Financial Performance - Revenue from the financial services business was approximately HK$2 million, a decrease from approximately HK$5 million in 2022, primarily due to a decline in transaction value and volume[6]. - As of September 30, 2023, the Group recorded a loss of approximately HK$85 million, compared to a profit of approximately HK$91 million in 2022[31]. - Total revenue for the Period was approximately HK$86 million, down from approximately HK$123 million in 2022, representing a decrease of about 30%[31]. - The Group's asset management, securities brokerage, and other financial services revenue decreased by approximately HK$6 million due to a decline in loans receivables and transaction volumes[41]. - The Group recognized an allowance for expected credit losses on financial assets of approximately HK$6 million, an increase from HK$2 million in the previous year, due to increased aging of overdue loan receivables[50]. - The Group's total comprehensive loss for the period was HK$127 million, compared to a total comprehensive income of HK$46 million in the previous year[111]. - The company reported a net foreign exchange loss of HK$2 million for the six months ended September 30, 2023, compared to a gain of HK$1 million in the same period of 2022[171]. - The company reported a change in fair value of financial assets at FVTPL of HK$(116) million for the six months ended September 30, 2023, compared to HK$(10) million in the same period of 2022[171]. Loan Portfolio and Credit Management - As of September 30, 2023, the Group had loans receivable with a carrying amount of approximately HK$41 million, down from HK$45 million as of March 31, 2023[7]. - The Group recorded interest income from loans receivable of approximately HK$2 million for the period, a decrease from HK$5 million in the same period of 2022[7]. - The Group has adopted a credit policy that includes compliance with applicable laws, credit assessment of potential borrowers, and determination of suitable interest rates based on risk levels[9]. - The Company offers both secured and unsecured loans, aiming to diversify its loan portfolio to lower concentration risk[9]. - The credit risk assessment is conducted on a case-by-case basis, considering factors such as credit history, capacity to repay, and collateral[9]. - The Group assesses the necessity and value of collateral for each loan on a case-by-case basis, considering repayment history and financial condition of the borrower[10]. - The Company closely monitors its loan portfolio through regular communication with borrowers and monthly assessments of collateral valuation, repayment track records, and borrower profiles[12]. - The risk management department reviews the risk level of each loan daily and reports to senior management, including the CEO and Financial Controller[12]. Construction Machinery and Rental Operations - The Group maintained approximately 170 units of construction machinery in its rental fleet during the period[6]. - The Group sells spare parts for maintenance purposes to meet customer needs[6]. - The Group sources construction machinery from manufacturers in Western Europe, Japan, and China[6]. - Rental income from construction machinery was approximately HK$68 million, down from approximately HK$83 million in 2022, reflecting a decrease of about 18%[40]. - Sales of construction machinery and spare parts were approximately HK$11 million, down from approximately HK$25 million in 2022, indicating a decrease of about 56%[40]. - The utilisation rate for rental machinery was approximately 85% during the Period[40]. - The rental machinery occupancy rate was approximately 85%[44]. Corporate Governance and Compliance - The Company has fully complied with the Corporate Governance Code, ensuring high standards of corporate governance to enhance shareholder value[92]. - The Audit Committee, comprising four independent non-executive Directors, reviews and supervises the financial reporting process and internal control system of the Group[92]. - The Company has complied with all relevant laws and regulations, including the Listing Rules and Money Lenders Ordinance, with no objections or investigations reported during the period[19]. - The Group's policy is to manage interest rate risk within an agreed framework to avoid undue exposure to significant interest rate movements[70]. Strategic Initiatives and Market Focus - The Group continues to diversify into financial services, property development, and construction machinery businesses[6]. - The Group has property development projects in Cambodia and Malaysia, with a special economic zone project in Cambodia covering an area of 17,252,519 square meters[31]. - Cambodia is identified as a key investment location with a highly liberalized market, and the Group aims to invest in various business sectors there to capitalize on emerging opportunities[91]. - Malaysia's GDP has been consistently rising, indicating strong investment potential, and the Group is actively seeking local high-quality projects along the "One Belt, One Road" regions[91]. - The Group aims to strengthen capital management and implement stringent cost control measures to maintain profitability during economic downturns[90]. Shareholder Information and Equity - As of September 30, 2023, the total number of shares issued is 7,619,770,721[93]. - The Group held approximately 26.6 million shares of Alliance International as of 30 September 2023[48]. - The Group held 77,500,000 shares of Oshidori International Holdings as of 30 September 2023, unchanged from 31 March 2023[61]. - The total interests of substantial shareholders are recorded in compliance with the Securities and Futures Ordinance[101]. - The company has a share option scheme with 100,000,000 shares available for grant as of both April 1, 2023, and September 30, 2023[107]. - The share award scheme has granted a total of 196,274,929 award shares to non-connected grantees and 65,475,610 to connected grantees[107]. Employee and Operational Metrics - The Group had 110 employees as of 30 September 2023, a decrease from 117 employees as of 31 March 2023[82]. - Administrative expenses increased by approximately 18% to HK$26 million, up from HK$22 million in the previous year[54]. - The Group's liquidity management includes a treasury policy aimed at lowering the cost of funds and monitoring funding at the Group level[65]. Financial Position and Assets - As of September 30, 2023, the Group's current assets were approximately HK$1,049 million, down from approximately HK$1,731 million as of 31 March 2023[65]. - The Group's total equity was HK$1,738 million as of 30 September 2023, down from HK$1,864 million as of 31 March 2023[66]. - Total assets as of September 30, 2023, were HK$2,780 million, down from HK$3,489 million as of March 31, 2023[113]. - The Group's total borrowings amounted to approximately HK$948 million as of 30 September 2023, compared to HK$972 million as of 31 March 2023[66].
昊天国际建投(01341) - 2024 - 中期财报