Financial Performance - The company reported a profit of HKD 20,275,000 for the six months ended September 30, 2023, compared to HKD 21,305,000 for the same period in 2022, reflecting a decrease of approximately 4.83%[6][17]. - Total comprehensive income for the period was HKD 6,773,000, a significant improvement from a total comprehensive loss of HKD 52,719,000 in the previous year[7]. - Revenue from external sales reached HKD 266,291,000, an increase from HKD 227,886,000 in the same period last year, representing a growth of approximately 16.87%[18]. - The company’s basic and diluted earnings per share for the period were HKD 0.0220, down from HKD 0.0225 in the same period last year[24][35]. - The total revenue for the six months ended September 30, 2023, was HKD 269,381,000, compared to HKD 266,291,000 for the same period in 2022, indicating a slight increase of about 0.79%[114]. - The profit attributable to shareholders for the six months ended September 30, 2023, was approximately HKD 20,242,000, down from HKD 21,330,000 in the same period of 2022, indicating a decrease of about 5.1%[196]. Assets and Liabilities - The company’s non-current assets increased to HKD 5,807,072,000 as of September 30, 2023, compared to HKD 5,614,061,000 as of March 31, 2023, indicating a growth of about 3.44%[9]. - The company’s total liabilities decreased to HKD 2,814,066,000 from HKD 2,894,246,000, reflecting a reduction of approximately 2.77%[9]. - The company’s total assets less current liabilities increased to HKD 6,394,187 from HKD 6,154,919[142]. - The company’s equity attributable to owners decreased to HKD 2,532,351 from HKD 2,544,789[142]. - The total borrowings of the group as of September 30, 2023, were approximately HKD 4.924 billion, with 80% in HKD and 17% in CAD[68][70]. Cash Flow and Financial Management - Cash and cash equivalents decreased to HKD 539,618,000 from HKD 852,305,000, a decline of approximately 36.67%[13]. - Operating cash flow for the period was a net outflow of HKD 216,205, compared to a net inflow of HKD 113,972 in the same period last year[144]. - The company experienced a decrease in cash and cash equivalents, with a net reduction of HKD 314,383, compared to HKD 106,391 in the previous year[145]. - The group has approximately HKD 7.202 billion in properties and bank deposits pledged as collateral for bank financing[73]. Revenue and Profit Segments - The boutique hotel division performed well, with revenue and profit growth, maintaining a high occupancy rate[51]. - The company recorded a net rental income of HKD 35,350,000 for the six months ended September 30, 2023, compared to HKD 20,360,000 in the previous year, marking an increase of about 73.73%[108]. - The revenue and profit from the watch manufacturing and watch accessory trading segment experienced a slight decline during the same period[197]. - The North America segment reported revenue of HKD 38, a significant decrease from HKD 3,042 in the previous year[130]. Investments and Future Plans - The group completed the sale of its subsidiary HGL Investment Limited on October 11, 2023, for an initial consideration of HKD 266 million[63][65]. - The group has no significant investment plans currently, with all investments funded through bank borrowings and internal resources[72]. - The group plans to continue focusing on increasing rental income in its boutique hotel business[52]. - The luxury residential project located at No. 1 South Bay Avenue is expected to be completed in the first half of 2024, after which the company will create a model unit designed by a renowned designer[198]. - The group has received approval to add one floor with 12 residential units to its mixed-use project at 88 Queen Street East, Toronto, which is intended for long-term investment[171]. Operational Efficiency - Employee costs recognized in the income statement for the period were approximately HKD 48 million, compared to HKD 52 million for the same period last year[58]. - The company incurred a total staff cost of HKD 47,922,000 for the period, down from HKD 52,197,000 in the previous year, a decrease of about 8.93%[108]. - The depreciation of property, plant, and equipment decreased to HKD 2,514,000 from HKD 4,105,000, a reduction of approximately 38.73%[108]. - The group’s major management personnel compensation for the period was approximately HKD 16,976,000, compared to HKD 17,226,000 for the six months ended September 30, 2022[189]. Risk Management and Governance - The company has established an audit and risk management committee to oversee financial reporting and risk management practices[94]. - The group anticipates continued pressure on its watch and watch accessories business due to global interest rate hikes and slowing economic growth in China[172]. - The impact of foreign exchange rate changes resulted in a loss of HKD 11,532, compared to a loss of HKD 74,789 in the previous year[138]. Market Conditions - The fair value change of financial assets recognized in profit or loss resulted in a gain of HKD 1,980,000, compared to a loss of HKD 24,585,000 in the previous year[21]. - The fair value of investment properties increased to HKD 5,100,016,000 as of September 30, 2023, up from HKD 4,890,225,000 as of March 31, 2023, representing a growth of approximately 4.29%[112]. - The fair value of the group's investment properties in Hong Kong and China is determined using the residual method, reflecting the quality of completed development projects[159]. - The fair value of the group's investment properties in the UK and Japan is determined by independent qualified professional valuers, with no relationship to the group[183].
NATIONAL ELEC H(00213) - 2024 - 中期财报