Financial Performance - Revenue for the six months ended 30 September 2022 was HK$26,386,000, a decrease of 27.7% compared to HK$36,436,000 for the same period in 2021[10]. - Gross profit for the same period was HK$24,949,000, down 28.5% from HK$34,913,000 in 2021[10]. - Profit attributable to shareholders for the period was HK$63,412,000, a decline of 22.5% from HK$81,785,000 in the corresponding period of 2021[14]. - Basic earnings per share decreased to 5.02 HK cents from 8.78 HK cents, representing a drop of 42.5%[15]. - The decrease in net profit was attributed to a decline in revenue and a decrease in write-back on properties held for development for sale[14]. Assets and Liabilities - Total assets as of 30 September 2022 were HK$5,035,900,000, an increase of 3.2% from HK$4,879,808,000 as of 31 March 2022[10]. - Total liabilities were HK$1,868,818,000, slightly up from HK$1,864,621,000 as of 31 March 2022[10]. - The Group's total bank borrowings were approximately HK$1,761,704,000 as of September 30, 2022, compared to approximately HK$1,662,307,000 as of March 31, 2022[92]. - The gearing ratio remained stable at approximately 0.6 as of September 30, 2022, consistent with the ratio as of March 31, 2022[92]. - The current ratio improved to approximately 5.0 as of September 30, 2022, up from approximately 3.8 as of March 31, 2022[92]. Property Development and Investment - The Group's core businesses include property development and property investment, with significant projects ongoing[21]. - The Matheson Street project is under construction, expected to provide a gross floor area of approximately 42,854 square feet upon completion in early 2023[23]. - The Group plans to redevelop the site at 121 King Lam Street, Kowloon, with an area of approximately 5,483 square feet into a modern industrial building, with completion expected in late 2023[29]. - The combined site area of Davis Street and Catchick Street is approximately 7,122 square feet, with plans for a mixed-use development expected to complete in 2025[30]. - The total site area of Fung Wah Factorial Building is approximately 9,206 square feet, with plans for redevelopment into a high-rise modern industrial building, expected to complete in 2025[36]. Rental Income - The Group's total rental and management fee income decreased by approximately 21.7% to approximately HK$24,487,000 for the period, down from approximately HK$31,268,000 in the previous period[37]. - In Hong Kong, the Group's property rental income was approximately HK$10,457,000, representing a decrease of approximately 38.3% compared to HK$16,949,000 in the previous period[43]. - In Singapore, the Group recorded property rental income of approximately HK$1,476,000, reflecting an increase of approximately 5.7% from HK$1,396,000 in the previous period[44]. - In the PRC, the Group's industrial complex had a total carrying amount of approximately HK$345,543,000, with rental income of approximately HK$3,723,000 for the period[49]. Investment and Securities - The Group recorded a fair value loss in securities and other investments of approximately HK$9,850,000, compared to a loss of approximately HK$15,565,000 in the previous period[50]. - As of September 30, 2022, the Group's investment in equity securities listed in Hong Kong and the USA amounted to approximately HK$17,895,000, down from approximately HK$52,818,000 as of March 31, 2022[55]. - The Group's securities investments in Hong Kong and the US amounted to approximately HK$17,895,000, a decrease from approximately HK$52,818,000 as of March 31, 2022[57]. Loan Financing - The Group recorded interest income from loan financing of approximately HK$1,899,000 for the period, representing a decrease of approximately 63.3% compared to HK$5,168,000 in the previous period[61]. - The segment profit from loan financing was approximately HK$6,987,000, a significant improvement from a segment loss of approximately HK$21,177,000 in the previous period[61]. - The outstanding principal amount of loans receivable as of September 30, 2022, was approximately HK$69,350,000, down from approximately HK$94,381,000 as of March 31, 2022[72]. - The Group's credit risk concentration for loans receivable was approximately 68% from a few borrowers, with collateral properties valued at approximately HK$208,655,000[72]. - The largest borrower accounted for approximately 25% of the loans receivable, while the top five borrowers together accounted for approximately 64%[72]. Corporate Governance - The Company has maintained a sufficient public float of more than 25% of the issued Shares as required under the Listing Rules as of the date of this interim report[184]. - The Company fully complied with the Corporate Governance Code during the Period, except for certain deviations disclosed[191]. - The roles of Chairman and Chief Executive Officer are held by the same individual, which the Board believes enhances efficiency in executing long-term strategies[192]. - The Group does not have an internal audit function, but the effectiveness of risk management and internal control systems was reviewed and deemed adequate[196]. - The Audit Committee identified areas for improvement in the internal control systems, and appropriate measures have been taken[196]. Share Capital and Dividends - The Board does not recommend the payment of an interim dividend for the period, consistent with the previous year[16]. - As of September 30, 2022, the total number of issued ordinary shares increased to 2,125,924,676 from 931,458,010 as of March 31, 2022[100][103]. - The net proceeds from the placing under General Mandate amounted to approximately HK$18,380,000, fully utilized for the Group's general working capital[122][124]. - A total of 607,400,000 placing shares were successfully placed at a price of HK$0.068 per share, increasing the total number of issued shares from 1,518,524,676 to 2,125,924,676[134][136]. - The net proceeds from the placing amounted to approximately HK$40,800,000, which will be used for the Group's general working capital[135][137]. Employee and Operational Insights - Employee costs for the period were approximately HK$14,308,000, an increase from approximately HK$12,749,000 in the previous period[153][155]. - The Group had 59 employees as of 30 September 2022, down from 63 employees a year earlier[153][155]. - The Group remains cautiously optimistic about the prospects of the property and securities markets in Hong Kong despite global economic uncertainties[158]. - The Company will continue to identify investment and divestment opportunities that align with its investment strategy during challenging market conditions[159]. - The company maintains a cautiously optimistic outlook for the Hong Kong property and securities markets despite uncertainties due to high inflation, rising interest rates, geopolitical tensions, and the ongoing COVID-19 pandemic[161].
高山企业(00616) - 2023 - 中期财报