Financial Performance - For the six months ended June 30, 2023, the company recorded a loss attributable to shareholders of HKD 98.3 million, compared to a profit of HKD 87.8 million in the same period of 2022, representing a significant decline in performance [3]. - Revenue for the same period was HKD 23.5 million, a decrease of 97.7% from HKD 1,031.1 million in the previous year [2]. - The company's basic loss per share was HKD 1.13 cents, compared to a profit of HKD 1.01 cents per share in the prior year [2]. - The net asset value per share decreased by 12.5% to HKD 0.14 from HKD 0.16 [2]. - The decline in profit was primarily due to low profit levels from property sales in Tianjin and Chengdu, contrasting with higher profits from the Chengdu project in the previous year [3]. - The company reported a loss attributable to equity holders of HKD 98.3 million for the six months ended June 30, 2023, compared to a profit of HKD 87.8 million for the same period in 2022 [23]. - The net profit from property sales for the six months ended June 30, 2023, was HKD 4.3 million, significantly down from HKD 337.2 million in the same period of 2022, indicating a decline of approximately 98.7% [34]. - The group reported a total revenue of HKD 23.5 million for the six months ended June 30, 2023, compared to HKD 1,031.1 million in the same period of 2022, indicating a significant decline of approximately 97.7% [33]. - The income tax expense for the six months ended June 30, 2023, was HKD 33.8 million, a decrease of 72.6% compared to HKD 123.2 million in the same period of 2022 [36]. - The group did not declare or pay any dividends for the six months ended June 30, 2023, consistent with the previous year [38]. Market Outlook - The company remains optimistic about the long-term prospects of the Chinese real estate market and expects significant revenue from its remaining projects in Chengdu and Tianjin when market conditions improve [6]. - The overall performance of the Chinese real estate market remains sluggish, particularly in the office and commercial sectors, despite some initial recovery in early 2023 [5]. - New sales plans for the Tianjin project will be postponed until market conditions are more favorable [5]. Project Developments - The company has ongoing development projects in Chengdu and Tianjin, with a total of 192 office units and 5 retail units pre-sold or under consideration for purchase [5]. - The Chengdu project, with a total floor area of approximately 495,000 square meters, has generated total sales revenue of RMB 2,047,000,000 from residential units sold [8]. - In the Chengdu project, 3,965 square meters of commercial space have been sold or contracted for a total sales price of RMB 91,900,000, and 465 parking spaces have been sold for RMB 50,600,000 [8]. - The hotel within the Chengdu project, featuring 325 rooms, is expected to complete internal construction by the end of 2023, with phased openings planned thereafter [8]. - The Tianjin project, with a total floor area of approximately 145,000 square meters, has seen nearly all residential units sold, but sales of the commercial complex are progressing slowly [10]. - The Xinjiang project involves afforestation on approximately 4,300 mu of land, with plans for real estate development on a plot of about 1,843 mu pending government inspections [11]. Financial Position - As of June 30, 2023, the net asset value attributable to equity holders was HKD 1,230,600,000, equivalent to approximately HKD 0.14 per share [15]. - As of June 30, 2023, the company's total liabilities, excluding cash and bank deposits, amounted to HKD 1,361.2 million, an increase from HKD 1,113.6 million as of December 31, 2022 [19]. - The company's debt-to-asset ratio increased to 34.2% as of June 30, 2023, compared to 27.8% as of December 31, 2022 [19]. - The total cash and bank deposits, including time deposits, were HKD 110.9 million as of June 30, 2023, compared to HKD 81.6 million as of December 31, 2022 [19]. - As of June 30, 2023, total current liabilities decreased to HKD 1,355.2 million from HKD 1,518.6 million as of December 31, 2022, representing a reduction of approximately 10.7% [26]. - Current assets net value increased to HKD 2,357.4 million from HKD 2,189.3 million, reflecting a growth of about 7.7% [26]. - Non-current liabilities rose to HKD 1,396.7 million from HKD 1,071.2 million, indicating an increase of approximately 30.3% [26]. - Total equity decreased to HKD 1,230.6 million from HKD 1,410.7 million, a decline of about 12.7% [26]. Corporate Governance - The company announced a series of corporate proposals, including a share consolidation and bonus share issuance, aimed at maintaining at least 25% of its issued ordinary shares in public hands [4]. - The audit committee reviewed the financial statements for the six months ending June 30, 2023, which were unaudited but reviewed by external auditors [45]. - The company adhered to the corporate governance code as per the Hong Kong Stock Exchange rules, with the exception of the roles of chairman and CEO not being separated [46]. - The board of directors includes a mix of executive and independent non-executive members, with the chairman also serving as CEO [47]. Investment Activities - The company holds 6,069,000 shares of AMTD IDEA Group, which is expected to provide new business opportunities through strategic cooperation [12]. - The company plans to sell its 80% stake in a Chinese real estate company by the end of 2023, with an option to repurchase the stake at a later date [13]. - The company invested approximately HKD 122,100,000 in Interra Acquisition Corporation, aiming to diversify its investment portfolio [14]. - The company has extended the repayment date of a revised loan facility of HKD 857 million to October 12, 2024, to align with the sales progress of its development projects in Chengdu and Tianjin [17]. Accounting and Reporting - The company has adopted new and revised Hong Kong Financial Reporting Standards, which are expected to impact the annual consolidated financial statements but not the interim financial data [29]. - The business is classified into two segments: property development and investment, and financial asset investment, with performance monitored independently for resource allocation [31]. - Adjusted profit/(loss) before tax is measured excluding certain interest income and non-leasing related financing costs, ensuring a clear assessment of operational performance [31]. - The company has implemented changes in accounting policies that clarify the distinction between changes in accounting estimates and accounting policies, with no significant impact on financial status [30]. - Deferred tax assets and liabilities must be recognized for temporary differences arising from transactions, as per the revised accounting standards, with no major impact anticipated [30]. - The company is not within the scope of the OECD's Pillar Two rules, thus the recent amendments regarding deferred tax do not affect its financial reporting [30].
COSMOPOL INT'L(00120) - 2023 - 中期业绩