Financial Performance - Revenue for the six months ended June 30, 2024, increased to HK$24,213,000, representing a growth of 6.25% compared to HK$22,788,000 in the same period of 2023[7]. - Other income decreased to HK$6,503,000, down 12.16% from HK$7,407,000 in the previous year[7]. - Operating loss before changes in fair value of investment properties was HK$2,570,000, a significant decline from a profit of HK$12,503,000 in the same period last year[7]. - Loss from changes in fair value of investment properties amounted to HK$12,790,000, compared to a gain of HK$6,046,000 in 2023[7]. - Loss for the period was HK$17,037,000, contrasting with a profit of HK$14,507,000 in the prior year[7]. - Basic loss per share for the period was HK$1.37, compared to earnings per share of HK$1.17 in the same period of 2023[7]. - Finance costs for the period were HK$17,668,000, with no finance costs reported in the previous year[7]. - The company reported a loss of HK$17,037,000 for the six months ended June 30, 2024, compared to a profit of HK$14,507,000 in the same period of 2023, indicating a significant decline in performance[4]. - Other comprehensive expenses for the period totaled HK$2,760,000, which is an increase from HK$1,860,000 in the previous year, reflecting a worsening in fair value changes of equity instruments[4]. - Total comprehensive expense for the period amounted to HK$19,797,000, contrasting with a total comprehensive income of HK$10,997,000 for the same period in 2023, highlighting a negative shift in overall financial health[4]. Assets and Liabilities - Current assets decreased to HK$265,794,000 as of June 30, 2024, down from HK$298,227,000 at the end of 2023, indicating a reduction in liquidity[10]. - Net current assets also fell to HK$233,944,000 from HK$262,086,000, reflecting a decline in the company's short-term financial position[10]. - Total equity decreased to HK$1,802,954,000 as of June 30, 2024, down from HK$1,822,751,000 at the end of 2023, showing a reduction in shareholder value[12]. - Non-current liabilities were reported at HK$724,343,000, a slight decrease from HK$745,076,000, indicating a minor improvement in long-term debt management[12]. - The fair value of investment properties was reported at HK$2,259,580,000, down from HK$2,269,160,000, suggesting a decline in asset valuation[11]. - Cash and cash equivalents decreased to HK$112,881,000 from HK$130,495,000, indicating a reduction in available cash resources[10]. - The company maintained its share capital at HK$681,899,000, with reserves decreasing to HK$1,121,055,000 from HK$1,140,852,000, reflecting changes in retained earnings and other reserves[12]. Cash Flow and Financing - Net cash generated from operating activities decreased to HK$2,977,000 for the six months ended June 30, 2024, compared to HK$15,864,000 in the same period of 2023, representing an 81.2% decline[19]. - Net cash from investing activities was HK$13,240,000 for the six months ended June 30, 2024, significantly lower than HK$84,351,000 in the previous year, indicating a decrease of 84.3%[19]. - Cash and cash equivalents at the end of the period were HK$112,881,000, down from HK$207,415,000 at the end of June 2023, reflecting a 45.5% reduction[19]. - The company incurred interest paid of HK$13,796,000 during the period, with new loans from other borrowings amounting to HK$185,000,000 and repayments of HK$205,000,000[19]. - The Group's total liabilities decreased to HK$27,960,000 as of June 30, 2024, from HK$34,289,000 on December 31, 2023, indicating a reduction of approximately 18.5%[96]. Strategic Focus and Future Outlook - The company is focusing on enhancing its investment property portfolio and exploring new market opportunities for future growth[6]. - Management indicated plans for strategic expansion and potential acquisitions to strengthen market position[6]. - The Group anticipates signs of recovery in the Hong Kong retail property market towards the end of 2024, supported by expected interest rate cuts in the latter half of the year[172]. - The expected rental income from the refurbishment of Concord Square (to be renamed Laneway) is projected to support significant revenue growth in 2025[172]. - The Group will closely monitor market trends and adjust leasing strategies to capitalize on any improvements in the retail market[172]. Corporate Governance and Compliance - The company has complied with the Corporate Governance Code, with certain deviations summarized in the report[179]. - The company confirmed that all Directors fully complied with the required standards set out in the Model Code regarding securities transactions throughout the review period[184]. - The reasons for deviations in corporate governance practices were documented in the Corporate Governance Report in the Annual Report for the financial year ended December 31, 2023[182]. - The company has adopted the Model Code as its code of conduct for securities transactions by Directors[184]. - The company’s audit committee is required to have a minimum of three members as per Listing Rules, which was not met prior to the recent appointment[184]. Employment and Human Resources - As of June 30, 2024, the Group employed 30 persons, a decrease from 31 as of December 31, 2023[172]. - The remuneration of the Chairman and Executive Director, Mr. Patrick Lee Seng Wei, and Executive Director, Mr. Tao Tsan Sang, was increased by approximately 3% effective from January 1, 2024, compared to 2023[185]. - The monthly salary of the Chief Executive and Executive Director, Mr. Lee Shu Yin, was also increased by approximately 3% effective from January 1, 2024, with a bonus of HK$160,000 for the year ended December 31, 2023[185].
亚证地产(00271) - 2024 - 中期财报