Financial Performance - The company reported a profit attributable to equity holders of HKD 767.9 million for the six months ended September 30, 2021, compared to HKD 423.4 million in the same period of 2020, representing a significant increase [49]. - Earnings per share increased to HKD 0.3269, up from HKD 0.1803 in the previous year [52]. - The group reported a loss of HKD 15,000,000 from fair value changes in investment properties in Malaysia, compared to a loss of HKD 137,900,000 in 2020 [61]. - For the six months ended September 30, 2021, the operating profit was HKD 930,157,000, compared to HKD 419,353,000 for the same period in 2020, representing a growth of 121% [172]. - The profit attributable to equity holders for the same period was HKD 767,921,000, an increase from HKD 423,417,000 in 2020, reflecting an increase of 81.5% [172]. - The total comprehensive income for the period was HKD 798,099,000, compared to HKD 580,699,000 in the previous year, indicating a growth of 37.5% [176]. Revenue and Sales - The group's total revenue for the period was approximately HKD 145.6 million, a decrease of 91.4% from HKD 1,683.3 million in 2020, primarily due to reduced property sales [56]. - Revenue from property sales decreased by approximately HKD 1,545.9 million to about HKD 71.5 million, as most completed properties in Tuen Mun were delivered to buyers in the previous year [57]. - Rental and management fee income decreased by 53.3% to approximately HKD 12.7 million, down from HKD 27.2 million in 2020, due to the sale of UK investment properties [57]. - Property sales accounted for HKD 71,477,000, down from HKD 1,617,350,000 year-over-year [200]. - Rental income and management fees decreased to HKD 12,775,000 from HKD 27,152,000 [200]. Cash and Financial Position - The group's cash net position increased by approximately HKD 1.4 billion following the sale of a property project in Guangzhou, significantly strengthening its financial position [49]. - The total cash reserves, including bond investments, amounted to HKD 3.0191 billion, with bank borrowings at HKD 1.5921 billion [51]. - The group's cash and bank balances amounted to HKD 2,026,400,000, an increase from HKD 679,000,000 as of March 31, 2021 [147]. - The group's net cash position was HKD 1,427,000,000 as of September 30, 2021, compared to HKD 82,700,000 as of March 31, 2021 [147]. - The company had cash and cash equivalents of HKD 2,026,364,000 at the end of the reporting period, compared to HKD 991,763,000 at the end of the previous year [183]. Investments and Assets - The company holds approximately 19.45% equity in Beihai Group and 0.6% in Zhongqi Group, with a total investment value of about HKD 151,000,000 as of September 30, 2021 [93]. - The company has investments valued at HKD 1,101,700,000, with HKD 992,700,000 allocated to high-yield bonds [94]. - The total bond investments held by the group were HKD 992,700,000, down from HKD 1,220,000,000 as of March 31, 2021 [147]. - The company reported a net exchange difference of HKD 54,075,000 from the share of an associate's exchange reserve during the period [187]. - As of September 30, 2021, total assets amounted to HKD 6,591,693,000, up from HKD 5,700,156,000 as of March 31, 2021, showing an increase of 15.6% [180]. Dividends and Shareholder Returns - The company declared an interim dividend of HKD 0.02 per share [53]. - The interim dividend declared is HKD 0.02 per share, an increase from HKD 0.015 per share in 2020, to be paid to shareholders on the register as of December 28, 2021 [62]. - The company declared dividends amounting to HKD 35,233,000 during the period [187]. Operational Developments - The company plans to review its sales and marketing strategies to enhance brand establishment and customer service [90]. - The company is pursuing the remaining land use rights and has begun site leveling work for some of the acquired land [90]. - The company has begun construction work on some of the acquired land after receiving government approval for a delay until January 2022 [90]. - The company has obtained land use rights for approximately 143 acres, allowing for the construction of about 22,569 burial plots in phases two and three [90]. Market Conditions and Risks - The ongoing COVID-19 pandemic has introduced increased uncertainty in property market valuations in Hong Kong and China [197]. - The group continues to evaluate accounting estimates and judgments based on past experiences and future expectations, considering the impact of the COVID-19 pandemic [199]. - The fair value of financial assets and liabilities is considered to be similar to their carrying amounts, with no significant changes noted in the economic environment affecting valuations [197]. Future Outlook - The group plans to closely monitor the bond market and will sell bond investments when suitable opportunities arise [143]. - The group will focus on property projects in Hong Kong and China, seeking new opportunities to expand land reserves for property development [149]. - The group aims to increase stable and recurring rental income by identifying suitable investment projects to expand its investment property portfolio [149]. - The group will pay special attention to the Guangdong-Hong Kong-Macao Greater Bay Area and cities along the Belt and Road Initiative [149].
庄士中国(00298) - 2022 - 中期财报