Financial Reporting and Compliance - The Group's interim financial information is prepared in accordance with HKAS 34, with no significant issues identified during the review[10]. - The condensed consolidated interim statement of comprehensive income for the six-month period ended June 30, 2022, is included in the report[6]. - The Group's financial position as of June 30, 2022, is detailed in the condensed consolidated interim statement of financial position[7]. - The report includes a summary of significant accounting policies and other explanatory notes relevant to the interim financial information[9]. - The review was conducted in accordance with Hong Kong Standard on Review Engagements 2410, focusing on inquiries and analytical procedures[9]. - The Group's directors are responsible for the preparation and presentation of the interim financial information[9]. - The auditor's conclusion indicates that the interim financial information is materially accurate and compliant with relevant standards[10]. - The report emphasizes the importance of compliance with the Rules Governing the Listing of Securities on The Stock Exchange of Hong Kong Limited[9]. - The Group's financial data is subject to review procedures that are less extensive than a full audit[9]. - The report is prepared by BDO Limited, a certified public accountant firm, ensuring professional oversight of the financial information[11]. Financial Performance - Revenue for the six months ended June 30, 2022, was HK$44,544,000, a 2.8% increase from HK$43,318,000 in 2021[13]. - Profit before income tax for the period was HK$32,721,000, compared to HK$32,050,000 in the same period last year, reflecting a growth of 2.1%[13]. - Comprehensive income attributable to owners of the Company for the period was HK$27,426,000, up from HK$26,842,000 in 2021, indicating a 2.2% increase[13]. - Basic and diluted earnings per share increased to 6.9 HK cents from 6.7 HK cents, representing a growth of 2.99%[13]. - The Group's profit and total comprehensive income for the six months ended June 30, 2022, was approximately HK$27.4 million, representing a slight increase of approximately HK$0.6 million or 2.2% from approximately HK$26.8 million for the six months ended June 30, 2021[133]. Assets and Liabilities - Total assets as of June 30, 2022, were HK$888,371,000, a decrease from HK$905,458,000 as of December 31, 2021[15]. - Total equity attributable to owners of the Company increased to HK$861,687,000 from HK$855,461,000, marking a rise of 0.4%[15]. - Current assets rose to HK$457,009,000 from HK$440,843,000, reflecting a growth of 3.7%[15]. - Loans receivable increased significantly to HK$409,676,000 from HK$319,863,000, a substantial rise of 28.0%[15]. - Total liabilities decreased to HK$26,684,000 from HK$49,997,000, indicating a reduction of 46.6%[17]. - Cash and cash equivalents decreased to HK$28,152,000 from HK$82,330,000, a decline of 65.8%[15]. Cash Flow and Financing Activities - For the six months ended June 30, 2022, the net cash used in operating activities was HK$22,571,000, a decrease from HK$42,331,000 generated in the same period of 2021[23]. - Cash flows from investing activities resulted in a net cash outflow of HK$88,000, compared to a net inflow of HK$3,000 in 2021[23]. - The net cash used in financing activities was HK$31,519,000, a significant reduction from HK$64,429,000 in the previous year[23]. - Cash and cash equivalents at the end of the period were HK$28,152,000, down from HK$110,740,000 at the end of June 2021[23]. - The company reported a cash outflow of HK$65,671,000 from operations, with loan interest received amounting to HK$43,546,000 and interest paid of HK$446,000[23]. Business Operations - The company is primarily engaged in the money lending business, providing property mortgage loans and personal loans in Hong Kong[25]. - All revenue and assets were generated from and located in Hong Kong during the six months ended June 30, 2022, maintaining a consistent operational focus[44]. - The Group maintained stringent credit control while gradually expanding its loan portfolio during the reporting period[113]. Risk Management and Impairment - There were no significant changes in the risk management policies since the last year end of December 31, 2021[39]. - The carrying amounts of financial assets and financial liabilities measured at amortised cost approximate their respective fair values[40]. - The net charge for impairment assessment on loans receivable was HK$(970,000) for the six months ended June 30, 2022, compared to a net reversal of HK$197,000 in the same period of 2021[52]. - The maximum exposure to credit risk as of June 30, 2022, is the carrying amount of the loans receivable, which is HK$835,789,000[76]. - As of June 30, 2022, all loans receivable, except for HK$1,240,000, are secured by collaterals provided by customers[77]. Taxation - The effective Hong Kong profits tax rate for the group was 8.25% for the first HK$2,000,000 of estimated assessable profits and 16.5% for profits above that threshold[60]. - The Group's income tax expense for the current year was HK$5,295,000, compared to HK$5,208,000 in the previous year, reflecting a slight increase[62]. - A tax provision of HK$4,522,000 has been made in respect of tax enquiries, indicating that adequate provision has been considered by the Company[64]. - The Group's effective tax rate was 16.2% for both the six months ended June 30, 2022, and June 30, 2021[128]. Employee and Administrative Expenses - Administrative expenses decreased to HK$10,952,000 in the first half of 2022 from HK$11,317,000 in 2021, reflecting a reduction of approximately 3.22%[49]. - The total employee benefit expenses for the six months ended June 30, 2022, were approximately HK$5.0 million, compared to HK$5.2 million for the same period in 2021[143]. - The Group employed 18 full-time employees as of June 30, 2022, a decrease from 20 employees as of December 31, 2021[146]. Future Outlook - The Group expects the economy in Hong Kong to gradually rebound in the second half of 2022, but loan growth momentum may be constrained due to tightening monetary policy and geopolitical tensions[158]. - The Group will continue to implement stringent cost control measures and strengthen its treasury management to uphold profitability despite subdued loan demand[159]. - The Group does not have any detailed plans for material investments or large-scale new product launches currently, but will focus on improving existing products and services[160]. Share Capital and Ownership - The entire issued share capital of Blossom Spring, which holds 300,000,000 shares (75% of the company), is owned by Ms. Jin Xiaoqin[179]. - Mr. Wong Tai Wai, as the spouse of Ms. Jin, is deemed to have an interest in the same number of shares[187]. - As of June 30, 2022, no other directors or chief executives had registered any interests or short positions in the shares of the company[183]. - The Share Option Scheme allows the issuance of a maximum of 40,000,000 shares, representing 10% of the shares in issue as of November 11, 2015[196]. - The total number of shares that may be issued upon exercise of all outstanding options must not exceed 30% of the shares in issue at any time[197].
环球信贷集团(01669) - 2022 - 中期财报