Financial Performance - For the six months ended September 30, 2021, the Group's overall revenue was approximately RMB 66.3 million, representing a decrease of 33.0% compared to RMB 99.1 million for the same period in 2020[20]. - The Group achieved a gross profit of RMB 24.7 million for the six months ended September 30, 2021, compared to a gross loss of RMB 13.7 million for the same period in 2020[20]. - The net profit for the period was RMB 16.8 million, a significant improvement from a net loss of RMB 607.2 million for the same period in 2020[20]. - Revenue for the six months ended September 30, 2021, was RMB 66,345,000, a decrease of 33.1% compared to RMB 99,054,000 for the same period in 2020[122]. - Gross profit for the same period was RMB 24,697,000, compared to a gross loss of RMB 13,692,000 in 2020[122]. - Profit for the period was RMB 16,782,000, a substantial recovery from a loss of RMB 607,229,000 in the prior year[122]. - Total comprehensive income for the period, net of tax, was RMB 66,921,000, compared to a total comprehensive loss of RMB 645,752,000 in the previous year[124]. Revenue Sources - The decrease in revenue was mainly due to a 42.1% drop in property sales, amounting to a decrease of RMB31.5 million compared to the previous year[33]. - Property sales (excluding car parks) for the six months ended 30 September 2021 were RMB35.7 million, with an aggregate GFA of 5,315 sq.m.[29]. - The Group recognized sales from Guangze Tudors Palace and Guangze Red House Phase III amounting to RMB7.8 million and RMB15.7 million, respectively[32]. - Rental income decreased from RMB6.5 million for the six months ended September 30, 2020 to RMB6.3 million for the same period in 2021[35]. - The Group's property management service income decreased from RMB17.5 million for the six months ended September 30, 2020 to RMB16.6 million for the same period in 2021[35]. - Revenue from property development and management services was RMB 43,454,000, while property management service income was RMB 16,592,000[175]. Expenses and Costs - Selling and distribution expenses increased by RMB1.6 million to RMB4.5 million for the six months ended September 30, 2021, attributed to promotional activities for the Guangze Jiuxi Red House project[42]. - Administrative expenses rose by RMB1.8 million to RMB17.3 million, mainly due to an increase in average staff numbers leading to higher staff costs[42]. - Finance costs decreased by RMB32.4 million to RMB24.7 million, primarily due to a reversal of over-accrued interest expenses and a reduction in bank loan balances[47]. - The Group's total staff costs for the six months ended September 30, 2021, were approximately RMB 7.9 million, up from RMB 6.5 million for the same period in 2020[104]. Investment Properties - The fair value of the Group's investment properties decreased from RMB547.1 million at 31 March 2021 to RMB509.2 million at 30 September 2021[29]. - The fair value loss on investment properties was RMB46.6 million for the six months ended 30 September 2021, compared to a loss of RMB29.0 million in the same period of 2020[47]. - The fair value of investment properties decreased by RMB46.6 million as of September 30, 2021, compared to March 31, 2021, reflecting market conditions in Jilin Province[53]. Cash Flow and Liquidity - The Group recorded a net operating cash outflow of RMB 6.6 million for the six months ended September 30, 2021, compared to an outflow of RMB 206.1 million for the same period in 2020[84]. - The Group's cash and bank deposits amounted to approximately RMB 92.7 million, a decrease of approximately 21.4% compared to RMB 117.9 million as of March 31, 2021[77]. - The Group's net debt as of September 30, 2021, was RMB 1,379.3 million, compared to RMB 1,302.1 million as of March 31, 2021[83]. - The Group's current income tax related to Land Appreciation Tax (LAT) provision was RMB6.8 million, an increase from RMB4.7 million in the prior year, due to more commercial property units being delivered[47]. Market Conditions and Strategy - Domestic leisure travel saw a year-on-year growth of 39.1%, reaching 58.5% of pre-pandemic levels during the first three quarters of 2021[15]. - The Changbaishan region experienced a year-on-year growth of 73.9%, achieving 41% of pre-pandemic travel levels[15]. - The Group is cautiously advancing its property development projects to safeguard cash flow and liquidity amid increasing regulatory measures from the PRC government[19]. - The management is re-evaluating the Fusong Property Project, considering potential divestment and government re-purchase strategies[16]. - The Group's strategy includes a thorough deliberation on the cultural tourism project in Changbaishan to adapt to changing market conditions[16]. Future Outlook - The Group anticipates generating adequate cash flows to maintain its operations in the foreseeable future[145]. - Continuous financial support from the Group's controlling shareholder has been confirmed, ensuring that repayment of loans will not be demanded within the next twelve months[147]. - The Group's financial statements have been prepared on a going concern basis, with a cash flow forecast covering up to 30 September 2022[148].
华音国际控股(00989) - 2022 - 中期财报