Financial Performance - Revenue for the six months ended June 30, 2022, was HK$43,000, a decrease of 51.6% compared to HK$88,000 for the same period in 2021[3] - Loss from operations for the six months ended June 30, 2022, was HK$11,048,000, significantly improved from a loss of HK$29,364,000 in the same period of 2021, representing a reduction of 62.4%[4] - Loss before income tax for the six months ended June 30, 2022, was HK$11,055,000, down from HK$29,589,000 in the previous year, indicating a 62.7% improvement[4] - Loss for the period attributable to owners of the Company was HK$11,055,000, compared to HK$29,589,000 for the same period in 2021, reflecting a 62.7% decrease[4] - Administrative expenses for the six months ended June 30, 2022, were HK$1,978,000, a reduction from HK$2,353,000 in the same period of 2021, indicating a decrease of 15.9%[4] - For the six months ended June 30, 2022, the Group recorded a loss of approximately HK$11,055,000, a decrease from HK$29,589,000 in the same period of 2021[83] Assets and Liabilities - Net current assets as of June 30, 2022, were HK$35,127,000, down from HK$46,358,000 at the end of 2021, a decrease of 24.0%[6] - Total assets less current liabilities as of June 30, 2022, were HK$35,695,000, compared to HK$46,522,000 at the end of 2021, representing a decline of 23.4%[6] - Net assets as of June 30, 2022, were HK$35,466,000, down from HK$46,522,000 at the end of 2021, a decrease of 23.7%[7] - Share capital remained unchanged at HK$46,253,000 as of June 30, 2022[7] - Net asset value per share decreased to 15.34 HK cents as of June 30, 2022, from 20.12 HK cents at the end of 2021, a decline of 23.5%[7] Cash Flow - For the six months ended June 30, 2022, the net decrease in cash from operating activities was HK$10,790,000, compared to a decrease of HK$1,536,000 for the same period in 2021[11] - The cash and cash equivalents at the end of the period were HK$10,188,000, down from HK$14,794,000 at the end of the same period in 2021, representing a decrease of approximately 31.4%[11] - The cash flow from financing activities showed a net decrease of HK$137,000 in the first half of 2022, contrasting with a net increase of HK$16,216,000 in the same period of 2021[11] - The cash and cash equivalents at the beginning of the period were HK$21,125,000, compared to HK$120,000 at the beginning of the same period in 2021, indicating a substantial increase[11] Investments - Revenue from trading of listed equity securities for the period amounted to approximately HK$49,347,000, significantly up from HK$3,195,000 in 2021, indicating an increase of approximately 1435%[26] - The realised losses on financial assets at fair value through profit or loss for the six months ended June 30, 2022 were approximately HK$10,517,000, compared to HK$2,328,000 in 2021, reflecting an increase of approximately 352%[26] - The unrealised gains on financial assets at fair value through profit or loss were approximately HK$1,387,000 for the six months ended June 30, 2022, compared to an unrealised loss of HK$24,771,000 in 2021, indicating a significant turnaround[26] - The Group has identified only one operating segment, which is investment in listed and unlisted securities, with no separate analysis of segment information by business segment presented[29] Taxation and Grants - The Group reported government grants of HK$16,000 for the six months ended June 30, 2022, compared to none in the previous year[34] - As of June 30, 2022, the Group had unused tax losses of approximately HK$354,855,000, an increase from HK$347,292,000 as of December 31, 2021, indicating a growth of about 2.3%[38][40] - The Group did not recognize any deferred tax assets for the unused tax losses due to the unpredictability of future profit streams[38][40] - There were no significant deferred tax liabilities reported as of June 30, 2022, consistent with the previous year[39][41] Share Capital and Structure - The Group's issued and fully paid ordinary shares remained at 231,264,988 shares as of June 30, 2022, with a total share capital of HK$46,253,000[58] - The company completed a placement agreement on April 23, 2021, issuing 385,000,000 shares at HK$0.047 per share, raising approximately HK$18,100,000 in total proceeds[60] - The company proposed a capital reduction on January 27, 2022, reducing the par value of each issued share from HK$0.20 to HK$0.01 by canceling HK$0.19 per issued share, resulting in a new share structure[183] - The capital reduction, share premium reduction, and subdivision became effective on July 25, 2022, following the court's confirmation[185] - The authorized share capital remained at HK$300 million, with the number of authorized shares increasing from 1.5 billion to 30 billion after the capital reduction[188] Market Conditions - The ongoing geopolitical tensions and inflation fears have created a challenging investment environment, affecting various asset classes[77] - The Hang Seng Index dropped to an intraday low of 18,235 in mid-March 2022, closing at around 21,859 at the end of June, reflecting a 6.6% decline from the end of 2021[77] - The S&P index experienced a 20.6% drop in the first half of 2022, indicating significant weakness in the US stock market[77] - The Group's investment environment was negatively impacted by global factors, including the ongoing Russia-Ukraine conflict and inflation concerns in the US, leading to a 20.6% decline in the S&P 500 index in the first half of 2022[78] Employee and Management Compensation - As of June 30, 2022, the group had 2 employees, with total salaries (excluding directors' remuneration) for the six months ended being approximately HK$428,000, down from HK$669,000 in 2021[199] - The remuneration for key management personnel decreased to HK$492,000 for the six months ended June 30, 2022, from HK$953,000 in the same period of 2021[66]
中国金融租赁(02312) - 2022 - 中期财报