Financial Performance - For the six months ended June 30, 2024, the net rental income was HKD 6,027,000, compared to HKD 1,901,000 for the same period in 2023, representing a significant increase of 216%[2] - The total comprehensive loss for the period was HKD 506,910,000, compared to a loss of HKD 17,564,000 in the same period last year, indicating a substantial increase in losses[2] - Basic loss per share for the current period was HKD (25.05), compared to HKD (1.18) for the same period in 2023, reflecting a deterioration in earnings performance[2] - Total revenue for the six months ended June 30, 2024, was HKD 4,024,000, while the total revenue for the same period in 2023 was HKD 6,746,000, indicating a decline of approximately 40.3%[12] - The loss before tax for the six months ended June 30, 2024, was HKD 17,208,000, compared to a loss of HKD 506,910,000 for the same period in 2023, showing a significant improvement[12] - The company reported a loss attributable to owners of approximately HKD 272,900,000 for the current period, compared to a loss of HKD 12,800,000 in 2023[38] - The total comprehensive loss for the group was approximately HKD 506,900,000, significantly higher than HKD 17,600,000 in the previous year, primarily due to fair value losses on investment properties and increased financial costs[38] Asset and Liability Management - Non-current assets, including investment properties, were valued at HKD 846,600,000 as of June 30, 2024, down from HKD 1,331,800,000 as of December 31, 2023[3] - Current liabilities increased to HKD 680,134,000 from HKD 661,598,000, indicating a rise in financial obligations[3] - The company's equity attributable to owners decreased to HKD 76,273,000 from HKD 349,141,000, showing a decline in shareholder value[3] - The total assets net value was HKD 187,374,000 as of June 30, 2024, compared to HKD 694,284,000 at the end of 2023, indicating a significant reduction in asset value[3] - The group has a net current liability of HKD 675,300,000, primarily consisting of bank borrowings of HKD 400,288,000 and a non-controlling interest loan of HKD 152,700,000 maturing on April 30, 2025[7] - The total bank borrowings as of June 30, 2024, amounted to HKD 410,551,000, an increase from HKD 400,288,000 in the previous year[28] - Approximately HKD 760,000,000 of investment properties were pledged as collateral for bank borrowings of about HKD 400,300,000 as of June 30, 2024, down from HKD 1,230,000,000 and HKD 410,600,000 respectively on December 31, 2023[51] Cash Flow and Operating Activities - The net cash generated from operating activities for the six months ended June 30, 2024, was HKD 13,177,000, compared to HKD 1,870,000 for the same period in 2023, representing a significant increase[5] - Cash and cash equivalents decreased by HKD 656,000, resulting in a balance of HKD 1,014,000 as of June 30, 2024, compared to HKD 5,797,000 at the end of the previous year[5] - The group incurred interest expenses of HKD 23,512,000 for the six months ended June 30, 2024, compared to HKD 11,044,000 for the same period in 2023, indicating increased financing costs[5] - The company has not reported any income tax expenses for the current period, while it incurred HKD (356,000) in the previous year, indicating a change in tax obligations[2] Investment Properties and Market Strategy - The fair value loss on investment properties for the six months ended June 30, 2024, was HKD 485,200,000, while there was no such loss reported for the same period in 2023[13] - The fair value of investment properties as of June 30, 2024, was HKD 846,600,000, down from HKD 1,331,800,000 as of January 1, 2023, reflecting a decrease of approximately 36.3%[20] - The group aims to reduce the vacancy rate of its investment properties through a reassessment of its marketing strategy[8] - The group is considering the sale of certain investment properties to strengthen its liquidity position[8] - The company continues to review its investment property portfolio and seeks potential acquisition and/or disposal opportunities[41] - The group plans to continue reviewing its investment properties and tenant mix to ensure stable income and capital growth[44] Corporate Governance and Compliance - The company has not engaged in any purchase, sale, or redemption of its listed securities during the period[60] - The company has adopted the standard code for directors' securities transactions and confirmed compliance during the period[61] - The company has adhered to all corporate governance code provisions, with a noted deviation regarding the separation of the roles of Chairman and CEO[62] - The Audit Committee has been established by the Board of Directors, consisting of three independent non-executive directors[64] - The Audit Committee is responsible for reviewing the accounting principles and practices adopted by the company[64] Employment and Management - The remuneration for key management personnel was HKD 696,000 for the six months ended June 30, 2024, down from HKD 967,000 in 2023[34] - The company employed 7 employees in Hong Kong as of June 30, 2024, down from 8 employees on December 31, 2023[55]
远东控股国际(00036) - 2024 - 中期业绩