Financial Performance - For the six months ended September 30, 2022, the Group's overall revenue was approximately RMB 335.5 million, representing an increase of 405.7% compared to RMB 66.3 million for the same period in 2021[14]. - The Group achieved a gross profit of RMB 54.3 million for the six months ended September 30, 2022, compared to RMB 24.7 million for the same period in 2021[14]. - The net profit for the period was RMB 416.6 million, significantly up from RMB 16.8 million for the same period in 2021[14]. - Revenue for the six months ended September 30, 2022, was RMB 335,505,000, a significant increase from RMB 66,345,000 in the same period of 2021, representing a growth of approximately 405%[136]. - Gross profit for the same period was RMB 54,274,000, compared to RMB 24,697,000 in 2021, indicating a growth of about 120%[136]. - Profit before tax surged to RMB 517,672,000, up from RMB 10,220,000 in the previous year, reflecting an increase of approximately 4,973%[136]. - Profit for the period reached RMB 416,562,000, a substantial rise from RMB 16,782,000 in 2021, marking an increase of around 2,384%[136]. - Other income surged to RMB 540.6 million for the six months ended September 30, 2022, up from RMB 84.4 million in the previous year, mainly due to a reversal of write-downs of RMB 536.5 million related to the Fusong Property Project[42]. Property Development and Sales - The Group has two residential property projects, Guangze Jiuxi Red House and Guangze China House, both located in Jilin Province, PRC, with ongoing development of Phase II for both projects[15]. - The Group plans to reactivate the development of the Fusong Property Project, with adjustments made to the sales and marketing positioning to enhance cash flow[11]. - For the six months ended 30 September 2022, property sales amounted to approximately RMB307.1 million, primarily from Guangze Jiuxi Red House – Phase I and Guangze China House – Phase IA, with a total GFA of 66,213 sq.m.[24]. - The Group's revenue increased by 405.7% from RMB66.3 million for the six months ended 30 September 2021 to RMB335.5 million for the same period in 2022, driven by a 620.0% increase in property sales, amounting to RMB269.4 million[32]. - The Group recognized property sales of approximately RMB210.0 million from Guangze Jiuxi Red House – Phase I and RMB97.1 million from Guangze China House – Phase IA during the six months ended 30 September 2022[32]. - The Group completed the construction and delivery of Guangze Jiuxi Red House – Phase I during the six months ended 30 September 2022[24]. - The remaining part of Guangze China House – Phase IA was completed and delivered during the same period[21]. Financial Position and Liquidity - The Group's current portion of bank and other borrowings amounted to RMB 420,697,000, while unrestricted cash and cash equivalents were only RMB 74,291,000, indicating potential liquidity challenges[128]. - The Group's total receivables, after accounting for provisions, decreased from RMB55.7 million as of 31 March 2022 to RMB43.5 million as of 30 September 2022[81]. - Cash and bank deposits decreased by approximately 20.3% from RMB 93.2 million to RMB 74.3 million[92]. - The gearing ratio improved from 92% as of March 31, 2022, to 73% as of September 30, 2022, mainly due to an increase in equity from reduced accumulated losses[100]. - The Group reported a net cash outflow from investing activities of RMB 0, compared to RMB (2,074,000) in the previous year[144]. - The Group's ability to continue as a going concern is uncertain due to the current property market conditions and limited financing sources[161]. - The Group expects to generate adequate cash flows to maintain operations in the foreseeable future, despite the challenges faced[162]. Expenses and Costs - Selling and distribution expenses decreased by RMB2.0 million to RMB2.5 million for the six months ended 30 September 2022, attributed to the absence of promotional activities during the period[45]. - Administrative expenses fell by RMB0.8 million to RMB16.4 million for the six months ended 30 September 2022, reflecting ongoing cost control measures[46]. - Finance costs increased by RMB15.1 million to RMB39.8 million for the six months ended 30 September 2022, driven by higher interest rates and fewer project loans qualifying for capitalization[54]. - The loss in fair value of investment properties was RMB27.5 million for the six months ended 30 September 2022, an improvement from a loss of RMB46.6 million in the same period in 2021[55]. Taxation - Current tax for the six months ended 30 September 2022 included RMB5.4 million in PRC Corporate Income Tax, with total tax charges amounting to RMB101.1 million[60]. - The Group's current income tax for the six months ended 30 September 2022 included a Land Appreciation Tax (LAT) provision of RMB1.6 million, down from RMB6.8 million in the same period of 2021, and a Corporate Income Tax (CIT) provision of RMB5.4 million, compared to nil in the prior year[62][63]. - A deferred tax charge of RMB94.2 million was recorded for the six months ended 30 September 2022, contrasting with a tax credit of RMB13.4 million in the same period of 2021, primarily due to increased deferred tax liabilities from the reversal of write-downs of properties under development[65][68]. Strategic Initiatives - The Group aims to integrate and utilize high-quality resources from Changbaishan in various industries, including ginseng and mineral water, to build an internationally influential brand[10]. - The cultural tourism industry is expected to see strong demand and development opportunities, which the Group intends to capitalize on by introducing more resources and partners[10]. - The Group's strategy focuses on developing cultural tourism centered around excellent traditional Chinese culture and unique cultural symbols[10]. - The management is conducting further research and assessment on the Fusong Property Project to align with the Group's current strategy[11]. Employee and Operational Metrics - The Group's total staff costs for the six months ended 30 September 2022 were approximately RMB 8.2 million, up from RMB 7.9 million in the same period of 2021, primarily due to an increase in the number of Directors[118][119]. - As of September 30, 2022, the Group had 232 full-time employees, a slight decrease from 235 as of 31 March 2022[118][119].
华音国际控股(00989) - 2023 - 中期财报