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中华国际(01064) - 2023 - 中期财报

Financial Performance - The consolidated revenue for the six months ended June 30, 2023, was HKD 14,752,000, a slight increase of approximately 2% compared to HKD 15,104,000 for the same period last year[7]. - The adjusted EBITDA for the period was HKD 3,021,000, down from HKD 4,995,000 in the previous year[8]. - The net loss for the group during the period was HKD 444,000, a decrease from a profit of HKD 521,000 in the same period last year, attributed to a decline in revenue and an increase in administrative expenses[9]. - For the six months ended June 30, 2023, the company's revenue was HKD 14,752,000, a decrease of 2.33% compared to HKD 15,104,000 in the same period of 2022[105]. - The company reported a loss of HKD 444,000 for the period, compared to a profit of HKD 521,000 in the previous year, indicating a significant decline in profitability[105]. - The pre-tax profit for the period was HKD 2,171,000, down from HKD 3,118,000 in 2022, reflecting a decrease of approximately 30.4%[122]. - The basic earnings per share attributable to ordinary shareholders was HKD 0.02, down from HKD 0.15 in the same period last year, a decline of 86.67%[105]. - The total employee cost for the period was HKD 3,599,000, a decrease from HKD 3,916,000 in the previous year[76]. Financial Position - The cash and bank balance as of June 30, 2023, was HKD 95,874,000, an increase from HKD 84,874,000 as of December 31, 2022, with no bank borrowings[10]. - The group had outstanding borrowings of HKD 69,098,000 as of June 30, 2023, down from HKD 72,297,000 at the end of the previous year[13]. - The total assets of the group as of June 30, 2023, were HKD 4,233,749,000, a decrease from HKD 4,415,989,000 as of December 31, 2022[14]. - The net current assets as of June 30, 2023, were HKD 12,838,000, compared to HKD 1,034,000 as of December 31, 2022[14]. - The company's total equity decreased to HKD 2,883,771,000 from HKD 3,021,523,000, a decline of approximately 4.56%[111]. - The total liabilities decreased to HKD 1,217,706,000 from HKD 1,257,083,000, reflecting a reduction of about 3.13%[111]. Capital and Investments - The company announced the issuance of 60,000,000 stock options at an exercise price of HKD 0.09, raising a total of HKD 4,950,000 before expenses[22]. - As of June 30, 2023, the net proceeds from the new share issuance amounted to HKD 16.1 million, with 74.5% allocated to the Guangzhou development project and 25.5% for general working capital[25]. - The Guangzhou reconstruction project is budgeted at approximately RMB 1.7 billion (HKD 1.836 billion), with the company and related parties bearing 25% and 75% of the total cost respectively[39]. - The company owns around 190 residential units with a total construction area of approximately 11,000 square meters, which are currently vacant or available for sale[41]. Legal and Regulatory Matters - The company is currently facing legal challenges regarding a liquidation petition against its indirect subsidiary, Guangzhou Zhengda, with recent court rulings impacting its operational status[51]. - The company expressed disappointment over a recent ruling that overturned a previous dismissal of the liquidation petition, indicating ongoing legal disputes[51]. - The company plans to address the legal issues through litigation or arbitration rather than liquidation procedures[51]. - Guangzhou Zhengda's Chinese partner holds 0% equity, thus has no shareholder rights according to Chinese company law[55]. - The so-called liquidation announcement is the second attempt by Yuefang Private Enterprise to initiate compulsory liquidation, following a similar attempt in 2009 that was dismissed in 2021[58]. - Guangzhou Zhengda's business operations remain normal, and it is still registered as an "operating enterprise" as of the latest public report[60]. Market and Economic Outlook - Economic indicators show a strong rebound in both mainland China and Hong Kong following the lifting of travel restrictions in March 2023[68]. - The central government aims for a 5% economic growth target for 2023, despite facing challenges such as the ongoing Ukraine war and high inflation rates in Western countries[68]. - The board maintains a cautiously optimistic outlook for the stability and prosperity of the Chinese economy this year[70]. - The board expresses optimism for economic rebound in mainland China and Hong Kong in the fourth quarter of 2023[75]. - The government emphasizes the importance of macro policies, expanding demand, reform, innovation, and risk prevention to stabilize the economy[70]. Corporate Governance - The company has complied with the corporate governance code throughout the period[94]. - The board consists of five members, with independent non-executive directors making up 60% of the board[96]. - Major shareholders include Ye Jiali with 15.30% and He Zhanxiong with 13.74% of the company's shares[86]. - The company’s major shareholder, He Jianxiong, holds 14.39% of the company through controlled corporations and 0.91% directly[78].