Financial Performance - Revenue for the six months ended June 30, 2021, was HK$18,178,000, a decrease of 35.5% compared to HK$28,245,000 in the same period of 2020[10]. - Operating loss for the period was HK$29,089,000, compared to an operating profit of HK$15,205,000 in the previous year[8]. - Loss for the period amounted to HK$48,795,000, compared to a profit of HK$6,673,000 in the same period of 2020[8]. - Basic loss per share was HK$3.93, compared to earnings of HK$0.54 per share in the previous year[8]. - Total comprehensive expense for the period was HK$50,946,000, a decrease from a comprehensive income of HK$4,311,000 in the previous year[12]. - The company reported a loss of HK$48,795,000 for the six months ended June 30, 2021, compared to a profit of HK$6,673,000 in the same period of 2020, representing a significant decline[12]. - The company reported a loss before taxation of HK$47,589,000 for the six months ended June 30, 2021, compared to a profit of HK$8,765,000 in the same period of 2020[100]. - The Group's financial results reflect the significant challenges faced in the retail sector due to the ongoing pandemic[152]. Asset and Equity Changes - Non-current assets amounted to HK$4,067,403,000 as of June 30, 2021, slightly down from HK$4,098,679,000 at the end of 2020[14]. - Total equity decreased to HK$4,294,973,000 as of June 30, 2021, down from HK$4,345,919,000 at the end of 2020[17]. - The total assets of the Group decreased from HK$4,544,502,000 as of December 31, 2020, to HK$4,515,584,000 as of June 30, 2021[154]. - The net assets of the Group decreased from HK$4,345,919,000 as of December 31, 2020, to HK$4,294,973,000 as of June 30, 2021[154]. Cash Flow and Liquidity - The company’s cash and cash equivalents rose to HK$253,862,000 from HK$186,175,000, indicating improved cash flow management[14]. - For the six months ended June 30, 2021, net cash generated from operations was HK$8,214,000, compared to a net cash used of HK$(2,048,000) in the same period of 2020, representing a significant improvement[30]. - The total cash and cash equivalents at the end of the period increased to HK$253,862,000, up from HK$227,163,000 at the end of June 2020, reflecting a growth of about 11.8%[33]. - The company reported a net increase in cash and cash equivalents of HK$67,626,000 for the period, compared to HK$10,863,000 in 2020, marking a substantial increase[33]. Revenue Sources and Impacts - The rental income from investment properties for the six months ended June 30, 2021, was HK$23,952,000, an increase from HK$14,048,000 in the same period of 2020, representing a significant growth[41]. - The decrease in revenue was mainly attributable to a reduction in rental income from investment properties[152]. - The Group granted rent concessions to some tenants due to COVID-19, leading to a decrease in rental income from commercial properties, which negatively impacted the fair value of investment properties[36]. - The average occupancy level of properties situated at Harbour Crystal Centre was approximately 99%, but rental income performance was below expectations due to the impact of the coronavirus pandemic[152]. Dividends and Shareholder Returns - The board of directors announced an interim dividend, details of which are to be confirmed[9]. - The company paid no dividends in the first half of 2021, compared to HK$31,026,000 in the same period of 2020, indicating a shift in capital allocation strategy[33]. - The Board decided not to declare an interim dividend for the six months ended 30th June, 2021, citing the need to retain funds for future business opportunities[151]. Liabilities and Financial Obligations - Total liabilities increased to HK$220,611,000 from HK$198,583,000 at the end of 2020, reflecting a rise in financial obligations[18]. - The total liabilities of the Group increased from HK$198,583,000 as of December 31, 2020, to HK$220,611,000 as of June 30, 2021[155]. - The ratio of total liabilities to total assets was approximately 4.89% as of June 30, 2021, compared to 4.37% in 2020[155]. Impairment and Fair Value Losses - Impairment losses under the expected credit loss model were HK$30,370,000, significantly higher than HK$1,771,000 in the previous period[7]. - Fair value loss from investment properties was HK$14,934,000, compared to a loss of HK$8,100,000 in the same period of 2020[7]. - The company recorded a loss from changes in the fair value of investment properties amounting to HK$14,934,000 for the six months ended June 30, 2021, compared to HK$8,100,000 in the same period of 2020[100]. - The net decrease in fair value recognized in profit or loss was HK$14,934,000 for the period ending June 30, 2021, compared to HK$32,635,000 for the same period in the previous year, indicating an improvement in valuation losses[68]. Related Party Transactions - Related party transactions for the six months ended June 30, 2021, included rent and management fees charged to the Group totaling HK$787,000, compared to HK$918,000 in the same period of 2020[130]. - Interest income earned by the Group from related parties was HK$2,210,000 for the six months ended June 30, 2021, slightly down from HK$2,225,000 in 2020[130]. Corporate Governance and Compliance - The Company has complied with the Corporate Governance Code except for certain deviations regarding the Remuneration Committee and Audit Committee's terms of reference[169]. - The Audit Committee reviewed the accounting principles and practices adopted by the Group for the six months ended June 30, 2021[180]. - All Directors confirmed full compliance with the Model Code regarding securities transactions during the review period[170].
亚证地产(00271) - 2021 - 中期财报