GUOCO GROUP(HK:00053)2024-03-14 09:24Financial Performance - The group recorded an unaudited consolidated profit attributable to shareholders of HKD 1.4489 billion for the six months ended December 31, 2023, representing a 13% increase compared to the same period last year[24]. - Basic earnings per share increased to HKD 4.46, up from HKD 3.95 in the previous year[24]. - Total revenue for the six months increased by 41% to HKD 13.2939 billion, driven by a 24% increase in revenue from property development and investment[24]. - The group's pre-tax profit rose 65% to HKD 1.7928 billion for the six months ended December 31, 2023[24]. - GuocoLand's revenue grew by 61% to SGD 1.0664 billion (approximately HKD 6.1993 billion) due to strong performance in property development and investment[27]. - The property development segment's revenue increased by 67% to SGD 918 million (approximately HKD 5.3366 billion), primarily from phased sales of high-end residential projects in Singapore[27]. - The group’s total investment in the self-operated investment segment amounted to USD 1.819 billion as of December 31, 2023[26]. - The group reported a revenue of $1,701,849 thousand for the six months ended December 31, 2023, representing a 40.6% increase from $1,209,479 thousand in the same period of 2022[57]. - The operating profit before financing costs was $267,752 thousand, up 86.9% from $143,215 thousand year-on-year[57]. - The net profit for the period was $205,211 thousand, an increase of 52.8% compared to $134,272 thousand in the previous year[58]. Dividends and Shareholder Returns - The board declared an interim dividend of HKD 0.50 per share, totaling approximately HKD 165 million, consistent with the previous year's interim dividend[25]. - The company declared an interim dividend of $21,062 thousand for the first half of 2023, slightly down from $21,099 thousand in 2022, indicating a decrease of about 0.2%[86]. Costs and Expenses - Financing costs rose by 87% to SGD 113.5 million (approximately HKD 659.8 million) due to capitalized interest expenses and a high-interest environment[27]. - The financing costs increased to $140,163 thousand from $81,708 thousand, indicating a rise of 71.5%[57]. - The company recognized impairment losses of $59,700 thousand on right-of-use assets, property, plant, and equipment, and intangible assets due to lower-than-expected performance post-pandemic[84]. - Employee benefits, including salaries and wages, rose to $205,848 thousand in the first half of 2023, up from $178,083 thousand in 2022, marking an increase of approximately 15.6%[82]. Market Conditions - Overall prices of non-landed private residential properties in Singapore increased by 6.6% in 2023, a slowdown from the 8.1% rise in 2022[28]. - Developers in Singapore sold 9.1% fewer new private residential units in 2023 compared to 2022, attributed to macroeconomic conditions and high interest rates[28]. - In Malaysia, economic growth for Q4 2023 and the full year is estimated at 3.4% and 3.8% respectively, lower than expected due to weak global demand[29]. Assets and Liabilities - As of December 31, 2023, the company's total equity attributable to shareholders was HKD 60.2 billion, with a net debt of HKD 16.9 billion, resulting in a debt-to-equity ratio of 22%[35]. - The group's cash and short-term funds totaled HKD 40.2 billion, primarily denominated in HKD (30%), USD (30%), and SGD (12%)[35]. - The company reported a net current asset position of $3,285,246 thousand, down from $4,096,500 thousand[59]. - The total liabilities decreased from $39,675,393 as of June 30, 2023, to $34,274,354 as of December 31, 2023, marking a reduction of approximately 13.7%[60]. - The company reported bank loans totaling $4,693,998 thousand as of December 31, 2023, compared to $4,224,391 thousand as of June 30, 2023, indicating an increase of approximately 11.1%[97]. Shareholder Structure - Guo Linghai holds 2,300,000 shares, representing approximately 0.95% of the total issued shares[49]. - Guo Lingcan controls 242,008,117 shares, which accounts for 76.06% of the total issued shares[53]. - The company has a significant concentration of ownership, with major shareholders holding over 75% of the total issued shares[53]. - The company’s major shareholders include multiple entities with overlapping interests, indicating a complex ownership structure[56]. Cash Flow - The net cash generated from operating activities for the six months ended December 31, 2023, was $242.943 million, a decrease from $742.499 million in the same period last year[63]. - The net cash used in investing activities was $(102.038) million, compared to $(114.589) million in the previous year[63]. - The total cash and cash equivalents increased by $189.514 million, compared to an increase of $126.721 million in the previous year[63]. Financial Outlook - The financial outlook for 2024 anticipates a loosening of U.S. monetary policy, with GDP growth expected to slow compared to 2023[37]. - The group will focus on key fundamentals in managing its investment portfolio amidst short-term uncertainties while pursuing long-term sustainable growth strategies[37]. Other Financial Metrics - The total comprehensive income for the period was $294,572 thousand, significantly higher than $126,241 thousand in the prior year[58]. - The company recognized a fair value loss of $69,044 on equity investments during the reporting period[61]. - The company reported a foreign exchange gain of $100,103 from overseas subsidiaries, joint ventures, and associates during the period[61].