Financial Performance - Revenue for the six months ended September 30, 2020, was HKD 16.8 million, a decrease of 29.6% compared to HKD 23.9 million for the same period in 2019[2] - Gross profit for the same period was HKD 0.2 million, down from HKD 2.3 million, indicating a significant decline in profitability[2] - The company reported a loss attributable to equity holders of HKD 10.6 million, compared to a profit of HKD 70.4 million in the previous year, marking a substantial year-over-year decline[2] - Operating loss for the period was HKD 6.7 million, compared to an operating profit of HKD 10.0 million in the prior year[2] - The company reported a net loss attributable to equity holders of HKD 10.6 million for the six months ended September 30, 2020, compared to a net profit of HKD 70.4 million in the same period last year, reflecting a significant impact from the COVID-19 pandemic[35] - The company’s operating loss for the six months ended September 30, 2020, was HKD 27.7 million, compared to an operating profit of HKD 10.0 million in the same period of 2019[12] Cash Flow and Assets - Net cash outflow from operating activities was HKD 1,376.8 million, significantly higher than HKD 71.7 million in the same period last year[8] - Total assets as of September 30, 2020, were HKD 7,040.0 million, a decrease from HKD 7,198.8 million as of March 31, 2020[5] - Cash and cash equivalents decreased to HKD 2,093.5 million from HKD 3,599.7 million at the end of the previous period[8] - The company’s net asset value decreased to HKD 6,911.6 million from HKD 6,996.3 million[5] - As of September 30, 2020, total loans amounted to HKD 197.3 million, down from HKD 218.9 million as of March 31, 2020, with a current interest rate of 3.46%[27][26] - As of September 30, 2020, the group's net cash after deducting loans was HKD 1.96 billion, down from HKD 3.39 billion as of March 31, 2020[42] Revenue Sources - Gross income from property sales was HKD 9.8 million, down 44.3% from HKD 17.6 million in the previous year[11] - Property rental gross income increased to HKD 1.4 million from HKD 0.4 million, representing a 250% increase year-over-year[11] - Property sales decreased by approximately 30% due to weak market sentiment, contributing to the decline in revenue[35] Financial Expenses - The company experienced a significant increase in financial expenses, reporting HKD 5.4 million compared to HKD 3.6 million in the previous year[2] - The financial expenses for the period were HKD 5.4 million, consistent with the previous year[12] Dividends - Proposed interim dividend remained unchanged at HKD 0.12 per share, totaling HKD 74.1 million[4] - The company declared an interim dividend of HKD 0.12 per share, consistent with the previous year's dividend[33] Strategic Developments - The company plans to commence construction on a luxury residential building in Ap Lei Chau in Q2 2021, with site surveys completed[38] - Marketing activities for the "Shan Shui Bay 108" luxury residential project are progressing smoothly, aiming to attract buyers with its premium location and design[38] - The French Valley Airport Center project in California is being developed in phases, with positive market response for the first two phases already underway[38] Industry Impact and Outlook - The group anticipates structural changes in the hotel industry post-pandemic, driven by new business strategies and effective health measures[39] - The group is closely monitoring the impact of geopolitical tensions and the pandemic on its operations, maintaining a cautious management approach[41] - The group expects the low-interest environment in Hong Kong to persist, supporting economic recovery efforts[40] - The group is optimistic about the economic recovery in 2021, contingent on the effectiveness and distribution of COVID-19 vaccines[40] Corporate Governance - The company has adhered to the corporate governance code as per the Stock Exchange's listing rules, with exceptions regarding the roles of the Chairman and CEO being held by the same individual[50] - Non-executive directors do not have a specified term but must retire and seek re-election at the annual general meeting[50] - Each director is required to retire at least once every three years, although the Chairman and CEO are exempt from this rule[51] Employment and Expenses - The group employed a total of 171 staff in Hong Kong and the United States, with employee expenses reaching HKD 29.8 million for the first half of the fiscal year[43] Shareholder Actions - The group has not repurchased any shares during the first half of the fiscal year[48]
TAI CHEUNG HOLD(00088) - 2021 - 中期财报