Financial Performance - Total revenue for the six months ended June 30, 2020, was HKD 197,370,000, a decrease of 67.4% compared to HKD 604,790,000 in the same period of 2019[8] - Profit before tax for the period was HKD 40,660,000, a significant decline of 89.7% from HKD 392,948,000 in the previous year[8] - Net profit for the six months was HKD 21,231,000, down 93.1% from HKD 310,382,000 in the same period last year[9] - Basic earnings per share decreased to HKD 0.05, compared to HKD 0.79 in the previous year, reflecting a decline of 93.7%[8] - The company reported a total comprehensive loss of HKD 142,635,000 for the period, compared to a comprehensive income of HKD 292,904,000 in the previous year[9] - The group recorded sales revenue of approximately HKD 143.9 million for the period ended June 30, 2020, with 55 residential units and 164 parking spaces sold[77] - The group's unaudited consolidated profit for the six months ended June 30, 2020, was approximately HKD 21,200,000, a decrease of about HKD 289,200,000 compared to HKD 310,400,000 for the same period in 2019[69] Revenue Breakdown - Total revenue for the six months ended June 30, 2020, was HKD 389,148,000, a decrease of 52.6% compared to HKD 821,023,000 for the same period in 2019[18] - Revenue from property development was HKD 141,769,000, down 49.6% from HKD 281,211,000 in the previous year[18] - Revenue from interior decoration services dropped significantly to HKD 2,170,000 from HKD 270,802,000, reflecting a decline of 99.2%[18] - Revenue from hotel operations increased to HKD 13,509,000, up 90.5% from HKD 7,077,000 in the previous year[18] - Revenue from property investment was HKD 156,620,000, down 9.7% from HKD 173,424,000[18] - Customer revenue accounted for HKD 156,620,000, up from HKD 143,939,000, indicating an increase of about 8.8% year-on-year[26] Expenses and Costs - Direct costs for the period were HKD 389,148,000, down from HKD 821,023,000, indicating a reduction of 52.7%[8] - Operating expenses decreased to HKD (65,621,000) from HKD (79,557,000), reflecting a reduction of approximately 17.5%[26] - Employee costs, including director remuneration, increased to HKD 69,526,000 from HKD 62,658,000, reflecting a rise of about 13.9% year-on-year[37] - The financial costs incurred were HKD (17,739,000), which is a slight increase from HKD (17,739,000) in the previous period[28] Assets and Liabilities - As of June 30, 2020, non-current assets totaled HKD 10,914,425, a decrease of 1.83% from HKD 11,118,790 as of December 31, 2019[10] - Current assets amounted to HKD 3,558,559, down 5.53% from HKD 3,766,254 at the end of 2019[10] - Total liabilities decreased to HKD 12,170,323 from HKD 12,470,220, reflecting a reduction of 2.41%[11] - The total equity attributable to shareholders decreased to HKD 12,108,525 from HKD 12,394,035, a decline of 2.31%[11] - The company’s borrowings due within one year were HKD 474,591, slightly down from HKD 491,350 at the end of 2019[11] Cash Flow - The net cash generated from operating activities was HKD 25,499, a significant improvement compared to a cash outflow of HKD 605,902 in the same period of 2019[14] - The company reported a net cash outflow of HKD 166,884 for the six months ended June 30, 2020, compared to HKD 772,682 in the same period of 2019[14] - The company’s bank deposits and cash at the end of the period were HKD 1,864,136, an increase from HKD 1,590,100 at the end of 2019[14] Dividends - The company declared an interim cash dividend of HKD 0.15 per share, with the ex-dividend date set for August 28, 2020[7] - The company declared an interim dividend of HKD 0.15 per share for 2020, down from HKD 0.22 per share in 2019, representing a decrease of approximately 31.8%[40] Operational Highlights - The overall occupancy rate of the group's main investment properties was maintained at 75% as of June 30, 2020[69] - The company aims to improve the occupancy rate of its Shanghai office despite the adverse economic impacts of the pandemic[75] - The group’s investment in warehouses and factories in Japan and Australia maintained a 100% occupancy rate, generating stable rental income of approximately HKD 10.5 million[82] Corporate Governance - The company has complied with the corporate governance code, except for the roles of the Chairman and Managing Director not being separated, which the board believes is in the best interest of the company[90] - There were no purchases, sales, or redemptions of the company's shares during the six-month period ending June 30, 2020[93] Future Outlook - The management anticipates an additional sales revenue of approximately HKD 1.2 billion from unsold properties under current market conditions[77] - The renovation of the Chuang Ye Plaza is expected to take 18 months, with an estimated cost of HKD 140,000,000 funded by internal resources[73]
廖创兴企业(00194) - 2020 - 中期财报