Financial Performance - For the six months ended June 30, 2024, the company reported a revenue of HKD 5,023,251, a decrease of 39.5% compared to HKD 8,343,105 for the same period in 2023[1] - The gross profit for the same period was HKD 375,193, down 79.2% from HKD 1,803,024 in the previous year[1] - The company recorded a loss attributable to equity holders of HKD 1,044,489, compared to a profit of HKD 111,693 in the prior year[1] - Total comprehensive expenses for the period amounted to HKD 1,170,431, significantly higher than HKD 362,907 in the previous year[2] - The group recorded a net loss of approximately HKD 1.05 billion for the six months ending June 30, 2024[6] - The company reported a loss before tax of HKD 1,012,851,000 for the first half of 2024, compared to a profit of HKD 1,030,800,000 in the same period of 2023[12] - The company reported a core loss attributable to equity holders of HKD 159 million for the first half of 2024, compared to a profit of HKD 398 million in the same period of 2023[29] - The net loss for the period is HKD 1.050 billion, compared to a profit of HKD 0.593 billion in the previous year[49] Revenue Breakdown - Revenue from customer contracts amounted to HKD 4,997.33 million, a decrease of 39.5% compared to HKD 8,319.89 million for the same period in 2023[9] - Revenue from property sales was HKD 4,781.45 million, contributing significantly to the total revenue from customer contracts[9] - Total segment revenue for the first half of 2024 was HKD 5,025,479,000, a decrease of 39.5% compared to HKD 8,346,424,000 in the same period of 2023[13] - Revenue from real estate development decreased by 38.9% to HKD 4.997 billion, accounting for 99.5% of total revenue[39] Assets and Liabilities - Non-current assets decreased to HKD 6,177,080 from HKD 6,492,438 as of December 31, 2023, reflecting a decline of 4.8%[4] - Current assets also decreased to HKD 41,441,381 from HKD 47,082,715, a drop of 12.0%[4] - Total liabilities decreased to HKD 35,345,330 from HKD 39,227,508, indicating a reduction of 9.7%[4] - The company's equity attributable to equity holders decreased to HKD 4,210,380 from HKD 5,287,069, a decline of 20.4%[4] - Total assets decreased from HKD 53,575,153,000 as of December 31, 2023, to HKD 47,618,461,000 as of June 30, 2024[14] - Total liabilities also decreased from HKD 39,227,508,000 as of December 31, 2023, to HKD 35,345,330,000 as of June 30, 2024[14] - The company's total trade receivables as of June 30, 2024, were HKD 204,120,000, down from HKD 227,983,000 as of December 31, 2023[23] Cash Flow and Financing - The company’s cash and bank deposits decreased to HKD 2,959,230 from HKD 3,410,744, a decrease of 13.2%[4] - Cash and cash equivalents stood at HKD 2.959 billion as of June 30, 2024[6] - The group’s current assets net value was HKD 13.233 billion, while the current portion of interest-bearing bank and other borrowings was HKD 15.466 billion[6] - As of June 30, 2024, the company had a total bank borrowings of HKD 22.179 billion, with non-current borrowings amounting to HKD 6.713 billion and current borrowings amounting to HKD 15.466 billion[24] - The company has not received any loan repayment notices as of the report date, despite having HKD 10.235 billion in bank borrowings classified as current liabilities due to unmet financial covenants[25] - The company has a total of HKD 20.32 billion in cross-default borrowings due to unmet financial covenants[54] - The company issued a two-year club loan agreement of HKD 2.6 billion in January 2024 for refinancing existing borrowings[53] Market Conditions and Strategy - The primary business focus remains on real estate development, professional construction, and property investment in the People's Republic of China[5] - The overall real estate market in China saw a 12.5% year-on-year decline in sales amounting to RMB 471.33 billion for the first half of 2024, with a 19.0% decrease in sales area[30] - The company is actively seeking development opportunities while maintaining good relationships with local developers, despite adopting a conservative bidding strategy[32] Inventory and Impairment - The company reported a significant increase in inventory impairment provision to HKD 278,557,000 for the first half of 2024, compared to HKD 192,274,000 in the same period of 2023[17] - The company recorded an impairment provision of HKD 0.279 billion for inventory due to price declines in the real estate market[44] Corporate Governance - The audit committee has reviewed the unaudited interim consolidated financial statements for the six months ending June 30, 2024, which were also reviewed by the independent auditor, Ernst & Young[64] - The board of directors consists of nine members, including the chairman and executive director, Mr. He Jianbo, and other executive and non-executive directors[66]
五矿地产(00230) - 2024 - 中期业绩