Financial Performance - The Group's revenue for the period was HKD 3,100,000,000, with attributable profit to equity holders amounting to HKD 482,000,000[9]. - The group's revenue for the six months ended June 30, 2023, was HKD 3.1 billion, a decrease compared to the same period last year due to fewer pre-sale project deliveries[11]. - The attributable profit to equity holders for the period was HKD 482 million, with core earnings (excluding fair value changes and sale gains from investment properties) at HKD 462 million[11]. - The company's revenue for the six months ended June 30, 2023, was HKD 3,100,250, a decrease of 42.5% compared to HKD 5,391,730 for the same period in 2022[29]. - Gross profit for the same period was HKD 1,084,892, down 36.3% from HKD 1,705,454 in 2022[29]. - The net profit for the six months ended June 30, 2023, was HKD 510,602, representing a decline of 53.9% from HKD 1,109,727 in the previous year[29]. - Basic earnings per share for the period was HKD 15.38, down 55.5% from HKD 34.51 in 2022[29]. - The total comprehensive loss for the period was HKD 752,669, compared to a total comprehensive income of HKD 734,136 in the same period last year[30]. - The company reported a profit before tax of HKD 825,538 for the six months ended June 30, 2023, down from HKD 1,428,642 in the same period last year, a decline of 42.2%[47]. Sales and Contracts - The Group has contracted sales of HKD 4 billion during the period[9]. - The group signed contracts for attributable sales of approximately HKD 4 billion during the period, primarily from projects in Hong Kong and Nanjing[11]. - As of June 30, 2023, the Group had contracted but unrecognized sales of HKD 18.6 billion[9]. - As of June 30, 2023, the group had unrecognized attributable sales of approximately HKD 18.6 billion, expected to be recognized starting in the second half of 2023[11]. - The Nanjing project Jia Jing Feng recorded signed sales of approximately RMB 1 billion during the period, with a total of RMB 5 billion in signed sales from the project[13]. Dividends and Shareholder Returns - Earnings per share were HKD 0.154, and an interim dividend of HKD 0.07 per share was declared[9]. - The total interim cash dividend to be distributed is HKD 219,303,000, consistent with the previous year[10]. - The board has declared an interim cash dividend of HKD 219,303,000, maintaining the dividend at HKD 0.07 per share, consistent with the previous year[51]. Market Conditions and Strategy - The Group plans to prudently seek opportunities in Hong Kong, the Pearl River Delta, and the Yangtze River Delta regions while replenishing land reserves as needed[9]. - The Hong Kong property market saw a 31% year-on-year increase in first-hand property transactions, with the government’s private residential price index rising by 4.3%[16]. - The group plans to continue expanding its land reserves in Hong Kong and mainland China based on market conditions[18]. - The International Monetary Fund forecasts a GDP growth of 5.2% for 2023 in mainland China, contributing to one-quarter of global growth, while the central government's official growth target is set at approximately 5%[19]. - In Hong Kong, the local GDP grew by 2.9% and 1.5% in the first and second quarters respectively, with a revised annual growth target of 4-5% for 2023[20]. Financial Position and Assets - As of June 30, 2023, the total amount of funds utilized by the group was HKD 61 billion, a decrease from HKD 62 billion at the end of 2022[21]. - The group's borrowings amounted to HKD 15.037 billion as of June 30, 2023, with an average borrowing interest rate increasing from 2.6% to 4.1% due to market rate hikes[22]. - The group's cash and bank deposits stood at HKD 8.569 billion as of June 30, 2023, with approximately 83% held in RMB[22]. - The debt ratio slightly increased from 13% at the end of 2022 to 14% as of June 30, 2023[22]. - As of June 30, 2023, the total assets decreased to HKD 74,917,450 from HKD 76,635,909 as of December 31, 2022, reflecting a decline of about 2.2%[31]. - The company's total equity as of June 30, 2023, was HKD 45,881,807, down from HKD 46,642,871 at the end of 2022, indicating a decrease of approximately 1.6%[31]. - The total liabilities as of June 30, 2023, were HKD 29,035,643, slightly down from HKD 29,993,038 at the end of 2022, reflecting a decrease of about 3.2%[31]. Operational Efficiency - The average occupancy rate for the premium office building Shanghai Jia Hua Center was maintained at 90%[13]. - The total number of employees in Hong Kong and mainland China was 945 as of June 30, 2023, with employee costs amounting to approximately HKD 256 million during the period[25]. - The company reported a loss from joint ventures of HKD 6,538, an improvement from a loss of HKD 16,225 in the previous year[29]. - The net cash generated from operating activities for the six months ended June 30, 2023, was HKD 1,698,697, an increase from HKD 773,550 in the same period of 2022, representing a growth of approximately 119%[32]. Financial Risks and Management - The group faces various financial risks, including market risk, credit risk, and liquidity risk, with no significant changes in its financial risk management structure since December 31, 2022[39]. - The group has signed interest rate swap contracts totaling HKD 2 billion to mitigate interest rate volatility[23]. Corporate Governance and Compliance - The board has adhered to the corporate governance code, with some deviations noted regarding the roles of the chairman and the managing director[77]. - The company has maintained a strong commitment to corporate governance principles to enhance shareholder value[77]. - The audit committee reviewed the interim results for the six months ending June 30, 2023, which were unaudited[75]. Share Options and Management - The total number of share options available under the 2021 Share Option Scheme as of June 30, 2023, is 312,697,461[65]. - The total number of share options granted under the 2011 Share Option Scheme is 39,420,000 shares, representing approximately 1.26% of the issued shares at that date[68]. - The total number of share options held by employees as of June 30, 2023, is 11,550,000, after accounting for 850,000 options that expired during the period[67].
嘉华国际(00173) - 2023 - 中期财报