Financial Performance - Revenue for the six months ended June 30, 2024, was HKD 12,458,000, an increase of 10.4% compared to HKD 11,287,000 for the same period in 2023[1] - Gross profit for the same period was HKD 9,691,000, up 14.2% from HKD 8,483,000 year-on-year[1] - Profit attributable to shareholders for the six months ended June 30, 2024, was HKD 2,780,000, representing a 22.1% increase from HKD 2,277,000 in the previous year[2] - Basic and diluted earnings per share increased to HKD 0.72 from HKD 0.59, reflecting a growth of 22%[2] - The company's profit for the six months ended June 30, 2024, increased by approximately HKD 500,000 or 22% to about HKD 2,800,000, compared to HKD 2,300,000 in 2023[20] - Rental income for the same period rose by approximately HKD 1,200,000 or 10% to about HKD 12,500,000, up from HKD 11,300,000 in 2023, primarily due to an increase in overall property occupancy rates[19][20] Assets and Liabilities - Total assets as of June 30, 2024, were HKD 1,668,050,000, a decrease from HKD 1,668,122,000 as of December 31, 2023[3] - Non-current assets remained stable at HKD 1,654,524,000 compared to HKD 1,654,532,000 at the end of 2023[3] - Current liabilities decreased to HKD 172,239,000 from HKD 316,717,000, indicating improved liquidity[4] - The company's cash and cash equivalents as of June 30, 2024, were approximately HKD 8,000,000, down from HKD 159,000,000 as of December 31, 2023[23] - The total borrowings as of June 30, 2024, were approximately HKD 151,800,000, a decrease from HKD 294,700,000 as of December 31, 2023[23] - The company's debt-to-equity ratio as of June 30, 2024, was approximately 10.33%, down from 20.02% as of December 31, 2023[23] - Trade receivables decreased to HKD 182,000 as of June 30, 2024, from HKD 224,000 as of December 31, 2023[17] Income and Expenses - The total tax expense for the period was HKD 486,000, a decrease from HKD 1,018,000 in the previous year[13] - The company reported a significant decrease in interest expenses on bank loans, down to HKD 1,050,000 from HKD 3,301,000[11] - Other income and gains decreased to HKD 297,000 from HKD 822,000, a decline of 63.9% year-on-year[9] Corporate Governance - The company has consistently applied the corporate governance code as per the Hong Kong Stock Exchange listing rules during the six months ending June 30, 2024[31] - All directors confirmed compliance with the standard code of conduct for securities trading during the six months ending June 30, 2024[33] - The audit committee has reviewed the accounting principles and practices adopted by the group and discussed internal controls and financial reporting matters[30] - The board of directors includes executive directors Liu Zhi Yong and Liu Zhi Qi, and independent non-executive directors Lu Min Lin, Lao Jin Xiang, and Xu Jia Hua[34] Market Conditions and Strategy - The global economy is expected to face challenges in the second half of 2024 due to ongoing economic slowdown, geopolitical conflicts, and high interest rates[27] - The demand for office leasing in Hong Kong remains weak, while the residential leasing market is thriving due to potential buyers turning to rental options[27] - Malaysia's relaxed visa policies for Chinese tourists and broader investment incentives are anticipated to boost the tourism and commercial investment sectors, benefiting the real estate industry[28] - The company is actively seeking opportunities to acquire quality real estate and land reserves in Malaysia to diversify its real estate investment and development portfolio[28] Other Information - The company has only one reportable segment, which is rental income from investment properties, with no additional financial information available[8] - There were no significant acquisitions or disposals of subsidiaries, associates, or joint ventures during the reporting period[21] - No purchases, sales, or redemptions of the company's listed securities were made by the company or its subsidiaries during the six months ending June 30, 2024[29] - The company does not face any significant foreign exchange risks as most of its monetary assets and liabilities are denominated in HKD[22] - The company declared an interim dividend of HKD 0.8 per share, consistent with the previous year's interim dividend[14]
东方兴业控股(00430) - 2024 - 中期业绩