Financial Performance - Revenue for the six months ended September 30, 2022, was HKD 10,203,000, a decrease of 52.6% compared to HKD 21,480,000 for the same period in 2021[5] - Gross profit for the period was HKD 6,956,000, slightly up by 2.2% from HKD 6,808,000 year-on-year[5] - The company reported a loss before tax of HKD 25,762,000, compared to a loss of HKD 4,643,000 in the same period last year[5] - Total comprehensive loss for the period amounted to HKD 63,226,000, a significant decline from a comprehensive income of HKD 1,529,000 in the prior year[5] - Basic and diluted loss per share was HKD 12.19, compared to HKD 2.18 in the previous year, reflecting a significant increase in losses per share[5] - The company reported a loss of HKD 25,952,000 for the six months ended September 30, 2022, compared to a loss of HKD 4,643,000 for the same period in 2021, resulting in a basic and diluted loss per share of HKD 12.19, up from HKD 2.18[30] Expenses and Costs - Administrative expenses surged to HKD 30,226,000, an increase of 210.5% from HKD 9,728,000 in the previous year[5] - Employee costs, including director remuneration, increased to HKD 905,000, up from HKD 787,000 in the previous year[23] - The company incurred marketing and promotional expenses of HKD 8,660,000, significantly higher than HKD 4,821,000 in the same period last year[23] - The company incurred a financial cost of approximately HKD 2,602,000, a 49% increase from approximately HKD 1,751,000 in the same period of 2021, attributed to refinancing and general corporate borrowing[51] Assets and Liabilities - Non-current assets decreased to HKD 82,543,000 from HKD 95,865,000, reflecting a reduction of 13.8%[7] - Current assets dropped to HKD 241,445,000, down from HKD 316,617,000, indicating a decline of 23.7%[7] - Cash and cash equivalents at the end of the period were HKD 2,520,000, a decrease of 80.2% from HKD 12,673,000 at the beginning of the period[12] - The company’s net asset value decreased to HKD 247,369,000 from HKD 310,595,000, a decline of 20.3%[8] - As of September 30, 2022, the company had borrowings of HKD 21,027,000, down from HKD 23,433,000 as of March 31, 2022, with a fixed annual interest rate of 12%[38] - The group’s debt as of September 30, 2022, was approximately HKD 21,027,000, a decrease from about HKD 40,181,000 as of March 31, 2022[66] Revenue Sources - Property development and sales generated revenue of HKD 4,241,000, down 73.9% from HKD 16,246,000 in the previous year[19] - Hydropower station operation management revenue increased to HKD 5,076,000, up 17.2% from HKD 4,328,000 year-on-year[17] - Revenue from property investment for the six months ended September 30, 2022, was approximately HKD 610,000, a decrease of 2% from about HKD 625,000 for the same period in 2021[60] - The clean and renewable energy business generated revenue of approximately HKD 5,076,000 for the six months ended September 30, 2022, an increase of 17% from about HKD 4,328,000 for the same period in 2021[63] Property Development - The company has three property development projects in China, with revenue from property development primarily derived from the sale of completed properties in the Xiguan project[52] - The Xiguan project, located in Benxi City, Liaoning Province, has a total land area of 46,242.6 square meters and a construction area of 80,462 square meters, with 775 residential units and 30 commercial units[53] - For the Xiguan project, the company sold approximately 1% of the total land area, generating a total contract sales amount of approximately HKD 4,241,000, compared to 4% and HKD 16,246,000 in the same period of 2021[53] - The Baigucheng Project One is expected to begin sales in the last quarter of 2022, with construction essentially completed as of September 30, 2022[55] - The Ba Gua City Project II is located in Benxi City, Liaoning Province, covering an area of approximately 9,188.2 square meters with a construction area of about 14,700 square meters, currently in the preliminary stage of construction[56] - For the six months ended September 30, 2022, property sales significantly declined, leading to a segment loss of approximately HKD 20,602,000, up from about HKD 3,773,000 for the same period in 2021[57] Corporate Governance - The company has adopted all provisions of the corporate governance code as per the listing rules, with compliance noted until September 30, 2022[91] - The board of directors as of September 30, 2022, included three executive directors and three independent non-executive directors[95] - The audit committee has been established and its terms of reference updated to comply with the standard code, ensuring proper internal controls and financial reporting[94] - The company confirmed that all directors complied with the standard code regarding securities transactions during the six months ending September 30, 2022[93] Shareholder Information - As of September 30, 2022, the company’s major shareholder, Daring Capital Limited, holds 108,591,364 shares, representing 51.02% of the issued share capital[84] - Lushan Investment Holding Limited holds 145,895,712 shares, accounting for 68.55% of the issued share capital, with these shares being pledged by Daring Capital Limited[84] - The company’s executive director, Wang Jing, has a beneficial interest in 108,591,364 shares, which is 51.02% of the issued share capital[80] - The pledged shares held by Da Rong Capital Limited accounted for approximately 51.02% of the company's issued share capital as of September 30, 2022[90] Future Outlook - The company anticipates uncertainties and challenges in the post-pandemic era, focusing on enhancing product branding and industry positioning in Northern China[78] - The company aims to diversify its business model to strengthen and expand revenue streams for better performance and outlook[78] - The company maintains a prudent investment and business strategy to navigate future uncertainties[78] - The company’s business strategy includes upgrading product and service quality in Northern China[78] - The company continues to hold a diversified business strategy to enhance its revenue streams[78] Legal and Compliance - The company is currently facing a winding-up petition related to HKD 3,000,000 in bonds, with a hearing scheduled for January 11, 2023[42] - The company has not disclosed any significant events affecting the group after the reporting period[77] - The independent non-executive directors were unable to attend the annual general meeting due to travel restrictions related to the COVID-19 pandemic[92]
中国华星(00485) - 2023 - 中期财报