Financial Performance - Revenue for the six months ended June 30, 2024, was HKD 56,461,000, a decrease of 37.5% compared to HKD 90,483,000 for the same period in 2023[2] - Gross profit for the period was HKD 34,308,000, down 18.2% from HKD 41,908,000 year-on-year[2] - Operating loss for the six months was HKD 6,174,000, compared to an operating profit of HKD 4,968,000 in the previous year[2] - The net loss attributable to the company's owners was HKD 10,591,000, an increase of 22.4% from HKD 8,655,000 in the same period last year[2] - Total comprehensive loss for the period was HKD 61,575,000, compared to HKD 15,589,000 in the previous year, reflecting a significant increase in losses[3] - The basic and diluted loss per share for the period was HKD 0.0988, compared to HKD 0.0927 in the same period last year[2] - The total segment profit for the six months ended June 30, 2024, was HKD 34,308,000, down 18% from HKD 41,908,000 in the previous year[13] - The total comprehensive loss before tax for the six months ended June 30, 2024, was HKD 11,535,000, compared to a loss of HKD 8,026,000 in 2023, representing an increase in loss of approximately 43.5%[14] - For the six months ending June 30, 2024, the group reported revenue of approximately HKD 56,461,000 and a loss of about HKD 11,589,000, compared to revenue of HKD 90,483,000 and a loss of HKD 8,026,000 in the same period of 2023[55] Assets and Liabilities - Non-current assets as of June 30, 2024, amounted to HKD 764,958,000, a decrease from HKD 784,719,000 as of December 31, 2023[4] - Current assets totaled HKD 926,758,000, down from HKD 943,434,000 at the end of 2023[4] - Total liabilities increased to HKD 1,101,699,000 as of June 30, 2024, compared to HKD 960,686,000 at the end of 2023[5] - The company's equity attributable to owners decreased to HKD 310,151,000 from HKD 371,726,000 at the end of the previous year[6] - The total assets as of June 30, 2024, were HKD 1,691,716,000, a decrease from HKD 1,728,153,000 as of December 31, 2023, indicating a reduction of about 2.1%[14] - The total liabilities increased to HKD 1,381,565,000 in 2024 from HKD 1,356,427,000 in 2023, marking an increase of approximately 1.9%[14] - As of June 30, 2024, the group's total assets were approximately HKD 1,691,716,000, with total liabilities of about HKD 1,381,565,000, resulting in a debt-to-equity ratio of 78%[57][58] Cash Flow - For the six months ended June 30, 2024, the net cash generated from operating activities was HKD 57,993,000, a decrease of 51% compared to HKD 118,779,000 for the same period in 2023[8] - The net cash used in investing activities was HKD (466,000), compared to HKD (190,000) in the same period last year[8] - The net cash used in financing activities was HKD (19,436,000), a decrease from HKD (29,360,000) in the previous year[8] - The cash and cash equivalents as of June 30, 2024, amounted to HKD 9,518,000, an increase from HKD 8,102,000 as of June 30, 2023[8] Property Development - The revenue from external customers for property development was HKD 30,116,000, representing an increase of 14% from HKD 26,286,000 in the same period last year[13] - The segment assets for property development were HKD 1,114,176,000, while supermarket retail segment assets were HKD 4,377,000, totaling HKD 1,118,553,000[13] - The company is required to commence construction of the Luoyang Property by June 2017, or face penalties of 0.1% of the land use rights price per day for delays[32] - The total area for development at the Luoyang Property is 173,724.12 square meters, with a book value of approximately HKD 66,094,000 as of June 30, 2024[32] - The group received a construction land permit for its investment property in Luoyang on September 27, 2023, after submitting revised plans[51] - The development of properties in Zhuhai is part of the group's commercial real estate project planned for 2020, with a cautious approach to market dynamics influencing future decisions[52] Governance and Compliance - The company chairman also serves as the CEO, which deviates from the corporate governance code that requires separation of these roles[62] - The non-executive directors do not have a specific term, which deviates from the governance code requiring fixed terms[62] - The company believes its current governance measures are sufficient despite deviations from certain code provisions[62] - The company will review its governance structure periodically to ensure compliance with listing rules[62] - The audit committee consists of three independent non-executive directors: Mr. Chan Yiu Tung, Mr. Cheung Ching, and Mr. Leung Kwai Wah[70] Legal and Financial Obligations - The company has a legal liability involving a lawsuit for RMB 5.79 million related to the acquisition of Guangzhou Lianwei Property Management Co., Ltd. and Guangzhou Youchang Commercial Management Co., Ltd.[44] - The company is appealing a court decision regarding the aforementioned legal liability, seeking a review from the higher court[44] - The principal of the loan from Guangzhou Rural Commercial Bank must be repaid in eighty-four installments starting from June 19, 2021, and will mature on June 18, 2028[40] - Guangdong Changyang signed a loan agreement with Guangzhou Rural Commercial Bank for a loan amount of RMB 320,000,000 (approximately HKD 352,640,000), with a term of twelve years[41] - Guangzhou Bank issued a loan of RMB 160,000,000 (approximately HKD 195,920,000) to Zhuhai Tengshun, with a term of forty-eight months[40] Market Conditions - The supermarket business in mainland China faced severe challenges in the first half of 2024, with significant revenue decline due to intense competition, leading the group to cautiously reduce its involvement in this sector[50] - The rental and property management business in Guangzhou has seen a slight increase in profit compared to the same period last year, with rental income expected to be maintained in the coming year[49] Shareholder Information - Mr. Han Junran holds 37,733,255 shares, representing 32.18% of the issued share capital through a controlled corporation[64] - Qilu International Funds SPC holds 59,794,972 shares, accounting for 50.99% of the company's shares as a secured creditor[66] - The company completed a share consolidation on April 8, 2022, merging every fifty shares of HKD 0.004 into one share of HKD 0.20[43] - The company issued 30,701,754 new shares at HKD 0.66 each to settle a debt of approximately HKD 17,500,000, resulting in a related loss of approximately HKD 2,764,000 recognized in the income statement[43] Future Outlook - The group has set "Every Day, Life, New City" as the future business development theme since 2019, aiming to integrate various businesses to meet daily life needs[48] - The group is closely monitoring fluctuations in the RMB exchange rate to assess foreign exchange risks[59] - The company has adopted the standard code for securities trading for directors, confirming compliance as of June 30, 2024[69]
新城市建设发展(00456) - 2024 - 中期业绩