Financial Performance - The total revenue for the six months ended December 31, 2023, was HKD 38,307,000, a decrease of approximately 3% compared to HKD 39,606,000 in the same period last year[45]. - Gross profit for the same period was HKD 24,914,000, down about 7% from HKD 26,934,000 year-on-year, resulting in a gross margin of approximately 65%[45]. - For the six months ending December 31, 2023, the company reported a profit attributable to shareholders of HKD 5,365,693, a significant increase from HKD 1,476,257 in the same period of 2022, representing a growth of approximately 263%[119]. - The total comprehensive income attributable to shareholders for the same period was HKD 5,436,647, compared to a loss of HKD 88,954 in the previous year, indicating a strong turnaround[119]. - The earnings per share for the period was HKD 2,257.30, a substantial increase from HKD 0.62 in the prior year[119]. - The pre-tax profit increased significantly to HKD 12,615,624, compared to HKD 312 in the previous year, indicating a substantial growth[133]. - Net profit for the period was HKD 5,365,934, a significant increase from HKD 1,733 in the prior year[133]. - The group reported a significant increase in financing costs, with share of losses from joint ventures amounting to HKD 12,635,773, compared to a loss of HKD 3,828 in the previous year[144]. Assets and Liabilities - The company's right-of-use assets increased to HKD 6,553,000 as of December 31, 2023, up from HKD 1,053,000 as of June 30, 2023, indicating a substantial rise of 521.5%[33]. - The lease liabilities also saw a significant increase, rising to HKD 6,598,000 as of December 31, 2023, compared to HKD 1,134,000 as of June 30, 2023, representing an increase of 482.5%[33]. - The deferred tax liabilities increased significantly, primarily due to the deferred tax on fair value gains from land distribution, which will be settled upon completion and sale of related properties[26]. - The group's total equity as of December 31, 2023, was HKD 7,460,669, compared to HKD 2,024,286 as of June 30, 2023[135]. - Non-current liabilities, including deferred tax liabilities, increased to HKD 7,543,949 from HKD 234,029[135]. - The group has no bank borrowings as of December 31, 2023, maintaining a debt ratio of zero[77]. Cash Flow and Investments - As of December 31, 2023, the group's cash and bank deposits totaled HKD 450,822,000, up from HKD 212,955,000 as of June 30, 2023, indicating a significant increase in cash flow[64]. - The net cash from operating activities for the six months ended December 31, 2023, was HKD 3,908,000, a decrease of 71.5% compared to HKD 13,708,000 in the same period of 2022[152]. - The net cash used in investing activities was HKD 122,869,000, compared to a net cash outflow of HKD 6,998,000 in the previous year[152]. - The total cash and cash equivalents at the end of the period amounted to HKD 255,592,000, an increase from HKD 161,556,000 year-on-year[152]. Rental Income and Property Performance - The company reported a significant increase in rental income, with trade and other payables amounting to HKD 3,459,000 as of December 31, 2023, compared to HKD 2,150,000 as of June 30, 2023, reflecting a growth of approximately 60.5%[26]. - The rental income from the shopping mall in Beijing increased by approximately 11% year-on-year, totaling RMB 13,588,000 (equivalent to HKD 14,874,000), which accounted for 39% of the group's total revenue[69]. - In Shanghai, rental income from the premium office building decreased by about 8% year-on-year, amounting to RMB 21,407,000 (equivalent to HKD 23,433,000), representing 61% of the group's total revenue[71]. - The group's investment properties in Shanghai and Beijing generated rental income of RMB 34,995,000, a slight decrease of 1% compared to RMB 35,432,000 last year[54]. Joint Ventures and Development - The company has maintained a strong focus on its joint ventures, with a 80% profit share from the redevelopment of land in Shenzhen, China, as per the arbitration ruling[20]. - The group has acquired land use rights for a plot of land in Shenzhen, which is planned for development into properties for sale[40]. - The group holds an 80% equity interest in the joint venture, with an investment cost of RMB 42,840,000[197]. - The registered capital of the joint venture is confirmed at RMB 21,000,000, with the group contributing RMB 10,290,000, representing a 49% equity interest[197]. - The group expects to fully recover the receivable from the joint venture upon completion of land exchange and allocation with the planning authority[200]. Corporate Governance and Strategy - The company is actively pursuing new strategies, including the adoption of a new share option scheme approved by shareholders, aimed at incentivizing directors and employees[27]. - The audit committee has reviewed the accounting standards and practices adopted by the group, ensuring compliance with financial reporting matters[128]. - The company aims to enhance the retail market in Beijing through new branding and environmental improvements, focusing on maintaining occupancy rates and recurring income[98]. - The company plans to actively adjust leasing and market strategies to attract new retailers and retain existing ones, ensuring competitive and effective leasing strategies[98]. Market Outlook - The real estate market in Shenzhen is expected to recover and maintain optimism, supported by strong economic fundamentals and population growth[82]. - The office space market in Shanghai is anticipated to face challenges due to increased supply and weak demand, leading to rental and occupancy pressure[80]. - The group will continue to monitor the impact of RMB fluctuations to mitigate negative effects on financial performance[77].
达力集团(00029) - 2024 - 中期财报