Financial Performance - The Group's revenue for the six months ended June 30, 2022, was HK$56.3 million, representing a 7.4% increase compared to HK$52.4 million for the same period in 2021[12]. - Adjusted operating profit increased by 61.1% to HK$26.1 million, up from HK$16.2 million in the previous year[12]. - Profit attributable to equity holders decreased by 66.5% to HK$138.1 million, down from HK$412.3 million for the same period in 2021[16]. - Earnings per share for the six months ended June 30, 2022, was HK8.8 cents, a decrease from HK26.3 cents in the same period of 2021[16]. - The Group reported a profit before income tax of HK$139.1 million, a decline of 66.4% compared to HK$413.4 million in the previous year[12]. - The share of profits of associates was HK$168.9 million, down from HK$435.4 million in the previous year, reflecting a 61.2% decrease[12]. - The Group's operating profit for the period was HK$42.3 million, down from HK$51.4 million in the same period of 2021, representing a decrease of 17.7%[12]. - Excluding the revaluation gain of investment properties, profit attributable to equity holders was HK$122.4 million, down 67.5% from HK$377.1 million in the prior year[19]. - The total profit for the period was HK$138,059,000 for the six months ended June 30, 2022, down from HK$412,293,000 in 2021[187]. Investment Properties - The fair value gain on investment properties contributed significantly to the profit for the period[16]. - The Group's investment properties contributed approximately HK$56.0 million in stable income for the six months ended June 30, 2022, compared to HK$52.4 million in the same period last year, representing a 7.4% increase[26]. - Fair value gain of investment properties decreased by 55.4% to HK$15.7 million for the six months ended June 30, 2022, down from HK$35.2 million in the previous year[27]. - The fair value of investment properties increased to HK$3,300,500,000 as of June 30, 2022, up from HK$3,282,500,000 as of December 31, 2021, indicating a fair value gain of HK$15,740,000 for the first half of 2022[193]. - The net book value of investment properties was HK$3,300,500,000 as of June 30, 2022, reflecting the company's ongoing investment strategy[193]. - The capitalization rates for investment properties ranged from 2.65% to 3.80% as of June 30, 2022, compared to 2.65% to 3.90% at December 31, 2021[27]. - Rental rates for investment properties were HK$10.0 psf to HK$95.0 psf as of June 30, 2022, unchanged from the previous period[27]. Financial Services - The financial services segment recorded a year-on-year increase in revenue due to a higher number of corporate finance projects in the first half of 2022[32]. - The financial services segment generated revenue of HK$0.3 million in the first half of 2022, a sharp increase from no revenue in the same period of 2021, due to an increase in corporate finance projects[53]. - Reportable segment net profit for the property investment segment was HK$38,229,000, while the financial services segment reported a net loss of HK$2,002,000, resulting in a total net profit of HK$36,227,000 for the six months ended June 30, 2022[183]. Cash Flow and Liquidity - The Group's cash and bank balances increased to approximately HK$346.4 million as of June 30, 2022, compared to HK$329.6 million as of December 31, 2021, reflecting a 5.1% increase[61]. - Net cash generated from operating activities for the six months ended June 30, 2022, was HK$24.0 million, compared to HK$22.3 million for the same period in 2021[68]. - Net cash generated from investing activities for the six months ended June 30, 2022, was HK$19.2 million, significantly higher than HK$5.4 million for the same period in 2021, mainly due to dividend income from an associate[69]. - Net cash used in financing activities for the six months ended June 30, 2022, was HK$8.9 million, a decrease from HK$11.0 million for the same period in 2021, mainly due to a reduction in interest paid from HK$8.2 million to HK$7.1 million[74]. - The Group has maintained compliance with liquidity requirements under the Securities and Futures (Financial Resources) Rules for all licensed subsidiaries during the reporting period[65]. Corporate Governance - The Company adheres to corporate governance standards to safeguard shareholder interests and enhance corporate value[86]. - The Company complied with applicable principles of the Corporate Governance Code, with minor deviations explained in the report[88]. - The Audit Committee comprises two independent non-executive Directors and one non-executive Director, ensuring a majority of independent members[96]. - All Directors confirmed compliance with the Model Code for securities transactions throughout the six months ended June 30, 2022[106]. - The Company has adopted stringent written guidelines for securities transactions by employees likely to possess unpublished inside information[108]. Employment and Dividends - As of June 30, 2022, the Group had a total of 15 employees, down from 18 employees as of June 30, 2021[75]. - The Company has resolved not to declare any interim dividend for the six months ended June 30, 2022, consistent with the previous year where no dividend was declared[78]. Shareholder Information - As of June 30, 2022, China Great Wall Asset Management Co., Ltd. holds 1,174,018,094 shares, representing 74.89% of the issued share capital[135]. - Central Huijin Investment Ltd. owns 155,000,000 shares, accounting for 9.89% of the issued share capital[135]. - The percentage of the Company's Shares held by the public exceeded 25% of the total issued Shares as of the date of the Interim Report[99].
长城环亚控股(00583) - 2022 - 中期财报