The board of directors (the "Directors") of Hopefluent Group Holdings Limited (the "Company") announces the unaudited consolidated interim results of the Company and its subsidiaries (collectively referred to as the "Group") for the six months ended 30 June 2024, together with comparative figures for the corresponding period in 2023 as follows:
CONDENSED CONSOLIDATED STATEMENT OF PROFIT OR LOSS AND OTHER COMPREHENSIVE INCOME
For the six months ended 30 June 2024
Six months ended 30 June | |||
2024 | 2023 | ||
HK$'000 | HK$'000 | ||
Notes | (unaudited) | (unaudited) | |
(restated) | |||
Revenue | 4 | 422,038 | 699,901 |
Other income | 7,796 | 8,098 | |
Selling expenses | (411,526) | (601,817) | |
Administrative expenses | (125,258) | (157,781) | |
Other gains and losses | (1,520) | (909) | |
Loss allowance on financial assets | (211) | (109,289) | |
Finance costs | 5 | (8,502) | (16,372) |
Loss before tax | (117,183) | (178,169) | |
Income tax (expense)/credit | 6 | (94) | 27,119 |
Loss for the period | 7 | (117,277) | (151,050) |
Other comprehensive expense for the period | |||
Items that may be reclassified to profit or loss: | |||
Exchange differences arising on translating to | |||
presentation currency | (38,420) | (126,734) | |
Total comprehensive expense for the period | (155,697) | (277,784) | |
Hopefluent Group Holdings Limited | 1 |
CONDENSED CONSOLIDATED STATEMENT OF PROFIT OR LOSS AND OTHER COMPREHENSIVE INCOME (Cont'd)
For the six months ended 30 June 2024
Six months ended 30 June | |||
2024 | 2023 | ||
HK$'000 | HK$'000 | ||
Notes | (unaudited) | (unaudited) | |
(restated) | |||
(Loss)/profit for the period attributable to: | |||
- Owners of the Company | (117,955) | (151,660) | |
- Non-controlling interests | 678 | 610 | |
(117,277) | (151,050) | ||
Total comprehensive (expense)/income for | |||
the period attributable to: | |||
- Owners of the Company | (156,061) | (278,109) | |
- Non-controlling interests | 364 | 325 | |
(155,697) | (277,784) | ||
Dividends | 8 | - | - |
Loss per share | |||
- Basic and diluted | 9 | HK(17.50) cents | HK(22.50) cents |
2 I n t e r i m R e p o r t 2 0 2 4
CONDENSED CONSOLIDATED STATEMENT OF FINANCIAL POSITION
As at 30 June 2024
30 June | 31 December | ||
2024 | 2023 | ||
HK$'000 | HK$'000 | ||
Notes | (unaudited) | (audited) | |
NON-CURRENT ASSETS | 102,013 | ||
Investment properties | 120,377 | ||
Property, plant, equipment | 10 | 232,871 | 245,676 |
Right-of-use assets | 10 | 61,330 | 66,301 |
Goodwill | 11 | 11,078 | 11,321 |
Interest in a joint venture | - | - | |
Loan receivables | 81,047 | 608 | |
Other receivables and deposits | 3,515 | 3,875 | |
Deferred tax assets | 194,349 | 194,296 | |
686,203 | 642,454 | ||
CURRENT ASSETS | 556,321 | ||
Accounts receivable | 12 | 577,097 | |
Loan receivables | 177,903 | 295,794 | |
Other receivables, deposits and prepayments | 299,144 | 311,378 | |
Amount due from a joint venture | 14,973 | 15,301 | |
Financial assets at fair value through | 4,509 | ||
profit or loss ("FVTPL") | 13 | 4,383 | |
Bank balances and cash | 210,646 | 298,659 | |
1,263,496 | 1,502,612 | ||
CURRENT LIABILITIES | 131,717 | ||
Payables and accruals | 14 | 149,794 | |
Contract liabilities | 24,865 | 21,489 | |
Lease liabilities | 24,493 | 19,597 | |
Tax liabilities | 35,569 | 38,721 | |
Bank and other borrowings | 53,499 | 122,857 | |
270,143 | 352,458 | ||
NET CURRENT ASSETS | 993,353 | 1,150,154 | |
TOTAL ASSETS LESS CURRENT LIABILITIES | 1,679,556 | 1,792,608 | |
Hopefluent Group Holdings Limited | 3 |
CONDENSED CONSOLIDATED STATEMENT OF FINANCIAL POSITION (Cont'd)
As at 30 June 2024
30 June | 31 December | ||
2024 | 2023 | ||
HK$'000 | HK$'000 | ||
Notes | (unaudited) | (audited) | |
NON-CURRENT LIABILITIES | |||
Lease liabilities | 31,658 | 43,387 | |
Deferred tax liabilities | 93,698 | 93,911 | |
Bank and other borrowings | 86,022 | 44,396 | |
211,378 | 181,694 | ||
CAPITAL AND RESERVES | |||
Share capital | 15 | 6,741 | 6,741 |
Share premium and reserves | 1,454,794 | 1,597,148 | |
Equity attributable to owners of the Company | 1,461,535 | 1,603,889 | |
Non-controlling interests | 6,643 | 7,025 | |
TOTAL EQUITY | 1,468,178 | 1,610,914 | |
1,679,556 | 1,792,608 | ||
4 I n t e r i m R e p o r t 2 0 2 4
CONDENSED CONSOLIDATED STATEMENT OF CHANGES IN EQUITY
For the six months ended 30 June 2024
Attributable to owners of the Company | ||||||||||
Statutory | Property | Non- | ||||||||
Share | Share | Special | surplus | Translation revaluation | Retained | controlling | ||||
capital | premium | reserve | reserve | reserve | reserve | earnings | Sub-total | interests | Total | |
HK$'000 | HK$'000 | HK$'000 | HK$'000 | HK$'000 | HK$'000 | HK$'000 | HK$'000 | HK$'000 | HK$'000 | |
At 1 January 2023 (audited) | 6,741 | 416,637 | 29,315 | 174,264 | (103,418) | 5,527 | 1,698,830 | 2,227,896 | 6,138 | 2,234,034 |
Other comprehensive expense | ||||||||||
for the period | - | - | - | - | (126,449) | - | - | (126,449) | (285) | (126,734) |
(Loss)/profit for the period | - | - | - | - | - | - | (151,660) | (151,660) | 610 | (151,050) |
Total comprehensive (expense)/ | ||||||||||
income for the period | - | - | - | - | (126,449) | - | (151,660) | (278,109) | 325 | (277,784) |
Equity-settledshare-based | ||||||||||
payments | - | - | 1,180 | - | - | - | - | 1,180 | - | 1,180 |
At 30 June 2023 (unaudited) | 6,741 | 416,637 | 30,495 | 174,264 | (229,867) | 5,527 | 1,547,170 | 1,950,967 | 6,463 | 1,957,430 |
Other comprehensive income for | ||||||||||
the period | - | - | - | - | 7,448 | 10,439 | - | 17,887 | (60) | 17,827 |
(Loss)/profit for the period | - | - | - | - | - | - | (379,290) | (379,290) | 922 | (378,368) |
Total comprehensive income/ | ||||||||||
(expense) for the period | - | - | - | - | 7,448 | 10,439 | (379,290) | (361,403) | 862 | (360,541) |
Equity-settledshare-based | ||||||||||
payments | - | - | 15,253 | - | - | - | - | 15,253 | - | 15,253 |
Lapse of share option | - | - | (13,135) | - | - | - | 13,135 | - | - | - |
Distribution to non-controlling | ||||||||||
interests | - | - | - | - | - | - | - | - | (436) | (436) |
Disposal of subsidiaries | - | - | - | (928) | - | - | - | (928) | - | (928) |
Capital contribution from | ||||||||||
non-controlling interests | - | - | - | - | - | - | - | - | 136 | 136 |
Transfer | - | - | - | 16 | - | - | (16) | - | - | - |
At 31 December 2023 (audited) | 6,741 | 416,637 | 32,613 | 173,352 | (222,419) | 15,966 | 1,180,999 | 1,603,889 | 7,025 | 1,610,914 |
Other comprehensive expense | ||||||||||
for the period | - | - | - | - | (38,106) | - | - | (38,106) | (314) | (38,420) |
(Loss)/profit for the period | - | - | - | - | - | - | (117,955) | (117,955) | 678 | (117,277) |
Total comprehensive (expense)/ | ||||||||||
income for the period | - | - | - | - | (38,106) | - | (117,955) | (156,061) | 364 | (155,697) |
Equity settled share-based | ||||||||||
payments | - | - | 13,707 | - | - | - | - | 13,707 | - | 13,707 |
Lapse of share option | - | - | (15,916) | - | - | - | 15,916 | - | - | - |
Distribution to non-controlling | ||||||||||
interests | - | - | - | - | - | - | - | - | (746) | (746) |
At 30 June 2024 (unaudited) | 6,741 | 416,637 | 30,404 | 173,352 | (260,525) | 15,966 | 1,078,960 | 1,461,535 | 6,643 | 1,468,178 |
Hopefluent Group Holdings Limited | 5 |
CONDENSED CONSOLIDATED STATEMENT OF CASH FLOWS
For the six months ended 30 June 2024
Six months ended 30 June | ||
2024 | 2023 | |
HK$'000 | HK$'000 | |
(unaudited) | (unaudited) | |
Net cash (used in)/generated from operating activities | (42,840) | 41,322 |
Net cash generated from /(used in) investing activities | 11,812 | (5,680) |
Net cash used in financing activities | (49,441) | (81,711) |
Net decrease in cash and cash equivalents | (80,469) | (46,069) |
Cash and cash equivalents at beginning of the period | 298,659 | 393,966 |
Effect of foreign exchange rate changes | (7,544) | (29,917) |
Cash and cash equivalents at the end of the period, | ||
represented by bank balances and cash | 210,646 | 317,980 |
6 I n t e r i m R e p o r t 2 0 2 4
NOTES TO THE CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
For the six months ended 30 June 2024
-
GENERAL INFORMATION
Hopefluent Group Holdings Limited (the "Company") is a limited liability company incorporated in the Cayman Islands and its shares are listed on The Stock Exchange of Hong Kong Limited (the "Stock Exchange"). The Company and its subsidiaries (the "Group") are principally engaged in provision of property real estate agency services and mortgage referral and loan financing services. - BASIS OF PREPARATION
The unaudited condensed interim financial statements (the "Interim Financial Statements") have been prepared in accordance with Hong Kong Accounting Standard ("HKAS") 34, issued by the Hong Kong Institute of Certified Public Accountant (the "HKICPA") and the applicable disclosure provisions of Main Board Listing Rules Governing the Listing of Securities (the "Listing Rules") on the Stock Exchange.
The Interim Financial Statements have been prepared with the same accounting policies adopted in the 2023 annual financial statements, except for those relating to new periods beginning on or after 1 January 2024. Details of any changes in accounting policies are set out in note 3.
The preparation of these Interim Financial Statements in compliance with HKAS 34 requires the use of certain judgements, estimates and assumptions that affect the application of policies and the reported amounts of assets and liabilities, income and expenses on a year to date basis. Actual results may differ from these estimates. For the areas where significant judgments and estimates have been made in preparing these Interim Financial Statements, the Company's accounting policies applied and the key sources of estimation uncertainty were the same as those that applied to 2023 annual financial statements.
These Interim Financial Statements are presented in Hong Kong dollars ("HK$") and all amounts are rounded to the nearest thousand ("HK$'000") except otherwise indicated. These interim financial statements contain consolidated financial statements and selected explanatory notes. The notes include an explanation of events and transactions that are significant to an understanding of the changes in financial position and performance of the Company since the 2023 annual financial statements. These Interim Financial Statements and the notes do not include all of the information required for a complete set of financial statements prepared in accordance with Hong Kong Financial Reporting Standards ("HKFRSs") and should be read in conjunction with the 2023 annual financial statements.
Hopefluent Group Holdings Limited | 7 |
NOTES TO THE CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (Cont'd)
For the six months ended 30 June 2024
3. MATERIAL ACCOUNTING POLICIES
The condensed consolidated financial statements have been prepared on the historical cost basis, except for investment properties and financial assets at FVTPL which are measured at fair value, as appropriate.
Except as described below, the accounting policies and methods of computation used in the condensed consolidated financial statements for the six months ended 30 June 2024 are the same as those set out in the Group's annual financial statements for the year ended 31 December 2023.
In the current reporting period, the Group has applied, for the first time, the following new and amendments to HKASs and Hong Kong Financial Reporting Standards ("HKFRSs") issued by the HKICPA that are relevant for the preparation of the Group's unaudited condensed consolidated financial statements:
Amendments to HKFRS 16 | Lease Liability in a Sale and Leaseback |
Amendments to HKAS 1 | Classification of Liabilities as Current or Non-Current |
Amendments to HKAS 1 | Non-current Liabilities with Covenants |
Amendments to HKAS 7 and HKFRS 7 | Supplier Finance Arrangements |
None of these new or amended HKFRSs has a material impact on the Group's results and financial position for the current or prior period.
4. REVENUE AND SEGMENT INFORMATION
Information reported to the executive directors of the Company, being the chief operating decision maker, for the purposes of resource allocation and assessment of segment performance focuses on types of services provided.
The Group has two (2023: two) reportable segments. The segments are managed separately as each business offers different products and services and requires different business strategies.
The following summary describes the operations in each of the Group's reportable segments:
- Property real estate agency is the provision of first hand real estate services and secondary real estate services to property developers, corporates and individuals; and
- Financial services is the provision of mortgage referral and loan financing services to individuals or companies.
8 I n t e r i m R e p o r t 2 0 2 4
NOTES TO THE CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (Cont'd)
For the six months ended 30 June 2024
4. REVENUE AND SEGMENT INFORMATION (Cont'd)
Revenue represents agency commission in respect of real estate agency services and interest income from loan receivables, net of business tax and other taxes. An analysis of the Group's revenue for the period is as follows:
Six months ended 30 June | ||
2024 | 2023 | |
HK$'000 | HK$'000 | |
(unaudited) | (unaudited) | |
Disaggregation of revenue | ||
Revenue from contracts with customers within | ||
the scope of HKFRS 15 | ||
Agency commission | 404,543 | 672,573 |
Revenue from other sources
outside the scope of HKFRS 15 | |||
Finance income | |||
Interest income from loan receivables | 17,495 | 27,328 | |
422,038 | 699,901 | ||
Six months ended 30 June | |||
2024 | 2023 | ||
HK$'000 | HK$'000 | ||
(unaudited) | (unaudited) | ||
Timing of revenue recognition | |||
At a point in time | |||
Agency commission | 404,543 | 672,573 | |
Over-time | |||
Interest income from loan receivables | 17,495 | 27,328 | |
422,038 | 699,901 | ||
Hopefluent Group Holdings Limited | 9 |