Financial Performance - For the six months ended September 30, 2023, the revenue of Asia Resources Holdings Limited was approximately HK$7,584,000, a decrease of 62.8% compared to HK$20,366,000 in 2022[8]. - The cost of sales for the Reporting Period was approximately HK$2,168,000, down 39.5% from HK$3,588,000 in 2022, reflecting the decline in property sales revenue[10]. - The Group recorded a gross profit of approximately HK$5,416,000, a decrease of 67.7% from HK$16,778,000 in 2022, primarily due to reduced rental income from investment properties[11]. - Other gains decreased to approximately HK$6,259,000 from HK$19,917,000 in 2022, mainly due to reduced interest income related to property acquisitions[12]. - The Group recorded a loss for the period of approximately HK$13,349,000, a decrease from HK$16,946,000 in 2022, primarily due to a more stable RMB exchange rate reducing currency exchange losses[29]. - The water business segment reported a loss of approximately HK$1,627,000, down from HK$3,097,000 in 2022, attributed to decreased currency exchange losses and lower finance costs[31]. - The Group's total assets as of 30 September 2023 were approximately HK$1,673.40 million, a decrease from HK$1,742.85 million on 31 March 2023[134][137]. - Total equity attributable to owners of the Company decreased to approximately HK$1,326.67 million as of 30 September 2023, down from HK$1,385.23 million on 31 March 2023, primarily due to losses[131][136]. Expenses and Costs - The cost of sales for the Reporting Period was approximately HK$2,168,000, down 39.5% from HK$3,588,000 in 2022, reflecting the decline in property sales revenue[10]. - Selling and distribution expenses increased to approximately HK$482,000 from HK$351,000 in 2022, mainly due to management and maintenance expenditures on investment properties[19]. - Administrative expenses rose to approximately HK$14,765,000 from HK$13,315,000 in 2022, attributed to increased staff costs and professional fees related to acquisition and disposal transactions[20]. - The Group's total staff costs for the reporting period amounted to approximately HK$5,609,000, an increase from HK$4,715,000 in 2022[148][154]. Property Development and Investment - Dalian Chuanghe has completed 21 buildings in Phase I of its property development, with a total saleable area of approximately 42,540 square meters, and has handed over approximately 81% of this area to buyers[47]. - The property development and investment segment turned a profit of approximately HK$1,889,000, compared to a loss of approximately HK$13,017,000 in 2022, driven by reduced currency exchange losses[45]. - The Group's revenue from property projects in Dalian, Zhejiang, and Suzhou has decreased, impacting overall performance despite the profit turnaround in the property segment[45]. - The total saleable area for Phase II is planned to be approximately 69,000 square meters, but its development has been delayed due to the COVID-19 pandemic and economic slowdown in China[51][55]. - The construction of the factory buildings for Hunan Xintian has been completed in the first half of 2023, with commercial production expected to commence in early 2024[39]. Market Conditions - The overall economic conditions in the PRC remain stagnant, impacting the Group's revenue from property sales and rental income significantly[9]. - The property market in China has shown a downward trend, with land transactions in Q1 2023 reaching the lowest level since 2010 and residential property prices dropping in over 75% of major cities[58]. - The inventory level of real properties has increased by more than 40% compared to November 2021, indicating a significant rise in unsold properties[58]. - The prolonged COVID-19 pandemic adversely affected the business of tenants in both Zhejiang and Suzhou Properties, leading to lower occupancy rates and rental income[82]. Rental Income - Rental income from Zhejiang Properties decreased to approximately HK$2,184,000 for the Reporting Period, down from HK$4,988,000 in 2022, indicating a decline of approximately 56.2%[74]. - Rental and management fee income from Suzhou Properties fell to approximately HK$3,608,000, down from HK$11,319,000 in 2022, representing a decrease of approximately 68.1%[81]. - The overall occupancy rate and rental income of the Zhejiang Properties dropped due to some tenants terminating lease agreements or reducing leased areas[75]. - The Group is actively seeking new tenants for vacant units in both Zhejiang and Suzhou Properties, with plans to enhance marketing and offer competitive rental packages[76][83]. Acquisitions and Investments - The Group has paid RMB 200,000,000 for the acquisition of office premises and an underground car park in Beijing, with a remaining balance of approximately RMB 20,000,000 to be paid upon execution of the pre-sale agreement[68]. - The Group entered into multiple acquisition agreements for properties at a total consideration of approximately RMB165,700,000, which includes RMB100,000,000 for Yantian Properties and RMB65,100,000 for additional properties[89]. - The Group is actively exploring expansion into energy-related and natural resources businesses to diversify its portfolio and mitigate risks[103]. - The Group entered into agreements to acquire 100% equity interest in Youyin Investment Holdings Limited and 73.1% equity interest in Yongming Investment Holdings Limited, which hold mineral resources projects in Yunnan, PRC[104]. Shareholder Information - As of September 30, 2023, the interests of the Directors in the shares of the Company include Li Yuguo holding 226,800,000 shares (24.17% of issued share capital)[161][162]. - The total number of issued shares of the Company as of September 30, 2023, is 938,402,800 shares[174]. - The Company has not been notified of any other person with an interest of 5% or more in the issued share capital as of September 30, 2023[172]. Corporate Governance - The Company has complied with all applicable provisions of the Corporate Governance Code during the Reporting Period, except for the lack of insurance cover for Directors since May 21, 2018[192]. - The audit committee comprises three Independent Non-executive Directors and is responsible for overseeing the financial reporting system and internal controls[198]. - The audit committee has reviewed the unaudited interim financial statements for the six months ended September 30, 2023, and confirmed compliance with applicable accounting standards[199].
中加国信(00899) - 2024 - 中期财报