Financial Performance - The loss attributable to owners of the Company for the period from January 1, 2023, to June 30, 2023, was approximately HK$26,988,000, compared to a loss of approximately HK$21,703,000 for the same period in 2022, representing an increase in loss of about 24.5%[18]. - Revenue for the six months ended June 30, 2023, was HK$1,523,000, a decrease of 3.1% compared to HK$1,572,000 for the same period in 2022[76]. - Gross profit for the same period was HK$1,359,000, down from HK$1,395,000, reflecting a decrease of 2.6%[76]. - Loss before tax increased to HK$26,811,000, compared to a loss of HK$21,794,000 in the previous year, representing a 22.9% increase in losses[76]. - Loss for the period was HK$26,853,000, compared to HK$21,794,000 in 2022, indicating a 23.2% increase in losses[79]. - Total comprehensive expenses for the period amounted to HK$28,551,000, up from HK$24,322,000, marking a 17.5% increase[79]. - The company reported a total of HK$44,498,000 in liabilities related to the investment holding segment[124]. - The group incurred finance costs of HK$42,610,000, significantly impacting overall profitability[124]. - Finance costs increased to HK$42,610,000 for the six months ended June 30, 2023, compared to HK$35,392,000 in 2022, marking an increase of approximately 20.5%[130]. Assets and Liabilities - The Group's deficit attributable to owners increased by approximately 9% to HK$344,726,000 from HK$315,683,000 at the end of last year[32]. - Net current liabilities as of June 30, 2023, were approximately HK$430,252,000, compared to HK$402,555,000 as of December 31, 2022[32]. - Cash and bank balances decreased to approximately HK$868,000 from HK$2,347,000 as of December 31, 2022[32]. - Current liabilities exceeded current assets by approximately HK$430,252,000, with net liabilities of approximately HK$406,640,000[97]. - Interest-bearing borrowings amounted to approximately HK$115,000,000, while cash and cash equivalents were only approximately HK$868,000[97]. - Non-current assets decreased to HK$23,692,000 as of June 30, 2023, from HK$24,702,000 at the end of 2022, a decline of 4.1%[81]. - Current assets increased to HK$69,323,000 from HK$55,134,000, representing a growth of 25.7%[81]. - Total equity attributable to owners of the Company was HK$344,726,000, down from HK$315,683,000, reflecting a decrease of 9.2%[81]. Business Operations - The Group adopted a more conservative view and strategy in property development and investment due to the sluggish economic environment caused by the lingering COVID-19 pandemic[25]. - The Group aims to identify and explore business opportunities in the natural gas sector not only in the PRC but also globally to further develop this business[25]. - The company is primarily engaged in property development and investment, as well as natural gas business, indicating a focus on infrastructure-related sectors[92]. - The Group is exploring opportunities in the natural gas business both in China and globally for future growth[28]. - The property management service revenue was recognized over time, indicating a stable revenue stream from ongoing contracts[120]. Governance and Compliance - The Company complied with all provisions of the Corporate Governance Code for the six months ended June 30, 2023, except for the lack of insurance cover for directors against legal actions[61][64]. - The roles of Chairman and Chief Executive Officer are held by the same individual, Mr. Xu Xiao Jun, since July 31, 2017, which the Board believes ensures consistent leadership[66][69]. - The Company does not have an internal audit function, as the Board deems the current internal control system effective given the size and complexity of the business[67][69]. - All Directors confirmed compliance with the Model Code for Securities Transactions for the six months ended June 30, 2023[68][70]. Cash Flow and Financing - The net cash used in operating activities for the six months ended June 30, 2023, was HK$185,000, a significant decrease compared to net cash generated of HK$4,514,000 in the same period of 2022[89]. - The company reported a net decrease in cash and cash equivalents of HK$346,000 for the six months ended June 30, 2023, compared to an increase of HK$3,401,000 in the prior year[89]. - The cash and cash equivalents at June 30, 2023, stood at HK$868,000, down from HK$3,575,000 at the end of the previous period[89]. - The Company is focusing on developing existing businesses and expanding internationally to improve operating results and cash flows[98]. - The Company is exploring various business opportunities to increase cash inflow and improve its financial position[99]. - The Company is actively negotiating to repay outstanding liabilities and collect account receivables[102]. - Cost-saving measures are being enforced to minimize expenses, including administrative and operating costs[103]. - The Company is negotiating with creditors regarding potential debt capitalisation to reduce debt and increase the shareholder base[104]. - The Group is seeking fundraising opportunities such as rights issues and new share placements depending on market conditions[105]. - The Directors believe that successful implementation of these measures will provide sufficient cash resources for future working capital needs[106]. Shareholder Information - As of June 30, 2023, Central Huijin Investment Ltd. and China Construction Bank Corporation each hold 110,819,851 shares, representing 25.95% of the Company's issued share capital[56]. - Expert Ever Limited and Zhang Xiaojun each hold 38,395,600 shares, accounting for 8.99% of the Company's issued share capital[56]. - PHOENIX BRIDGE INTERNATIONAL HOLDINGS GROUP INVESTMENT CO., LTD holds 4,905,440 shares, which is 11.49% of the Company's issued share capital[56]. - Mr. WANG Dade owns 5,977,900 shares, representing 14.00% of the Company's issued share capital[56]. - The Group's share capital remained at HK$500,000,000 as of June 30, 2023, unchanged from December 31, 2022, following a share consolidation that took effect on January 26, 2022[152]. Related Party Transactions - The Group's significant related party transaction included a subscription agreement for 40% equity interests in Forward Investment at a consideration of HK$300,000,000[161]. - The Group recognized HK$18,000,000 in the profit or loss statement for the return undertaking related to the Forward Investment for both the periods ended June 30, 2023, and June 30, 2022[161]. - The Group entered into a subscription agreement to acquire 40% equity interest in Taihe Investment for a consideration of HK$300,000,000, with a guaranteed annual return of no less than 12%[162]. - Due to operational losses, Taihe Investment did not declare dividends, leading to a cash compensation of HK$18,000,000 being recognized in the income statement for both the six months ended June 30, 2023, and 2022[162].
中国基建投资(00600) - 2023 - 中期财报