Financial Performance - Revenue for the six months ended March 31, 2023, was SGD 55.618 million, a decrease of 6.6% compared to SGD 59.181 million for the same period in 2022[8]. - Gross profit increased to SGD 33.019 million, up 5.8% from SGD 31.219 million year-on-year[8]. - Net profit for the period was SGD 18.307 million, down 46.1% from SGD 33.852 million in the previous year[8]. - Basic and diluted earnings per share decreased to 4.14 cents from 7.87 cents year-on-year[8]. - The group's profit for the period was SGD 16.94 million, compared to SGD 32.20 million in the same period last year, indicating a decline of about 47.4%[11]. - The profit before tax for the six months ended March 31, 2023, was SGD 14,820,000, down from SGD 32,508,000 in the same period last year, a decline of 54.4%[33]. - Net profit attributable to equity holders for the six months ended March 31, 2023, was SGD 16,937,000, down 47.4% from SGD 32,196,000 in the previous year[80]. - The group reported a pre-tax profit decrease from approximately SGD 35.9 million in the first half of 2022 to approximately SGD 20.3 million in the first half of 2023, a reduction of about SGD 15.6 million (or 43.3%) due to the aforementioned factors[132]. - Net profit decreased from approximately SGD 33.9 million in the first half of 2022 to approximately SGD 18.3 million in the first half of 2023, a decline of about SGD 15.5 million (or 45.9%) due to the reasons stated above[134]. Assets and Liabilities - Total assets as of March 31, 2023, amounted to SGD 566.487 million, an increase from SGD 468.886 million as of September 30, 2022[10]. - Non-current assets increased to SGD 461.061 million from SGD 368.739 million, reflecting growth in property, plant, and equipment[10]. - Total equity rose to SGD 206.510 million, up from SGD 192.178 million as of September 30, 2022[10]. - The group's total assets as of March 31, 2023, were SGD 199.21 million, up from SGD 185.90 million as of October 31, 2022, reflecting an increase of approximately 7.1%[11]. - Total liabilities rose to SGD 359,977,000 from SGD 276,708,000, marking an increase of about 30%[69]. - Non-current liabilities increased from approximately SGD 186.0 million as of September 30, 2022, to approximately SGD 259.0 million as of March 31, 2023, an increase of about SGD 73.0 million primarily due to increased bank borrowings for property acquisitions and renovation costs[147]. - The group's debt as of March 31, 2023, amounted to SGD 180.4 million, with an interest rate ranging from 1.38% to 7.85%[160]. - The debt-to-equity ratio increased to 59.8% as of March 31, 2023, compared to 54.4% on September 30, 2022, due to increased bank borrowings for property purchases[163]. Cash Flow - Cash generated from operating activities for the six months ended March 31, 2023, was SGD 27.75 million, an increase of 41.9% from SGD 19.56 million in the previous year[13]. - The group reported a decrease in cash and cash equivalents to SGD 36.25 million as of March 31, 2023, down from SGD 37.85 million a year earlier, reflecting a decline of approximately 4.1%[13]. - The group recorded a net cash inflow from operating activities of approximately SGD 27.8 million in the first half of 2023, primarily due to changes in working capital and an increase in trade and other payables[156]. - Net cash used in investing activities was approximately SGD 35.1 million, mainly for the acquisition of properties at 404 Pasir Panjang and 48 Arab Street, and renovation costs at 2 Mount Elizabeth Link and Lavender Collection[156]. - As of March 31, 2023, the group's cash and cash equivalents decreased by approximately SGD 3.3 million to about SGD 36.2 million[158]. Investment Properties - The company reported a significant increase in investment properties' fair value loss, amounting to SGD 3.852 million compared to a gain of SGD 8.630 million in the previous year[8]. - The fair value of investment properties as of March 31, 2023, was SGD 315,892,000, an increase from SGD 233,267,000 as of September 30, 2022[46][49]. - The company recognized a net loss adjustment of SGD 3,852,000 in fair value for investment properties during the six months ended March 31, 2023[49]. - The company’s investment properties include industrial, commercial, and residential properties, with a fair value based on independent professional valuations[46][48]. - The fair value of owned investment properties in Singapore as of March 31, 2023, is SGD 190,936,000, with a price per square meter ranging from SGD 1,600 to SGD 37,500[51]. - The fair value of owned investment properties in Indonesia is SGD 5,785,000, with a price per square meter ranging from SGD 3,300 to SGD 3,600[51]. - The fair value of owned investment properties in Cambodia is SGD 15,970,000, with a price per square meter ranging from SGD 1,500 to SGD 4,600[51]. - The fair value of leasehold properties in Singapore is SGD 25,178,000, with a price per square meter ranging from SGD 500 to SGD 25,800[52]. - The total fair value of investment properties reported as of March 31, 2023, is SGD 315,892,000[51]. Financing Costs - The company’s financing costs increased to SGD 4.424 million from SGD 2.344 million, indicating higher borrowing costs[8]. - The group’s financing costs rose to SGD 4.42 million, compared to SGD 2.34 million in the previous year, indicating an increase of about 89.0%[13]. - Total financing costs for the six months ended March 31, 2023, rose to SGD 4,424,000, an increase of 88.5% from SGD 2,344,000 in 2022[76]. - Financing costs increased from approximately SGD 2.3 million in the first half of 2022 to approximately SGD 4.4 million in the first half of 2023, an increase of about SGD 2.1 million (or 88.7%) primarily due to increased interest expenses from bank borrowings and lease liabilities[129]. Operational Highlights - The company plans to continue expanding its investment properties portfolio to enhance revenue streams in the future[7]. - The company plans to expand its market presence in Southeast Asia, particularly in Singapore, Thailand, and Malaysia, where external revenue was SGD 49,643,000, SGD 2,137,000, and SGD 1,277,000 respectively[70]. - The company actively manages its property portfolio to minimize vacancy rates and retain high-quality tenants, aiming for the longest possible weighted average lease term[95]. - The company has secured bank guarantees equivalent to several months of lease payments to mitigate credit risk associated with its leasing agreements[95]. - The company launched its second major Coliwoo property, Coliwoo Orchard, which has 135 units and 411 rooms, contributing to steady growth in occupancy rates since opening[106]. - The company has identified that the company guarantees as of March 31, 2023, have no significant fair value[98]. - Coliwoo properties are expected to significantly contribute to the group's growth in FY2024, with new properties like Coliwoo Orchard and others set to commence operations in H2 2023[108]. Employee and Governance - The group had 654 employees as of March 31, 2023, an increase from 615 employees on September 30, 2022[177]. - The company confirms compliance with the corporate governance codes of Hong Kong and Singapore for the first half of 2023, except for the separation of roles between the chairman and CEO[196]. - The company has established an Audit Committee to oversee financial reporting processes and internal controls[200].
LHN(01730) - 2023 - 中期财报