大唐西市(00620) - 2025 - 中期业绩

Condensed Consolidated Financial Statements This section presents the group's condensed consolidated financial statements, including the statement of profit or loss and financial position Condensed Consolidated Statement of Profit or Loss and Other Comprehensive Income For the six months ended June 30, 2025, the Group's revenue decreased by 41.5% to HK$15,141 thousand, while loss before tax narrowed by 34.2% to HK$8,384 thousand, and loss for the period narrowed by 32.7% to HK$10,399 thousand. Basic and diluted loss per share expanded to 1.56 HK cents from 1.13 HK cents, with exchange gains from foreign operations reversing last year's loss Revenue and Loss Overview (For the six months ended June 30) | Metric | 2025 (HK$ thousand) | 2024 (HK$ thousand) | Year-on-year Change (%) | | :--- | :--- | :--- | :--- | | Revenue | 15,141 | 25,885 | -41.5% | | Loss before tax | (8,384) | (12,739) | -34.2% | | Loss for the period | (10,399) | (15,426) | -32.7% | | Loss attributable to owners of the Company | (10,407) | (7,556) | +37.7% | | Basic and diluted loss per share | (1.56) HK cents | (1.13) HK cents | +38.1% | Other Comprehensive Income (For the six months ended June 30) | Metric | 2025 (HK$ thousand) | 2024 (HK$ thousand) | | :--- | :--- | :--- | | Exchange differences arising from translation of foreign operations | 10,269 | (8,811) | Condensed Consolidated Statement of Financial Position As of June 30, 2025, the Group's total assets slightly increased to HK$3,681,801 thousand, while net current assets decreased to HK$1,784,748 thousand, and net assets slightly declined to HK$928,091 thousand, driven by a significant increase in current liabilities Assets and Liabilities Overview (As of June 30) | Metric | 2025 (HK$ thousand) | 2024 (HK$ thousand) | Change (%) | | :--- | :--- | :--- | :--- | | Non-current assets | 138,956 | 135,961 | +2.2% | | Current assets | 3,542,845 | 3,376,963 | +4.9% | | Current liabilities | 1,758,097 | 1,220,289 | +44.1% | | Net current assets | 1,784,748 | 2,156,674 | -17.2% | | Net assets | 928,091 | 928,221 | -0.01% | Notes to the Condensed Interim Financial Information This section provides detailed notes to the condensed interim financial information, covering company details, accounting policies, segment data, and specific financial line items 1. Company and Group Information Datang West Market Silk Road Investment Holding Company Limited is a Bermuda-incorporated, HKEX-listed company primarily engaged in auction services, wine sales, and property investment - Company registered in Bermuda, listed on the Hong Kong Stock Exchange[6] - Principal business activities include providing auction and related services, selling wine, and property investment and development[7][8] 2. Basis of Preparation and Accounting Policies Interim financial information is prepared under HKAS 34 and HKEX Listing Rules, with new/revised HKFRSs having no material impact, despite significant uncertainties regarding the Group's going concern ability - Preparation standards: Hong Kong Accounting Standard 34 Interim Financial Reporting issued by the HKICPA and applicable disclosure requirements of Appendix D2 to the Listing Rules of the Stock Exchange of Hong Kong Limited[7] - New/revised HKFRSs: Adoption of the "Lack of Exchangeability" amendments had no material impact on the Group's unaudited condensed interim financial information[9] - Significant uncertainties regarding the going concern assumption: - The Group incurred a net loss of approximately HK$10,399,000 for the six months ended June 30, 2025[10] - As of June 30, 2025, the Group had total interest-bearing borrowings of approximately HK$1,434,251,000, with current interest-bearing borrowings of approximately HK$438,638,000[10] - The current portion of other payables was approximately HK$678,218,000, including refund deposits of approximately HK$454,777,000 and related settlement fees of approximately HK$26,165,000, while cash and cash equivalents as of June 30, 2025, were only approximately HK$8,704,000[10] - As of and subsequent to June 30, 2025, the Group faced multiple legal proceedings related to delayed or unsettled trade and other payables[10] - Measures taken by management to mitigate liquidity pressure: - Completed a new share placement in August 2025 and another new share placement in August 2025[11] - Actively negotiating with banks to further extend the terms of interest-bearing borrowings and reduce related interest rates[11] - Actively negotiating with several financial institutions and potential lenders or investors to identify various financing options for the Group's working capital and commitments in the foreseeable future[12] - Accelerating pre-sales and sales of properties under development and completed properties held for sale[12] - Actively negotiating with consignors regarding the settlement of advances to consignors and related accrued interest receivable[12] - Mr. Lui Kin Chung, the ultimate controlling party, has undertaken to provide continuous financial support to the Group to meet its daily operations and financial obligations as they fall due[13] 3. Segment Information The Group operates in three segments: Arts and Culture, Wine Business, and Property Development, with Arts and Culture being the primary revenue and profit contributor, while Hong Kong generates most revenue geographically - Segment breakdown: Arts and Culture segment, Wine Business segment, Property Development segment[14] Segment Performance Overview (For the six months ended June 30) | Segment | 2025 Revenue (HK$ thousand) | 2024 Revenue (HK$ thousand) | 2025 Result (HK$ thousand) | 2024 Result (HK$ thousand) | | :--- | :--- | :--- | :--- | :--- | | Arts and Culture | 14,741 | 20,422 | 15,021 (Profit) | 14,943 (Profit) | | Wine Business | 400 | 1,930 | (212) (Loss) | 744 (Profit) | | Property Development | – | 3,533 | (18,857) (Loss) | (25,944) (Loss) | | Consolidated Total | 15,141 | 25,885 | (8,384) (Loss before tax) | (12,739) (Loss before tax) | Geographical Information Overview (Revenue for the six months ended June 30) | Region | 2025 Revenue (HK$ thousand) | 2024 Revenue (HK$ thousand) | | :--- | :--- | :--- | | Hong Kong | 12,425 | 13,979 | | Mainland China | 2,716 | 11,896 | | France | – | 10 | | Total | 15,141 | 25,885 | Geographical Information Overview (Specific Non-current Assets as of June 30) | Region | 2025 (HK$ thousand) | 2024 (HK$ thousand) | | :--- | :--- | :--- | | Hong Kong | 1,002 | 415 | | Mainland China | 87,465 | 96,403 | | France | – | – | | Total | 88,467 | 96,818 | 4. Revenue Total revenue for the period was HK$15,141 thousand, a 41.5% decrease year-on-year, primarily due to a significant drop in revenue from customer contracts Revenue Analysis (For the six months ended June 30) | Revenue Source | 2025 (HK$ thousand) | 2024 (HK$ thousand) | Year-on-year Change (%) | | :--- | :--- | :--- | :--- | | Revenue from contracts with customers | 454 | 5,463 | -91.7% | | Interest income from advances to consignors | 14,687 | 19,200 | -23.5% | | Gross rental income from investment properties | – | 1,222 | -100% | | Total Revenue | 15,141 | 25,885 | -41.5% | 5. Other Income Other income for the period increased by 13.4% to HK$6,352 thousand, mainly driven by higher rental income from completed properties held for sale Other Income Analysis (For the six months ended June 30) | Income Source | 2025 (HK$ thousand) | 2024 (HK$ thousand) | Year-on-year Change (%) | | :--- | :--- | :--- | :--- | | Bank interest income | 1 | 10 | -90.0% | | Gross rental income from completed properties held for sale | 6,351 | 5,589 | +13.6% | | Total | 6,352 | 5,600 | +13.4% | 6. Finance Costs Finance costs for the period decreased by 27.0% to HK$18,923 thousand, primarily due to a significant increase in borrowing costs capitalized for properties under development Finance Costs Analysis (For the six months ended June 30) | Item | 2025 (HK$ thousand) | 2024 (HK$ thousand) | Year-on-year Change (%) | | :--- | :--- | :--- | :--- | | Interest on interest-bearing borrowings | 41,948 | 43,963 | -4.6% | | Interest on lease liabilities | 17 | 29 | -41.4% | | Total borrowing costs | 41,965 | 43,992 | -4.6% | | Less: Borrowing costs capitalized into properties under development | (23,042) | (18,079) | +27.5% | | Net finance costs | 18,923 | 25,913 | -27.0% | 7. Loss Before Tax Loss before tax for the period reflects a decrease in staff costs by 11.2% to HK$9,006 thousand, depreciation by 12.8% to HK$2,556 thousand, and legal and professional fees by 45.2% to HK$715 thousand Deductions from Loss Before Tax (For the six months ended June 30) | Item | 2025 (HK$ thousand) | 2024 (HK$ thousand) | Year-on-year Change (%) | | :--- | :--- | :--- | :--- | | Staff costs | 9,006 | 10,144 | -11.2% | | Depreciation expense | 2,556 | 2,930 | -12.8% | | Legal and professional fees | 715 | 1,304 | -45.2% | 8. Income Tax Income tax expense for the period decreased by 25.0% to HK$2,015 thousand, primarily due to lower China corporate income tax and no China land appreciation tax Income Tax Expense Analysis (For the six months ended June 30) | Item | 2025 (HK$ thousand) | 2024 (HK$ thousand) | Year-on-year Change (%) | | :--- | :--- | :--- | :--- | | China corporate income tax | 2,011 | 2,271 | -11.5% | | China land appreciation tax | – | 554 | -100% | | Deferred tax | 4 | (138) | -102.9% | | Income tax expense for the period | 2,015 | 2,687 | -25.0% | - Hong Kong profits tax was not provided as subsidiaries incurred tax losses or were absorbed by prior year tax losses[24] - PRC entities are subject to China corporate income tax at a statutory rate of 25%[24] 9. Dividends The Board does not recommend an interim dividend for the six months ended June 30, 2025, consistent with the prior period - No interim dividend recommended[26] 10. Loss Per Share Attributable to Owners of the Company Basic and diluted loss per share attributable to owners of the Company for the six months ended June 30, 2025, expanded to 1.56 HK cents from 1.13 HK cents, with potential ordinary shares having an anti-dilutive effect Loss Per Share (For the six months ended June 30) | Metric | 2025 | 2024 | | :--- | :--- | :--- | | Basic and diluted loss per share | (1.56) HK cents | (1.13) HK cents | - The weighted average number of ordinary shares in issue used for calculating loss per share was 667,525,230 shares[29] 11. Trade and Other Receivables As of June 30, 2025, total trade and other receivables increased by 7.5% to HK$762,242 thousand, driven by higher interest receivables and other receivables, with a notable increase in trade receivables over 360 days old Trade and Other Receivables Overview (As of June 30) | Item | 2025 (HK$ thousand) | 2024 (HK$ thousand) | Change (%) | | :--- | :--- | :--- | :--- | | Amounts due from customers | 6,540 | 10,820 | -39.6% | | Interest receivable | 204,015 | 166,208 | +22.7% | | Loss allowance (Trade receivables) | (14,854) | (14,904) | -0.3% | | Other receivables | 593,845 | 574,252 | +3.4% | | Loss allowance (Other receivables) | (27,304) | (27,304) | 0% | | Total | 762,242 | 709,072 | +7.5% | Trade Receivables Ageing Analysis (As of June 30) | Ageing | 2025 (HK$ thousand) | 2024 (HK$ thousand) | | :--- | :--- | :--- | | Unbilled | 20,655 | 7,127 | | 0–30 days | 6,675 | 21,158 | | 31–90 days | 214 | 252 | | 91–180 days | 1,146 | 6,445 | | 181–360 days | 21,560 | 34,634 | | Over 360 days | 145,451 | 92,508 | - Advances to consignors for auction business, net of loss allowance, of approximately HK$384,501 thousand are secured by pledged auction items from consignors and bear interest at fixed annual rates ranging from 8% to 15%[30] 12. Trade and Other Payables As of June 30, 2025, total trade and other payables increased by 13.4% to HK$1,005,259 thousand, with the entire amount now classified as current, driven by higher interest payables and other payables Trade and Other Payables Overview (As of June 30) | Item | 2025 (HK$ thousand) | 2024 (HK$ thousand) | Change (%) | | :--- | :--- | :--- | :--- | | Trade payables | 123,826 | 119,650 | +3.5% | | Accrued expenses | 30,277 | 32,200 | -6.0% | | Interest payable | 158,718 | 112,528 | +41.0% | | Other payables | 678,218 | 608,448 | +11.5% | | Total | 1,005,259 | 886,687 | +13.4% | Trade Payables Analysis (As of June 30) | Item | 2025 (HK$ thousand) | 2024 (HK$ thousand) | | :--- | :--- | :--- | | Current portion | 1,005,259 | 690,751 | | Non-current portion | – | 195,936 | - Trade payables over 360 days old increased from HK$114,967 thousand to HK$119,496 thousand[31] Financial and Business Review and Outlook This section provides a comprehensive review of the Group's financial performance and business operations, along with an outlook on future strategies and market conditions Overall Review For the six months ended June 30, 2025, the Group's revenue decreased by 41.7% to HK$15.1 million, while loss for the period narrowed by 32.5% to HK$10.4 million Financial Performance Overview (For the six months ended June 30) | Metric | 2025 (HK$ million) | 2024 (HK$ million) | Year-on-year Change (%) | | :--- | :--- | :--- | :--- | | Revenue | 15.1 | 25.9 | -41.7% | | Loss for the period | (10.4) | (15.4) | -32.5% | Arts and Culture Segment The Arts and Culture segment contributed HK$14.7 million in revenue (down 28%) and HK$15.0 million in profit before tax (up 0.7%), with auction business on hold due to market uncertainty and new art CBD center development in Xi'an Segment Financial Performance (For the six months ended June 30) | Metric | 2025 (HK$ million) | 2024 (HK$ million) | Year-on-year Change (%) | | :--- | :--- | :--- | :--- | | Segment revenue | 14.7 | 20.4 | -28.0% | | Segment profit before tax | 15.0 | 14.9 | +0.7% | - Auction business: Given the current uncertain economic situation in China, the Company did not hold any large-scale auctions, and management will continue to monitor market conditions and sentiment, resuming large-scale auctions once signs of recovery emerge[34] - Art Central Business District business: A center established in Xi'an provides integrated venues for storage, exhibition, auction, promotion, and trading of art and collectibles, aiming to build a vast network with other art and cultural partners and is expected to create synergies with the Silk Road International Cultural Center[35] Wine Business Segment The Wine Business segment's revenue significantly decreased by 78.9% to HK$0.4 million, resulting in a loss of HK$0.2 million compared to a profit of HK$0.7 million in the prior period Segment Financial Performance (For the six months ended June 30) | Metric | 2025 (HK$ million) | 2024 (HK$ million) | Year-on-year Change (%) | | :--- | :--- | :--- | :--- | | Segment revenue | 0.4 | 1.9 | -78.9% | | Segment profit/(loss) before tax | (0.2) | 0.7 | -128.6% | Property Development Segment The Property Development segment generated no revenue but narrowed its loss before tax by 27.1% to HK$18.9 million due to cost-saving measures, with the Silk Road International Cultural Center project progressing Segment Financial Performance (For the six months ended June 30) | Metric | 2025 (HK$ million) | 2024 (HK$ million) | Year-on-year Change (%) | | :--- | :--- | :--- | :--- | | Segment revenue | – | 3.5 | -100% | | Segment loss before tax | (18.9) | (25.9) | -27.1% | - The decrease in segment loss before tax was primarily due to the adoption of cost-saving measures[37] - Silk Road International Cultural Center project: Located in Datang West Market, Lianhu District, Xi'an, China, it is planned to be developed into a comprehensive cultural and art complex covering cultural and art product operations, financing, and international entertainment[37] - Building A development progress: Pre-sale permit obtained in 2023, structural work completed up to 24th floor (December 31, 2024: 19th floor), with completion expected within 2026[38] Outlook Despite short-term uncertainties in the Chinese economy, management remains confident in its fundamentals and anticipates a rebound in the cultural and art market, focusing on value enhancement through strategic repositioning and partnerships - China economic outlook: Short-term uncertainties persist, especially with significant pressure on China's traditional economy, but the underlying fundamentals are believed to remain strong, with the government making substantial efforts to improve the economic situation[39] - Cultural and art market expectation: A rebound and recovery of the cultural and art market is believed to be imminent[39] - Future strategy: Management will strive to enhance the value of properties through resource integration, strategic repositioning and repackaging, and strengthening marketing cooperation with third parties[39] Liquidity and Financial Resources As of June 30, 2025, total bank balances and cash decreased by HK$7.5 million to HK$8.7 million due to operational consumption, while outstanding pledged borrowings increased to HK$1,434.3 million Liquidity Overview (As of June 30) | Metric | 2025 (HK$ million) | 2024 (HK$ million) | Change (HK$ million) | | :--- | :--- | :--- | :--- | | Total bank balances and cash | 8.7 | 16.2 | -7.5 | | Outstanding pledged borrowings | 1,434.3 | 1,392.1 | +42.2 | - The decrease in cash was primarily due to the consumption of cash resources in daily operations during the period[40] Capital Gearing As of June 30, 2025, the Group's capital gearing ratio increased to 167.5% from 161.2%, indicating a higher leverage level Capital Gearing Ratio (As of June 30) | Date | Capital Gearing Ratio | | :--- | :--- | | June 30, 2025 | 167.5% | | December 31, 2024 | 161.2% | - Capital gearing ratio is calculated by dividing net debt by equity attributable to owners of the Company[41] Foreign Exchange Risk The Group's assets and liabilities are primarily denominated in HKD and RMB, with exchange gains from foreign operations reversing last year's losses - The Group's assets and liabilities are primarily denominated in Hong Kong Dollars and Renminbi, which are the functional currencies of the respective group companies[42] Exchange Differences Arising from Translation of Foreign Operations (For the six months ended June 30) | Metric | 2025 (HK$ million) | 2024 (HK$ million) | | :--- | :--- | :--- | | Exchange gain/(loss) | 10.3 (gain) | (8.8) (loss) | Human Resources As of June 30, 2025, the Group maintained approximately 93 employees, with remuneration based on qualifications, experience, market rates, and contributions, including bonuses and share options - Number of employees: As of June 30, 2025, the Group had approximately 93 employees in Hong Kong and China (December 31, 2024: 93 employees)[43] - Remuneration policy: Employee remuneration is determined based on their qualifications, work experience, prevailing market rates, and contributions to the Group; bonuses and share options may also be offered to eligible employees based on individual performance[43] Contingent Liabilities and Financial Guarantees As of June 30, 2025, total contingent liabilities increased to HK$353.8 million, primarily related to guarantees for bank loans provided to property development customers and a related party Total Contingent Liabilities (As of June 30) | Date | Amount (HK$ million) | | :--- | :--- | | June 30, 2025 | 353.8 | | December 31, 2024 | 343.2 | - Contingent liabilities involve guarantees provided to banks for loans extended to customers of the property development segment and a related party[44] Hedging, Acquisitions and Disposals, and Material Investments During the review period, the Group did not engage in any hedging activities, significant acquisitions or disposals of assets/businesses/subsidiaries, or material investments - The Group did not use any financial instruments for hedging purposes during the review period[45] - The Group did not undertake any significant acquisitions or disposals of assets, businesses, or subsidiaries during the review period[45] - The Group did not make any material investments during the review period[45] Capital Commitments As of June 30, 2025, the Group's capital commitments decreased to HK$578.5 million from HK$627.6 million Capital Commitments (As of June 30) | Date | Amount (HK$ million) | | :--- | :--- | | June 30, 2025 | 578.5 | | December 31, 2024 | 627.6 | Interim Dividend The Board does not recommend an interim dividend for the six months ended June 30, 2025, consistent with the prior period - The Board does not recommend an interim dividend for the six months ended June 30, 2025 (June 30, 2024: nil)[47] Purchase, Sale or Redemption of Listed Securities During the six months ended June 30, 2025, neither the Company nor its subsidiaries purchased, sold, or redeemed any of the Company's listed securities - During the six months ended June 30, 2025, neither the Company nor its subsidiaries purchased, sold, or redeemed any of the Company's listed securities[48] Other Information This section covers additional information including the review of interim results, post-reporting period events, corporate governance, and board composition Review of Interim Results The Company's unaudited interim results for the six months ended June 30, 2025, were not reviewed by external auditors but were reviewed by the Audit Committee - The Company's 2025 interim report was not reviewed by external auditors[49] - It has been reviewed by the Company's Audit Committee[49] Events After the Reporting Period Subsequent to the reporting period, the Company completed two new share placements in August 2025, raising approximately HK$32 million, with another placement agreement currently in progress - On July 8, 2025, the Company entered into a placing agreement with a placing agent for the placement of 66,752,523 shares at HK$0.5 per share, raising net proceeds of approximately HK$32,000,000[50] - On August 8, 2025, the Company entered into a placing agreement with a placing agent for the placement of 66,800,000 shares at HK$0.6 per share, which is still in progress as of the date of this announcement[50] Corporate Governance The Company has regained compliance with HKEX Listing Rules regarding board composition, audit, and remuneration committees following the appointment of an independent non-executive director in August 2025, and adheres to the standard code for securities transactions - Previously failed to comply with Listing Rules 3.10(1) (board must include at least three independent non-executive directors), 3.21 (audit committee must comprise at least three members), and 3.25 (remuneration committee chaired by an independent non-executive director with a majority of independent non-executive directors) due to the resignation of an independent non-executive director[51] - Following the appointment of Mr. Dai Chi Kit as an independent non-executive director effective August 8, 2025, the Company has complied with the aforementioned Listing Rules since August 8, 2025[51] - The Company has adopted and complied with the Standard Code as its own code of conduct for securities transactions by directors and senior management of the Company[52] 2025 Interim Report The Company's 2025 Interim Report will be published on its website and HKEXnews, and dispatched to shareholders in due course - The Company's 2025 Interim Report will be published on the Company's website (www.dtxs.com) and the website of The Stock Exchange of Hong Kong Limited (www.hkexnews.hk)[53](index=53&type=chunk) - The interim report will be dispatched to the Company's shareholders in due course[53] Board Information As of the announcement date (August 31, 2025), the Board comprises five executive directors, including the Chairman and Co-CEO, and three independent non-executive directors - As of the date of this announcement, the Board comprises five executive directors (Mr. Lui Kin Chung (Chairman), Mr. Yeung Hing Man, Mr. Wong Tai Hoi, Mr. Wong Kwok Tun (Co-Chief Executive Officer), and Mr. Lam Hiu Ling) and three independent non-executive directors (Mr. Choi Wang Tung, Ms. Hau Wing Chi, and Mr. Dai Chi Kit)[55]