Financial Performance - Revenue for the six months ended June 30, 2022, was HKD 78,032,000, a decrease of 13.7% from HKD 90,464,000 in the same period of 2021[5] - Gross profit for the same period was HKD 38,258,000, down 15.1% from HKD 45,055,000 year-on-year[5] - Operating profit significantly decreased to HKD 678,000, compared to HKD 6,816,000 in the previous year, reflecting a decline of 90.1%[5] - The company reported a loss before tax of HKD 13,722,000, worsening from a loss of HKD 7,534,000 in the prior year[5] - Basic and diluted loss per share was HKD 0.1533, compared to HKD 0.0579 in the same period last year[6] - Total comprehensive loss for the period was HKD 18,584,000, compared to a loss of HKD 5,919,000 in the previous year[8] - The total comprehensive income for the six months ended June 30, 2022, was a loss of HKD 17,485,000, compared to a loss of HKD 3,329,000 for the same period in 2021[13] - The group recorded a revenue of approximately HKD 78,032,000 and a post-tax loss of approximately HKD 13,722,000 for the six months ended June 30, 2022[127] - The group’s revenue for the first half of 2022 was approximately HKD 78,032,000, with a net loss of HKD 13,722,000, compared to revenue of HKD 90,464,000 and a net loss of HKD 7,534,000 in the same period of 2021[137] Assets and Liabilities - Non-current assets as of June 30, 2022, amounted to HKD 1,099,428,000, a slight decrease from HKD 1,126,711,000 at the end of 2021[10] - Current assets totaled HKD 1,159,953,000, showing a marginal increase from HKD 1,158,939,000 at the end of 2021[11] - Net assets decreased to HKD 714,989,000 from HKD 733,573,000 at the end of 2021[11] - The company’s total liabilities decreased to HKD 1,410,394,000 from HKD 1,453,095,000 at the end of 2021[11] - Total assets as of June 30, 2022, were HKD 2,259,381,000, a slight decrease from HKD 2,285,650,000 as of December 31, 2021[46] - Total liabilities as of June 30, 2022, were HKD 1,544,392,000, compared to HKD 1,552,077,000 as of December 31, 2021, showing a marginal reduction[46] - As of June 30, 2022, the total current assets amounted to HKD 587,873,000, a decrease from HKD 629,875,000 as of December 31, 2021, representing a decline of approximately 6.7%[91] - The prepayments for Zhuhai property decreased from HKD 443,470,000 on December 31, 2021, to HKD 377,162,000 on June 30, 2022, reflecting a reduction of about 15%[91] - The other receivables decreased from HKD 161,567,000 as of December 31, 2021, to HKD 146,309,000 as of June 30, 2022, indicating a decline of approximately 9.4%[91] Cash Flow - The net cash generated from operating activities for the six months ended June 30, 2022, was HKD 31,417,000, a significant improvement compared to a net cash outflow of HKD 214,561,000 in the same period last year[15] - The cash and cash equivalents as of June 30, 2022, were HKD 15,094,000, a decrease from HKD 42,852,000 at the end of June 2021[15] - The company reported a net cash outflow from investing activities of HKD 4,000, compared to a net cash outflow of HKD 54,918,000 in the previous year[15] - The financing activities resulted in a net cash outflow of HKD 20,041,000, contrasting with a net cash inflow of HKD 271,463,000 in the same period last year[15] - The cash and bank balance as of June 30, 2022, was approximately HKD 15,094,000, an increase from HKD 6,035,000 as of December 31, 2021[139] Equity and Shareholding - As of June 30, 2022, the total equity amounted to HKD 714,989,000, down from HKD 786,118,000 as of June 30, 2021[13] - The company has issued 200,000,000 shares at a par value of HKD 0.20 per share[111] - Junyi Investment Limited holds 37,733,255 shares, representing 43.60% of the issued share capital[158] - Qilu International Funds SPC holds a collateral interest in 45,553,255 shares, accounting for 52.64% of the total shares[160] - Zhang Xiaomu owns 14,246,575 shares, which is 16.46% of the company's shares[160] Property and Investment - The company has secured bank loans against the carrying values of its investment properties, including Guangzhou Property One and Luoyang Property, as of June 30, 2022[73][86] - The company anticipates starting construction on the Luoyang Property, which has faced delays due to changes in local land policies, with plans to begin work by the end of 2017[90] - The company has not made provisions for potential penalties or confiscation related to the Luoyang Property, as the risk is considered minimal[90] - The company has conducted an in-depth investigation into the legal claims and has sought legal opinions to assess the financial impact of the ongoing litigation[94] - The group has planned to launch the "Everyday, Life, New City" development theme, integrating property development and management with daily life needs[129] - The group acquired 70% of China Goal, Inc. in 2019, which allows it to explore opportunities in the property management market[132] - The group is optimistic about the property management market's growth, especially in the context of increased demand for property hygiene management post-COVID-19[132] Legal and Contingent Liabilities - The company has a contingent liability of approximately RMB 14,530,000 (around HKD 17,012,000) related to a court ruling, with an expected total liability of about RMB 27,660,000 (approximately HKD 32,384,000) as per preliminary calculations[96] - The company entered into a subscription agreement on November 30, 2015, to settle the judgment debt by issuing 136,060,042 shares at a subscription price of HKD 0.247 per share, totaling HKD 33,606,830[97] - The execution settlement agreement established a total amount of RMB 27,000,000 (approximately HKD 31,612,000) to settle the judgment debt, with specific repayment terms outlined[98] - The company has been involved in legal proceedings regarding a property transaction dating back to 2002, which has financial implications for its operations[93] Management and Governance - The audit committee consists of three independent non-executive directors who reviewed the accounting principles and internal controls[164] - The company confirmed compliance with the securities trading code by all directors for the six months ending June 30, 2022[163] - The company is managed by Han Junran, who fully owns Junyi Investment Limited[162] - The financial statements for the six months ending June 30, 2022, were discussed with management[164] - The company has adopted the standard code for securities trading as per the listing rules[163]
新城市建设发展(00456) - 2022 - 中期财报