Financial Performance - Total revenue for the first half of 2024 was HKD 43,620,000, a decrease of HKD 10,907,000 or 20% compared to HKD 54,527,000 in the same period last year[3]. - Retail fashion and accessories revenue dropped to HKD 34,840,000, down 21% from HKD 43,867,000 year-on-year[4]. - The operating loss for the group was HKD 6,585,000, a significant increase of 213% from a loss of HKD 2,102,000 in the previous year[4]. - The loss attributable to owners for the first half of 2024 was HKD 14,198,000, compared to a loss of HKD 8,548,000 in the same period last year, representing a 74% increase[3]. - The retail segment experienced a 19% decrease in sales, with online sales dropping by 45% compared to the first half of 2023[6]. - The group's overall revenue and gross profit from continuing operations decreased by HKD 10,907,000 (20%) and HKD 6,665,000 (20%), respectively, primarily due to reduced sales in the fashion and retail business[8]. - Gross profit for the same period was HKD 26,299,000, down 20.1% from HKD 32,964,000 in 2023[45]. - Loss before tax for the period was HKD 8,104,000, compared to a loss of HKD 2,427,000 in the previous year, reflecting a significant increase in losses[45]. - Total comprehensive loss for the six months was HKD 37,586,000, compared to HKD 53,232,000 in 2023, indicating a reduction in overall losses[47]. Investment Performance - The group's investment properties recorded a net loss of HKD 1,100,000, a decline of 467% from a gain of HKD 300,000 in the previous year[4]. - The group's net realized and unrealized gains for the six months ended June 30, 2024, amounted to HKD 8,103,000, a decrease from HKD 11,809,000 in 2023, with interest and dividend income at HKD 6,050,000 compared to HKD 8,465,000 in 2023[7]. - The group's investment portfolio's total carrying value was HKD 502,954,000 as of June 30, 2024, down from HKD 525,371,000 at the end of 2023, representing approximately 47.7% of total assets[12]. - The group recorded an unrealized fair value loss of HKD 10,842,000 from its private equity fund investment in Asia China Investment Fund III during the first half of 2024[7]. - The total investment value in private equity funds decreased to HKD 37,394,000 as of June 30, 2024, down from HKD 49,822,000 as of December 31, 2023, resulting in a net loss of HKD 12,752,000 for the six months ended June 30, 2024[23]. - The Group's investment in China Motor Corporation recorded a net loss of HKD 1,133,000 for the six months ended June 30, 2024, compared to a net loss of HKD 85,000 in the same period of 2023[22]. - The fair value of the group's investment portfolio in marketable securities was HKD 289,118,000 as of June 30, 2024, representing approximately 27.4% of total assets[14]. Operational Changes - The group plans to close the Cheung Tat Country Club to mitigate ongoing losses, aligning with shareholder interests[3]. - The group plans to open a new store in Lee Garden Two, Causeway Bay, Hong Kong, in early September 2024, following the closure of the flagship store[10]. - The group plans to close its flagship store in Central Hong Kong by September 30, 2024, which is not expected to have a significant impact on the financial statements[39]. - The group terminated its resort and club business on June 16, 2024, and the related financial data is no longer reviewed by management[62]. Cash and Liquidity - As of June 30, 2024, the group's cash and non-collateral deposits amounted to HKD 116,953,000, an increase from HKD 109,576,000 as of December 31, 2023[37]. - Cash and cash equivalents increased to HKD 93,613,000 from HKD 87,622,000, marking an increase of approximately 6.8%[50]. - The net cash generated from operating activities for the six months ended June 30, 2024, was HKD 20,087,000, a significant improvement from a net cash outflow of HKD 930,000 in the same period last year[50]. - Total borrowings and lease liabilities were HKD 2,062,000 and HKD 4,593,000 respectively, down from HKD 5,079,000 and HKD 8,396,000 as of December 31, 2023[37]. - The group's debt-to-equity ratio was 0.6% as of June 30, 2024, compared to 1.3% as of December 31, 2023[37]. - The current ratio remained strong at 25.9 times as of June 30, 2024, compared to 16.9 times as of December 31, 2023[37]. Shareholder Information - As of June 30, 2024, major shareholders include Solution Bridge Limited with 408,757,642 shares (24.76%) and Diamond Leaf Limited with 162,216,503 shares (9.83%) [100]. - Parasia Limited and Huamao Group Holdings Limited each hold 570,974,145 shares, representing 34.59% of the company [100]. - The total shares held by Mr. Zhuang Rijie and Mr. Huang Dewei, as trustees, amount to 730,974,145 shares, which is 44.28% of the company [101]. Governance and Compliance - The company has adhered to all corporate governance codes as per the listing rules during the six-month period ending June 30, 2024 [104]. - The interim financial statements for the six months ending June 30, 2024, were reviewed by external auditors and the audit committee [106]. - The company has implemented a comprehensive code of conduct for all employees, including executive directors, to ensure compliance and ethical behavior[41]. Future Outlook - The group continues to focus on property land exchange applications, working closely with relevant government departments to expedite the process[34]. - The group has maintained a prudent strategy for cash management and foreign exchange risk, regularly reviewing its financial position[36]. - The group expects that the amendments to Hong Kong Financial Reporting Standard No. 21 will not have a significant impact on the consolidated financial statements[56].
安宁控股(00128) - 2024 - 中期财报