Financial Performance - The Group's revenue for the Reporting Period was approximately HK$347.9 million, an increase of approximately HK$66.4 million or 23.6% from HK$281.5 million for the Corresponding Period[39]. - Gross profit during the Reporting Period was approximately HK$30.4 million, representing an increase of approximately HK$3.0 million or 10.9% from approximately HK$27.4 million for the Corresponding Period[39]. - The net profit for the Reporting Period was approximately HK$13.2 million, compared to approximately HK$8.8 million for the Corresponding Period[43]. - Other gains amounted to approximately HK$15.4 million, an increase of approximately HK$13.2 million or 600% from approximately HK$2.2 million for the Corresponding Period[39]. - The Group's profit attributable to the owners for the Reporting Period was approximately HK$13,475,000, an increase from HK$11,109,000 in the corresponding period, representing a growth of approximately 21.4%[150]. Agricultural and Meat Business - The Group's Agricultural and Meat Business segment turnover increased by approximately 24.5%, from approximately HK$264.4 million in the corresponding period to approximately HK$329.3 million[7]. - The gross profit from the Agricultural and Meat Business was approximately HK$12.7 million, compared to HK$11.5 million for the corresponding period[9]. - The Group is actively developing its trading of agricultural and meat produce, poultry, seafood, and prepared food, and has commenced supplying produce to supermarkets and online platforms in the PRC[78]. - The Group's strategic focus includes enhancing revenue streams and expanding market presence in the agricultural sector[7]. - The Group entered into long-term cooperation agreements with agricultural companies in other provinces in the PRC to broaden its agricultural bases and sourcing[83]. Money Lending Business - The average interest rate charged on loans in the Money Lending Business increased to 12.1% during the Reporting Period, compared to 12.0% in the previous period[22]. - Loan interest income and gross profit from the Money Lending Business amounted to approximately HK$12.9 million, reflecting an increase due to a slight rise in business volume[24]. - The Group does not foresee a material improvement in the performance of the Money Lending Business due to the uncertain economic environment[25]. - The Group plans to focus more on Agricultural and Meat Business, having disposed of 8.9% equity interest in Taihengfeng, a subsidiary engaged in Money Lending Business[26]. - The Group's total profit from the Money Lending Business was significantly impacted by impairment losses on loan receivables amounting to HK$672,000[113]. Securities Brokerage Business - During the reporting period, the Securities Brokerage Business generated revenue of approximately HK$5.7 million, an increase from HK$5.5 million in the same period last year[35]. - The net profit for the Securities Brokerage Business was approximately HK$0.2 million, compared to a net loss of HK$2.9 million in the previous year[35]. - The Securities Brokerage Business reported revenue of HK$5,653,000 for the six months ended June 30, 2022, compared to HK$5,493,000 in the same period of 2021, reflecting a growth of approximately 2.9%[115]. Financial Position and Cash Flow - As of June 30, 2022, the Group's bank balances and cash amounted to approximately HK$80.1 million, a decrease from HK$220.6 million as of December 31, 2021[45]. - The Group's total borrowings increased to approximately HK$433.8 million as of June 30, 2022, compared to HK$310.9 million as of December 31, 2021[45]. - The net debt to adjusted equity ratio was 0.45 as of June 30, 2022, up from 0.17 as of December 31, 2021[50]. - The gearing ratio increased to 1.02 as of June 30, 2022, from 0.71 as of December 31, 2021, primarily due to an increase in bank loans[50]. - The company reported a total comprehensive income of HK$14,776,000 for the period, reflecting a recovery from previous losses[93]. Operational Developments - The Group has been conducting research and development on medicinal value crops, specifically Kimura et Migo, since Q2 2018, but will cease cultivation due to unattractive economic returns[7]. - The Group has established strict credit risk management procedures, including document collection, due diligence, and ongoing monitoring of loans[70]. - The Group is closely monitoring foreign exchange exposure due to fluctuations in RMB and its potential impact on performance[61]. - The Group is considering other potential profitable businesses to boost profitability in the future, including the Agricultural and Meat Business in the PRC and Hong Kong[84]. - The Group's management regularly reviews accounts receivable to ensure that listed stocks held on behalf of clients can offset their debts, thereby reducing credit risk[186]. Employee and Staff Costs - As of June 30, 2022, the Group had total staff costs of HK$6.9 million, a decrease from HK$12.4 million in the corresponding period[73]. - The Group had a total of 67 full-time employees as of June 30, 2022, down from 69 as of December 31, 2021[73]. - Staff costs decreased to HK$6,920,000 from HK$12,367,000, a reduction of 44.5%[140]. Impairment and Receivables - The Group confirmed a net impairment loss of approximately HK$700,000 on loans during the reporting period, compared to a reversal of net impairment of HK$16.6 million in the previous year[28]. - The accumulated impairment for trade receivables was HK$19,812 as of June 30, 2022, up from HK$17,057 at the end of 2021[179]. - Impairment losses recognized for trade receivables were HK$2,846,000 for the period ending June 30, 2022, compared to no losses recognized in the previous period[186]. - The impairment of other receivables decreased from HK$28,250,000 at the beginning of the year to HK$2,000,000 by June 30, 2022, reflecting a significant recovery[189]. Future Outlook - The Group plans to gradually transfer resources and focus from its Money Lending Business to the Agricultural and Meat Business[84]. - The Group aims to diversify its income streams to counterbalance the cyclical nature of its Agricultural and Meat Business[78]. - The Group will seek suitable investment opportunities to develop its existing business portfolio and engage in new lines of business with growth potential[77].
中国金控(00875) - 2022 - 中期财报