WING ON CO(00289) - 2019 - 中期财报

Financial Performance - The group's revenue decreased by 6.9% to HKD 704.4 million for the six months ended June 30, 2019, compared to HKD 756.6 million in 2018, primarily due to a decline in department store sales [7]. - Profit attributable to shareholders fell by 28.4% to HKD 575.8 million, down from HKD 804.4 million in 2018, mainly due to a decrease in net valuation gains from investment properties [7]. - Basic earnings per share decreased by 28.4% to HKD 196.1 cents, while the basic earnings per share excluding net valuation gains increased by 37.7% to HKD 106.2 cents [7]. - The net profit for the period was HKD 576.1 million, down from HKD 804.9 million in 2018, indicating a decline of about 28.4% [25]. - The profit before tax decreased to HKD 575,767,000 for the six months ended June 30, 2019, compared to HKD 804,404,000 for the same period in 2018, representing a decline of approximately 28.4% [68]. - The net profit for the six months ended June 30, 2019, was HKD 575,767, compared to HKD 564,243 for the same period in 2018, indicating a growth of about 2.7% [30]. Dividends and Shareholder Returns - The board declared an interim dividend of HKD 38 cents per share, totaling HKD 111,516,000, compared to HKD 28 cents per share totaling HKD 82,288,000 in 2018 [7]. - The interim dividend declared for the six months ended June 30, 2019, was HKD 111,516,000, compared to HKD 82,288,000 for the same period in 2018, marking an increase of around 35.5% [82]. - The company declared dividends amounting to HKD 82,278,000 during the period, reflecting its commitment to returning value to shareholders [35]. Assets and Liabilities - As of June 30, 2019, the group's total equity was HKD 19,517.8 million, an increase of 2.3% from HKD 19,086.5 million as of December 31, 2018 [8]. - Total assets as of June 30, 2019, amounted to HKD 20,403,584, an increase from HKD 19,978,144 as of December 31, 2018, representing a growth of approximately 2.1% [28]. - The company's liabilities decreased slightly, with total current liabilities at HKD 569,723 compared to HKD 490,529, indicating a rise of approximately 16.1% [27]. - The total liabilities increased to HKD 1,422,597,000 from HKD 1,355,566,000, representing a rise of 4.9% [63]. - The total amount of minimum future lease income receivable was HKD 1,268,364,000 as of June 30, 2019, slightly down from HKD 1,296,582,000 as of December 31, 2018 [74]. Cash Flow and Liquidity - The group's cash and listed securities amounted to approximately HKD 3,590.9 million, providing sufficient liquidity for current capital commitments and operational needs [8]. - Cash generated from operating activities for the six months ended June 30, 2019, was HKD 248,714,000, compared to HKD 89,325,000 for the same period in 2018, representing a significant increase [38]. - The net cash used in financing activities was HKD (160,582,000) for the six months ended June 30, 2019, compared to HKD (221,753,000) in the previous year, indicating improved cash flow management [38]. - Cash and cash equivalents as of June 30, 2019, were HKD 3,001,013,000, up from HKD 2,827,500, reflecting an increase of about 6.1% [27]. Investment Properties - Investment property income increased by 12.8% to HKD 254.5 million, with commercial property income in Hong Kong rising by 5.9% to HKD 182.6 million [14]. - The overall occupancy rate for commercial properties in Hong Kong rose to approximately 99% from 95% in 2018 [14]. - The group’s investment properties in Hong Kong and Australia are expected to continue providing stable rental income [19]. - The net revaluation gain from investment properties was HKD 266,731,000 for the six months ended June 30, 2019, down from HKD 577,116,000 in 2018, a decrease of approximately 53.8% [73]. Market Conditions and Outlook - The group expects challenging conditions for its department store business in the second half of the year due to increased social unrest in Hong Kong [19]. - The group has a strong financial position and a loyal customer base in the local market, which it aims to leverage for continued service quality [19]. Accounting Standards and Changes - The company adopted the modified retrospective approach for HKFRS 16 from January 1, 2019, with no restatement of comparative information [28]. - The company adopted HKFRS 16 for the first time on January 1, 2019, which introduced a single accounting model for lessees, impacting the financial statements [41]. - The total liabilities increased by HKD 25,303,000 in current liabilities due to the recognition of lease liabilities [51]. Shareholder Information - Major shareholder Wing On Corporate Management (BVI) Limited holds 180,545,138 shares, representing 61.522% of the voting rights [113]. - Major shareholder Kee Wai Investment Company (BVI) Limited also holds 180,545,138 shares, accounting for 61.522% of the voting rights [113]. - The total equity held by Dr. Kuo Chi-Pao is 1,508,298 shares, which is 0.514% of the issued voting shares [107].