Financial Performance - Revenue for the six months ended June 30, 2022, was HKD 176,563,000, a decrease of 30.8% compared to HKD 255,091,000 in the same period of 2021[6] - Gross profit dropped significantly to HKD 5,014,000, down 96.2% from HKD 130,755,000 year-on-year[6] - The company reported a loss of HKD 477,216,000 for the period, compared to a profit of HKD 22,026,000 in the previous year[7] - Basic and diluted loss per share was HKD 129.6, a decline from earnings of HKD 2.9 in the same period last year[6] - The total comprehensive loss for the six months ended June 30, 2022, was HKD 364,955,000, compared to a total comprehensive income of HKD 20,546,000 for the same period in 2021[12] - The group reported a net loss of HKD 477,216,000 for the six months ended June 30, 2022, compared to a profit of HKD 22,026,000 for the same period in 2021[34] - The group recorded a loss attributable to shareholders of approximately HKD 317,413,000 for the reporting period, compared to a profit of approximately HKD 7,056,000 for the same period in 2021[74] Assets and Liabilities - Total assets decreased to HKD 3,107,641,000 as of June 30, 2022, down from HKD 4,750,128,000 at the end of 2021[9] - Non-current assets fell to HKD 2,019,172,000, a reduction of 24.6% from HKD 2,678,983,000[9] - Current liabilities increased to HKD 807,743,000, compared to HKD 887,895,000 in the previous year[10] - The company’s total equity attributable to owners decreased to HKD 675,963,000 as of June 30, 2022, from HKD 1,261,931,000 at the beginning of the year[12] - The group’s total liabilities as of June 30, 2022, were HKD 453,445,000, a decrease from HKD 583,126,000 as of December 31, 2021, reflecting a reduction of approximately 22.3%[35] Cash Flow and Liquidity - Cash and cash equivalents increased to HKD 59,257,000 from HKD 51,582,000, indicating improved liquidity[9] - The net cash flow from operating activities for the six months ended June 30, 2022, was HKD 21,318,000, a decrease of 88.2% compared to HKD 180,425,000 for the same period in 2021[15] - Cash and cash equivalents at the end of the period were HKD 59,257,000, down from HKD 94,976,000 at the end of June 2021[15] - The group’s cash and cash equivalents were approximately HKD 59,257,000 as of June 30, 2022, an increase from HKD 51,582,000 as of December 31, 2021[76] Investments and Property - The fair value of completed investment properties in China was HKD 1,764,525,000 as of June 30, 2022, down from HKD 2,394,190,000 at the end of 2021[24] - The group recognized a fair value loss on investment properties amounting to HKD 453,820,000 for the six months ended June 30, 2022, which was not present in the previous year[39] - The fair value of completed investment properties in China was HKD 1,764,525,000 as of June 30, 2022, down from HKD 2,394,190,000 as of December 31, 2021, reflecting a decrease of approximately 26.3%[26] Corporate Governance and Compliance - The company has complied with all provisions of the corporate governance code, except for the separation of the roles of Chairman and CEO, which remains unfilled[104] - The audit committee has reviewed the accounting principles and practices adopted by the group and discussed financial reporting matters, including the unaudited interim financial performance for the reporting period[109] Future Plans and Strategies - The company plans to focus on market expansion and new product development to recover from the current financial downturn[8] - The group plans to sell non-core assets to reserve more cash, reduce leverage and debt, and make prudent investments[73] - The group aims to reduce operating costs and lower debt to mitigate the impact of external instability[73] - The group will maintain a cautious yet optimistic outlook for further development despite potential unforeseen adverse developments[93] Legal Matters - The company has made a provision of approximately RMB 42,037,000 (approximately HKD 49,242,000) in its consolidated profit and loss for the six months ended June 30, 2022, related to a legal claim involving construction contract disputes[62] - The company is pursuing a legal case against Zhejiang Beishen Cultural Tourism Development Co., Ltd. for the return of a loan principal of RMB 30 million, with the case having been heard on July 7, 2022, but no judgment has been made yet[64] - The company is currently assessing a legal dispute involving a construction contract, which is not expected to have a significant adverse impact on the group's financial position[112] Shareholder Information - Major shareholders included Rhenfield Development Corp. with a 28.73% stake and 曾芷諾 with a 51.10% stake in the company as of June 30, 2022[99] - No dividends were declared or proposed for the six months ended June 30, 2022, consistent with the previous year[45] - No interim dividend was recommended for the reporting period, consistent with the previous year[96]
钧濠集团(00115) - 2022 - 中期财报