Sales Performance - As of the report date, 543 out of 547 units of the "Altissimo" project have been sold, generating total sales proceeds of approximately HK$7.1 billion, with the Group holding a 40% equity interest[5]. - The "Met. Azure" project has sold 319 units, resulting in total sales proceeds of approximately HK$1.6 billion as of the report date[15]. - The "LADDER Dundas" commercial property has achieved total sales proceeds of approximately HK$616.9 million, with all units and signage sold as of the report date[17]. - The "Larchwood" project has sold 105 out of 187 units, with total sales proceeds amounting to approximately HK$572.1 million as of the report date[19]. Acquisitions and Developments - The Group completed the acquisition of a site at Nos. 18-20 Sze Shan Street for approximately HK$940.6 million, with a total site area of approximately 41,700 square feet planned for redevelopment into a residential project with commercial space[23]. - In June 2023, the Group acquired a site at Nos. 3-9 Finnie Street for HK$412 million, with a total site area of approximately 4,200 square feet, also planned for redevelopment into a residential project with commercial space[26]. - The Group has formed a joint venture with APG, holding a 50% equity interest, which currently includes 6 projects in various stages of development[6]. - The Group has completed the consolidation of ownership for an urban redevelopment project at Ap Lei Chau, with a site area of approximately 6,600 square feet planned for redevelopment into a residential project with commercial spaces[27]. - The Group is actively seeking to increase land reserves through public tenders and acquisitions of old building rights for future development[94]. Financial Performance - The Group's revenue for the six months ended 30 September 2023 was approximately HK$286.7 million, a decrease of 77.3% compared to approximately HK$1,260.8 million for the same period in 2022[28]. - Profit attributable to owners of the parent for the same period was approximately HK$267.7 million, compared to approximately HK$67.6 million in the previous year, reflecting a significant increase[28]. - Finance costs increased to approximately HK$80.7 million, up from approximately HK$50.2 million in the prior period, primarily due to rising interest rates[28]. - Share of profits and losses from joint ventures amounted to approximately HK$376.0 million, a substantial increase from approximately HK$108.0 million in the same period last year[28]. - Revenue from property development recognized during the reporting period was approximately HK$258.4 million, significantly lower than approximately HK$1.3 billion in the previous year[29]. Dividends and Shareholder Returns - The Group does not recommend the payment of any interim dividend for the six months ended 30 September 2023, consistent with the previous year[28]. - The basic earnings per share for the six months ended 30 September 2023 is HK$0.0176, based on a profit attributable to owners of the parent of HK$267.7 million[116]. Market Conditions and Economic Outlook - Property prices and transaction volumes rebounded early this year, but sentiment was dampened by interest rate hikes and geographic tensions, leading to a drop in monthly transactions from the second half of the year[57][58]. - The Chief Executive's latest policy address proposed measures to relax property market restrictions, including halving the buyer's stamp duty for new residential properties and shortening the special stamp duty holding period from three years to two years[58]. - The Group will adopt a cautious and prudent approach towards business development and financial positions amid existing uncertainties in the international and domestic economy[62]. Sustainability and Corporate Governance - The Group is committed to sustainability and actively participates in corporate social responsibility activities, including collaborations with local universities[64]. - The Company is committed to maintaining high standards of corporate governance, emphasizing transparency, accountability, integrity, and independence[174]. - The Company has established an audit committee to review and supervise financial reporting procedures and internal controls[156]. Employee and Operational Insights - As of September 30, 2023, the Group had 149 employees in Hong Kong, an increase from 128 employees as of March 31, 2023[73]. - The Group provides discretionary bonuses, medical insurance, and a defined contribution to the Mandatory Provident Fund for eligible employees[73]. Financial Position and Assets - As of September 30, 2023, the Group's total assets less current liabilities were approximately HK$7.467 billion, compared to approximately HK$7.327 billion as of March 31, 2023, reflecting an increase[85]. - The current ratio as of September 30, 2023, was approximately 1.3 times, down from approximately 1.5 times as of March 31, 2023[85]. - The Group's cash and bank balances were approximately HK$510.4 million as of September 30, 2023, a decrease from approximately HK$869.2 million as of March 31, 2023[85]. - Non-current assets totaled HK$6,558,896,000 as of September 30, 2023, an increase from HK$6,109,196,000 as of March 31, 2023[186]. Joint Ventures and Partnerships - The Group has formed a joint venture with Angelo, Gordon & Co., L.P. for the acquisition and operation of a property in Kowloon, Hong Kong, which will be rebranded as "Sunny House" and is expected to offer 720 rooms, reopening in Q1 2024[104]. - The Group has partnered with Kohlberg Kravis Roberts & Co. L.P. to own two commercial properties, both of which have high occupancy rates, with "Lake Silver" fully let and "The Parkside" over 97% occupied[98]. - The Group is engaged as the asset manager in multiple joint ventures, leveraging its resources and networks in the Hong Kong market[127].
宏安地产(01243) - 2024 - 中期财报