Financial Performance - Revenue for the six months ended June 30, 2024, was HK$13,383,000, a decrease of 3.1% compared to HK$13,807,000 for the same period in 2023[6] - Loss before taxation was HK$60,226,000, compared to a profit of HK$1,098,000 in the same period last year[6] - Total comprehensive expense for the period was HK$85,492,000, significantly higher than HK$954,000 in the previous year[6] - Basic and diluted loss per share was HK$15.87, compared to HK$0.03 in the prior period[6] - The Group reported a loss before taxation of HK$61,271,000 for the six months ended June 30, 2024, compared to a loss of HK$108,000 for the same period in 2023[26] - The Group recorded a net loss for the period of approximately HK$61.3 million, compared to a net loss of approximately HK$108,000 in 2023, excluding the impact of the net decrease in fair value reserves from the Fund[75] - The total comprehensive expense for the Group attributable to owners amounted to approximately HK$85.5 million, significantly higher than approximately HK$1.0 million in 2023, reflecting market conditions in Hong Kong's commercial retail and residential investment property sectors[79] Assets and Liabilities - Non-current assets decreased to HK$866,733,000 from HK$952,993,000 as of December 31, 2023[7] - Current assets increased to HK$76,959,000 from HK$45,372,000 as of December 31, 2023[7] - Total equity decreased to HK$796,798,000 from HK$882,290,000 as of December 31, 2023[7] - As of June 30, 2024, the total equity of the company is HK$796,798,000, a decrease from HK$933,498,000 as of June 30, 2023, reflecting a loss for the period[9] - The carrying value of investment properties in Hong Kong decreased from HK$851,340,000 as of December 31, 2023, to HK$783,460,000 as of June 30, 2024, representing a decline of approximately 8%[32] - The Group's total lease and other receivables amounted to HK$1,501,000 as of June 30, 2024, compared to HK$1,806,000 as of December 31, 2023, reflecting a decrease of approximately 17%[42] - Bank loans as of June 30, 2024, totaled HK$134,599,000, an increase from HK$100,581,000 as of December 31, 2023[50] Cash Flow - The net cash from operating activities for the six months ended June 30, 2024, is HK$7,433,000, compared to HK$6,328,000 for the same period in 2023, indicating an increase of approximately 17.5%[11] - The company reported a net increase in cash and cash equivalents of HK$32,703,000 for the six months ended June 30, 2024, compared to a decrease of HK$7,085,000 in the same period of 2023[11] - The company’s investment activities resulted in a net cash outflow of HK$5,005,000 for the six months ended June 30, 2024, compared to an inflow of HK$915,000 in the same period of 2023[11] - The company’s financing activities generated a net cash inflow of HK$30,275,000 for the six months ended June 30, 2024, compared to a net cash outflow of HK$14,328,000 in the same period of 2023[11] Investment Properties - The fair value of investment properties decreased to HK$783,460,000 as of June 30, 2024, down from HK$851,340,000 at the beginning of the period, representing a net decrease of 8%[28] - The Group's investment properties are measured using the fair value model and classified as investment properties, with no new acquisitions during the reporting period[34] - The Group's investment property portfolio consisted of 38 properties located in Hong Kong, with a total market value of approximately HK$783.5 million, down from HK$851.3 million as of December 31, 2023, reflecting a net decrease in fair value of approximately HK$67.9 million[71] - The Group's gross rental income for the six months ended June 30, 2024, was approximately HK$13.4 million, a decrease of about 3.1% compared to HK$13.8 million in the same period of 2023, primarily due to increased rental concessions granted to tenants[71] Share Capital and Options - The issued and fully paid share capital remained unchanged at HK$3,862,000 as of June 30, 2024[56] - The share option scheme allows for a maximum of 70,670,156 shares to be issued, which represents approximately 18.3% of the issued shares as of the date of the interim report[95] - The outstanding share options as of January 1, 2024, were 44,024,027[101] - The company has not granted any share options under the Scheme during the Period[100] Corporate Governance - The company has adopted the Corporate Governance Code and has complied with all applicable provisions during the six months ended June 30, 2024[123] - The audit committee, comprising three independent non-executive directors, has reviewed the interim report for the six months ended June 30, 2024[126] - The company has complied with the Model Code for Securities Transactions by Directors during the six months ended June 30, 2024[124] Market Outlook - The management remains optimistic about the outlook of the Hong Kong property leasing market despite challenges in the retail sector due to low consumer confidence and increased competition[78] - The Group may look beyond the Hong Kong region for investment opportunities to maintain competitiveness[79] - The government has implemented measures to stimulate retail demand, including expanding the Individual Visit Scheme and raising duty-free quotas for Mainland visitors, which may enhance Hong Kong's attractiveness as a tourist destination[78]
永利地产发展(00864) - 2024 - 中期财报