Financial Performance - The Group's revenue from continuing operations for the Period was approximately HK$79,199,000, a decrease of approximately HK$150,686,000 compared to HK$229,885,000 in the 2024 Period, primarily due to decreased property sales[18]. - The gross profit margin for the Period was approximately 1.5%, down from approximately 2.6% in the 2024 Period[18]. - The consolidated loss attributable to owners of the Company for the Period was approximately HK$109,293,000, a significant decrease from HK$709,482,000 in the 2024 Period[21]. - The basic and diluted loss per share from continuing and discontinued operations was HK$1.48 for the Period, compared to HK$9.59 for the 2024 Period[22]. - Revenue for the six months ended September 30, 2025, was HK$79,199,000, a decrease of 65.5% compared to HK$229,885,000 for the same period in 2024[193]. - Gross profit for the period was HK$1,188,000, down 79.9% from HK$5,888,000 in the previous year[193]. - Loss before taxation was HK$109,615,000, compared to a profit of HK$22,787,000 for the same period in 2024[193]. - The net loss for the period was HK$109,301,000, a significant decrease from a loss of HK$709,495,000 in the previous year[193]. - For the six months ended September 30, 2025, the loss attributable to owners of the Company was HK$109,293,000, compared to a profit of HK$24,334,000 in the same period of 2024[195]. - Total comprehensive expense for the period was HK$109,006,000, a significant decrease from HK$670,968,000 in the prior year[196]. - Basic and diluted loss per share from continuing operations was HK$1.48, compared to earnings of HK$0.33 in the same period of 2024[196]. Property Development - Revenue from the property development segment during the Period amounted to approximately HK$65,082,000, down from HK$219,199,000 in the 2024 Period[28]. - The property development segment reported revenue from continuing operations of approximately HK$65,082,000 for the period, compared to HK$219,199,000 in the 2024 period, indicating a significant decrease[31]. - The Group launched sales of the "Garden Crescent" residential project in November 2023, with 33 units sold and contracted sales totaling approximately HK$382,457,000[29]. - During the Period, 3 units and 1 carpark space were completed, generating revenue of approximately HK$34,102,000 from property sales[29]. - A total of 33 units and 3 car parking spaces were sold, with a cumulative contracted sales amount of approximately HK$382,457,000 during the period[32]. - The Group's completed residential project "Ayton" recorded contracted sales of approximately HK$1,169,872,000, with 57 units sold during the period[37]. Financial Position - The Group's financial assets at fair value through profit or loss amounted to approximately HK$106,765,000, down from approximately HK$139,564,000 as of March 31, 2025[45]. - The Group's total bank borrowings amounted to approximately HK$1,296,391,000 as of September 30, 2025, compared to HK$1,274,237,000 as of March 31, 2025[72]. - The current ratio remained stable at approximately 1.4 as of September 30, 2025, consistent with the previous period[73]. - Cash and cash equivalents increased by approximately 280.6% to HK$59,518,000, up from HK$15,638,000 as of March 31, 2025[73]. - The Group's net current assets decreased to approximately HK$523,872,000 from HK$591,581,000 as of March 31, 2025[73]. - Non-current assets decreased to HK$1,256,059,000 as of September 30, 2025, from HK$1,297,887,000 as of March 31, 2025[198]. - Current assets totaled HK$1,988,313,000, slightly down from HK$2,032,071,000 as of March 31, 2025[199]. - Secured bank borrowings increased to HK$1,134,634,000 as of September 30, 2025, compared to HK$1,112,302,000 as of March 31, 2025[199]. - Total equity decreased to HK$1,617,559,000 as of September 30, 2025, from HK$1,726,565,000 as of March 31, 2025[199]. - Properties held for sale increased to HK$1,726,047,000 as of September 30, 2025, from HK$1,120,130,000 as of March 31, 2025[198]. Investment Activities - The Group is considering selling the property "The Quad," a student hostel with nearly 200 rooms, which is currently fully rented out[33]. - The Group's investment in Ping An Insurance (Group) Company of China, Ltd. had a fair value of HK$14,217,000, accounting for 0.4% of total assets[49]. - The Group's investment in Best Food Holding Company Limited had a fair value of HK$37,977,000, representing 1.2% of total assets[49]. - The Group disposed of 33.75% of the outstanding principal amount of the convertible note for a total consideration of HK$27,000,000, reflecting a premium of HK$3,375,000[56]. - The total number of conversion shares for the convertible note was adjusted to 500,000,000 shares at the new conversion price of HK$0.14 per share after the rights issue[52]. - The Group's secured loans included collateral valued at HK$18,000,000 and HK$17,250,000, representing 31% of the total loans receivable[62]. - The impairment loss recognized in profit or loss for the loan financing business was approximately HK$1,894,000, a decrease from HK$7,954,000 in the previous period[71]. Corporate Governance - The Company has fully complied with the Corporate Governance Code during the reporting period, with some disclosed deviations[173]. - Ms. Koon Ho Yan Candy serves as both president and CEO, a decision deemed appropriate by the Board for consistent leadership[175]. - The Company will continue to review its governance structure as necessary[175]. - The board believes that the current risk management and internal control processes are adequate, and there is no immediate need for an internal audit function[177]. - The audit committee has reviewed the unaudited condensed consolidated financial statements for the period[186]. - There were no significant changes in directors' information that required disclosure[178]. - The company has adopted a code of conduct regarding securities transactions by directors, and all directors confirmed compliance during the period[182]. Market Outlook - The Group anticipates that market confidence in the Hong Kong property sector will gradually restore as interest rates begin to ease[133]. - The Hong Kong Monetary Authority announced the suspension of the mortgage stress test and relaxation of loan-to-value ratios to stabilize the property market[133]. - The Group is focused on optimizing tenant mix to adapt to changing market trends and competition in the retail leasing business[137]. - The Group will continue to monitor market changes and explore potential opportunities to provide steady returns for shareholders[138].
永义国际(01218) - 2026 - 中期财报