Economic Overview - In the first half of 2025, China's GDP grew by 5.4% year-on-year, indicating resilience in economic recovery[12]. - Market conditions and investor sentiment in the PRC real estate industry showed no significant improvement in the first half of 2025[19]. - The real estate market in China remains at a low level, with high inventory levels and a focus on destocking[12]. Financial Performance - The Group's revenue for the first half of 2025 was approximately HK$57,377,000, representing a significant drop of approximately 87.4% compared to HK$455,016,000 in the same period last year[30]. - The gross loss for the Group was approximately HK$7,169,000, a decrease of approximately 93.8% from a gross loss of approximately HK$114,777,000 in the previous year, with a gross loss margin of approximately 12.5%[31]. - The Group recorded a net loss of approximately HK$241,770,000 for the period, compared to a net loss of approximately HK$1,569,918,000 for the six months ended June 30, 2024[40][44]. Cost Management - Selling and distribution expenses decreased by approximately 47.9% to approximately HK$2,233,000 compared to HK$4,288,000 in the same period last year[32]. - Administrative expenses decreased by approximately 87.7% to approximately HK$3,420,000 from approximately HK$27,750,000 in the previous year[32]. - The Group has undertaken various cost control measures to minimize cash outflow of non-essential items[137]. Debt and Liquidity Management - Addressing debt issues is a top priority for the Group, with active communication with banks and creditors to expedite debt repayment or refinancing[14]. - The Group is focusing on liquidity management, optimizing fund allocations, and strengthening capital monitoring to alleviate repayment pressure[21]. - The Group expanded its financing channels to maintain a healthy financial position amid tight financing conditions[18]. Project Management - Timely delivery of existing land development projects is crucial, with measures implemented to strengthen project management and execution capabilities[17]. - The Group continues to invest in the strategy of "guaranteeing funds, delivery, and operation" to ensure stable business growth[18]. - The residential properties of Phase IV of the Shantou Chaoyang Project were completed in March 2025, with sales permits issued for Blocks 9 to 11 in May 2025[24]. Investment Properties - A fair value loss of investment properties amounting to approximately HK$56,413,000 was recognized as of June 30, 2025, compared to approximately HK$196,779,000 in the same period last year[33]. - The fair value loss on investment properties for the period was approximately HK$56,413,000, compared to approximately HK$196,779,000 for the six months ended June 30, 2024[36][40]. - The Group's investment properties are valued using a direct comparison approach, with a fair value increase of approximately HK$697,396,000 projected as of June 30, 2025, based on a price range of HK$8,677 to HK$27,045 per square meter[158]. Share Capital and Dividends - The Company does not recommend any interim dividend for the six months ended June 30, 2025, consistent with the previous year[100]. - As of June 30, 2025, the total issued share capital of the Company was 109,202,495 Shares[99]. - Mr. John Edward Hunt holds 29,737,837 Shares, representing 27.23% of the total issued shares[93]. Corporate Governance - The Company has maintained compliance with the Corporate Governance Code throughout the period, with no deviations reported for the six months ended June 30, 2025[69][74]. - The Board has overall responsibility for maintaining an effective internal control system, with management tasked to implement and review these controls annually[70][75]. - The Company emphasizes high standards of corporate governance and is committed to ongoing reviews and enhancements[68][73]. Employment and Human Resources - The Group had 53 full-time employees as of June 30, 2025, an increase from 46 employees as of December 31, 2024[60]. - The Group's remuneration policies are reviewed annually based on market practices and individual performance, with no significant funds set aside for retirement benefits[64]. Legal and Contingent Liabilities - The Group's management is actively negotiating a disposal plan with the Jieyang Creditor, who is unlikely to take further action in the short term[57]. - As of June 30, 2025, the Group had no material contingent liabilities[62]. - The Directors believe that adequate provisions have been made for overdue borrowings and outstanding construction payables as of June 30, 2025[59].
宝新置地(00299) - 2025 - 中期财报