Financial Performance - For the six months ended June 30, 2025, the attributable profit to shareholders was HKD 312 million, an increase of 8.0% compared to HKD 289 million for the same period in 2024[16]. - The basic interim earnings per share for 2025 was HKD 0.239, slightly lower than HKD 0.246 in 2024[16]. - The unaudited profit attributable to shareholders, considering fair value changes of property development interests and impairment of investment properties, was HKD 125 million, a 10.6% increase from HKD 113 million in 2024[18]. - The interim dividend for 2025 was declared at HKD 0.10 per share, unchanged from 2024[18]. - The operating revenue for the six months ended June 30, 2025, was HKD 2.429 billion, an increase of 25.2% compared to HKD 1.941 billion in 2024[45]. - The group recorded a net profit of HKD 115.121 million for the period, slightly up from HKD 113.104 million in the previous year[45]. - Total comprehensive income for the period reached HKD 214,304,000, significantly up from HKD 78,542,000 in the previous year, indicating a year-over-year increase of 172.5%[46]. - The company reported a profit of HKD 115,121,000 for the six months ended June 30, 2025, compared to HKD 113,104,000 for the same period in 2024, representing a growth of 1.8%[46]. - The group reported a profit before tax of HKD 195,801,000, compared to HKD 199,345,000 for the same period in 2024, indicating a slight decrease of 1.8%[61]. - The company reported a pre-tax profit of HKD 73,965,000 for the six months ended June 30, 2025, compared to HKD 85,140,000 for the same period in 2024[67]. Property Development and Sales - The group sold over 1,480 residential units at the residential development project "Ocean Garden" in Tseung Kwan O, Hong Kong, accounting for approximately 95% of the total units, with sales revenue of about HKD 1.4 billion recognized during the review period[20]. - In mainland China, the total pre-sale/sales amount for the group's development projects was approximately RMB 671 million, with the group's attributable share being about RMB 518 million, and recognized sales revenue of approximately RMB 756 million during the review period[20]. - The property development segment generated HKD 1,419,027,000 in revenue from Hong Kong and HKD 600,249,000 from mainland China[61]. - The group plans to launch the sale of units in the "Banshan Minghui" project in Sai Ying Pun, which has a 60% ownership interest, with expectations of strong market response due to its prime location[25]. - The "Qingshuiwan Road" development project in Kowloon, with a construction area exceeding 2,000,000 square feet, is the group's most important development project currently, with completion expected in the first half of 2027[25]. - The "Jiangwan South Garden" Phase 3 residential development project in Huizhou has completed design modifications and will commence construction upon obtaining the necessary approvals[26]. - The "Shan Yu Hu" Phase 5 development project in Foshan has completed construction, while the "Tianjin City Square" Phase 3B project is ongoing and expected to be completed by the end of 2026[28]. - The "Yangpu" project in Shanghai, in which the group holds a 40% interest, has obtained preliminary construction permits and is preparing for foundation work[29]. Financial Position and Assets - As of June 30, 2025, the total bank loans of the group amounted to HKD 18.740 billion, a decrease from HKD 19.125 billion in 2024, with a net bank borrowing of HKD 17.783 billion after accounting for cash and bank balances of HKD 0.957 billion[33]. - The company’s total liabilities decreased from HKD 6,508,237,000 to HKD 4,756,551,000, a reduction of 26.9%[48]. - The company’s equity attributable to shareholders rose to HKD 17,537,434,000 from HKD 17,471,141,000, reflecting a growth of 0.4%[48]. - The company’s non-current assets totaled HKD 19,009,839,000 as of June 30, 2025, slightly down from HKD 19,393,998,000 at the end of 2024, reflecting a decrease of 2.0%[47]. - Current assets decreased to HKD 22,636,721,000 from HKD 23,314,398,000, marking a decline of 2.9%[47]. - The total value of bank loans secured by properties and shares of subsidiaries was HKD 2,668,605,000 as of June 30, 2025, unchanged from December 31, 2024[20a]. - The total inventory as of June 30, 2025, was HKD 20,508,918,000, a decrease from HKD 21,278,307,000 as of December 31, 2024[76]. - The company’s deferred tax assets were reported at HKD 129,013,000 as of June 30, 2025[65]. - The company has capital commitments of HKD 93,677,000 as of June 30, 2025, an increase from HKD 77,594,000 as of December 31, 2024[89]. Market Conditions and Outlook - The commercial property market in Hong Kong faced downward pressure on rental and sales prices due to high vacancy rates and weak demand[19]. - The Hong Kong interbank offered rate (HIBOR) significantly decreased by the end of June 2025, positively impacting residential sales and prices[19]. - The group expects that if the HIBOR remains low and the overall economy in Hong Kong grows healthily, it will encourage potential buyers and investors to enter the market, leading to improved transaction volumes and stable or rising prices[24]. - The group identified significant growth opportunities in property development and investment, focusing on expanding its market presence in Hong Kong and mainland China[58]. Financial Management and Strategy - The group has implemented a conservative dividend policy due to the challenging operating environment in the real estate sector[34]. - The group plans to strategically sell remaining units of Hain Manor and other projects to generate additional cash flow in the coming years[34]. - The group is closely monitoring interest rate fluctuations and considering hedging arrangements to manage financial risks[35]. - The group invested approximately HKD 0.657 billion in project development in Hong Kong and mainland China during the period[35]. - The group has established a joint venture to acquire multiple properties in Hong Kong, with plans for demolition in the near term[35]. Employee and Governance - As of June 30, 2025, the group employed 2,214 staff, a decrease from 2,476 staff as of December 31, 2024[105]. - Total employee costs reduced to HKD 316 million, down from HKD 329 million as of June 30, 2024[105]. - The group emphasizes competitive compensation levels and discretionary bonuses based on performance to attract and retain talent[105]. - The establishment of a recreational committee aimed at enhancing team spirit and communication among departments[106]. - The company complied with all provisions of the corporate governance code except for specific clauses related to the roles of the chairman and CEO[91]. Audit and Compliance - The independent auditor, KPMG, reviewed the interim financial report for the six months ending June 30, 2025, in accordance with Hong Kong standards[108].
九龙建业(00034) - 2025 - 中期财报