Financial Performance - Revenue for the six months ended June 30, 2025, was HK$11,453,000, a decrease of 14.4% compared to HK$13,383,000 for the same period in 2024[14] - Direct operating expenses increased to HK$970,000, up from HK$516,000, resulting in a gross profit of HK$10,483,000, down from HK$12,867,000[14] - The net changes in fair value of investment properties resulted in a loss of HK$169,900,000, compared to a loss of HK$67,880,000 in the previous year[14] - Loss before taxation for the period was HK$164,629,000, significantly higher than the loss of HK$60,226,000 for the same period last year[14] - The total comprehensive expense for the period was HK$196,093,000, compared to HK$85,492,000 in the prior year[14] - Basic and diluted loss per share was HK$42.83 cents, compared to HK$15.87 cents for the same period in 2024[14] - For the six months ended June 30, 2025, the loss attributable to owners of the company was HK$165,381,000, compared to a loss of HK$61,271,000 for the same period in 2024, representing an increase in loss of approximately 170%[53] - The Group's loss per share for the six months ended June 30, 2025, was HK$0.4283, an increase of approximately HK$0.2696 compared to HK$0.1587 in 2024[150] Assets and Liabilities - Non-current assets decreased to HK$475,150,000 from HK$671,270,000 as of December 31, 2024[18] - Current liabilities decreased to HK$66,925,000 from HK$89,489,000[18] - Net assets as of June 30, 2025, were HK$411,880,000, down from HK$607,973,000 at the end of 2024[18] - Total equity decreased to HK$411,880,000 from HK$607,973,000, reflecting a significant decline in reserves[18] - As of June 30, 2025, the Group had net current liabilities of approximately HK$58.7 million, indicating material uncertainty regarding its ability to continue as a going concern[31][32] - The cash and cash equivalents at the end of the period decreased to HK$7.275 million from HK$75.352 million at the end of June 2024[27] - The Group's total debt-to-equity ratio as of June 30, 2025, was approximately 14.6%, down from approximately 21.7% as of December 31, 2024[163] Cash Flow - Cash generated from operations for the six months ended June 30, 2025, was HK$6.527 million, a decrease from HK$7.484 million in the same period of 2024[27] - The net cash used in investing activities was HK$4.163 million, compared to HK$5.005 million in the previous year[27] - The Group's net cash from financing activities was a negative HK$74.450 million, significantly down from a positive HK$30.275 million in the prior year[27] - The Group's operating activities generated a net cash of HK$6.493 million, down from HK$7.433 million in the previous year[27] - Interest received decreased to HK$722,000 from HK$1.210 million year-over-year[27] Investment Properties - The fair value of investment properties decreased from HK$604,080,000 at the beginning of the period to HK$434,180,000 at the end of the period, reflecting a net decrease in fair value of HK$169,900,000[57] - The carrying value of land in Hong Kong as of June 30, 2025, was HK$434,180,000, down from HK$604,080,000 as of December 31, 2024[58] - The Group's investment property portfolio consists of 38 properties in Hong Kong, with a total market value of approximately HK$434.2 million as of 30 June 2025, down from HK$604.1 million as of 31 December 2024[132] - The Group's investment properties experienced a net decrease in fair value of approximately HK$169.9 million during the Period, compared to a decrease of approximately HK$67.9 million in 2024[140][141] Financing and Debt - The Group fully repaid all bank loans as of June 30, 2025, which were HK$124,588,000 as of December 31, 2024[90] - The Group borrowed HK$60 million from Morning Star Industrial Company Ltd, controlled by the Company's major shareholder, to fully repay existing bank loans[126] - The loan from Morning Star is unsecured, with an interest rate of 0.73% per annum, and interest expenses for the period were approximately HK$49,000[127] Share Capital and Dividends - No dividends were paid, declared, or proposed for the six months ended June 30, 2025, consistent with 2024[55] - The issued and fully paid ordinary shares amounted to 386,175,758 shares, with a total value of HK$3,861,757,000[101] - The authorized share capital remains at 1,000,000,000 shares with a par value of HK$0.01 each[101] Operational Insights - The Group's operating activities are focused on a single segment of property investment, with no separate financial information available for performance assessment by location[39] - The Group is facing challenges in the retail property segment due to rising vacancy rates and declining rents, with retailers adopting a more cautious approach to expansion[145] - The Group's diverse tenant pool has helped maintain high occupancy rates despite the challenging market conditions[147] - The Group will continue to monitor economic developments and adjust rental policies accordingly to support tenants during difficult times[147] Employee and Management Information - The Group employed a total of seven employees as of June 30, 2025, unchanged from December 31, 2024[183] - The Directors do not recommend the payment of an interim dividend for the six months ended June 30, 2025[185] Share Option Scheme - The Company has adopted a share option scheme (the "2025 Scheme") approved by shareholders on June 12, 2025, allowing the Board to grant options to eligible participants[198] - The maximum number of shares that may be issued under the 2025 Scheme is capped at 10% of the issued shares, totaling 38,617,575 shares[200] - The purpose of the 2025 Scheme is to reward participants and align their interests with those of shareholders[198]
永利地产发展(00864) - 2025 - 中期财报