Financial Performance - The loss attributable to owners of the Company for the period from January 1, 2022, to June 30, 2022, was approximately HK$21,703,000, compared to a loss of approximately HK$1,336,000 for the first six months of 2021[16]. - Revenue for the six months ended June 30, 2022, was HK$1,572,000, a decrease of 90.66% compared to HK$16,859,000 for the same period in 2021[87]. - Loss before tax for the six months ended June 30, 2022, was HK$21,794,000, compared to a loss of HK$1,297,000 in the previous year, indicating a significant increase in losses[87]. - Total comprehensive expenses for the period amounted to HK$24,322,000, a stark contrast to a total comprehensive income of HK$7,999,000 in the prior year[89]. - The company's total equity attributable to owners decreased to HK$105,527,000 from HK$80,917,000 at the end of 2021, highlighting a decline in shareholder equity[92]. Financial Position - As of June 30, 2022, the underlying current ratio was approximately 0.53, a slight decrease from 0.55 on December 31, 2021[30]. - The underlying gearing ratio was approximately (69%) as of June 30, 2022, improving from (81%) on December 31, 2021[30]. - Net current liabilities were approximately HK$195,524,000 as of June 30, 2022, up from HK$173,265,000 on December 31, 2021[31]. - The company’s accumulated losses increased to HK$1,043,074,000 as of June 30, 2022, compared to HK$1,021,371,000 at the beginning of the year[93]. - The Group had net liabilities of approximately HK$166,662,000, with interest-bearing borrowings amounting to approximately HK$115,000,000[106]. Business Operations - The Group's property rental business includes a property in Tianjin with a land use area of 11,331.30 square meters, providing a steady rental income stream[17]. - The Group is engaged in property development with a land area of approximately 29,012.72 square meters in Tianjin, where two 4-storey buildings with a total gross floor area of 18,333 square meters are under construction[23]. - The Group's business operations were affected by COVID-19 lockdown measures and a downturn in the property market in 2022[106]. - The Group aims to explore business opportunities in the natural gas sector not only in the PRC but also globally to further develop this business[24]. - The Group aims to identify and explore growth opportunities in the natural gas business both in China and globally[27]. Governance and Compliance - The Company has complied with all provisions of the Corporate Governance Code for the six months ended June 30, 2022, except for certain deviations regarding insurance cover for directors[74]. - The Audit Committee has reviewed the unaudited condensed consolidated financial statements for the six months ended June 30, 2022, with no disagreements noted[82]. - The Company did not have an internal audit function as of the report date, citing the current effectiveness of its internal control system[76]. - The roles of Chairman and Chief Executive Officer are held by the same individual, which the Board believes ensures consistent leadership[75]. Share Capital and Structure - A capital reorganisation was approved on January 24, 2022, involving share consolidation, capital reduction, and share sub-division[62]. - The share consolidation involved consolidating every ten issued shares of par value HK$0.05 into one consolidated share of par value HK$0.50[62]. - The capital reduction will reduce the par value of each issued consolidated share from HK$0.50 to HK$0.01 by cancelling HK$0.49 of paid-up capital[67]. - The share sub-division will subdivide each authorised but unissued consolidated share into fifty ordinary shares with par value HK$0.01 each[68]. - As of the report date, the capital reduction and share sub-division have not yet become effective[69]. Cash Flow and Liquidity - Cash and bank balances increased to approximately HK$3,575,000 as of June 30, 2022, compared to HK$1,862,000 at the end of 2021[31]. - The company is actively negotiating to repay outstanding liabilities and is working to collect accounts receivable to improve its financial position[111][116]. - Cost-saving measures are being implemented to minimize expenses, including administrative and operating costs[112][117]. - Potential fundraising activities are being sought, including rights issues and the issuance of new shares or convertible bonds, depending on market conditions[114][119]. - The directors believe that if the above measures are successfully implemented, the group will have sufficient cash resources to meet future working capital and financial needs[115]. Segment Performance - For the six months ended June 30, 2022, total revenue amounted to HK$1,572,000, with property management services contributing HK$647,000 and leases contributing HK$925,000[140]. - The Group's revenue from property management services in the PRC for the six months ended June 30, 2022, was HK$647,000, recognized over time[138]. - The total revenue from the property investment segment for the six months ended June 30, 2022, was HK$1,572,000, with all revenue recognized over time[140]. - The segment profit for the same period in 2022 was HK$1,395,000, compared to HK$933,000 in 2021, indicating a year-over-year increase of 49.5%[148]. - Other income, gains, and losses totaled HK$18,019,000 in 2022, slightly up from HK$18,003,000 in 2021, reflecting a marginal increase of 0.09%[150].
中国基建投资(00600) - 2023 - 中期财报