WING ON CO(HK:00289)2021-09-20 03:06Revenue Performance - The group's revenue decreased by 8.2% to HKD 560.9 million for the six months ended June 30, 2021, compared to HKD 611.3 million in 2020, primarily due to a decline in department store sales[9]. - The total reported segment revenue for the first half of 2021 was HKD 615,610,000, a decrease of 8.3% from HKD 671,067,000 in the same period of 2020[63]. - The company's retail business generated sales of HKD 320,783,000, a decrease of 12.7% from HKD 367,773,000 in the previous year[57]. Profitability - The attributable profit for the period was HKD 399.6 million, a significant recovery from a loss of HKD 337.8 million in 2020, mainly due to a net gain of HKD 168.6 million from investment property valuations[9]. - Operating profit increased to HKD 308.7 million from HKD 142.3 million in the previous year, marking a substantial improvement[31]. - The net profit for the period was HKD 399.7 million, a turnaround from a loss of HKD 337.5 million in 2020[31]. - The overall comprehensive income for the period was HKD 331.1 million, compared to a loss of HKD 409.0 million in 2020[34]. Earnings Per Share - Basic earnings per share increased by 197.4% to HKD 0.922, compared to HKD 0.310 in 2020, excluding the net gain from investment property valuations[9]. - The company reported a consolidated profit attributable to shareholders of HKD 399,578,000 for the six months ended June 30, 2021, compared to a loss of HKD 337,811,000 for the same period in 2020, resulting in a basic earnings per share of HKD 136.9 compared to a loss of HKD 115.6[75]. Dividends - The interim dividend declared is HKD 0.34 per share, totaling HKD 99,165,000, compared to HKD 0.11 per share and HKD 32,120,000 in 2020[10]. - The company declared a final dividend of HKD 0.72 per share for the six months ended June 30, 2021, compared to HKD 0.65 per share in 2020, resulting in a total dividend payment of HKD 210,019,000 for 2021 versus HKD 189,801,000 for 2020, representing an increase of approximately 10.7%[90]. Assets and Liabilities - As of June 30, 2021, the group's total equity was HKD 19,271.3 million, a 0.6% increase from December 31, 2020[11]. - Total assets decreased slightly to HKD 20,301,351 thousand as of June 30, 2021, compared to HKD 20,186,786 thousand at the end of 2020, reflecting a 0.57% increase[39]. - The company's total liabilities decreased to HKD 997,866 thousand from HKD 1,000,735 thousand, a reduction of 0.19%[39]. - Total segment assets increased to HKD 16,122,298,000 as of June 30, 2021, compared to HKD 16,070,018,000 at the end of 2020, representing a growth of 0.3%[68]. Cash Flow and Liquidity - The group's cash and listed securities amounted to approximately HKD 3,598.2 million, providing sufficient liquidity for current obligations and operational needs[11]. - The net cash generated from operating activities was HKD 73,062,000, significantly up from HKD 10,983,000 in the same period last year[51]. - Cash and cash equivalents rose to HKD 2,671,638 thousand from HKD 2,570,282 thousand, marking an increase of 3.93%[39]. Investment Properties - Property investment income for the six months ended June 30, 2021, was HKD 239.8 million, a decrease of 5.9% from HKD 254.8 million in 2020[19]. - The net gain from investment property valuations was HKD 168,631,000, a recovery from a loss of HKD 427,473,000 in the previous year[66]. - Total income from investment properties for the six months ended June 30, 2021, included a net gain of HKD 168,631,000, a significant recovery from a net loss of HKD 427,473,000 in the previous year[82]. Market Outlook - The group is cautiously optimistic about local consumption recovery due to improvements in the labor market and government initiatives, including a HKD 1.8 million lottery for vaccinated customers[24]. - The overall occupancy rate of commercial investment properties in Hong Kong dropped to 94% from 98% in 2020, primarily due to a decrease in rental rates during new lease signings and renewals[19]. Corporate Governance - The company complied with the corporate governance code as per the Hong Kong Stock Exchange during the six months ended June 30, 2021[113]. - The major shareholder, Wing On Corporate Management (BVI) Limited, holds 61.902% of the issued share capital, equivalent to 180,545,138 shares[124].