Revenue and Profit Performance - Revenue for the six months ended December 31, 2023, was HKD 38,307 thousand, compared to HKD 39,606 thousand in the same period in 2022[5] - Total revenue for the six months ended December 31, 2023, was HKD 38,307,000, a 3% decrease compared to HKD 39,606,000 in the same period last year[81] - Gross profit for the period was HKD 24,914 thousand, down from HKD 26,934 thousand in 2022[5] - Gross profit for the period was HKD 24,914,000, down 7% from HKD 26,934,000 in the previous year, with a gross margin of 65% compared to 68% last year[81] - Profit before tax for the six months ended December 31, 2023, was HKD 12,615,624 thousand, a significant increase from HKD 312 thousand in 2022[5] - Net profit for the period was HKD 5,365,934 thousand, compared to HKD 1,733 thousand in 2022[5] - The company recorded a profit before tax of HKD 12,615,624 thousand, with a significant contribution from joint venture profit sharing of HKD 12,635,773 thousand[19] - The group's profit attributable to shareholders was HKD 5,365,693,000, with basic earnings per share of HKD 22.57, compared to HKD 1,476,000 and HKD 0.62 in 2022[61] - The company's total comprehensive income for the period was HKD 5,437,572 thousand, with a profit attributable to owners of the company of HKD 5,365,693 thousand[14] - The company's total comprehensive income attributable to shareholders was HKD 5,436,647,000, compared to a total comprehensive loss of HKD 88,954,000 last year[83] - Basic earnings per share for the period were HKD 2,257.30[14] - The weighted average number of ordinary shares used to calculate basic earnings per share was 237,703,681[30] Asset and Equity Changes - Total assets as of December 31, 2023, were HKD 15,024,355 thousand, up from HKD 2,273,480 thousand as of June 30, 2023[10] - Development properties increased to HKD 12,855,598 thousand as of December 31, 2023, from HKD 0 as of June 30, 2023[9] - Investment properties increased slightly to HKD 1,860,753 thousand as of December 31, 2023, from HKD 1,840,814 thousand as of June 30, 2023[9] - Total equity as of December 31, 2023, was HKD 7,460,669 thousand, up from HKD 2,024,286 thousand as of June 30, 2023[10] - Deferred tax liabilities increased significantly to HKD 7,543,949 thousand as of December 31, 2023, from HKD 234,029 thousand as of June 30, 2023[10] - The company's equity attributable to owners amounted to RMB 6,724,629,000 as of December 31, 2023, with a net asset value per share of RMB 28.29 (approximately HKD 31.22)[91] - The company's net current assets amounted to HKD 13,154,091,000 as of December 31, 2023, with a current ratio of 74.81, compared to HKD 346,741,000 and a current ratio of 3.82 as of June 30, 2023[110] - The company's bank balances and cash, including bank time deposits, totaled HKD 450,822,000 as of December 31, 2023, compared to HKD 212,955,000 as of June 30, 2023[110] - The company has no bank borrowings as of December 31, 2023, resulting in a debt-to-equity ratio of 0%[91] - The company has fully repaid all bank financing, releasing collateral with a total book value of HKD 771,336,000 as of December 31, 2023[97] - The company maintains an unused credit facility of HKD 1,000,000 as of December 31, 2023, for liquidity purposes[110] Investment Properties and Development - Development properties are accounted for at the lower of cost and net realizable value, with cost including land cost, development expenses, and other attributable costs[13] - The company's investment property portfolio primarily includes office buildings, residential and commercial units, and parking lots in Shanghai and Beijing, with property development focused on Shenzhen[44] - The company acquired the land use rights for a plot near Dongjiaotou, Nanshan District, Shenzhen, which is intended for development as a property for sale, classified under a new operating segment[44] - The company signed a memorandum of understanding (MOU) with a joint venture partner on April 14, 2023, agreeing to a land swap with the Shenzhen Planning and Natural Resources Bureau, dividing the new land into two parcels allocated to the company and the joint venture partner[36] - The company signed a land use rights transfer contract with the planning bureau on December 14, 2023, for the allocation of land parcel K709-0003 to its subsidiary, Dynamic (B.V.I.) Limited[55] - The company's joint venture, Shenzhen Zhenhua Port Enterprise Co., Ltd., had its compulsory liquidation withdrawn by court order on May 4, 2023[53] - The company's joint venture partner and the planning authority signed land use right transfer contracts for allocated land parcels in Shenzhen[66] - The company allocated land (K709-0003) covers an area of approximately 65,000 square meters with a developable construction area of 179,000 square meters, including 143,000 square meters for residential use and 29,000 square meters for commercial use[88] - The fair value gain of the allocated land was confirmed at RMB 11,537,708,000 (approximately HKD 12,629,669,000) during the review period, leading to a profit of RMB 11,543,284,000 (approximately HKD 12,635,773,000) for the company[89] - The company's development properties are expected to incur significant development costs, to be funded by internal resources, bank financing, and other applicable methods[110] Rental Income and Property Leasing - Rental income from properties included variable lease payments of HKD 1,036,000, with the remaining amounts being fixed lease payments[45] - The company's rental income in Shanghai accounted for 61% of total revenue, down from 66% in 2022, due to increased office supply and economic challenges[64] - The average occupancy rate of the "Yujing International Business Plaza" in Shanghai was 86%, with rental income of RMB 21,407,000 (HKD 23,433,000), a decrease of 8% compared to the previous year[64] - The company's investment properties in Beijing and Shanghai generated rental income of RMB 34,995,000, a slight decrease of 1% compared to RMB 35,432,000 last year[85] - Average occupancy rate of the shopping mall in Chaoyang District, Beijing increased to 85% (2022: 79%)[118] - Rental income from the shopping mall reached RMB 13,588,000 (HKD 14,874,000), a 11% increase compared to the previous year[118] - Rental income accounted for 39% of the company's total revenue (2022: 34%)[118] - Profit from the property leasing segment was RMB 4,611,000 (HKD 5,048,000), up from RMB 4,355,000 (HKD 4,868,000) in 2022[118] - Basic profit excluding fair value changes and related tax impacts was RMB 6,894,000 (HKD 7,547,000), compared to RMB 6,655,000 (HKD 7,439,000) in 2022[118] Fair Value and Investment Property Adjustments - The fair value of investment properties increased by HKD 1,840,814 as of July 1, 2023, and further adjustments resulted in a total fair value of HKD 1,860,753 as of December 31, 2023[37] - The group recorded a net loss of HKD 24,000 in other income, gains, or losses, compared to a gain of HKD 6,582,000 in 2022, primarily due to a decrease in fair value of investment properties by HKD 13,338,000[60] - The company recorded a net fair value loss of HKD 13,338,000 on investment properties, compared to HKD 10,812,000 in the same period last year[75] - The fair value of investment properties in Shanghai decreased by RMB 9,902,000 (HKD 10,839,000), with a profit of RMB 5,763,000 (HKD 6,309,000) excluding fair value changes and related tax impacts[64] - The fair value of investment properties in Beijing and Shanghai decreased by RMB 12,185,000 (equivalent to HKD 13,338,000), compared to RMB 9,673,000 (equivalent to HKD 10,812,000) last year[85] - Fair value of investment properties decreased slightly by RMB 2,283,000 (HKD 2,499,000)[118] - The company recognized a significant fair value gain of HKD 12,635,773,000 from the distribution of land by a joint venture[82] Tax and Financial Adjustments - Current China income tax (excluding Hong Kong) was HKD 2,380 thousand, with deferred tax credits of HKD 7,247,310 thousand[26] - The company's deferred tax liability increased due to the fair value gain on land allocation, which will be paid upon the development and sale of the related property[80] - The company's other comprehensive income was HKD 71,638,000, driven by a 1.71% appreciation of RMB against HKD, compared to a 4.5% depreciation last year[83] - The company recorded a net exchange gain of HKD 4,097,000 due to the depreciation of RMB against HKD during the review period[91] - The group's financial performance was impacted by a net exchange gain of HKD 4,097,000 due to the appreciation of the Hong Kong dollar against the RMB[60] Dividends and Shareholder Returns - The company declared an interim dividend of HKD 0.5 per share, totaling HKD 1,189,000[29] - The company declared an interim dividend of HKD 0.5 cents per share for the six months ended December 31, 2023, the same as the previous year[105] Legal and Administrative Matters - A former tenant filed multiple administrative lawsuits against the relocation compensation agreement signed in 2021, and the case is currently under appeal[119] - Trade and other payables increased to HKD 3,459,000 as of December 31, 2023, compared to HKD 2,150,000 as of June 30, 2023, with an additional provision for tenant relocation compensation of HKD 51,905,000[58] Joint Ventures and Partnerships - The company is entitled to 80% of the profit from the redevelopment of a land parcel in Shenzhen, China, as per a 2010 arbitration award[35] - Shenzhen Zhenhua Bay Enterprise Co., Ltd. repaid the group HKD 230,564,000 for land price advances and interest, funded by the joint venture partner[68] - The company's receivable from a joint venture was largely settled during the interim period, with a remaining balance of HKD 2,165,000 as of December 31, 2023[104] - The company's share of profit from a joint venture, Shenzhen Hua, was HKD 10,368,000 as of December 31, 2023, the same as June 30, 2023[103] Market Outlook and Strategy - The company expects continued challenges in the Shanghai office market due to increased supply and weak demand, but plans to implement competitive leasing strategies to maintain occupancy rates[94] - The Shenzhen real estate market is expected to recover and grow, supported by strong economic and population fundamentals, which will enhance the development value of the company's allocated land in Nanshan District[95] - The company plans to further develop the retail market in Beijing through new brands and environmental upgrades to enhance the consumer atmosphere[107] Other Income and Expenses - Other income, gains, and losses included bank deposit interest income of HKD 2,490 thousand and exchange gains of HKD 4,097 thousand[24] - The company paid and recognized a replacement cost of HKD 1,360,000 for new investment properties during the interim period[47] - The company's investment cost for non-listed acquisitions and profit (loss) allocation and reserves was HKD 74,386 as of December 31, 2023, compared to HKD 210,790 as of June 30, 2023[102]
达力集团(00029) - 2024 - 中期业绩