Financial Performance - The company reported consolidated revenue of HKD 14,980,000 for the six months ended June 30, 2021, representing an increase of approximately 27% compared to HKD 11,809,000 in the same period last year[8]. - The profit attributable to ordinary equity holders for the period was HKD 489,000, a significant improvement from a loss of HKD 1,767,000 in the previous year[8]. - Adjusted EBITDA for the period was HKD 4,071,000, compared to HKD 1,315,000 in the same period last year[9]. - The group recorded a pre-tax profit of HKD 2,152,000, improving from a loss of HKD 2,619,000 in the previous year[10]. - The net loss for the period was HKD 353,000, a reduction from a loss of HKD 4,674,000 in the previous year[10]. - Total comprehensive income for the period was HKD 26,260,000, compared to a total comprehensive loss of HKD 57,749,000 in 2020[60]. - The company reported a total comprehensive income of HKD 8,564,000 for the six months ended June 30, 2021, compared to a total comprehensive loss of HKD 17,797,000 for the same period in 2020, indicating a significant improvement[66]. - The company reported a basic earnings per share of HKD 0.07, recovering from a loss of HKD 0.27 per share in the previous year[58]. Assets and Liabilities - Cash and bank balances as of June 30, 2021, were HKD 82,093,000, down from HKD 86,407,000 as of December 31, 2020[11]. - The group had outstanding borrowings of HKD 79,029,000 as of June 30, 2021, slightly down from HKD 79,316,000 as of December 31, 2020[14]. - The total assets of the group were HKD 4,593,780,000 as of June 30, 2021, compared to HKD 4,564,165,000 as of December 31, 2020[15]. - The company maintained a low debt level, with total non-current liabilities of HKD 1,327,891,000, slightly increased from HKD 1,322,917,000 in the previous year[64]. - The net asset value increased to HKD 3,138,452,000 from HKD 3,112,192,000 in December 2020[64]. Investment Properties and Projects - The group has two investment properties located in Chongqing and Guangzhou, with a carrying value of HKD 421,080,000 and HKD 4,032,000,000 respectively as of June 30, 2021[16]. - The Guangzhou redevelopment project is planned to cover a total construction area of approximately 234,000 square meters, including a 22-story multifunctional commercial complex[31]. - The first phase of the Guangzhou redevelopment project is expected to be completed by Q4 2024, while the second phase is projected to finish by Q1 2026[32]. - The Chongqing property, located in a prime area, has a total construction area of approximately 49,400 square meters, primarily operating as a multi-level shopping center[25]. - The Guangzhou reconstruction project has a budgeted cost of approximately RMB 1.7 billion (HKD 2.04 billion), with the company and related parties bearing 25% and 75% of the total cost respectively[34]. Cash Flow and Financial Management - Operating cash flow for the six months ended June 30, 2021, was HKD 3,521,000, a decrease from HKD 14,049,000 in the previous year[68]. - The company had a net cash and cash equivalents balance of HKD 82,093,000 as of June 30, 2021, slightly down from HKD 83,086,000 at the end of the previous year[69]. - The financial expenses for the six months ended June 30, 2021, were HKD 838,000, a decrease from HKD 2,771,000 in the same period of 2020[78]. - Interest expense on loans from directors for the period was HKD 768,000, down from HKD 2,752,000 for the same period in 2020, reflecting a 72% decrease[93]. Share Issuance and Dividends - The net proceeds from the issuance of new shares amounted to HKD 16.1 million, with 74.5% allocated to the Guangzhou development project and 25.5% for general working capital[22]. - The company did not recommend any interim dividend for the period, consistent with the previous year[86]. - The company issued shares amounting to HKD 16,200,000 in 2020, which was not repeated in the current period[69]. Governance and Compliance - The interim report was approved by the board on August 26, 2021[117]. - The company's governance practices largely complied with the corporate governance code, despite some directors being absent from the annual general meeting due to COVID-19 restrictions[112]. - The unaudited condensed consolidated financial statements for the period were reviewed by the audit committee[116]. Future Outlook and Strategic Plans - The board is optimistic about economic recovery in mainland China and Hong Kong, projecting a GDP growth rate of 6% for 2021[53]. - The company plans to leverage its strong asset base to finance reconstruction projects in Guangzhou and explore new business opportunities[53]. - The company is conducting feasibility studies regarding the new urban policy that encourages repurposing commercial areas into residential zones, which could enhance investment returns[31]. - The company is currently undergoing the bidding process for underground exploration prior to construction commencement[32]. - The company remains optimistic about favorable outcomes in ongoing litigation, which has been a concern for nearly ten years, potentially aiding the Guangzhou reconstruction plan[45].
中华国际(01064) - 2021 - 中期财报