Financial Performance - The company reported a profit attributable to equity holders of HKD 9,504,000 for the six months ended June 30, 2024, down from HKD 17,511,000 for the same period in 2023, representing a decline of approximately 45.5%[3] - For the six months ended June 30, 2024, the company reported revenue of HKD 201,530,000, a decrease of 12.6% compared to HKD 230,519,000 for the same period in 2023[34] - Operating profit for the period was HKD 19,788,000, down from HKD 26,518,000 in the same period last year, representing a decline of 25.5%[34] - The pre-tax profit was HKD 10,974,000, which is a decrease of 43.3% from HKD 19,395,000 in the prior year[34] - The total comprehensive income for the period was HKD 9,291,000, down from HKD 17,404,000, reflecting a decline of 46.6%[34] - Basic and diluted earnings per share were HKD 0.526, compared to HKD 0.970 in the same period last year, indicating a decrease of 45.7%[34] Revenue Sources - The company experienced a 15.8% decline in revenue from real estate agency services during the interim period due to the weak non-residential property market[5] - Agency fees revenue decreased to HKD 171,657 from HKD 203,831, representing a decline of 15.7%[44] - Interest income from lending business increased to HKD 16,479 from HKD 12,940, marking a growth of 27.8%[44] - Revenue from referral agency fees to related companies increased to HKD 20,366,000 for the six months ended June 30, 2024, compared to HKD 8,383,000 for the same period in 2023, representing a growth of 143%[87] Market Conditions - The lack of property sales during the interim period and poor performance in the non-residential property market were the main reasons for the profit decline[3] - The transaction volume in the industrial, retail, and office sectors decreased by approximately 30%, 13%, and 30% year-on-year, respectively[5] - The geopolitical tensions and high interest rates have led to a cautious approach from local banks regarding mortgages for non-residential properties, further impacting investor confidence[5] - The GDP of mainland China is expected to grow by 4.7% in Q2 2024 compared to the same period in 2023, showing a slowdown from the previous quarter[7] Cost Management - The company actively reduced costs, with salary and rental expenses decreasing during the first half of 2024[5] - Corporate expenses for the period were HKD 6,151, reduced from HKD 8,639 in the previous year, indicating a decrease of 28.8%[51] - The company’s operating expenses related to office and branch operations decreased to HKD 5,598,000 for the six months ended June 30, 2024, from HKD 7,421,000 in the same period of 2023, a decrease of about 24.5%[58] Financial Position - The group's cash and cash equivalents as of June 30, 2024, amounted to HKD 202,338,000, down from HKD 219,181,000 as of December 31, 2023[10] - The group's bank loans totaled HKD 380,547,000 as of June 30, 2024, slightly decreasing from HKD 384,225,000 as of December 31, 2023[10] - The group's current ratio is 2.2 as of June 30, 2024, down from 2.5 as of December 31, 2023, indicating a decrease in financial resource availability[12] - The group's return on equity is 0.81% for the six months ended June 30, 2024, compared to 1.50% for the same period in 2023[12] - The total assets as of June 30, 2024, amounted to HKD 1,693,735,000, a slight increase from HKD 1,691,439,000 as of December 31, 2023[35] - Total liabilities decreased to HKD 544,971,000 as of June 30, 2024, from HKD 551,966,000 as of December 31, 2023, a reduction of about 1.3%[55] Lending Business - The lending business maintained profitability, with an increase in the overall credit portfolio and new loan numbers, despite high interest rates[6] - The lending business is operated by Junlian Credit Limited, providing stable income and cash flow for the group[14] - There were no loan impairment losses recorded during the period, consistent with the previous six months[14] - The credit risk assessment for loans is based on the borrower's financial strength, repayment ability, collateral provided, and current market conditions[15] Staffing and Corporate Governance - As of June 30, 2024, the group employed 431 full-time staff, a decrease from 480 as of December 31, 2023[17] - The company has adhered to all corporate governance codes as per the listing rules during the interim period[32] Investment Properties - The group reported a fair value loss of HKD 3.4 million on investment properties during the period[13] - The company reported a loss of HKD 3,400,000 in fair value of investment properties for the six months ended June 30, 2024, compared to a loss of HKD 2,900,000 for the same period in 2023[57] - The company’s investment properties valued at HKD 1,003,400,000 as of June 30, 2024, decreased from HKD 1,006,800,000 as of December 31, 2023, reflecting a decline of approximately 0.2%[64] Shareholder Information - Major shareholders include Luck Gain and Wealth Builder, both holding 1,106,393,428 shares, representing 61.29% of the total shares[25] - The company did not declare an interim dividend for the period, consistent with the previous year[32] - As of June 30, 2024, the company had a total of 126,528,260 share options available for grant under the share option scheme[31]
鋑联控股(00459) - 2024 - 中期财报