WING ON CO(HK:00289)2022-09-21 03:44Financial Performance - For the six months ended June 30, 2022, the group's revenue decreased by 10.8% to HKD 500.1 million, down from HKD 560.9 million in 2021, primarily due to a decline in department store business revenue[8]. - The group recorded a loss attributable to shareholders of HKD 106.4 million for the six months ended June 30, 2022, compared to a profit of HKD 399.6 million in 2021, largely due to unrealized losses in the investment portfolio and a valuation loss of HKD 51.9 million on investment properties[8]. - Basic loss per share was HKD 36.5 cents, compared to earnings of HKD 136.9 cents per share in 2021; excluding the valuation loss on investment properties, the basic loss per share was HKD 18.8 cents[8]. - The total comprehensive loss for the period was HKD 266.0 million, compared to a total comprehensive income of HKD 331.1 million in the previous year[23]. - The company reported a loss before tax of HKD 68,302,000 for the six months ended June 30, 2022, compared to a profit of HKD 482,765,000 for the same period in 2021[32]. - The total comprehensive income for the period was reported as a loss of HKD 4,125 thousand, compared to a profit of HKD 155,824 thousand in the previous period[27]. Assets and Liabilities - As of June 30, 2022, the group's total equity was HKD 18,813.6 million, a decrease of 2.1% from HKD 19,207.5 million as of December 31, 2021[9]. - The total assets of the group as of June 30, 2022, were HKD 20,136,961,000, down from HKD 20,640,212,000 at the end of the previous year, representing a decline of 2.4%[43]. - Total liabilities decreased to HKD 1,290,694,000 from HKD 1,391,542,000, indicating a reduction of 7.3%[42]. - Net assets as of June 30, 2022, were HKD 18,846,267 thousand, down from HKD 19,248,670 thousand, a decrease of approximately 2.1%[25]. - The company's equity attributable to shareholders decreased to HKD 18,813,647 thousand from HKD 19,216,319 thousand, reflecting a decline of about 2.1%[25]. Cash Flow and Liquidity - The group had cash and listed securities of approximately HKD 3,203.9 million as of June 30, 2022, providing sufficient liquidity for current obligations and working capital needs[9]. - Cash and cash equivalents decreased to HKD 2,259,409 thousand from HKD 2,544,963 thousand, a decline of around 11.2%[24]. - The company’s operating cash flow for the six months ended June 30, 2022, was a net outflow of HKD 111,013,000, compared to a net inflow of HKD 73,062,000 in the same period of 2021[32]. - The company reported a net cash outflow from financing activities of HKD 165,504,000 for the six months ended June 30, 2022, compared to HKD 244,228,000 in the same period of 2021[32]. Revenue Breakdown - Department store business revenue fell by 14.4% to HKD 274.7 million for the first half of 2022, impacted by weak retail conditions and reduced customer traffic due to COVID-19 restrictions[13]. - Property investment income for the six months ended June 30, 2022, was HKD 218.9 million, a decrease of 8.0% from HKD 239.8 million in 2021, with a 3.2% decline in income from commercial properties in Hong Kong[14]. - The property investment segment generated revenue of HKD 280,676,000, down from HKD 294,827,000, reflecting a decline of 4.9% year-over-year[39]. - The total reported segment revenue for the department store business was HKD 274,663,000, a decrease of 14.4% from HKD 320,783,000 in the same period last year[39]. Investment Performance - The group's investment portfolio suffered a loss of HKD 190.4 million due to significant market volatility, compared to a gain of HKD 99.0 million in the same period of 2021[16]. - The net loss from the valuation of investment properties was HKD 51,895,000, while the previous period recorded a net gain of HKD 168,631,000, indicating a significant decline in property valuation[51]. - Total income from property investments decreased to HKD 225,412,000, with direct expenses amounting to HKD 180,094,000, leading to a net income of HKD 45,318,000[46]. Employee and Management Information - The group had 555 employees as of June 30, 2022, down from 621 employees a year earlier[17]. - Employee costs, excluding directors' remuneration, were HKD 90,541,000, a slight decrease from HKD 92,631,000 in the previous period[46]. - The total remuneration for key management personnel for the six months ended June 30, 2022, was HKD 18,516,000, slightly down from HKD 18,596,000 in the same period of 2021[73]. Future Outlook - The group anticipates continued challenges in the department store business for the second half of 2022 due to ongoing COVID-19 impacts and expected inflation and interest rate increases[18]. - The group's investment properties in Hong Kong and Australia are expected to face downward pressure on rental income but are still projected to contribute stable rental income in the second half of the year[18]. - The company is focusing on enhancing its investment properties and exploring new market opportunities to drive future growth[29]. Shareholder Information - The company has a total of 180,545,138 shares held by major shareholders, representing 61.985% of the issued voting shares[84]. - The individual equity holdings of directors include 郭志標 with 1,508,298 shares (0.518%), 郭志桁 with 649,050 shares (0.223%), and 郭志樑 with 480,620 shares (0.165%)[78]. - The company repurchased its own shares during the period to enhance the net asset value per share and earnings per share[85].