Revenue and Business Segments - The revenue of Basic House New Life Group Limited primarily comes from two business segments: design and renovation services, and financial investment activities[15]. - The design and renovation business was established in 1999 and is based on extensive experience in interior design and project management[16]. - The financial investment business was launched for the year ending December 31, 2023, focusing on equity securities listed in Hong Kong and derivative instruments[17]. - Management remains optimistic about the long-term prospects of the design and renovation business despite economic uncertainties[18]. - The board is optimistic about the outlook for the Hong Kong equity securities market and believes the new financial investment business will enhance financial performance and shareholder value[18]. - Revenue for the six months ended June 30, 2025, was HKD 22,825,000, an increase of 51.8% compared to HKD 15,046,000 for the same period in 2024[120]. - Revenue from design and decoration services was HKD 21,262,000, up from HKD 14,250,000, indicating a growth of 49.2%[147]. - Revenue from maintenance and after-sales services decreased slightly to HKD 736,000 from HKD 796,000, a decline of 7.5%[147]. - For the six months ended June 30, 2025, total revenue was HKD 22,825,000, with design and renovation contributing HKD 21,998,000 and other segments contributing HKD 827,000[152]. Financial Performance - The company's revenue increased from approximately HKD 15.0 million for the six months ended June 30, 2024, to approximately HKD 22.8 million for the same period in 2025, representing an increase of about 51.7% due to improved performance in the design and renovation business[24]. - The loss for the six months ended June 30, 2025, was approximately HKD 15.8 million, compared to a loss of approximately HKD 5.3 million for the same period in 2024[30]. - Operating loss for the six months ended June 30, 2025, was HKD 8,951,000, compared to an operating loss of HKD 3,919,000 in 2024, representing a 128.5% increase in losses[120]. - Net loss for the period was HKD 15,777,000, significantly higher than the net loss of HKD 5,256,000 in the previous year, indicating a 199.5% increase in losses[120]. - Basic loss per share for the six months ended June 30, 2025, was HKD (4.33), compared to HKD (1.63) for the same period in 2024[121]. - The group reported a loss before tax of HKD 15,773,000 for the six months ended June 30, 2025, compared to a loss of HKD 5,256,000 for the same period in 2024[159]. - The company reported a loss attributable to shareholders of HKD 15,612,000 for the six months ending June 30, 2025, compared to a loss of HKD 5,879,000 for the same period in 2024[186]. Assets and Liabilities - As of June 30, 2025, the company's cash and cash equivalents amounted to approximately HKD 25.9 million, a decrease of about 51.7% from HKD 53.6 million as of December 31, 2024[32]. - The debt-to-asset ratio as of June 30, 2025, was approximately 111.1%, up from 83.9% as of December 31, 2024, primarily due to increases in borrowings and convertible bonds[33]. - Total assets as of June 30, 2025, amounted to HKD 110,761,000, an increase from HKD 89,797,000 as of December 31, 2024[124]. - Total liabilities increased to HKD 72,295,000 as of June 30, 2025, from HKD 52,557,000 as of December 31, 2024, reflecting an increase of about 37.5%[128]. - The company reported a total equity of HKD (25,385,000) as of June 30, 2025, a decline from HKD (10,720,000) as of December 31, 2024, reflecting a decrease of approximately 136.5%[129]. - The group reported total liabilities as of June 30, 2025, were HKD 148,665,000, up from HKD 110,887,000 as of December 31, 2024[161]. Financial Investments - The company has initiated financial investment operations as of December 31, 2023, and management remains optimistic about the prospects of the Hong Kong equity securities market and derivative markets[22]. - The financial investment segment generated a profit of HKD 1,926,000, while the design and renovation segment incurred a loss of HKD 1,265,000 for the six months ended June 30, 2025[152]. - The financial investment segment's assets increased significantly to HKD 57,833,000 as of June 30, 2025, compared to HKD 14,000,000 as of December 31, 2024[160]. - The group held approximately HKD 58 million in equity investments as of June 30, 2025, classified as financial assets measured at fair value through other comprehensive income and profit or loss[61]. - The total market value of the group's investments in the listed companies was approximately HKD 58 million[61]. Operational Strategies and Future Outlook - The company will continue to seek new orders and clients in the design and renovation business despite economic uncertainties, maintaining a long-term optimistic outlook[22]. - The company is implementing various measures to enhance its overall sales network and effective cost control to improve profit margins and operating cash flow[137]. - The company plans to seek additional financing methods and bank loans to meet its existing financial obligations and future operational and capital expenditures[138]. - The company has received financial support commitments from major shareholders to ensure it can meet its financial responsibilities in the foreseeable future[144]. - The group continues to operate under the basis of going concern despite the recorded net liabilities, supported by shareholder commitments and operational strategies[139]. Employee and Administrative Costs - The group has approximately 38 employees as of June 30, 2025, down from 39 employees as of December 31, 2024[60]. - The sales and administrative expenses for the six months ended June 30, 2025, were approximately HKD 17.6 million, an increase of about HKD 3.9 million from HKD 13.7 million in 2024, primarily due to increased legal, professional, and marketing expenses[29]. - The group offers competitive compensation and various internal training programs to attract and retain high-quality employees[60]. Dividends and Other Income - The board has not declared any interim dividend for the six months ended June 30, 2025, consistent with the previous year[56]. - The group reported other income of HKD 827,000 for the first time, contributing to the overall revenue[147]. - The group received approximately HKD 379,000 in dividends from HSBC Holdings during the period[81]. - The group received approximately HKD 66,000 in dividends from BYD Company during the period[85]. - The group received approximately HKD 30,000 in dividends from China Evergrande Group during the period[86]. - The group received approximately HKD 92,000 in dividends from SF REIT Asset Management Limited during the period[70].
简朴新生活(08360) - 2025 - 中期业绩