WING ON CO(HK:00289)2024-09-24 02:46Financial Performance - For the six months ended June 30, 2024, the group's revenue was HKD 480.0 million, a decrease of 9.6% compared to HKD 530.8 million in 2023[8]. - The group recorded a loss attributable to shareholders of HKD 239.6 million, compared to a profit of HKD 274.2 million in 2023, primarily due to a valuation loss on investment properties of HKD 515.8 million[8]. - The basic earnings per share were HKD 0.825, down from HKD 0.943 in 2023, while the basic earnings per share excluding the valuation loss were HKD 0.870, slightly down from HKD 0.907 in 2023[8]. - The company reported a loss of HKD 242,859,000 for the six months ended June 30, 2024, compared to a profit of HKD 273,594,000 for the same period in 2023[25]. - Total comprehensive loss for the period amounted to HKD 327,177,000, a significant decrease from the total comprehensive income of HKD 184,592,000 in the previous year[25]. - The basic and diluted loss per share for the six months ended June 30, 2024, was HKD 0.825, compared to earnings of HKD 0.943 per share in 2023[24]. Dividends and Shareholder Returns - The board declared an interim dividend of HKD 0.32 per share, totaling HKD 92.812 million, compared to HKD 0.34 per share and HKD 98.833 million in 2023[8]. - The interim dividend declared for the six months ended June 30, 2024, is HKD 92,812,000, down from HKD 98,833,000 for the same period in 2023[59]. - The company repurchased a total of 377,000 shares at a total cost of HKD 4,489,000 during the six months ended June 30, 2024[62]. Assets and Liabilities - As of June 30, 2024, total equity was HKD 17,853.4 million, a decrease of 2.7% from HKD 18,355.8 million as of December 31, 2023[9]. - Non-current assets decreased to HKD 14,301,104,000 as of June 30, 2024, down from HKD 14,897,770,000 at the end of 2023, reflecting a decline of approximately 4%[26]. - Current assets also saw a decline, totaling HKD 14,739,693,000 compared to HKD 15,367,453,000 at the end of 2023, representing a decrease of about 4%[26]. - Total assets less current liabilities decreased to HKD 18,755,323,000 from HKD 19,306,424,000, a decline of about 3%[27]. - The company's net current assets increased to HKD 4,015,630,000, up from HKD 3,938,971,000, indicating a growth of approximately 2%[27]. - The company's total liabilities increased significantly, with trade and other payables showing a notable rise in overdue amounts[58]. Operational Performance - The department store business recorded revenue of HKD 272.2 million, a decrease of 16.6% from HKD 326.3 million in the same period of 2023[14]. - The department store business incurred an operating loss of HKD 27.0 million, compared to a profit of HKD 4.7 million in 2023, primarily due to the revenue decline[14]. - The overall retail market in Hong Kong remains challenging, with a significant decline in retail sales impacting the group's performance despite promotional efforts[13]. - The group anticipates continued challenges in the department store business for the remainder of 2024, with no signs of improvement in the local retail atmosphere[19]. Investment and Income - The group's property investment income for the six months ended June 30, 2024, was HKD 192.5 million, a slight increase from HKD 192.2 million in 2023[15]. - Revenue from commercial investment properties in Hong Kong decreased by 4.8% to HKD 143.8 million, primarily due to reduced rental rates and a slight decline in average occupancy rate to approximately 91%[15]. - The income from commercial office properties in Melbourne increased by 18.4% to HKD 49.6 million, with a stable occupancy rate of about 85%[15]. - The investment portfolio generated income of HKD 127.8 million, up from HKD 93.0 million in 2023, mainly due to unrealized gains of HKD 79.1 million from securities revalued to fair value[17]. - The total value of the investment portfolio as of June 30, 2024, was HKD 1,986.3 million, an increase from HKD 1,872.4 million as of December 31, 2023[17]. Employee and Management Costs - The group had a total of 523 employees as of June 30, 2024, down from 543 employees in 2023[18]. - Employee costs (excluding directors' remuneration) increased to HKD 94,912,000 from HKD 87,815,000 year-on-year[45]. - The total remuneration for key management personnel for the six months ended June 30, 2024, is HKD 29,462,000, compared to HKD 17,043,000 for the same period in 2023[74]. Fair Value and Accounting - The fair value loss on investment properties amounted to HKD 515,758,000, compared to a fair value gain of HKD 13,791,000 in 2023[51]. - The company expects to continue evaluating its investment properties and may adjust valuations based on market conditions[51]. - The company did not adopt any new accounting standards or interpretations that would have a significant impact on the financial statements[36]. Shareholder Information - As of June 30, 2024, the total equity held by directors in the company amounts to 3,000,000 shares, representing 1.03% of the issued voting shares[80]. - The largest shareholder, 永安國際集團有限公司, holds 180,545,138 shares, accounting for 62.249% of the issued voting shares[85]. - The total equity held by 郭志標 is 1,508,298 shares, which is 0.520% of the issued voting shares[80]. - The equity held by 郭志桁 totals 649,050 shares, representing 0.224% of the issued voting shares[80].