Financial Performance - Revenue for the six months ended September 30, 2025, was RMB 68,818,000, a decrease of 34.2% compared to RMB 104,254,000 for the same period in 2024[9]. - Gross profit for the same period was RMB 37,626,000, down 41.0% from RMB 63,641,000 year-over-year[9]. - Operating profit decreased to RMB 17,527,000, a decline of 57.5% compared to RMB 41,147,000 in the previous year[9]. - Profit for the period was RMB 10,042,000, representing a 51.2% decrease from RMB 20,575,000 in the prior year[10]. - Basic and diluted earnings per share were RMB 2.0 cents, down from RMB 4.1 cents year-over-year[9]. - Total comprehensive income for the period was RMB 10,414,000, a decrease of 49.6% compared to RMB 20,642,000 in the same period last year[10]. - For the six months ended September 30, 2025, the profit before taxation was RMB 18,967,000, a decrease from RMB 42,706,000 in the same period of 2024[17]. - The total comprehensive income for the period was RMB 10,414,000, compared to RMB 20,642,000 for the six months ended September 30, 2024[16]. - Profit attributable to equity shareholders for the same period was RMB 10,042,000, reflecting a decrease of approximately 51% from RMB 20,575,000 year-on-year[78][80]. Assets and Liabilities - Non-current assets increased to RMB 313,395,000 as of September 30, 2025, compared to RMB 273,939,000 as of March 31, 2025[11]. - Cash and cash equivalents rose to RMB 198,801,000 from RMB 133,118,000, indicating improved liquidity[11]. - Net assets increased to RMB 870,559,000 as of September 30, 2025, compared to RMB 860,145,000 at the end of March 2025[11]. - The total equity attributable to the equity shareholders of the company was RMB 870,559,000 as of September 30, 2025, compared to RMB 860,506,000 as of September 30, 2024[16]. - The outstanding guarantees to banks for mortgage arrangements amounted to approximately RMB 194,581,000 as of September 30, 2025, down from RMB 242,453,000 as of March 31, 2025, a decrease of approximately 19.7%[74]. - Completed properties held for sale decreased to RMB 614,019,000 as of September 30, 2025 from RMB 654,618,000 as of March 31, 2025, reflecting a decline of approximately 6.2%[58]. Cash Flow - Cash generated from operations was RMB 23,315,000, an increase from RMB 12,578,000 in the previous year[17]. - The net cash generated from investing activities was RMB 51,878,000, significantly higher than RMB 5,133,000 in the previous year, indicating a strong improvement in cash flow from investments[18]. - The net increase in cash and cash equivalents for the period was RMB 65,409,000, compared to a net decrease of RMB 15,875,000 in the prior year, reflecting improved liquidity[18]. - The cash and cash equivalents at the end of the reporting period amounted to RMB 196,532,000, up from RMB 155,491,000 at the beginning of the period, indicating a strong cash position[18]. - The Group's cash at bank and in hand rose to RMB 160,545,000 as of September 30, 2025 from RMB 94,190,000 as of March 31, 2025, an increase of approximately 70.4%[60]. - The Group's cash and cash equivalents stand at approximately RMB 196,532,000, sufficient to meet current operational and capital expenditure requirements[100]. Investments and Development - The Group's principal activities include the development and sales of residential properties in Dongguan, Huizhou, and Foshan, focusing on the Chinese Mainland market[20]. - The Group's properties under development for sale increased to RMB 228,582,000 as of September 30, 2025 from RMB 223,343,000 as of March 31, 2025, an increase of approximately 2.0%[58]. - The Group recorded a fair value loss of RMB 1,973,000 due to the transfer of certain shops from inventories to investment properties, aimed at enhancing long-term yield potential[78][80]. - New lease agreements resulted in additions of right-of-use assets of approximately RMB 27,655,000 for the six months ended September 30, 2025, with no additions in 2024[50]. - The Group transferred completed properties held for sale to investment properties with a net cost of approximately RMB 11,246,000 during the six months ended September 30, 2025, compared to RMB 6,967,000 in 2024[51]. Corporate Governance and Compliance - The Company complied with the applicable code provisions of the Corporate Governance Code during the Period and will continue to review its practices to achieve high standards of corporate governance[155]. - Stringent procedures were adopted by the Company to govern Directors' securities transactions in compliance with the Model Code, with all Directors confirming compliance throughout the Period[156]. - The Audit Committee, composed of three independent non-executive Directors, reviewed the unaudited interim results for the Period and had no disagreements with the accounting treatment and policies adopted by the Company[153]. Employee and Talent Management - The Group has established a "Cooperative Home Scheme" to retain talent in Mainland China by encouraging high-caliber employees to settle locally through housing support[115][123]. - The Group implemented individual employment contracts covering wages, benefits, and termination terms for approximately 67 employees as of September 30, 2025[114][122]. - A performance-based bonus system is in place, rewarding employees with outstanding performance with higher bonuses than before[116][124]. Market Conditions and Strategy - The PRC real estate market is showing signs of recovery and gradual stability, supported by monetary and property policies[89]. - The Group aims to promote high-quality and sustainable development based on a healthy financial foundation and precise investment strategies[89]. - The Group's marketing strategy focuses on balancing quantity and price to stabilize operating results amid a challenging real estate market[84]. - The Group continues to communicate with government departments regarding the Foshan Project and will evaluate market conditions to determine the best time for development[83]. Shareholder Information - The interests of the Directors and chief executives in the Company as of September 30, 2025, included Mr. Ho Cheuk Fai holding 72.56% of the issued share capital[130]. - The total shares of 269,402,000 include 121,902,000 shares held by New Sense, 82,500,000 shares held by Castfast Properties, and 65,000,000 shares held by The Wedding City[131]. - Mr. Ho Cheuk Fai holds a personal interest of 69,678,000 shares and is deemed to be interested in an additional 27,587,500 shares held by his spouse[131]. - The personal interests of other directors include 1,000,000 shares for Mr. Ho Man Chung, 942,500 shares for Mr. Ho Wai Hon, and 930,000 shares for Ms. Yiu Yuet Fung[131]. Future Plans and Projects - The Group plans to conduct trial operations of the theme park night tour project in October 2025, with full operations expected to commence later that year[90]. - The Group has initiated a night tour project at Long Feng Villa in collaboration with Shenzhen Lighting Century Technology, expected to enhance the attractiveness and scale of the attractions[85]. - An indirect wholly-owned subsidiary of the Company leased land for Long Feng Villa to expand cultural tourism-related business, aiming to enhance property values and regional popularity[85].
嘉创地产(02421) - 2026 - 中期财报