Financial Performance - The company reported revenue of HKD 12,458,000 for the six months ended June 30, 2024, representing a 10.4% increase from HKD 11,287,000 in the same period last year[6]. - Gross profit for the period was HKD 9,691,000, up 14.2% from HKD 8,483,000 year-on-year[6]. - The net profit attributable to shareholders was HKD 2,780,000, an increase of 22.1% compared to HKD 2,277,000 in the previous year[6]. - Basic and diluted earnings per share increased to HKD 0.72 from HKD 0.59, reflecting a growth of 22%[6]. - Revenue from rental income for the six months ended June 30, 2024, was HKD 12,458,000, an increase of 10.9% from HKD 11,287,000 in 2023[18]. - Profit for the six months ended June 30, 2024, rose by approximately HKD 500,000 or 22% to about HKD 2,800,000, up from HKD 2,300,000 in 2023[44]. Assets and Liabilities - Total assets as of June 30, 2024, were HKD 1,654,524, slightly down from HKD 1,654,532 at the end of 2023[9]. - The company's net asset value decreased to HKD 1,469,647 from HKD 1,471,711 at the end of 2023[9]. - Cash and cash equivalents decreased significantly to HKD 7,995,000 from HKD 158,992,000, indicating a liquidity challenge[9]. - Trade receivables decreased from HKD 224 million as of December 31, 2023, to HKD 182 million as of June 30, 2024, representing a decline of approximately 18.75%[26]. - Cash and cash equivalents dropped significantly from HKD 158,992 million as of December 31, 2023, to HKD 7,995 million as of June 30, 2024, indicating a decrease of about 95%[27]. - As of June 30, 2024, total borrowings amounted to approximately HKD 151,800,000, a decrease from HKD 294,700,000 as of December 31, 2023[47]. - The debt-to-equity ratio as of June 30, 2024, was approximately 10.33%, down from 20.02% as of December 31, 2023[47]. Expenses - Operating and administrative expenses rose to HKD 2,989,000 from HKD 2,700,000, indicating an increase of 10.7%[6]. - The total employee expenses for the period were HKD 1,074,000, a decrease of 4.7% from HKD 1,127,000 in the previous year[19]. - Financing costs for the six months ended June 30, 2024, amounted to HKD 3,693,000, compared to HKD 3,301,000 in 2023, indicating an increase of 11.9%[20]. - The estimated tax expense for the period was HKD 486,000, a decrease of 52.2% from HKD 1,018,000 in the previous year[22]. Shareholder Information - The company declared an interim dividend of HKD 0.008 per share, totaling HKD 3,105,000, consistent with the previous year's interim dividend[24]. - As of June 30, 2024, the company's director holds 291,137,700 shares, representing approximately 75.00% of the total issued shares[54]. - Major shareholders include Limitless Investment Limited and Multifield International Holdings, both holding 291,137,700 shares, equating to 75.00% of the total issued shares[58]. - The company has not purchased, sold, or redeemed any of its listed securities in the six months ending June 30, 2024[63]. - The company plans to suspend share transfer registration from September 25 to September 27, 2024, for the purpose of qualifying for the interim dividend[60]. Corporate Governance - The audit committee has reviewed the accounting principles and practices adopted by the group, including the unaudited interim results for the six months ending June 30, 2024[64]. - The company has adopted the corporate governance code as per the Hong Kong Stock Exchange Listing Rules, ensuring compliance with principles and provisions[65]. - All directors confirmed adherence to the standard code of conduct for securities trading as stipulated in the Listing Rules[66]. - The interim report for the year 2024, containing all required information, is available on the company's website and the Hong Kong Stock Exchange website[67]. - The executive directors of the company are Mr. Liu Zhi Yong and Mr. Liu Zhi Qi, with independent non-executive directors including Mr. Lu Min Lin, Mr. Lau Kam Cheung, and Mr. Xu Jia Hua[68]. Market Outlook - The global economy is expected to face challenges in the second half of 2024 due to ongoing economic slowdown, geopolitical conflicts, and high interest rates[52]. - The demand for office leasing in Hong Kong remains weak, while the residential leasing market is thriving due to potential buyers turning to rental options[52]. - Malaysia's relaxed visa policies for Chinese tourists and broader investment incentives are anticipated to boost the tourism and commercial investment sectors, benefiting the real estate industry[52]. - The company is actively seeking opportunities to acquire quality real estate and land reserves in Malaysia to diversify its real estate investment and development portfolio[52]. Other Information - The company has applied new accounting standards effective from January 1, 2024, but these did not impact the interim financial statements[15]. - The company has no outstanding bank loans as of June 30, 2024, compared to HKD 144 million in bank loans as of December 31, 2023[28][29]. - The company has provided guarantees for bank financing up to HKD 280 million for its subsidiaries, with approximately HKD 150 million utilized as of December 31, 2023[35]. - The company has not issued any stock options since the adoption of the stock option plan on May 25, 2023, and there are no unexercised options as of June 30, 2024[34]. - The company’s investment properties in Hong Kong had a total book value of approximately HKD 598 million as of December 31, 2023, which serve as collateral for bank loans[30]. - The aging analysis of trade receivables shows that HKD 160 million is within one month, down from HKD 202 million as of December 31, 2023, a decrease of about 20.79%[26]. - The company has a loan from a subsidiary amounting to HKD 144 million as of June 30, 2024, with an interest payable of HKD 2.643 million[32]. - The company’s issued and paid-up share capital remains at HKD 38,818 million as of June 30, 2024, unchanged from December 31, 2023[33]. - The company has no current bank loans due within one year as of June 30, 2024, compared to HKD 3 million due as of December 31, 2023[29]. - Total cash outflow for leases during the period was approximately HKD 450,000, unchanged from the same period in 2023[38]. - Future lease receivables as of June 30, 2024, totaled HKD 29,345,000, a decrease from HKD 31,829,000 as of December 31, 2023[36]. - The group employed 8 staff members as of June 30, 2024, with employee expenses totaling approximately HKD 1,100,000, consistent with the previous year[51]. - The group had no significant contingent liabilities as of June 30, 2024[49]. - There were no major acquisitions or disposals of subsidiaries, associates, or joint ventures during the six-month period ended June 30, 2024[45].
东方兴业控股(00430) - 2024 - 中期财报