Financial Performance - For the six months ended December 31, 2023, the group recorded revenue of approximately HKD 70,311,000, a decrease of about 6.0% compared to HKD 74,788,000 for the same period in 2022[9]. - The gross profit margin for the period was approximately 73.2%, down from 75.0% in 2022[10]. - The group incurred a loss of approximately HKD 38,290,000, significantly reduced from a loss of HKD 391,151,000 in 2022, resulting in a loss ratio of about 54.5% compared to 523.0% in the previous year[11]. - The company reported a pre-tax loss of HKD 68,680,000, significantly improved from a loss of HKD 509,147,000 in the previous year[59]. - The net loss for the period was HKD 38,290,000, compared to a loss of HKD 391,151,000 in the prior year, indicating a substantial reduction in losses[59]. - The total comprehensive expenses for the six months ended December 31, 2023, amounted to HKD 46,691,000, a significant decrease from HKD 432,133,000 in the same period of 2022[69]. - The basic and diluted loss per share for the period was HKD 1.42, compared to HKD 14.55 in the previous year[69]. - The company reported a loss of HKD 38,290,000 for the six months ended December 31, 2023, compared to a loss of HKD 391,151,000 for the same period in 2022, indicating a significant improvement[114]. Revenue and Income Sources - Revenue from property leasing for the six months ended December 31, 2023, was HKD 30,089,000, slightly down from HKD 30,657,000 in the same period of 2022, representing a decrease of about 1.8%[98]. - Property management fee income decreased to HKD 39,395,000 from HKD 43,441,000, a decline of approximately 9.5% year-over-year[98]. - The total revenue for the property operations segment was HKD 70,311,000, down from HKD 74,788,000 in the previous year, indicating a decrease of about 6.3%[103]. - Rental income, management fees, and operational service income for the period amounted to HKD 70,311,000, down from HKD 74,788,000 in the previous year[137]. Investment Properties - The fair value of investment properties, including the Jiachao Shopping Center, was approximately HKD 881,318,000 as of December 31, 2023, down from HKD 995,699,000 on June 30, 2022[13]. - The fair value loss on investment properties was HKD 134,783,000 for the six months ended December 31, 2023, compared to a loss of HKD 483,146,000 for the same period in 2022[123][126]. - The company’s investment properties decreased to HKD 881,318,000 from HKD 995,699,000[73]. - The fair value of investment properties decreased from HKD 1,843,529,000 as of June 30, 2022, to HKD 881,318,000 as of December 31, 2023, reflecting a loss of HKD 134,783,000 during the period[151]. Financial Position - As of December 31, 2023, the group's current liabilities net and total assets less current liabilities were approximately HKD 117,001,000 and HKD 1,002,215,000, respectively[21]. - Non-current assets as of December 31, 2023, totaled HKD 1,095,472,000, a decrease from HKD 1,169,452,000 as of June 30, 2023[73]. - Current assets increased to HKD 103,319,000 from HKD 63,690,000 as of June 30, 2023[73]. - Total equity decreased to HKD 221,751,000 from HKD 268,442,000 as of June 30, 2023[74]. - The company reported a total asset less current liabilities of HKD 1,002,215,000, down from HKD 1,052,451,000[73]. - The company’s cash and bank balances increased to HKD 54,747,000 from HKD 33,152,000 as of June 30, 2023[73]. - The company reported a net current liability of HKD 93,257,000, which includes contract liabilities, advance payments, and tenant deposits totaling HKD 51,914,000, with no expected cash outflow[62]. Cash Flow and Financing - The net cash generated from operating activities for the six months ended December 31, 2023, was HKD 23,076,000, an increase from HKD 21,294,000 in the same period of 2022, representing an increase of approximately 8.4%[76]. - Cash flows from investing activities resulted in a net cash inflow of HKD 37,283,000, compared to HKD 22,489,000 in the previous year, indicating a significant increase of approximately 65.7%[76]. - The net cash used in financing activities was HKD 24,182,000, a decrease from HKD 55,439,000 in the prior year, reflecting a reduction of approximately 56.4%[76]. - Total cash and cash equivalents at the end of the period increased to HKD 54,747,000 from HKD 9,298,000, marking a substantial increase of approximately 487.5%[76]. Future Outlook and Strategy - The group expects an increase in foot traffic and rental income as the shopping malls recover post-pandemic, with anticipated positive impacts from China's economic recovery[20]. - The company plans to expand its leasing services to more tenants in various shopping centers, aiming to create stable and continuous revenue streams[33]. - Future growth is anticipated due to the strategic location of its shopping centers in Zhengzhou, a regional economic hub in central China[35]. - The company aims to maximize shareholder returns and market value through business diversification and expansion opportunities[35]. - The board believes existing financial resources will be sufficient to support future expansion plans, with potential for additional financing if needed[38]. Employee and Administrative Expenses - The group employed a total of 141 employees in China and Hong Kong, providing competitive compensation and benefits[23]. - Administrative expenses were approximately HKD 11,380,000, accounting for about 16.2% of revenue, compared to 17.5% in the previous year, indicating effective cost control measures[198]. Dividends and Shareholder Returns - The board does not recommend the payment of an interim dividend for the period[16]. - The company has not declared or proposed any dividends for the interim period, consistent with the previous year[147]. - The company plans to pay a special dividend of HKD 0.001 per share on March 25, 2024[131]. Taxation - The income tax credit for the period was HKD 30,390,000, compared to HKD 118,266,000 in the previous year, indicating a decrease of approximately 74.3%[110]. - The estimated corporate income tax rate in China is 25%, with a reduced rate of 5% applicable to a small micro-enterprise[111]. - The company has not incurred any taxable profits in Hong Kong during the reporting periods, resulting in no tax provisions being made[129].
锦艺集团控股(00565) - 2024 - 中期财报