Financial Performance - For the first half of 2024, the group's revenue was HKD 196,396,000, a decrease of approximately 11.6% compared to HKD 222,264,000 in the same period last year[5] - The cement business generated revenue of HKD 84,359,000, down about 22.5% from HKD 108,809,000 year-on-year[5] - The group achieved an unaudited profit attributable to equity holders of HKD 34,509,000, an increase of approximately 16.1% from HKD 29,729,000 in the same period last year[5] - Gross profit for the same period was HKD 73,790,000, representing an increase of 14.2% from HKD 64,521,000 in 2023[18] - The group reported a profit before tax of HKD 46,301,000, up 11.6% from HKD 41,593,000 in the previous year[18] - Net profit for the period was HKD 34,565,000, an increase of 16.7% compared to HKD 29,595,000 in 2023[19] - Basic and diluted earnings per share increased to HKD 0.069 from HKD 0.059, reflecting a growth of 16.9%[18] - The group reported a profit for the period of HKD 34,565,000, an increase from HKD 29,595,000 in the same period last year[38] - The adjusted profit before tax was HKD 46,301,000, compared to HKD 41,593,000 in the previous year[38] Cement Business - The group's cement plant in Vietnam recorded a sales volume of approximately 213,000 tons, a decrease of about 17.1% from 257,000 tons in the same period last year[6] - The after-tax loss from the cement business was HKD 4,663,000, a reduction of about 62% compared to the after-tax loss of HKD 12,272,000 in the previous year[6] - The outlook for the second half of 2024 remains challenging for the cement business due to ongoing weakness in the real estate and construction sectors in Vietnam[4] - Cement sales amounted to HKD 84,359,000, down 22.5% from HKD 108,809,000 in the previous year[41] - The cement products segment reported a loss of HKD 6,849,000, while the property investment segment showed a profit of HKD 60,301,000[38] Currency Impact - The Vietnamese dong depreciated approximately 4.7% against the Hong Kong dollar from December 31, 2023, and about 7.7% compared to June 30, 2023, impacting revenue and profit when converted to HKD[3] - The group plans to reduce deposits in Vietnamese dong to mitigate the impact of currency depreciation on assets[3] - The group faced a foreign exchange loss of HKD 3,589,000 due to a 4.66% depreciation of the Vietnamese Dong against the Hong Kong Dollar[15] - The group recorded a foreign exchange loss of HKD 54,221,000 for the period, compared to a gain of HKD 4,257,000 in 2023[19] Hotel Business - The hotel business in Hong Kong saw a 64% increase in visitors, but the performance began to decline in Q2 2024 compared to the previous year[4] - The hotel business contributed HKD 28,938,000 in revenue for the first half of 2024, a slight decrease of 0.4% compared to the same period last year[10] - The average occupancy rate of the Hong Kong Tuen Mun Belte Hotel was 88.2%, down from 92% year-on-year, while the average room rate increased by 4.3%[10] - The average daily room rate for Hong Kong hotels fell by 9% in Q2 2024 compared to the same period last year[10] - The "LE CARRÉ HUE" hotel project in Vietnam is expected to commence operations by the end of 2024 to early 2025, with 50 rooms and retail areas[12] Economic Environment - In the first half of 2024, Vietnam's GDP growth rate reached 6.4%, but office space demand in Ho Chi Minh City remained weak due to high interest rates and economic uncertainty[9] - The supply of office space in Ho Chi Minh City increased by approximately 10%, leading to a vacancy rate of about 20% for Grade A offices, the highest in the past decade[9] - The rental rate for Grade A offices decreased by approximately 2-3% in Q2 2024 compared to the previous year[9] - The occupancy rate of the Saigon Trade Center reached 80% as of June 30, 2024, up from 78% at the end of 2023, with moderate growth in average rental rates and revenue[9] Cash Flow and Assets - As of June 30, 2024, the group's cash and bank balances amounted to HKD 497,984,000, an increase from HKD 465,369,000 at the end of 2023[13] - Operating cash flow generated was HKD 73,983,000, a decrease from HKD 81,196,000 in the previous year, reflecting a decline of about 9%[25] - The company experienced a net cash inflow from operating activities of HKD 58,725,000, down from HKD 66,646,000, indicating a decrease of approximately 12%[25] - Total assets less current liabilities as of June 30, 2024, were HKD 2,560,768,000, a decrease from HKD 2,598,498,000 at the end of 2023[22] - Non-current assets totaled HKD 2,089,856,000, down from HKD 2,151,990,000 at the end of 2023[21] Dividends and Shareholder Information - The company paid dividends of HKD 10,052,000 during the period, consistent with the previous year[25] - The interim dividend declared for the six months ended June 30, 2024, is HKD 0.02 per share, consistent with the interim dividend of HKD 0.02 per share for the same period in 2023[61] - As of June 30, 2024, CC (Holdings) Limited held 36,912,027 shares, representing 7.34% of the issued share capital[67] - The Luks Family (PTC) Limited held 272,824,862 shares, accounting for 54.29% of the issued share capital as of June 30, 2024[67] - The total number of shares held by Zheng Xiang was 58,200,827, which is 11.58% of the issued share capital[63] Governance and Compliance - The company has complied with the corporate governance code, except for deviation from code provision B.2.2, which allows the chairman to serve without rotation due to strategic importance[69] - The audit committee consists of three independent non-executive directors who reviewed the accounting principles and internal controls for the six months ending June 30, 2024[72]
陆氏集团(越南)(00366) - 2024 - 中期财报