华人置业(00127) - 2023 - 中期财报

Corporate Information The report provides fundamental company details, including board and committee member lists, principal office addresses, place of registration, stock code (127), and investor relations contact information - The report provides fundamental company details, including board and committee member lists, principal office addresses, place of registration, stock code (127), and investor relations contact information[30][15] Results Condensed Consolidated Statement of Comprehensive Income For the six months ended June 30, 2023, the Group's revenue significantly decreased by 77.1% to HK$270.6 million, primarily due to a substantial reduction in dividend income from an investee company, with profit for the period declining 83.1% to HK$146.7 million and basic earnings per share at HK$0.077 Key Financial Performance for H1 2023 | Metric | Six Months Ended June 30, 2023 (HK$ Thousand) | Six Months Ended June 30, 2022 (HK$ Thousand) | YoY Change | | :--- | :--- | :--- | :--- | | Revenue | 270,638 | 1,181,426 | -77.1% | | Gross Profit | 246,895 | 1,161,630 | -78.7% | | Profit Before Tax | 171,925 | 880,856 | -80.5% | | Profit for the Period | 146,685 | 870,566 | -83.1% | | Profit Attributable to Owners of the Company | 146,599 | 870,537 | -83.2% | | Basic and Diluted Earnings Per Share (HK$) | 0.077 | 0.456 | -83.1% | - Total comprehensive income for the period was HK$289.6 million, a significant turnaround from a total comprehensive expense of HK$451.2 million in the prior period, primarily driven by a positive shift in foreign exchange differences from overseas operations[33] Condensed Consolidated Statement of Financial Position As of June 30, 2023, the Group's total assets were HK$18.669 billion, a slight increase from year-end 2022, notably shifting from a net current asset position to net current liabilities of HK$495.8 million, while total equity increased to HK$14.292 billion Financial Position Summary | Metric | June 30, 2023 (HK$ Thousand) | December 31, 2022 (HK$ Thousand) | Change | | :--- | :--- | :--- | :--- | | Non-current Assets | 16,949,012 | 16,355,638 | +3.6% | | Current Assets | 1,720,329 | 3,078,877 | -44.1% | | Total Assets | 18,669,341 | 19,434,515 | -3.9% | | Current Liabilities | 2,216,173 | 3,060,100 | -27.6% | | Non-current Liabilities | 2,160,792 | 2,371,572 | -8.9% | | Total Liabilities | 4,376,965 | 5,431,672 | -19.4% | | Total Equity | 14,292,376 | 14,002,843 | +2.1% | | Net Current (Liabilities)/Assets | (495,844) | 18,777 | Shift from Net Asset to Net Liability | Condensed Consolidated Statement of Changes in Equity As of June 30, 2023, equity attributable to owners of the company increased to HK$14.269 billion, primarily driven by a total comprehensive income of HK$289.5 million for the period, comprising HK$146.6 million in profit and HK$142.9 million in other comprehensive income - Total comprehensive income for the period was HK$289.6 million, including HK$146.6 million profit attributable to owners of the company and HK$142.9 million in other comprehensive income, contributing to shareholder equity growth[41][33] - Other comprehensive income was primarily influenced by a HK$255.9 million gain from foreign exchange differences on overseas operations, partially offset by a HK$113.0 million loss on equity instruments measured at fair value through other comprehensive income[41][33] Condensed Consolidated Statement of Cash Flows In H1 2023, the Group's cash and cash equivalents decreased by HK$1.099 billion, with an ending balance of HK$936 million, primarily due to net cash outflow from financing activities, notably HK$1.136 billion in net repayment of bank and other borrowings Cash Flow Summary | Item | Six Months Ended June 30, 2023 (HK$ Thousand) | Six Months Ended June 30, 2022 (HK$ Thousand) | | :--- | :--- | :--- | | Net Cash from Operating Activities | 203,757 | (176,746) | | Net Cash from Investing Activities | (166,116) | 55,497 | | Net Cash from Financing Activities | (1,272,632) | (411,943) | | Net Decrease in Cash and Cash Equivalents | (1,099,105) | (533,192) | | Cash and Cash Equivalents at Beginning of Period | 2,038,768 | 2,479,874 | | Cash and Cash Equivalents at End of Period | 935,969 | 1,933,050 | Notes to the Condensed Consolidated Financial Statements The financial statement notes detail accounting policies, segment performance, and key asset-liability items, revealing that a significant drop in dividend income was the primary cause of reduced total revenue, while securities investment business turned profitable, and property development and trading profits declined sharply, alongside disclosures on investment property fair value changes and financial assets, including Evergrande shares - Despite the Group's current liabilities exceeding current assets by approximately HK$495.8 million as of June 30, 2023, management believes the Group possesses sufficient financial resources to continue as a going concern, thus the financial statements are prepared on a going concern basis[45] Revenue Source Analysis (HK$ Thousand) | Revenue Source | H1 2023 (HK$ Thousand) | H1 2022 (HK$ Thousand) | | :--- | :--- | :--- | | Property Rental Income | 130,352 | 157,139 | | Dividend Income (Listed and Unlisted) | 39,369 | 954,104 | | Gain on Disposal of Investments Held for Trading | 61,507 | 24,241 | | Other (Interest, Management Services, etc.) | 39,410 | 45,942 | | Total Revenue | 270,638 | 1,181,426 | - As of June 30, 2023, the Group's carrying value of China Evergrande shares was approximately HK$62.34 million (December 31, 2022: HK$109.8 million), with an unrealized fair value change loss of approximately HK$47.43 million recorded during the period[133] Interim Dividend The Board resolved not to declare any interim dividend for the six months ended June 30, 2023, consistent with the prior period, aiming to conserve cash for future investment opportunities - The Board resolved not to distribute an interim dividend for 2023, aiming to retain cash for future financial, property, or securities investment opportunities[315][336] Financial Operation Review Financial performance significantly declined this period, with revenue and gross profit decreasing by 77.1% and 78.7% year-on-year respectively, primarily due to a substantial reduction in dividend income from the property development and trading segment, while securities investment business turned profitable with a net profit of HK$10.3 million, and finance costs surged 98.4% due to rising interest rates, leading to a shift from net current assets to net current liabilities, though management remains confident in the going concern ability - Core loss was HK$43.1 million, compared to a core profit of HK$758.1 million in the prior period, with core loss/profit excluding the impact of major non-cash items such as unrealized fair value changes of investment properties[355] Debt and Gearing Ratios | Metric | June 30, 2023 | December 31, 2022 | | :--- | :--- | :--- | | Total Debt (HK$ Million) | 3,944.7 | 4,975.5 | | Net Debt (HK$ Million) | 2,857.7 | 2,788.9 | | Total Debt to Equity Ratio | 27.6% | 35.5% | | Net Debt to Equity Ratio | 20.0% | 19.9% | - Total comprehensive income attributable to owners of the company was HK$289.5 million, primarily boosted by a HK$260.9 million exchange gain from the appreciation of the British Pound, offsetting unrealized losses on financial asset investments[356] Business Review The Group's business primarily encompasses property investment and development in Hong Kong, mainland China, and overseas, alongside securities investment, with key projects including the Tsuen Wan industrial redevelopment in Hong Kong expected by early 2025, and the '120 Fleet Street' redevelopment in London anticipated for completion in H1 2026, while maintaining a diversified securities investment portfolio for treasury management - Hong Kong Property Investment: Harcourt House in Wan Chai had an average occupancy rate of approximately 75.65%; Causeway Bay Plaza had an average shop occupancy rate of approximately 88.48%, and the Tsuen Wan Ma Kok Street industrial site redevelopment project is expected to be completed by early 2025[424][452][401] - Overseas Property Investment: The '120 Fleet Street' project in London, UK, is undergoing redevelopment to provide approximately 540,000 square feet of Grade A office space, with completion anticipated in H1 2026[455] - Mainland China Property Investment: Beijing Hilton Hotel's occupancy rate was approximately 54.65%, and Oriental International Tower's occupancy rate was approximately 90.54%[455] - Securities Investment: Net profit from securities investment and treasury products for the period was approximately HK$10.3 million, with the Group's strategy focused on maintaining a diversified investment portfolio to manage risk and achieve stable returns[457][404] Prospects Looking ahead, the Group anticipates Hong Kong's economy to be driven by private consumption and inbound tourism, while the residential property market remains weak due to interest rate hikes; the Group will continue its UK property redevelopment and asset enhancement projects to create long-term value, remain vigilant against a volatile macroeconomic environment, and uphold corporate social responsibility - Hong Kong Market: Private consumption and tourism are expected to be key drivers of economic growth, with the Group enhancing footfall and spending in retail properties through marketing activities[438] - UK Market: Redevelopment and asset enhancement are underway for investment properties in prime London locations, which, despite short-term impacts on rental income, are expected to attract top-tier commercial tenants and create long-term value post-transformation[439] - Social Responsibility: The Group converted its Sham Shui Po property into a youth hostel, 'Chung Hok She', to support the government's efforts in addressing youth housing needs[469] Other Information Other Information and Events After the Reporting Period During and after the reporting period, the company disclosed several significant matters, including a continuing connected transaction for renewing the head office lease with a major shareholder-controlled entity, changes in directors and committee members, and arrangements for forfeiture of unclaimed dividends - The company experienced several senior management changes in May 2023, including the resignation of Mr. Lam Kwong Wai, Executive Director, Group Financial Controller, and Company Secretary, with successors already appointed[432][465] - The Group renewed the head office lease agreement with a company indirectly held by Executive Director Ms. Chan Hoi Wan, constituting a continuing connected transaction[460][434] Directors' and Chief Executives' Interests in Securities As of June 30, 2023, Executive Director Ms. Chan Hoi Wan indirectly held 74.99% of the company's shares through controlled corporations, acting as trustee for her minor children Key Directors' Shareholding | Director Name | Capacity | Shareholding Percentage | | :--- | :--- | :--- | | Ms. Chan Hoi Wan | Interests in controlled corporations and interests of children under 18 | 74.99% | Substantial Shareholders' Interests in Securities According to the register, entities including Mr. Lau Luen Hung (as an associate of his spouse and minor children's interests) and Sino Omen Holdings Limited are deemed to hold 74.99% of the company's interests, in addition to the directors - Mr. Lau Luen Hung is deemed to hold 74.99% of the company's shares due to the interests of his spouse, Ms. Chan Hoi Wan, and minor children[448] Corporate Governance and Other Disclosures The company largely complied with the Corporate Governance Code during the reporting period, disclosed specific financing agreements as required by Listing Rules, had its unaudited financial statements reviewed by the Audit Committee, and did not purchase, sell, or redeem any listed securities during the period - The Audit Committee has reviewed the unaudited condensed consolidated financial statements for the period[112][480] - The company complied with the Corporate Governance Code during the period, with no deviations other than the Chairman's absence from the Annual General Meeting[115][484] - Neither the company nor any of its subsidiaries purchased, sold, or redeemed any of the company's listed securities during the period[119][488]