Financial Performance - For the six months ended June 30, 2020, the company's attributable net profit significantly decreased to HKD 575 million, down 68.9% from HKD 1.851 billion in the same period of 2019[11]. - After excluding the revaluation changes of investment properties and fair value changes of property development projects, the company's underlying net profit for the first half of 2020 was HKD 1.009 billion, a decrease of 27.4% from HKD 1.390 billion in 2019[11]. - The basic earnings per share for the interim period in 2020 was HKD 0.86, compared to HKD 1.18 in 2019[12]. - The company's unaudited net profit attributable to shareholders for the six months ended June 30, 2020, significantly decreased to HKD 575 million, down 68.9% from HKD 1.851 billion in the same period of 2019[14]. - The basic earnings per share for the first half of 2020 was HKD 0.49, compared to HKD 1.57 in the same period of 2019[14]. - The total comprehensive income for the period was HKD 429,218,000, compared to HKD 2,028,620,000 in the previous year[38]. - The net profit for the period was HKD 598,674,000, a decrease from HKD 2,060,166,000 in the previous year[36]. - Total revenue for the six months ended June 30, 2020, was HKD 3,730,856,000, down from HKD 5,664,767,000 in the same period of 2019, indicating a decline of approximately 34.2%[51]. Dividends and Shareholder Returns - The interim cash dividend per share for 2020 was HKD 0.24, unchanged from 2019[12]. - The company announced a special interim dividend in the form of shares, with eligible shareholders entitled to receive 2.67 shares of Polytec Asset Holdings for every share of the company held[12]. - The board approved the issuance of dividends amounting to HKD 635,381 for the period[44]. - The company declared an interim dividend of HKD 0.24 per share, consistent with the previous year, amounting to HKD 282,392,000[66]. Property Development and Sales - As of June 30, 2020, the total sales revenue recognized from the residential project "63 Pokfulam" in Hong Kong was approximately HKD 2.4 billion, with over 95% of the units sold[18]. - The major development project at 63 Pokfulam in Hong Kong has sold over 95% of its residential units, with remaining units to be launched in an orderly manner[28]. - The total pre-sale/sales amount attributable to the company in mainland China for the six months ended June 30, 2020, was approximately RMB 856 million (approximately HKD 937 million)[18]. - The foundation work for the fourth phase of Jiangwan City in Wuxi is underway, with pre-sales expected to launch in the first half of next year[28]. - The third phase of Cui Di Wan in Shenyang is expected to launch pre-sales in the fourth quarter of this year[28]. Financial Position and Liabilities - As of June 30, 2020, the total bank loans amounted to HKD 12,962,000,000, an increase from HKD 10,960,000,000 as of December 31, 2019[31]. - The net bank borrowings were HKD 10,935,000,000 after accounting for cash and bank balances of HKD 2,027,000,000[31]. - The capital debt ratio was 42.5% as of June 30, 2020, compared to 41.3% as of December 31, 2019[31]. - Total liabilities decreased to HKD 6,294,547 from HKD 6,784,427, indicating improved financial stability[42]. - The company's net asset value as of June 30, 2020, was HKD 31,034,438, down from HKD 31,321,348 at the end of 2019[42]. Market Conditions and Strategic Focus - The real estate market in Hong Kong remains uncertain due to the ongoing impact of the COVID-19 pandemic, while recovery is faster in mainland China and stabilizing in Macau[17]. - The company plans to focus on its core real estate and related businesses following the physical distribution of its shares in Polydata Assets[29]. - The company plans to continue focusing on property development and investment, despite the current market challenges[50]. - The company anticipates continued market expansion and product development initiatives in the upcoming quarters, aiming to enhance overall performance[58]. Operational Performance - The group recorded cash inflow of approximately HKD 1,356,000,000 from sales and pre-sales of projects in Hong Kong during the period[31]. - The group invested approximately HKD 671,000,000 in project development during the period[31]. - The group incurred a loss of HKD 331,022,000 from changes in the fair value of investment properties[36]. - The company reported a significant decline in property development revenue, with total sales dropping to HKD 2,933,754,000 from HKD 5,130,583,000 year-over-year[51]. Employee and Governance - The total number of employees increased to 3,185, up from 3,062 as of December 31, 2019, reflecting business growth[109]. - Total employee costs rose to HKD 328 million for the period, compared to HKD 125 million as of June 30, 2019, due to salary adjustments and increased headcount[109]. - The group confirmed compliance with all provisions of the Corporate Governance Code, except for the provision regarding the dual role of the Chairman and CEO[97]. - The company emphasizes the importance of human resources quality in maintaining competitive advantages and conducts various training programs for employees[109]. Oil Business and Impairment - The oil business recorded a post-tax loss of HKD 76.4 million, significantly higher than the loss of HKD 11.3 million in the same period last year[26]. - The company plans to cease its oil business in Kazakhstan due to significant losses and has fully written off the book value of its oil assets[28]. - The impairment loss for oil production assets was HKD 54,214,000 for the six months ended June 30, 2020, compared to HKD 210,731,000 for the same period in 2019[71]. - The estimated future oil prices as of June 30, 2020, ranged from USD 39.02 to USD 71.47 per barrel, down from USD 61.79 to USD 74.01 per barrel as of December 31, 2019[71].
九龙建业(00034) - 2020 - 中期财报