Revenue Performance - Revenue for the period was approximately RMB 307.0 million, a decrease of approximately RMB 149.0 million compared to RMB 456.0 million for the same period in 2018, primarily due to a decline in the property development segment[23]. - Total revenue declined from RMB 456.0 million to RMB 307.0 million, representing a 32.7% decrease compared to the first half of 2018[70]. - Revenue from property leasing decreased from RMB27.1 million for the six months ended 30 June 2018 to approximately RMB23.4 million due to a continual decrease in occupancy rate[25]. - Revenue from hotel and integrated resort consultancy services generated approximately RMB7.1 million for the period under review, down from RMB8.5 million in the same period of 2018[25]. - Revenue from travel-related products and services increased to RMB257.7 million in the current period, compared to RMB250.8 million for the six months ended 30 June 2018[25]. - Revenue from property development was RMB 18,901,000, while property leasing generated RMB 23,386,000, and travel-related products and services contributed RMB 257,676,000 for the six months ended June 30, 2019[144]. Property Development - The completed project "Le Paysage" in Shenzhen has a total saleable area of 96,953 m² and is fully owned by the Group[11]. - The property under development "The Landale" in Chaohu has a site area of 122,363 m² and a saleable area of 82,974 m², with 100% interest attributable to the Group[12]. - The Group's property development project, Le Paysage, has sold approximately 86% of its total saleable area of approximately 96,953 m² as of June 30, 2019[59]. - The Landale project is currently suspended due to policy changes, with the Chaohu Government intending to reclaim land use rights for approximately 183.54 Chinese Mu (equivalent to approximately 122,360 m²)[59]. - The Group delivered residential units with a Gross Floor Area (GFA) of approximately 621 m² for the six months ended 30 June 2019, a decrease from 2,749 m² in the same period of 2018, resulting in a revenue decline of approximately RMB150.7 million[25]. Financial Performance - The Group recorded a loss attributable to owners of the Company of RMB1,254.2 million for the six months ended 30 June 2019, a reduction of 23.9% compared to RMB1,648.1 million for the same period in 2018[70]. - Gross profit decreased by 70.8% to RMB51.6 million, primarily due to a decrease in revenue from property sales[70]. - The company reported a basic and diluted loss per share of RMB 18.81 for the six months ended June 30, 2019, compared to RMB 27.12 for the same period in 2018, indicating an improvement in loss per share[85]. - The company incurred a net loss of RMB1,254,366,000 during the six months ended 30 June 2019[79]. - The total comprehensive expense for the period was RMB 1,236,321,000, compared to RMB 1,647,942,000 in the same period of 2018, showing a reduction in comprehensive losses of about 25%[85]. Financial Position - As of June 30, 2019, the Group's current liabilities exceeded current assets by RMB3,029,405,000 and total liabilities exceeded total assets by RMB1,947,176,000[79]. - The Group's total bank and other borrowings increased to approximately RMB811.3 million as of June 30, 2019, compared to RMB685.3 million as of December 31, 2018[47]. - The Group's borrowings represented 39.2% of total assets as of June 30, 2019, up from 31.4% as of December 31, 2018[47]. - The Group's current liabilities increased to approximately RMB 3,781.8 million from RMB 2,799.0 million as of December 31, 2018[50]. - The Group's total liabilities amounted to RMB 2,202,618, an increase from RMB 1,714,889 as of December 31, 2018[89]. Investments and Acquisitions - The Group acquired approximately 24.68% of the issued share capital of Summit Ascent for HK$717.8 million, increasing its interest from approximately 3.29% to approximately 27.97%[35]. - The Group disposed of its equity interest in Sun Metro Real Estate Company Limited for RMB20 million, which held a 90% attributable interest in a property development project[32]. - Following the acquisition, the Group further acquired an additional 1.80% equity interest in Summit Ascent for approximately HK$45,021,600, resulting in a total holding of approximately 29.68% as of June 30, 2019[53]. - The Group's total investment in the joint venture, including loans, was RMB767,592,000 as of June 30, 2019[178]. - The financial asset representing a 3.29% equity interest in Summit Ascent was derecognized on 23 April 2019, resulting in a gain of approximately RMB20,681,000 recognized during the six months ended 30 June 2019[174]. Operational Challenges - The decrease in revenue was mainly attributed to the property development segment, indicating potential challenges in this area[24]. - The Group's property leasing business includes the Gang Long City Shopping Centre in Shenzhen, which has a leasable area of 64,397 m²[19]. - The property leasing business has a leasable area of 64,397 m², with an occupancy rate of 66.0% for the six months ended June 30, 2019, down from 87.0% for the same period in 2018[59]. - The Group experienced a significant loss in the property leasing segment, amounting to RMB 58,224,000, highlighting operational difficulties in this area[144]. - The share of loss from a joint venture, Star Admiral, is attributed to its principal asset, a 34% equity interest in the Hoiana Project in Vietnam, which is still under construction and thus in a loss-making position[44]. Future Outlook - Future outlook includes potential expansion in property leasing and continued development of existing projects to improve financial performance[23]. - The Group's management discussion highlights a focus on diversifying revenue streams beyond property development[23]. - The Group aims to enhance its market presence through strategic expansions and new product developments in the travel-related services sector[140]. - The Group has been providing hotel and integrated resort consultancy services since 2017, with expectations of improved performance as several integrated resorts in Vietnam and Cambodia are set to complete construction between Q4 2019 and Q1 2020[59]. - The opening of the Hong Kong-Zhuhai-Macao Bridge in October 2018 is expected to boost regional tourism, benefiting the Group's travel-related products and services segment[64]. Accounting and Compliance - The Group applied new accounting standards including HKFRS 16 Leases for the first time during the reporting period[100]. - The application of new and amendments to HKFRSs has had no material impact on the Group's financial performance and positions for the current and prior periods[100]. - The Group's financial statements are prepared on a going concern basis[98]. - The Group's financial statements are in accordance with HKAS 34 Interim Financial Reporting[98]. - The Group recognizes right-of-use assets at the commencement date of the lease, measured at cost, less accumulated depreciation and impairment losses[105].
LET GROUP(01383) - 2019 - 中期财报