2021-09-14 08:34Financial Performance - The group recorded a core net loss of HKD 526 million, compared to a loss of HKD 11.32 billion in 2020[6]. - The group's revenue rose by 122% to HKD 12.337 billion, while operating profit increased by 71% to HKD 4.301 billion[16]. - Shareholders' profit reached HKD 1.038 billion, a significant recovery from a loss of HKD 17.414 billion the previous year[22]. - The basic earnings per share were HKD 0.34, compared to a loss of HKD 0.57 per share in the previous year[22]. - The total comprehensive income for the period was HKD 6.908 billion, compared to a loss of HKD 2.814 billion in 2020[40]. - The group recorded a net loss of HKD 5.263 billion, narrowing from HKD 11.32 billion the previous year after accounting for impairment provisions[15]. Revenue Breakdown - Revenue from Hong Kong properties increased to HKD 2.42 billion, with operating profit rising to HKD 682 million, primarily due to the profit recognition from the sale of properties at 77/79 Peak Road[8]. - Revenue from mainland China investment properties increased by 45% to HKD 2.67 billion, with operating profit up 50% to HKD 1.78 billion[10]. - The revenue from mainland property development increased to HKD 4.277 billion, with operating profit rising to HKD 714 million, although the margin dropped to 17% from 42%[16]. - The logistics segment saw a revenue increase of 13% to HKD 1.36 billion, with operating profit rising 43% to HKD 281 million[12]. - The investment properties segment generated revenue of HKD 2,746 million, with a profit contribution of HKD 2,427 million[49]. - Revenue from property sales reached HKD 6,704 million, up from HKD 1,176 million in the previous year, indicating a growth of 470%[51]. Expenses and Liabilities - The group recognized a total impairment provision of HKD 3.65 billion for mainland development properties due to increased development risks and slow sales[9]. - Tax expenses increased to HKD 1.426 billion, reflecting a 45% rise when excluding deferred tax items[21]. - The group’s total operating expenses amounted to HKD 1,717 million, impacting overall profitability[50]. - Interest expenses decreased to HKD 477 million from HKD 734 million in the previous year, a decline of 35%[55]. - The effective tax expense for the six months was HKD 1,426 million, compared to HKD 352 million in 2020, representing a significant increase of 304%[56]. Assets and Investments - Total assets increased to HKD 278,364 million as of June 30, 2021, compared to HKD 254,095 million at the end of 2020, representing a growth of 9.5%[41]. - The group holds a liquid listed investment portfolio with a total market value of HKD 73.6 billion, up from HKD 60.9 billion in 2020[34]. - Long-term investments totaled HKD 81.2 billion, up from HKD 66.9 billion in 2020, with a net gain of HKD 4.8 billion from market valuations[29]. - The company reported a total of HKD 73,567 million in listed investments as of June 30, 2021, compared to HKD 60,875 million as of December 31, 2020, marking an increase of about 20.9%[65]. Shareholder Information - The group declared an interim dividend of HKD 0.20 per share, totaling HKD 610 million, consistent with the previous year[7]. - The total equity attributable to shareholders increased to HKD 165,057 million from HKD 158,854 million, marking a growth of 3.9%[42]. - The company declared an interim dividend of HKD 611 million, compared to HKD 229 million in the previous year, reflecting a higher return to shareholders[42]. - The largest shareholder, CK Hutchison Holdings Limited, owns 1,829,207,551 shares, accounting for 59.87% of the total issued shares[89]. Operational Highlights - The group plans to continue expanding its hotel management portfolio, currently managing 17 hotels with over 5,000 rooms[11]. - The company employed approximately 6,700 staff as of June 30, 2021, with a performance-based bonus system in place[38]. - The company continues to evaluate its diversified investment portfolio, focusing on real estate and emerging economy companies[47]. - The group operates 17 hotels across Asia, with four owned by the company[47]. Cash Flow and Financing - The group recorded a net cash inflow of HKD 3.7 billion for the reporting period, compared to HKD 2 billion in 2020, with a significant decrease in working capital of HKD 9.2 billion[34]. - Financing activities generated a net cash inflow of HKD 18,815 million, a substantial increase from a net outflow of HKD 4,467 million in the previous year[44]. - The company incurred a net cash outflow from investing activities of HKD 8,925 million, up from HKD 4,813 million in the previous year, indicating increased investment activity[44]. Corporate Governance - The group has complied with all provisions of the Corporate Governance Code during the reporting period, except for one provision regarding the separation of the roles of Chairman and CEO[79]. - The company has not adopted any new accounting standards that are not yet effective for the current reporting period[46].