Financial Performance - The total revenue for the six months ended December 31, 2022, was HKD 39,606,000, a decrease of approximately 8% compared to HKD 42,989,000 in the previous year[11]. - Gross profit for the same period was HKD 26,934,000, down about 10% from HKD 29,901,000, resulting in a gross margin of approximately 68% compared to 70% last year[11]. - The company recorded a net profit attributable to shareholders of HKD 1,476,000, significantly down from HKD 48,534,000 in the previous year, with basic earnings per share of HKD 0.0062 compared to HKD 0.2042[12]. - Total comprehensive expenses for the period amounted to HKD 92,204,000, compared to total comprehensive income of HKD 39,663,000 in the previous year[12]. - The profit before tax for the period was HKD 312,000, a sharp decline from HKD 60,389,000 in the previous year[83]. - The net profit for the period was HKD 1,733,000, down from HKD 49,118,000, representing a decrease of 96.5%[83]. - Total comprehensive income for the period was a loss of HKD 90,471,000, compared to a gain of HKD 88,781,000 in the previous year[83]. - Basic earnings per share decreased to HKD 0.62 from HKD 20.42, reflecting a significant drop in profitability[85]. Investment Properties - The fair value of investment properties decreased by HKD 10,812,000 during the period, contrasting with an increase of HKD 48,041,000 in the previous year[11]. - The company reported a loss from investment properties of HKD 10,812,000, compared to a gain of HKD 48,041,000 in the prior year[83]. - The fair value of investment properties decreased to HKD 1,910,697,000 as of December 31, 2022, down from HKD 2,005,063,000 on July 1, 2022, reflecting a net loss of HKD 10,812,000[138]. Rental Income - Rental income from investment properties in Shanghai and Beijing was RMB 35,432,000 (equivalent to HKD 39,606,000), showing stable income compared to RMB 35,499,000 (HKD 42,989,000) last year[14]. - The rental income from the shopping mall in Beijing decreased by about 10% to RMB 12,194,000 (HKD 13,631,000) compared to RMB 13,606,000 (HKD 16,477,000) last year[15]. - Rental income from property leasing was HKD 25,975,000 for the six months ended December 31, 2022, slightly down from HKD 26,512,000 in the same period of 2021[122]. - Rental income from related parties was HKD 467,000 for the six months ended December 31, 2022, down from HKD 528,000 in the same period of 2021[162]. Financial Position - The group's total equity attributable to owners was RMB 1,826,218,000 as of December 31, 2022, with a net asset value per share of RMB 7.70[27]. - The group's bank borrowings totaled approximately HKD 69,918,000, with a debt ratio of 3.4% as of December 31, 2022, down from 4.3% in June 2022[27]. - The group maintained a cash balance of HKD 282,386,000 as of December 31, 2022, with a current ratio of 1.56[29]. - Total equity as of December 31, 2022, was HKD 2,084,544,000, down from HKD 2,176,204,000 as of June 30, 2022[88]. - Non-current liabilities included lease liabilities of HKD 248,925,000, indicating a stable financial position despite the operational losses[88]. Cash Flow - The net cash generated from operating activities for the six months ended December 31, 2022, was HKD 13,708,000, compared to HKD 12,423,000 for the same period in 2021, representing an increase of 10.3%[109]. - The net cash used in investing activities was HKD 165,272,000, significantly higher than HKD 58,180,000 in the previous year, indicating increased investment activity[109]. - The net cash used in financing activities was HKD 24,579,000, compared to HKD 4,064,000 in the prior year, reflecting a substantial increase in financing outflows[109]. - The total cash and cash equivalents at the end of the period decreased to HKD 161,556,000 from HKD 239,661,000, a decline of 32.6%[109]. Management and Governance - The company has adopted the corporate governance code principles and complied with its provisions as of December 31, 2022[73]. - The audit committee reviewed the accounting standards and practices adopted by the group, ensuring compliance with financial reporting matters[76]. - The company employed around 50 staff members, including directors, as of December 31, 2022, with compensation aligned with current market levels[69]. - The total remuneration for key management personnel was HKD 1,859,000 for the six months ended December 31, 2022, compared to HKD 1,258,000 for the same period in 2021[165]. Future Outlook - The management anticipates a rebound in China's economy following the easing of pandemic restrictions, which is expected to boost leasing activities in office and retail sectors[48]. - In Beijing, the retail market is expected to improve with the lifting of zero-COVID policies, leading to better economic and consumer recovery[48]. - The outlook for the Shenzhen real estate market is optimistic due to strong economic fundamentals and supportive government reforms[51]. - The group plans to implement competitive leasing strategies, including renovations and rental subsidies, to attract new tenants and retain existing ones[48]. Joint Ventures and Liquidation - The group is actively working on land exchange matters related to the liquidation of its joint venture partner, Zhenhua, with a new land area of approximately 109,000 square meters designated for mixed-use development[22]. - The court has extended the liquidation period for Zhenhua by six months until July 2023[25]. - The joint venture, Shenzhen Qunhua, has ceased operations and is currently undergoing liquidation[149]. - The company recognized a net loss of HKD 10,368,000 from additional profit allocation in joint ventures, which has not been confirmed as of December 31, 2022[145].
达力集团(00029) - 2023 - 中期财报