Financial Performance - The group reported revenue of HKD 92,000,000 for the six months ended December 31, 2020, compared to HKD 88,939,000 for the same period in 2019, representing a growth of 2.4%[9] - Gross profit for the period was HKD 51,921,000, down from HKD 54,985,000 in the previous year, indicating a decrease of 5.6%[9] - Other income increased significantly to HKD 15,981,000 from HKD 8,209,000, reflecting a growth of 94.1%[9] - The group incurred a loss before tax of HKD 385,883,000, compared to a profit of HKD 16,185,000 in the same period last year[9] - The net loss for the period was HKD 288,519,000, a significant decline from a profit of HKD 14,893,000 in the prior year[9] - Total comprehensive loss for the period amounted to HKD 156,483,000, compared to a loss of HKD 7,081,000 in the previous year[9] - Basic and diluted loss per share was HKD 8.10, compared to earnings of HKD 0.35 per share in the same period last year[14] - The group incurred a loss of HKD 288,519,000 for the six months ended December 31, 2020, compared to a profit of HKD 14,893,000 for the same period in 2019[33] - The total financial expenses for the six months ended December 31, 2020, were HKD 30,896,000, an increase from HKD 27,012,000 in the previous year, representing a rise of about 10.6%[36] Assets and Liabilities - Non-current assets increased to HKD 2,493,055 thousand as of December 31, 2020, compared to HKD 2,688,331 thousand as of June 30, 2020, reflecting a decrease of approximately 7.3%[15] - Current assets decreased to HKD 402,241 thousand from HKD 457,544 thousand, a decline of about 12.1%[15] - Total equity decreased to HKD 1,586,381 thousand from HKD 1,748,402 thousand, representing a reduction of approximately 9.2%[17] - Cash and cash equivalents decreased to HKD 352,311 thousand from HKD 419,095 thousand, a decrease of around 15.9%[21] - Total liabilities decreased to HKD 1,131,959 thousand from HKD 1,230,558 thousand, a decrease of about 8%[17] - The company’s total assets less current liabilities amounted to HKD 2,718,340 thousand, down from HKD 2,978,960 thousand, a decline of about 8.7%[17] - The total debt ratio as of December 31, 2020, was approximately 56.6%, an increase from 52.6% as of June 30, 2020, indicating a rise in leverage[105] Cash Flow - Net cash generated from operating activities was HKD 33,797 thousand, significantly lower than HKD 278,137 thousand in the same period last year, indicating a decline of approximately 87.8%[21] - The company’s cash flow from financing activities showed a net outflow of HKD 125,402 thousand, contrasting with a net inflow of HKD 112,453 thousand in the previous year[21] - The group’s cash and bank deposits as of December 31, 2020, were approximately HKD 352,311,000, down from HKD 419,095,000 as of June 30, 2020, reflecting a decrease of about 15.9%[104] - The group has a total borrowing amount of approximately HKD 864,050,000 as of December 31, 2020, slightly down from HKD 874,523,000 as of June 30, 2020, indicating a reduction of about 1.7%[106] Revenue Sources - Rental income from property leasing was HKD 37,309,000 for the six months ended December 31, 2020, up from HKD 35,555,000 in the previous year, indicating an increase of about 4.9%[29] - Property management fee income was HKD 53,513,000, compared to HKD 51,847,000 in the prior period, reflecting a growth of approximately 3.2%[29] - The group did not generate any revenue from its biotechnology segment during the reporting period[31] - The group had a single tenant contributing over 10% of total revenue, with total revenue from this tenant amounting to HKD 16,087,000, compared to HKD 14,058,000 in the previous year[28] Investment Properties - The company’s investment properties were valued at HKD 2,432,795 thousand as of December 31, 2020, down from HKD 2,637,363 thousand, reflecting a decrease of approximately 7.7%[15] - The fair value of investment properties decreased to HKD 2,432,795,000 as of December 31, 2020, down from HKD 2,806,818,000 as of June 30, 2020, reflecting a loss of HKD 403,000,000 due to fair value changes[48] - The fair value loss of investment properties was approximately HKD 403,000,000, reflecting the impact of the COVID-19 pandemic on rental growth[93] Corporate Governance - The company adheres to the corporate governance code as per the Hong Kong Stock Exchange's listing rules, ensuring accountability and transparency[128] - The audit committee consists of four independent non-executive directors, responsible for reviewing financial reporting and risk management[130] Future Plans and Developments - The group plans to separate property holding and property operation businesses to streamline operations, establishing a new company with a 75% indirect ownership[97] - The anticipated annual production capacity of the newly established biotechnology subsidiary is approximately 2,000 kilograms of CBD for industrial use[83] - The group plans to continue investing additional resources to drive growth in property operations and the biotechnology market, particularly in Zhengzhou, which is seen as a strategic location due to its economic and demographic factors[102] - The group has received industrial hemp cultivation and trial production permits from Chinese regulatory authorities and is awaiting the industrial hemp production license to commence commercial production[98] - The group aims to enhance profitability by exploring new opportunities in property operations and biotechnology, while maintaining strict cost control measures[101] Shareholder Information - As of December 31, 2020, Mr. Chen Jin Dong holds 369,100,000 shares, representing 13.73% of the company's issued share capital[115] - Mr. Chen Jin Yan holds 597,280,000 shares, accounting for 22.21% of the company's issued share capital[116] - The company has a stock option plan effective from November 22, 2013, with 2,080,000 options held by each of Mr. Lin Ye and Mr. Yang Ze Qiang[125] - No shares or securities were purchased, sold, or redeemed by the company or its subsidiaries during the period[127] Other Information - No dividends were declared or proposed during the interim period[43] - There were no significant events to report after the reporting period[77] - The company reported a total remuneration of HKD 2,004,000 for directors and key management personnel, consistent with the previous year[75] - Capital expenditures related to property, plant, and equipment were HKD 429,000 for the six months ending December 31, 2020, down from HKD 1,494,000 for the previous period[72] - The depreciation of property, plant, and equipment amounted to HKD 789,000 for the six months ended December 31, 2020, down from HKD 1,368,000 in the prior period[42] - The group provided rental and operational support totaling approximately HKD 681,000 to certain tenants during the pandemic[84] - Administrative expenses were approximately HKD 17,503,000, accounting for about 19.0% of revenue, a decrease from 22.5% in 2019[90]
锦艺集团控股(00565) - 2021 - 中期财报