Revenue and Profitability - Revenue for the first half of 2022 was approximately HK$54.5 million, with a gross profit of approximately HK$5.3 million[11]. - Revenue from the travel business increased by approximately 59% to approximately HK$53.2 million, with a segment profit of approximately HK$3.7 million, including a reversal of impairment loss on intangible assets of approximately HK$3.6 million[11]. - Revenue from the property investment business amounted to approximately HK$1.3 million, while segment profit was approximately HK$3.1 million, including a fair value gain on investment properties of approximately HK$1.1 million[11]. - Revenue for the six months ended June 30, 2022, was HK$54,536,000, representing a 54% increase from HK$35,384,000 in the same period of 2021[14]. - Gross profit for the same period was HK$5,296,000, up from HK$4,264,000, indicating a gross margin improvement[14]. - Total revenue for the six months ended June 30, 2022, was HK$54,536,000, an increase of 54% compared to HK$35,384,000 for the same period in 2021[88]. - Revenue from travel business, specifically sales of air tickets, reached HK$48,279,000, up from HK$33,024,000, representing a growth of 46%[88]. - Rental income increased to HK$53,216,000 from HK$33,437,000, marking a rise of 59%[88]. Losses and Financial Strain - Loss attributable to owners of the Company increased to approximately HK$125.5 million, primarily due to an unrealized fair value loss on overseas listed equity securities of approximately HK$97.0 million[11]. - Loss from operations increased significantly to HK$111,522,000 compared to HK$18,812,000 in the prior year, reflecting a substantial operational challenge[14]. - Loss before taxation for the period was HK$125,465,000, compared to HK$52,764,000 in the previous year, highlighting increased financial strain[16]. - Total comprehensive loss for the period was HK$125,788,000, a significant rise from HK$51,296,000 in the same period last year[19]. - The loss for the period, including other comprehensive loss, was HK$ (125,465,000) for the six months ended June 30, 2022, compared to HK$ (52,764,000) for the same period in 2021, indicating a worsening financial performance[34]. - For the six months ended June 30, 2022, the loss attributable to the owners of the company was HK$125,465,000, compared to a loss of HK$52,764,000 for the same period in 2021, representing an increase of 138.5%[110]. Assets and Liabilities - Non-current assets decreased to HK$934,792,000 from HK$950,505,000, indicating a reduction in long-term asset value[24]. - Current liabilities increased to HK$284,700,000 from HK$320,688,000, suggesting a shift in short-term financial obligations[26]. - Cash and cash equivalents decreased to HK$39,340,000 from HK$49,611,000, reflecting a decline in liquidity[24]. - Total equity attributable to owners of the Company decreased to HK$881,857,000 from HK$1,007,645,000, indicating a decline in shareholder value[26]. - The carrying amount of cryptocurrencies was reduced to approximately HK$3,651,000 as of June 30, 2022, down from approximately HK$8,491,000 as of December 31, 2021, resulting in an impairment loss of approximately HK$4,882,000 for the period[125]. - Trade receivables increased to HK$11.5 million as of June 30, 2022, compared to HK$4.9 million at the end of 2021[157]. - The aging analysis of trade receivables showed that current receivables were HK$10.4 million as of June 30, 2022, significantly up from HK$3.5 million at the end of 2021[157]. - The bank loans secured by the Group amounted to HK$258,500,000 as of June 30, 2022, down from HK$302,500,000 as of December 31, 2021[179]. Cash Flow and Financing Activities - For the six months ended June 30, 2022, the net cash used in operating activities was HK$ (5,800,000), compared to HK$ (7,346,000) for the same period in 2021, indicating a decrease in cash outflow[36]. - The net cash used in investing activities for the six months ended June 30, 2022, was HK$ (86,000), compared to HK$ (50,411,000) in the same period of 2021, indicating a substantial reduction in cash outflow for investments[36]. - The company reported a net cash (used in)/generated from financing activities of HK$ (4,303,000) for the six months ended June 30, 2022, compared to HK$ 15,543,000 generated in the same period of 2021[36]. - The cash and cash equivalents at the beginning of the period were HK$ 49,611,000, down from HK$ 117,394,000 at the beginning of the same period in 2021, reflecting a decrease of 58%[38]. - The weighted average effective interest rate on bank loans increased to approximately 2.1% per annum for the six months ended June 30, 2022, compared to 1.9% per annum for the previous period[183]. - The outstanding loan under the loan facilities as of June 30, 2022, was approximately HK$230,000,000, unchanged from December 31, 2021[188]. Segment Information - The Group has two reportable segments: Travel business (sales of air tickets and travel-related services) and Property investment business (rental income from leasing office premises and sale of properties in Hong Kong)[45]. - Segment profit is calculated without allocation of corporate administrative costs, which include directors' emoluments and corporate finance costs[47]. - Reportable segment profit for the travel segment was HK$3,670,000, compared to a loss of HK$1,854,000 in the previous year, indicating a significant turnaround[59]. - Reportable segment assets for the travel segment increased to HK$46,053,000 as of June 30, 2022, up from HK$34,662,000 at the end of 2021, showing growth in asset allocation[82]. - The property investment segment reported assets of HK$251,265,000 as of June 30, 2022, slightly up from HK$250,493,000 at the end of 2021, indicating stability in this segment[82]. Impairment and Fair Value - The loss arising on the change in fair value of financial assets at FVTPL was HK$97,020,000, significantly higher than the loss of HK$7,109,000 in the previous year, highlighting increased volatility in financial assets[69]. - Impairment loss recognized on intangible assets was HK$4,882,000, compared to HK$3,734,000 in the previous year, reflecting challenges in asset valuation[71]. - The fair value of investment properties increased to HK$139,700,000 as of June 30, 2022, from HK$138,600,000 as of December 31, 2021, with an increase of HK$1,100,000 recognized in the consolidated statement of profit or loss[128]. - The Group's investment properties are measured using the fair value model, reflecting a strategic focus on capital appreciation and rental income generation[130]. - The Group's interim impairment test for interests in associates was completed, with a pre-tax discount rate of approximately 7.5% as of June 30, 2022, compared to 7.1% as of December 31, 2021[143]. Corporate Governance and Management - The company did not recommend the payment of an interim dividend for the six months ended June 30, 2022, consistent with the previous year where no dividend was declared[110]. - The board believes that the loan terms are in the company's best interest and are established on normal commercial terms[194]. - Mr. Yeung Hoi Sing provided a loan of HK$200,000,000 to the company, which was later increased to a maximum of HK$290,000,000[194].
实德环球(00487) - 2022 - 中期财报