Financial Performance - For the six months ended June 30, 2024, the company reported total revenue of HKD 517,921,000, a significant increase from HKD 160,294,000 for the same period in 2023, representing a year-over-year growth of 223%[1] - The gross loss for the period was HKD 81,263,000, compared to a gross profit of HKD 29,216,000 in the previous year, indicating a shift in profitability[1] - The company recorded a loss before tax of HKD 217,175,000, compared to a loss of HKD 29,794,000 in the prior year, reflecting a substantial increase in losses[1] - The total comprehensive loss for the period was HKD 225,922,000, compared to a total comprehensive loss of HKD 28,984,000 in the same period last year[1] - The company reported a basic and diluted loss per share of HKD 34.07 for the current period, compared to HKD 4.64 in the previous year, highlighting a significant deterioration in earnings per share[4] - The company reported a pre-tax loss of HKD 218,538,000 for the six months ended June 30, 2024, compared to a loss of HKD 29,737,000 for the same period in 2023[26] - The basic and diluted loss per share for the six months ended June 30, 2024, was HKD (0.34), significantly higher than HKD (0.05) for the same period in 2023[26] - The loss attributable to the company's owners for the six months ended June 30, 2024, was approximately HKD 218.5 million, compared to a loss of about HKD 29.7 million for the same period last year[53] Revenue Breakdown - Customer contract revenue for the six months ended June 30, 2024, was HKD 490,994, a significant increase from HKD 133,382 in the same period of 2023, representing a growth of 267%[13] - Property development revenue was HKD 477,512 for the six months ended June 30, 2024, up from HKD 118,619 in 2023, reflecting a growth of 302%[17] - The property development segment reported revenue of approximately HKD 477.5 million for the six months ended June 30, 2024, compared to HKD 118.6 million for the same period last year[54] - The revenue from property management and security services was HKD 7,078, an increase from HKD 5,861 in the previous year, representing a growth of 21%[17] - The property investment segment reported revenue of approximately HKD 21.6 million for the six months ending June 30, 2024, a slight decrease of HKD 0.2 million compared to HKD 21.8 million in the same period of 2023[56] - The city storage and workspace segment generated revenue of approximately HKD 19.1 million for the six months ending June 30, 2024, down by HKD 0.4 million from HKD 19.5 million in the same period of 2023[57] - The financing segment generated revenue of approximately HKD 1.5 million for the six months ending June 30, 2024, a decrease of HKD 0.5 million from HKD 2.0 million in the same period of 2023[60] - The construction and renovation segment reported revenue of approximately HKD 3.0 million for the six months ending June 30, 2024, compared to HKD 3.2 million in the same period of 2023[61] - The wine business segment generated revenue of approximately HKD 7.3 million for the six months ending June 30, 2024, a decrease from HKD 8.9 million in the same period of 2023[62] Assets and Liabilities - The company's net assets decreased to HKD 1,188,354,000 as of June 30, 2024, down from HKD 1,414,276,000 as of December 31, 2023, indicating a decline in financial stability[6] - Current liabilities totaled HKD 2,066,971,000, a decrease from HKD 2,426,350,000 at the end of the previous year, suggesting improved management of short-term obligations[5] - The total assets as of June 30, 2024, were HKD 3,395,361, a decrease from HKD 4,022,204 as of December 31, 2023[18] - The total liabilities as of June 30, 2024, were HKD 2,207,007, down from HKD 2,607,928 at the end of 2023[18] - The total amount of loans receivable as of June 30, 2024, was HKD 61,284,000, down from HKD 70,139,000 as of December 31, 2023[28] - Trade receivables increased to HKD 7,387 million as of June 30, 2024, compared to HKD 6,888 million as of December 31, 2023, reflecting a growth of approximately 7.3%[34] - The provision for credit losses was HKD 2,201 million for the period ending June 30, 2024, slightly higher than HKD 2,144 million for the previous period, indicating a 2.7% increase[34] - Total borrowings decreased to HKD 1,679,998 million as of June 30, 2024, from HKD 2,068,927 million as of December 31, 2023, representing a reduction of approximately 18.8%[42] - The aging analysis of trade and lease receivables shows that 0 to 30 days overdue receivables decreased to HKD 2,496 million from HKD 3,170 million, a decline of about 21.2%[36] - The company reported a significant decrease in trade payables, which fell to HKD 1,217 million as of June 30, 2024, from HKD 1,906 million as of December 31, 2023, a decrease of approximately 36.3%[37] - The total amount of accrued expenses and other payables decreased to HKD 215,962 million as of June 30, 2024, down from HKD 245,981 million, indicating a decline of about 12.2%[37] - The company’s interest-bearing borrowings included floating rate borrowings of HKD 1,499,449 million as of June 30, 2024, compared to HKD 1,837,112 million as of December 31, 2023, a decrease of approximately 18.4%[44] - The actual interest rate for fixed-rate borrowings remained stable at 18% for both periods, while floating rates ranged from 5.11% to 9.50% as of June 30, 2024, compared to 4.81% to 10.79% previously[45] - The company’s lease receivables decreased to HKD 2,121 million as of June 30, 2024, from HKD 2,361 million, reflecting a decline of approximately 10.2%[34] - The company has a significant amount of deposits and other receivables totaling HKD 35,127 million as of June 30, 2024, down from HKD 36,847 million, a decrease of about 4.7%[34] Financing and Investments - The company has entered into several financing agreements, including a revolving loan of HKD 350 million and another of HKD 205 million, with terms ensuring significant shareholder control[79] - The company capitalized borrowing costs at rates ranging from 3.72% to 13.55% for specific and general borrowings related to property development expenses, with no borrowing costs capitalized during the period[21] - The fair value of the redemption option of the convertible bonds was estimated at HKD 313.7 million as of June 30, 2024[50] - The company issued 3% convertible bonds with a nominal value of HKD 418 million on October 22, 2020, with no maturity date[48] - The group’s foreign currency borrowings as of June 30, 2024, amount to approximately 1.8 billion KRW (approximately HKD 10.2 million), an increase from 0.1 billion KRW (approximately HKD 0.7 million) as of December 31, 2023[71] - The group’s investment properties and properties held for sale as of June 30, 2024, are valued at approximately HKD 725.8 million and HKD 2,295.1 million, respectively[72] Operational Insights - The company has three completed projects and two development projects as of June 30, 2024[54] - The company has made significant progress in its "After Rain" project, successfully selling a large number of residential units[76] - The company remains optimistic about the long-term value of Hong Kong properties despite ongoing economic challenges, including inflation and high interest rates[76] - The company is actively seeking property and related development opportunities in other Asian regions such as Japan and South Korea to diversify its business[76] - The company has established a risk control committee to manage potential risks and uncertainties affecting its business and financial condition[75] - The company acknowledges various risks, including market risk, business risk, and regulatory risk, which could significantly impact its operations and financial performance[75] - The company is committed to adapting to the changing economic environment to seize new opportunities while effectively managing risks[76] Governance and Compliance - The company has established an Audit Committee to comply with Listing Rule 3.21, consisting of three independent non-executive directors[83] - The Audit Committee has reviewed the unaudited condensed consolidated interim results for the six months ended June 30, 2024, and agreed with the accounting principles adopted by the company[84] - The company believes that the current structure, with the Chairman and CEO roles held by the same individual, provides strong and consistent leadership beneficial to the company's overall interests[82] - The company has not engaged in any purchases, sales, or redemptions of its listed securities during the reporting period[81] - The company did not recommend any interim dividends for the six months ended June 30, 2024, nor for the previous period[25] - The group employed 124 staff as of June 30, 2024, down from 133 staff as of December 31, 2023[74] - The group has no significant contingent liabilities as of June 30, 2024, and maintains sufficient cash and available bank financing to meet operational and investment needs[68]
星星集团(01560) - 2024 - 中期业绩