Financial Performance - For the six months ended December 31, 2020, the group recorded total revenue of HKD 42,337,000, a decrease of approximately 13% compared to HKD 48,782,000 in the same period last year[9]. - Gross profit for the same period was HKD 29,607,000, reflecting a decline of about 15% from HKD 34,823,000 year-on-year, with a gross margin of approximately 70%[9]. - The group reported a loss attributable to shareholders of HKD 34,086,000, compared to a profit of HKD 7,377,000 in the prior year, resulting in a basic loss per share of HKD 0.1434[10]. - The company reported a loss before tax of HKD 63,973,000, compared to a loss of HKD 14,009,000 in the previous year, indicating a significant increase in losses[49]. - Basic and diluted loss per share was HKD (14.34), compared to earnings of HKD 3.14 in the same period last year[50]. - Total comprehensive income for the period was HKD 138,116,000, a turnaround from a loss of HKD 32,402,000 in the prior year[50]. Revenue and Income Sources - Other income increased to HKD 19,384,000 from HKD 7,249,000, primarily due to bank interest income and a net exchange gain of HKD 5,995,000[9]. - Rental income from investment properties in Shanghai and Beijing totaled RMB 36,852,000, down approximately 16% from RMB 43,733,000 in the previous year[14]. - The company recorded a significant foreign exchange gain of HKD 172,215,000, compared to a loss of HKD 40,017,000 in the previous year[50]. - The interest income received during the period was HKD 2,584,000, an increase from HKD 1,694,000 in the prior year, reflecting a growth of 52.5%[56]. - Property rental income included variable lease payments of HKD 1,975,000, down from HKD 3,066,000 in the previous year, showing a decline of 35.6%[62]. Investment Properties and Market Conditions - The fair value of investment properties decreased by HKD 84,669,000, compared to a decrease of HKD 33,463,000 in the previous year, indicating a significant decline in market conditions[9]. - The total fair value reduction of investment properties in Shanghai amounted to RMB 60,000,000, compared to RMB 24,000,000 in the previous year, resulting in a loss of HKD 47,651,000 for the period[16]. - The total fair value reduction of investment properties in Beijing was RMB 13,700,000, leading to a loss of HKD 5,505,000 for the period[15]. - The overall performance was impacted by the COVID-19 pandemic and a weak rental market in China, leading to a decline in revenue from leasing operations[13]. Administrative and Operational Expenses - The group’s administrative expenses increased to HKD 23,188,000 from HKD 15,581,000 year-on-year, reflecting higher operational costs[9]. - The company incurred financing costs of HKD 985,000 for the six months ended December 31, 2020, down from HKD 2,038,000 in the same period of 2019[66]. - Administrative expenses were reduced to HKD 271,000 from HKD 15,581,000, reflecting cost-cutting measures[49]. Equity and Liabilities - The company’s total equity attributable to owners was RMB 1,786,784,000 as of December 31, 2020, with a net asset value per share of RMB 7.52[24]. - The company’s total bank borrowings were approximately HKD 97,586,000, with a debt ratio of 5% as of December 31, 2020[24]. - The company reported a net liability of HKD 10,822,000 for Shenzhen Zhenhua, with total liabilities of HKD 284,790,000[42]. - The company’s total liabilities to related parties included lease liabilities of HKD 6,792,000 and other receivables of HKD 1,864,000 as of December 31, 2020[94]. Future Outlook and Strategic Plans - The group anticipates a stabilization in vacancy rates in Beijing in 2021, although rental rates may take additional time to recover to pre-COVID levels[29]. - In Shanghai, the group expects a better business environment due to economic recovery, but office rental income may face downward pressure due to competitive leasing terms[29]. - The group plans to adjust leasing and marketing strategies to maintain tenant occupancy and regular income[29]. - Shenzhen is expected to develop further as a high-tech hub, enhancing the value of new land developments in the area[30]. - The group will continue to monitor the impact of RMB fluctuations to mitigate negative effects on its financial performance[24]. Shareholder Information - As of December 31, 2020, the total number of shares held by Dr. Chan Wing Choi is 93,701,279, representing approximately 39.42% of the total issued shares of 237,703,681[34]. - Zedra Asia Limited holds 89,321,279 shares, accounting for approximately 37.58% of the total issued shares[38]. - The company’s total issued shares as of December 31, 2020, represented approximately 10% of the total shares approved for the stock option plans[87]. Joint Ventures and Related Parties - The company holds a 49% equity interest in Shenzhen Zhenhua Port Bay Enterprises Co., Ltd., which has ceased operations since January 16, 2014[77]. - The joint venture's net assets will be distributed to the partners upon completion of the liquidation process, which is expected to take more than a year[78]. - The company has recognized a profit distribution of HKD 10,368,000 from the joint venture as of December 31, 2020, which has not been confirmed due to the need for unanimous consent from the Chinese partner[76].
达力集团(00029) - 2021 - 中期财报