in the previous year[122]. - The cash flow from financing activities resulted in a net outflow of HKD 311,000, compared to a net outflow of HKD 3,223,000 in the same period of 2021[122]. Asset Management - The assets under management (AUM) as of June 30, 2022, were approximately USD 533 million, down 45.89% from USD 985 million as of December 31, 2021, representing a decrease of about USD 452 million[19]. - The company completed the sale of its CRM business for a total consideration of HKD 219,464,000, resulting in a gain of approximately HKD 50,157,000[10]. - The group achieved a gain from the sale of discontinued operations of HKD 50,157,000, compared to no gain in the previous year[30]. - The company completed the sale of its CRMS business for HKD 219,464,000 on March 22, 2022[51]. - The company reported a cash outflow of HKD 55,034,000 related to the sale of its CRM business, net of cash sold[122]. Corporate Governance - The company appointed Mr. Geng Tao as the new CEO effective September 13, 2022, ensuring compliance with corporate governance guidelines[100]. - The audit committee confirmed the effectiveness of the risk management and internal control systems as of June 30, 2022[102]. - The company has established an audit committee to oversee financial reporting and internal control processes, consisting of three independent non-executive directors[102]. - The company aims to maintain high standards of corporate governance to protect shareholder interests[100]. Market Conditions - The Hang Seng Index fell by 6.57% and the MSCI China Index (in USD) dropped by 12.27% during the first half of 2022, impacting the group’s managed fund performance[36]. - The group recognizes ongoing market instability and volatility, particularly due to the impacts of the Russia-Ukraine war and inflation, and will continue to balance risk and return[38]. - The group implemented strict cost control measures to improve profitability amid challenging market conditions[26]. - The group’s IM business remains optimistic about its medium to long-term prospects despite the challenging environment[37]. Employee and Compensation - The total employee compensation for continuing operations for the six months ended June 30, 2022, was approximately HKD 13,049,000, down from approximately HKD 25,009,000 in the same period last year[66]. - The company had a total of 34 employees as of June 30, 2022, a significant decrease from 1,979 employees as of December 31, 2021[65]. Shareholder Information - As of June 30, 2022, the company's total equity was approximately HKD 747,327,000, with a total issued share count of 11,495,494,321 shares[42]. - The company did not recommend any interim dividend for the six months ended June 30, 2022[69]. - The company has adopted a share option scheme effective from June 4, 2020, with a remaining term of approximately 7 years and 9 months[78]. - The maximum number of shares that can be issued upon the exercise of options under the scheme is capped at 1,134,647,232 shares, equivalent to about 10% of the issued shares at the time of adoption[79]. - The company has granted a total of 334,720,000 shares under the share incentive plan, which represents approximately 2.91% of the total issued shares as of June 30, 2022[94]. Financial Position - Total assets as of June 30, 2022, amounted to HKD 837,684,000, a decrease of 23.9% from HKD 1,099,916,000 as of December 31, 2021[116]. - Total liabilities decreased to HKD 90,357,000, down 72.1% from HKD 324,707,000[116]. - The company's equity attributable to owners increased to HKD 747,327,000 from HKD 775,209,000, a decrease of 3.6%[116]. - The company’s total reserves decreased to HKD 1,462,425,000 from HKD 1,467,001,000, a decline of 0.3%[119]. Investment and Fair Value - The fair value of financial assets as of June 30, 2022, totaled HKD 248,628,000, with HKD 109,706,000 classified as Level 1, HKD 128,266,000 as Level 2, and HKD 10,656,000 as Level 3[151]. - The company holds investments in funds with a fair value of HKD 301,327,000 as of December 31, 2021, with HKD 127,668,000 classified as Level 1 and HKD 162,116,000 as Level 2[153]. - The company’s financial assets include listed equity securities valued at HKD 70,763,000 from China and HKD 12,114,000 from the United States[151].
金涌投资(01328) - 2022 - 中期财报