Financial Performance - The group's rental income from investment properties for the six months ended June 30, 2022, was approximately HKD 17.6 million, a decrease from HKD 18.3 million for the same period in 2021, reflecting the impact of COVID-19[5]. - The group's revenue for the interim period was approximately HKD 17.6 million, a decrease of about 3.8% compared to approximately HKD 18.3 million in the same period last year[15]. - Other income for the interim period was approximately HKD 0.3 million, a significant decrease from approximately HKD 3.5 million in the same period last year, primarily due to the absence of foreign exchange gains[16]. - The group recorded a loss of approximately HKD 4.3 million from its associate, Yitai International, during the interim period, compared to a profit of approximately HKD 48.4 million for the same period in 2021[12]. - The group reported a loss from continuing operations of approximately HKD 29.0 million, compared to a loss of approximately HKD 20.8 million in the same period last year[27]. - The company reported a loss attributable to equity holders of HKD 28,974,000 for the six months ended June 30, 2022, compared to a loss of HKD 20,754,000 for the same period in 2021[114]. - The company incurred finance costs of HKD 7,151 million for the six months ended June 30, 2022, a decrease from HKD 10,171 million in the same period of 2021[70]. - The group reported a net other income of HKD 274,000 for the six months ended June 30, 2022, a decrease of 92.3% compared to HKD 3,538,000 for the same period in 2021[98]. Investment Properties - The total valuation of the group's investment properties as of June 30, 2022, was HKD 1,802.9 million, down from HKD 1,827.3 million as of December 31, 2021, resulting in a fair value loss of HKD 24.4 million during the period[5]. - The fair value loss of investment properties was primarily due to the ongoing impact of COVID-19 on the overall market sentiment in Hong Kong[5]. - The group did not recognize any revenue from the Jinhua project during the interim period, despite the project being fully developed[11]. - The group recognized government subsidies of approximately HKD 56,000 related to COVID-19 support during the interim period[98]. - The group’s investment properties are valued based on the income capitalization method, considering comparable rental and sales transactions in similar locations[119]. Financial Position - As of June 30, 2022, the group had outstanding bank borrowings of approximately HKD 837.3 million, a decrease from approximately HKD 857.8 million as of December 31, 2021[30]. - The group's net asset value as of June 30, 2022, was approximately HKD 1,055.2 million, a decrease of about 2.2% from approximately HKD 1,078.4 million as of December 31, 2021[32]. - The company’s total equity as of June 30, 2022, was HKD 1,055,189 million, down from HKD 1,078,392 million as of December 31, 2021[71]. - The total liabilities decreased to HKD 1,073,681,000 as of June 30, 2022, from HKD 1,347,338,000 as of December 31, 2021[129]. - The company's current assets decreased to HKD 486,811,000 as of June 30, 2022, from HKD 734,575,000 as of December 31, 2021[129]. - The company maintained a current ratio of approximately 0.14 as of June 30, 2022, compared to approximately 0.16 as of December 31, 2021[30]. Employee and Operating Expenses - Employee costs for the interim period were approximately HKD 2.6 million, a reduction of about 39.5% from approximately HKD 4.3 million in the same period last year[17]. - Other operating expenses increased by 29.2% to approximately HKD 9.3 million from approximately HKD 7.2 million in the same period last year[18]. - Total employee costs amounted to HKD 2,646,000 for the six months ended June 30, 2022, down 38% from HKD 4,262,000 in the previous year[99]. Shareholder Information - Major shareholders include China Cinda (Hong Kong) Asset Management Co., Ltd. holding approximately 74.98% of the issued share capital[50]. - The company reported a total of 843,585,747 shares, with significant ownership by China Cinda Asset Management Co., Ltd. which holds 100% of China Cinda (Hong Kong) Holdings Limited[53]. - The total number of shares that can be issued under the share option plan is capped at 30% of the issued shares[44]. - No share options were outstanding under the share option plan as of June 30, 2022[46]. Debt and Financing - The company has a loan agreement with Hang Seng Bank for a principal amount of HKD 570 million, with additional agreements totaling HKD 212 million and HKD 75 million from its subsidiaries[55][56]. - The total principal amount of bank loans extended by Hang Seng Bank is approximately HKD 784 million[178]. - A partial principal repayment of HKD 35 million was made on August 15, 2022[178]. - Monthly interest payments on the loan principal of approximately HKD 784 million are required from August 15, 2022, to February 15, 2023[178]. - The remaining total principal of approximately HKD 7,220 million must be repaid monthly, including both principal and interest[178]. Corporate Governance - The company has adopted the latest corporate governance code as per the listing rules and has complied throughout the reporting period[62]. - There were no changes in director information that required disclosure under the listing rules during the reporting period[61]. - The audit committee, consisting of independent non-executive directors, reviewed the interim financial statements for the six months ending June 30, 2022[65]. Market Conditions - The overall retail market in Hong Kong showed signs of improvement in the second quarter of 2022, with a slight year-on-year decline of 1.3% in GDP following a contraction of 3.9% in the first quarter[4]. - The group aims to strengthen its core property leasing business in Hong Kong, particularly in Causeway Bay, to ensure long-term competitiveness[8].
中昌国际控股(00859) - 2022 - 中期财报