Core Viewpoint - Huake Intelligent Investment (01140.HK) reported a revenue of HKD 261 million for the six months ending September 30, 2025, representing a year-on-year increase of 4.4% [1] Financial Performance - The profit attributable to the company's owners for the period was HKD 70.38 million, a significant year-on-year increase of 188.8% [1] - Basic earnings per share were HKD 0.67 [1] Revenue Sources - The performance included interest income from debt investments amounting to HKD 118.24 million [1] - Net unrealized gains from listed and unlisted investments and art investments totaled HKD 79.33 million [1] - Realized gains from the sale of investments amounted to HKD 42.02 million [1] - A reversal of expected credit loss provisions was recorded at HKD 19.05 million [1] Expenses and Losses - The company faced losses from associates and a joint venture totaling HKD 157.54 million [1] - Financing costs were reported at HKD 17.19 million [1] - Operating and administrative expenses amounted to HKD 17.30 million [1]

Financial Data and Key Metrics Changes - Total investment income decreased to $1.6 million from $2.2 million year-over-year, reflecting both debt repayments and a slowdown in origination dynamics [13][14] - Net investment income increased to $993,000 compared to $887,000 in the same quarter last year, demonstrating effective expense management [15] - Net asset value (NAV) declined to $53.6 million or $18.06 per share from $19.10 per share sequentially, primarily due to valuation adjustments and dividend payments [16] Business Line Data and Key Metrics Changes - The investment portfolio's fair value was $44.3 million across 19 companies, down from year-end, largely due to significant repayments and valuation adjustments [6][7] - The portfolio mix consisted of 83% debt and 17% equity, with a weighted average yield of 12.2% [7] - 39% of investment income was attributable to non-cash PIK interest, up from 24% in the prior year [14] Market Data and Key Metrics Changes - The market for new deal origination remains sluggish, with borrowers facing tighter credit conditions and higher financing costs [4] - The company noted a greater use of PIK interest by borrowers as they adapt to the current financing environment [4] Company Strategy and Development Direction - The company aims to maintain its dividend through disciplined expense management and strong liquidity, even during periods of muted investment activity [6][17] - The focus is on being selective in deal origination while remaining prepared to capitalize on opportunities as market conditions improve [18] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the company's ability to navigate a challenging lending environment, highlighting a strong balance sheet with no debt and significant liquidity [18] - There are early signs that anticipated interest rate reductions could stimulate deal origination in the future [19] Other Important Information - The company declared and paid a regular quarterly dividend of $0.29 per share, maintaining this level for three consecutive quarters [5][17] - The company experienced a realized loss of $2.9 million on Tilson Technology Management following its Chapter 11 process [10] Q&A Session Summary - No specific questions or answers were provided in the content regarding the Q&A session.