Revenue and Profitability - Revenue for the six months ended June 30, 2024, increased by 42.9% to HKD 29.4 million compared to HKD 20.6 million in the same period last year[1] - Revenue for the six months ended June 30, 2024, was HKD 29.363 million, compared to HKD 20.551 million in the same period in 2023[24] - Total group revenue increased to HKD 29,363 thousand from HKD 20,551 thousand, a growth of 42.9%[31][32] - Revenue from external customers in Mainland China and Hong Kong increased from HKD 20,551 thousand in 2023 to HKD 29,363 thousand in 2024, driven by growth in property sales and restaurant operations[34] - Property sales revenue in China surged from HKD 6,300 thousand in 2023 to HKD 12,100 thousand in 2024, reflecting strong demand in the region[35] - Net loss attributable to the company's owners increased by 41.2% to HKD 23.8 million for the six months ended June 30, 2024, compared to HKD 16.8 million in the same period last year[1] - Gross profit decreased to HKD 4.1 million with a gross margin of 13.9% for the six months ended June 30, 2024, compared to HKD 6.7 million and a gross margin of 32.7% in the same period last year[10] - Gross profit for the six months ended June 30, 2024, was HKD 4.081 million, down from HKD 6.729 million in the same period in 2023[24] - The company reported a loss before tax of HKD 25.614 million for the six months ended June 30, 2024, compared to a loss of HKD 18.070 million in the same period in 2023[24] - Total comprehensive loss for the six months ended June 30, 2024, was HKD 38.875 million, compared to HKD 37.740 million in the same period in 2023[25] - The company recorded a loss attributable to owners of approximately HKD 23,800,000, compared to HKD 16,800,000 in the same period last year, mainly due to increased administrative expenses[14] - The company reported a loss attributable to ordinary shareholders of 23,778 thousand HKD for the six months ended June 30, 2024, compared to 16,834 thousand HKD in the same period in 2023[42] - Total group loss narrowed to HKD 26,707 thousand from HKD 18,155 thousand[31][32] Business Segment Performance - Property business generated revenue of HKD 12.1 million, primarily from the sale of remaining units in Zhidi Xincheng and Zhongjian Jun Mansion[2] - Property business segment revenue decreased to HKD 12,114 thousand from HKD 6,258 thousand, a decline of 93.5%[31][32] - Property business segment loss widened to HKD 27,327 thousand from HKD 14,141 thousand[31][32] - Financial business recorded interest income of HKD 2.9 million for the six months ended June 30, 2024[3] - Financial business segment revenue remained stable at HKD 2,912 thousand compared to HKD 2,903 thousand[31][32] - Financial business segment loss increased to HKD 1,150 thousand from a profit of HKD 2,862 thousand[31][32] - The financial business segment generated approximately HKD 2,400,000 from a single customer, accounting for over 8% of the group's total revenue, consistent with the previous year[34] - Catering business recorded revenue of HKD 14.3 million for the six months ended June 30, 2024[5] - Food and beverage segment revenue increased to HKD 14,337 thousand from HKD 11,390 thousand, a growth of 25.9%[31][32] - Food and beverage segment loss increased to HKD 6,365 thousand from HKD 5,066 thousand[31][32] - Automotive business segment reported no revenue in both periods[31][32] Costs and Expenses - Cost of revenue increased by 82.9% to HKD 25.3 million for the six months ended June 30, 2024, compared to HKD 13.8 million in the same period last year[9] - The group reported a pre-tax loss, with cost of sales rising from HKD 13,822 thousand in 2023 to HKD 25,282 thousand in 2024, and depreciation costs increasing from HKD 2,792 thousand to HKD 5,418 thousand[38] - Depreciation expense increased to HKD 5,418 thousand from HKD 2,792 thousand[31][32] - Sales and distribution expenses decreased by 19.9% from HKD 6,400,000 to HKD 5,200,000, mainly due to a reduction in advertising[12] - Administrative expenses increased from HKD 17,000,000 to HKD 23,000,000, driven by higher employee salaries and depreciation[13] - Financing costs increased to 819 thousand HKD for the six months ended June 30, 2024, up from 626 thousand HKD in the same period in 2023[40] Financial Position - Net current assets stood at HKD 364,900,000 as of June 30, 2024, with cash and cash equivalents at HKD 39,800,000[15] - The company's current ratio decreased from 449.82% to 368.76% as of June 30, 2024[15] - Total assets as of June 30, 2024, were HKD 707.732 million, down from HKD 730.193 million as of December 31, 2023[26] - Total equity attributable to the company's owners as of June 30, 2024, was HKD 579.386 million, compared to HKD 615.332 million as of December 31, 2023[27] - Total liabilities as of June 30, 2024, were HKD 138.017 million, up from HKD 121.603 million as of December 31, 2023[27] - Total assets of the group decreased from HKD 730,193 thousand in 2023 to HKD 707,732 thousand in 2024, with a significant reduction in non-current assets in Hong Kong from HKD 20,760 thousand to HKD 15,379 thousand[33][34] - The company's property, plant, and equipment had a total carrying amount of 15,379 thousand HKD as of June 30, 2024, down from 20,760 thousand HKD as of December 31, 2023[44] - Loans and interest receivables increased to 90,528 thousand HKD as of June 30, 2024, from 86,116 thousand HKD as of December 31, 2023[45] - Inventory increased to 52,323 thousand HKD as of June 30, 2024, from 46,706 thousand HKD as of December 31, 2023, primarily due to higher automotive inventory[46] - Accounts receivable decreased to 584 thousand HKD as of June 30, 2024, from 996 thousand HKD as of December 31, 2023, with a higher proportion of overdue receivables (51% over 90 days)[47] - Cash and cash equivalents increased to HKD 39,910 thousand as of June 30, 2024, compared to HKD 39,714 thousand as of December 31, 2023[48] - RMB-denominated cash and cash equivalents surged to HKD 10,253 thousand as of June 30, 2024, up from HKD 1,341 thousand as of December 31, 2023[48] - Bank overdrafts utilized increased significantly to HKD 9,928 thousand as of June 30, 2024, compared to HKD 2,949 thousand as of December 31, 2023[49] - Accounts payable aged over 90 days decreased to 71.2% as of June 30, 2024, from 96.4% as of December 31, 2023[51] - Contract liabilities increased to HKD 19,770 thousand as of June 30, 2024, up from HKD 7,539 thousand as of December 31, 2023[52] Other Income and Expenses - Other income increased from HKD 600,000 to HKD 1,300,000, primarily due to bank interest income[11] - Other income and gains increased significantly from HKD 644 thousand in 2023 to HKD 1,271 thousand in 2024, primarily due to higher interest income and bad debt provision reversals[37] - Interest income from related parties decreased to HKD 1 thousand for the six months ended June 30, 2024, compared to HKD 2,903 thousand for the same period in 2023[57] Taxation - No provision for Hong Kong profits tax was made as the group did not generate taxable profits in Hong Kong during the six months ended June 30, 2024[39] - Total taxes in Mainland China for the six months ended June 30, 2024, amounted to 1,093 thousand HKD, compared to 85 thousand HKD in the same period in 2023[40] Shareholder and Corporate Governance - The company's total number of employees increased from 71 to 85 as of June 30, 2024[19] - The company granted 45,000,000 share options under the 2021 plan, exercisable at HKD 0.152 per share[19] - The company did not recommend an interim dividend for the period ending June 30, 2024[20] - The company's foreign currency risk is not significant as its operations are primarily in Hong Kong and denominated in HKD[21] - The net proceeds from the rights issue amounted to approximately HKD 48.3 million, allocated for general working capital, investments in food and beverage-related businesses, live streaming business, and expansion of financial services[23] - As of June 30, 2024, HKD 18.715 million of the net proceeds from the rights issue has been utilized, with HKD 29.585 million remaining unused[23] - The company has no significant contingent liabilities as of June 30, 2024[54] - No assets were pledged as collateral as of June 30, 2024[55] - The company has no significant commitments as of June 30, 2024[56] - The interim report was approved by the board of directors on August 30, 2024[59] - The company has not entered into any arrangements allowing directors or senior executives to benefit from purchasing shares or related securities during the six months ending June 30, 2024[63] - As of June 30, 2024, Shen Shuiping, a major shareholder, holds 48,560,000 shares, representing approximately 5.01% of the total issued shares[64] - Under the 2021 Share Option Plan, 45,000,000 share options were granted during the period, with 45,000,000 options remaining unexercised as of June 30, 2024[65] - If all unexercised share options under the 2021 Plan are exercised, the company will issue an additional 45,000,000 ordinary shares, increasing share capital by HKD 1,800,000 and share premium account by HKD 5,040,000[66] - The company did not purchase, sell, or redeem any of its listed securities during the reporting period[67] - The company has maintained compliance with the Corporate Governance Code, except for minor deviations, during the six months ending June 30, 2024[68] - The roles of Chairman and CEO are separated, and the company is currently seeking a suitable candidate for the CEO position[69] - The company has adopted a code of conduct for directors' securities transactions, which is not less stringent than the standard code, and all directors have confirmed compliance as of June 30, 2024[70] - The audit committee has reviewed the group's interim report, including the unaudited condensed consolidated financial statements for the six months ended June 30, 2024[71] - No changes to the company's directors have occurred during the six months ended June 30, 2024, and no other information required to be disclosed under Listing Rule 13.51B(1) has been identified[72] - The unaudited interim results announcement for the six months ended June 30, 2024, has been published on the company's website and the Hong Kong Stock Exchange website, with the 2024 interim report to be dispatched to shareholders by September 30, 2024[72] - The executive directors as of the announcement date are Mr. Wang Zuwei, Ms. Wong Sze Yu, and Ms. Lam Ka Lee, while the independent non-executive directors are Ms. Chan Sheung Yu, Ms. Wu Wai Shan, and Mr. Leung Ka Chun[73] Future Outlook - The company expects improvement in property sales due to increased government support for the real estate sector in China[6] - The company anticipates stable or slightly improved performance in financial, automotive, and catering businesses due to expected lower interest rates and slight growth in consumer demand[7] - The company will continue to expand its business based on market demand and available funds[7]
GBA集团(00261) - 2024 - 中期业绩