Financial Performance - For the fiscal year ending December 31, 2024, the company reported a total revenue of HKD 385,847,000, a decrease of 68.0% compared to HKD 1,203,026,000 in 2023[3] - The company incurred a gross loss of HKD 390,012,000, compared to a gross loss of HKD 222,887,000 in the previous year, reflecting a significant increase in losses[3] - The operating loss for the year was HKD 2,048,189,000, which is a substantial increase from the operating loss of HKD 758,149,000 in 2023[3] - The net loss for the year amounted to HKD 2,288,528,000, compared to a net loss of HKD 827,797,000 in the prior year, indicating a worsening financial position[3] - The company reported a basic and diluted loss per share of HKD 1,351.40, compared to HKD 550.66 in the previous year, highlighting increased losses on a per-share basis[4] - The company reported a loss before tax of HKD 2,320,610,000 for the fiscal year ending December 31, 2024, compared to a loss of HKD 891,936,000 in 2023[28] - The company recorded a net loss of approximately HKD 2,288.5 million for the year, compared to a net loss of approximately HKD 827.8 million in the previous year, reflecting a significant increase in losses[80] Asset and Liability Management - The company's total assets decreased to HKD 6,494,605,000 from HKD 9,731,912,000, representing a decline of 33.0%[5] - Current liabilities increased to HKD 7,025,531,000 from HKD 8,138,485,000, indicating a reduction in the company's liquidity position[5] - The company has a total debt of approximately HKD 3,666,000,000, with current borrowings of HKD 3,362,304,000, raising concerns about its ability to meet short-term obligations[9] - The net current liabilities of the group were approximately HKD 530.9 million as of December 31, 2024, compared to net current assets of approximately HKD 1,593.4 million in the previous year[82] Legal and Financial Challenges - As of December 31, 2024, the total overdue bank borrowings include approximately RMB 1,197 million (equivalent to about HKD 1,286 million) from Shenzhen Jitong Industrial Co., Ltd. and RMB 155 million (equivalent to about HKD 166 million) from Hunan Meilian Property Co., Ltd.[10] - Hunan Meilian has received a court execution notice for overdue borrowings amounting to approximately RMB 290 million, which includes principal, interest, and default interest[11] - The company has ongoing legal proceedings related to unpaid construction costs and operational payables totaling approximately RMB 296 million (equivalent to about HKD 317 million)[12] - Legal actions have been initiated by lenders for overdue borrowings totaling approximately RMB 388 million (approximately HKD 417 million), with one lender seeking repayment of approximately RMB 290 million from Hunan Meilian[50] Strategic Restructuring - The company has sold various business segments, including golf driving ranges and karaoke establishments, as part of its strategic restructuring efforts[6] - The company has sold its businesses related to golf driving ranges, children's playrooms, fitness centers, and karaoke venues during the year[25] - The group completed the sale of Shenzhen Baoxin Trading Co., Shenzhen Weizhi Education Investment Co., and Shenzhen Hongguanghao Industrial Co. for a total consideration of approximately RMB 245,323,000 (equivalent to about HKD 284,377,000) to partially repay bonds held by Yuneng International[43] - The group completed the sale of 51% equity in Shantou Taisheng Technology Co., Ltd. for approximately RMB 795.69 million, with the remaining 42.33% equity to be transferred later[74] - The group sold its entire stake in Shenzhen Baoxin Cultural Development Co., Ltd., exiting the sports and entertainment sector[73] Cash Flow and Liquidity Management - The company has developed a cash flow forecast for the next 15 months to alleviate liquidity pressure and improve financial conditions[13] - The company is actively negotiating with lenders for possible settlement arrangements to avoid the sale or auction of pledged assets[13] - The company is exploring alternative settlement arrangements with lenders, which may prevent the sale or auction of collateral assets[59] - The group has implemented strict liquidity controls and cost-saving measures to address liquidity challenges, including seeking financing extensions and reducing non-core business operations[76] Market Conditions and Future Outlook - The Chinese real estate market is experiencing a recovery with a 34% increase in average sales across 30 major cities following supportive policies, with first-tier cities seeing a 53% increase[63] - The company anticipates positive impacts from new policies aimed at stimulating the real estate market, including the establishment of a dual-track supply system and easing of purchase restrictions[62] - The group anticipates a gradual stabilization of the market by 2025, with expectations of narrowing transaction declines in the property sector[75] - The company has observed a trend of increasing housing demand, particularly in rigid demand segments, indicating a potential market rebound[61] Impairment and Valuation Adjustments - The company recognized an impairment loss of approximately RMB 1,180,941,000 (approximately HKD 1,283,683,000) for the year, compared to no impairment loss in 2023[36] - The company has recognized an impairment loss of approximately HKD 1,284 million for the prepayments related to the redevelopment project in Shenzhen, with a recoverable amount estimated at about HKD 1,003 million as of December 31, 2024[56] - The company has not received sufficient information to determine the appropriateness of the valuation adjustments related to the redevelopment project, which may impact the financial statements significantly[57] Corporate Governance - The company has adhered to the corporate governance code as per the listing rules throughout the year, with no deviations reported for the year ending December 31, 2024[93] - The audit committee has reviewed and approved the group's financial results for the year ending December 31, 2024[98] - The independent auditor, Hong Kong Li Xin De Hao CPA Limited, has agreed to the figures presented in the preliminary results announcement for the year ending December 31, 2024[99] - The company's annual report for 2024, containing all information required by the listing rules, will be sent to shareholders and made available on the company's website at an appropriate time[101]
宝新置地(00299) - 2024 - 年度业绩