Financial Performance - The Group's attributable profit for the six months ended June 30, 2022, decreased to HKD 152 million, down 75% from HKD 619 million in the same period of 2021[9]. - The basic earnings per share for the first half of 2022 was HKD 0.13, compared to HKD 0.53 in the same period of 2021[11]. - The Group's underlying profit, after excluding revaluation changes and fair value changes, fell to HKD 149 million, a decrease of 52% from HKD 312 million in the previous year[11]. - The operating revenue for the six months ended June 30, 2022, was HKD 723,624,000, down from HKD 995,623,000 in the same period of 2021[26]. - The net profit for the period was HKD 153,808,000, a decrease from HKD 622,351,000 in the previous year[28]. - The total revenue for the six months ended June 30, 2022, was HKD 723,624,000, a decrease from HKD 995,623,000 for the same period in 2021, representing a decline of approximately 27.3%[40]. - Property development revenue for the six months ended June 30, 2022, was HKD 161,278,000, compared to HKD 266,574,000 in 2021, indicating a decrease of about 39.6%[40]. - Rental income for the same period was HKD 120,831,000, down from HKD 151,170,000 in 2021, reflecting a decline of approximately 20.1%[40]. - The reported loss from property development was HKD 35,915,000 for the six months ended June 30, 2022, compared to a profit of HKD 173,082,000 in the previous year[41]. Dividends and Shareholder Returns - The interim dividend for 2022 was declared at HKD 0.26 per share, slightly up from HKD 0.25 per share in 2021[11]. - The company approved a dividend of HKD (294,158) thousand for the current year, reflecting a decrease from the previous year's dividend of HKD (658,914) thousand[34]. Assets and Liabilities - Total assets as of June 30, 2022, were HKD 28,748,562,000, an increase from HKD 27,953,080,000 as of December 31, 2021[29]. - The company’s total liabilities as of June 30, 2022, were HKD 12,051,010 thousand, down from HKD 13,460,816 thousand as of December 31, 2021, representing a decrease of about 10.5%[34]. - The total assets as of June 30, 2022, were HKD 12,107,316 thousand, compared to HKD 14,413,904 thousand as of December 31, 2021, showing a decrease of approximately 16.0%[34]. - The company reported a cash and bank balance of HKD 1,206,927,000 as of June 30, 2022[43]. - The company reported a significant increase in the fair value of property development rights, reaching HKD 1,872,714,000 as of June 30, 2022, compared to HKD 1,870,030,000 as of December 31, 2021[66]. Development Projects and Landbank - The landbank amounted to approximately 3.5 million sq m of attributable gross floor area in Hong Kong and Mainland China as of June 30, 2022[3]. - The Group's property development land reserve in Hong Kong is 252,000 sq m, while in Mainland China, it is 3,405,000 sq m[8]. - The group achieved over 500 pre-sold units in the Tseung Kwan O Oceanview project, generating a cumulative pre-sale amount exceeding HKD 3.3 billion as of June 30, 2022[14]. - In mainland China, the group's attributable pre-sale/sales total exceeded RMB 752 million (approximately HKD 879 million) for the six months ending June 30, 2022[14]. - The group completed the acquisition of 70% equity in a property development project in Zhuhai for a total consideration of HKD 816.6 million, enhancing its land reserves[15]. - The group is progressing with the demolition works for the High Street project in Sai Ying Pun, with foundation works expected to commence in Q4 2022 and pre-sales anticipated in 2023[18]. - The group’s development projects in Shenyang and Wuxi are expected to generate revenue in 2023 and 2024, respectively, contributing positively to the group's performance[19]. Financial Position and Debt - As of June 30, 2022, the total bank loans amounted to HKD 23,044,000,000, an increase from HKD 14,702,000,000 as of December 31, 2021[21]. - The capital debt ratio rose significantly to 128.5% as of June 30, 2022, compared to 78.4% on December 31, 2021, primarily due to a land premium payment of HKD 9,658,000,000[21]. - The company reported a net cash inflow from financing activities of HKD 8,602,371 thousand for the six months ended June 30, 2022, compared to HKD 2,639,227 thousand for the same period in 2021[35]. - The company experienced a net cash outflow from investing activities of HKD (837,462) thousand for the six months ended June 30, 2022[35]. - Bank loan interest increased to HKD 160,056,000 for the six months ended June 30, 2022, from HKD 112,007,000 in 2021[48]. Market Conditions and Economic Impact - The overall economic growth in Mainland China was negatively impacted by intermittent lockdowns due to the zero-COVID policy[13]. - The tightening policies implemented in the second half of 2021 led to a decline in transaction volume and prices in the real estate market[13]. - The group anticipates that the real estate market in Hong Kong may be affected by rising interest rates, but recent large new development projects have received strong market responses[18]. Employee and Corporate Governance - The total employee count as of June 30, 2022, was 2,700, a decrease from 2,854 employees as of December 31, 2021[90]. - Total employee costs increased to HKD 333 million as of June 30, 2022, up from HKD 298 million as of June 30, 2021[90]. - The company aims to enhance employee skills through various training programs to adapt to changing economic conditions[90]. - The company has established a recreational committee to organize activities for employees to boost team spirit and communication[90]. Compliance and Audit - The independent auditor, KPMG, reviewed the interim financial report for the six months ending June 30, 2022[92]. - The company complied with all relevant provisions of the Hong Kong Stock Exchange Listing Rules, except for a deviation regarding the roles of the Chairman and CEO[79].
九龙建业(00034) - 2022 - 中期财报