Financial Performance - The Group recorded revenue of approximately HK$4.0 million for the six months ended 30 June 2023, representing an increase of approximately 76% compared to HK$2.3 million in the same period of 2022[2]. - The Group's loss attributable to owners for the period was approximately HK$12.8 million, compared to a loss of HK$11.1 million in 2022[2]. - Total comprehensive loss for the period amounted to approximately HK$17.6 million, up from HK$13.1 million in 2022, primarily due to increased financial costs from rising interest rates[2]. - The Group's basic loss per share for the period was 1.18 HK cents, compared to 1.02 HK cents in 2022[2]. - The company reported a loss of HK$12,841,000 for the six months ended June 30, 2023, compared to a loss of HK$11,083,000 for the same period in 2022, indicating an increase in loss of about 15.9%[54]. - The basic loss per share for the period was HK$1.18, compared to HK$1.02 for the same period in 2022, indicating a 15.7% increase in loss per share[148]. Rental Income and Property Management - Rental income for the period was approximately HK$4.0 million, compared to HK$2.3 million in the same period last year, reflecting a 76% increase[7]. - The Group's property portfolio includes commercial units in Hong Kong, with specific properties showing rental income increases of up to 100%[7]. - The Group aims to generate stable income and capital appreciation through ongoing management of its investment properties and tenant portfolio[11]. - The Group will reassess its marketing strategy to decrease the vacancy rate of its investment properties in the near future[88]. - The Group may consider disposing of certain investment properties to strengthen its liquidity position if necessary[88]. Financial Position and Liquidity - As of June 30, 2023, the company's net assets amounted to HK$799,302,000, a decrease from HK$816,866,000 as of December 31, 2022, reflecting a decline of approximately 2.5%[52]. - Total equity attributable to owners of the company decreased to HK$409,151,000 as of June 30, 2023, from HK$421,992,000 at the end of 2022, representing a decline of approximately 3.0%[54]. - The net current liabilities were reported at HK$(635,265,000) as of June 30, 2023, compared to HK$(617,898,000) at the end of 2022, indicating a worsening of liquidity position[52]. - The Group has net current liabilities of HK$635,265,000, which includes a bank borrowing of HK$420,815,000 and a loan from a non-controlling interest of HK$152,700,000 maturing on April 30, 2024[88]. - The Group is negotiating to extend the loan of HK$152,700,000 upon maturity[88]. Expenses and Financial Costs - Administrative expenses and finance costs totaled HK$19.9 million for the period, compared to HK$12.7 million in 2022[47]. - Interest on bank borrowing for the six months ended June 30, 2023, was HK$10,290,000, significantly higher than HK$3,526,000 in the same period of 2022[132]. - The Group incurred a segment loss of HK$8,674,000, with property investment segment loss at HK$8,390,000 and securities investment segment loss at HK$284,000[101]. Governance and Compliance - The company has complied with all provisions of the Corporate Governance Code during the period, except for the separation of the roles of chairman and chief executive officer[42]. - The audit committee consists of two independent non-executive directors, ensuring oversight of financial reporting and internal controls[44]. - The company will continue to review its organizational structure to assess the need for appointing a chief executive officer as business develops[42]. Investment Properties and Valuation - The carrying amount of the Group's investment properties was approximately HK$1,418.1 million as of 30 June 2023, unchanged from 31 December 2022[1]. - The Group's investment properties were classified as Level 3 in the fair value hierarchy, with no changes in fair value recognized in profit or loss for the six months ended 30 June 2023[158]. - As of 30 June 2023, the Group's listed equity securities in Hong Kong amounted to HK$2,250,000, an increase from HK$1,560,000 as of 31 December 2022[161]. Cash Flow and Operating Activities - Net cash from operating activities for the six months ended June 30, 2023, was HK$1,870,000, a recovery from a cash outflow of HK$2,418,000 in the previous year[82]. - The company experienced a net cash inflow from investing activities of HK$45,000 for the six months ended June 30, 2023, down from HK$8,605,000 in the same period of 2022[82]. - The Group's cash flow forecast covers a period of 12 months from the date of approval of the consolidated financial statements[88]. Employee and Operational Information - The Group had 7 employees in Hong Kong as of June 30, 2023, with competitive remuneration packages based on industry practices[179].
远东控股国际(00036) - 2023 - 中期财报