Financial Performance - The Group's revenue for the six months ended 30 September 2019 was approximately HK$32,782,000, a decrease of 61.6% compared to approximately HK$85,378,000 for the same period in 2018[8]. - The unaudited consolidated loss attributable to shareholders for the Period was approximately HK$170,767,000, compared to a profit of approximately HK$3,173,000 for the 2018 Period[9]. - The basic and diluted loss per share for the Period was approximately HK$1.87, compared to earnings per share of HK$0.04 in the 2018 Period[10]. - Total comprehensive expense for the period was HK$175,917,000, compared to HK$6,291,000 in the previous year[153]. - The loss for the period attributable to owners of the company was HK$170,767,000, compared to a profit of HK$3,173,000 in the same period last year[153]. - The company reported a loss before taxation of HK$169,657,000 for the six months ended 30 September 2019, compared to a profit of HK$5,505,000 in the same period of 2018[179]. Revenue Sources - Rental income during the Period decreased by approximately 27.5% to approximately HK$19,797,000 compared to the 2018 Period[9]. - The Group did not record any revenue from the property development segment during the Period, as no new properties were rolled out[18]. - Revenue from property rental for the period was approximately HK$19,797,000, representing a decrease of approximately HK$7,528,000 or 27.5% compared to the previous period[26]. - The overall results for the property investment segment showed a loss of approximately HK$2,793,000, a decrease of approximately HK$50,950,000 or 106% compared to the previous period's profit[26]. Property Development and Investment - The Group's core businesses include property development and investment, with significant experience in property redevelopment[18]. - Major projects include the Waterloo Project, which has a site area of approximately 9,800 sq. ft. and is being developed into luxurious residential accommodation[18]. - The estimated gross floor area for the Waterloo development is approximately 48,965 sq. ft., with construction works currently ongoing[18]. - The Group acquired 100% ownership of the Chatham Road North site, which has a total site area of approximately 4,685 sq. ft., and plans to develop it into a composite building with an estimated gross floor area of approximately 41,401 sq. ft.[20]. - The Group plans to launch the sale of the "Ayton" residential building, consisting of 60 units with a total saleable area of approximately 40,743 sq. ft., in the first quarter of 2020[25]. Financial Assets and Investments - The Group's investment in equity securities listed in Hong Kong amounted to approximately HK$55,604,000 as of September 30, 2019, down from approximately HK$105,666,000 as of March 31, 2019[34]. - During the period, the Group experienced a net disposal of securities amounting to approximately HK$52,754,000 and a net decrease in market value of securities of approximately HK$12,666,000[34]. - The Group received dividend income from listed securities investments of approximately HK$2,233,000 during the period[35]. - The Group purchased equity-linked notes of China Construction Bank Corporation with a principal amount of HK$24,000,000 during the period[32]. - The Group disposed of 631,700 shares of HSBC Holdings plc, generating approximately HK$35,452,000 in sale proceeds[32]. Cash Flow and Liquidity - Bank balances, including cash and deposits, decreased to approximately HK$103,718,000 from HK$191,670,000 as of March 31, 2019, reflecting a decrease of approximately HK$87,952,000[46]. - The Group's bank borrowings increased to approximately HK$1,315,868,000 as of September 30, 2019, compared to HK$1,285,984,000 as of March 31, 2019[46]. - Net current assets as of September 30, 2019, were approximately HK$1,637,096,000, down from HK$1,690,736,000 as of March 31, 2019[47]. - The current ratio as of September 30, 2019, was approximately 2.7, slightly down from 2.8 as of March 31, 2019[47]. - Cash and cash equivalents at the end of the period were HK$103,718,000, down from HK$184,503,000 at the end of the previous period[179]. Shareholder Information - As of September 30, 2019, Ms. Koon Ho Yan Candy held approximately 31.95% of the Company's shares, while Ms. Lui Yuk Chu held approximately 19.09%[86][90]. - The total number of ordinary shares held by Ms. Lui Yuk Chu is 739,330,692, representing approximately 62.34% of interests[94]. - Ms. Koon Ho Yan Candy holds 739,330,692 shares, which accounts for approximately 61.73% of interests[94]. - The company has issued a total of 1,560,727,272 underlying shares in convertible notes to Goodco[98]. - The company has a significant concentration of ownership, with major shareholders holding substantial percentages of the total issued shares[99]. Corporate Governance and Compliance - The company has complied with the Corporate Governance Code, with the exception of the roles of president and CEO being held by the same individual, which the board deems appropriate for effective leadership[124]. - The company does not currently have an internal audit function, but the board reviews the effectiveness of the internal control system annually[127]. - The Company has confirmed compliance with the Model Code regarding securities transactions by Directors throughout the reporting period[133]. Employee Information - As of September 30, 2019, the Group had 29 employees, a decrease from 33 employees as of September 30, 2018[140]. - Staff costs for the period amounted to approximately HK$15,140,000, compared to approximately HK$13,809,000 for the same period in 2018, representing an increase of about 9.6%[140]. - The Group has adopted competitive remuneration packages based on employee performance, experience, and industry practices[140]. Accounting and Reporting Standards - The company has applied new accounting standards, including HKFRS 16 on leases, which became effective from 1 April 2019[191]. - The company experienced a decrease in trade and other receivables, which fell by HK$82,999,000 during the reporting period[179]. - The Group has applied HKFRS 16 for the first time in the current interim period, superseding HKAS 17 "Leases"[195].
永义国际(01218) - 2020 - 中期财报