Financial Performance - Revenue for the six months ended June 30, 2022, was HK$250,081,000, a significant increase of 400.1% compared to HK$50,020,000 in the same period of 2021[5]. - Gross profit for the period was HK$54,749,000, up from HK$25,080,000, reflecting a gross margin improvement[8]. - Loss attributable to owners of the Company was HK$73,318,000, compared to a loss of HK$11,793,000 in the previous year, indicating a worsening of 521.5%[5]. - Total comprehensive loss for the period was HK$210,939,000, compared to a comprehensive income of HK$12,975,000 in the same period last year[11]. - The total comprehensive income for the period was a loss of HK$6,620,000, compared to a loss of HK$73,518,000 in the prior period[24]. - The Group's gross profit increased by 118.3% to approximately HK$54.7 million, primarily due to the delivery of 8 apartments in the Australian Project, contributing HK$35.1 million in gross profit[131]. - Loss before tax increased to approximately HK$105.6 million, significantly impacted by the impairment loss of the Glorious Hill resort land in Jeju, South Korea[138]. - Loss after tax for the Period increased by 742.7% to approximately HK$123.4 million, with loss attributable to owners of the Company rising to approximately HK$73.3 million[145]. Assets and Liabilities - Current assets decreased to HK$1,206,981,000 as of June 30, 2022, from HK$1,539,497,000 at the end of 2021, a decline of 21.6%[14]. - Total equity decreased to HK$1,930,663,000 as of June 30, 2022, down from HK$2,141,602,000 at the end of 2021, a reduction of 9.8%[16]. - The Group's total assets decreased from HK$2,766,840,000 as of December 31, 2021, to HK$2,267,390,000 as of June 30, 2022, representing a decline of approximately 18%[70]. - Total liabilities also decreased significantly from HK$625,238,000 to HK$336,727,000, a reduction of about 46%[70]. - Cash and cash equivalents were HK$541,098,000 as of June 30, 2022, compared to HK$627,060,000 at the end of 2021, a decrease of 13.7%[14]. - The company reported a net decrease in cash and cash equivalents of HK$68,365,000 for the period, compared to a decrease of HK$49,796,000 in the previous year[32]. - Total borrowings decreased by 57.2% to approximately HK$74.4 million, following the repayment of loans from a non-controlling shareholder[147]. - Current ratio increased to 6.0 as of June 30, 2022, compared to 3.2 on December 31, 2021[158]. - Debt ratio decreased to 3.9% as of June 30, 2022, down from 8.1% on December 31, 2021[158]. Revenue Breakdown - Revenue from the sale of completed properties was HK$202,361,000, while revenue from the production and distribution of wine was HK$47,720,000[51]. - Revenue from external customers for the six months ended June 30, 2022, was HK$250,081,000, compared to HK$50,020,000 for the same period in 2021, indicating a substantial increase of 400%[75]. - Revenue from Australia reached HK$202,361,000 in the first half of 2022, with no revenue reported in the same period of 2021, marking a significant new market entry[75]. - Revenue from the wine business decreased by 4.6% to HK$47.7 million, down from HK$50.0 million for the same period in 2021[127]. - The Group's revenue from the PRC (including Hong Kong) was HK$47,720,000 for the first half of 2022, down from HK$50,020,000 in 2021, a decrease of approximately 5%[75]. Expenses and Costs - The Company reported selling and distribution expenses of HK$31,387,000, which increased from HK$18,293,000 in the previous year, reflecting a rise of 72.0%[8]. - Administrative and other operating expenses rose to HK$33,774,000 from HK$25,467,000, an increase of 32.6% year-over-year[8]. - Staff costs, including directors' emoluments, totaled HK$17,493,000 for the first half of 2022, slightly up from HK$17,190,000 in 2021, showing a marginal increase of about 2%[81]. - Selling and distribution expenses rose by 71.6% to approximately HK$31.4 million, primarily due to commissions related to the delivered apartments in the Australian Project[136]. - Gross profit from the wine business decreased by 27.8% to approximately HK$19.6 million, with a gross profit margin of 41.1%, attributed to reduced dining activity in Mainland China due to strict COVID measures[131]. Impairment and Losses - The impairment loss of property, plant, and equipment amounted to HK$103,638,000, which was not present in the previous year[8]. - The loss from operating activities included an impairment loss of property, plant, and equipment amounting to HK$103,638,000 for the first half of 2022[81]. - An impairment loss of property, plant, and equipment of approximately HK$103.6 million was incurred during the period, compared to no impairment loss in the same period of 2021[92]. Employment and Operations - As of June 30, 2022, the Group employed 321 full-time employees, down from 365 on December 31, 2021[170]. - The company has three reportable segments: (i) development and operation of real estate, integrated resort and cultural tourism; (ii) production and distribution of wine; and (iii) entertainment business[50]. - The Group's operations include integrated resort and cultural tourism development in South Korea, real estate development in Australia, wine production and distribution in the PRC, and entertainment business operations in South Korea[126]. Legal Proceedings - NSR Toronto filed an amended claim on February 25, 2020, against CIM Defendants for damages amounting to CAD 50 million (approximately HK$310 million) due to breach of contract and misrepresentation[181]. - The ongoing legal proceedings may impact the company's financial position and strategic decisions moving forward[181]. - The Ontario Superior Court dismissed the Plaintiffs' motion regarding a CAD 5 million consulting fee and stayed the action against NSR Defendants I[200].
新丝路文旅(00472) - 2022 - 中期财报