Financial Performance - For the three months ended June 30, 2023, the Group reported revenue of HK$13,333,000, a decrease of 7.6% compared to HK$14,431,000 for the same period in 2022[11]. - The gross profit for the six months ended June 30, 2023, was HK$18,694,000, slightly down from HK$18,842,000 in the previous year, reflecting a decrease of 0.8%[11]. - The loss for the period attributable to owners of the Company for the three months ended June 30, 2023, was HK$8,826,000, compared to HK$3,770,000 for the same period in 2022, representing an increase of 134%[12]. - The total comprehensive income for the period attributable to owners of the Company was HK$9,061,000 for the three months ended June 30, 2023, compared to HK$4,084,000 in 2022, indicating a significant increase of 122%[12]. - The loss before tax for the six months ended June 30, 2023, was HK$9,719,000, compared to HK$6,860,000 in the same period of 2022, reflecting a 41% increase[11]. - The basic loss per share for the six months ended June 30, 2023, was HK$8.420, compared to HK$6.145 for the same period in 2022, representing an increase of 37%[12]. - The company incurred a loss for the period amounting to HK$10,614,000 for the six months ended June 30, 2023, compared to a loss of HK$7,746,000 in the same period of 2022[21]. - The Group recorded a net loss after tax of approximately HK$10,683,000 for the Period, an increase from approximately HK$8,050,000 in the six months ended 30 June 2022, primarily due to increased administrative expenses and decreased other income[163]. Revenue Breakdown - Total revenue for the six months ended June 30, 2023, was HK$29,269,000, a slight increase from HK$29,196,000 in the same period of 2022[53]. - Revenue from sales of merchandise for the three months ended June 30, 2023, was HK$535,000, up from HK$16,000 in the same period of 2022[53]. - Revenue from software licensing fees for the six months ended June 30, 2023, was HK$11,058,000, down from HK$13,806,000 in 2022, representing a decrease of approximately 20%[53]. - Revenue from system customization and network support for the six months ended June 30, 2023, was HK$7,589,000, significantly higher than HK$3,983,000 in the same period of 2022, indicating an increase of approximately 90%[53]. - The revenue from the financial trading software solutions business amounted to approximately HK$28,705,000, representing an increase of approximately 1.4% compared to HK$28,310,000 for the same period last year[131]. - The money lending business generated revenue of approximately HK$564,000, a decrease of approximately 36.2% from HK$884,000 in the previous year[139]. Expenses and Liabilities - The administrative expenses for the six months ended June 30, 2023, rose to HK$26,531,000 from HK$24,448,000 in 2022, marking an increase of 8.5%[11]. - Total liabilities decreased from HK$2,273,000 as of December 31, 2022, to HK$1,292,000 as of June 30, 2023, indicating a reduction of approximately 43.3%[17]. - The company’s reserves decreased from HK$59,525,000 at the end of 2022 to HK$48,974,000 as of June 30, 2023, reflecting a decrease of about 17.7%[17]. - Staff costs, including salaries and bonuses, increased to HK$21,050,000 for the six months ended June 30, 2023, from HK$19,394,000 in the same period of 2022, reflecting a rise of 8.5%[77]. - The income tax expense for the six months ended June 30, 2023, was HK$964,000, down from HK$1,190,000 in the same period of 2022, representing a decrease of 19.0%[81]. Assets and Cash Flow - As of June 30, 2023, total assets less current liabilities decreased to HK$54,175,000 from HK$65,776,000 as of December 31, 2022, representing a decline of approximately 17.5%[16]. - Net current assets as of June 30, 2023, were HK$36,043,000, down from HK$48,096,000 at the end of 2022, indicating a decrease of about 25.1%[16]. - Cash and cash equivalents at the end of the period were HK$17,109,000, down from HK$31,458,000 at the end of June 2022, marking a decrease of approximately 45.5%[24]. - For the six months ended June 30, 2023, the company reported a net cash used in operating activities of HK$5,795,000, contrasting with a net cash generated of HK$2,821,000 in the same period of 2022[24]. Credit and Loan Management - The impairment loss on loan and interest receivables for the three months ended June 30, 2023, was HK$538,000, up from HK$268,000 in 2022, indicating a 100% increase[11]. - The expected credit loss (ECL) for Stage 1 loans increased from HK$94,000 to HK$167,000, while Stage 2 ECL decreased from HK$2,706,000 to HK$2,375,000, and Stage 3 ECL increased from HK$55,984,000 to HK$57,460,000, resulting in a total ECL of HK$60,002,000 as of June 30, 2023[111]. - The Group maintains strict control over outstanding loan receivables to minimize credit risk, with overdue balances regularly reviewed for recoverability[105]. - The Group's loan receivables as of June 30, 2023, totaled HK$31,871,000, a decrease from HK$37,575,000 as of December 31, 2022, representing a reduction of approximately 15.5%[114]. Strategic Initiatives and Market Outlook - The Group plans to continue monitoring the economic environment closely to secure more customers in the financial trading software solutions business[130]. - The Group aims to diversify its IT services, including system migration services, to improve sales performance in the other IT and internet financial platforms services division, which generated no revenue during the period[137]. - A strategic cooperation framework agreement was signed with Jinhuashi Fengde Baiwang Intelligent Technology Group to develop an IoT-based electronic trading platform for agricultural products[138]. - The Group will continue to monitor the overall economic environment and focus on providing financial trading software solutions to attract more clients[135]. Investment and Fair Value - The Group's financial assets at fair value through profit or loss (FVTPL) included listed equity investments valued at HK$6,317,000 as of June 30, 2023, compared to HK$5,303,000 at the end of 2022[49]. - The total fair value of financial assets at fair value through other comprehensive income (FVTOCI) was HK$427,000 as of June 30, 2023, compared to HK$364,000 at the end of 2022[49]. - The Group's securities investments increased from approximately HK$5,303,000 as of December 31, 2022, to approximately HK$6,317,000 as of June 30, 2023, with a net loss of approximately HK$282,000 during the period[148]. - The Group expects continued volatility in the Hong Kong stock market, which may impact the performance of its securities investments[149]. Corporate Governance and Compliance - The Group's registered office is located in the Cayman Islands, and its head office is in Hong Kong[1]. - The Group's shares are listed on the GEM of the Stock Exchange[1]. - The Group did not have any material acquisition or disposal transactions during the Period and has no concrete plans for material investments or capital assets in the near future[183]. - The company adopts a prudent approach to its financial and funding policies, ensuring effective management and supervision of its financial activities[185].
汇财金融投资(08018) - 2023 - 中期财报