Financial Performance - The group's unaudited consolidated revenue for the six months ended September 30, 2021, was HKD 610 million, down from HKD 750 million in 2020, primarily due to a decrease in confirmed property sales from projects in mainland China[18]. - Shareholders' net profit for the same period was HKD 58 million, compared to HKD 53 million in 2020. Excluding fair value losses on investment properties, the adjusted net profit was HKD 71 million, up from HKD 52 million in 2020[18]. - Basic earnings per share increased to HKD 0.11 from HKD 0.10 in 2020[18]. - Revenue for the six months ended September 30, 2021, was HKD 609,576,000, a decrease of 18.7% compared to HKD 750,077,000 for the same period in 2020[82]. - Gross profit increased to HKD 350,798,000, up 6.4% from HKD 328,480,000 year-on-year[82]. - Net profit for the period was HKD 96,257,000, representing a 15.5% increase from HKD 83,641,000 in the previous year[85]. - The profit before tax for the group for the six months ended September 30, 2021, was impacted by depreciation of property, plant, and equipment amounting to HKD 3,262,000[134]. - The total tax expense for the six months ended September 30, 2021, was HKD 93,888,000, down from HKD 138,420,000 in the previous year[135]. Property Development - The group's property development revenue for the six months was HKD 377 million, down from HKD 609 million in 2020, with a pre-tax profit of HKD 185 million compared to HKD 204 million in 2020[21]. - As of September 30, 2021, the group had contracted but unrecognized property sales amounting to RMB 552 million, expected to be recognized in the second half of the fiscal year 2021/2022 and the next fiscal year[24]. - The group is expanding its property development projects in mainland China, including the Yayao Oasis project in Nanhai and a mixed-use development in Yuexiu District, Guangzhou[24][25]. - Construction for the mixed-use project in Yuexiu District has commenced in the third quarter of 2021, with a total floor area of approximately 77,000 square meters[25]. - The company expects to commence pre-sales of a redevelopment project in Dongguan by the end of this year[36]. Property Investment - Property investment revenue for the six months ended September 30, 2021, was HKD 213 million, up from HKD 128 million in the same period of 2020, with a pre-tax profit of HKD 68 million compared to HKD 61 million in 2020[28]. - The average occupancy rate of completed investment properties in Hong Kong reached 85% for the six months ended September 30, 2021, compared to 68% in 2020[29]. - The average occupancy rate of completed investment properties in mainland China was 67% for the six months ended September 30, 2021, up from 63% in 2020[32]. - The valuation of the investment property portfolio as of September 30, 2021, was HKD 15.315 billion, an increase from HKD 15.207 billion as of March 31, 2021[33]. - The company reported a net loss from investment properties of HKD 41,099,000 compared to a gain of HKD 11,474,000 in the previous year[82]. Financial Position - The total equity attributable to shareholders as of September 30, 2021, was HKD 8,345 million, compared to HKD 8,234 million as of March 31, 2021[18]. - As of September 30, 2021, the total interest-bearing debt of the group was approximately HKD 6,245,000,000, a decrease from HKD 6,477,000,000 as of March 31, 2021[73]. - Approximately 38% of the total debt was classified as current liabilities, compared to 25% as of March 31, 2021[73]. - The group's cash and bank balances totaled approximately HKD 1,736,000,000 as of September 30, 2021, down from HKD 2,000,000,000 as of March 31, 2021[74]. - The net interest-bearing debt was approximately HKD 4,509,000,000, with a debt-to-equity ratio of 36% as of September 30, 2021, unchanged from March 31, 2021[75]. Corporate Governance and Strategy - The company is focusing on risk management and enhancing operational capabilities rather than aggressive growth strategies in the current market environment[43]. - The company plans to participate in urban development and infrastructure projects initiated by the Hong Kong government to alleviate housing shortages[44]. - The chairman expressed cautious optimism regarding the long-term growth prospects of the local economy[44]. - The company has established a nomination committee as of December 8, 2021, to comply with corporate governance codes[70]. Market Conditions and Outlook - The company anticipates that Hong Kong and China will resume cross-border travel in 2022, contributing to economic recovery despite ongoing risks from virus variants[43]. - The company expects to benefit from the opportunities arising from China's 14th Five-Year Plan, positioning Hong Kong as an international financial, transportation, and trade center[44]. - The company is monitoring geopolitical tensions between the US and China, which may impact market conditions[43]. Other Financial Information - The company has not purchased, sold, or redeemed any of its listed securities during the six months ended September 30, 2021[54]. - A loan agreement was established for HKD 1,500,000,000 with a syndicate to refinance an existing loan balance of HKD 440,000,000 and meet general corporate funding needs[55]. - A domestic loan agreement was signed for a maximum principal of RMB 450,000,000, primarily for refinancing existing bank financing and general operating funds[57]. - A loan agreement for HKD 800,000,000 was signed to refinance an outstanding balance of HKD 500,000,000 and for general corporate funding needs[60]. - The company has not made any payments to the contractor for development costs as of September 30, 2021[62].
建业实业(00216) - 2022 - 中期财报