Financial Performance - The basic earnings attributable to shareholders for the first half of 2024 slightly increased to HKD 289 million, compared to HKD 288 million in the same period of 2023, representing a 0.3% increase [13]. - The unaudited profit attributable to shareholders for the six months ended June 30, 2024, decreased to HKD 113 million, down 38.6% from HKD 184 million in the same period of 2023 [15]. - The basic interim earnings per share for 2024 is HKD 0.246, compared to HKD 0.245 in 2023 [15]. - The interim dividend for 2024 is set at HKD 0.10 per share, down from HKD 0.26 per share in 2023 [15]. - The company reported a total revenue of HKD 1,940,947,000 for the six months ended June 30, 2024, compared to HKD 1,275,963,000 for the same period in 2023, representing an increase of approximately 52.1% [34]. - Operating profit decreased to HKD 269,188,000 for the first half of 2024, down from HKD 313,391,000 in the previous year, reflecting a decline of about 14.1% [34]. - The net profit for the period was HKD 113,104,000, a decrease of 38.3% from HKD 183,594,000 in the prior year [35]. - Basic and diluted earnings per share were HKD 0.10, down from HKD 0.16 in the same period last year, indicating a decline of 37.5% [34]. - The total comprehensive income for the period was HKD 78,542,000, compared to a loss of HKD 45,900,000 in the same period last year [35]. - The company reported a profit of HKD 113,453 for the six months ended June 30, 2024, compared to HKD 184,481 for the same period in 2023, reflecting a decrease of approximately 38.4% [38]. Property Development and Sales - The group's attributable gross floor area landbank amounts to approximately 3.2 million sq m in Hong Kong and Mainland China as of June 30, 2024 [3]. - The group is engaged in property development, investment, and management, with major projects including Jiangwan City in Shenyang and other developments in Mainland China [12]. - In Hong Kong, the group achieved sales revenue of approximately HKD 1.2 billion from the sale of over 1,100 residential units at the Haiyin Garden project by June 30, 2024 [17]. - In mainland China, the total pre-sale/sales amount for the group's development projects reached approximately RMB 643 million, with the group's attributable share being about RMB 558 million [17]. - The group is progressing with the construction of a mixed-use development project in Sai Ying Pun, with a 60% interest, expected to meet strong demand due to its prime location [23]. - The group is adjusting the planning for the third phase of the Jiangwan South Garden residential project in Huizhou in response to market changes, with construction to commence upon approval [23]. - The group continues to sell remaining units in joint venture projects in Foshan and Tianjin, with ongoing construction for the fifth phase of the Shanyu Lake project and the third phase of the City Square project [23]. - The group anticipates that sales from remaining units in the Sea Garden project and other development projects will contribute significantly to revenue in the second half of the year [24]. Market Conditions - The residential price index in June 2024 was 301.8, marking a nearly eight-year low and a decline of approximately 2.55% from the beginning of the year [16]. - The overall vacancy rate for office buildings in Hong Kong reached a new high, putting pressure on rental income [16]. - The market conditions in Hong Kong have been challenging, with high interest rates affecting purchasing sentiment and leading to a decline in property prices [16]. Financial Position and Liabilities - As of June 30, 2024, the group’s total bank loans were HKD 19,348,000,000, with HKD 2,898,000,000 due within one year [26]. - The company’s total liabilities decreased to HKD 8,474,882,000 from HKD 9,433,686,000, reflecting a reduction of about 10.2% [37]. - The company’s total liabilities decreased to HKD 16,449,906,000 from HKD 17,151,977,000, indicating a reduction of approximately 4.1% [68]. - The bank loans due within one year decreased to HKD 2,898,391,000 from HKD 3,744,569,000, reflecting a decline of about 22.7% [68]. - The total bank loans as of June 30, 2024, were HKD 19,348,297,000, down from HKD 20,896,546,000 at the end of 2023, indicating a decrease of approximately 7.4% [69]. Cash Flow and Investments - Cash inflow from sales in Hong Kong projects amounted to approximately HKD 1,205,000,000, primarily from the sale of the Sea Garden project, while cash inflow from mainland China projects was about HKD 351,000,000 [27]. - The company reported a significant decrease in cash and bank balances, which fell to HKD 708,832,000 from HKD 1,080,599,000, a decline of approximately 34.4% [36]. - The net cash generated from operating activities for the six months ended June 30, 2024, was HKD 1,076,035, an increase from HKD 1,005,443 in the same period of 2023, representing a growth of approximately 7.0% [39]. - The net cash used in investing activities for the six months ended June 30, 2024, was HKD 104,928, a recovery from HKD (11,258) in the same period of 2023 [39]. - The company incurred financial costs of HKD 85,140,000 for the six months ended June 30, 2024, slightly lower than HKD 95,034,000 in the previous year [52]. Corporate Governance and Compliance - The company has complied with all relevant corporate governance codes except for one specific provision regarding the dual role of the chairman and CEO [82]. - The company’s board members have confirmed full compliance with the securities trading standards during the review period [83]. - The independent auditor, KPMG, reviewed the interim financial report for the six months ending June 30, 2024, in accordance with Hong Kong standards [95]. Employee and Operational Insights - As of June 30, 2024, the company employed 2,743 staff, an increase from 2,641 staff as of December 31, 2023, reflecting business growth [93]. - Total employee costs rose to HKD 329 million, up from HKD 300 million as of June 30, 2023, due to salary adjustments and increased headcount [93]. - The company emphasizes competitive salary levels and discretionary bonuses based on performance to attract and retain talent [93]. - A series of training programs are conducted to enhance employee skills and knowledge, preparing them for a rapidly changing economic environment [93].
九龙建业(00034) - 2024 - 中期财报