Financial Performance - Revenue for the six months ended June 30, 2022, was HKD 11,832,000, a decrease of 14.0% compared to HKD 13,759,000 for the same period in 2021[11] - Gross profit for the same period was HKD 9,676,000, down 13.8% from HKD 11,228,000 in 2021[11] - Profit before tax decreased to HKD 6,725,000, representing a decline of 18.1% from HKD 8,213,000 in the previous year[11] - Net profit for the period was HKD 6,304,000, down 23.2% from HKD 8,213,000 in 2021[11] - Basic and diluted earnings per share were HKD 1.62, a decrease of 23.6% compared to HKD 2.12 in the prior year[11] - Rental income for the same period was approximately HKD 11,800,000, down by about HKD 1,900,000 or 14% from HKD 13,800,000 in the previous year, primarily due to reduced tenant demand and affordability caused by the COVID-19 pandemic[95][96] Assets and Liabilities - Total assets as of June 30, 2022, were HKD 1,875,724,000, slightly down from HKD 1,872,117,000 at the end of 2021[18] - Net asset value was HKD 1,517,015,000, a decrease from HKD 1,518,475,000 at the end of 2021[18] - Trade receivables increased to HKD 1,012,000 as of June 30, 2022, compared to HKD 602,000 as of December 31, 2021[57] - The total borrowings of the group as of June 30, 2022, were approximately HKD 311.4 million, up from HKD 307.4 million as of December 31, 2021[101] - The group's debt-to-equity ratio as of June 30, 2022, was approximately 20.53%, slightly increased from 20.25% as of December 31, 2021[101] Cash Flow - Net cash inflow from operating activities for the six months ended June 30, 2022, was HKD 11,694,000, a decrease of 88% compared to HKD 97,370,000 in the same period of 2021[24] - Total cash and cash equivalents at the end of the period were HKD 174,216,000, down 30.6% from HKD 251,100,000 at the end of June 30, 2021[24] - The company reported a net cash increase of HKD 3,139,000 for the period, a significant drop from HKD 89,984,000 in the previous year[24] - Cash and cash equivalents amounted to HKD 174,216,000, up from HKD 171,077,000 in the previous year[61] Expenses - Operating and administrative expenses decreased to HKD 2,529,000 from HKD 3,137,000, reflecting a reduction of 19.4%[11] - The total employee expenses for the period were HKD 1,180,000, a decrease of 22.1% from HKD 1,516,000 in the same period of 2021[40] Dividends - The company declared an interim dividend of HKD 0.07764 per share, consistent with the previous year[20] - The company declared an interim dividend of HKD 0.8 per share, totaling HKD 3,105,000 for the period, compared to HKD 3,882,000 for the same period last year[51] - The interim dividend will be distributed to shareholders listed on the register as of September 30, 2022, with a payment date expected around October 20, 2022[120] Government Support - The company recognized government subsidies related to COVID-19 amounting to HKD 64,000, all associated with the Hong Kong government's employment support scheme[36] Financing - Financing costs increased to HKD 929,000 from zero in the previous year, indicating the company incurred interest expenses for the first time[43] - The company has bank loans secured against investment properties valued at approximately HKD 649,000,000 as of the reporting date[67] - The company has guaranteed certain bank loans up to HKD 280,000,000 as of the reporting date[67] - As of June 30, 2022, the company provided a corporate guarantee for bank financing of up to approximately HKD 280,000,000, with approximately HKD 150,000,000 utilized[80] Corporate Governance - The company has adopted the corporate governance code as per the Hong Kong Stock Exchange listing rules and has complied with its provisions during the six-month period ending June 30, 2022[126] - The audit committee reviewed the accounting principles and practices adopted by the group and discussed the unaudited interim results for the six months ending June 30, 2022[125] - The company confirms that all directors have complied with the standards of the code for securities transactions during the six-month period ending June 30, 2022[128] Market Conditions - The group anticipates continued weakness in tenant demand and affordability over the next few months to a year, which may hinder performance improvement in the second half of 2022[108] - Rental income for the first half of 2022 decreased compared to the same period last year, indicating a weak local economy[108] Other Information - The company had no significant acquisitions or disposals of subsidiaries, associates, or joint ventures during the six months ended June 30, 2022[97] - No significant contingent liabilities were reported as of June 30, 2022[103] - There were no major events post-June 30, 2022, that could significantly impact the group's operations and financial performance[104] - The group maintains a relatively stable financial position despite the uncertain economic outlook[108] - The company has no financial instruments for foreign currency hedging purposes as of June 30, 2022[99] - The company will closely monitor changes in the operating environment and adjust its investment strategies accordingly[108] - The company has no issued potential dilutive ordinary shares as of the reporting date[54] - The company’s total issued and fully paid ordinary shares remained at 388,183,600 shares with a par value of HKD 0.10 per share[69] - The company’s cash and bank balances earned interest at floating rates based on daily bank deposit rates[61] - The group employed 7 staff members in Hong Kong as of June 30, 2022, with employee expenses totaling approximately HKD 1.2 million, down from HKD 1.5 million in the previous year[105] - The company will suspend the transfer of shares from September 28, 2022, to September 30, 2022, to qualify for the interim dividend[120] - The interim report for 2022, containing all information required by the listing rules, is available on the company's website and the Hong Kong Stock Exchange website[129]
东方兴业控股(00430) - 2022 - 中期财报