Financial Performance - The rental income from the Group's property leasing business decreased by approximately 12.4% to approximately HK$51,611,000 in Period 2023, compared to approximately HK$58,934,000 in Period 2022[1]. - The loss attributable to the owners of the Company decreased from approximately HK$146,349,000 for Period 2022 to approximately HK$94,260,000 for Period 2023[8]. - Other income, gains, and losses decreased from approximately HK$277,560,000 for Period 2022 to approximately HK$158,223,000 for Period 2023[8]. - The loss from the fair value of financial assets at FVTPL decreased from approximately HK$108,892,000 for Period 2022 to approximately HK$48,037,000 for Period 2023[8]. - The basic loss per share attributable to ordinary equity holders of the Company was 4.09 HK cents for Period 2023, compared to 6.35 HK cents for Period 2022[10]. - The total comprehensive loss for the period was HK$183,508,000, compared to HK$336,258,000 in the same period last year, indicating a reduction of 45.5%[92]. - The company reported a loss for the period of HK$69,595,000, an improvement from HK$125,858,000 in the previous year[92]. - The Group's loss before taxation for the period was HK$94,260,000, compared to a loss of HK$146,349,000 in the same period last year, indicating an improvement[157]. Expenses and Costs - Finance costs incurred by the Group decreased from approximately HK$277,064,000 for Period 2022 to approximately HK$195,263,000 for Period 2023[8]. - Administrative expenses increased from approximately HK$46,479,000 in Period 2022 to approximately HK$64,641,000 in Period 2023, primarily due to the absence of financial guarantee liabilities provision written back in Period 2022[13]. - Direct operating expenses increased to HK$4,679,000 from HK$3,584,000, representing a rise of 30.5%[89]. - Total finance costs for the six months ended June 30, 2023, were HK$195,263,000, a decrease of 29.5% from HK$277,064,000 in 2022[144]. Assets and Liabilities - Cash and bank balances (excluding restricted bank balance) decreased from approximately HK$97,517,000 as of 31 December 2022 to approximately HK$34,772,000 as of 30 June 2023, primarily due to the settlement of certain other payables[24]. - As of June 30, 2023, total non-current assets amounted to HK$4,726,383, a decrease of 2.5% from HK$4,847,922 as of December 31, 2022[93]. - Current assets totaled HK$4,359,616, down 15.7% from HK$5,170,860 at the end of 2022[93]. - Total equity decreased to HK$4,311,005 from HK$4,494,513, reflecting a reduction of 4.1%[95]. - The total amount of unsecured bank loans was approximately HK$36,877,000 as of June 30, 2023, compared to HK$33,595,000 as of December 31, 2022[198]. Borrowings and Financing - As of June 30, 2023, the Group's total borrowings amounted to approximately HK$3,783,251,000, a decrease from HK$3,972,452,000 as of December 31, 2022[34]. - Short-term borrowings increased to HK$1,687,568,000 from HK$1,388,974,000, while long-term borrowings decreased to HK$2,095,683,000 from HK$2,541,766,000[35]. - The Group's gearing ratio was 97% as of June 30, 2023, compared to 99% at the end of 2022, indicating a slight improvement in leverage[44]. - The Group is negotiating with lenders for the refinancing of certain borrowings to manage financial obligations[99]. Employee and Corporate Governance - The total employee benefit expenses for the period 2023 were approximately HK$29,627,000, compared to approximately HK$29,579,000 for the period 2022[59]. - The Company did not declare any interim dividend for the six months ended June 30, 2023, consistent with the previous period where no dividend was declared[67]. - The Company has complied with all code provisions of the Corporate Governance Code throughout the review period, except for the separation of roles of chairman and chief executive officer[75]. - The Group employed 63 employees as of June 30, 2023, down from 66 employees as of December 31, 2022[59]. Market Position and Strategy - The Group aims to strengthen its position in the market by focusing on the mixed-ownership reform and expanding into overseas markets[5]. - The Group's property management team has implemented various measures to maintain occupancy and rental income stability[1]. Fair Value and Investments - The fair value of unlisted equity securities and unlisted funds was adjusted to HK$433 million as of June 30, 2023, down from HK$475 million as of December 31, 2022[74]. - The fair value of the non-performing asset portfolio was estimated at HK$304 million as of June 30, 2023, compared to HK$408 million as of December 31, 2022[74]. - The fair value of the liability component of convertible bonds was estimated by discounting expected future cash flows using an equivalent market interest rate[71]. Risks and Uncertainties - There are inherent uncertainties regarding the Group's ability to generate adequate cash flows to continue as a going concern[101]. - The Group's ability to continue operations depends on the support from existing lenders and successful implementation of financial plans[101].
银建国际(00171) - 2023 - 中期财报