Financial Performance - The company reported a total comprehensive loss attributable to owners of the company of HKD (432,133) thousand for the six months ended December 31, 2022, compared to a profit of HKD 45,161 thousand in the same period of 2021, representing a significant decline [9]. - Basic and diluted loss per share from continuing and discontinued operations was HKD (14.55) for the six months ended December 31, 2022, compared to earnings of HKD 0.95 in the prior year [9]. - The company reported a loss attributable to owners of the company of HKD 391,151,000 for the six months ended December 31, 2022, compared to a profit of HKD 25,471,000 for the same period in 2021 [63]. - The company recognized a loss of HKD 483,146,000 from changes in the fair value of investment properties during the reporting period [45]. - The group reported a loss of approximately HKD 391,151,000 for the period, with a loss margin of 523.0%, compared to a profit margin of 47.1% in the previous year [172]. - Other income for the period was approximately HKD 17,599,000, a decrease from HKD 20,815,000 in the previous year, primarily due to the forced closure of shopping centers [172]. Equity and Liabilities - Total equity decreased to HKD 580,291 thousand as of December 31, 2022, down from HKD 1,012,424 thousand as of June 30, 2022, indicating a decline of approximately 42.6% [11]. - Non-current liabilities amounted to HKD 899,520 thousand as of December 31, 2022, compared to HKD 1,077,231 thousand as of June 30, 2022, reflecting a decrease of about 16.6% [11]. - The group reported a total of HKD 930,012,000 in lease liabilities as of December 31, 2022, down from HKD 976,100,000 as of June 30, 2022, representing a decrease of 4.7% [100]. - The group has no borrowings as of December 31, 2022, and has arranged four bonds totaling approximately HKD 26,351,000 [183]. Revenue and Income - Revenue from property operations for the six months ended December 31, 2021, was HKD 94,447 thousand, with a segment profit of HKD 55,041 thousand [31]. - Rental income, management fees, and operational service income for the period amounted to HKD 74,788,000, compared to HKD 94,447,000 for the six months ended December 31, 2021, indicating a decline of about 21% [71]. - The group recorded revenue of approximately HKD 74,788,000 for the six months ended December 31, 2022, a decrease of about 20.8% compared to HKD 94,447,000 in 2021 [130]. - The decrease in revenue was primarily due to rental reductions for over 235 tenants affected by the pandemic, amounting to approximately HKD 32,634,000 [130]. Operational Strategy - The company plans to focus on property management and related services, with a strategy to enhance operational efficiency and customer satisfaction [18]. - Future outlook includes potential market expansion and the introduction of new services to enhance revenue streams [18]. - The group plans to continue investing in property operations, including recruiting experienced personnel and exploring suitable shopping centers for expansion [156]. - The group aims to expand its tenant base by providing leasing, management, and operational services to more shopping centers, enhancing marketing efforts to create stable revenue streams [179]. Asset Management - As of December 31, 2022, the fair value of investment properties was HKD 1,292,045,000, down from HKD 1,843,529,000 as of June 30, 2022, representing a decrease of approximately 30% [68]. - The fair value of investment properties decreased by approximately HKD 483,146,000 due to COVID-19 restrictions, with the carrying value of these properties at HKD 1,292,045,000 as of December 31, 2022 [176]. - The company has recognized contract liabilities related to property management fees, which are collected in advance and recognized as revenue over the service period [18]. - The fair value of investment properties is determined by independent qualified valuers, ensuring compliance with valuation standards [70]. Compliance and Governance - The company is committed to maintaining compliance with Hong Kong Financial Reporting Standards and has adopted relevant accounting policies consistently [13]. - The company did not declare or recommend any dividends during the reporting period, consistent with the previous period [55]. - The group has not proposed an interim dividend for the period, consistent with the previous year [154]. - As of December 31, 2022, there were no significant contracts involving the company's directors with substantial interests [194]. Challenges and Risks - The impairment loss for rental deposits was approximately HKD 35.79 million, a significant increase compared to the previous year, attributed to increased credit risk from certain banks and financial institutions [152]. - The group remains committed to maintaining reasonable working capital despite challenges posed by the COVID-19 pandemic [162]. - The anticipated reopening of the Chinese economy is expected to positively impact sales and foot traffic in shopping malls, leading to a gradual recovery in tenant confidence [159].
锦艺集团控股(00565) - 2023 - 中期财报