Financial Performance - The total revenue for the first half of 2022 was HKD 615,489,000, an increase of 4% compared to HKD 589,659,000 in the same period last year, primarily driven by property investment and domestic apparel wholesale business [3]. - The cost of sales increased by 21% to HKD 248,550,000, mainly due to changes in inventory impairment provisions, while the gross profit margin decreased to 53.4% from 54.9% year-on-year [4]. - Operating profit for the period was HKD 82,556,000, a slight increase of approximately 2% from HKD 81,145,000 in the previous year, with an operating profit margin of about 13.4% [8]. - Net profit attributable to shareholders was HKD 82,919,000, up about 5% from HKD 78,988,000 in the same period last year, while excluding the fair value loss on investment properties, the profit was HKD 91,165,000, down about 4% year-on-year [9]. - Domestic apparel sales recorded a revenue of HKD 451,951,000, an increase of approximately 4% year-on-year, despite challenges from COVID-19 restrictions [10]. - The e-commerce performance was below expectations, with sales accounting for about 26% of domestic apparel sales, impacted by weakened demand and delivery obstacles due to lockdown measures [18]. - The group recorded a fair value loss on investment properties of HKD 17,244,000, lower than HKD 25,347,000 in the same period last year [5]. - The administrative expenses increased by 3% to HKD 77,906,000 compared to HKD 75,702,000 in the previous year [6]. - The group's rental and property management fee income for the period was HKD 78,995,000 and HKD 20,548,000, respectively, representing an increase of approximately 8% compared to the same period last year [24]. - The total revenue from property management fees was HKD 20,548,000, up from HKD 19,722,000, indicating a growth of 4.2% year-on-year [76]. - The investment property rental income increased to HKD 78,995,000 from HKD 72,155,000, representing an increase of 9.5% [76]. Cash Flow and Financial Position - The group recorded a net cash inflow from operating activities of HKD 38,813,000 and interest income of HKD 10,233,000, but paid dividends of HKD 68,748,000 during the period [29]. - As of June 30, 2022, the group's cash and bank balances amounted to approximately HKD 1,271,289,000, a decrease of HKD 79,925,000 compared to the end of last year [29]. - The group's current assets and liabilities were HKD 2,462,741,000 and HKD 627,161,000, respectively, resulting in a current ratio of 3.9 [31]. - The company reported a net cash generated from operating activities for the six months ended June 30, 2022, was HKD 38,813, compared to HKD 172,226 for the same period in 2021, representing a decrease of approximately 77.5% [58]. - The net cash used in investing activities was HKD 67,447 for the six months ended June 30, 2022, compared to HKD 157,560 for the same period in 2021, indicating a reduction of about 57.3% [58]. - The net cash used in financing activities was HKD 75,521 for the six months ended June 30, 2022, compared to HKD 70,656 for the same period in 2021, showing an increase of approximately 6.3% [58]. - The total cash and cash equivalents increased by HKD 30,739 for the six months ended June 30, 2022, compared to a decrease of HKD 55,990 for the same period in 2021 [58]. - The company reported a significant increase in restricted cash, which rose to HKD 676 from HKD 97,894 in the previous period [58]. - As of June 30, 2022, accounts receivable amounted to HKD 59,246,000, a decrease from HKD 101,985,000 as of December 31, 2021, representing a reduction of approximately 42% [95]. - The total amount of prepayments, deposits, and other receivables decreased to HKD 93,597,000 as of June 30, 2022, down from HKD 126,445,000 as of December 31, 2021, indicating a decline of about 26% [96]. - The company's total liabilities for accounts payable were HKD 26,829,000 as of June 30, 2022, compared to HKD 48,594,000 as of December 31, 2021, reflecting a decrease of approximately 45% [99]. - The total income tax expense for the six months ended June 30, 2022, was HKD 9,527,000, a decrease from HKD 11,786,000 for the same period in 2021, representing a reduction of about 19% [109]. Property Development and Investment - The total expenditure for the "Jinli Lai Garden" property development project in Meixian reached HKD 814,082,000, an increase of HKD 98,275,000 compared to the end of last year [25]. - The rental and property management fee income for the "Jinli Lai Digital Network Building" in RMB increased by approximately 3% year-on-year, with an overall occupancy rate maintained at about 79% [24]. - The first phase of the "Jinli Lai Garden" property development project is expected to be completed in the fourth quarter of this year, with the second phase's construction progress being a focus [28]. - The total value of properties held for sale was HKD 814,082,000 as of June 30, 2022, up from HKD 715,807,000 as of December 31, 2021, reflecting a growth of 13.8% [91]. - The development costs for properties held for sale rose to HKD 704,821,000 as of June 30, 2022, compared to HKD 600,873,000 as of December 31, 2021, marking an increase of 17.2% [90]. Shareholder Information and Corporate Governance - Major shareholders include Top Grade Holdings Limited with 613,034,750 shares, representing 62.42% of the issued share capital [178]. - Silver Disc Limited holds 160,616,000 shares, accounting for 16.35% of the issued share capital [178]. - The charity trust managed by Zeng Huizi holds 53,880,750 shares, which is 5.49% of the issued share capital [180]. - FMR LLC owns 63,061,331 shares, representing 6.42% of the issued share capital [178]. - The company has complied with the corporate governance code as per the Stock Exchange listing rules for the six months ending June 30, 2022 [182]. - The audit committee consists of four members, including independent non-executive directors, ensuring oversight of financial reporting and risk management [183]. - The external auditor has reviewed the unaudited interim financial information for the six months ending June 30, 2022 [184]. Challenges and Outlook - The group plans to continue improving the operational situation of its Singapore clothing business, ensuring profitability since last year is maintained [28]. - The group anticipates challenges in business operations due to economic recession concerns and ongoing pandemic impacts, with a cautious outlook for the remainder of the year [27].
金利来集团(00533) - 2022 - 中期财报