Financial Performance - Revenue for the six months ended June 30, 2024, was HKD 14,259,000, a decrease of 2.5% compared to HKD 14,624,000 for the same period in 2023[1] - The company reported a loss before tax of HKD 28,093,000, significantly improved from a loss of HKD 1,751,703,000 in the prior year[1] - Total comprehensive loss for the period was HKD 35,427,000, compared to HKD 1,971,827,000 in the previous year, indicating a substantial reduction in losses[3] - Basic and diluted loss per share for ordinary shareholders was HKD 1.25, compared to HKD 62.51 in the same period last year[2] - The net loss attributable to equity holders was HKD 1,861,665,000 for the same period, compared to a loss of HKD 444,000 previously reported[10] - The group reported a pre-tax loss of HKD 28,093,000 and a post-tax loss of HKD 30,783,000 for the period, compared to a pre-tax loss of HKD 1,751,703,000 and a post-tax loss of HKD 1,861,665,000 in 2023[30] Assets and Liabilities - Non-current assets totaled HKD 1,365,035,000 as of June 30, 2024, down from HKD 1,403,623,000 at the end of 2023[4] - Cash and cash equivalents decreased to HKD 78,763,000 from HKD 90,761,000 at the end of 2023[4] - The company’s total equity as of June 30, 2024, was HKD 1,027,672,000, a decrease from HKD 1,063,099,000 at the end of 2023[5] - The group’s total assets amounted to HKD 1,451,330,000, down from HKD 1,496,606,000 as of December 31, 2023[32] - The deferred tax liabilities amounted to HKD 820,699,000, reflecting the company's tax obligations[25] Cash Flow and Expenses - The cash flow from operating activities improved to HKD 5,117,000 for the six months ended June 30, 2023, compared to HKD 1,541,000 previously reported[12] - Net cash flow from operating activities was HKD 3,658,000, down from HKD 5,117,000 in 2023[31] - The total tax expense for the period was HKD 2,690,000, a decrease from HKD 109,962,000 in the previous year, primarily due to the absence of taxable profits in Hong Kong[22] - Administrative expenses increased to HKD (14,381,000) from HKD (12,158,000) in the prior year, reflecting a rise in operational costs[1] Shareholder Information - The company did not recommend the payment of an interim dividend for the period, consistent with the previous year[20] - The company has not issued any potential dilutive ordinary shares during the reporting period[21] Legal and Regulatory Matters - Guangzhou Zhengda has filed a lawsuit against Yuexiu State-owned Assets, claiming RMB 41,000,000 in interest losses[50] - The lawsuit began hearing in August 2024 and has not yet concluded[50] - The company remains confident that the liquidation petition against Guangzhou Zhengda lacks factual and legal basis[56] - The management has highlighted the lack of detailed mechanisms and procedures for liquidation under the Company Law of the People's Republic of China[52] Projects and Investments - The company completed a new share issuance of 108,000,000 shares at HKD 0.15 per share, raising a total of HKD 16.1 million, with 74.5% allocated for the Guangzhou reconstruction project[39] - The Guangzhou reconstruction project is expected to develop a 22-story multifunctional commercial complex with a total construction area of approximately 234,000 square meters, with the first phase completion anticipated by the end of 2027[45] - The company plans to explore investment opportunities related to "new productive forces" in addition to its core property development and management business[42] Employee and Governance - The total employee cost for the group was HKD 3,870,000 for the period, compared to HKD 3,630,000 in the previous year[61] - The group maintained approximately 20 employees as of June 30, 2024, consistent with the previous year[61] - The board supports the Hong Kong SAR government's lawful governance, especially in light of recent national security measures[60] - The board emphasizes the importance of competitive compensation and employee development resources to enhance performance[61] Market Conditions - The real estate market in China is still in a consolidation phase, with expectations for a rebound taking a few more years[59] - The board will closely monitor market trends to adjust the property portfolio and reconstruction timetable accordingly[59]
中华国际(01064) - 2024 - 中期业绩