Financial Performance - For the six months ended September 30, 2022, the revenue was approximately HK$20,366,000, an increase of 65.5% compared to HK$12,297,000 for the same period in 2021[7]. - The gross profit for the Reporting Period was approximately HK$16,778,000, representing a 103.3% increase from HK$8,238,000 in the same period last year[7]. - The Group reported a loss for the period of approximately HK$16,946,000, a turnaround from a profit of approximately HK$60,745,000 in the same period last year[11]. - Total comprehensive income for the period was HK$(105,751,000), compared to HK$74,470,000 in the previous year, indicating a substantial decrease[93]. - The Group incurred a net exchange loss of HK$46,347,000 for the six months ended September 30, 2022, with no exchange loss reported in the same period of 2021[129]. - The Group's total loss before taxation was HK$15,921,000, a stark contrast to a profit of HK$61,354,000 in the previous year, highlighting a substantial decline in financial performance[120]. Revenue Sources - The increase in revenue was mainly attributed to rental and management fee income following the acquisition of a subsidiary holding investment properties in Suzhou, PRC[7]. - Revenue from property sales was HK$4,059,000, up from HK$3,998,000, while revenue from leases increased significantly to HK$16,307,000 from HK$8,299,000[124]. - The Group recorded rental income of approximately HK$4,988,000 for the Reporting Period, a decrease from approximately HK$8,299,000 for the six months ended 30 September 2021[37]. - The lease income from operating leases was approximately HK$13,978,000, with direct operating expenses of HK$4,867,000, resulting in a net income of HK$9,111,000[151]. Expenses and Losses - The cost of sales for the Reporting Period was approximately HK$3,588,000, down 11.6% from HK$4,059,000 in the previous year[7]. - Selling and distribution expenses decreased to approximately HK$351,000 from approximately HK$731,000, attributed to lower agency fees for unsold properties in Dalian[11]. - Administrative expenses increased to approximately HK$13,702,000 from approximately HK$11,043,000, mainly due to higher staff costs and increased land and property taxes in the PRC[11]. - The Group recorded other losses of approximately HK$46,351,000 due to currency exchange losses from the depreciation of Renminbi[11]. Investment and Acquisitions - The Group completed the acquisition of 100% of Shun Jie International Holdings Company for a consideration of RMB376,000,000 on 27 May 2022[57]. - The Group acquired 100% equity interest of Shun Jie International Holdings Company Limited, which holds land use rights for buildings with a total construction area of approximately 14,798 square metres[37]. - The company has conditionally paid a refundable deposit of RMB90,000,000 for the acquisition of Jinma Creative Industry Park, with a remaining balance of approximately RMB10,000,000 due upon issuance of ownership certificates[28]. - The Group's investment properties increased to HK$813,100,000 as of 30 September 2022, up from HK$105,301,000 as of 31 March 2022[95]. Financial Position - As of 30 September 2022, the Group had total assets of approximately HK$1,965,413,000, financed by current liabilities of approximately HK$152,158,000 and shareholder's equity of approximately HK$1,569,984,000[53]. - Total equity attributable to owners of the Company decreased from approximately HK$1,645,363,000 as at 31 March 2022 to approximately HK$1,569,984,000 as at 30 September 2022, reflecting a loss attributable to owners[53]. - The Group's current ratio decreased to approximately 2.02 as at 30 September 2022, down from approximately 5.63 as at 31 March 2022[55]. - The Group's gearing ratio remained stable at approximately 0.006 as at 30 September 2022, consistent with the ratio as at 31 March 2022[55]. Staff and Management - The total staff costs for the Reporting Period amounted to approximately HK$4,715,000, an increase from HK$3,431,000 for the six months ended 30 September 2021[60]. - As of September 30, 2022, the company employed approximately 49 staff members, an increase from 34 staff members as of September 30, 2021[64]. - The management is committed to improving operational efficiency and maximizing shareholder value through strategic initiatives[7]. Market Outlook - Future outlook includes potential market expansion and further acquisitions to enhance revenue streams[7]. - The Group remains optimistic about the long-term economic development of the PRC and believes demand for water products and properties will remain strong and sustainable[37]. Compliance and Governance - The Company has complied with all applicable provisions of the Corporate Governance Code during the Reporting Period, except for certain deviations[84]. - The Company has adopted the Model Code for securities transactions by Directors and confirmed compliance by all Directors during the Reporting Period[86]. - The audit committee reviewed the financial reporting system and confirmed compliance with applicable accounting standards for the interim financial statements[90].
中加国信(00899) - 2023 - 中期财报