Financial Performance - For the six months ended June 30, 2023, the group's share of losses from its associate, Road King Infrastructure Limited, was HKD 543 million, compared to a profit of HKD 38 million for the same period in 2022 [7]. - The company reported a loss attributable to owners of the company of HKD (433,028,000), compared to a profit of HKD 42,889,000 for the same period in 2022 [186]. - Total comprehensive expenses for the period amounted to HKD 437,657,000, significantly higher than HKD 86,976,000 in the previous year [81]. - The total comprehensive loss attributable to the company's owners was HKD 530,024,000, compared to a loss of HKD 159,926,000 in the same period last year [81]. - The company reported a total loss attributable to owners of HKD 433,028,000 for the six months ended June 30, 2023, compared to a profit of HKD 42,889,000 in the same period last year [152]. Revenue and Profitability - Total revenue for the six months ended June 30, 2023, was HKD 6,077,053 thousand, an increase from HKD 5,913,857 thousand in the same period of 2022, representing a growth of approximately 2.8% [106]. - Gross profit for the period was HKD 756,993 thousand, up from HKD 551,359 thousand in the previous year, indicating a significant increase of approximately 37.3% [106]. - The construction contracts segment generated revenue of HKD 5,845,883,000, up from HKD 5,723,244,000, reflecting a growth of 2.1% [137]. - The operating profit from the construction, sewage treatment, and steam fuel segment was HKD 145,972,000, compared to HKD 113,076,000 in the previous year, indicating a year-on-year increase of 29% [150]. Expenses and Costs - The company incurred administrative expenses of HKD 41,962,000, up from HKD 28,691,000 in the prior year, representing a 46% increase [152]. - The financial costs for the period were HKD 35,073,000, compared to HKD 21,684,000 in the previous year, reflecting a 62% increase [152]. - The company reported a significant increase in financial costs, with bank loan interest rising to HKD 48,919,000 for the six months ended June 30, 2023, compared to HKD 24,477,000 in the same period last year, representing a 99% increase [160]. Cash Flow and Liquidity - The net cash generated from operating activities for the six months ended June 30, 2023, was HKD 120,325,000, a decrease of 81.7% compared to HKD 657,175,000 in the same period of 2022 [132]. - The company reported a net cash outflow from investing activities of HKD 592,807,000, contrasting with a net cash inflow of HKD 321,000 in the same period last year [132]. - The cash and cash equivalents at the end of the period were HKD 1,742,620,000, down from HKD 2,096,920,000 at the end of June 2022 [132]. - The company has unused bank financing of HKD 1,825 million as of June 30, 2023, compared to HKD 2,013 million as of December 31, 2022, indicating a decrease in available financing [50]. Investments and Assets - The group's investment portfolio in quoted debt securities was valued at HKD 272 million as of June 30, 2023, down from HKD 497 million at the end of 2022 [16]. - The fair value of listed investments decreased to HKD 927,431,000 as of June 30, 2023, from HKD 1,327,762,000 as of December 31, 2022 [189]. - The company’s equity in joint ventures was valued at HKD 8,398,638,000 as of June 30, 2023, down from HKD 9,013,765,000 as of December 31, 2022 [189]. Market Outlook and Strategy - Road King aims to enhance cash flow and continue developing market-responsive products while promoting its brand as a reliable developer [38]. - The construction sector is expected to perform better in 2023 compared to 2022, driven by the smooth progress of all major projects and an increase in marginal profits [47]. - Future outlook remains cautious due to ongoing market challenges and economic uncertainties [81]. - The company is focusing on enhancing its product offerings and exploring market expansion opportunities [81]. Shareholder Information - The company did not recommend the distribution of an interim dividend for the six months ended June 30, 2023, consistent with the previous year where no dividend was declared [159]. - The company paid dividends amounting to HKD 87,244,000 during the period [132].
WAI KEE HOLD(00610) - 2023 - 中期财报