Financial Performance - The Group's revenue for the six months ended 30 September 2020 amounted to approximately HK$250.3 million, a decrease of 88.7% compared to approximately HK$2,223.9 million for the same period in 2019[19] - Profit attributable to owners of the parent for the reporting period was approximately HK$71.9 million, down 87.6% from approximately HK$579.3 million in the previous year[19] - The interim report highlights a significant reduction in both revenue and profit, indicating challenges faced during the reporting period[19] - The decrease in revenue and profit was primarily attributed to the timing of project completions, affecting the overall financial performance[19] - Gross profit for the same period was HK$117,120,000, down 87.88% from HK$967,257,000 in 2019[121] - Profit before tax for the period was HK$92,413,000, a decrease of 87.14% compared to HK$716,782,000 in the previous year[121] - Profit for the period was HK$73,109,000, down 87.37% from HK$578,754,000 in 2019[121] - Basic and diluted earnings per share attributable to ordinary equity holders of the parent were HK$0.47 cents, a decline from HK$3.81 cents in the same period last year[122] Revenue Breakdown - Revenue recognized in the property development segment during the reporting period was approximately HK$245.4 million, a decline of 88.9% from approximately HK$2,222.8 million in the same period last year[21] - The property development segment generated revenue of HK$245,374,000, while the property investment segment contributed HK$4,918,000 for the six months ended September 30, 2020[153] - Revenue recognized from the sale of properties amounted to HK$17,346,000 for the six months ended 30 September 2020, compared to HK$1,949,121,000 in the same period of 2019, indicating a significant decrease[158] Project Developments - The Group launched a new luxury residential brand series "NOUVELLE" in collaboration with CIFI Holdings Group Co., Ltd, with the project "maya" having sold 266 out of 308 units, generating a total contracted sales amount of approximately HK$3.1 billion[22] - The Group expects some existing projects under development to complete in the second half of the financial year 2021, which may impact future revenue and profit[19] - The "Altissimo" project has sold 472 of 547 units, with a total contracted sales amount of approximately HK$4.4 billion[25] - The Group holds a 50% interest in the "maya" development project and is responsible for project management[22] - The new "The Met." project in Tsing Yi has an expected total permitted residential floor area of approximately 80,000 square feet and is set for pre-sale next year[27] - A new redevelopment site in Ap Lei Chau has a total attributable gross floor area of approximately 37,100 square feet, with demolition work expected to start in Q1 next year[28] Investment Properties - As of 30 September 2020, the Group's investment properties had a total carrying value of approximately HK$621.2 million[39] - Gross rental income for the period was approximately HK$4.9 million, an increase from HK$2.4 million in the same period last year[40] - The occupancy rate of the investment property "The Parkside" is over 80%[42] - The rental yield of the investment property project acquired in 2019 was improved due to renovations and tenant mix enhancements, achieving full occupancy[44] - The Group continues to seek opportunities to expand its investment properties portfolio for recurring income and capital appreciation[49] Financial Position - As of September 30, 2020, the Group's total assets less current liabilities were approximately HK$7,894.8 million, an increase from approximately HK$7,198.9 million as of March 31, 2020[54] - The current ratio as of September 30, 2020, was approximately 2.7 times, up from approximately 2.5 times as of March 31, 2020[54] - Aggregate bank borrowings as of September 30, 2020, amounted to approximately HK$4,133.1 million, compared to approximately HK$3,370.2 million as of March 31, 2020[54] - The gearing ratio was approximately 76.3% as of September 30, 2020, an increase from approximately 53.9% as of March 31, 2020[54] - The Group's cash and cash equivalents were approximately HK$594.3 million as of September 30, 2020, down from approximately HK$853.6 million as of March 31, 2020[54] Corporate Governance - The Company has complied with the applicable code provisions of the Corporate Governance Code throughout the six months ended September 30, 2020[105] - The company has maintained a high standard of corporate governance, emphasizing transparency and accountability to enhance competitiveness and operating efficiency[106] - No share options were granted, lapsed, cancelled, or outstanding under the Share Option Scheme during the review period[99] - The Share Option Scheme aims to provide incentives for eligible persons contributing to the development and growth of the Group[95] Shareholder Information - As of September 30, 2020, WOG held 11,400,000,000 shares of the Company, representing 75.0% of the total issued share capital of 15,200,000,000 shares[92] - The Company’s substantial shareholders include WOG, Mr. Tang Ching Ho, and Ms. Yau Yuk Yin, all holding significant shares[92] Cash Flow and Expenses - Net cash flows used in operating activities amounted to HK$919,917,000, a significant increase from HK$104,445,000 in the same period of 2019[133] - Interest received increased to HK$25,611,000 from HK$11,001,000 year-on-year[137] - Dividend paid decreased to HK$109,440,000 from HK$250,040,000 in the previous year[137] - The Group's total cash outflow from financing activities was HK$562,280,000, contrasting with an outflow of HK$512,855,000 in the previous year[137] Disposals and Acquisitions - The company disposed of subsidiaries with net assets totaling HK$93,158,000 during the six months ended September 30, 2020, which included gains on disposals amounting to HK$30,800,000[198] - The cash inflow from the disposals of subsidiaries was HK$26,860,000 from City Global and HK$66,298,000 from Longable, resulting in a total cash inflow of HK$93,158,000[198] - The financial impacts of the disposals of subsidiaries are summarized, indicating a strategic move to optimize asset management[197]
宏安地产(01243) - 2021 - 中期财报