中国城市基础设施(02349) - 2025 - 中期业绩

Summary The company experienced a decline in turnover and gross profit, an increased fair value loss on investment properties, and a higher net loss for the period Key Financial Highlights | Metric | H1 2025 (HK$ thousand) | H1 2024 (HK$ thousand) | Change | | :--- | :--- | :--- | :--- | | Turnover | 25,049 | 25,594 | -2.13% | | Gross Profit | 14,473 | 17,696 | -18.2% | | Gross Profit Margin | 57.8% | 68.2% | -10.4% | | Fair Value Loss on Investment Properties | 35,870 | 24,565 | +46.02% | | Net Loss for the Period | 44,271 | 36,433 | +21.51% | | Total Assets (End of Period) | 1,062,360 | 1,069,099 (Dec 31, 2024) | -0.63% | Interim Results This section presents the condensed consolidated financial statements, including statements of profit or loss, comprehensive income, and financial position Condensed Consolidated Statement of Profit or Loss For the six months ended June 30, 2025, the company's turnover decreased year-on-year, while cost of sales increased, leading to a reduction in gross profit, and a significant increase in fair value loss on investment properties expanded the loss for the period to HK$44,271 thousand Condensed Consolidated Statement of Profit or Loss | Metric | 2025 (HK$ thousand) | 2024 (HK$ thousand) | | :--- | :--- | :--- | | Turnover | 25,049 | 25,954 | | Cost of Sales | (10,576) | (8,258) | | Gross Profit | 14,473 | 17,696 | | Fair Value Loss on Investment Properties | (35,870) | (24,565) | | Finance Costs | (19,377) | (20,924) | | Loss Before Tax | (53,238) | (42,574) | | Income Tax Credit | 8,967 | 6,141 | | Loss for the Period | (44,271) | (36,433) | Condensed Consolidated Statement of Profit or Loss and Other Comprehensive Income During the reporting period, the company's loss for the period was HK$44,271 thousand, but positive exchange differences from foreign operations significantly reduced the total comprehensive expense for the period (net of tax) to HK$11,222 thousand, a substantial improvement from the prior year Condensed Consolidated Statement of Profit or Loss and Other Comprehensive Income | Metric | 2025 (HK$ thousand) | 2024 (HK$ thousand) | | :--- | :--- | :--- | | Loss for the Period | (44,271) | (36,433) | | Exchange Differences Arising from Translation of Foreign Operations | 32,865 | (14,636) | | Total Comprehensive Expense for the Period (Net of Tax) | (11,222) | (50,833) | Condensed Consolidated Statement of Financial Position As of June 30, 2025, the company's total assets slightly decreased, with investment properties remaining the primary component of non-current assets, and net current liabilities increased, indicating liquidity pressure Condensed Consolidated Statement of Financial Position | Metric | June 30, 2025 (HK$ thousand) | Dec 31, 2024 (HK$ thousand) | | :--- | :--- | :--- | | Assets | | | | Investment Properties | 1,034,505 | 1,036,596 | | Bank Balances and Cash | 4,032 | 9,721 | | Total Assets | 1,062,360 | 1,069,099 | | Equity and Liabilities | | | | Equity Attributable to Owners of the Company | 590,274 | 601,496 | | Borrowings - Due After One Year | 359,997 | 349,576 | | Borrowings - Due Within One Year | 10,989 | 8,510 | | Total Liabilities | 472,085 | 467,602 | | Net Current Liabilities | (23,022) | (17,833) | Notes to the Condensed Consolidated Financial Statements This section provides detailed explanations and disclosures regarding the preparation basis, accounting policies, segment information, and other financial statement items 1. Basis of Preparation The company, incorporated in the Cayman Islands, primarily engages in property investment, development, and management in China, with condensed consolidated interim financial information prepared on a going concern basis despite net current liabilities - The company's principal activities are property investment, development, and management in China[8] - The condensed consolidated financial statements are prepared on a going concern basis, as the directors expect the company to have sufficient liquidity to meet its financial obligations, despite net current liabilities of approximately HK$23,022 thousand[10] - The company plans to maintain its going concern through mortgage loan financing, accelerated collection of receivables, and cost control measures[12] 2. Significant Accounting Policies The condensed consolidated interim financial information is prepared on a historical cost basis, with certain properties and financial instruments measured at fair value, and new or revised HKFRSs applied in this period had no significant impact on the financial information - Financial information is prepared on a historical cost basis, with certain properties and financial instruments measured at fair value[11] - New and revised Hong Kong Financial Reporting Standards (such as HKAS 21 Amendment) applied for the first time in this period had no significant impact on the condensed consolidated interim financial information[13] 3. Segment Information The Group's operating segments include property development, property investment, and property management businesses, with property investment being the main revenue source, though its turnover and operating results declined, and fair value loss on investment properties significantly increased - The Group's operating segments include property development business, property investment business, and property management business[15] Segment Turnover and Results (For the six months ended June 30, 2025) | Segment | Turnover (HK$ thousand) | Segment Operating Results (HK$ thousand) | | :--- | :--- | :--- | | Property Development Business | – | (261) | | Property Investment Business | 16,869 | 8,795 | | Property Management Business | 8,180 | 546 | | Total | 25,049 | 9,080 | Segment Turnover and Results (For the six months ended June 30, 2024) | Segment | Turnover (HK$ thousand) | Segment Operating Results (HK$ thousand) | | :--- | :--- | :--- | | Property Development Business | – | (401) | | Property Investment Business | 17,867 | 9,188 | | Property Management Business | 8,087 | 2,227 | | Total | 25,954 | 11,014 | - Fair value loss on investment properties increased from HK$24,565 thousand in the prior year period to HK$35,870 thousand in the current period[17][18] 4. Finance Costs For the six months ended June 30, 2025, total finance costs decreased to HK$19,377 thousand from HK$20,924 thousand in the prior year, primarily due to reduced interest expenses on bank loans and other borrowings Composition of Finance Costs | Item | 2025 (HK$ thousand) | 2024 (HK$ thousand) | | :--- | :--- | :--- | | Interest expense on bank loans and other borrowings | 19,256 | 20,909 | | Interest expense on lease liabilities | 121 | 15 | | Total | 19,377 | 20,924 | 5. Income Tax Credit The income tax credit for the period was HK$8,967 thousand, mainly arising from deferred tax credit on fair value loss on investment properties, with the company not subject to current tax in Hong Kong and China Income Tax Credit | Item | 2025 (HK$ thousand) | 2024 (HK$ thousand) | | :--- | :--- | :--- | | Current tax expense for the period | – | – | | Deferred tax credit for the period | (8,967) | (6,141) | | Total | (8,967) | (6,141) | - The income tax credit is primarily attributable to deferred tax credit arising from fair value loss on investment properties[41] 6. Loss for the Period The loss for the period was HK$44,271 thousand, primarily influenced by employee costs, depreciation, net rental income from investment properties, and related operating expenses Components of Loss for the Period | Item | 2025 (HK$ thousand) | 2024 (HK$ thousand) | | :--- | :--- | :--- | | Total employee costs | 11,045 | 10,062 | | Depreciation of property, plant and equipment | 59 | 82 | | Depreciation of right-of-use assets | 1,220 | 1,486 | | Net rental income from investment properties | (11,397) | (14,032) | 7. Dividends The Board of Directors does not recommend the payment of an interim dividend for the six months ended June 30, 2025 - The Board of Directors does not recommend the payment of an interim dividend for the current period[24][51] 8. Loss Per Share For the six months ended June 30, 2025, basic loss per share expanded to 1.42 HK cents, compared to 1.16 HK cents in the prior year Loss Per Share | Metric | 2025 (HK cents) | 2024 (HK cents) | | :--- | :--- | :--- | | Basic Loss Per Share | (1.42) | (1.16) | - The weighted average number of ordinary shares used for calculating basic and diluted loss per share was 3,128,278,542 shares[25] 9. Trade and Other Receivables As of June 30, 2025, total trade and other receivables increased to HK$21,120 thousand from December 31, 2024, with trade receivables over 180 days accounting for the largest portion Trade and Other Receivables | Item | June 30, 2025 (HK$ thousand) | Dec 31, 2024 (HK$ thousand) | | :--- | :--- | :--- | | Trade receivables (net of allowance) | 12,754 | 10,500 | | Prepayments and deposits | 5,705 | 5,246 | | Other receivables (net of allowance) | 8,366 | 8,318 | | Total | 21,120 | 18,818 | Ageing Analysis of Trade Receivables (Net of Credit Loss Allowance) | Ageing | June 30, 2025 (HK$ thousand) | Dec 31, 2024 (HK$ thousand) | | :--- | :--- | :--- | | Within 90 days | 2,838 | 2,536 | | 91 to 180 days | 3,009 | 1,251 | | Over 180 days | 6,907 | 6,713 | | Total | 12,754 | 10,500 | 10. Trade and Other Payables As of June 30, 2025, total trade and other payables were HK$25,339 thousand, slightly lower than December 31, 2024, with trade payables over 180 days representing a significant portion Trade and Other Payables | Item | June 30, 2025 (HK$ thousand) | Dec 31, 2024 (HK$ thousand) | | :--- | :--- | :--- | | Trade payables | 6,791 | 6,187 | | Interest payable | 794 | 1,150 | | Accrued expenses and other taxes payable | 6,641 | 6,736 | | Other payables | 11,113 | 11,969 | | Total | 25,339 | 26,042 | - Trade payables primarily include demolition costs for the former hotel business, construction materials, property inventories, and unpaid amounts for investment property construction projects[27] Management Discussion and Analysis This section provides an overview of the Group's business and financial performance, including segment reviews, financial highlights, liquidity, and future outlook Business Review The Group primarily engages in real estate-related businesses, including property investment and property management, with property investment experiencing a decline in rental income and average occupancy, while property management revenue slightly increased and expanded with a new Henan branch Property Investment Business The Group primarily conducts property investment through Future City Shopping Mall and its car park, both of which experienced a decrease in rental income and average occupancy, leading to a slight reduction in the total fair value of investment properties - Future City Shopping Mall has a total leasable area of approximately 55,029 sqm, with a fair value of approximately HK$926,400 thousand as of June 30, 2025[30] Future City Rental Income and Occupancy Rate | Metric | For the six months ended June 30, 2025 | For the six months ended June 30, 2024 | | :--- | :--- | :--- | | Rental Income | Approx. HK$14,900 thousand | Approx. HK$17,400 thousand | | Average Occupancy Rate | Approx. 88.2% | Approx. 89.8% | - As of June 30, 2025, the Group held investment properties with a total fair value of approximately HK$1,034,500 thousand, slightly lower than HK$1,036,600 thousand as of December 31, 2024[33] Property Management Business Property management business revenue slightly increased, primarily due to the establishment of the Henan branch and contributions from new contracts Property Management Business Revenue | Metric | For the six months ended June 30, 2025 | For the six months ended June 30, 2024 | | :--- | :--- | :--- | | Revenue | Approx. HK$8,200 thousand | Approx. HK$8,100 thousand | - Wuhan Future City Property Management Co., Ltd. Henan Branch generated approximately HK$1,700 thousand in property management service income during the period[34] Financial Review This section provides a detailed analysis of changes in various financial indicators during the reporting period, showing a decline in turnover, an increase in cost of sales, a significant drop in gross profit and gross profit margin, an expanded fair value loss on investment properties, but reduced administrative and finance costs, ultimately leading to an increased loss attributable to owners of the company Turnover Turnover for the period decreased to approximately HK$25,000 thousand, mainly due to reduced rental income from Future City and lower property management income Turnover Comparison | Metric | For the six months ended June 30, 2025 | For the six months ended June 30, 2024 | | :--- | :--- | :--- | | Total Turnover | Approx. HK$25,000 thousand | Approx. HK$26,000 thousand | | Property Investment Business Turnover | Approx. HK$16,900 thousand | Approx. HK$17,900 thousand | | Property Management Business Turnover | Approx. HK$8,200 thousand | Approx. HK$8,100 thousand | Cost of Sales Cost of sales increased to approximately HK$10,600 thousand, primarily due to increased property management service costs for the Henan branch and higher staff costs for two car parks Cost of Sales Comparison | Metric | For the six months ended June 30, 2025 | For the six months ended June 30, 2024 | | :--- | :--- | :--- | | Total Cost of Sales | Approx. HK$10,600 thousand | Approx. HK$8,200 thousand | | Property Investment Segment Cost of Sales | Approx. HK$5,500 thousand | HK$3,800 thousand | | Property Management Business Cost of Sales | Approx. HK$5,100 thousand | HK$4,400 thousand | Gross Profit and Gross Profit Margin Gross profit decreased to approximately HK$14,500 thousand, with the overall gross profit margin declining to 57.8%, mainly due to a decrease in the gross profit margin of the property investment business Gross Profit and Gross Profit Margin Comparison | Metric | For the six months ended June 30, 2025 | For the six months ended June 30, 2024 | | :--- | :--- | :--- | | Gross Profit | Approx. HK$14,500 thousand | HK$17,700 thousand | | Overall Gross Profit Margin | 57.8% | 68.2% | Changes in Fair Value of Investment Properties Fair value loss on investment properties expanded to approximately HK$35,900 thousand, an increase from the prior year period Fair Value Loss on Investment Properties | Metric | For the six months ended June 30, 2025 | For the six months ended June 30, 2024 | | :--- | :--- | :--- | | Fair Value Loss | Approx. HK$35,900 thousand | Approx. HK$24,600 thousand | Administrative Expenses Administrative expenses decreased by approximately 12.9% to approximately HK$12,100 thousand, primarily due to reduced legal and professional fees and staff costs Administrative Expenses Comparison | Metric | For the six months ended June 30, 2025 | For the six months ended June 30, 2024 | | :--- | :--- | :--- | | Administrative Expenses | Approx. HK$12,100 thousand | Approx. HK$13,900 thousand | Finance Costs Finance costs decreased to approximately HK$19,400 thousand, mainly due to reduced interest expenses on borrowings Finance Costs Comparison | Metric | For the six months ended June 30, 2025 | For the six months ended June 30, 2024 | | :--- | :--- | :--- | | Finance Costs | Approx. HK$19,400 thousand | Approx. HK$20,900 thousand | Income Tax Credit Income tax credit increased to approximately HK$9,000 thousand, primarily attributable to deferred tax credit arising from fair value loss on investment properties Income Tax Credit Comparison | Metric | For the six months ended June 30, 2025 | For the six months ended June 30, 2024 | | :--- | :--- | :--- | | Income Tax Credit | Approx. HK$9,000 thousand | Approx. HK$6,100 thousand | Loss Attributable to Owners of the Company Loss attributable to owners of the company expanded to approximately HK$44,300 thousand, primarily due to the increased fair value loss on investment properties Loss Attributable to Owners of the Company Comparison | Metric | For the six months ended June 30, 2025 | For the six months ended June 30, 2024 | | :--- | :--- | :--- | | Loss | Approx. HK$44,300 thousand | Approx. HK$36,400 thousand | Liquidity, Financial and Capital Resources The Group's cash position declined, total debt increased, and most investment properties are pledged, with both gearing ratio and current ratio indicating increased financial leverage and liquidity pressure Cash Position As of June 30, 2025, total bank balances and cash decreased to approximately HK$4,000 thousand Bank Balances and Cash | Metric | June 30, 2025 (HK$ thousand) | Dec 31, 2024 (HK$ thousand) | | :--- | :--- | :--- | | Bank Balances and Cash | Approx. HK$4,000 thousand | HK$9,700 thousand | Borrowings and Pledges of the Group's Assets The Group's total debt increased to approximately HK$371,000 thousand, with most due after one year, and approximately HK$435,600 thousand of investment properties are pledged as collateral for bank financing Total Debt | Metric | June 30, 2025 (HK$ thousand) | Dec 31, 2024 (HK$ thousand) | | :--- | :--- | :--- | | Total Debt | Approx. HK$371,000 thousand | HK$358,100 thousand | | Due Within One Year | Approx. HK$11,000 thousand | Approx. HK$8,500 thousand | | Due After One Year | Approx. HK$360,000 thousand | Approx. HK$349,600 thousand | - Approximately HK$435,600 thousand of investment properties are pledged as collateral for bank financing[45] Gearing Ratio and Current Ratio As of June 30, 2025, the gearing ratio increased to 62.2%, and the current ratio decreased to 0.52, indicating increased financial leverage and weakened liquidity Financial Ratios | Metric | June 30, 2025 | Dec 31, 2024 | | :--- | :--- | :--- | | Gearing Ratio | 62.2% | 57.9% | | Current Ratio | 0.52 | 0.62 | Prospects and Future Plans Looking ahead to the second half, the global political and economic environment remains complex and challenging, with the Chinese economy facing difficulties, and the Group will closely monitor market changes, respond flexibly, and actively seek potential projects aligned with its core businesses, including infrastructure-related ventures - Global political instability and a complex and challenging operating environment persist, with the Chinese economy facing a difficult recovery[47] - Management will closely monitor domestic and international political and economic developments and market trends, responding flexibly and making prudent decisions[47] - Actively seeking potential projects aligned with the Group's principal businesses, including infrastructure-related businesses[47] Contingent Liabilities and Commitments As of the end of the reporting period, the Group had no significant contingent liabilities and commitments - As of June 30, 2025, and December 31, 2024, the Group had no significant contingent liabilities and commitments[48] Events After Reporting Period As of the date of this announcement, no significant events occurred after the reporting period - As of the date of this announcement, there were no significant events after the reporting period[49] Other Information This section covers details regarding employees, remuneration policy, interim dividends, share transactions, directors' securities dealings, corporate governance, and audit committee activities Employees and Remuneration Policy As of June 30, 2025, the Group's total number of employees increased to 121, with a corresponding increase in total staff costs Employee Count and Costs | Metric | June 30, 2025 | June 30, 2024 | | :--- | :--- | :--- | | Total Employees | 121 employees | 114 employees | | Total Staff Costs | Approx. HK$10,500 thousand | Approx. HK$10,100 thousand | Interim Dividend The Board of Directors resolved not to declare an interim dividend for the current period - The Board of Directors resolved not to declare an interim dividend for the current period[51] Purchase, Sale or Redemption of the Company's Shares During the period, neither the company nor any of its subsidiaries purchased, sold, or redeemed any of the company's ordinary shares - During the period, neither the company nor any of its subsidiaries purchased, sold, or redeemed any of the company's ordinary shares[52] Standard Code for Securities Transactions by Directors All directors confirmed compliance with the Standard Code as set out in Appendix C3 of the Listing Rules of the Stock Exchange throughout the period - All directors confirmed compliance with the Standard Code as set out in Appendix C3 of the Listing Rules of the Stock Exchange throughout the period[53] Compliance with Corporate Governance Code The company has complied with the Corporate Governance Code, with two deviations: the Chairman and Chief Executive Officer roles are combined, and the Chairman is not subject to retirement by rotation, which the Board believes contributes to business strategy execution and strong leadership - There are two deviations from the Corporate Governance Code: the roles of Chairman and Chief Executive Officer are combined (Code Provision A.2.1), and the Chairman is not subject to retirement by rotation (Code Provision A.4.2)[54][55] - The Board believes these deviations contribute to the execution of business strategies, enhanced operational efficiency, and strong, consistent leadership[54][55] Audit Committee The Audit Committee, comprising three independent non-executive directors, has reviewed the Group's unaudited condensed consolidated financial results for the period - The Audit Committee comprises Mr. Wu Chi Hao (Chairman), Mr. Kwok Kin Wah, and Ms. Kwong Mei Wan, all independent non-executive directors[57] - The Audit Committee has reviewed the Group's unaudited condensed consolidated financial results for the period[58] Publication of Interim Results and Interim Report This results announcement has been published on the Stock Exchange and the company's website, and the interim report will be dispatched to shareholders and published in due course - This results announcement has been published on the Stock Exchange website www.hkexnews.hk and the company's website www.city-infrastructure.com[59](index=59&type=chunk) - The 2025 Interim Report will be dispatched to shareholders in due course and will be published on the Stock Exchange and the company's website[59] By Order of the Board This section lists the signatories of this announcement and the Board of Directors' members - The Board of Directors includes Executive Directors Mr. Li Chao Bo (Chairman and Chief Executive Officer) and Mr. Ji Jiaming; Non-executive Director Mr. Zhang Guiqing; and Independent Non-executive Directors Mr. Wu Chi Hao, Mr. Kwok Kin Wah, and Ms. Kwong Mei Wan[61]