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 first six months of 2022[23]. - 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[81]. - Gross profit for the same period was HK$1,359,000, down from HK$1,395,000, reflecting a decline of 2.6%[81]. - Loss before tax increased to HK$26,811,000, compared to a loss of HK$21,794,000 in the previous year, representing a 22.5% increase in losses[81]. - Loss for the period was HK$26,853,000, compared to HK$21,794,000 in the prior year, indicating a 23.2% increase in losses[84]. - Basic loss per share for the period was 6.32 cents, compared to 5.08 cents in the same period last year, reflecting a 24.5% increase in loss per share[81]. - Total comprehensive expenses for the period amounted to HK$28,551,000, up from HK$24,322,000, marking a 17.5% increase[84]. - The company reported a net loss of HK$ 26,988 thousand for the six months ended June 30, 2023, compared to a net loss of HK$ 21,703 thousand for the same period in 2022, representing an increase in loss of approximately 24.5%[88]. Financial Position - The consolidated statement of financial position of the Group at June 30, 2023, is included in the interim report[22]. - As of June 30, 2023, the underlying current ratio was approximately 0.14, an increase from 0.12 as of December 31, 2022[36]. - The underlying gearing ratio was approximately (28%) as of June 30, 2023, compared to (30%) as of December 31, 2022[36]. - The deficit attributable to owners of the Company increased by approximately 9% to HK$344,726,000 from HK$315,683,000 at the end of the previous year[37]. - Net current liabilities were approximately HK$430,252,000 as of June 30, 2023, compared to HK$402,555,000 as of December 31, 2022[37]. - Cash and bank balances decreased to approximately HK$868,000 as of June 30, 2023, down from HK$2,347,000 at the end of the previous year[37]. - Current liabilities exceeded current assets by approximately HK$430,252,000, indicating significant financial strain[102]. - Total equity attributable to owners of the Company decreased to HK$ (344,726) thousand as of June 30, 2023, from HK$ (315,683) thousand at the beginning of the year, reflecting a decline of about 9.2%[88]. - Cash and cash equivalents decreased significantly to HK$ 868 thousand as of June 30, 2023, down from HK$ 2,347 thousand at the end of 2022, a reduction of approximately 63.1%[86]. - Current liabilities increased to HK$ 499,575 thousand as of June 30, 2023, compared to HK$ 457,689 thousand as of December 31, 2022, marking an increase of about 9.1%[86]. - The company's reserves showed a decline, with accumulated losses reaching HK$ (1,276,094) thousand as of June 30, 2023, compared to HK$ (1,249,106) thousand at the start of the year, an increase of approximately 2.2%[88]. - The total deficits of the company reached HK$ (406,640) thousand as of June 30, 2023, compared to HK$ (378,089) thousand at the end of 2022, indicating an increase of approximately 7.6%[88]. Business Operations - The Company continues to operate Tianjin Jun Hua Logistics, which provides a steady rental income stream from a property with a land use area of 11,331.30 square meters[24]. - The Group plans to explore business opportunities in the natural gas sector both in the PRC and globally[30]. - The Group's operating segments included property investment and natural gas, with the latter not generating any revenue during the period[129]. - The Group's total revenue for the six months ended June 30, 2023, was HK$1,523,000, with property management services contributing HK$629,000 and leases contributing HK$894,000[125]. - The Group faced significant challenges due to the ongoing COVID-19 pandemic, leading to a more conservative strategy in property development and investment[30]. Corporate Governance - The interim report is compliant with the Hong Kong Stock Exchange's requirements for preliminary announcements of interim results[3]. - 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[66]. - The company has adopted the Model Code for Securities Transactions by Directors, with all directors confirming compliance for the six months ended June 30, 2023[73]. - The roles of Chairman and Chief Executive Officer are held by the same individual, Mr. Xu Xiao Jun, which the Board believes ensures consistent leadership[74]. - The company has not established an internal audit function, as the Board believes there is no immediate need based on the current size and complexity of the business[72]. Shareholder Information - As of June 30, 2023, Mr. Ye De Chao holds a total of 110,819,851 shares, representing 25.95% of the company's issued share capital[53]. - Central Huijin Investment Ltd. and China Construction Bank Corporation each have an interest in 110,819,851 shares, also accounting for 25.95% of the issued share capital[61]. - Expert Ever Limited, owned by Zhang Xiaojun, holds 38,395,600 shares, which is 8.99% of the issued share capital[61]. - PHOENIX BRIDGE INTERNATIONAL HOLDINGS GROUP INVESTMENT CO., LTD owns 4,905,440 shares, representing 11.49% of the issued share capital[61]. - Mr. WANG Dade holds 5,977,900 shares, which is 14.00% of the issued share capital[61]. - The company has not adopted a new share option scheme since the previous one expired on July 11, 2018[55]. - The substantial shareholders' interests are recorded in the register required under Section 336 of the SFO[59]. Cash Flow and Financing - For the six months ended 30 June 2023, the net cash used in operating activities was HK$185,000, a significant decrease from HK$4,514,000 in the same period of 2022[94]. - The net cash from investing activities was HK$1,000, compared to HK$3,000 in the previous year[94]. - The net cash used in financing activities decreased to HK$162,000 from HK$1,116,000 in 2022[94]. - The Company is actively negotiating to repay outstanding liabilities and collect account receivables to improve its financial position[107]. - The Company plans to explore different business opportunities to increase cash inflow and improve its financial position[104]. - The Directors believe that if the proposed measures are successfully implemented, the Group will have sufficient cash resources to meet future working capital needs[111]. - The Company is considering potential fundraising activities, including rights issues and new share placements, depending on market conditions[110]. Audit and Review - The Audit Committee has reviewed the unaudited condensed consolidated financial statements with no disagreements noted[78]. - The application of new and amended HKFRSs had no material impact on the Group's financial position and performance for the current and prior periods[119].
中国基建投资(00600) - 2023 - 中期业绩