Financial Performance - Revenue for the six months ended June 30, 2024, was HKD 93,698,000, a decrease of 15.1% compared to HKD 110,349,000 for the same period in 2023[1]. - Gross profit increased to HKD 31,705,000, up 19.5% from HKD 26,640,000 year-on-year[1]. - Operating loss improved to HKD (7,305,000), a reduction of 33.0% from HKD (11,027,000) in the previous year[2]. - Total comprehensive loss for the period was HKD (64,575,000), down 38.0% from HKD (104,182,000) in the same period last year[3]. - The company reported a basic loss per share of HKD (210.7), an improvement from HKD (253.7) in the previous year[2]. - The group recorded a loss attributable to shareholders of approximately HKD 25,808,000, an improvement from a loss of HKD 31,068,000 in the same period last year[36]. - The gross profit margin improved from approximately 24.1% for the six months ended June 30, 2023, to approximately 33.8% for the same period in 2024[36]. Assets and Liabilities - Non-current assets totaled HKD 1,864,956,000, a decrease of 2.7% from HKD 1,916,501,000 as of December 31, 2023[4]. - Current liabilities decreased to HKD 259,709,000 from HKD 293,625,000, reflecting a reduction of 11.5%[6]. - Cash and cash equivalents were HKD 35,369,000, down from HKD 40,925,000, indicating a decrease of 13.9%[5]. - The net asset value was HKD 1,087,721,000, down from HKD 1,152,296,000, representing a decline of 5.6%[6]. - Total assets of the group as of June 30, 2024, amounted to HKD 2,308,595,000, while total liabilities were HKD 503,769,000, resulting in a net asset position[15]. - Total current assets as of June 30, 2024, were approximately HKD 646,655,000, down from HKD 715,847,000 as of December 31, 2023[38]. - The group's total assets as of June 30, 2024, were approximately HKD 2,511,611,000, compared to HKD 2,632,348,000 as of December 31, 2023[38]. - The group's interest-bearing borrowings totaled approximately HKD 619,368,000 as of June 30, 2024, down from HKD 641,305,000 as of December 31, 2023[38]. - The group's debt-to-equity ratio was approximately 132% as of June 30, 2024, compared to 127% as of December 31, 2023[38]. Operational Highlights - The company continues to focus on property development and investment, with no new product launches or acquisitions reported during this period[7]. - The group incurred a loss before tax of HKD 34,155,000 for the six months ended June 30, 2024, compared to a loss of HKD 44,761,000 for the same period in 2023, indicating an improvement of approximately 23.6%[14]. - The group plans to sell non-core assets to reduce leverage and optimize its debt structure, aiming to lower financing costs and enhance financial stability[32]. - The group aims to reduce operating costs and improve operational efficiency in response to external economic uncertainties[33]. - The group will continue to seek new market opportunities through diversification to achieve long-term goals[34]. Legal and Compliance - The company is currently involved in several legal disputes, but management believes these will not have a significant impact on operations[28]. - The company reported a legal provision of HKD 46,382,000 related to a legal case, down from HKD 48,522,000, a decrease of 4.4%[25]. - The company has made a further provision of approximately HKD 342,000 related to a legal case as of June 30, 2024[28]. - The company has not applied new or revised Hong Kong Financial Reporting Standards that have been issued but are not yet effective, and currently assesses their potential impact on operations[3]. Shareholder Information - The group did not declare or propose any dividends for the six months ended June 30, 2024, consistent with the previous year[22]. - No interim dividend has been recommended for the reporting period[51]. - The company completed a share consolidation on April 26, 2024, merging every 20 shares of HKD 0.01 into one share of HKD 0.20[27]. Audit and Governance - The audit committee was established on August 4, 1999, and its latest terms of reference were adopted on January 1, 2019[55]. - The audit committee's main responsibilities include overseeing the integrity of the company's annual and interim reports, reviewing significant reporting judgments, and assessing the effectiveness of the group's risk management systems[55]. - The company has implemented corrective measures based on the internal control consultant's recommendations, which have strengthened the internal control of business operations[57]. - No significant post-reporting events have occurred within the group from the reporting period until the date of this announcement[57]. Employee and Staffing - The group employed 134 staff as of June 30, 2024, with employee costs amounting to HKD 9,691,000, reflecting a 5.0% increase compared to the previous year[48]. Financial Instruments - The company has not implemented any foreign currency hedging policies and will monitor foreign currency risks closely[43]. - The company has extended the repayment period for old convertible bonds to June 30, 2024, without defaulting on repayments during the interim[41]. - The company has conditionally agreed to issue convertible bonds with a principal amount ranging from HKD 100,869,000 to HKD 101,912,000, with a 6% interest rate over a 36-month term[41]. - The outstanding principal amount of the old convertible bonds was HKD 95,896,475.43, with accrued interest of approximately HKD 4,973,130.08, leading to the issuance of new convertible bonds totaling HKD 100,969,093.34[41]. - Upon full exercise of the conversion rights at a conversion price of HKD 2.6 per share, the subscriber will receive 38,834,266 new ordinary shares, increasing their ownership from approximately 55.25% to 89.27%[41].
钧濠集团(00115) - 2024 - 中期业绩