Financial Performance - The net profit attributable to the company's owners for the six months ended June 30, 2023, was RMB 96,962,000, compared to RMB 96,089,000 for the same period in 2022, representing a slight increase [10]. - The company reported overdue trade receivables totaling RMB 8,018,000 as of June 30, 2023, down from RMB 21,632,000 in 2022, indicating a significant improvement in receivables management [16]. - The total liabilities as of June 30, 2023, were RMB 200,011,000, compared to RMB 187,203,000 as of December 31, 2022, showing an increase of 6.8% [22]. - The group's revenue for the six months ended June 30, 2023, was approximately RMB 288.5 million, representing a year-on-year growth of about 11.1% [140]. - For the six months ended June 30, 2023, the group's profit was approximately RMB 92.0 million, a year-on-year decrease of about 2.5% [155]. - The core profit attributable to the owners of the company for the same period was approximately RMB 124.4 million, representing a year-on-year increase of about 12.6% [158]. - The group's gross profit for the six months ended June 30, 2023, was approximately RMB 164.6 million, representing a year-on-year growth of about 9.9% [145]. - The overall gross profit margin was approximately 57.1%, a decrease of about 0.6 percentage points compared to the same period in 2022 [146]. Dividends and Shareholder Returns - The company declared a final dividend of HKD 0.07 per share for the year ended December 31, 2022, totaling approximately HKD 71,297,000 (approximately RMB 64,802,000), which was paid on July 7, 2023 [8]. - The company has not proposed any interim dividend for the six months ending June 30, 2023 [9]. - The company did not declare an interim dividend for the six months ended June 30, 2023, compared to an interim dividend of HKD 0.035 per share for the same period in 2022 [181]. Assets and Liabilities - As of June 30, 2023, total assets amounted to RMB 1,376,912 thousand, an increase from RMB 1,322,952 thousand as of December 31, 2022, reflecting a growth of approximately 4.1% [197]. - Total liabilities were RMB 370,111 thousand, an increase from RMB 292,821 thousand, representing a growth of around 26.4% [197]. - The company's equity increased to RMB 1,204,753 thousand from RMB 1,180,703 thousand, marking a rise of about 2.0% [197]. - Trade and other payables rose to RMB 224,239 thousand, compared to RMB 208,054 thousand, reflecting an increase of approximately 7.8% [197]. - Lease liabilities increased to RMB 39,159 thousand from RMB 28,321 thousand, indicating a growth of around 38.3% [197]. Share Capital and Incentives - The weighted average number of ordinary shares used to calculate basic earnings per share was 1,016,782,000 for the six months ended June 30, 2023, slightly down from 1,018,610,000 for the same period in 2022 [10]. - The company has granted a total of 19,650,000 restricted share units during the period, with 300,000 units forfeited, resulting in 19,350,000 units remaining unexercised [33]. - The company has adopted a share incentive plan on April 17, 2023, granting a total of 54,800,000 shares to 136 eligible participants, including 19,650,000 shares to qualified participants [36]. - No stock options were granted under the stock option plan as of June 30, 2023, with a total of 100,000,000 shares available for grant, representing approximately 9.80% of the issued share capital [178]. Operational Performance - The company provides services to 58 commercial property projects across 22 cities in China, covering a total contracted area of approximately 2.95 million square meters [90]. - The average occupancy rate for retail commercial properties was 93.5% as of June 30, 2023, with COCO Park achieving 96.6% [125]. - The company aims to enhance operational performance and increase revenue through the entrusted management service model, which provides a higher level of autonomy [96]. - The company signed new commercial operation service contracts for a total of 12,000 square meters in the first half of 2023, including 7,000 square meters in Shenzhen and 5,000 square meters in Shanghai [112]. - The company is focusing on strategic and regional concentration, particularly in the Greater Bay Area and Yangtze River Delta [128]. Expenses and Costs - Selling expenses increased by approximately 208.1% to about RMB 4.9 million, primarily due to increased marketing costs for new leasing projects [150]. - Administrative expenses increased by approximately 27.5% to about RMB 35.8 million, mainly due to preparation costs for new leasing projects [151]. - Financing costs increased by approximately 312.1% to about RMB 19.1 million, primarily due to increased interest expenses related to leasing liabilities for new projects [152]. Cash Flow and Receivables - As of June 30, 2023, the group's cash and cash equivalents were approximately RMB 453.6 million, a decrease of about 6.1% compared to December 31, 2022 [160]. - The group's trade and other receivables as of June 30, 2023, were approximately RMB 26.3 million, a decrease of about 43.1% compared to December 31, 2022, due to active collection efforts [158]. - The expected credit loss reversal under the expected credit loss model for the six months ended June 30, 2023, was approximately RMB 2.4 million, compared to a net impairment loss of approximately RMB 5.2 million for the same period in 2022 [170]. Strategic Initiatives - The company is actively seeking acquisition targets but faces increased risks due to the fluctuating domestic pandemic situation and changes in the real estate market [64]. - The company’s board of directors has decided to change the intended use of the net proceeds to seize opportunities in the leasing service market [64]. - The company plans to utilize 10% of the net proceeds for general corporate purposes and working capital, amounting to RMB 84.2 million [66].
星盛商业(06668) - 2023 - 中期财报