Financial Performance - For the six months ended June 30, 2021, the rental income from investment properties was approximately HKD 18.3 million, an increase from HKD 17.5 million for the same period in 2020[7]. - The company's revenue for the six months ended June 30, 2021, was approximately HKD 18.3 million, an increase of about 4.6% compared to approximately HKD 17.5 million for the same period last year[39]. - Other income for the same period was approximately HKD 3.7 million, up from approximately HKD 1.6 million, primarily due to increased bank interest income and net foreign exchange gains of about HKD 1.6 million[40]. - The group reported a net loss attributable to owners of approximately HKD 77.7 million for the six months ended June 30, 2021, compared to a net loss of approximately HKD 107.6 million for the same period in 2020, representing a decrease in loss of about 27.8%[52]. - The total comprehensive loss for the period was HKD 79,360,000, down from HKD 110,867,000 in the same period last year[95]. - Basic and diluted loss per share for the period was HKD 6.90, an improvement from HKD 9.57 in the previous year[95]. Property and Investment Performance - The total revenue contribution from the core property, Jardine Center, accounted for approximately 80.7% of the group's total revenue for the interim period[7]. - The occupancy rate of the investment property portfolio reached approximately 96.8% as of June 30, 2021, compared to 90.3% as of December 31, 2020[7]. - The commercial property market in Hong Kong experienced a moderate decline in rental and capital values during the interim period[7]. - The group's investment properties were revalued at HKD 1,845.6 million as of June 30, 2021, down from HKD 1,863.0 million as of December 31, 2020, reflecting a fair value loss of HKD 17.4 million during the interim period[14]. - The group pre-sold 209 residential units out of a total of 1,132 units in the Zhenjiang project, generating approximately RMB 247.0 million (approximately HKD 296.9 million) in proceeds, compared to RMB 125.3 million (approximately HKD 148.9 million) for 131 units as of December 31, 2020[21]. - The Zhenjiang project has a total planned gross floor area of approximately 160,000 square meters, including residential area of about 151,700 square meters and commercial area of about 3,900 square meters[19]. Economic and Market Conditions - The Hong Kong retail sector saw a year-on-year sales growth of 8.4% in the first half of 2021, contributing to improved leasing activity[7]. - The unemployment rate in Hong Kong decreased to 5.5% in the second quarter of 2021, reflecting gradual improvement in the job market[6]. - The Chinese economy recorded a year-on-year GDP growth of 12.7% in the first half of 2021, indicating a steady recovery despite complex domestic and international conditions[6]. Financial Position and Liabilities - As of June 30, 2021, the group had outstanding bank and other borrowings of approximately HKD 1,541.0 million, a decrease from approximately HKD 1,604.8 million as of December 31, 2020[55]. - The asset-liability ratio as of June 30, 2021, was approximately 74.5%, up from 71.3% as of December 31, 2020, indicating increased leverage[55]. - The group recorded a net current liability of approximately HKD 1,080.0 million as of June 30, 2021, compared to approximately HKD 1,019.1 million as of December 31, 2020, mainly due to a technical default on a financial covenant[56]. - The company received a default notice from Hang Seng Bank regarding a breach of financial covenants, specifically a requirement for consolidated tangible net worth to be above HKD 2 billion[81]. - The company has no known interests or short positions in its shares or related securities held by directors or key executives as of June 30, 2021[75]. Operational Efficiency and Cost Management - Employee costs decreased by 29.9% to approximately HKD 5.4 million from approximately HKD 7.7 million in the previous year, mainly due to the departure of several senior management personnel[41]. - Other operating expenses were approximately HKD 10.1 million, a decrease of 26.8% from approximately HKD 13.8 million in the previous year[42]. - The fair value loss on investment properties was HKD 17,400,000, significantly reduced from HKD 42,200,000 in the previous year[95]. - Operating loss decreased to HKD 15,185,000 from HKD 46,284,000 year-on-year, indicating improved operational efficiency[95]. Future Plans and Strategies - The group continues to focus on enhancing the resilience of its core property leasing business in Causeway Bay to ensure long-term competitiveness[7]. - The group aims to optimize its diversified tenant mix within its investment properties to adapt to market challenges[7]. - The company plans to continue optimizing its diversified tenant portfolio and strengthen relationships with tenants amid ongoing economic challenges[35]. - The company will closely monitor economic conditions and adjust rental policies accordingly to minimize impacts on its operations[38]. - The group plans to sell all residential and commercial units in the Zhenjiang project[19]. Shareholder and Governance Information - The major shareholder, China Cinda (Hong Kong) Asset Management Co., Ltd., holds 843,585,747 shares, representing approximately 74.98% of the company's issued share capital[76]. - The company did not recommend any interim dividend for the six months ended June 30, 2021, consistent with the previous year[59]. - The company has adopted the latest corporate governance code as a guideline for its governance practices[88].
中昌国际控股(00859) - 2021 - 中期财报