CFININTINV：INTERIMREPORT2019.pdf

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1、China Financial International Investments Limited中 國 金 融 國 際 投 資 有 限 公 司(Incorporated in the Cayman Islands and continued in Bermuda with limited liability)(Stock Code:721)Interim Report2019 Corporate InformationInterim Report 20191BOARD OF DIRECTORSExecutive DirectorMr.Du Lin Dong(Chairman and Chie

2、f Executive Officer)Non-executive DirectorsMr.Ding XiaobinMr.Zhang Huayu(Vice Chairman)Ms.Li JieMs.Chen XiIndependent Non-executive DirectorsMr.Zhang JingMr.Zeng XianggaoMr.Li CailinEXECUTIVE COMMITTEEMr.Du Lin Dong(Chairman)AUDIT COMMITTEEMr.Zhang Jing(Chairman)Mr.Zeng XianggaoMr.Li CailinREMUNERAT

3、ION COMMITTEEMr.Li Cailin(Chairman)Mr.Du Lin DongMr.Zhang JingNOMINATION COMMITTEEMr.Zhang Jing(Chairman)Mr.Zeng XianggaoMr.Li CailinRISK MANAGEMENT COMMITTEEMr.Du Lin Dong(Chairman)Mr.Zhang JingAUTHORISED REPRESENTATIVESMr.Du Lin DongMr.Li Chi ChungCOMPANY SECRETARYMr.Li Chi ChungAUDITORSMoore Step

4、hens CPA LimitedCertified Public AccountantsINVESTMENT MANAGERChina Financial International Investments&Managements LimitedCUSTODIANBank of Communications Trustee LimitedLEGAL ADVISERAs to Bermuda lawConyers Dill&PearmanREGISTERED OFFICEClarendon House2 Church StreetHamiltonHM 11BermudaPRINCIPAL PLA

5、CE OF BUSINESS IN HONG KONGSuite 2001,20/F,Tower 1The GatewayHarbour City,Hong KongSHARE REGISTRAR AND TRANSFER OFFICE IN BERMUDAMUFG Fund Services(Bermuda)Limited4th Floor Cedar House41 Cedar AvenueHamilton,HM 12BermudaSHARE REGISTRAR AND TRANSFER OFFICE IN HONG KONGTricor Tengis LimitedLevel 54,Ho

6、pewell Centre183 Queens Road EastHong KongPRINCIPAL BANKERThe Hongkong and Shanghai Banking Corporation LimitedTRADING CODE ON THE STOCK EXCHANGE OF HONG KONG LIMITED0721COMPANY WEBSITEhttp:/ the six months ended 31 December 2019 Interim Condensed Consolidated Statement of Profit or Loss and Other C

7、omprehensive IncomeChina Financial International Investments Limited2Unaudited Six months ended 31 December20192018NotesHK$000HK$000Revenue419,19928,601Other income45,96070,573Fair value loss on financial assets at fair value through profit or loss(“FVTPL”)(88,255)(33,127)Impairment loss on debt ins

8、truments at fair value through other comprehensive income(“FVTOCI”)(17,015)Administrative expenses(14,478)(19,185)Share of profit from an associate845Finance costs5(1,676)(1,588)(Loss)profit before tax(96,257)45,319Income tax expense6(29,424)(Loss)profit for the period7(96,257)15,895OTHER COMPREHENS

9、IVE INCOMEItem that will not be reclassified to profit or loss:Fair value loss on equity instruments at FVTOCI(34,755)(36,156)Items that may be reclassified subsequently to profit or loss:Debt instruments at FVTOCI Change in fair value of debt instruments at FVTOCI(17,015)(62,960)Adjustment for expe

10、cted credit loss (reversal of expected credit loss)included in profit or loss17,015(4,626)Effective interest income from financial assets at FVTOCI(58,900)(126,486)Exchange difference arising on translation of foreign operations(1,054)(347)OTHER COMPREHENSIVE EXPENSE FOR THE PERIOD(35,809)(162,989)T

11、OTAL COMPREHENSIVE EXPENSE FOR THE PERIOD(132,066)(147,094)(LOSS)EARNINGS PER SHARE ATTRIBUTABLE TO OWNERS OF THE COMPANY Basic9HK(0.88)centsHK0.14 cents Diluted9HK(0.88)centsHK0.14 centsAs at 31 December 2019 Interim Condensed Consolidated Statement of Financial PositionInterim Report 20193Unaudite

12、d 31 December 2019Audited 30 June 2019NotesHK$000HK$000NON-CURRENT ASSETSProperty,plant and equipment10350491Right-of-use assets2,554Interest in an associate111,1611,153Financial assets at FVTPL12551,851313,408Equity instruments at FVTOCT1361,70396,458Deposits14194197Total non-current assets617,8134

13、11,707CURRENT ASSETSPrepayments,deposits and other receivables1460,254201,364Financial assets at FVTPL12154,189214,763Debt instruments at FVTOCI15161,019302,234Bank balances and cash45,44036,124Total current assets420,902754,485CURRENT LIABILITIESOther payables and accruals10,0223,518Amount due to a

14、n associate114Tax payable4,2004,200Borrowings169,9909,990Lease liabilities1,703Financial guarantee contracts176,28710,679Total current liabilities32,20228,501NET CURRENT ASSETS388,700725,984TOTAL ASSETS LESS CURRENT LIABILITIES1,006,5131,137,691NON-CURRENT LIABILITIESLease liabilities888Borrowings16

15、52,98552,985Total non-current liabilities 53,87352,985NET ASSETS952,6401,084,706EQUITYShare capital109,717109,717Reserves842,923974,989TOTAL EQUITY952,6401,084,706Net asset value per share23HK8.68 centsHK9.89 centsFor the six months ended 31 December 2019 Consolidated Statement of Changes in EquityC

16、hina Financial International Investments Limited4Attributable to owners of the CompanyShare capitalShare premiumContributed surplusCapital reserveFinancialassetsat FVTOCIreserveExchange reserveAccumulated lossesTotalHK$000HK$000HK$000HK$000HK$000HK$000HK$000HK$000At 1 July 2019(audited)109,7172,067,

17、672278,9792,766(4,296)(13,426)(1,356,706)1,084,706Loss for the period(96,257)(96,257)Other comprehensive loss for the period:Change in fair value of financial assets at fair value through other comprehensive income(34,755)(34,755)Exchange differences on translation of foreign operations(1,054)(1,054

18、)Total comprehensive expense for the period(34,755)(1,054)(96,257)(132,066)At 31 December 2019(unaudited)109,7172,067,672278,9792,766(39,051)(14,480)(1,452,963)952,640At 1 July 2018(audited)109,7172,067,672278,9792,766(109,685)(8,180)(885,359)1,455,910Profit for the period15,89515,895Other comprehen

19、sive income for the period:Change in fair value of financial assets at fair value through other comprehensive income,net of tax(162,642)(162,642)Exchange differences on translation of foreign operations(347)(347)Total comprehensive income for the period(162,642)(347)15,895(147,094)At 31 December 201

20、8(unaudited)109,7172,067,672278,9792,766(272,327)(8,527)(869,464)1,308,816For the six months ended 31 December 2019 Consolidated Statement of Cash FlowsInterim Report 20195UnauditedSix months ended 31 December20192018HK$000HK$000Cash flows from operating activities(Loss)profit before tax(96,257)45,3

21、19Adjustments for:Share of profit from an associate(8)(45)Interest income(18,508)(28,332)Effective interest income derived from debt instruments of financial assets at FVTOCI(58,900)Dividend income(946)(3,068)Finance costs1,6761,588Depreciation988144Impairment of/(Reversal of impairment loss)on fina

22、ncial assets at FVTOCI17,015(4,626)Exchange loss3,811Net gain on disposal of financial assets at fair value through profit or loss(5,135)Fair value change of financial assets at fair value through profit or loss88,25538,262(Reversal of)impairment loss on deposits and other receivables(1,313)1,457Rev

23、ersal of provision for financial guarantee liabilities(4,392)(4,248)Operating loss before working capital changes(13,490)(13,773)Decrease/(Increase)in prepayments,deposits and other receivables134,846(20,925)Increase/(Decrease)in other payables and accruals6,542(287)Increase in an amount due to a re

24、lated company10Decrease in an amount due to an associate(114)(64)Purchase of financial assets at fair value through profit or loss(118,006)(124,103)Sales of financial assets at fair value through profit or loss52,814Cash generated from/(used in)operations9,778(106,328)Interest received25527,926Divid

25、end received94610,276Overseas tax paid(521)Net cash generated from/(used in)operating activities10,979(68,647)Cash flows from investing activitiesPurchases of property,plant and equipment(7)For the six months ended 31 December 2019 China Financial International Investments Limited6Consolidated State

26、ment of Cash Flows(Continued)UnauditedSix months ended 31 December20192018HK$000HK$000Net cash used in investing activities(7)Cash flows from financing activitiesInterest paid(1,676)(1,588)Repayment of lease liabilities(811)Net cash used in financing activities(2,487)(1,588)Net increase(decrease)in

27、cash and cash equivalents8,492(70,242)Cash and cash equivalents at beginning of the period36,124153,935Effect of foreign exchange rate changes824(3,392)Cash and cash equivalents at the end of period45,44080,301Analysis of the balances of cash and cash equivalentsCash and bank balances45,44080,301For

28、 the six months ended 31 December 2019 Notes to the Consolidated Financial StatementsInterim Report 201971.CORPORATION INFORMATION AND BASIS OF PREPARATIONChina Financial International Investments Limited(the“Company”)was incorporated in the Cayman Islands under the Cayman Islands Companies Law as a

29、n exempted company with its shares listed on the Main Board of The Stock Exchange of Hong Kong Limited(the“Stock Exchange”).With effect from 9 May 2006,the Company was de-registered from the Cayman Islands under the Cayman Islands Companies Law and re-domiciled in Bermuda under the Companies Act 198

30、1 of Bermuda as an exempted company.The Companys registered office address is Clarendon House,2 Church Street,Hamilton,HM 11,Bermuda and the Companys principal place of business is Suite 2001,20th Floor,Tower 1,The Gateway,Harbour City,Kowloon,Hong Kong.The Company and its subsidiaries(the“Group”)ar

31、e principally engaged in investing in listed and unlisted companies established and/or doing business in Hong Kong and the Peoples Republic of China(the“PRC”).The unaudited interim condensed consolidated financial statements for the six months ended 31 December 2019 have been prepared in accordance

32、with Hong Kong Accounting Standard 34 Interim Financial Reporting(“HKAS 34”)issued by the Hong Kong Institute of Certified Public Accountants(“HKICPA”)and with the applicable disclosure requirements of Appendix 16 to the Rules Governing the Listing of Securities on the Stock Exchange(the“Listing Rul

33、es”).They have been prepared on the historical cost convention,except for financial assets at FVTPL and financial assets at FVTOCI which have been measured at fair value.These unaudited interim condensed consolidated financial statements are presented in Hong Kong dollars(“HK$”)and all values are ro

34、unded to the nearest thousand except when otherwise indicated.The unaudited interim condensed consolidated financial statements do not include all the information and disclosures required in the annual financial statements,and should be read in conjunction with the Groups annual financial statements

35、 for the year ended 30 June 2019,which have been prepared in accordance with Hong Kong Financial Reporting Standards(“HKFRSs”).2.SUMMARY OF SIGNIFICANT ACCOUNTING POLICIESThe preparation of unaudited interim condensed consolidated financial statements in compliance with HKAS 34 requires the use of c

36、ertain 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.The significant judgements made by the management in applying the Groups a

37、ccounting policies and the key sources of estimation uncertainty were the same as those that applied to the Groups annual consolidated financial statements for the year ended 30 June 2019.The accounting policies adopted in the unaudited interim condensed consolidated financial statements are consist

38、ent with those followed in the Groups annual financial statements for the year ended 30 June 2019,except for the adoption of the new or revised HKFRSs(which include individual Hong Kong Financial Reporting Standards,HKASs and Interpretations)as disclosed below.Other than changes in accounting polici

39、es resulting from application of new and amendments to HKFRSs,the accounting policies and methods of computation used in the condensed consolidated financial statements for the six months ended 31 December 2019 are the same as those presented in the Groups annual consolidated financial statements fo

40、r the year ended 30 June 2019.For the six months ended 31 December 2019 China Financial International Investments Limited8Notes to the Consolidated Financial Statements(Continued)2.SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES(Continued)Application of new and amendments to HKFRSsIn the current interim

41、period,the Group has applied,for the first time,the following new and amendments to HKFRSs issued by the HKICPA which are mandatorily effective for the annual period beginning on or after 1 January 2019 for the preparation of the Groups condensed consolidated financial statements:HKFRS 16LeasesHK(IF

42、RIC)-Int 23Uncertainty over Income Tax TreatmentsAmendments to HKFRS 9Prepayment Features with Negative CompensationAmendments to HKAS 19Plan Amendment,Curtailment or SettlementAmendments to HKAS 28Long-term Interests in Associates and Joint VenturesAmendments to HKFRSsAnnual Improvements to HKFRSs

43、2015 2017 CycleExcept as described below,the application of the new and amendments to HKFRSs in the current period has had no material impact on the Groups financial performance and positions for the current and prior periods and/or on the disclosures set out in these condensed consolidated financia

44、l statements.2.1 Impacts and changes in accounting policies of application on HKFRS 16“Leases”The Group has applied HKFRS 16 for the first time in the current interim period.HKFRS 16 superseded HKAS 17“Leases”(“HKAS 17”)and the related interpretations.2.1.1 Key changes in accounting policies resulti

45、ng from application of HKFRS 16The Group applied the following accounting policies in accordance with the transition provisions of HKFRS 16.Definition of a leaseA contract is,or contains,a lease if the contract conveys the right to control the use of an identified asset for a period of time in excha

46、nge for consideration.For contracts entered into or modified on or after the date of initial application,the Group assesses whether a contract is or contains a lease based on the definition under HKFRS 16 at inception or modification date.Such contract will not be reassessed unless the terms and con

47、ditions of the contract are subsequently changed.As a lesseeShort-term leasesThe Group applies the short-term lease recognition exemption to leases of land and building that have a lease term of 12 months or less from the commencement date and do not contain a purchase option.Lease payments on short

48、-term leases are recognised as expense on a straight-line basis over the lease term.For the six months ended 31 December 2019 Interim Report 20199Notes to the Consolidated Financial Statements(Continued)2.SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES(Continued)Application of new and amendments to HKFRS

49、s(Continued)2.1 Impacts and changes in accounting policies of application on HKFRS 16“Leases”(Continued)2.1.1 Key changes in accounting policies resulting from application of HKFRS 16(Continued)As a lessee(Continued)Right-of-use assetsExcept for short-term leases,the Group recognises right-of-use as

50、sets at the commencement date of the lease(i.e.the date the underlying asset is available for use).Right-of-use assets are measured at cost,less any accumulated depreciation and impairment losses,and adjusted for any remeasurement of lease liabilities.The cost of right-of-use asset includes:the amou

51、nt of the initial measurement of the lease liability;any lease payments made at or before the commencement date,less any lease incentives received;any initial direct costs incurred by the Group;and an estimate of costs to be incurred by the Group in dismantling and removing the underlying assets,res

52、toring the site on which it is located or restoring the underlying asset to the condition required by the terms and conditions of the lease.Right-of-use assets in which the Group is reasonably certain to obtain ownership of the underlying leased assets at the end of the lease term is depreciated fro

53、m commencement date to the end of the useful life.Otherwise,right-of-use assets are depreciated on a straight-line basis over the shorter of its estimated useful life and the lease term.The Group presents right-of-use assets as a separate line item on the condensed consolidated statement of financia

54、l position.Leasehold land and buildingFor payments of a property interest which includes both leasehold land and building elements,the entire property is presented as property,plant and equipment of the Group when the payments cannot be allocated reliably between the leasehold land and building elem

55、ents,except for those that are classified and accounted for as investment properties.Refundable rental depositsRefundable rental deposits paid are accounted under HKFRS 9“Financial Instruments”(“HKFRS 9”)and initially measured at fair value.Adjustments to fair value at initial recognition are consid

56、ered as additional lease payments and included in the cost of right-of-use assets.For the six months ended 31 December 2019 China Financial International Investments Limited10Notes to the Consolidated Financial Statements(Continued)2.SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES(Continued)Application o

57、f new and amendments to HKFRSs(Continued)2.1 Impacts and changes in accounting policies of application on HKFRS 16“Leases”(Continued)2.1.1 Key changes in accounting policies resulting from application of HKFRS 16(Continued)As a lessee(Continued)Lease liabilitiesAt the commencement date of a lease,th

58、e Group recognises and measures the lease liability at the present value of lease payments that are unpaid at that date.In calculating the present value of lease payments,the Group uses the incremental borrowing rate at the lease commencement date if the interest rate implicit in the lease is not re

59、adily determinable.The lease payments include:fixed payments(including in-substance fixed payments)less any lease incentives receivable;variable lease payments that depend on an index or a rate;amounts expected to be paid under residual value guarantees;the exercise price of a purchase option reason

60、ably certain to be exercised by the Group;and payments of penalties for terminating a lease,if the lease term reflects the Group exercising the option to terminate.After the commencement date,lease liabilities are adjusted by interest accretion and lease payments.The Group remeasures lease liabiliti

61、es(and makes a corresponding adjustment to the related right-of-use assets)whenever:the lease term has changed or there is a change in the assessment of exercise of a purchase option,in which case the related lease liability is remeasured by discounting the revised lease payments using a revised dis

62、count rate at the date of reassessment.variable lease payments that depend on an index or a rate;the lease payments change due to changes in market rental rates following a market rent review in which cases the related lease liability is remeasured by discounting the revised lease payments using the

63、 initial discount rate.Lease modificationsThe Group accounts for a lease modification as a separate lease if:the modification increases the scope of the lease by adding the right to use one or more underlying assets;and the consideration for the leases increases by an amount commensurate with the st

64、and-alone price for the increase in scope and any appropriate adjustments to that stand-alone price to reflect the circumstances of the particular contract.For a lease modification that is not accounted for as a separate lease,the Group remeasures the lease liability based on the lease term of the m

65、odified lease by discounting the revised lease payments using a revised discount rate at the effective date of the modification.For the six months ended 31 December 2019 Interim Report 201911Notes to the Consolidated Financial Statements(Continued)2.SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES(Continu

66、ed)Application of new and amendments to HKFRSs(Continued)2.1 Impacts and changes in accounting policies of application on HKFRS 16“Leases”(Continued)2.1.1 Key changes in accounting policies resulting from application of HKFRS 16(Continued)As a lessee(Continued)TaxationFor the purposes of measuring d

67、eferred tax for leasing transactions in which the Group recognises the right-of-use assets and the related lease liabilities,the Group first determines whether the tax deductions are attributable to the right-of-use assets or the lease liabilities.2.1.2 Transition and summary of effects arising from

68、 initial application of HKFRS 16Definition of a leaseThe Group has elected the practical expedient to apply HKFRS 16 to contracts that were previously identified as leases applying HKAS 17 and HK(IFRIC)-Int 4“Determining whether an Arrangement contains a Lease”and not apply this standard to contract

69、s that were not previously identified as containing a lease.Therefore,the Group has not reassessed contracts which already existed prior to the date of initial application.For contracts entered into or modified on or after 1 January 2019,the Group applies the definition of a lease in accordance with

70、 the requirements set out in HKFRS 16 in assessing whether a contract contains a lease.As a lesseeThe Group has applied HKFRS 16 retrospectively with the cumulative effect recognised at the date of initial application,1 January 2019.Any difference at the date of initial application is recognised in

71、the opening accumulated losses and comparative information has not been restated.When applying the modified retrospective approach under HKFRS 16 at transition,the Group applied the following practical expedients to leases previously classified as operating leases under HKAS 17,on lease-by-lease bas

72、is,to the extent relevant to the respective lease contracts at transition:i.elected not to recognise right-of-use assets and lease liabilities for leases with lease term ends within 12 months of the date of initial application;ii.excluded initial direct costs from measuring the right-of-use assets a

73、t the date of initial application;iii.applied a single discount rate to a portfolio of leases with a similar remaining terms for similar class of underlying assets in similar economic environment;andiv.used hindsight based on facts and circumstances as at date of initial application in determining t

74、he lease term for the Groups leases with extension and termination options.For the six months ended 31 December 2019 China Financial International Investments Limited12Notes to the Consolidated Financial Statements(Continued)2.SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES(Continued)Application of new a

75、nd amendments to HKFRSs(Continued)2.1 Impacts and changes in accounting policies of application on HKFRS 16“Leases”(Continued)2.1.2 Transition and summary of effects arising from initial application of HKFRS 16(Continued)As a lessee(Continued)On transition,the Group has made the following adjustment

76、s upon application of HKFRS 16:The Group recognised lease liabilities of HK$3,464,000 and right-of-use assets of HK$3,464,000 at 1 June 2019.When recognising the lease liabilities for leases previously classified as operating leases,the Group has applied incremental borrowing rates of the relevant g

77、roup entities at the date of initial application.The weighted average lessees incremental borrowing rate applied is 5.75%per annum.At 1 July2019HK$000Operating lease commitments disclosed as at 30 June 20196,308Lease liabilities discounted at relevant incremental borrowings rates4,782Less:Recognitio

78、n exemption short-term leases(1,318)Lease liabilities as at 1 July 20193,464Analysed asCurrent761Non-current2,7033,464The carrying amount of right-of-use assets as at 1 July 2019 comprises the following:Right-of-use assetsHK$000Right-of-use assets relating to operating leases recognised upon applica

79、tion of HKFRS 163,464By class:Land and buildings3,464For the six months ended 31 December 2019 Interim Report 201913Notes to the Consolidated Financial Statements(Continued)2.SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES(Continued)Application of new and amendments to HKFRSs(Continued)2.1 Impacts and ch

80、anges in accounting policies of application on HKFRS 16“Leases”(Continued)2.1.2 Transition and summary of effects arising from initial application of HKFRS 16(Continued)As a lessee(Continued)The following adjustments were made to the amounts recognised in the condensed consolidated statement of fina

81、ncial position at 1 July 2019.Line items that were not affected by the changes have not been included.Carrying amounts previouslyreported at 30 June 2019AdjustmentsCarryingamounts underHKFRS 16 at1 July 2019HK000HK000HK000Non-current assetsRight-of-use assets3,4643,464Current liabilitiesLease liabil

82、ities(761)(761)Non-current liabilitiesLease liabilities(2,703)(2,703)3.OPERATING SEGMENT INFORMATIONInformation reported to the executive directors of the Company,being the chief operating decision maker,for the purpose of resource allocation and assessment of segment performance focuses on the type

83、 and underlying business of the Groups investments.Specifically,the Groups reportable segments under HKFRS 8“Operating Segments”are as follows:1.Micro-loan service equity investments in investees engaged in micro-loan services2.Real estate and natural gas equity investments in investees engaged in r

84、eal estate and natural gas business3.Investment in fixed income financial assets debt investments4.Other equity investments in investees engaged in clean energy industry,guarantee service,investment and management consultation services and other businessesNo operating segments have been aggregated i

85、n arriving at the reportable segments of the Group.For the six months ended 31 December 2019 China Financial International Investments Limited14Notes to the Consolidated Financial Statements(Continued)3.OPERATING SEGMENT INFORMATION(Continued)Micro-loan serviceReal estate and natural gasInvestment i

86、n fixed Income Financial AssetsOthersTotalHK$000HK$000HK$000HK$000HK$000Six months ended 31 December 2019Segment results(10,014)(54,651)1,236(22,642)(86,071)Share of profit of an associate8Unallocated other income5,960Finance costs(1,676)Central administrative expenses(14,478)Loss before tax(96,257)

87、Six months ended 31 December 2018Segment results(85,989)62,14087,897(5,637)58,411Share of profit of an associate45Unallocated other income7,047Finance costs(1,588)Central administrative expenses(18,596)Profit before tax45,319Segment(loss)profit represent the(loss from)/profit earned by each segment

88、without allocation of share of profit of an associate,other income,finance costs and central administrative expenses.For the six months ended 31 December 2019 Interim Report 201915Notes to the Consolidated Financial Statements(Continued)3.OPERATING SEGMENT INFORMATION(Continued)Segment assetsThe fol

89、lowing is an analysis of the Groups assets by reportable segment:Unaudited31 December 2019Audited30 June2019HK$000HK$000Micro-loan service53,71763,832Real estate and natural gas128,528215,143Investment in fixed income financial assets161,019302,234Others585,498345,654Total segment assets928,762926,8

90、63Unallocated assets109,953239,329Consolidated assets1,038,7151,166,192For the purposes of monitoring segment performance and allocating resources between segments:all assets are allocated to reportable segments other than property,plant and equipment,interest in an associate,prepayments,deposits an

91、d other receivables and bank balances and cash;and no liabilities are allocated to reportable segments.4.REVENUE AND OTHER INCOMEAn analysis of revenue and other income is as follows:UnauditedSix months ended 31 December20192018HK$000HK$000RevenueDividend income from listed investments9463,068Intere

92、st income from unlisted investments18,25325,53319,19928,601Other incomeBank interest income2552,799Effective interest income derived from debt investments at FVTOCI58,900Reversal of impairment loss on other receivables1,313Reversal of loss allowance for debt investments at FVTOCI4,626Reversal of pro

93、vision for financial guarantee liabilities4,3924,2485,96070,573For the six months ended 31 December 2019 China Financial International Investments Limited16Notes to the Consolidated Financial Statements(Continued)5.FINANCE COSTSUnauditedSix months ended 31 December20192018HK$000HK$000Interest on bor

94、rowings1,5881,588Interest on lease liabilities881,6761,5886.INCOME TAX EXPENSEUnauditedSix months ended 31 December20192018HK$000HK$000Current PRC Provision for the period Overprovision in respect of prior year(98)(98)Deferred tax PRC Provision for the period29,52229,424On 21 March 2018,the Hong Kon

95、g Legislative Council passed The Inland Revenue(Amendment)(No.7)Bill 2017(the“Bill”)which introduces the two-tiered profits tax rates regime.The Bill was signed into law on 28 March 2018 and was gazetted on the following day.Under the two-tiered profits tax rates regime,the first HK$2,000,000 of pro

96、fits of the qualifying group entity will be taxed at 8.25%,and profits above HK$2,000,000 will be taxed at 16.5%.The profits of group entities not qualifying for the two-tiered profits tax rates regime will continue to be taxed at a flat rate of 16.5%.The directors of the Company considered the amou

97、nt involved upon implementation of the two-tiered profits tax rates regime as insignificant to the consolidated financial statements.Hong Kong Profits Tax is calculated at 16.5%of the estimated assessable profit for both periods.No provision for Hong Kong Profits Tax has been made in the financial s

98、tatements as the Group has no assessable profits for the year(31 December 2018:assessable profit of the Group is wholly absorbed by tax losses brought forward for the period).Under the Law of the Peoples Republic of China on Enterprise Income Tax(the“EIT Law”)and Implementation Regulation of the EIT

99、 Law,the tax rate of the PRC subsidiaries is 25%for both periods.For the six months ended 31 December 2019 Interim Report 201917Notes to the Consolidated Financial Statements(Continued)7.(LOSS)PROFIT FOR THE PERIODThe Groups profit before income tax is arrived at after charging/(crediting):Unaudited

100、Six months ended 31 December20192018HK$000HK$000Custodian fee8197Depreciation of property,plant and equipment141144Depreciation of right-of-use assets847Investment management fees560798(Reversal of)loss allowance for deposits and other receivable(1,313)1,457Reversal of provision for financial guaran

101、tee liabilities(4,392)(4,248)Staff costs,including directors remuneration:Salaries and wages5,3746,246 Pension scheme contributions7493 Staff quarters expenses1008.DIVIDENDThe directors did not recommend the payment of an interim dividend for the six months ended 31 December 2019(31 December 2018:Ni

102、l).9.(LOSS)EARNINGS PER SHAREThe calculation of the basic(loss)earnings per share attributable to owners of the Company is based on the following data:UnauditedSix months ended 31 December20192018HK$000HK$000(Loss)earnings for the period attributable to owners of the Company for the purpose of basic

103、 loss per share(96,257)15,895Number of shares20192018000000Weight average number of ordinary shares for the purpose of basic loss per share10,971,63410,971,634No diluted(loss)earnings per share for both periods were presented as there were no potential ordinary shares in issue for both periods.For t

104、he six months ended 31 December 2019 China Financial International Investments Limited18Notes to the Consolidated Financial Statements(Continued)10.PROPERTY,PLANT AND EQUIPMENTUnaudited31 December 2019Audited30 June2019HK$000HK$000Opening net book value4912,847Additions7Depreciation provided during

105、the period/year(141)(2,363)Closing net book value35049111.INTEREST IN AN ASSOCIATEUnaudited31 December 2019Audited30 June2019HK$000HK$000Cost of investment in an associate290290Share of post-acquisition losses and other comprehensive income871863Closing net book value1,1611,153Name of associatePlace

106、 ofincorporationPrincipalplace ofbusinessPaid upissuedcapitalProportion of ownershipinterest and voting rightsheld by the GroupPrincipal activity31 December 201930 June 2019China Financial International Investments&Managements Limited(“CFIIM”)Hong KongHong KongHK$1,000,00029%29%Provision of asset ma

107、nagement servicesFor the six months ended 31 December 2019 Interim Report 201919Notes to the Consolidated Financial Statements(Continued)12.FINANCIAL ASSETS AT FVTPLUnaudited31 December 2019Audited30 June2019NotesHK$000HK$000Financial assets mandatorily measured at FVTPL:Listed securities held for t

108、rading Equity securities listed in Hong Kong(i)154,189214,763Financial assets classified/designated at FVTPL:Unlisted equity investments(ii)551,851313,408Total706,040528,171Analysed for reporting purposes as:Current assets154,189214,763Non-current assets551,851313,408706,040528,171Notes:(i)The fair

109、values of listed securities are determined based on the quoted market bid prices available on the relevant exchange at the end of the period.Particular of the major components of the investment portfolio as at 31 December 2019,in terms of the carrying value of the respective individual investment,ar

110、e as follows:China City Infrastructure Group Limited(“China City Infrastructure”)As at 31 December 2019 and 30 June 2019,the Group held 436,079,429 shares in China City Infrastructure,representing approximately 13.94%of the issued share capital of China City Infrastructure.As at 31 December 2019,the

111、 market value of the investment in the shares of China City Infrastructure was HK$64,540,000(30 June 2019:HK$117,741,000).Sino-Ocean Group Holding Limited(“Sino-Ocean Group”)As at 31 December 2019 and 30 June 2019,the Group held 8,055,000 shares in Sino-Ocean Group,representing approximately 0.11%of

112、 the issued share capital of Sino-Ocean Group.Sino-Ocean Group is principally engaged in investment holding,property development and property investment in the PRC.As at 31 December 2019,the market value of the investment in the shares of Sino-Ocean Group was HK$25,212,000(30 June 2019:HK$26,662,000

113、).Hidili Industry International Development Limited(“Hidili Industry”)As at 31 December 2019 and 30 June 2019,the Group held 12,369,000 shares in Hidili Industry,representing approximately 0.6%of the issued share capital of Hidili Industry.Hidili Industry is principally engaged in coal mining and ma

114、nufacture and sale of clean coal.As at 31 December 2019,the market value of the investment in the shares of Hidili Industry was HK$3,649,000(30 June 2019:HK$3,340,000).China Communications Construction Co Ltd(“China Communications”)As at 31 December 2019 and 30 June 2019,the Group held 9,588,000 sha

115、res in China Communications,representing approximately 0.22%of the issued share capital of China Communications.China Communications is principally engaged in infrastructure construction,infrastructure design and dredging businesses.As at 31 December 2019,the market value of the investment in the sh

116、ares of China Communications was HK$60,788,000(30 June 2019:HK$67,020,000).For the six months ended 31 December 2019 China Financial International Investments Limited20Notes to the Consolidated Financial Statements(Continued)12.FINANCIAL ASSETS AT FVTPL(Continued)Notes:(Continued)(ii)At the end of t

117、he reporting period,the Group had the following unlisted equity investmentsNameNotesPlace of incorporation/registration and businessGroups effective interestPrincipal activitiesUnaudited 31 December 2019Fair value Unaudited 31 December 2019 CostAudited 30 June 2019Fair valueAudited 30 June 2019CostU

118、naudited 31 December 2019Audited 30 June 2019HK$000HK$000HK$000HK$000Micro-loan service:Tianjin Rongshun Microfinance Limited(“Tianjin Rongshun”)(a)The People Republic of China (The“PRC”)30%30%Provision of small loan and financial consultation services2,61836,6061,79936,606TIIC RongShun Micro-Loan C

119、ompany Limited(“TIIC Rongshun”)(b)The PRC10%10%Provision of small loan and financial consultation services3,47812,1894,34412,189Tianjin Binlian Microfinance Limited(c)The PRC3.3%3.3%Provision of small loan and financial consultation services1,10312,2711,19312,271Ezhou Zhongjinguotou Microfinance Lim

120、ited(“Ezhou Zhongjinguotou”)(d)The PRC50%50%Provision of small loan and financial consultation services17,824185,00020,439185,000Ziyang Yanjiang CFI GuoSen Microfinance Co.,Ltd(“Ziyang Yanjiang”)(e)The PRC30%30%Provision of small loan and financial consultation services12673,73014173,730Nanjing Jian

121、gning MingYangRongTong Agricultural Microfinance Co.,Ltd(“Nanjing Jiangning”)(f)The PRC30%30%Provision of small loan and financial consultation service8,70436,67311,04136,673Tianjin Rongyang Micro-Loan Limited(“Tianjin Rongyang”)(g)The PRC30%30%Provision of small loan and financial consultation serv

122、ices6,28736,74110,67936,741Zhenjiang CFI Guosen Technology Microfinance Corporation Limited(“Zhenjiang CFI”)(h)The PRC30%30%Provision of small loan and financial consultation service13,16056,87413,68056,874For the six months ended 31 December 2019 Interim Report 201921Notes to the Consolidated Finan

123、cial Statements(Continued)NameNotesPlace of incorporation/registration and businessGroups effective interestPrincipal activitiesUnaudited 31 December 2019Fair value Unaudited 31 December 2019 CostAudited 30 June 2019Fair valueAudited 30 June 2019CostUnaudited 31 December 2019Audited 30 June 2019HK$0

124、00HK$000HK$000HK$000Others:Xian Kairong Financial Service Limited(i)The PRC30%30%Provision of financial management services5,48618,7247,25118,724Hubei Zhongjin Tech Financial Services Co.,Ltd.(“Hubei Zhongjin”)(j)The PRC30%30%Provision of financial management services3,68919,0304,11719,030Henan Tian

125、guan Energy and Biotechnology Company Limited(“Henan Tianguan”)(k)The PRC30%30%Production and sales of denatured fuel ethanol,sales of acetone,butanol,polyols,production and sales of biodegradable plastics and biodiesel,sales of chemical products,wheat bran flour,feed sales,acetic acid and acetaldeh

126、yde production170,968230,763187,524230,763Hunan South China New Energy Limited(“Hunan South China”)(l)The PRC30%30%New energy technology development,transfer and consultation,research and development,manufacturing and sales of chemical products,chemical reagents and auxiliaries(excluding hazardous c

127、hemicals and precursor chemicals)50,33651,20051,20051,200Henan Keyi Huirui Energy and Biotechnology Company Limited(“Keyi Huirui”)(m)The PRC30%Biotechnology energy technology development,transfer and consultation,research and development,manufacturing and sales of biotechnology energy and chemical e

128、quipment117,450117,450Tianguan New Energy Limited(“Tianguan New Energy”)(n)The PRC5%Ethanol products transportation,development,trading and consultation service557557Mengzhou Houyuan Biotechnology Limited(“Mengzhou Houyuan”)(o)The PRC30%Biotechnology and Ethanol bio-chemical product development and

129、production of ethanol chemical products150,065148,118551,851313,40812.FINANCIAL ASSETS AT FVTPL(Continued)Notes:(Continued)(ii)At the end of the reporting period,the Group had the following unlisted equity investments(Continued)For the six months ended 31 December 2019 China Financial International

130、Investments Limited22Notes to the Consolidated Financial Statements(Continued)12.FINANCIAL ASSETS AT FVTPL(Continued)Notes:(Continued)(ii)At the end of the reporting period,the Group had the following unlisted equity investments(Continued)(a)On 24 August 2011,the Group invested in a 30%equity intere

131、st of Tianjin Rongshun,a joint venture established in the PRC.Tianjin Rongshun is principally engaged in the provision of small loan and financial consultation services in Tianjin,the PRC.(b)On 2 September 2011,the Group invested in a 10%equity interest of TIIC Rongshun,a joint venture established i

132、n the PRC.TIIC Rongshun is principally engaged in the provision of small loan and financial consultation services in Tianjin,the PRC.(c)On 13 January 2012,the Group invested in a 10%equity interest of Tianjin Binlian,a joint venture established in the PRC.The Groups equity interest in Tianjin Binlia

133、n was reduced to 3.3%on 22 January 2014,as the registered capital of Tianjin Binlian was enlarged by the new registered capital subscribed by its other shareholders on that date.Tianjin Binlian is principally engaged in the provision of small loan and financial consultation services in Tianjin,espec

134、ially Dongli District,the PRC.(d)On 2 March 2012,the Group invested in a 30%equity interest of Ezhou Zhongjinguotou,a joint venture established in the PRC.Ezhou Zhongjinguotou is principally engaged in the provision of small loan and financial consultation services in Ezhou,Hubei Province,the PRC.On

135、 18 December 2016,the shareholders resolution of Ezhou Zhongjinguotou approved some existing shareholders of Ezhou Zhongjinguotou to withdraw their capital commitment in the sum of RMB200,000,000 in Ezhou Zhongjinguotou so that the registered capital of Ezhou Zhongjinguotou was reduced from RMB500,0

136、00,000 to RMB300,000,000.Due to the reduction in registered capital,the shareholding of the Company in Ezhou Zhongjinguotou inevitably increased from 30%to 50%.In order to comply with Rule 21.04(3)(a)of the Listing Rules,the Company shall voluntarily relinquish the voting rights beyond 30%.Given tha

137、t the reduction in the registered capital of Ezhou Zhongjinguotou is beyond the control of the Company,the Company is in the passive role in respect of its increase in the shareholdings in Ezhou Zhongjinguotou.The relinquishment of the voting rights is an interim arrangement and the Company still po

138、ssesses other rights such as the rights to receive dividends.The directors consider that the relinquishment of the voting rights arrangement is in the interest of the Company and its shareholders as a whole.The Company is now actively seeking potential buyers to dispose of the additional non-voting

139、shareholdings in Ezhou Zhongjinguotou or to restore the shareholdings in Ezhou Zhongjinguotou to 30%.For the six months ended 31 December 2019 Interim Report 201923Notes to the Consolidated Financial Statements(Continued)12.FINANCIAL ASSETS AT FVTPL(Continued)Notes:(Continued)(ii)At the end of the r

140、eporting period,the Group had the following unlisted equity investments(Continued)(e)On 6 August 2012,the Group invested in a 30%equity interest of Ziyang Yanjiang,a joint venture established in the PRC.Ziyang Yanjiang is principally engaged in the provision of small loan and financial consultation

141、services in Ziyang,Sichuan Province,the PRC.(f)On 31 August 2012,the Group invested in a 30%equity interest of Nanjing Jiangning,a joint venture established in the PRC.Nanjing Jiangning is principally engaged in the provision of small loan and financial consultation services in Jiangning District,Na

142、njing,Jiangsu Province,the PRC.(g)On 13 September 2012,the Group invested in a 30%equity interest of Tianjin Rongyang,a joint venture established in the PRC.Tianjin Rongyang is principally engaged in the provision of small loan and financial consultation services in Tianjin,the PRC.(h)On 22 November

143、 2013,the Group invested in a 30%equity interest of Zhenjiang CFI,a joint venture established in the PRC.Zhenjiang CFI is principally engaged in the provision of small loan and financial consultation services in Zhenjiang,Jiangsu Province,the PRC.(i)On 18 December 2012,the Group invested in a 30%equ

144、ity interest of Xian Kairong,a joint venture established in the PRC.Xian Kairong is principally engaged in the provision of financial management services to SMEs in Xian Economic Development Zone,Shaanxi Province,the PRC.(j)On 22 September 2014,the Group invested in a 30%equity interest of Hubei Zho

145、ngjin,a joint venture established in the PRC.Hubei Zhongjin is principally engaged in the provision of financial management services to SMEs in Wuhan,Hubei Province,the PRC.(k)On 11 May 2018,the Group invested in a 30%equity interest of Henan Tianguan,a joint venture established in the PRC.Henan Tia

146、nguan is principally engaged in Production and sales of denatured fuel ethanol,sales of acetone,butanol,polyols,production and sales of biodegradable plastic and biodiesel,sales of chemical products,wheat bran flour,feed sales,acetic acid and acetaldehyde production.(l)In January 2019,Keyi(Shanghai)

147、Investments Limited(“Keyi(Shanghai)”),a wholly-owned subsidiary of the Company,entered into an agreement with Hunan South China to inject capital contribution of RMB45,000,000 into Hunan South China for acquiring 30%of Hunan South Chinas equity interest.Hunan South China is engaged in new energy tec

148、hnologies development,transfer and consultation,research and development,manufacturing and sales of chemical products,chemical reagents and auxiliaries(excluding hazardous chemicals and precursor chemicals).On 23 January 2019,the legal title of the 30%equity interest in Hunan South China has been su

149、ccessfully transferred to Keyi(Shanghai).(m)In August 2019,Keyi(Shanghai)entered into an agreement with 3 partners in relation to the formation of Keyi Huirui.The registered capital of Keyi Huirui is RMB350,000,000.Keyi(Shanghai)injected RMB105,000,000 for acquiring 30%of Keyi Huiruis equity interes

150、t.Keyi Huirui is engaged in Biotechnology energy technology development transfer and consultation research and development,manufacturing and sales of biotechnology energy and chemical equipment.On 5 September 2019,Keyi Huirui was officially set up.(n)In October 2019,the Group invested in a 5%equity

151、interest of Tianguan New Energy,a joint venture established in the PRC.Tianguan New Energy is principally enegaged in ethanol products transportation,development trading and consultation service in Huizhou,Guangdong Province,the PRC.(o)On 17 October 2019,the Group entered into an agreement with Holl

152、ys(China)Limited(“Hollys”)to get the repayment of outstanding principle and interests of the bond issued by Hollys in return of the 30%equity interest of Mengzhou Houyuan.Mengzhou Houyuan is principally engaged in biotechnology and ethanol bio-chemical product development and production of ethanol c

153、hemical products in Henan Province,the PRC.For the six months ended 31 December 2019 China Financial International Investments Limited24Notes to the Consolidated Financial Statements(Continued)12.FINANCIAL ASSETS AT FVTPL(Continued)Notes:(Continued)(ii)At the end of the reporting period,the Group ha

154、d the following unlisted equity investments(Continued)The fair values of all the above investments were determined by the directors of the Company with reference to the professional valuation carried out by Asset Appraisal Limited,an independent valuer.At the end of the period,the Group held more th

155、an 20%of the effective shareholding interest in the above investee companies.The investments in these companies are not accounted for as associates as the Group had no significant influence over these companies.In accordance with the relevant agreement signed between the Group and these investee com

156、panies as well as the other shareholders of the investee companies,the Group does not have the right to participate in its policy-making processes,to appoint directors nor management and to interchange of managerial personnel.Hence,all of these investments are not regarded as associates of the Group

157、 and are accounted for as financial assets at FVTPL for the period/year ended 31 December 2019 and 30 June 2019.13.EQUITY INSTRUMENTS AT FVTOCIUnaudited31 December 2019Audited30 June2019HK$000HK$000Listed investments:Equity securities listed in Hong Kong(Note i)38,77670,740Unlisted investments:Equit

158、y securities(Note ii)22,92725,718Total61,70396,458Notes:(i)Listed equity securitiesThe fair values of listed equity securities are determined based on the quoted market bid prices available on the relevant exchange at the end of the reporting period.Particulars of the investment as at 31 December 20

159、19,in terms of the carrying value of the listed investment,are as follows:China City Infrastructure Group Limited(“China City Infrastructure”)On 21 June 2016,the Company and China City Infrastructure,a company listed on the Stock Exchange,entered into the share subscription agreement to subscribe fo

160、r 262,000,000 new shares of China City Infrastructure with a one-year lock-up period for a total subscription price of HK$131,000,000 at HK$0.50 per share.The transaction was completed on 28 June 2016.At 31 December 2019 and 30 June 2019,the 262,000,000 shares representing approximately 8.4%of the e

161、ntire issued share capital in China City Infrastructure.China City Infrastructure is principally engaged in infrastructure businesses,property investment,property development,hotel business,property management and natural gas in the PRC.As at 30 June 2019,the fair value of the Groups interest in Chi

162、na City Infrastructure was HK$38,776,000(30 June 2018:HK$70,740,000).For the six months ended 31 December 2019 Interim Report 201925Notes to the Consolidated Financial Statements(Continued)13.EQUITY INSTRUMENTS AT FVTOCINotes:(Continued)(ii)Unlisted equity investmentsAs at 31 December 2019,the Group

163、 held the following unlisted equity investments:NameNotesPlace of incorporation/registration and businessGroups effective interestPrincipal activitiesUnaudited 31 December 2019Fair value Unaudited 31 December 2019 CostAudited 30 June 2019Fair valueAudited 30 June 2019CostUnaudited 31 December 2019Au

164、dited 30 June 2019HK$000HK$000HK$000HK$000Micro-loan services:Jingdezhen CFI Guosen Microfinance Co.,Ltd.(“Jingdezhen CFI Guosen”)(a)The PRC40%40%Provision of small loan and financial consultation services417188,690516188,690Others:Jiangxi Huazhang Hanchen Guarantee Group Limited(“Jiangxi Huazhang”)

165、(b)The PRC2.98%2.98%Provision of financing guarantees to small and medium enterprises(“SMEs”)22,51043,15025,20243,150Shenzhen Zhongtoujinxin Asset Management Company Limited(“Zhongtoujinxin”)(c)The PRC30%30%Provision of consultation services on project investments18,35018,35022,92725,718(a)On 26 May

166、 2011 and 28 November 2012,the Group invested in 23.33%and 6.67%equity interests of Jingdezhen CFI Guosen,respectively,a joint venture established in the PRC.Jingdezhen CFI Guosen is principally engaged in the provision of small loan and financial consultation services in Jingdezhen,the PRC.On 1 Jun

167、e 2016,the Groups equity interests in Jingdezhen CFI Guosen changed from 30%to 40%due to previous shareholders of Jingdezhen CFI Guosen withdrew their capital commitment in the sum of RMB125,000,000 in Jingdezhen CFI Guosen and the registered capital of Jingdezhen CFI Guosen was reduced from RMB500,

168、000,000 to RMB375,000,000.Due to the reduction in registered capital,the shareholding of the Company in Jingdezhen CFI Guosen inevitably and automatically increased from 30%to 40%.In order to comply with Rule 21.04(3)(a)of the Listing Rules,the Company voluntarily relinquished the voting rights beyo

169、nd 30%.Given that the reduction in the registered capital of Jingdezhen CFI Guosen is beyond the control of the Company,the Company is in the passive role in respect of its increase in the shareholdings in Jingdezhen CFI Guosen.The relinquishment of the voting rights is an interim arrangement and th

170、e Company still possesses other rights such as the rights to receive dividends.The directors of the Company consider that the relinquishment of the voting rights arrangement is in the interest of the Company and its shareholders as a whole.The Company is now actively seeking potential buyers to disp

171、ose of the additional non-voting shareholdings in Jingdezhen CFI Guosen or to restore the shareholdings in Jingdezhen CFI Guosen to 30%.For the six months ended 31 December 2019 China Financial International Investments Limited26Notes to the Consolidated Financial Statements(Continued)13.EQUITY INST

172、RUMENTS AT FVTOCI(Continued)Notes:(Continued)(ii)Unlisted equity investments(Continued)(b)On 13 April 2011,the Group acquired a 30%equity interest of Jiangxi Huazhang,a joint venture established in the PRC.The Groups equity interest in Jiangxi Huazhang became 7.2%on 15 July 2013 and dropped to 2.98%

173、on 19 August 2016,as the registered capital of Jiangxi Huazhang was enlarged by the new registered capital subscribed by its other shareholders on those dates.Jiangxi Huazhang is principally engaged in the provision of financing guarantees to SMEs in the Jiangxi Province,the PRC.(c)On 29 April 2011,

174、the Group invested in a 30%equity interest of Zhongtoujinxin,a joint venture established in the PRC.The first contribution of RMB6,000,000(equivalent to HK$7,200,000)was made by the Company in 2011 and the second contribution of RMB9,000,000(equivalent to HK$11,150,000)was made on 10 May 2012.Zhongt

175、oujinxin is principally engaged in the provision of consultation services for project investments in the PRC.The fair values of all of the above investments were determined by the directors of the Company with reference to the professional valuation carried out by Asset Appraisal Limited,an independ

176、ent valuer.As the end of the reporting period,the Group held more than 20%of the effective shareholding interest in these above investee companies.The investments in these companies are not accounted for as associates as the Group had no significant influence over these companies.In accordance with

177、the relevant agreement signed between the Group and these investee companies as well as the other shareholders of the investee companies,the Group does not have the right to participate in its policy-making processes,to appoint directors nor management and to interchange of managerial personnel.Henc

178、e,all of theses investments are not regarded as associates of the Group and are accounted for as equity instruments at FVTOCI for the period/year ended 31 December 2019 and 30 June 2019.14.PREPAYMENTS,DEPOSITS AND OTHER RECEIVABLESUnaudited31 December 2019Audited30 June2019NotesHK$000HK$000Deposits

179、paid for potential investments(i)30,00038,475Rental and utilities deposits976827Dividends receivable(ii)1,14410,691Consideration receivable for disposal of an investment(iii)113,792Other receivables(iv)46,38956,48278,509220,267Less:loss allowance(18,424)(19,069)60,085201,198Prepayments36336360,44820

180、1,561Analysed for reporting purposes as:Current assets60,254201,364Non-current assets19419760,448201,561For the six months ended 31 December 2019 Interim Report 201927Notes to the Consolidated Financial Statements(Continued)14.PREPAYMENTS,DEPOSITS AND OTHER RECEIVABLES(Continued)Notes:(i)Deposits pa

181、id for potential investmentsUnaudited31 December 2019Audited30 June2019HK$000HK$000Shenzhen Xinyu Tianfan Mining DevelopmentCompany Limited(Note(a)18,475Mr.Peng Kexi(“Mr.Peng”)(Note(b)20,00020,000Mr.Zhang Gui Qing10,00030,00038,475Less:loss allowance(1,780)(3,013)28,22035,462(a)During the year ended

182、 30 June 2018,Keyi(Shanghai)entered into an agreement(“Agreement 1”)with an independent third party,Shenzhen Xinyu Tianfan Mining Development Company Limited（深圳市新宇天帆礦業開發有限公司）(“Xinyu Tianfan”).Pursuant to Agreement 1,Xinyu Tianfan is responsible for assisting to seek and recommend potential investmen

183、ts to the Company with a term of two years,the Company agreed to provide the deposit to Xinyu Tianfan amounted to RMB16,235,700(equivalent to HK$18,475,000 as at 30 June 2019),the deposit will be refunded after the period expired and is interest free.During the year ended 30 June 2019,the provisiona

184、l for ECL in respect of the deposit paid to Xinyu Tianfan was HK$1,233,000.At 31 December 2019,the deposit has been fully recovered and refunded to the Group.The provisional for ECL was reversed.(b)During the year ended 30 June 2018,the Company entered into an agreement(“Agreement 2”)with an indepen

185、dent third party,Mr.Peng.Pursuant to Agreement 2,Mr.Peng is responsible for assisting to seek and recommend potential investments in the PRC to the Company with a term of two years,and the Company agreed to provide the deposit to Mr.Peng amounted to HK$20,000,000 during the period as agreed,the depo

186、sit will be refunded after the period expired and is interest free.As at 31 December 2019 and 30 June 2019,the deposit remained unutilised.At 31 December 2019 and 30 June 2019,the provisional for ECL in respect of the deposit paid to Mr.Peng was HK$1,780,000.(ii)Dividends receivable represents divid

187、ends declared from the financial assets at FVTPL which are scheduled for payment after the end of the reporting period.As at the date of approval of these consolidated financial statements,all such dividends have been received by the Group.(iii)As at 30 June 2018,deposits paid of RMB100,000,000 of d

188、eposit paid for the potential investment of 25%equity interest in Liaoyuan Jufeng Biochemistry Science and Technology Co,Limited(“Liaoyuan Jufeng”).Pursuant to the investment agreement signed on 28 June 2018,the investment in Liaoyuan Jufeng by the Group would be effective upon the legal title of su

189、ch 25%equity interests was successfully transferred to the Group.In April 2019,due to managements further diversifying the Groups investments and to comply with Rules 21.04(3)(a)of the Listing Rules,the 25%equity interest in Liaoyuan Jufeng was disposed to a third party at cash consideration equival

190、ent to the investment cost of RMB100,000,000.No gain or loss was resulted from the disposal.The cash consideration of RMB100,000,000 had been received in full by the Group during the period ended 31 December 2019.For the six months ended 31 December 2019 China Financial International Investments Lim

191、ited28Notes to the Consolidated Financial Statements(Continued)14.PREPAYMENTS,DEPOSITS AND OTHER RECEIVABLES(Continued)Notes:(Continued)(iv)At the end of the period ended 31 December 2019,other receivables mainly comprise interest receivables on debt instruments at FVTOCI of HK$18,308,000(net of los

192、s allowance of HK$16,644,000)(30 June 2019:interest receivables on financial assets at FVTPL of HK$24,511,000)and sundry receivables.At 30 June 2019 and 31 December 2019,provisional for ECL in respect of the other receivables amounted to HK$16,056,000 and HK$16,644,000 respectively.15.DEBT INSTRUMEN

193、TS AT FVTOCIUnaudited31 December 2019Audited30 June2019HK$000HK$000Unlisted investments,at fair value161,019302,234At the end of the reporting period,the Group held the following secured unlisted bond investments:Name of companyNotesBusiness natureUnaudited 31 December 2019 Fair valueUnaudited 31 De

194、cember 2019 CostAudited 30 June 2019 Fair valueAudited 30 June 2019 CostHK$000HK$000HK$000HK$000Hollys(China)Limited(“Hollys”)(a)Engaged in coffee shop franchise in the PRC124,200200,000Pure Unity Investments Limited(“Pure Unity”)(b)Investment holding77,238190,00084,584190,000Talent Trend Global Lim

195、ited (“Talent Trend”)(c)Investment holding64,947160,00074,425160,000Xing Yue Investments Limited (“Xing Yue”)(d)Investment holding18,83420,00019,02520,000161,019370,000302,234570,000Notes:(a)On 18 October 2016,Joy State Holdings Limited(“Joy State”),a wholly-owned subsidiary of the Company,subscribe

196、d a three-year bond with nominal value of HK$200,000,000 issued by Hollys.The bond carries interest at a rate of 9%per annum,which is receivable by the Group semi-annually in arrears.During the period ended 31 December 2019,the Group entered into an agreement with Hollys to get the repayment of the

197、outstanding principle and interests of the bond in return of the 30%equity interest of Mengzhou Houyuan(Note 12(o).For the six months ended 31 December 2019 Interim Report 201929Notes to the Consolidated Financial Statements(Continued)15.DEBT INSTRUMENTS AT FVTOCI(Continued)Notes:(Continued)(b)On 21

198、 November 2016,China Financial International Investments(Nanchang)Limited(“CFII(Nanchang)”),a wholly-owned subsidiary of the Company,entered into a subscription agreement to subscribe a three-year bond issued by Pure Unity.The nominal value of the bond is HK$200,000,000.The bond carries interest at

199、a rate of 9%per annum,which is receivable by the Group semi-annually in arrears.Pure Unity redeemed HK$10,000,000 during the year ended 30 June 2017,accordingly,the nominal value of the bond was reduced to HK$190,000,000.The principal and interest of the bond had been past due for the repayment for

200、the period ended 31 December 2019.The bond is considered as credit-impaired.At the period ended 31 December 2019,Mr.Feng Xin is the sole shareholder and the sole director of Pure Unity,and also a substantial shareholder of the Company.The bond is secured by:(1)100%unlisted equity interests in Pure U

201、nity pledged to the Group by Mr.Feng Xin;and(2)760,000,000 shares of the Company,with a market value of HK$84,360,000(30 June 2019:HK$99,560,000)held by Pure Unity.The bond was already overdue since 21 November 2019 and the management is under negotiation with Pure Unity since Pure Unity is seeking

202、for postponement of repayment and/or renewal of the bond.Up to the date when the unaudited interim financial statements of the period ended 31 December 2019 were authorised for issue,no renewed subscription agreement of the bond was entered into nor the outstanding balances have been settled.(c)On 2

203、1 November 2016,China Financial International Investments(Henan)Limited,a wholly-owned subsidiary of the Company,entered into a subscription agreement to subscribe a three-year bond issued by Talent Trend.The nominal value of the bond is HK$160,000,000.The bond carries interest at a rate of 9%per an

204、num,which is receivable by the Group semi-annually in arrears.The principal and interest of the bond had been past due for the repayment for the period ended 31 December 2019.The bond is considered as credit-impaired.At the period ended 31 December 2019,Mr.Feng Xu is the sole shareholder and the sol

205、e director of Talent Trend,and also a substantial shareholder of the Company.The bond is secured by(1)100%unlisted equity interests in Talent Trend pledged to the Group by Mr.Feng Xu;and(2)640,000,000 shares of the Company,with a market value of HK$71,040,000(2018:HK$83,840,000)held by Talent Trend.

206、The bond was already overdue since 21 November 2019 and the management is under negotiation with Talent Trend since Talent Trend is seeking for postponement of repayment and/or renewal of the bond.Up to the date when the unaudited interim financial statements of the period ended 31 December 2019 wer

207、e authorised for issue,no renewed subscription agreement of the bond was entered into nor the outstanding balances have been settled.(d)On 8 March 2018,the Company entered into a subscription agreement to subscribe a three-month bond issued by Xing Yue.The nominal value of the bond is HK$20,000,000.

208、The bond carries interest at a rate of 9%per annum,which is receivable by the Group on the bond maturity date.The principal and interest of the bond had been past due for repayment as at 30 June 2019.The bond was considered as credit-impaired.As at 31 December 2019,Ms.Dong Lili is the sole sharehold

209、er and the sole director of Xing Yue.The bond is secured by(1)100%unlisted equity interests in Xing Yue pledged to the Group by Ms.Dong Lili and(2)200,000,000 shares of the Company,with a market value of HK$22,200,000 of which 100,000,000 shares held by Xing Yue and another 100,000,000 shares held b

210、y Rightfirst Holdings Limited,which is beneficially owned by Mr.Du Lin Dong,the executive director and a shareholder of the Company.The bond was already overdue since 8 June 2018 and the management is under negotiation with Xing Yue since Xing Yue is seeking for postponement of repayment and/or rene

211、wal of the bond.Up to the date when the unaudited interim financial statements of the period ended 31 December 2019 were authorised for issue,no renewed subscription agreement of the bond was entered into nor the outstanding balances have been settled.The fair values of all the above investments wer

212、e determined by the directors of the Company with reference to the professional valuation carried out by Asset Appraisal Limited,an independent valuer.For the six months ended 31 December 2019 China Financial International Investments Limited30Notes to the Consolidated Financial Statements(Continued

213、)16.BORROWINGSUnaudited31 December 2019Audited30 June2019HK$000HK$000Bonds(unsecured)62,97562,975The carrying amount of the above borrowings are repayable (based on scheduled repayment dates set out in the loan agreements):Within one year9,9909,990Within a period of more than one year but not exceed

214、ing two years52,98552,985Within a period of more than two years but not exceeding five years62,97562,975Analysed for reporting purposes as:Current liabilities9,9909,990Non-current liabilities52,98552,98562,97562,975As at 31 December 2019 and 30 June 2019,bonds with a total nominal amount of HK$63,00

215、0,000 were issued to independent third parties at 5%interest rate per annum with maturity dates ranging from years 2020 to 2021,being seven years maturity from the date of issue.17.FINANCIAL GUARANTEE CONTRACTSThe movement of provision for financial guarantee contracts during the current and prior p

216、eriods are as follows:Unaudited31 December 2019Audited30 June2019HK$000HK$000At beginning of the year10,67933,986Decrease in fair value of financial guarantee contract(4,392)(3,307)Release of financial guarantee contract(20,000)At end of the period/year end6,28710,679In 2012,the Company provided irr

217、evocable guarantee to Tianjin XEDA and Tianjin Rongyang to secure the loans granted to certain customers(the“Customers”)of Tianjin XEDA and Tianjin Rongyang referred by Nanjing Xinning Guangdian Zidonghua Limited（南京新寧光電自動化有限公司）(“Xinning Guangdian”),an independent third party,using the Companys entir

218、e equity interests in TianJin XEDA and Tianjin Rongyang.The maximum exposure of the Group associated to such financial guarantees is limited to the fair value of the collaterals offered by the Group,i.e.the Groups entire equity in TianJin XEDA and Tianjin Rongyang.For the six months ended 31 Decembe

219、r 2019 Interim Report 201931Notes to the Consolidated Financial Statements(Continued)17.FINANCIAL GUARANTEE CONTRACTS(Continued)The Group holds 30%equity interest in each of TianJin XEDA and Tianjin Rongyang as of 30 June 2018.During the year ended 30 June 2019,the Group disposed of its entire inter

220、est in TianJin XEDA and the related guarantee was released.At the end of 31 December 2019 and 30 June 2019,the loans granted to the Customers of Tianjin Rongyang under such guarantees were approximately RMB25,000,000.18.SHARE CAPITAL OF THE COMPANYUnaudited31 December 2019Audited30 June 2019Number o

221、fNumber ofshares 000HK$000shares 000HK$000Authorised:Ordinary shares of HK$0.01 each30,000,000300,00030,000,000300,000Issued and fully paid:Ordinary shares of HK$0.01 each10,971,634109,71710,971,634109,71719.SHARE-BASED PAYMENT TRANSACTIONSUnder the share option scheme adopted by the Company on 15 J

222、anuary 2008(the“Scheme”),options were granted to certain directors and consultants entitling them to subscribe for shares of the Company under the Scheme.The Scheme was approved and adopted by shareholders of the Company on 15 January 2008(the“Date of Adoption”),whereby the directors of the Company

223、are authorised,at their discretion,to invite full time employees of the Group,(including executive and non-executive directors of the Company or any of its subsidiaries)and any suppliers,consultants,agents or advisers of the Group,to take up options to subscribe for shares of the Company.The maximum

224、 number of shares in respect of which options may be granted under the Scheme,when aggregated with any shares subject to any other schemes,shall not exceed 10%of the issued share capital of the Company on the Date of Adoption.On 15 December 2017,the Scheme was terminated and the new share option sch

225、eme(the“New Scheme”)was approved by the Shareholders of the Company at the annual general meeting to replace the Scheme.The New Scheme shall be valid and effective for a period of 10 years ending on 14 December 2027.The exercise price of the options under the New Scheme is determinable by the board

226、of directors,but will be at least the highest of:(i)The closing price of the shares on the Stock Exchange(as stated in the Stock Exchanges daily quotation sheets)on the offer date,which must be a business day;(ii)The average of the closing prices of the shares on the Stock Exchange(as stated in the

227、Stock Exchanges daily quotation sheets)for the 5 business days immediately preceding the offer date;and(iii)The nominal value of the Companys shares on the offer date.The maximum number of shares issuable under share options to each eligible participant in the New Scheme within any 12-month period i

228、s limited to 1%of the shares of the Company in issue at any time.Any further grant of share options in excess of this limit is subject to shareholders approval in a general meeting.For the six months ended 31 December 2019 China Financial International Investments Limited32Notes to the Consolidated

229、Financial Statements(Continued)19.SHARE-BASED PAYMENT TRANSACTIONS(Continued)Share options granted to a director,chief executive or substantial shareholder of the Company,or to any of their associates,are subject to approval in advance by the independent non-executive directors.In addition,any share

230、 options granted to a substantial shareholder or an independent non-executive director of the Company,or to any of their associates,in excess of 0.1%of the shares of the Company in issue at any time or with an aggregate value(based on the price of the Companys shares at the date of grant)in excess o

231、f HK$5,000,000,within any 12-month period,are subject to shareholders approval in advance in a general meeting.The offer of a grant of share options under the New Scheme may be accepted within 21 days from the date of offer,upon payment of a nominal consideration of HK$1 in total by the grantee.The

232、exercise period of the share options granted is determinable by the directors.Share options do not confer rights on the holders to dividends or to vote at shareholders meetings.The maximum number of the shares available for issue upon exercise of all share options which may be further granted under

233、the New Scheme is 1,097,163,403 shares,representing 10%of the total number of issued shares of the Company on 15 December 2017.No share options were granted under the New Scheme for both period/year.20.RELATED PARTY TRANSACTIONSDuring the period,the Group entered into the following transactions with

234、 related parties:UnauditedSix months ended 31 December20192018HK$000HK$000Investment management fee paid/payable to CFIIM(Note i)560798Legal advisory fees paid/payable to Michael Li&Co(Note ii)3089Notes:(i)An investment management agreement(the“Investment Management Agreement”)was entered into betwe

235、en the Company and CFIIM on 25 April 2014 to renew the appointment of CFIIM as the investment manager of the Company for a further period of three years effective from 29 April 2014 to 28 April 2017.Pursuant to the Investment Management Agreement,CFIIM is entitled to a management fee which is receiv

236、able monthly in arrears at the rate of 0.75%per annum of the aggregate market value of the portfolio managed by CFIIM on the last business day of each calendar month.The Investment Management Agreement expired on 28 April 2017 and a new investment management agreement(the“New Investment Management A

237、greement”)was entered into accordingly on 26 April 2017 to renew the appointment of CFIIM as the investment manager of the Company for a further period of three years effective from 29 April 2017 to 28 April 2020.Pursuant to the New Investment Management Agreement,CFIIM is entitled to a management f

238、ee which is receivable monthly in arrears at the rate of 0.75%per annum of the aggregate market value of the portfolio managed by CFIIM on the last business day of each calendar month.Investment management fees also constitute continuing connected transactions as defined in Chapter 14A of the Listin

239、g Rules.The disclosures required by Chapter 14A of the Listing Rules are disclosed in the report of directors in the annual report.(ii)Michael Li&Co is a company controlled by the company secretary of the Company,Mr.Li Chi Chung,and provided various legal advisory services to the Group.For the six m

240、onths ended 31 December 2019 Interim Report 201933Notes to the Consolidated Financial Statements(Continued)20.RELATED PARTY TRANSACTIONS(Continued)Compensation of key management personnelUnauditedSix months ended 31 December20192018HK$000HK$000Salaries,allowances and benefits in kind3,7623,127Pensio

241、n scheme contribution9921.FINANCIAL INSTRUMENTSFair value measurements of financial instrumentsA number of assets and liabilities included in these unaudited interim condensed consolidated financial statements require measurement at,and/or disclosure of,fair value.The fair value measurement of the G

242、roups financial and non-financial assets and liabilities utilised market observable inputs and data as far as possible.Inputs used in determining fair value measurements are categorised into different levels based on how observable the inputs used in the valuation technique utilised are(the“Fair Val

243、ue Hierarchy”):Level 1:Quoted prices in active markets for identical items(unadjusted);Level 2:Observable direct or indirect inputs other than Level 1 inputs;Level 3:Unobservable inputs(i.e.not derived from market data).The classification of an item into the above levels is based on the lowest level

244、 of the inputs used that has a significant effect on the fair value measurement of the item.Transfers of items between levels are recognised in the period they occur.The following tables illustrate the fair value measurement hierarchy of the Groups financial instruments:Fair value hierarchy at 31 De

245、cember 2019(unaudited)Level 1Level 2Level 3TotalHK$000HK$000HK$000HK$000 Listed equity securities38,77638,776 Unlisted investments22,92722,927Debt Instruments at FVTOCI:Unlisted bond investments161,019161,019Financial assets at FVTPL Listed equity securities154,189154,189 Unlisted equity investments

246、551,851551,851192,965735,797928,762For the six months ended 31 December 2019 China Financial International Investments Limited34Notes to the Consolidated Financial Statements(Continued)21.FINANCIAL INSTRUMENTS(Continued)Fair value measurements of financial instruments(Continued)Fair value hierarchy

247、at 30 June 2019(audited)Level 1Level 2Level 3TotalHK$000HK$000HK$000HK$000Equity Instruments at FVTOCI:Listed equity securities70,74070,740 Unlisted investments25,71825,718Debt Instruments at FVTOCI:Unlisted bond investments302,234302,234Financial assets at FVTPL Listed equity securities214,763214,7

248、63 Unlisted equity investments313,408313,408285,503641,360926,863Below is a summary of significant unobservable inputs to the valuation of financial instruments together with a quantitative sensitivity analysis as at 30 June 2019 and 2018:Valuation techniqueSignificant unobservable inputsRange/value

249、Sensitivity of fair value to the inputUnlisted security classified as equity instrument as FVTOCIMicro-loan serviceMarket comparable companiesPrice to book ratio(“PB ratio”)31 December 2019:0.2462 to 1.012730 June 2019:0.3247 to 0.9161The fair value is positively correlated to the PB ratio.Had the h

250、ighest PB ratio among the comparables been used as at 31 December 2019,the Groups OCI would have increased by HK$339,000(30 June 2019:HK$226,000).Had the lowest PB ratio among the comparables been used as at 31 December 2019,the Groups OCI would have decreased by HK$233,000(30 June 2019:HK$238,000).

251、Lack of marketability discount(“LOMD”)31 December 2019:31%30 June 2019:30%The fair value is negatively correlated to the LOMD.Had the LOMD decreased by 5%as at 31 December 2019,the Groups OCI would have increased by HK$30,000(30 June 2019:HK$37,000).Had the LOMD increased by 5%as at 31 December 2019

252、,the Groups OCI would have decreased by HK$30,000(30 June 2019:HK$37,000).For the six months ended 31 December 2019 Interim Report 201935Notes to the Consolidated Financial Statements(Continued)Valuation techniqueSignificant unobservable inputsRange/valueSensitivity of fair value to the inputOthersM

253、arket comparable companiesPB ratio31 December 2019:0.2462 to 1.012730 June 2019:0.3247 to 0.9161The fair value measurement is positively correlated to the PB ratios.Had the highest PB ratio among the comparables been used as at 31 December 2019,the Groups OCI would have increased by HK$18,312,000(30

254、 June 2019:HK$12,982,000).Had the lowest PB ratio among the comparables been used as at 30 June 2019,the Groups OCI would have decreased by HK$12,587,000(30 June 2019:HK$11,667,000).LOMD31 December 2019:31%30 June 2019:30%The fair value is negatively correlated to LOMD.Had the LOMD decreased by 5%as

255、 at 31 December 2019,the Groups OCI would have increased by HK$1,631,000(30 June 2019:HK$1,800,000).Had the LOMD increased by 5%as at 31 December 2019,the Groups OCI would have decreased by HK$1,631,000(30 June 2019:HK$1,800,000).Unlisted equity investments classified as financial assets at FVTPLMic

256、ro-loan serviceMarket comparable companiesPB ratio31 December 2019:0.2462 to 1.012730 June 2019:0.3247 to 0.9161The fair value is positively correlated to the PB ratios.Had the highest PB ratio among the comparables been used as at 31 December 2019,the Groups profit or loss would have increased by H

257、K$43,356,000(30 June 2019:HK$38,471,000).Had the lowest PB ratio among the comparables been used as at 31 December 2019,the Groups profit or loss would have decreased by HK$29,301,000(30 June 2019:HK$34,575,000).LOMD31 December 2019:31%30 June 2019:30%The fair value is negatively correlated to the L

258、OMD.Had the LOMD decreased by 5%as at 31 December 2019,the Groups profit or loss would have increased by HK$3,863,000(30 June 2019:HK$5,335,000).Had the LOMD increased by 5%as at 30 June 2019,the Groups profit or loss would have decreased by HK$3,863,000(30 June 2019:HK$5,335,000).21.FINANCIAL INSTR

259、UMENTS(Continued)Fair value measurements of financial instruments(Continued)For the six months ended 31 December 2019 China Financial International Investments Limited36Notes to the Consolidated Financial Statements(Continued)Valuation techniqueSignificant unobservable inputsRange/valueSensitivity o

260、f fair value to the inputUnlisted equity investments classified as financial assets at FVTPLOthersMarket comparable companiesRatio of enterprise value over earnings before interest,tax depreciation and amortization(“EV/EBITD ratio”)31 December 2019:5.86 to 13.0630 June 2019:1.10 to 11.60The fair val

261、ue is positively correlated to the EV/EBITDA ratios.Had the highest EV/EBITDA ratio amount the comparables been used as at 31 December 2019,the Groups profit or loss would have increased by HK$131,995,000(30 June 2019:HK$63,362,000).Had the lowest EV/EBITDA ratio among the comparables been used as a

262、t 30 December 2019,the Groups profit or loss would have decreased by HK$106,328,000(30 June 2019:HK$114,682,000)LOMD31 December 2019:30%30 June 2019:30%The fair value measurement is negatively correlated to the LOMD.Had the LOMD decreased by 5%as at 31 December 2019,the Groups profit or loss would h

263、ave increased by HK$22,936,000(30 June 2019:HK$13,395,000).Had the LOMD increased by 5%as at 31 December 2019,the Groups profit or loss would have decreased by HK$22,936,000(30 June 2019:HK$13,395,000).Unlisted bond investments classified as debt instruments at FVTOCI/financial assets at FVTPLHollys

264、Hull-White-One-Factor interest rate modelCredit spread31 December 2019:N/A30 June 2019:13.86%The fair value measurement is negatively correlated to the credit spread.Had the credit spread decreased by 5%as at 30 June 2019,the Groups profit or loss would have increased HK$2,491,000.Had the credit spr

265、ead increased by 5%as at 30 June 2019,the Groups profit or loss would have decreased by HK$2,352,00.Pure Unity&Talent TrendMonte Carlo simulationVolatility31 December 2019:33.95%30 June 2019:47.90%The fair value is negatively correlated to the volatility.Had the volatility decreased by 5%as at 31 De

266、cember 2019,the Groups profit or loss would have increased by HK$6,237,000(30 June 2019:HK$8,366,000).Had the volatility increased by 5%as at 31 December 2019,the Groups profit or loss would have decreased by HK$3,145,000(30 June 2019:HK$4,941,000).There were no transfers between Level 1 and 2 durin

267、g both period/year.21.FINANCIAL INSTRUMENTS(Continued)Fair value measurements of financial instruments(Continued)For the six months ended 31 December 2019 Interim Report 201937Notes to the Consolidated Financial Statements(Continued)21.FINANCIAL INSTRUMENTS(Continued)Fair value measurements of finan

268、cial instruments(Continued)Reconciliation of Level 3 fair value measurements31 December 2019(Unaudited)FinancialEquityDebtassetsinstrumentsInstrumentsat FVTPLat FVTOCIat FVTOCITotal(unlisted)securities)HK$000HK$000HK$000HK$000Opening balance313,40825,718302,234641,360Total losses:in profit or loss(2

269、7,681)(17,015)(44,696)in OCI(2,791)Purchases266,124266,124Disposals(124,200)(124,200)Closing balance551,85122,927161,019735,79730 June 2019(Audited)FinancialEquityDebtassetsinstrumentsinstrumentsat FVTPLat FVTOCIat FVTOCITotal(unlisted)securities)HK$000HK$000HK$000HK$000Opening balance266,69448,0064

270、58,568773,268Total losses:in profit or loss(128,589)(161,824)(290,413)in OCI(10,909)(156,334)(167,243)reclassified from OCI to profit or loss161,824161,824Purchases175,303175,303Disposals(11,379)(11,379)Closing balance313,40825,718302,234641,36022.APPROVAL OF CONSOLIDATED FINANCIAL STATEMENTSThe una

271、udited interim condensed consolidated financial statements were approved and authorised for issue by the board of directors on 28 February 2020.23.NET ASSET VALUE PER SHAREThe calculation of the net asset value per share is based on the net assets of the Group as at 31 December 2019 of HK$8.68 cents

272、(30 June 2019:HK$9.89 cents)and 10,971,634,030 ordinary shares in issue as at 31 December 2019(30 June 2019:10,971,634,030 ordinary shares).Management Discussion and AnalysisChina Financial International Investments Limited38BUSINESS REVIEWThe Group is principally engaged in the investments in the l

273、isted and unlisted companies established and/or doing business in Hong Kong and the Peoples Republic of China(the“PRC”or,“China”).The Group recorded a loss of HK$96,257,000 for the six months ended 31 December 2019(the“Period”),as compared to a profit of HK$15,895,000 for the same period last year.T

274、he loss was mainly attributable to the fair value loss of approximately HK$60,575,000 on listed investments at FVTPL and the fair value loss of approximately HK$29,630,000 on unlisted investments at FVTPL.LISTED INVESTMENT REVIEWDuring the Period,the Group recorded the total loss of HK$92,539,000 on

275、 listed securities business as compared to a loss of HK$90,330,000 for the same period last year.Dividend income of HK$946,000 from listed investments was recorded for the Period(31 December 2018:HK$3,068,000).As at 31 December 2019,the market value of the listed securities amounted to HK$192,965,00

276、0(30 June 2019:HK$285,503,000).All the listed securities were listed on The Stock Exchange of Hong Kong Limited(the“Stock Exchange”).Listed Securities PortfolioName of listed securitiesNature of businessNumber of shares heldGroups effective interestMarket value at 31 December 2019Dividend received/r

277、eceivable during the Period%to the Groups net assets as at 31 December 2019Investment costDisposal considerationRealized gain/(loss)HK$000HK$000HK$000HK$000HK$000Hidili Industry International Development LimitedCoal mining and manufacture and sale of clean coal12,369,0000.6%3,6490.38%China City Infr

278、astructure Group Limited (“China City Infrastructure”)Infrastructure businesses,property investment,property development,hotel business,property management and natural gas in the PRC698,079,42922.32%103,31610.85%Sino-Ocean Group Holding LimitedInvestment holding,property development and property inv

279、estment in the PRC8,055,0000.11%25,2122.65%China Communications Construction Co.Ltd.Infrastructure construction,infrastructure design,dredging and other businesses9,588,0000.22%60,7889466.38%192,965946 Interim Report 201939Management Discussion and Analysis(Continued)UNLISTED INVESTMENT REVIEWFor th

280、e Period,the total loss on the Groups unlisted investment portfolio recorded as HK$47,487,000(31 December 2018:HK$41,913,000).The loss was mainly attributable to the decrease in fair value of small loan companies and investments in fixed income financial assets.No dividend income was recorded for th

281、e six months ended 31 December 2018 and 2017,the interest income of HK$18,253,000 from the unlisted investments was recorded(31 December 2018:HK$25,533,000).The fair value of the Groups unlisted investments increased by 14.72%to HK$735,797,000(30 June 2019:HK$641,360,000).Unlisted Equity Investments

282、 InvestmentThe Companys unlisted equity investments are mainly concentrated on small loan companies and clean energy industry in the PRC.Since 2018,the Group focusing on clean energy industry and made several investments.Bioenergy is a carbon neutral and renewable energy source that reducing greenho

283、use gas emissions.Biofuels such as ethanol and biodiesel,are less toxic and are biodegradable.Using biomass can help build resilience in agricultural,timber and food-processing industries.Bioenergy provides a use for their waste streams,can help them reduce their energy costs.Meanwhile,small loan in

284、dustry in the PRC is still facing worries of the decreasing interest rate of private lending and the increase of operation risks,resulting in certain small loan companies continue to generate overdue loans and incur losses.In view of the slipping performance of the small loan industry,the company ha

285、s plan to exit the investments in small loan industry.In the foreseeable future,the company will continuously focus its investment on the bioenergy sector and gradually exit the past investment in the small loan industry which aim to maximize value of the shareholders of the company.Unlisted equity

286、investment portfolioName of companyNotesLocationGroups effective interestBusiness natureCostFair value at 31 December 2019%to the Groups net assets as at 31 December 2019HK$000HK$000Micro-loan service1Jingdezhen CFI Guosen Microfinance Co.,Ltd.(“Jingdezhen CFI Guosen”)(1)Jingdezhen,Jiangxi Province4

287、0%Provision of small loan and financial consultation services188,6904170.04%2Tianjin Rongshun Microfinance LimitedTianjin30%Provision of small loan and financial consultation services36,6062,6180.27%3TIIC RongShun Micro-Loan Company LimitedTianjin10%Provision of small loan and financial consultation

288、 services12,1893,4780.37%4Harbin Zhongjinguoxin Microfinance Co.,Ltd.(“Harbin Zhongjinguoxin”)(2)Harbin,Heilongjiang Province30%Provision of small loan and financial consultation services36,6935Tianjin Binlian Microfinance LimitedTianjin3.3%Provision of small loan and financial consultation services

289、12,2711,1030.12%6Ezhou Zhongjinguotou Microfinance Limited (“Ezhou Zhongjinguotou”)(3)Ezhou,Hubei Province50%Provision of small loan and financial consultation services185,00017,8241.87%China Financial International Investments Limited40Management Discussion and Analysis(Continued)Name of companyNot

290、esLocationGroups effective interestBusiness natureCostFair value at 31 December 2019%to the Groups net assets as at 31 December 2019HK$000HK$0007Ziyang Yanjiang CFI GuoSen Microfinance Co.,Ltd.Ziyang,Sichuan Province30%Provision of small loan and financial consultation services73,7301260.01%8Nanjing

291、 Jiangning MingYangRongTong Agricultural Microfinance Co.,Ltd.Nanjing,Jiangsu Province30%Provision of small loan and financial consultation service36,6738,7040.91%9Tianjin Rongyang Micro-Loan LimitedTianjin30%Provision of small loan and financial consultation services36,7416,2870.66%10Zhenjiang CFI

292、Guosen Technology Microfinance Corporation LimitedZhenjiang,Jiangsu Province30%Provision of small loan and financial consultation service56,87413,1601.38%Sub-total:675,46753,717Guarantee Service11Jiangxi Huazhang Hanchen Guarantee Group Limited(4)Nanchang,Jiangxi Province2.98%Provision of financing

293、guarantees to small and medium enterprises43,15022,5102.36%Investment and management consultation service12Shenzhen Zhongtoujinxin Asset Management Company LimitedShenzhen,Guangdong Province30%Provision of consultation services on project investments18,35013Xian Kairong Financial Service LimitedXian

294、,Shaanxi Province30%Provision of financial management services18,7245,4860.58%14Hubei Zhongjin Tech Financial Services Co.,Ltd.Wuhan,Hubei Province30%Provision of financial management services19,0303,6890.39%Sub-total:56,1049,175UNLISTED INVESTMENT REVIEW(Continued)Unlisted Equity Investments Invest

295、ment(Continued)Unlisted equity investment portfolio(Continued)Interim Report 201941Management Discussion and Analysis(Continued)Name of companyNotesLocationGroups effective interestBusiness natureCostFair value at 31 December 2019%to the Groups net assets as at 31 December 2019HK$000HK$000Clean ener

296、gy15Henan Tianguan Energy and Biotechnology Company Limited (“Henan Tianguan”)(5)Henan Province30%Production and sales of denatured fuel ethanol,sales of acetone,butanol,polyols,production and sales of biodegradable plastics and biodiesel,sales of chemical products,wheat bran flour,feed sales,acetic

297、 acid and acetaldehyde production230,763170,96817.95%16Hunan South China New Energy Limited (“South China New Energy”)(6)Hunan Province30%New energy technologies development,transfer and consultation,research and development,manufacturing and sales of chemical products,chemical reagents and auxiliar

298、ies(excluding hazardous chemicals and precursor chemicals)51,20050,3365.28%17Mengzhou Houyuan Biotechnology Company Limited(“Mengzhou Houyuan”)(7)Henan Province30%R&D of biotechnology,chemical raw materials and products,production and sales of distillers dried grains with soluble,anhydrous ethanol,c

299、arbon dioxide,ethanol solution and aerated concrete blocks148,118150,06515.75%18Henan Keyi Huirui Bioenergy Technology Company Limited (“Keyi Huirui”)(8)Henan Province30%Technology development,technical consulting,and technical services in the field of bioenergy and biochemical technology;sales of b

300、ioenergy and biochemical equipment;sales of instruments and meters,electromechanical equipment,mechanical equipment,environmental protection equipment and electrical equipment;import and export of goods and technology117,450117,45012.33%19Tianguan New Energy Limited (“Tianguan New Energy”)(9)Guangdo

301、ng Province5%Transportation,R&D of fuel ethanol and oil products,and import of raw materials;trading and information services of ethanol and additional products;research,development and technical services of fuel ethanol and denatured fuel products;investment and operation of fuel ethanol related pr

302、ojects;sales,production and storage of fuel ethanol,industrial ethanol,edible alcohol,feed,refined and semi-refined corn oil,bio-organic fertilizers,ethyl acetate and by-products5575570.06%548,088489,376Total:1,322,809574,778UNLISTED INVESTMENT REVIEW(Continued)Unlisted Equity Investments Investment

303、(Continued)Unlisted equity investment portfolio(Continued)China Financial International Investments Limited42Management Discussion and Analysis(Continued)UNLISTED INVESTMENT REVIEW(Continued)Unlisted Equity Investments Investment(Continued)Unlisted equity investment portfolio(Continued)Notes:(1)On 1

304、 June 2016,the Groups equity interests in Jingdezhen CFI Guosen changed from 30%to 40%due to previous shareholders of Jingdezhen CFI Guosen withdrew their capital commitment in the sum of RMB125,000,000 in Jingdezhen CFI Guosen and the registered capital of Jingdezhen CFI Guosen was reduced from RMB

305、500,000,000 to RMB375,000,000.Due to the reduction in the registered capital,the shareholding of the Company in Jingdezhen CFI Guosen inevitably and automatically increased from 30%to 40%.In order to comply with Rule 21.04(3)(a)of the Rules Governing the Listing of Securities on the Stock Exchange(t

306、he“Listing Rules”),the Company voluntarily relinquished the voting rights beyond 30%.Given that the reduction in the registered capital of Jingdezhen CFI Guosen is beyond the control of the Company,the Company is in the passive role in respect of its increase in the shareholdings in Jingdezhen CFI G

307、uosen.The relinquishment of the voting rights is an interim arrangement and the Company still possesses other rights such as the rights to receive dividends.The Directors consider that the relinquishment of the voting rights arrangement is in the interest of the Company and its shareholders as a who

308、le.The Company is now actively seeking potential buyers to dispose of the additional non-voting shareholdings in Jingdezhen CFI Guosen or to restore the shareholdings in Jingdezhen CFI Guosen to 30%.(2)On 22 December 2016,the Company entered into a disposal agreement to dispose of all of its equity

309、interest in Harbin Zhongjinguoxin to an independent third party for a cash consideration of RMB25,000,000.A deposit of HK$2,500,000 has been received which was included in receipt in advance under current liabilities as at 30 June 2019 and 2018.As at the date of this announcement,this disposal trans

310、action has not been completed.The Directors expect this disposal transaction will be completed within one year.(3)On 18 December 2016,the shareholders resolution of Ezhou Zhongjinguotou approved some existing shareholders of Ezhou Zhongjinguotou to withdraw their capital commitment in the sum of RMB

311、200,000,000 in Ezhou Zhongjinguotou so that the registered capital of Ezhou Zhongjinguotou will be reduced from RMB500,000,000 to RMB300,000,000.Due to the reduction in the registered capital,the shareholding of the Company in Ezhou Zhongjinguotou will inevitably increase from 30%to 50%.In order to

312、comply with Rule 21.04(3)(a)of the Listing Rules,the Company shall voluntarily relinquished the voting rights beyond 30%.Given that the reduction in the registered capital of Ezhou Zhongjinguotou is beyond the control of the Company,the Company is in the passive role in respect of its increase in th

313、e shareholdings in Ezhou Zhongjinguotou.The relinquishment of the voting rights is an interim arrangement and the Company still possesses other rights such as the rights to receive dividends.The Directors consider that the relinquishment of the voting rights arrangement is in the interest of the Com

314、pany and its shareholders as a whole.The Company is now actively seeking potential buyers to dispose of the additional non-voting shareholdings in Ezhou Zhongjinguotou or to restore the shareholdings in Ezhou Zhongjinguotou to 30%.Interim Report 201943Management Discussion and Analysis(Continued)UNL

315、ISTED INVESTMENT REVIEW(Continued)Unlisted Equity Investments Investment(Continued)Unlisted equity investment portfolio(Continued)(4)On 13 April 2011,the Group acquired a 30%equity interest of Jiangxi Huazhang,a joint venture establish in the PRC.The Groups equity interest in Jiangxi Huazhang became

316、 7.2%on 15 July 2013 and reduce to 2.98%on 19 August 2016,as Jiangxi Huazhang was enlarged by the new registered capital subscribed by its other shareholders on these dates.(5)On 11 May 2018,the Company entered into the joint venture agreement with the joint venture partners in relation to the forma

317、tion of the Henan Tianguan in Henan province,the PRC.Pursuant to the joint venture agreement,the Company owned 30%of the registered capital of the Henan Tianguan.On 31 July 2018,Henan Tianguan increased the registered capital from RMB300,000,000 to RMB660,000,000 hence Keyi(Shanghai)Investments Limi

318、ted(“Keyi”)and Joy State Holdings Limited,wholly-owned subsidiaries of the Company,further injected RMB30,000,000 and RMB78,000,000 respectively.(6)In January 2019,Keyi entered into an agreement with South China New Energy to inject capital contribution of RMB45,000,000 into South China New Energy f

319、or acquiring 30%of South China New Energys equity interest.On 23 January 2019,the legal title of 30%equity interest in South China New Energy has been successfully transferred to Keyi.(7)On 17 October 2019,the Group entered into an agreement with Hollys(China)Limited(“Hollys”)to get the repayment of

320、 outstanding principle and interests of the bond issued by Hollys in return the 30%equity interest of Mengzhou Houyuan.(8)In August 2019,Keyi(Shanghai)entered into an agreement with 3 partners in relation to the formation of Keyi Huirui.The registered capital of Keyi Huirui is RMB350,000,000.Keyi(Sh

321、anghai)injected RMB105,000,000 for acquiring 30%of Keyi Huiruis equity interest.Keyi Huirui is engaged in Biotechnology energy technology development,transfer and consultation,and the research and development,manufacturing and sales of biotechnology energy and chemical equipment.On 5 September 2019,

322、Keyi Huirui was officially set up.(9)In October 2019,the Group invested in a 5%equity interest of Tianguan New Energy,a joint venture established in the PRC.Tianguan New Energy is principally engaged in ethanol products transportation,development trading and consultation service in Huizhou,Guangdong

323、 Province,the PRC.China Financial International Investments Limited44Management Discussion and Analysis(Continued)UNLISTED INVESTMENT REVIEW(Continued)Unlisted Bond InvestmentsThe Group invested three bonds for the purpose of engaging in the medium term investments and earning the stable return.The

324、details of the bond investments are as follows:Unlisted bond portfolioName of companyNotesBusiness natureCostFair value at 31 December 2019%to the Groups net assets as at 31 December 2019HK$000HK$000Pure Unity Investments Limited (“Pure Unity”)(1)Investment holding190,00077,2388.11%Talent Trend Glob

325、al Limited (“Talent Trend”)(2)Investment holding160,00064,9476.82%Xing Yue Investments Limited (“Xing Yue”)(3)Investment holding20,00018,8341.98%370,000161,019Notes:(1)The Company through its direct wholly-owned subsidiary,China Financial International Investments(Nanchang)Limited,entered into a sub

326、scription agreement dated 21 November 2016 as subscriber with Pure Unity as issuer and Mr.Zhu Mingliang as guarantor,in relation to the subscription of the 9%secured three-year bond with the principal amount of HK$200,000,000.As at 31 December 2019,Mr.Feng Xin is the sole shareholder and the sole di

327、rector of Pure Unity.Pure Unity has redeemed HK$10,000,000 during the year ended 30 June 2017.The bond is secured by 760,000,000 shares of the Company held by Pure Unity as irrevocable guarantee.The bond was already overdue since 21 November 2019 and the management is under negotiation with Pure Uni

328、ty for settlement of the bond.Up to the date when the interim result announcement for the period ended 31 December 2019 were authorised for issue,no renewed subscription agreement of the bond was entered into nor the outstanding balances have been settled.(2)The Company through its direct wholly-own

329、ed subsidiary,China Financial International Investments(Henan)Limited as subscriber,entered into a subscription agreement dated 21 November 2016 as subscriber with Talent Trend as issuer and Mr.Huang Xianli as guarantor,in relation to the subscription of the 9%secured three-year bond with the princi

330、pal amount of HK$160,000,000.As at 31 December 2019,Mr.Feng Xu is the sole shareholder and the sole director of Talent Trend.The bond is secured by unlisted equity interests and by 640,000,000 shares of the Company held by Talent Trend as irrevocable guarantee.The bond was already overdue since 21 N

331、ovember 2019 and management is under negotiation with Talent Trend since Talent Trend is seeking for postponement of repayment and/or renewal of the bond.Up to the date when the interim result announcement for the period ended 31 December 2019 were authorised for issue,no renewed subscription agreem

332、ent of the bond was entered into nor the outstanding balances have been settled.Interim Report 201945Management Discussion and Analysis(Continued)UNLISTED INVESTMENT REVIEW(Continued)Unlisted Bond Investments(Continued)Unlisted bond portfolio(Continued)(3)The Company entered into a subscription agre

333、ement dated 8 March 2018 as subscriber with Xing Yue as issuer and Ms.Dong Lili as guarantor,in relation to the subscription of the 9%secured three months bond with the principal amount of HK$20,000,000.Ms.Dong Lili is the sole shareholder and the sole director of Xing Yue.The bond is secured by unlisted equity interests and by 200,000,000 shares of the Company which 100,000,000 held by Xing Yue a