Financial Position - As of June 30, 2024, the carrying amount of property, plant, and equipment is approximately HKD 356,011,000, including land and buildings in China valued at about HKD 352,712,000[8]. - Non-current assets decreased to HKD 465.193 million as of June 30, 2024, down from HKD 768.987 million at the end of 2023, a reduction of 39.4%[19]. - Current assets also declined to HKD 164.068 million from HKD 298.874 million, representing a decrease of 45.0%[19]. - Total assets less current liabilities decreased to HKD 612,555,000 as of June 30, 2024, down from HKD 1,010,994,000 as of December 31, 2023[20]. - The net asset value dropped to HKD 607,373,000 from HKD 989,245,000 year-over-year, reflecting a significant decline[20]. - The total assets of the group as of June 30, 2024, were HKD 186,866,000, a decrease from HKD 291,117,000 in the previous year[97]. - The company's total assets decreased from HKD 445,705,000 as of December 31, 2023, to HKD 356,011,000 as of June 30, 2024[130]. Revenue and Loss - Total revenue for the six months ended June 30, 2024, was HKD 877 million, a significant increase from HKD 221 million in the same period of 2023, representing a growth of 296.4%[16]. - The net loss attributable to the company's owners for the period was HKD 368.847 million, compared to a profit of HKD 96.96 million in the prior year, indicating a decline of 479.1%[18]. - Total comprehensive loss for the period amounted to HKD 381.358 million, compared to a total comprehensive income of HKD 68.801 million in the same period last year[18]. - The company reported a loss of HKD 368,847,000 for the six months ended June 30, 2024, compared to a profit of HKD 96,960,000 in the same period of 2023[23]. - The company recognized a net loss of HKD 248.638 million from unrealized gains on financial assets measured at fair value through profit or loss, compared to a gain of HKD 140.833 million in the previous year[16]. - The group reported a pre-tax loss of HKD 370,837,000 for the six months ended June 30, 2024, compared to a profit of HKD 103,388,000 for the same period in 2023[104]. Cash Flow and Liabilities - The company reported a net cash position of HKD 105.127 million as of June 30, 2024, down from HKD 173.342 million at the end of 2023[19]. - Current liabilities were reduced to HKD 16.706 million from HKD 56.867 million, a decrease of 70.7%[19]. - The company reported a net cash outflow from investing activities of HKD 18,112,000, compared to HKD 49,234,000 in the previous year[26]. - The group reported total liabilities of HKD 16,889,000, down from HKD 65,239,000 in the previous year, indicating improved financial stability[97]. - The total financial liabilities measured at amortized cost were HKD 21,888,000 as of June 30, 2024, down from HKD 76,590,000 as of December 31, 2023[198]. Impairment and Valuation - The impairment loss recognized for property, plant, and equipment for the six months ended June 30, 2024, is approximately HKD 74,862,000[8]. - The valuation of property, plant, and equipment is identified as a key audit matter due to its significance in the consolidated financial statements[9]. - The group has engaged an independent valuer to determine the recoverable amount of assets, which involves significant judgments and estimates[9]. - The company recognized an impairment loss of approximately HKD 74,862,000 for certain land and buildings during the six months ended June 30, 2024, compared to no impairment loss for the same period in 2023[130]. Compliance and Reporting - The independent auditor's report confirms that the consolidated financial statements fairly present the financial position of the group as of June 30, 2024, in accordance with Hong Kong Financial Reporting Standards[5]. - The financial statements have been prepared in compliance with the disclosure requirements of the Hong Kong Companies Ordinance[5]. - The group has applied revised Hong Kong Financial Reporting Standards (HKFRS) during the interim period, which became effective on January 1, 2024, with no significant impact on the financial position and performance[28]. - The group has not early adopted any newly issued or revised HKFRS that have been published but are not yet effective, including HKFRS 10 and HKAS 28 regarding asset sales or contributions between investors and their associates or joint ventures[30]. Shareholder Information - The total equity decreased from HKD 989,245,000 to HKD 607,373,000, indicating a significant reduction in shareholder value[21]. - The average number of ordinary shares used for calculating basic loss per share was approximately 1,561,434,000 for the six months ended June 30, 2024[123]. - The total issued and paid-up share capital increased to 1,561,434,000 shares as of June 30, 2024, from 1,420,290,000 shares as of January 1, 2023, reflecting an increase of approximately 9.9%[165]. - The company has not declared an interim dividend for the six months ended June 30, 2024, consistent with the previous year[120]. Employee Benefits and Compensation - The company incurred a total employee benefit expense of HKD 20,179,000, compared to HKD 18,978,000 in the previous year, reflecting an increase in operational costs[99]. - The total remuneration for directors during the six months ended June 30, 2024, was HKD 4,289,000, compared to HKD 4,289,000 for the same period in 2023[106]. - The highest-paid employee's total compensation for the six months ended June 30, 2024, was HKD 1,113,000, down from HKD 1,246,000 in the previous year[120]. Taxation - The tax expense for the current period was a credit of HKD 1,990,000, significantly lower than the tax expense of HKD 6,428,000 in the previous year[103]. - There were no tax losses recognized for the current period, resulting in no tax provisions made for Hong Kong profits tax[104]. - The effective tax rate for the group's Chinese subsidiaries remains at 25% for both periods[104]. Financial Instruments and Risk Management - The group faces equity price risk primarily from investments in listed and unlisted equity securities[199]. - Financial assets and liabilities are recognized when the group becomes a party to the contractual provisions of the instrument, with initial measurement at fair value[63]. - The group uses the expected credit loss model for impairment assessment of financial assets, updating the expected credit loss amount at each reporting date[69]. - The management regularly monitors the investment portfolio to manage price risk associated with financial assets[199].
鼎益丰控股(00612) - 2024 - 中期财报