未来发展控股(01259) - 2024 - 中期财报

Company Information This section provides essential company details, including board members, committee composition, company secretary, auditor, principal bankers, and registered office Company Overview This section provides essential company details, including board members, committee composition, company secretary, auditor, principal bankers, and registered office - Key management includes Executive Directors Mr. Lau Ka Ho (Chief Executive Officer) and Mr. Chan Hoi Tik (Chief Financial Officer); the auditor is Zhongzheng Tianheng Certified Public Accountants Limited[3] Management Discussion and Analysis This section provides an overview of the Group's operational performance, financial position, and future strategies Business Review During the reporting period, the Group's continuing operations included catering services, financial business, and property holding; catering revenue remained stable, financial business revenue grew significantly by 31.5%, but property holding turned from profit to loss due to asset impairment; the Group also disposed of its temperature-controlled warehousing business last year, classifying it as a discontinued operation Continuing Operations Catering services maintained stable revenue of approximately HKD 204 million amidst intense market competition; financial business benefited from strong demand for professional services, with total revenue increasing to HKD 47.6 million and narrowed losses; property holding recorded a loss of HKD 17.9 million due to impairment losses on properties under development and investment properties, compared to a profit in the prior year Performance by Business Segment | Business Segment | Performance in Reporting Period | Compared to Prior Period | | :--- | :--- | :--- | | Catering Services | Revenue approx. HKD 203.8 million, segment profit approx. HKD 4 million | Revenue stable, profit decreased due to increased procurement costs | | Financial Business | Revenue approx. HKD 47.6 million, segment loss approx. HKD 10.5 million | Revenue increased by 31.5%, loss narrowed | | Property Holding | Revenue approx. HKD 0.6 million, segment loss approx. HKD 17.9 million | Revenue increased, but turned from profit to loss due to property impairment loss | Discontinued Operations The Group disposed of its subsidiary engaged in temperature-controlled warehousing and related services (Greater China Cold Chain Logistics) in 2023 and no longer engages in this business; this segment recorded revenue of approximately HKD 1.9 million and a loss of approximately HKD 0.5 million in the prior period - The Group has divested its temperature-controlled warehousing business, which contributed HKD 1.9 million in revenue and a loss of HKD 0.5 million in the prior period (for the six months ended June 30, 2023)[7] Financial Review During the reporting period, the Group's total revenue increased by 4.5% year-on-year to HKD 252 million, and gross profit increased by 18.6% to HKD 64.5 million, primarily driven by the financial business; however, loss attributable to equity holders expanded to HKD 29.5 million, compared to a loss of HKD 20.4 million in the prior period, due to increased selling and administrative expenses and expanded other expenses including property impairment; the Group's financial position remained solid with a current ratio of 3.6 Key Financial Indicators | Indicator | Reporting Period (as of 2024/06/30) | Prior Period (as of 2023/06/30) | Change | | :--- | :--- | :--- | :--- | | Revenue | HKD 252.0 million | HKD 241.2 million | +4.5% | | Gross Profit | HKD 64.5 million | HKD 54.4 million | +18.6% | | Gross Profit Margin | 25.6% | 22.6% | +3.0pp | | Loss Attributable to Equity Holders | HKD 29.5 million | HKD 20.4 million | Loss widened | | Basic Loss Per Share | HKD 1.32 cents | HKD 0.90 cents | Loss widened | - Selling and distribution expenses increased by 16.7% year-on-year, and administrative expenses increased by 29.4% year-on-year, primarily due to increased advertising and staff costs in the financial professional services business[9] Liquidity and Gearing Ratios (as of 2024/06/30) | Indicator | Value | | :--- | :--- | | Cash and Bank Balances | HKD 328.2 million | | Current Ratio | 3.6 | | Gearing Ratio | 20.2% | Future Outlook The Group anticipates continued macroeconomic challenges, a subdued local catering market, and a challenging stock market, thus adopting a cautious approach to catering and securities investments; despite this, the Group remains confident in the long-term prospects of Hong Kong's financial services industry and will actively expand its related business portfolio, particularly credit card business, while also advancing the redevelopment plan for its Yuen Long land property - Catering Business: The market is expected to be subdued in the second half, with procurement prices remaining high, but the Group on long-term development remains confident[16] - Financial Business: The stock market is expected to be challenging, leading to a cautious approach to securities investments, but the Group is optimistic about Hong Kong's financial services sector and will leverage asset-backed credit card market opportunities[16][17] - Property Development: The application for redevelopment of the Yuen Long land has been conditionally approved by the government, and the Group is currently communicating with relevant departments to finalize construction plans[17] Employees, Remuneration, and Dividends As of June 30, 2024, the Group employed 131 staff, a slight increase from the end of 2023; the company operates MPF schemes, UK pension schemes, and share option schemes to incentivize employees; the Board resolved not to declare any interim dividend for the six months ended June 30, 2024 - As of June 30, 2024, the Group's employee count was 131, an increase from 126 as of December 31, 2023[18] - The Board decided not to declare an interim dividend for the current period, consistent with the policy in the prior period[20] Unaudited Condensed Consolidated Interim Financial Statements This section presents the Group's unaudited condensed consolidated interim financial statements, including statements of profit or loss, financial position, changes in equity, and cash flows Condensed Consolidated Statement of Profit or Loss and Other Comprehensive Income For the six months ended June 30, 2024, the Group recorded revenue of HKD 252 million, a 4.5% year-on-year increase; however, due to increased expenses, loss for the period from continuing operations expanded to HKD 32.85 million; after accounting for fair value changes in financial assets, total comprehensive expense for the period was HKD 22.04 million, compared to total comprehensive income of HKD 4.18 million in the prior period Profit or Loss Statement Summary (HKD thousand) | Item | Six Months Ended June 30, 2024 | Six Months Ended June 30, 2023 | | :--- | :--- | :--- | | Revenue | 251,982 | 241,174 | | Gross Profit | 64,546 | 54,432 | | Loss Before Tax | (31,268) | (9,067) | | Loss for the Period from Continuing Operations | (32,854) | (13,143) | | Loss Attributable to Equity Holders of the Company | (29,512) | (20,411) | | Total Comprehensive (Expense)/Income for the Period | (22,036) | 4,176 | Condensed Consolidated Statement of Financial Position As of June 30, 2024, the Group's total assets were HKD 761 million, total liabilities were HKD 153 million, and net assets were HKD 608 million; compared to the end of 2023, both total assets and net assets decreased, primarily reflecting the operating loss for the period; the Group maintained strong liquidity with cash and bank balances of HKD 328 million Statement of Financial Position Summary (HKD thousand) | Item | As of June 30, 2024 | As of December 31, 2023 | | :--- | :--- | :--- | | Non-current Assets | 225,804 | 236,579 | | Current Assets | 535,635 | 574,213 | | Total Assets | 761,439 | 810,792 | | Current Liabilities | 149,518 | 170,731 | | Non-current Liabilities | 3,971 | 6,378 | | Total Liabilities | 153,489 | 177,109 | | Net Assets | 607,950 | 633,683 | Condensed Consolidated Statement of Changes in Equity During the reporting period, the Group's total equity decreased from HKD 634 million at the beginning of the year to HKD 608 million at the end of the period; the decrease in equity was primarily due to a loss for the period of HKD 32.85 million and expenditure on acquisition of treasury shares of HKD 3.7 million, partially offset by other comprehensive income of HKD 10.82 million from fair value changes in financial assets Summary of Changes in Equity (HKD thousand) | Item | Amount | | :--- | :--- | | Total Equity as of January 1, 2024 | 633,683 | | Loss for the Period | (32,854) | | Other Comprehensive Income | 10,818 | | Acquisition of Treasury Shares | (3,697) | | Total Equity as of June 30, 2024 | 607,950 | Condensed Consolidated Statement of Cash Flows During the reporting period, the Group's cash and cash equivalents decreased by HKD 30.07 million; net cash outflow from operating activities was HKD 15.02 million, compared to a net inflow in the prior period; net cash outflow from financing activities was HKD 14.96 million, primarily for repayment of bank borrowings and purchase of treasury shares; cash and cash equivalents balance at period-end was HKD 328 million Cash Flow Statement Summary (HKD thousand) | Item | Six Months Ended June 30, 2024 | Six Months Ended June 30, 2023 | | :--- | :--- | :--- | | Net Cash from Operating Activities | (15,018) | 67,333 | | Net Cash from Investing Activities | (92) | 2,472 | | Net Cash from Financing Activities | (14,955) | (13,970) | | Net (Decrease)/Increase in Cash and Cash Equivalents | (30,065) | 55,835 | | Cash and Cash Equivalents at End of Period | 328,245 | 362,723 | Notes to the Condensed Consolidated Interim Financial Statements The notes to the financial statements detail accounting policies, segment information, revenue composition, and specifics of various assets and liabilities; segment information (Note 3) shows narrowed losses in financial business but a turn from profit to loss in property holding; property impairment (Note 13) was a significant contributor to the loss, with HKD 9 million impairment loss on properties under development and HKD 8.4 million fair value change loss on investment properties recognized during the period; changes in share capital (Note 22) reflect share repurchase and cancellation activities during the period Segment Results Summary (HKD thousand) | Segment | Revenue | Profit/(Loss) | | :--- | :--- | :--- | | Catering | 203,800 | 4,019 | | Financial Business | 47,598 | (10,463) | | Property Holding | 584 | (17,852) | - During the reporting period, the Group recognized an impairment loss of HKD 9 million on properties under development and a fair value change loss of HKD 8.4 million on investment properties[57] - For the six months ended June 30, 2024, the company repurchased and cancelled 70,762,000 ordinary shares[74] Interim Report Supplementary Information This section provides additional disclosures regarding the share option scheme, directors' and major shareholders' interests, and corporate governance practices Share Option Scheme, Directors' and Major Shareholders' Interests As of June 30, 2024, the company had 46,400,000 outstanding share options with no changes during the reporting period; Director Mr. Chan Hoi Tik held 18,000,000 share options; major shareholder Golden Sparkle Limited (controlled by Mr. Lai Wai Lam) held 25.07% of the company's shares - As of the period-end, there were 46,400,000 outstanding share options, with no changes during the reporting period[103] Major Shareholder Holdings | Major Shareholder Name | Nature of Interest | Number of Shares Held | Percentage of Issued Share Capital | | :--- | :--- | :--- | :--- | | Golden Sparkle Limited | Beneficial Owner | 552,489,500 | 25.07% | | Mr. Lai Wai Lam | Interest in Controlled Corporation | 552,489,500 | 25.07% | Corporate Governance and Other Disclosures During the reporting period, the company complied with most provisions of the Corporate Governance Code but deviated from the requirement for separate roles of Chairman and Chief Executive Officer due to the absence of a Board Chairman; additionally, the company repurchased a total of 59,762,000 shares for approximately HKD 3.7 million during the period; the Audit Committee reviewed these interim results - The company deviated from the Corporate Governance Code's provision regarding the separation of Chairman and Chief Executive Officer roles due to the non-appointment of a Board Chairman[111] Share Repurchase Details | Month | Number of Shares Repurchased | Total Consideration (HKD) | | :--- | :--- | :--- | | January 2024 | 32,829,000 | 1,561,089 | | April 2024 | 5,030,000 | 383,070 | | May 2024 | 14,903,000 | 1,185,276 | | June 2024 | 7,000,000 | 567,665 | | Total | 59,762,000 | 3,697,100 |