Financial Performance - Revenue for the six months ended September 30, 2023, was HKD 22,397,000, a significant increase of 119.5% compared to HKD 10,203,000 for the same period in 2022[7] - Gross profit decreased to HKD 4,160,000, down 40.3% from HKD 6,956,000 year-on-year[7] - The company reported a loss before tax of HKD 1,763,000, an improvement from a loss of HKD 25,762,000 in the previous year[7] - Total comprehensive loss for the period was HKD 20,420,000, compared to HKD 63,226,000 for the same period last year, indicating a reduction in losses[7] - The company reported a basic and diluted loss per share of HKD 1.17, an improvement from HKD 12.19 in the same period last year[7] - For the six months ended September 30, 2023, the group recorded revenue of approximately HKD 22,397,000, an increase of about 120% compared to approximately HKD 10,203,000 for the same period in 2022[48] - The group recorded a loss of approximately HKD 2,495,000 for the six months ended September 30, 2023, a decrease of about 90% compared to a loss of approximately HKD 25,952,000 for the same period in 2022[50] Revenue Breakdown - Property development and sales contributed HKD 18,442,000 to the total revenue, up from HKD 4,241,000, reflecting a growth of 335.5%[18] - The total revenue from property management was HKD 301,000, slightly up from HKD 276,000, reflecting a growth of 9.1%[18] - Revenue from property development was derived from the sale of completed properties in the Xiguan project, with total contract sales amounting to approximately HKD 18,442,000, compared to approximately HKD 4,241,000 for the same period in 2022[52] - Revenue from property investment was approximately HKD 713,000 for the six months ended September 30, 2023, an increase of about 17% from approximately HKD 610,000 for the same period in 2022[58] - Revenue from hydropower operations was approximately HKD 2,941,000 for the six months ended September 30, 2023, compared to approximately HKD 5,076,000 for the same period in 2022[61] Expenses and Costs - Administrative expenses significantly decreased to HKD 4,751,000 from HKD 30,226,000 year-on-year, reflecting cost control measures[7] - The cost of sales increased to HKD 17,552,000 from HKD 3,247,000, representing a rise of 441.5%[24] - Financial costs were approximately HKD 1,251,000 for the six months ended September 30, 2023, a reduction of about 52% from approximately HKD 2,602,000 for the same period in 2022[48] Assets and Liabilities - The company's total assets decreased to HKD 214,093,000 from HKD 239,364,000 as of March 31, 2023[9] - The net asset value as of September 30, 2023, was HKD 211,347,000, down from HKD 231,767,000 at the end of the previous fiscal year[9] - As of September 30, 2023, the company had outstanding bonds amounting to HKD 6,764,000, down from HKD 8,282,000 as of March 31, 2023, showing a reduction in debt obligations[41] - As of September 30, 2023, the group's borrowings amounted to approximately HKD 20,404,000, a decrease from HKD 21,716,000 as of March 31, 2023[64] Cash Flow - Cash flow from operating activities increased to HKD 12,273,000, up from HKD 5,231,000 in the prior year[12] - The company had cash and cash equivalents of HKD 4,500,000 at the end of the reporting period, compared to HKD 2,520,000 in the previous year[12] Market Conditions - The company reported that the sales area of commercial housing in China decreased by 8% year-on-year, with sales amounting to approximately RMB 89,070 billion, down 5% compared to the previous year[47] - The real estate development investment in China was approximately RMB 87,270 billion, reflecting a 9% year-on-year decrease, indicating ongoing market challenges[47] - The company’s management noted that the property market in China continues to face downward pressure, with weak demand affecting housing supply and prices[47] Corporate Governance - The company has adopted all provisions of the corporate governance code as per the listing rules, ensuring compliance with governance standards[89] - The audit committee, consisting of three independent non-executive directors, regularly reviews the financial reporting and internal control systems of the group[92] - The company has confirmed compliance with the standard code of conduct for securities trading by all directors for the six months ending September 30, 2023[91] - The board of directors includes executive directors Wang Jing, Wang Xingqiao, Zhao Shuang, and independent non-executive directors Su Bo, Tang Shengzhi, and Zeng Guowei as of September 30, 2023[93] Shareholder Information - Major shareholders include 达荣资本有限公司, holding 51.02% of shares, and Lushan Investment Holding Limited, holding 68.55% of shares[82] - The pledged shares held by Dahong Capital Limited account for approximately 51.02% of the company's issued share capital, totaling 108,591,364 shares[88] - Dahong Capital Limited is wholly owned by Hong Kong Shihua Holdings Limited, which in turn is wholly owned by Liaoning Shihua, with Mr. Wang Jing holding an 82.8% beneficial interest in Liaoning Shihua[84] - Lushan Investment Holding Limited, fully owned by China Huarong International Holdings Limited, holds 145,895,712 shares, representing a significant stake in the company[86] Future Outlook - The group plans to enhance its product brand and industry positioning while maintaining a prudent investment strategy[76] - The group aims to diversify its business segments to enhance and expand its revenue streams for better performance and prospects[76]
中国华星(00485) - 2024 - 中期财报