Financial Performance - Total revenue for the six months ended June 30, 2022, was HKD 213,429,000, an increase of 11.2% compared to HKD 191,817,000 for the same period in 2021[13]. - Gross profit for the same period was HKD 132,976,000, slightly up from HKD 131,574,000, indicating a stable gross margin[13]. - Operating profit increased to HKD 257,045,000, up 29% from HKD 199,342,000 in the previous year[13]. - Net profit attributable to shareholders for the period was HKD 236,439,000, compared to HKD 171,740,000 in 2021, reflecting a growth of 37.6%[15]. - Earnings per share (basic and diluted) rose to HKD 0.82, up from HKD 0.60 in the prior year[13]. - The total comprehensive income for the period was HKD 261,839,000, compared to HKD 228,640,000 in 2021, indicating a growth of 14.5%[18]. - The group's consolidated profit for the first half of 2022 was HKD 261.4 million, an increase of HKD 87.1 million or 50% compared to HKD 174.3 million in the same period of 2021[101]. - Basic earnings per share for the first half of 2022 were HKD 0.82, up from HKD 0.60 in 2021[101]. Assets and Liabilities - Total assets as of June 30, 2022, amounted to HKD 12,091,934,000, an increase from HKD 11,832,924,000 at the end of 2021[10]. - Total equity increased to HKD 9,034,976,000 from HKD 8,809,572,000, showing a growth of 2.5%[10]. - The company's total liabilities were HKD 3,056,958,000, with HKD 2,770,468,000 in Hong Kong and HKD 286,490,000 in North America[51]. - The group's current liabilities net value as of June 30, 2022, was HKD 104,219,000, a decrease from HKD 458,086,000 at the end of 2021, indicating improved financial stability[29]. - The group reported a significant reduction in short-term bank loans to HKD 240,000,000 from HKD 480,000,000, reflecting a strategic focus on debt management[29]. - Long-term bank loans secured by properties amounted to HKD 2,352,777,000 as of June 30, 2022, an increase from HKD 2,030,816,000 as of December 31, 2021[74]. - Total bank borrowings increased by HKD 82 million to HKD 2.59 billion as of June 30, 2022, compared to HKD 2.51 billion on December 31, 2021[108]. - The debt-to-equity ratio as of June 30, 2022, was 28.7%, slightly up from 28.5% on December 31, 2021[108]. Cash Flow - The net cash generated from operating activities for the six months ended June 30, 2022, was HKD 95,832,000, an increase of 32% compared to HKD 72,594,000 for the same period in 2021[22]. - The net cash used in investing activities was HKD (35,668,000), a significant improvement from HKD (114,468,000) in the previous year, indicating a reduction in investment outflows[22]. - The net cash generated from financing activities was HKD 24,892,000, down from HKD 53,317,000 in the prior year, reflecting changes in financing strategies[22]. - As of June 30, 2022, cash and cash equivalents increased to HKD 197,180,000, compared to HKD 152,814,000 at the end of the previous year, showing a strong liquidity position[22]. Investment Properties - The company reported a fair value gain on investment properties of HKD 187,181,000, compared to HKD 138,130,000 in the previous year[13]. - The total valuation of investment properties as of June 30, 2022, was HKD 9,748.8 million, an increase of HKD 194.7 million or 2% from HKD 9,554.1 million at the end of 2021[102]. - The fair value of investment properties is determined using a capitalization approach, with no transfers between fair value levels during the period[59]. - The fair value per square foot for residential properties under development is HKD 85,000[65]. - The capitalization rates for completed properties ranged from 1.9% to 4.5% for commercial properties, with a specific rate of 6.0% for North American commercial properties[65]. Operational Highlights - The revenue breakdown includes property leasing (HKD 157,021,000), property-related services (HKD 23,785,000), and hotel operations (HKD 14,066,000) for the first half of 2022[42]. - Basic profit from property leasing and related services in Hong Kong was HKD 39,370,000, while North America reported a loss of HKD 84,834,000, leading to a total profit of HKD 261,418,000[49]. - Gross rental income in Hong Kong for the first half of 2022 was HKD 134.5 million, an increase of HKD 2.9 million or 2.2% compared to the same period last year[107]. - Room and dining revenue from hotels for the first half of 2022 was HKD 28.8 million, significantly up from HKD 7.6 million in 2021 due to full operations of the two hotels[107]. - The average occupancy rates for the two hotels during the first half of 2022 were 88.4% and 70% respectively[107]. Dividends and Shareholder Information - Declared interim dividend of HKD 0.14 per share for the six months ended June 30, 2022, compared to HKD 0.10 per share in 2021, totaling HKD 40,274,000[91]. - The company declared an interim dividend of HKD 0.14 per share, an increase from HKD 0.10 per share in the previous year[114]. - Major shareholder, Jin Can Company, holds 138,998,248 shares, representing 48.32% of total shares[121]. - The company did not repurchase or sell any of its shares during the reporting period[125]. Corporate Governance and Compliance - The company has adhered to the corporate governance code as per the Hong Kong Stock Exchange, with the exception of the separation of roles between the Chairman and CEO, which are held by the same individual since June 15, 2017[127]. - The interim results for the six months ending June 30, 2022, have been reviewed by the audit committee and are unaudited, but have been reviewed by independent auditors according to the relevant standards[128]. - The Chairman, Ma Qingwei, confirmed the compliance of all directors with the trading standards during the reporting period[127].
大生地产(00089) - 2022 - 中期财报