Financial Performance - The Group reported an unaudited consolidated profit attributable to shareholders of approximately HK$81,785,000 for the six months ended 30 September 2021, compared to a loss of approximately HK$64,552,000 for the corresponding period in 2020[12]. - Basic and diluted earnings per share for the Period were approximately 8.78 HK cents and 6.66 HK cents respectively, compared to a basic and diluted loss per share of approximately 6.93 HK cents for the 2020 Period[13]. - The increase in profit was mainly due to an increase in gain on change in fair value of investment properties and a write-back on properties held for development for sale[12]. - The Group's financial performance reflects a significant recovery compared to the previous year's loss, highlighting improved operational efficiency[12]. - As of September 30, 2021, the Group's total rental and management fee income increased by approximately 4.2% to approximately HK$31,268,000 compared to HK$30,008,000 in the previous period[41][44]. - The Group recorded property rental income in Hong Kong of approximately HK$16,949,000, representing a decrease of approximately 2.1% compared to HK$17,318,000 in the previous period[42][45]. - In Singapore, the Group's property rental income increased by approximately 3.2% to approximately HK$1,396,000 from HK$1,353,000 in the previous period[43][46]. - The Group recorded a fair value loss in securities investments of approximately HK$15,565,000, compared to a loss of approximately HK$4,625,000 in the previous period[50][53]. - Finance costs decreased by approximately HK$5,904,000 or approximately 36.9% to approximately HK$10,109,000 for the period, down from approximately HK$16,013,000 in the 2020 period[122]. Business Operations - The Group's core businesses include property development and property investment, which are key profit drivers[19]. - The Group owns a site at Nos. 11, 13 and 15 Matheson Street, with a total area of approximately 2,857 square feet, expected to provide a gross floor area of approximately 42,854 square feet upon completion in April 2022[21]. - The Group plans to redevelop the Wing Cheong Factory Building, located at No. 121 King Lam Street, with a site area of approximately 5,483 square feet, and the project is expected to complete in December 2023[29]. - The construction of the superstructure for the Matheson Street project is ongoing, indicating active development efforts[21]. - The total site area for the combined Davis Street and Catchick Street project is approximately 7,122 square feet, expected to complete in March 2025[32][33]. - The Group plans to redevelop the Fung Wah Factorial Building, with a total site area of approximately 9,203 square feet, expected to complete in August 2025[38][39]. - The Group's investment in securities and loan financing business also contributes to its overall performance[19]. - The Group's total carrying amount of properties in Huzhou City, PRC, was approximately HK$375,090,000 as of September 30, 2021, up from approximately HK$359,107,000 as of March 31, 2021[49][52]. Shareholder Information - The Board does not recommend the payment of an interim dividend for the Period, consistent with the 2020 Period[14]. - The share offer was declared unconditional on April 7, 2021, with valid acceptances received for 393,683,175 shares, representing approximately 42.27% of the issued shares[74]. - As of September 30, 2021, the total number of issued ordinary shares was 931,458,010, with a nominal value of HK$0.20 per share[109]. - Ace Winner Investment Limited holds 484,538,175 ordinary shares, representing approximately 52.01% of the total issued shares[147]. - Goodco Development Limited has a total of 550,565,295 shares (161,445,295 ordinary shares and 389,120,000 underlying shares), accounting for approximately 59.10% of the total issued shares[147]. - Easyknit Properties Holdings Limited also holds 550,565,295 shares, which is 59.10% of the total issued shares[147]. - Easyknit International Holdings Limited possesses 27,000,000 ordinary shares, making up about 2.90% of the total issued shares[150]. - Winterbotham Holdings Limited has a total of 1,085,490,840 shares (696,370,840 ordinary shares and 389,120,000 underlying shares), representing approximately 116.53% of the total issued shares[153]. - Hu Rong, a beneficial owner, holds 47,030,000 ordinary shares, which is about 5.05% of the total issued shares[153]. Financial Position - As of September 30, 2021, the Group's total assets amounted to approximately HK$4,716,620,000, an increase from approximately HK$4,613,337,000 as of March 31, 2021[64]. - The Group's total bank borrowings as of September 30, 2021, were approximately HK$1,555,249,000, compared to approximately HK$1,514,933,000 as of March 31, 2021[65]. - The Group's gearing ratio was approximately 0.5 as of September 30, 2021, consistent with the ratio as of March 31, 2021[65]. - The Group's current ratio was approximately 4.9 as of September 30, 2021, down from approximately 5.5 as of March 31, 2021[65]. - The Group's cash and bank balances decreased to approximately HK$44,295,000 as of September 30, 2021, from approximately HK$112,260,000 as of March 31, 2021[64]. - The outstanding principal amount of loans receivable as of September 30, 2021, was approximately HK$107,806,000, down from approximately HK$130,179,000 as of March 31, 2021[61]. - Interest income from loan financing business decreased by approximately 54.5%, amounting to HK$5,168,000 compared to HK$11,349,000 in the 2020 period[61]. - The segment loss for loan financing business was approximately HK$21,177,000 for the period, contrasting with a segment profit of approximately HK$8,324,000 in the 2020 period[61]. Corporate Governance - The Company has confirmed compliance with the Model Code for Securities Transactions by Directors throughout the period[180]. - The company has fully complied with the Corporate Governance Code during the reporting period, except for certain disclosed deviations[169]. - The roles of chairman and chief executive are held by the same individual, which the company deems efficient for effective planning and execution of long-term strategies[171]. - The group does not have an internal audit function, but the board reviewed the effectiveness of risk management and internal control systems, finding them adequate[175]. - The Audit Committee consists of three independent non-executive Directors, who reviewed the unaudited interim condensed consolidated financial statements for the period[186]. - The Group's auditor, Deloitte Touche Tohmatsu, reviewed the interim financial information in accordance with Hong Kong Standard on Review Engagements 2410[186]. Future Outlook - The Group remains cautiously optimistic about the prospects of the property and securities markets in Hong Kong despite global economic uncertainties[135]. - The Company will continue to seek appropriate investment and divestment opportunities to enhance its property portfolio and long-term value[136]. - The Group will focus on its principal businesses while exploring potential projects to provide steady returns for shareholders[134]. - The Group plans to utilize the unutilized proceeds from the rights issue according to the intended uses disclosed in the prospectus[133]. Employee Information - As of September 30, 2021, the Group had 63 employees, an increase from 59 employees as of September 30, 2020[190]. - Staff costs for the period amounted to approximately HK$12,749,000, compared to approximately HK$11,366,000 for the same period in 2020, reflecting an increase of about 12.1%[190]. - The Group has adopted a share option scheme to motivate valued employees[190]. Miscellaneous - The Group had no significant contingent liabilities as of September 30, 2021[108]. - The Group did not have significant exposure to foreign exchange fluctuations during the period, considering the risk to be minimal[107]. - There are no significant events affecting the Group since September 30, 2021, up to the date of this interim report[191]. - The Board expresses gratitude to the management team and employees for their hard work and dedication, which are vital for the Company's growth[198]. - The Group's forward-looking statements are based on current beliefs and are subject to risks and uncertainties[197].
高山企业(00616) - 2022 - 中期财报