Financial Performance - Revenue for the six months ended June 30, 2025, was HKD 25,049,000, a decrease of 3.5% compared to HKD 25,954,000 in the same period of 2024[9] - Gross profit for the same period was HKD 14,473,000, down 18.5% from HKD 17,696,000 year-over-year[9] - The company reported a pre-tax loss of HKD 53,238,000, compared to a loss of HKD 42,574,000 in the previous year, reflecting a 25.1% increase in losses[9] - The company recorded a net loss of HKD 44,271,000 for the period, compared to a loss of HKD 36,433,000 in the same period last year, representing a 21.4% increase in net losses[11] - For the six months ended June 30, 2025, the company reported a total loss of HKD 44,271,000, compared to a loss of HKD 36,433,000 for the same period in 2024, indicating an increase in losses of approximately 21% year-over-year[15] - The company’s basic and diluted loss per share for the period was HKD 1.42, compared to HKD 1.16 in the previous year, indicating a worsening of per-share performance[9] - The group reported a loss attributable to owners of approximately HKD 44,300,000 for the six months ended June 30, 2025, compared to a loss of approximately HKD 36,400,000 for the six months ended June 30, 2024, mainly due to fair value losses on investment properties[65] Assets and Liabilities - The total assets as of June 30, 2025, were HKD 1,062,360,000, a slight decrease from HKD 1,069,099,000 at the end of 2024[12] - Non-current liabilities increased to HKD 423,887,000 from HKD 421,213,000, indicating a marginal rise in long-term obligations[14] - The company has a net current liability of approximately HKD 23,022,000 as of June 30, 2025, indicating potential liquidity challenges[22] - As of June 30, 2025, the company's total equity was HKD 590,275,000, a decrease from HKD 605,566,000 as of June 30, 2024, reflecting a decline of about 2.5%[15] - As of June 30, 2025, the group's total debt amounted to approximately HKD 371,000,000, an increase from HKD 358,100,000 as of December 31, 2024[67] - The debt-to-equity ratio increased to 62.2% as of June 30, 2025, compared to 57.9% as of December 31, 2024, indicating a higher level of financial leverage[68] Cash Flow - Cash and cash equivalents decreased to HKD 4,032,000 from HKD 9,721,000, indicating a significant reduction in liquidity[12] - The net cash used in operating activities for the six months ended June 30, 2025, was HKD (829,000), slightly improved from HKD (848,000) in the previous year[17] - The company generated a net cash inflow from investing activities of HKD 62,000 for the six months ended June 30, 2025, compared to a net cash outflow of HKD (805,000) in the same period of 2024[17] - The financing activities resulted in a net cash inflow of HKD 245,000 for the six months ended June 30, 2025, contrasting with a net cash outflow of HKD (2,266,000) in the previous year[17] - As of June 30, 2025, the company's cash and cash equivalents decreased to HKD 4,032,000 from HKD 9,991,000 at the end of June 2024, representing a decline of approximately 59.7%[17] Revenue Sources - The company operates in three main segments: property development, property investment, and property management, focusing on projects in China[25] - Total revenue and external sales for the six months ended June 30, 2025, amounted to HKD 25,049,000, a decrease from HKD 25,954,000 for the same period in 2024, representing a decline of approximately 3.5%[27] - The total rental income from investment properties was HKD 16,869,000 for the six months ended June 30, 2025, down from HKD 17,867,000 in 2024, showing a decline in rental revenue[34] - Rental income from the Future City shopping center was approximately HKD 14,900,000 for the six months ended June 30, 2025, down from HKD 17,400,000 for the same period in 2024, a decrease of 14.4%[54] - The segment operating performance showed a loss of HKD 261,000 in development business, while investment and management businesses reported profits of HKD 8,795,000 and HKD 546,000 respectively, leading to a total segment operating profit of HKD 9,080,000[27] Expenses - The total employee costs, including directors' remuneration, increased to HKD 11,045,000 for the six months ended June 30, 2025, up from HKD 10,062,000 in 2024, marking an increase of approximately 9.8%[34] - The company incurred financial expenses of HKD 19,377,000 for the six months ended June 30, 2025, a decrease from HKD 20,924,000 in 2024, reflecting a reduction in borrowing costs[30] - Administrative expenses decreased by approximately 12.9% to about HKD 12,100,000 for the current period, down from HKD 13,900,000 for the six months ended June 30, 2024, due to reductions in legal, professional fees, and employee costs[62] - Financial expenses decreased to approximately HKD 19,400,000 for the current period, down from HKD 20,900,000 for the six months ended June 30, 2024, primarily due to a reduction in interest expenses of about HKD 1,700,000[63] Strategic Initiatives - The company plans to accelerate the collection of overdue trade receivables and implement cost control measures to manage sales costs and administrative expenses[23] - The company is actively seeking potential projects compatible with its main business to support further development[53] - The management is actively seeking potential projects that align with the group's core business, particularly in infrastructure-related sectors, amid a complex and challenging operating environment[69] Shareholder Information - Major shareholders include LIHL with 728,912,000 shares (23.30%) and CFIIL with 698,079,429 shares (22.32%) as of June 30, 2025[78] - The company did not declare an interim dividend for the six months ended June 30, 2025, consistent with the previous year[35] - The company did not declare an interim dividend for the period, consistent with the previous year[88] Other Information - The company has not adopted any new accounting standards that would significantly impact its financial reporting for the current period[21] - The company did not sell any investment properties during the six months ended June 30, 2025, maintaining its investment portfolio unchanged[38] - The company established Wuhan Future City Property Management Co., Ltd. to manage the Future City shopping center, generating property management revenue of approximately HKD 8,200,000 for the six months ended June 30, 2025[56] - The audit committee, composed of independent non-executive directors, reviewed the group's unaudited financial performance for the period[96] - No significant investments or capital asset agreements were signed during the reporting period, and no major acquisitions or disposals occurred[90][92]
中国城市基础设施(02349) - 2025 - 中期财报