WING ON CO(HK:00289)2023-09-21 02:39Financial Performance - The group's revenue increased by 6.1% to HKD 530.8 million for the six months ended June 30, 2023, compared to HKD 500.1 million in 2022, primarily due to growth in the department store business [8]. - The attributable profit for the period was HKD 274.2 million, a significant increase from a loss of HKD 106.4 million in 2022, driven by investment portfolio gains of HKD 93.0 million compared to a loss of HKD 190.4 million in the previous year [8]. - Basic earnings per share were HKD 0.943, compared to a loss of HKD 0.365 per share in 2022, with basic earnings excluding property valuation gains at HKD 0.907 per share, up from a loss of HKD 0.188 [8]. - The operating profit for the group was HKD 306.9 million for the six months ended June 30, 2023, compared to an operating loss of HKD 8.5 million in 2022 [22]. - The net profit attributable to shareholders for the six months ended June 30, 2023, was HKD 274.2 million, a recovery from a loss of HKD 106.4 million in 2022 [22]. - The company reported a profit before tax of HKD 314.6 million, a significant recovery from a loss of HKD 68.3 million in the same period last year [33]. - The company reported a comprehensive income of HKD 274,180 thousand for the period, compared to a loss of HKD 89,118 thousand in the previous period [27]. - The group recorded a profit of HKD 196,897,000 for the six months ended June 30, 2023, compared to a loss of HKD 19,217,000 in the same period last year [42]. Dividends and Shareholder Returns - The board declared an interim dividend of HKD 0.34 per share, totaling HKD 98,833,000, compared to no dividend in 2022 [8]. - The company declared an interim dividend of HKD 98,833,000, equating to HKD 0.34 per share, compared to no interim dividend in the previous year [62]. Cash and Liquidity - The group's cash and listed securities amounted to approximately HKD 3,508.9 million as of June 30, 2023, up from HKD 3,370.9 million at the end of 2022 [9]. - The group had no borrowings as of June 30, 2023, and maintained a strong cash position, indicating no liquidity issues [10]. - Cash and cash equivalents increased to HKD 1,963,231 thousand from HKD 1,562,081 thousand, marking a significant increase of approximately 25.6% [24]. - The company recorded a net increase in cash and cash equivalents of HKD 415.6 million, contrasting with a decrease of HKD 261.2 million in the same period last year [33]. - Cash and cash equivalents increased to HKD 2,439,584,000 as of June 30, 2023, compared to HKD 2,362,467,000 at the end of 2022, reflecting a stronger liquidity position [59]. Asset and Liability Management - As of June 30, 2023, total assets decreased slightly to HKD 19,424,705 thousand from HKD 19,477,146 thousand as of December 31, 2022, representing a decrease of approximately 0.27% [24][25]. - The company's total liabilities increased to HKD 4,432,268 thousand from HKD 4,197,833 thousand, an increase of about 5.58% [24]. - Non-current liabilities decreased to HKD 876,135 thousand from HKD 891,880 thousand, a reduction of about 1.77% [25]. - The equity attributable to shareholders decreased to HKD 18,517,309 thousand from HKD 18,553,535 thousand, a decline of approximately 0.20% [25]. - The company's total assets amounted to HKD 29.1 billion as of June 30, 2023, reflecting a stable financial position [31]. Investment and Market Outlook - The investment portfolio generated a profit of HKD 93.0 million for the six months ended June 30, 2023, a significant recovery from a loss of HKD 190.4 million in 2022 [16]. - The group maintains a cautious optimism regarding the economic and business activities in Hong Kong post-COVID-19, despite slower-than-expected recovery [18]. - The group anticipates challenges in the Australian property market due to high vacancy rates and downward pressure on office rents [18]. - The company plans to continue its investment strategy focusing on property development and acquisition to enhance its portfolio [34]. - The group’s property investment portfolio is located in Hong Kong, Australia, and the United States, indicating ongoing market expansion efforts [40]. Operational Performance - The department store business generated revenue of HKD 326.3 million, an increase of 18.8% from HKD 274.7 million in 2022, with operating profit of HKD 4.7 million compared to a loss of HKD 19.2 million [13]. - Property investment income decreased by 12.2% to HKD 192.2 million from HKD 218.9 million in 2022, with commercial property income in Hong Kong down 4.4% to HKD 151.1 million [14]. - The overall occupancy rate for commercial properties in Hong Kong remained stable at approximately 93% as of June 30, 2023, compared to 94% in 2022 [14]. - The department store business generated revenue of HKD 215,750,000 from product sales, up 20.5% from HKD 179,003,000 in the previous year [39]. - The property investment segment reported total rental income of HKD 175,333,000, a decrease of 10.8% from HKD 196,558,000 in the prior period [39]. Compliance and Governance - The company has complied with the corporate governance code as per the Hong Kong Stock Exchange during the six months ended June 30, 2023 [80]. - The board of directors confirmed compliance with the standards for securities trading during the six months ended June 30, 2023 [81]. Related Party Transactions - The company paid HKD 11,735,000 in rent and management fees to a related company during the current period, consistent with the same amount for the six months ended June 30, 2022 [78]. - The company received HKD 2,777,000 in rent and management fees from a related company during the current period, unchanged from the previous year [78]. - The company incurred commission fees of HKD 421,000 to related companies for securities trading, an increase of 97.2% compared to HKD 213,000 for the six months ended June 30, 2022 [78]. - The company reported receivables of HKD 10,308,000 from related companies as of June 30, 2023, down from HKD 13,620,000 as of December 31, 2022 [78]. - The company generated HKD 850,000 in income from building and lease management services provided to a related company, a decrease from HKD 907,000 for the same period last year [78].