Financial Performance - The Group reported an unaudited consolidated loss attributable to shareholders of approximately HK$73,881,000 for the six months ended 30 September 2020, compared to a loss of approximately HK$170,767,000 for the same period in 2019[11]. - Total revenue for the six months ended September 30, 2020, was HK$23,711,000, a decrease of 27.6% compared to HK$32,782,000 for the same period in 2019[146]. - Gross profit for the period was HK$22,474,000, down 29.0% from HK$31,641,000 in the previous year[146]. - Loss before taxation was HK$73,330,000, compared to a loss of HK$169,657,000 for the same period in 2019, indicating an improvement[146]. - The loss for the period attributable to owners of the company was HK$73,881,000, compared to HK$170,767,000 in the prior year[149]. - Basic and diluted loss per share was HK$(0.81), an improvement from HK$(1.87) in the same period last year[149]. - The total comprehensive expense for the period was HK$66,579,000, an improvement from HK$175,917,000 in the same period last year[149]. - The Group's segment loss during the period was approximately HK$16,177,000, compared to approximately HK$8,406,000 in the previous period[52]. - The overall loss for the property investment segment was approximately HK$51,583,000, representing an increase in loss of approximately HK$48,790,000 compared to the 2019 period[33]. Property Development and Investment - No revenue was recorded from the property development segment for the Period, consistent with the 2019 Period[15]. - The Group is developing the Waterloo Road Site into luxurious residential accommodation with an estimated gross floor area of approximately 48,977 sq. ft., expected to be completed in mid-2022[17]. - The Group holds more than 80% of the properties at Chatham Road North, with a total site area of approximately 4,653 sq. ft., and is pursuing redevelopment plans[23]. - The Lands Tribunal has scheduled a hearing for the application to auction Chatham Road North on 1 December 2020, which may lead to a public auction[24]. - If successful in acquiring all remaining units at Chatham Road North, the site will be 100% owned by the Group, with an estimated gross floor area of approximately 41,597 sq. ft. post-redevelopment[25]. - The Group's revenue from property rental for the period was approximately HK$16,027,000, representing a decrease of approximately HK$3,770,000 or 19.0% compared to the 2019 period[31]. - The property investment segment generated revenue of HK$20,391,000, while the property development segment reported a loss of HK$13,433,000[195]. Investment Activities - The Group acquired additional shares in Eminence Enterprise Limited, increasing its interest from 27.47% to 29.6%, with a bargain purchase gain of approximately HK$58,471,000 recognized[39]. - The Group invested in shares and equity-linked notes of several blue-chip companies, including China Construction Bank and Alibaba Group, during the period[38]. - The Group's investment in equity securities listed in Hong Kong and the USA increased to approximately HK$165,075,000 as of September 30, 2020, compared to approximately HK$61,411,000 as of March 31, 2020[49]. Financial Position - As of September 30, 2020, the bank balances were approximately HK$57,236,000, a decrease of approximately HK$60,684,000 compared to HK$117,920,000 on March 31, 2020[67]. - The Group's bank borrowings amounted to approximately HK$1,471,756,000, an increase from approximately HK$1,428,186,000 as of March 31, 2020[67]. - The net current assets as of September 30, 2020, were approximately HK$1,516,260,000, reflecting a decrease of approximately HK$32,828,000 from HK$1,549,088,000 on March 31, 2020[68]. - The current ratio as of September 30, 2020, was approximately 2.3, down from approximately 2.5 on March 31, 2020[68]. - Non-current assets decreased to HK$2,240,956,000 as of September 30, 2020, from HK$2,292,054,000 as of March 31, 2020[151]. - The equity attributable to owners of the Company was HK$3,169,804, a decrease from HK$3,236,270 as of March 31, 2020[152]. Governance and Compliance - The company has complied with all provisions of the Corporate Governance Code, except for the separation of the roles of president and chief executive officer[113]. - The independent non-executive directors confirmed compliance with the Model Code regarding securities transactions throughout the reporting period[125]. - The company does not have an internal audit function, but the Board reviewed the internal control system and identified areas for improvement[116]. - The changes in directors' information included the retirement of Mr. Hon Tam Chun and the appointment of Mr. Lau Chak Hang Charles as an independent non-executive director[118]. Employee and Remuneration - As of September 30, 2020, the Group had 30 employees, an increase from 29 employees on September 30, 2019[134]. - Staff costs for the period amounted to approximately HK$14,014,000, a decrease of about 7.4% from approximately HK$15,140,000 in the same period of 2019[134]. - The Group has adopted competitive remuneration packages based on employee performance, experience, and industry practices[134]. Future Outlook - The Group will continue to focus on property development, investment, securities investment, and loan financing while exploring other potential projects for steady returns[78]. - The Group remains cautiously optimistic about the prospects of the property and securities market in Hong Kong despite global economic uncertainties[79]. - The Group continues to focus on strategic investments and acquisitions to enhance its market position and operational capabilities[35].
永义国际(01218) - 2021 - 中期财报