Financial Performance - For the six months ended June 30, 2024, the Group recorded revenue of approximately HK$6.7 million, representing an increase of approximately 68% compared to HK$4.0 million in the corresponding period in 2023[8]. - The Group's loss attributable to owners for the Period was approximately HK$272.9 million, a significant increase from HK$12.8 million in 2023[8]. - The total comprehensive loss for the Group for the Period was approximately HK$506.9 million, compared to HK$17.6 million in 2023, primarily due to fair value losses on investment properties and increased finance costs[8]. - The Group recorded rental income of approximately HK$6.7 million for the Period, compared to approximately HK$4.0 million in 2023[8]. - Revenue for the six months ended June 30, 2024, was HK$6,746,000, compared to HK$4,024,000 for the same period in 2023, representing a 67.5% increase[51]. - Net rental income increased to HK$6,027,000 from HK$1,901,000, marking a 216.5% rise year-over-year[51]. - Loss before income tax for the period was HK$506,910,000, compared to a loss of HK$17,208,000 in the previous year, indicating a significant increase in losses[51]. - Basic loss per share for the period was HK$25.05, compared to HK$1.18 for the same period in 2023[51]. Investment Properties - The carrying amount of the Group's investment properties was approximately HK$846.6 million as of June 30, 2024, down from approximately HK$1,331.8 million as of December 31, 2023[8]. - The Group's investment properties are classified as Level 3 in the fair value hierarchy as of June 30, 2024[112]. - The fair value loss of investment properties recognized in profit and loss for the period was HK$485,200,000, compared to no loss in the previous year[116]. - The fair value of investment properties as of June 30, 2024, was HK$846,600,000, down from HK$1,331,800,000 as of December 31, 2023[116]. Financial Position - The gearing ratio increased to 776% as of June 30, 2024, from 169.1% as of December 31, 2023, primarily due to a decrease in equity attributable to owners of the Company[25]. - The total equity attributable to owners of the Company decreased to HK$76,273 from HK$349,141 as of January 1, 2024, reflecting a significant decline of approximately 78.1%[55]. - The company had total liabilities of HK$680,134 as of June 30, 2024, compared to HK$661,598 at the end of 2023, reflecting an increase of approximately 2.3%[53]. - The Group has net current liabilities of HK$675,300,000, including a bank borrowing of HK$400,288,000 and a loan from a non-controlling interest of HK$152,700,000 maturing on April 30, 2025[64]. Cash Flow and Liquidity - The Group had bank balances and cash of approximately HK$1.0 million as of June 30, 2024, down from approximately HK$1.7 million as of December 31, 2023[24]. - Cash and cash equivalents at June 30, 2024, were HK$1,014, down from HK$5,797 at the same date in 2023, showing a decrease of about 82.5%[56]. - The company’s cash flow from financing activities showed a net cash used of HK$13,833 for the six months ended June 30, 2024, compared to a net cash inflow of HK$3,120 in the same period of 2023[56]. Management Strategy - Management will continue to review its portfolio of investment properties and seek potential acquisition and/or disposal opportunities[8]. - The Group aims to increase the occupancy rate of its properties and is exploring potential acquisitions or disposals to generate stable income and capital appreciation[23]. - Management plans to diversify its tenant mix to minimize financial impact and optimize the property portfolio based on market outlook[14]. - The Group expects rental income and the fair value of investment properties to increase in the future due to the reopening of nearby economies[23]. - The Group plans to negotiate an extension for the HK$152,700,000 loan and reassess its marketing strategy to reduce vacancy rates in investment properties[64]. - The Group will consider disposing of certain investment properties to strengthen liquidity if necessary[64]. Other Financial Information - The Group incurred a bad debt of HK$169,000 during the six months ended June 30, 2023, due to the termination of a rental contract[101]. - There were no material acquisitions or disposals during the period[32]. - No dividends were paid, declared, or proposed during the period[32]. - The Group has no contingent liabilities as of June 30, 2024, consistent with the previous period[32]. - The total number of issued ordinary shares remained unchanged at 1,089,118,593 shares as of June 30, 2024[30].
远东控股国际(00036) - 2024 - 中期财报