Financial Performance - The company reported consolidated revenue of HKD 15,104,000 for the six months ended June 30, 2022, representing an increase of approximately 1% compared to HKD 14,980,000 in the same period last year[7]. - The adjusted EBITDA for the period was HKD 4,995,000, up from HKD 4,071,000 in the previous year[8]. - The net profit for the period was HKD 521,000, a turnaround from a loss of HKD 353,000 in the same period last year, attributed to a reduction in administrative expenses from HKD 12,320,000 to HKD 11,717,000[9]. - Profit before tax for the period was HKD 3,118,000, representing a 44.9% increase from HKD 2,152,000 in the previous year[88]. - The net profit attributable to equity holders of the company was HKD 1,051,000, compared to a loss of HKD 353,000 in the same period last year[88]. - The total comprehensive income for the period was a loss of HKD 133,216,000, compared to a gain of HKD 26,260,000 in the previous year, primarily due to foreign exchange losses[91]. - The company’s total comprehensive income for the period was HKD 8,564,000, compared to HKD 26,260,000 in the same period of 2021, representing a decrease of 67.4%[108]. Cash Flow and Liquidity - The net cash flow from operating activities was HKD 210,000, down from HKD 3,521,000 in the previous year[10]. - As of June 30, 2022, the company had cash and bank balances of HKD 66,310,000, a decrease from HKD 93,204,000 as of December 31, 2021[10]. - Cash and cash equivalents at the end of the period were HKD 66,310,000, down from HKD 82,093,000 at the end of June 2021, indicating a decrease of 19.2%[101]. - The company’s operating cash flow for the six months was HKD 210,000, significantly lower than HKD 3,521,000 in the previous year, indicating a decline of 94.0%[101]. Assets and Liabilities - The total liabilities as of June 30, 2022, were HKD 75,352,000, down from HKD 79,359,000 at the end of the previous year[13]. - The company’s total liabilities decreased from HKD 1,350,669,000 to HKD 1,289,378,000, reflecting a reduction of approximately 4.5%[95]. - The total assets as of June 30, 2022, were HKD 4,514,747,000, a decrease from HKD 4,727,091,000 as of December 31, 2021[14]. - Non-current assets decreased to HKD 4,378,468,000 from HKD 4,566,646,000 at the end of 2021[93]. - Current assets decreased to HKD 136,279,000 from HKD 160,445,000 at the end of 2021[93]. - Current liabilities decreased to HKD 135,209,000 from HKD 153,046,000 at the end of 2021[93]. - The company’s non-current liabilities totaled HKD 1,289,378,000, down from HKD 1,350,669,000, indicating a reduction of approximately 4.5%[95]. Shareholder Information - Major shareholders include He Jianxiong with 110,600,000 shares (15.50%) and He Zhanxiong with 105,600,000 shares (14.80%) as of June 30, 2022[70]. - The company did not declare an interim dividend for the period, consistent with the previous year[78]. - The company did not recommend the payment of an interim dividend for the period, consistent with the previous year[118]. - No share options were granted or exercised during the period[76]. - The company has no issued potential dilutive ordinary shares as of the reporting date[120]. Real Estate Development - The company has two investment properties located in Chongqing and Guangzhou, with a carrying value of HKD 407,979,000 and HKD 3,966,300,000 respectively[14]. - The Chongqing property, located in a prime area, has a total construction area of approximately 49,400 square meters, with the company owning about 24,400 square meters, primarily leased to third parties[26]. - The Guangzhou redevelopment project is planned to be a 22-story multifunctional commercial complex with a total construction area of approximately 234,000 square meters, including twin towers and three basement levels[33]. - The redevelopment project in Guangzhou is expected to take about four years, with the first phase completion anticipated by the end of 2025 and the second phase by early 2027[34]. - The company is conducting feasibility studies to potentially convert some redevelopment projects from serviced apartments to residential properties, which could significantly enhance investment returns[33]. - The company’s properties in Guangzhou and Chongqing are strategically located near major transportation and commercial hubs, enhancing their market appeal[30]. - The company plans to connect the new building's basement to two metro stations, improving accessibility for future tenants[33]. - The overall real estate market in Guangzhou has been impacted by a national crisis, but the company's redevelopment plans are proceeding as scheduled due to minimal funding requirements during the planning phase[34]. - The Guangzhou reconstruction project has a budgeted cost of approximately RMB 1.7 billion (HKD 1.989 billion), with the company and related parties bearing 25% and 75% of the total cost respectively[37]. - The company owns about 190 residential units with a total construction area of approximately 11,070 square meters, which are expected to be renovated before being put on the market for sale[38]. - The company is actively exploring other income sources and new business projects in Guangzhou to compensate for the revenue loss due to the closure of the wholesale market in 2019[37]. Challenges and Market Conditions - The ongoing COVID-19 pandemic continues to pose severe challenges, impacting cross-border operations and the overall economic performance in China for 2022 remains uncertain[49]. - The Chinese government is addressing challenges in the real estate sector and economic recovery, with a GDP growth target of approximately 5.5% for 2022, which is now considered difficult to achieve[52]. - The central government has gradually lowered the benchmark interest rate since Q1 2022 and instructed major commercial banks to increase liquidity for the real estate sector[52]. - Despite the impact of COVID-19 and temporary lockdowns, rental income from the Chongqing property remained stable due to most leases being signed at the end of 2021[29]. Employee Information - The total employee cost for the group was HKD 3,916,000 for the period, down from HKD 4,149,000 in the previous year[57]. - As of June 30, 2022, the group employed approximately 24 employees, unchanged from December 31, 2021[57].
中华国际(01064) - 2022 - 中期财报