Financial Performance - The company recorded a consolidated loss attributable to shareholders of approximately HKD 82.69 million for the six months ended June 30, 2023, a decrease of approximately HKD 102.92 million compared to a profit of HKD 20.23 million for the same period in 2022[10]. - For the period of 2023, the company's revenue (net of VAT and government levies) was approximately HKD 857,940,000, an increase of approximately HKD 444,900,000 or 107.71% compared to HKD 413,040,000 in 2022[46]. - The gross profit for the same period was approximately HKD 154,180,000, a decrease of approximately HKD 84,810,000 or 35.49% from HKD 238,990,000 in 2022[46]. - The net loss for the period was HKD 111,788,000, compared to a profit of HKD 166,436,000 in the previous year, indicating a turnaround of 167.1%[95]. - The company did not declare an interim dividend for the six months ended June 30, 2023, consistent with the previous year[92]. Asset Management and Sales - The company completed the sale of 90% equity in a project in Tongzhou District, Beijing, on June 6, 2022, and the remaining 10% was sold on August 10, 2023, recovering approximately RMB 180 million (equivalent to about HKD 203.71 million)[13]. - The company is actively arranging the sale of projects totaling approximately 572,000 square meters, including projects in Xiamen, Hainan, Shanghai, and Tianjin, with agreements already signed for some[13]. - The company plans to sell certain projects classified as held for sale, as indicated in multiple announcements throughout 2023[16]. - The group plans to sell 100% equity of Baodi Industrial Real Estate Development (Jiaxing) Co., Ltd. through a public listing on the Beijing Property Exchange, announced on August 28, 2023[163]. Strategic Focus and Transformation - The company plans to gradually exit heavy asset investments and focus on developing the cold chain business to penetrate the food supply chain in China, aiming to reduce debt and financial expenses while diversifying revenue sources[11]. - The company aims to enhance profitability through the sale of heavy assets and the development of sustainable business models that generate continuous income[11]. - The company is focusing on reducing reliance on real estate development and enhancing supply chain industry development[42]. - The company aims to build a light-asset, low-risk, and strong cash flow S2B2C supply chain platform within three to five years, leveraging existing infrastructure and resources[44]. Occupancy and Revenue Generation - As of June 30, 2023, the overall average occupancy rate of the group's warehouses increased to 62.03% from 58.71% at the beginning of the year, with an additional leased area of approximately 2,400 square meters in the first half of 2023[20]. - The warehouse in Tianjin (Tianjin Airport Area) had an average occupancy rate of 43.46% in the first half of 2023, significantly lower than the previous year's 95.28% due to market downturns and tenant turnover[20]. - The warehouse in Xiamen achieved an occupancy rate of 81.98% as of June 30, 2023, with tenants primarily being well-known domestic e-commerce and logistics companies[20]. - The average occupancy rate of the wholesale trading area in the Quzhou Agricultural Market is 83.78%, while the storage service area and public facilities have occupancy rates of 77.98% and 80.34%, respectively[25]. Financial Costs and Liabilities - The company has experienced increased financial costs and declining asset prices over the past four years, leading to continuous losses, prompting a strategic business transformation[11]. - Financial expenses for the period were approximately HKD 283,070,000, a decrease of about HKD 10,210,000 or 3.48% from HKD 293,280,000 in the previous period[63]. - Total borrowings as of June 30, 2023, were approximately HKD 8,552,730,000, with a capital debt ratio of 185.25%[82]. - The company reported a significant foreign exchange risk due to operations primarily in China, with most domestic transactions settled in RMB while financing activities are mainly in USD[89]. Management and Governance - The company’s management team has undergone changes, with new appointments made on July 21, 2023, to strengthen leadership[5]. - The company has complied with the corporate governance code as per the Hong Kong Stock Exchange rules for the six months ending June 30, 2023, with some exceptions noted[198]. - Independent non-executive directors were unable to attend all shareholder meetings due to other commitments, which deviates from the governance code[198]. - The chairman of the board was absent from the annual general meeting held on June 15, 2023, due to other business obligations, but delegated the meeting to an executive director[199]. Future Outlook and Development - The company plans to focus on market expansion and new product development as part of its future strategy[102]. - The company aims to transform into a food supply chain service provider, leveraging existing cold storage resources and internet platforms[42]. - The company is actively seeking strategic partners to establish a fund for the development of the Cambodia project[36]. - The company has introduced a high-tech enterprise to the Su Nan Smart City project, aiming to create a future video export base in China[33].
北京建设(00925) - 2023 - 中期财报