Financial Performance - Total revenue for the six months ended June 30, 2022, was HKD 93,195,343, a decrease from HKD 425,750,172 in the same period of 2021[15] - The company reported a loss of HKD 198,345,423 for the six months ended June 30, 2022, compared to a profit of HKD 53,831,260 in the same period of 2021[15] - Commission and fee income decreased to HKD 100,560,756 from HKD 151,048,768 year-on-year, representing a decline of approximately 33.4%[15] - Interest income for the period was HKD 18,595,371, down from HKD 73,719,676 in the previous year, indicating a decrease of about 74.8%[15] - The company incurred total operating expenses of HKD 80,873,385, compared to HKD 92,955,332 in the prior year, reflecting a reduction of approximately 13%[15] - The basic loss per share for the period was HKD (0.0496), compared to earnings per share of HKD 0.0135 in the same period last year[15] - The company’s total comprehensive loss for the period amounted to HKD 206,170,874, contrasting with a total comprehensive income of HKD 53,831,260 in the prior year[15] - Total revenue and other income for the six months ended June 30, 2022, was HKD 100,560,756, a decrease of 33.5% from HKD 151,048,768 in the same period of 2021[46] - The company reported a pre-tax loss of HKD 198,903,690 for the six months ended June 30, 2022, compared to a pre-tax profit of HKD 62,405,692 in the previous year[62] - The company reported a loss attributable to ordinary shareholders of HKD (198,345,423) for the six months ended June 30, 2022, compared to a profit of HKD 53,831,260 for the same period in 2021[69] Assets and Liabilities - Non-current assets decreased from HKD 76,002,382 to HKD 55,135,437, a decline of approximately 27.4%[19] - Accounts receivable increased significantly from HKD 1,518,484,994 to HKD 2,051,743,599, representing a growth of about 35%[19] - Current liabilities decreased from HKD 10,039,601,724 to HKD 10,514,235,059, an increase of approximately 4.7%[19] - Total equity decreased from HKD 4,387,197,972 to HKD 4,181,027,098, a decline of around 4.7%[22] - Cash and cash equivalents decreased from HKD 5,458,957,080 to HKD 4,479,497,967, a reduction of approximately 17.9%[19] - The company's net asset value decreased from HKD 6,393,158,345 to HKD 6,207,344,193, a decline of about 2.9%[19] - The company’s total liabilities increased from HKD 10,039,601,724 to HKD 10,514,235,059, an increase of about 4.7%[19] - The company’s deferred tax assets increased from HKD 121,593,827 to HKD 126,135,961, an increase of approximately 3.5%[19] - Total assets increased by 1.62% to HKD 17,066.22 million, while total liabilities rose by 3.85% to HKD 12,885.19 million as of June 30, 2022[162] Cash Flow and Financing - For the six months ended June 30, 2022, the net cash used in operating activities was HKD (862,795,844), compared to HKD (692,946,987) for the same period in 2021, representing an increase of approximately 24.5%[32] - The net cash used in financing activities was HKD (112,141,494), a significant decrease from HKD 2,562,504,287 in the same period of 2021[32] - The company raised bank loans amounting to HKD 750,000,000 during the period, compared to HKD 44,694,144,990 in the previous year[32] - The company reported a decrease in interest paid, which was HKD (55,092,067) compared to HKD (116,402,907) in the previous year, indicating a reduction of approximately 52.7%[32] - The company’s cash flow from operating activities included interest received of HKD 112,368,113, down from HKD 181,735,906 in the previous year, a decrease of approximately 38.2%[32] Revenue Breakdown - Brokerage service revenue decreased by 43.63% to HKD 68.43 million, primarily due to low investor trading activity amid market volatility[152] - Corporate finance revenue increased by 27.13% to HKD 20.43 million, driven by a 68.76% rise in debt securities placement and underwriting commissions[156] - Asset management revenue fell by 13.77% to HKD 11.71 million, with total assets under management at HKD 7,295 million as of June 30, 2022[157] - Loan and financing revenue dropped by 76.12% to HKD 15.62 million, reflecting a strategic reduction in low-quality margin financing[158] - Financial products and investment recorded a loss of HKD 22.99 million, a decline of 110.99% from a profit of HKD 209.28 million in 2021[159] Risk Management and Compliance - The group maintains a neutral and prudent risk appetite, focusing on sustainable development and compliance with risk control standards[175] - The group emphasizes the importance of a comprehensive risk management framework, which includes a three-line defense model to ensure effective risk management execution[177] - The group has established liquidity risk management policies to identify, monitor, and mitigate potential liquidity risks, ensuring compliance with applicable legal requirements[179] - The group faces market risks related to adverse changes in exchange rates, interest rates, and financial asset prices, with established policies to monitor and control these risks[184] - The group has implemented an operational risk management framework to reduce the frequency and impact of operational risk events, covering all departments and personnel[185] - The compliance management framework includes three lines of defense to ensure adherence to legal regulations and to provide compliance advice for various business plans[189] Shareholder Information - As of June 30, 2022, the largest shareholder, 兴证（香港）金融控股有限公司, holds 2,077,337,644 shares, representing 51.93% of the total shares[198] - 嘉实资本管理有限公司 and its affiliates collectively hold 293,232,000 shares, accounting for 7.33% of the total shares[198] - China Credit Trust Co., Ltd holds 40% of the total issued share capital of Jiashi Fund Management Co., Ltd[199] - Jiashi Fund Management Co., Ltd holds 75% of the total issued share capital of Jiashi Capital Management Co., Ltd[199] - Chen Jiaquan owns 70% of the total issued share capital of Chongye Holdings Limited[199] - Chen Jiaquan is the sole director of Haokang Financial Holdings Group Limited[199] - Yang Zhiying is considered to have an interest in all shares owned by Chen Jiaquan according to the Securities and Futures Ordinance[200]
兴证国际(06058) - 2022 - 中期财报