Financial Performance - Revenue for the six months ended September 30, 2022, decreased by 72.3% to HKD 76 million from HKD 274 million in the same period of 2021[18]. - Gross profit for the same period fell by 65.7% to HKD 7.6 million compared to HKD 22.2 million in the previous year[23]. - The group recorded a net loss of HKD 10.3 million from its joint venture in Macau, a significant decline from a net profit of HKD 741.1 million in the same period of 2021[23]. - Basic earnings per share for the period were HKD 0.13, down from HKD 0.58 in the previous year[18]. - The group recorded a net profit attributable to the company's owners of HKD 125,500,000 for the period, a decrease from HKD 558,800,000 in the same period last year[25]. - The group reported a segment loss of HKD 50,600,000 in the property division, compared to a profit of HKD 832,000,000 in the same period last year[27]. - The contribution from the luxury residential project in Macau decreased to HKD 19,900,000, down from HKD 756,300,000 in the previous year[28]. - The group achieved revenue of HKD 62,300,000 from the remaining residential units and a shop in the urban redevelopment project, down from HKD 256,000,000 in the previous year[31]. - The hotel and leisure division recorded a profit of HKD 250,000,000, a turnaround from a loss of HKD 54,900,000 in the previous year, primarily due to a reversal of impairment losses[35]. - The group incurred a total operating loss of HKD 114,001,000 for the six months ended September 30, 2022[124]. Assets and Liabilities - The total assets as of September 30, 2022, amounted to HKD 7,892 million, compared to HKD 6,599 million as of March 31, 2020[21]. - Total assets as of September 30, 2022, amounted to HKD 6,480,952,000, a decrease from HKD 6,710,096,000 as of March 31, 2022[131]. - Total liabilities as of September 30, 2022, were HKD 2,458,225,000, down from HKD 2,505,327,000 as of March 31, 2022[131]. - As of September 30, 2022, the total bank borrowings of the group amounted to HKD 1,418,700,000, with a net asset liability ratio of 0.29[44]. - The group’s current liabilities exceeded current assets by HKD 9,781,000 as of September 30, 2022[117]. - The company’s total liabilities decreased, reflecting a strategic focus on reducing debt levels[110]. Dividends - The company did not declare an interim dividend for the period, compared to HKD 0.10 per share in the previous year[18]. - The board decided not to declare an interim dividend for the six months ended September 30, 2022, compared to a dividend of HKD 0.10 per share in 2021[142]. - The company declared an interim dividend of HKD 47,859,000 for the period, with no dividend declared for the same period in 2021[141]. Stock Options and Shareholding - The group has issued a total of 930,800,410 shares as of September 30, 2022, after canceling 29,375,000 shares during the period[51]. - The total number of unexercised stock options as of September 30, 2022, under the new stock option plan is 14,040,000, after accounting for 2,280,000 options that were canceled or expired during the period[70]. - The company aims to retain, reward, and incentivize eligible individuals through the stock option plans[61]. - As of September 30, 2022, the company had a total of 518,948,012 shares held by major shareholders, representing 55.75% of the issued shares[75]. - Major shareholder Ms. Wu Wanlan holds 251,172,919 shares, accounting for 26.98% of the total shares[75]. Corporate Governance - The company has complied with all corporate governance codes during the period, despite the absence of a CEO[83]. - The company aims to maintain high levels of corporate governance practices to maximize shareholder returns and enhance transparency[83]. - The interim financial results for the period have been reviewed by the company's auditors in accordance with the relevant standards[82]. Future Plans and Challenges - The group continues to face challenges due to the ongoing COVID-19 pandemic and high inflation rates, prompting a review of its business model[23]. - The group plans to focus on sales of remaining units in Macau and other reconstruction projects to strengthen future revenue[49]. - The group plans to continue exploring opportunities for market expansion and potential acquisitions in the upcoming periods[110]. - The group will continue to monitor its liquidity and operational funding needs to ensure appropriate financing arrangements[44]. Investment and Financing - The group has unutilized bank financing of HKD 188,100,000 available for property construction and operational needs[44]. - The group has pledged assets totaling HKD 603,000,000 in investment properties and HKD 1,422,600,000 in interests in joint ventures as collateral for bank financing[46]. - The group recognized a share of net profit from joint ventures amounting to HKD 257,900,000, significantly up from HKD 4,100,000 in the previous year[24]. - The group’s share of results from associates was a loss of HKD 10,294,000, while the share of joint ventures was a profit of HKD 265,384,000[124]. Impairments and Losses - The fair value of investment properties decreased by HKD 24.1 million due to the ongoing impact of the COVID-19 pandemic on properties located in Hong Kong[23]. - The company reported a loss of HKD 18,799 from financial instruments' fair value, compared to a loss of HKD 1,803 in the prior period[94]. - The company reported a net loss on financial instruments of HKD 18,799,000 for the six months ended September 30, 2022, compared to a loss of HKD 1,803,000 for the same period in 2021[133]. - The company recognized an additional impairment provision of HKD 1,192,000 for other receivables for the six months ended September 30, 2022[187].
德祥地产(00199) - 2023 - 中期财报