Financial Performance - The company reported revenue of HKD 134,601,000 for the six months ended June 30, 2022, representing an increase of 2% compared to HKD 131,546,000 for the same period in 2021[9]. - Gross profit for the same period was HKD 113,805,000, up from HKD 106,720,000, indicating a growth of approximately 6%[9]. - The net profit attributable to shareholders was HKD 88,249,000, a decrease of 19% from HKD 109,568,000 in the previous year[9]. - Basic and diluted earnings per share were HKD 10.56, down from HKD 13.11, reflecting a decline of about 19%[9]. - The adjusted profit before tax for the six months ended June 30, 2022, was HKD 113,262,000, down from HKD 138,906,000 in the same period of 2021, reflecting a decrease of 18.6%[38]. - The group reported a profit decline of approximately 20% to about HKD 107 million for the six months ended June 30, 2022, compared to HKD 133 million in the same period last year[113]. Revenue Sources - Revenue from property investment for the six months ended June 30, 2022, was HKD 104,986,000, an increase from HKD 97,919,000 in 2021, representing a growth of 7.3%[40]. - The profit from property investment for the six months ended June 30, 2022, was HKD 91,210,000, compared to HKD 79,973,000 in 2021, indicating an increase of 14.1%[40]. - Revenue from serviced apartments and property management services for the six months ended June 30, 2022, was HKD 19,920,000, up from HKD 18,219,000 in 2021, a growth of 9.3%[40]. - Rental income from leased properties rose to HKD 104,986,000 in the first half of 2022, compared to HKD 97,919,000 in 2021, marking an increase of 7.3%[44]. - Rental and property management fee income increased by approximately 7% to about HKD 124 million, with rental income from Hong Kong remaining stable at HKD 35 million and income from Shanghai properties rising by approximately 11% to HKD 89 million[113]. Cash Flow and Liquidity - For the six months ended June 30, 2022, the net cash inflow from operating activities was HKD 99,417,000, compared to HKD 93,634,000 for the same period in 2021, representing an increase of 4.0%[30]. - The net cash outflow from investing activities was HKD 17,181,000 for the six months ended June 30, 2022, compared to a net inflow of HKD 18,014,000 in 2021[30]. - The net cash inflow from financing activities was HKD 256,817,000 for the six months ended June 30, 2022, compared to a net outflow of HKD 171,866,000 in 2021[30]. - As of June 30, 2022, cash and cash equivalents totaled HKD 801,440,000, an increase from HKD 406,559,000 at the end of June 2021[30]. - Cash and cash equivalents were approximately HKD 801 million as of June 30, 2022, up from HKD 462 million at the end of 2021[119]. Assets and Liabilities - The total assets as of June 30, 2022, amounted to HKD 13,789,404,000, compared to HKD 13,524,059,000 as of December 31, 2021[15]. - The company’s total liabilities increased to HKD 3,852,249,000 from HKD 3,659,000,000, indicating a rise of about 5%[18]. - The group reported a total bank loans of HKD 1,777,000,000 as of June 30, 2022, up from HKD 1,487,000,000 as of December 31, 2021, representing a 19.5% increase[69]. - The company's short-term bank loans due within one year were HKD 627,900,000 as of June 30, 2022, compared to HKD 225,400,000 as of December 31, 2021, indicating a significant increase of 178%[69]. - The company's debt-to-asset ratio was approximately 15% as of June 30, 2022, compared to 13% at the end of 2021[119]. Shareholder Information - As of June 30, 2022, major shareholders include Power Resources Holdings Limited with 66.91% ownership, Lucky Speculator Limited with 52.52%, and Desert Prince Limited with 14.39%[135]. - The company’s issued and fully paid ordinary shares remained at 836,074,218 shares with a par value of HKD 0.05 as of June 30, 2022[74]. Corporate Governance - The audit committee reviewed the group's accounting principles and practices, discussing the unaudited interim results for the six months ended June 30, 2022[142]. - The company has adhered to the corporate governance code as per the Hong Kong Stock Exchange Listing Rules during the six months ended June 30, 2022[143]. - The company plans to propose amendments to its articles of association to ensure compliance with the corporate governance code[144]. - All directors confirmed compliance with the standard code of conduct for securities transactions during the six months ended June 30, 2022[146]. Market Conditions and Future Outlook - Hong Kong's GDP contracted year-on-year in the first two quarters of 2022, with no signs of improvement in negative factors affecting economic recovery, including COVID-19, geopolitical conflicts, inflation, and interest rate hikes[125]. - Rental income from Hong Kong decreased compared to the same period last year, and the group anticipates continued weakness in tenant demand and affordability in the coming months[126]. - Despite extensive lockdowns in Shanghai at the beginning of 2022, the group's operations in mainland China were not significantly affected, and rental income is expected to remain stable for the remainder of the year[126]. - The group will closely monitor changes in the operating environment and adjust its investment strategies accordingly, maintaining confidence in its financial stability amid economic uncertainties[127].
万事昌国际(00898) - 2022 - 中期财报