Financial Performance - The company recorded revenue of approximately HKD 2,300,000 for the six months ended June 30, 2022, a decrease of about 88% compared to HKD 18,400,000 in the same period of 2021[10] - The loss attributable to owners of the company for the period was approximately HKD 11,100,000, compared to a profit of HKD 14,700,000 in 2021[10] - Total comprehensive loss for the period amounted to approximately HKD 13,100,000, compared to total comprehensive income of HKD 21,300,000 in the previous year[10] - The company reported a net loss of approximately HKD 2,700,000 from trading investments, compared to a net gain of HKD 13,200,000 in the previous year[23] - The company incurred a net loss of HKD 13,090,000 for the six months ended June 30, 2022, compared to a profit of HKD 21,266,000 in the previous year[64] - The company reported a total loss before tax of HKD (13,090) thousand for the six months ended June 30, 2022[88] - The company reported a loss attributable to owners of HKD 11,083,000 for the six months ended June 30, 2022, compared to a profit of HKD 14,736,000 in the same period of 2021, representing a significant decline[112] Revenue and Income - The company reported revenue of HKD 2,286,000 for the six months ended June 30, 2022, a significant decrease of 87.6% compared to HKD 18,409,000 for the same period in 2021[64] - The company’s rental income from property investments was approximately HKD 2,300,000, down from HKD 18,400,000 in 2021, reflecting a significant decline[12] - Gross profit for the same period was HKD 2,088,000, down 88.5% from HKD 18,095,000 year-on-year[64] Expenses and Liabilities - Administrative expenses increased to HKD 4,572,000, up 129.3% from HKD 1,998,000 in the prior period[64] - The company's net liabilities stood at HKD 603,086,000, compared to HKD 590,242,000 in the previous year[68] - The total depreciation expense for property, plant, and equipment was HKD 246,000, slightly down from HKD 254,000 in the previous year[106] Cash Flow and Financial Position - As of June 30, 2022, the group's cash and bank deposits amounted to approximately HKD 4,900,000, compared to HKD 11,400,000 as of December 31, 2021[32] - The total cash and cash equivalents decreased by HKD 5,586 thousand, compared to a decrease of HKD 14,174 thousand in the prior year[74] - The company had cash and cash equivalents of HKD 4,900 thousand as of June 30, 2023, compared to HKD 415 thousand at the same date in 2022[74] Borrowings and Debt - The group had interest-bearing bank borrowings of approximately HKD 441,000,000 as of June 30, 2022, down from HKD 452,000,000 as of December 31, 2021[32] - The debt-to-equity ratio as of June 30, 2022, was 123.8%, slightly up from 123.1% as of December 31, 2021, primarily due to a decrease in equity attributable to owners[33] - The company fully repaid the principal amount of HKD 361,000,000 for the promissory notes issued as part of the acquisition of Joy Ease Limited[132] - The company has secured bank borrowings of HKD 1,380,000,000 against investment properties, with an interest rate of Hong Kong Interbank Offered Rate plus 1.4%[137] Management and Governance - The company has not appointed a formal CEO, with responsibilities managed collectively by the executive directors[60] - The board will continue to assess the effectiveness of the company's structure and consider appointing a CEO as the business develops[60] - The audit committee consists of three independent non-executive directors, ensuring compliance with corporate governance standards[60] Market Conditions and Future Outlook - The management noted that the rental performance remains adversely affected by COVID-19, leading to longer vacancy periods for investment properties[22] - The group anticipates that the demand for office space will remain weak in the second half of 2022, reflecting an increase in vacancy rates due to the ongoing impact of the COVID-19 pandemic[31] Investments - The investment property portfolio had a book value of approximately HKD 1,497,800,000 as of June 30, 2022, unchanged from December 31, 2021[12] - The group did not hold any investments representing 5% or more of the total assets as of June 30, 2022[29] - The company held trading investments with a fair value gain of approximately HKD 209,000 during the period[122] Dividends - The group did not declare or propose any dividends during the period[44] - The company did not declare or propose any dividends for the period, consistent with the previous year[110]
远东控股国际(00036) - 2022 - 中期财报