Financial Performance - For the six months ended June 30, 2023, the group's rental income from investment properties was approximately HKD 16.4 million, a decrease from HKD 17.6 million for the same period in 2022, reflecting a decline of 7.1%[6] - The group reported revenue of approximately HKD 16.4 million for the interim period, a decrease of about 6.8% compared to approximately HKD 17.6 million in the same period last year[25] - Revenue for the six months ended June 30, 2023, was HKD 16,382,000, a decrease of 7.05% compared to HKD 17,625,000 for the same period in 2022[73] - Other income for the interim period was approximately HKD 0.9 million, an increase from HKD 0.3 million in the same period last year, primarily due to increased bank interest income and miscellaneous income from forfeited rental deposits and prepaid rents[26] - The loss attributable to owners of the company for the interim period was approximately HKD 22.1 million, compared to a loss of approximately HKD 28.9 million in the same period last year, mainly due to the fair value loss of investment properties and incurred financial costs[34] - Total comprehensive loss for the period was HKD 21,038,000, compared to HKD 23,104,000 in the previous year, indicating a 8.95% reduction[73] Investment Properties - The total valuation of the group's investment properties was HKD 1,768.5 million as of June 30, 2023, down from HKD 1,781.5 million as of December 31, 2022, indicating a decrease of HKD 13 million[8] - The fair value loss of investment properties during the interim period was HKD 13 million, compared to a loss of HKD 24.4 million for the six months ended June 30, 2022[8] - The fair value net loss of investment properties was HKD 13.0 million for the interim period, attributed to challenges from the macroeconomic environment, with the total fair value of investment properties at HKD 1,768.5 million as of June 30, 2023[32] - The group has not made any changes to the valuation methods for investment properties during the interim period[112] Economic Environment - The Hong Kong economy showed signs of recovery, with GDP growth of 1.5% in Q2 2023, following a 2.9% increase in Q1 2023, driven by private consumption and service trade[5] - The group anticipates that the business environment in Hong Kong will remain challenging due to external demand pressures and low GDP growth[22] - The group has faced challenges due to macroeconomic conditions, impacting the fair value of its investment properties[8] Financial Management - The group is focusing on its core property leasing business while managing liquidity and financial conditions prudently[22] - The group is negotiating with financial institutions to extend or restructure loan repayment schedules[22] - The group plans to sell certain assets to raise additional cash[22] - The group made a partial repayment of HKD 100 million to Hang Seng Bank as part of the new waiver conditions on October 29, 2021[15] - Hang Seng Bank approved the extension of the maturity date for bank loans totaling approximately HKD 78.4 million from February 15, 2023, to August 15, 2023[16] - The group has been granted a waiver from default conditions by Hang Seng Bank, contingent upon meeting specific repayment and legal fee obligations[15] Employee and Operating Costs - Employee costs for the interim period were approximately HKD 2.1 million, a decrease of about 19.2% from approximately HKD 2.6 million in the same period last year, mainly due to a reduction in the number of employees[27] - Other operating expenses for the interim period were approximately HKD 3.7 million, a decrease of about 60.2% from approximately HKD 9.3 million in the same period last year[28] - The total employee costs decreased to HKD 2,099,000 for the six months ended June 30, 2023, down from HKD 2,646,000 in the same period of 2022, representing a reduction of approximately 20.7%[99] Shareholder Information - Major shareholder China Cinda (Hong Kong) Asset Management Co., Ltd. holds 843,585,747 shares, representing 74.98% of the issued share capital as of June 30, 2023[55] - The company has 1,125,027,072 shares of common stock issued as of June 30, 2023[59] - The company did not recommend any interim dividend for the period, consistent with the previous year[40] Financial Position - As of June 30, 2023, the group had outstanding bank borrowings of approximately HKD 777.8 million, a decrease from approximately HKD 790.5 million as of December 31, 2022, primarily due to repayments made during the interim period[35] - The group’s net current liabilities were approximately HKD 745.9 million as of June 30, 2023, compared to approximately HKD 738.2 million as of December 31, 2022, mainly due to bank borrowings due within one year[36] - The group reported a net loss from operating activities of HKD 15,090,000 for the six months ended June 30, 2023, compared to a loss of HKD 16,719,000 for the same period in 2022, representing a decrease of approximately 9.7%[99] Taxation and Compliance - The estimated taxable profit in Hong Kong was calculated at a tax rate of 16.5% for the period, with a provision of HKD 1,640,000 for the current period[102] - The company has complied with the corporate governance code throughout the interim period[69] - All directors confirmed compliance with the standard code of conduct for securities trading during the interim period[70]
中昌国际控股(00859) - 2023 - 中期财报