Financial Performance - For the six months ended June 30, 2023, the company reported revenue of HKD 11,287,000, a decrease of 4.6% compared to HKD 11,832,000 for the same period in 2022[6] - Gross profit for the same period was HKD 8,483,000, down 12.3% from HKD 9,676,000 in 2022[6] - The company recorded a net profit of HKD 2,277,000, a significant decline of 63.8% from HKD 6,304,000 in the previous year[6] - Basic and diluted earnings per share were HKD 0.59, compared to HKD 1.62 for the same period last year, reflecting a decrease of 63.4%[6] - Total revenue for the six months ended June 30, 2023, was HKD 11,287,000, a decrease of 4.6% compared to HKD 11,832,000 for the same period in 2022[21] - Rental income from leased properties was HKD 11,287,000, down from HKD 11,832,000, reflecting a decline of 4.6% year-on-year[22] - Basic earnings attributable to ordinary equity holders for the period were HKD 2,277,000, a decrease of 63.8% from HKD 6,304,000 in the previous year[30] - Profit for the six months ended June 30, 2023, decreased by approximately HKD 4,000,000 or 64% to about HKD 2,300,000, down from HKD 6,300,000 in 2022[60] Cash Flow and Assets - Operating cash inflow for the six months was HKD 17,521,000, an increase of 49.5% from HKD 11,694,000 in 2022[15] - Cash and cash equivalents at the end of the period increased to HKD 182,656,000 from HKD 173,781,000 at the beginning of the year, marking a rise of 5.0%[15] - The company’s total assets as of June 30, 2023, were HKD 1,699,139,000, slightly up from HKD 1,699,135,000 at the end of 2022[11] - The company’s total equity as of June 30, 2023, was HKD 1,517,846,000, down from HKD 1,520,227,000 at the end of 2022[11] - Trade receivables as of June 30, 2023, were HKD 114,000, significantly lower than HKD 1,525,000 as of December 31, 2022[34] - Cash and cash equivalents totaled HKD 182,656,000 as of June 30, 2023, compared to HKD 173,781,000 as of December 31, 2022, reflecting an increase of approximately 4.1%[37] - The total cash and bank balances slightly decreased to HKD 9,691,000 as of June 30, 2023, from HKD 9,792,000 as of December 31, 2022[37] Financing and Costs - Financing costs surged to HKD 3,301,000, compared to HKD 929,000 in the previous year, indicating a significant increase of 255.0%[6] - The total tax expense for the six months ended June 30, 2023, was HKD 1,018,000, compared to HKD 421,000 for the same period in 2022, representing a 142.5% increase[27] - Financing costs rose significantly to HKD 3,301,000, compared to HKD 929,000 in the same period last year, marking a 255.4% increase[25] - The company has secured bank loans amounting to HKD 147,000,000 as of June 30, 2023, unchanged from December 31, 2022, with a contract interest rate of HIBOR + 0.95%[38] - As of June 30, 2023, total borrowings amounted to approximately HKD 317,000,000, compared to HKD 307,900,000 as of December 31, 2022[66] - The debt-to-equity ratio as of June 30, 2023, was approximately 20.88%, compared to 20.25% as of December 31, 2022[67] Corporate Governance and Compliance - The company has adhered to the corporate governance code as per the Hong Kong Stock Exchange rules during the reporting period[83] - The company has adopted the standard code of conduct for securities trading by directors as per the listing rules appendix, confirming compliance by all directors as of June 30, 2023[85] - The audit committee has reviewed the accounting principles and internal controls for the six months ending June 30, 2023[82] - The interim report for the year 2023 has been published and is available on the company's website and the Hong Kong Stock Exchange website[86] Market Conditions and Future Outlook - The office rental market in Hong Kong is facing significant challenges, with the highest vacancy rate in decades and many international companies freezing or reducing operations[72] - The economic recovery in Hong Kong and mainland China is slow, and the company does not expect a positive short-term economic outlook[72] - There is a significant amount of new supply in the office rental market, which will continue to pose challenges until Chinese companies resume expansion[72] - The company plans to continue exploring market expansion opportunities and new product development to enhance future performance[6] - The company is committed to ensuring the sustainability and competitiveness of its core business while seizing investment opportunities to create value for shareholders[73] Shareholder Information - The company holds a 75% stake in its ordinary shares, with Mr. Liu Zhi Yong controlling 291,137,700 shares[75] - Major shareholders include Limitless Investment Limited and Multifield International Holdings (B.V.I.) Limited, each holding 75% of the company's issued shares[78] - The company declared an interim dividend of HKD 0.008 per share, consistent with the previous year's interim dividend[28] - The company plans to suspend share transfer registration from September 25 to September 27, 2023, with an interim dividend to be distributed on October 19, 2023[80] - The total issued and paid-up share capital remains at HKD 38,818,000 as of June 30, 2023, consistent with the previous year[41] - The 2023 share option plan allows for the issuance of up to 38,818,360 shares, representing 10% of the company's issued shares as of the report date[44] - The company has not granted any share options under the 2023 share option plan during the reporting period[44] - The company has not purchased, sold, or redeemed any of its listed securities in the past six months[81]
东方兴业控股(00430) - 2023 - 中期财报