Financial Performance - Revenue for the six months ended June 30, 2024, was HKD 141,050,000, an increase of 3.0% from HKD 136,299,000 in the same period of 2023[5] - Gross profit for the same period was HKD 118,247,000, up from HKD 114,211,000, reflecting a gross margin improvement[5] - Net profit for the six months ended June 30, 2024, was HKD 159,075,000, compared to HKD 140,238,000 in 2023, representing a growth of 13.4%[6] - Basic and diluted earnings per share increased to HKD 15.37 from HKD 13.68, marking a 12.4% rise[5] - The company reported a total comprehensive income of HKD 158,889,000 for the period, compared to HKD 140,238,000 in 2023, an increase of 13.3%[6] - For the six months ended June 30, 2024, the company reported a net profit of HKD 128,541,000, an increase from HKD 114,360,000 in the same period of 2023, representing a growth of approximately 12.1%[10] - The adjusted profit before tax for the period was HKD 167,012,000, compared to HKD 147,147,000 in the previous year, which is an increase of approximately 13.5%[15] - The group recorded a profit increase of approximately 14% to about HKD 159 million for the six months ended June 30, 2024, compared to HKD 140 million in 2023[56] Assets and Liabilities - Total assets as of June 30, 2024, were HKD 12,708,096,000, compared to HKD 12,033,798,000 as of December 31, 2023, indicating a growth of 5.6%[8] - Non-current liabilities increased to HKD 2,663,473,000 from HKD 2,130,178,000, reflecting a significant rise of 25.0%[8] - The total equity as of June 30, 2024, increased to HKD 10,044,623,000 from HKD 9,695,997,000 as of January 1, 2024, reflecting a rise of about 3.6%[10] - The total amount of bank and other borrowings was approximately HKD 1,445 million, down from HKD 1,537 million as of December 31, 2023, with an asset-to-liability ratio of approximately 14%[59] Cash Flow and Liquidity - Cash and cash equivalents as of June 30, 2024, were HKD 435,891,000, down from HKD 452,539,000, a decrease of 3.7%[7] - The net cash inflow from operating activities for the six months ended June 30, 2024, was HKD 90,836,000, compared to HKD 79,278,000 in the prior year, indicating an increase of approximately 14.5%[11] - The company’s cash and cash equivalents at the end of June 30, 2024, stood at HKD 435,891,000, a decrease from HKD 342,844,000 at the end of June 30, 2023, reflecting a decline of about 27.1%[11] - The group’s cash and bank balances in mainland China amounted to approximately HKD 47,539,000 as of June 30, 2024, an increase from HKD 20,415,000 as of December 31, 2023[31] Revenue Streams - The company reported total revenue from external customers of HKD 141,050,000 for the six months ended June 30, 2024, up from HKD 136,299,000 in the same period of 2023, marking a growth of about 3.9%[16] - The company’s investment property rental income for the six months ended June 30, 2024, was HKD 97,506,000, down from HKD 102,219,000 in the previous year, representing a decrease of approximately 4.2%[16] - Revenue from property management services decreased to HKD 16,313,000 in the first half of 2024, down 7.2% from HKD 17,575,000 in 2023[19] - Rental income for the period was HKD 97,506,000, a decrease from HKD 102,219,000 in the previous year[40] - Rental and property management fee income decreased by approximately 5% to about HKD 114 million, with rental income from Hong Kong at approximately HKD 36 million and from Shanghai at approximately HKD 77 million, down about 6%[56] Employee and Operational Expenses - Total employee expenses were HKD 16,130,000, slightly down from HKD 16,291,000 in 2023[21] - The group employed approximately 200 employees across Shanghai, Zhuhai, Hong Kong, and Malaysia, with employee expenses totaling HKD 14,000,000, unchanged from the previous year[63] Market and Economic Conditions - 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, leading to low investment sentiment[64] - The demand for office leasing in Hong Kong remains weak, while the residential leasing market is thriving, with stable rental income anticipated from Shanghai in 2024[65] - Malaysia's relaxation of visa regulations for Chinese tourists and broader investment incentives are expected to boost the tourism and commercial investment sectors, benefiting the real estate industry[65] - The performance of listed equity investments has been adversely affected by investor sentiment and market volatility, with ongoing risks and uncertainties anticipated in the Hong Kong stock market[66] Corporate Governance and Compliance - The company has adopted the corporate governance code as per the Hong Kong Stock Exchange Listing Rules Appendix C1 and has complied with its principles[77] - All directors confirmed compliance with the standard code of conduct for securities trading as per Listing Rules Appendix C3 for the six months ending June 30, 2024[78] - The audit committee has reviewed the accounting principles and practices adopted by the group, including discussions on internal controls and financial reporting for the six months ending June 30, 2024[76] Future Plans and Developments - The company plans to continue expanding its market presence and investing in new technologies to drive future growth[5] - The group has proposed a planning adjustment to expedite the relocation of residents on commercial land in Zhuhai, currently awaiting government feedback[50] - The group is involved in ongoing legal proceedings regarding compensation for land recovery in Zhuhai, with no consensus reached yet on the compensation amount[51] Shareholder Information - As of June 30, 2024, major shareholders include Power Resources Holdings Limited with 66.91% and Lucky Speculator Limited with 52.52% of the issued shares[72] - The company will suspend share transfer registration from September 25 to September 27, 2024, with interim dividends to be distributed on October 24, 2024[74]
万事昌国际(00898) - 2024 - 中期财报