鋑联控股(00459) - 2024 - 中期业绩

Financial Statements Condensed Consolidated Statement of Comprehensive Income (Income Statement) For the six months ended June 30, 2024, the Group's total revenue decreased by 12.6% to HKD 202 million, leading to a 46.6% decline in profit and total comprehensive income to HKD 9.291 million, with basic and diluted earnings per share significantly reduced to HKD 0.526 cents | Metric | H1 2024 (HKD thousands) | H1 2023 (HKD thousands) | YoY Change | | :--- | :--- | :--- | :--- | | Revenue | 201,530 | 230,519 | -12.6% | | Operating Profit | 19,788 | 26,518 | -25.4% | | Profit Before Tax | 10,974 | 19,395 | -43.4% | | Profit and Total Comprehensive Income for the Period | 9,291 | 17,404 | -46.6% | | Profit Attributable to Owners of the Company | 9,504 | 17,511 | -45.7% | | Basic and Diluted Earnings Per Share (HK cents) | 0.526 | 0.970 | -45.8% | Condensed Consolidated Statement of Financial Position As of June 30, 2024, the Group's total assets were HKD 1.694 billion, largely stable, with total liabilities slightly decreasing to HKD 545 million and total equity modestly increasing to HKD 1.149 billion | Metric (HKD thousands) | June 30, 2024 | Dec 31, 2023 | Change | | :--- | :--- | :--- | :--- | | Assets | | | | | Non-current Assets | 1,034,247 | 1,047,118 | -1.2% | | Current Assets | 659,488 | 644,321 | +2.4% | | Total Assets | 1,693,735 | 1,691,439 | +0.1% | | Equity and Liabilities | | | | | Total Equity | 1,148,764 | 1,139,473 | +0.8% | | Non-current Liabilities | 251,708 | 298,626 | -15.7% | | Current Liabilities | 293,263 | 253,340 | +15.8% | | Total Liabilities | 544,971 | 551,966 | -1.3% | | Total Equity and Liabilities | 1,693,735 | 1,691,439 | +0.1% | Notes to the Financial Statements This section details the basis of financial statement preparation, segment revenue and performance, key cost components, and asset/liability item specifics, highlighting a decline in property agency revenue offset by growth in lending, a fair value loss on investment properties, and stable, secured bank loans - The Group's principal businesses in Hong Kong include property agency services for industrial, commercial, and retail properties, property investment, lending, and securities investment[6] Revenue and Segment Information Total revenue is primarily from agency fees, rental income, and lending interest, with agency fees decreasing from HKD 204 million to HKD 172 million, driving the overall revenue decline, while lending interest income increased from HKD 12.94 million to HKD 16.48 million Revenue by Source | Revenue Source (HKD thousands) | H1 2024 | H1 2023 | YoY Change | | :--- | :--- | :--- | :--- | | Agency Fees | 171,657 | 203,831 | -15.8% | | Rental Income | 13,394 | 13,748 | -2.6% | | Interest Income from Lending Business | 16,479 | 12,940 | +27.4% | Segment Performance | Segment Performance (HKD thousands) | H1 2024 | H1 2023 | YoY Change | | :--- | :--- | :--- | :--- | | Property Agency Business (Total) | 7,419 | 11,376 | -34.8% | | Property Investment | 4,262 | 12,480 | -65.8% | | Lending Business | 13,858 | 10,860 | +27.6% | Investment Properties During the period, the Group's investment properties recorded a fair value loss of HKD 3.4 million, higher than HKD 2.9 million in the prior year, with approximately HKD 897 million in investment properties pledged as loan collateral - Fair value loss on investment properties recognized during the period was HKD 3.4 million (prior period: HKD 2.9 million)[26] - Investment properties valued at HKD 897 million were pledged as collateral for the Group's bank loans[26] Loans Receivable The Group's loans receivable, primarily property mortgage loans, increased from HKD 334 million at the end of 2023 to HKD 343 million as of June 30, 2024, indicating an expansion in the lending business Loans Receivable Details | Item | June 30, 2024 (HKD thousands) | Dec 31, 2023 (HKD thousands) | | :--- | :--- | :--- | | Loans Receivable - Property Mortgage Loans | 343,482 | 333,710 | Bank Loans As of June 30, 2024, the Group's total bank loans were HKD 381 million, largely stable compared to HKD 384 million at the end of last year, with all loans secured and denominated in HKD Bank Loans Summary | Item | June 30, 2024 (HKD thousands) | Dec 31, 2023 (HKD thousands) | | :--- | :--- | :--- | | Total Bank Loans | 380,547 | 384,225 | - Bank loans are secured by investment properties of the Group valued at HKD 897 million[33] Management Discussion and Analysis Performance Review The Group's profit decline is mainly due to the absence of property sale gains (HKD 7 million in prior period) and a weak Hong Kong non-residential property market, impacted by high interest rates, cross-border consumption, and geopolitical tensions, though mitigated by cost-cutting and enhanced collaboration with affiliate Midland Realty for residential referral commissions - Profit decline primarily due to no property sales during the interim period (HKD 7 million gain in prior period) and a weak non-residential property market[36] - Negative market factors include: lack of stimulus, Hong Kong residents traveling north for consumption, high interest rates, and geopolitical tensions, with registered transactions for industrial, retail, and office properties decreasing by approximately 30%, 13%, and 30% year-on-year, respectively[37] - To counter market downturn, the Group actively cut expenses and deepened cooperation with Midland Holdings, offsetting part of the agency business revenue decline through residential property referral commissions[38] - Service apartments within the property investment business benefited from a robust residential leasing market, while the lending business remained profitable and grew despite high interest rates[39] Outlook The Group anticipates short-term challenges but remains cautiously optimistic for the medium to long term, expecting potential interest rate cuts to stimulate investment, while government events, the 'concert economy' from Kai Tak Sports Park, and wealth management growth may boost retail and office markets, leading the Group to control costs, enhance Midland collaboration for residential opportunities, and prudently manage property investments and lending - The market generally expects interest rate cuts in late 2024, but investors may await actual cuts before acting[40] - Hong Kong government's major events and the 'concert economy' from Kai Tak Sports Park are expected to boost tourism, providing new impetus for the retail sector[41] - Growth in Hong Kong's wealth and asset management industry is expected to attract more family offices, benefiting the office property market[42] - The Group will strengthen cooperation with Midland to earn more residential property referral commissions, actively manage its property investment portfolio, and closely monitor credit risk in its lending business[43] Financial Review and Other Information Liquidity and Financial Resources The Group's financial position is robust, with HKD 202 million in cash and cash equivalents, HKD 381 million in bank loans, a gearing ratio of 33.1%, and a current ratio of 2.2, indicating ample financial resources and minimal foreign exchange risk Liquidity and Financial Resources Summary | Metric | June 30, 2024 | Dec 31, 2023 | | :--- | :--- | :--- | | Cash and Cash Equivalents (HKD thousands) | 202,338 | 219,181 | | Bank Loans (HKD thousands) | 380,547 | 384,225 | | Gearing Ratio | 33.1% | 33.7% | | Current Ratio | 2.2 | 2.5 | - The Directors believe the Group's financial resources are sufficient to meet its ongoing working capital requirements[44] Loan Portfolio and Lending Business Information The Group's lending business grew steadily, with outstanding loans receivable increasing to HKD 343.5 million across 35 loans, all secured by first mortgages on properties with an average LTV of approximately 57%, indicating good risk control, and loans from the top five borrowers accounting for 50% of the total portfolio - As of June 30, 2024, outstanding loans receivable amounted to HKD 343.5 million across 35 loans[47] - All outstanding loans receivable are secured by first mortgages on properties, with an average loan-to-value (LTV) ratio of approximately 57%[47] - Loans receivable from the top five borrowers accounted for 50% of the total portfolio[47] Employee Information As of June 30, 2024, the Group employed 431 full-time employees, a decrease from 480 at the end of 2023, reflecting cost control efforts, with remuneration policies aligning with industry practices and offering discretionary bonuses and training - As of June 30, 2024, the Group employed 431 full-time employees, a decrease from 480 as of December 31, 2023[49] Interim Dividend The Board decided not to declare an interim dividend for the six months ended June 30, 2024, consistent with the prior year's policy - The Board did not declare an interim dividend for the interim period (six months ended June 30, 2023: nil)[51][23] Corporate Governance The company complied with all Corporate Governance Code provisions under the Listing Rules during the interim period, and the Audit Committee reviewed the financial statements for this period, with no purchases, sales, or redemptions of the company's listed securities by the company or its subsidiaries - The Company has complied with all code provisions of the Corporate Governance Code set out in Appendix C1 to the Listing Rules throughout the interim period[52] - The Company's Audit Committee has reviewed the unaudited condensed consolidated interim financial information of the Group for the interim period[54]