Financial Performance - Revenue for the six months ended June 30, 2024, was HK$23,767,000, a decrease of 6.5% compared to HK$25,425,000 in the same period of 2023[7]. - Gross profit for the period was HK$8,211,000, down 24.3% from HK$10,846,000 in the previous year[7]. - Loss before income tax was HK$24,965,000, compared to a loss of HK$22,240,000 in the same period last year[7]. - Loss for the period attributable to owners of the Company was HK$24,079,000, an increase from HK$22,324,000 in 2023[8]. - Basic and diluted loss per share attributable to owners of the Company was HK(7.38) cents, compared to HK(6.85) cents in the previous year[8]. - Total comprehensive income for the period was HK$(24,553,000), compared to HK$(21,629,000) in 2023[8]. - The company reported a loss for the period of HK$24,079,000, compared to a loss of HK$502,000 from non-controlling interests, indicating a significant increase in losses[13]. - The total comprehensive income for the period was reported as a loss of HK$24,051,000, compared to a loss of HK$24,079,000 for the previous period[13]. - The Group recorded a net loss of HK$24,581,000, an increase of 10.5% from a loss of HK$22,240,000 in 1H2023[59]. Assets and Liabilities - As of June 30, 2024, total assets less current liabilities amounted to HK$237,731,000, a decrease from HK$264,296,000 as of December 31, 2023, representing a decline of approximately 10%[11]. - Net current liabilities increased to HK$96,813,000 from HK$80,842,000, indicating a rise of about 20%[11]. - The company's net assets decreased to HK$227,921,000 from HK$252,474,000, reflecting a reduction of approximately 10%[11]. - Total equity attributable to the owners of the company was HK$228,307,000, down from HK$252,358,000, a decline of around 9.5%[11]. - Cash and bank balances decreased to HK$4,216,000 from HK$11,690,000, a drop of approximately 64%[11]. - Financial assets at fair value through other comprehensive income decreased to HK$354,000 from HK$807,000, a decline of about 56%[11]. - The Group's total liabilities decreased to HK$155,870,000 as of June 30, 2024, from HK$165,273,000 at the end of 2023, a decline of approximately 5.5%[34]. - The Group's total equity was HK$227,921,000, with fixed rate liabilities of HK$5,186,000 and floating rate liabilities of HK$127,186,000, representing 2% and 56% of total equity respectively, leading to a gearing ratio of approximately 3%[71]. Segment Performance - The Hair Styling segment generated revenue of HK$6,520,000, down from HK$8,849,000 in 2023, reflecting a decrease of about 26.2%[31]. - The Hospitality Services segment reported revenue of HK$14,200,000, slightly increasing from HK$13,505,000, marking an increase of approximately 5.1%[31]. - The Property Investments segment generated revenue of HK$1,578,000, slightly increasing from HK$1,516,000 in 2023, representing an increase of approximately 4.1%[31]. - The Money Lending segment reported revenue of HK$41,000, consistent with HK$37,000 in 2023, showing no significant change[31]. - The hair styling business reported a turnover of HK$6,520,000, a decrease of 26% compared to the same period last year, with service income down 27% due to the resignation of a high-earning stylist[63]. - The hospitality service business segment achieved a turnover of HK$14,200,000, reflecting a 5% increase year-on-year, but recorded a net loss of HK$547,000 compared to a profit of HK$1,532,000 in the prior year[64]. Cash Flow and Operating Activities - Net cash generated from operating activities for the six months ended June 30, 2024, was HK$3,832,000, compared to a cash outflow of HK$7,019,000 in the same period of 2023[17]. - The company reported a net decrease in cash and cash equivalents of HK$7,474,000 for the six months ended June 30, 2024[17]. - Cash and cash equivalents at June 30, 2024, were HK$4,216,000, down from HK$9,304,000 at the same date in 2023[17]. Corporate Governance - The Audit Committee has reviewed the unaudited consolidated results for the six months ended June 30, 2024[4]. - The financial statements are prepared in accordance with Hong Kong Accounting Standards, ensuring compliance with local regulations[21]. - The company has complied with the Code on Corporate Governance Practices during the review period, with noted deviations regarding the roles of chairman and chief executive[97][98]. - The roles of the Chairman and CEO are not separated, with Mr. Zeng serving as both, which the board believes ensures effective decision-making[101]. - All directors have confirmed compliance with the Model Code for securities transactions during the six-month period ending June 30, 2024[103]. Market and Economic Conditions - The company expects inbound tourism to increase in 2024, supported by planned infrastructure and new tourist attractions, which will benefit the hotel sector[84]. - The Greater Bay Area opportunity is anticipated to significantly enhance business events and general tourism in the region[84]. - The company’s business growth is heavily reliant on the revival of inbound tourism post-pandemic[84]. - Challenges are anticipated for Hong Kong's tourism due to economic and geopolitical headwinds, including the proposed Hotel Accommodation Tax starting January 1, 2025, which may burden hotel operators[86]. - The current Federal interest rate is between 5.25% and 5.5%, unchanged since July 2023, impacting consumer spending and business growth negatively[83]. Future Plans and Strategies - The company is focusing on improving operational efficiency and exploring new market opportunities to enhance future performance[4]. - The hair styling business aims to attract new talents to compensate for the loss of service income and will focus on sustainability and personalized experiences through technology[64]. - The Group plans to diversify the hair styling segment's income stream by expanding hair extension and hair piece services, addressing hair loss issues[64]. - The company plans to explore value-enhancing opportunities, including relocating operations to newer buildings in favorable locations and expanding hospitality services to Mainland China[86].
世纪建业(00079) - 2024 - 中期财报