Workflow
信和置业(00083) - 2019 - 中期财报
00083SINO LAND(00083)2019-03-15 08:51

Financial Performance - Unaudited profit attributable to shareholders for the interim period ended December 31, 2018, was HKD 3.13 billion, compared to HKD 10.37 billion in the same period last year[6] - The previous interim period included a one-time gain of HKD 5.65 billion from the sale of an 80% stake in the Sino-Ocean Taikoo Li Chengdu property development project[6] - Excluding the one-time gain, the profit for the previous interim period was HKD 3.95 billion[6] - The interim period's profit included an investment property revaluation surplus (net of deferred tax) of HKD 865.4 million, compared to HKD 869.1 million in the previous interim period[6] - Basic profit attributable to shareholders, excluding the impact of investment property fair value changes, was HKD 2.37 billion for the interim period, compared to HKD 8.93 billion (restated) in the previous interim period[6] - Basic earnings per share for the interim period were HKD 0.47, compared to HKD 1.64 in the previous interim period[6] - Revenue for the six months ended December 31, 2018, was HKD 4,597,773,093, compared to HKD 3,927,930,833 in the same period in 2017[21] - Gross profit for the six months ended December 31, 2018, was HKD 2,223,796,752, down from HKD 2,331,050,422 in the same period in 2017[21] - Net profit attributable to shareholders for the six months ended December 31, 2018, was HKD 3,130,676,100, compared to HKD 10,366,603,116 in the same period in 2017[21] - Total comprehensive income for the six months ended December 31, 2018, was HKD 2,729,258,960, down from HKD 10,265,755,709 in the same period in 2017[22] - Property sales revenue increased to HKD 1,864,337,609, up 43.1% compared to HKD 1,302,961,192 in the previous year[59] - Total revenue from goods and services reached HKD 2,897,803,958, a 25.4% increase from HKD 2,310,276,601[59] - Property rental income rose to HKD 1,641,617,907, up 5.6% from HKD 1,554,926,706[59] - Interest income from receivable loans grew to HKD 32,979,195, a 22.4% increase from HKD 26,935,907[59] - Revenue from the Hong Kong market surged to HKD 3,869,098,815, a 70.2% increase from HKD 2,272,552,756[59] - Revenue from the China market decreased to HKD 198,723,010, down 82.6% from HKD 1,143,605,863[59] - Revenue from the Singapore market increased to HKD 529,951,268, up 3.6% from HKD 511,772,214[59] - Property sales revenue increased to HKD 2,146,518,631, up from HKD 1,548,909,532 in the previous year[61][62] - Property leasing revenue rose to HKD 2,107,787,295, compared to HKD 1,736,928,326 in the prior year[61][62] - Hotel operations revenue grew to HKD 704,581,285, up from HKD 298,026,967 in the previous year[61][62] - Total segment profit for the period was HKD 2,805,943,138, down from HKD 3,791,514,605 in the prior year[61][62] - Investment property fair value changes amounted to HKD 635,658,916, an increase from HKD 434,304,569 in the previous year[64] - Financial income net increased to HKD 265,517,457, up from HKD 196,335,151 in the prior year[64] - Interest income from bank deposits and loans to associates and joint ventures rose to HKD 292,808,582, compared to HKD 240,121,651 in the previous year[66] - Financial costs decreased to HKD 26,425,458, down from HKD 43,401,108 in the prior year[67] - Share of associates' investment property fair value changes was HKD 257,971,016, a decrease from HKD 504,615,243 in the previous year[68] - Share of joint ventures' investment property fair value changes was HKD 10,015,255, down from HKD 23,635,851 in the prior year[69] - Prepaid land lease amortization amounted to HKD 10,026,488 for the six months ended December 31, 2018[70] - Cost of property sales recognized as cost of sales was HKD 1,247,812,970 for the six months ended December 31, 2018[70] - Hotel inventory cost recognized as direct expenses was HKD 67,307,488 for the six months ended December 31, 2018[70] - Depreciation of property, plant, and equipment was HKD 41,398,467 for the six months ended December 31, 2018[70] - Hong Kong profits tax was HKD 211,148,786 for the six months ended December 31, 2018[70] - Overseas tax was HKD 86,154,219 for the six months ended December 31, 2018[70] - Deferred tax amounted to HKD 301,711,690 for the six months ended December 31, 2018[70] - Interim dividend declared was HKD 0.14 per share, totaling HKD 946,414,706 for the six months ended December 31, 2018[72] - Basic earnings per share were HKD 3,130,676,100 for the six months ended December 31, 2018[74] - Investment property fair value gain was HKD 635,658,916 for the six months ended December 31, 2018[77] Assets and Liabilities - The company's cash and bank deposits stood at HK26.5746billionasofDecember31,2018,withnetcashofHK26.5746 billion as of December 31, 2018, with net cash of HK22.3465 billion after deducting total borrowings of HK4.2281billion[15]−Thecompany′stotalassetsandtotalequitywereHK4.2281 billion[15] - The company's total assets and total equity were HK161.7386 billion and HK141.5949billion,respectively[15]−TotalassetsasofDecember31,2018,wereHKD161,738,595,068,comparedtoHKD159,107,395,674asofJune30,2018[23]−TotalequityasofDecember31,2018,wasHKD142,468,698,873,upfromHKD140,442,116,483asofJune30,2018[24]−Long−termbankborrowingsasofDecember31,2018,wereHKD3,651,221,167,comparedtoHKD1,656,000,000asofJune30,2018[24]−InvestmentpropertiesasofDecember31,2018,werevaluedatHKD63,716,634,160,upfromHKD62,712,904,952asofJune30,2018[23]−Thecompany′stotalequityasofDecember31,2018,wasHKD142,468,698,873,withadecreaseinexchangereservesofHKD379,063,578[25]−NetcashusedinoperatingactivitiesforthesixmonthsendedDecember31,2018,wasHKD36,721,464,asignificantimprovementfromHKD4,652,772,628inthesameperiodof2017[26]−CashandcashequivalentsdecreasedbyHKD1,061,950,635inthesixmonthsendedDecember31,2018,comparedtoadecreaseofHKD5,073,699,934inthesameperiodof2017[27]−Thecompany′scashandcashequivalentsbalanceasofDecember31,2018,wasHKD6,698,431,948,upfromHKD4,895,729,139attheendof2017[27]−NetcashfromfinancingactivitiesforthesixmonthsendedDecember31,2018,wasHKD1,750,103,245,comparedtoanetcashusedofHKD5,414,270,568inthesameperiodof2017[26]−Thecompany′sretainedprofitsasofDecember31,2018,wereHKD95,356,326,130,upfromHKD94,539,559,180attheendof2017[25]−NetcashusedininvestingactivitiesforthesixmonthsendedDecember31,2018,wasHKD2,775,332,416,comparedtoHKD4,993,343,262inthesameperiodof2017[26]−Thecompany′stotalcomprehensiveincomeforthesixmonthsendedDecember31,2018,wasHKD2,729,258,960,downfromHKD10,265,755,709inthesameperiodof2017[25]−Thecompany′stotalassetsasofDecember31,2018,wereHKD141,594,939,087,upfromHKD137,866,989,473attheendof2017[25]−Thecompany′snon−controllinginterestsasofDecember31,2018,wereHKD873,759,786,downfromHKD983,916,662attheendof2017[25]−Investmentinassociates′equityincreasedtoHKD21,757,244,162asofDecember31,2018,upfromHKD20,157,208,184asofJune30,2018[79]−Loanstoassociates(netofprovisions)decreasedtoHKD2,153,720,033asofDecember31,2018,downfromHKD2,858,796,861asofJune30,2018[79]−Investmentinjointventures′equityincreasedtoHKD3,320,590,241asofDecember31,2018,upfromHKD3,262,044,031asofJune30,2018[81]−LoanstojointventuresdecreasedtoHKD7,748,887,897asofDecember31,2018,downfromHKD10,843,649,095asofJune30,2018[81]−Tradereceivables(netofbaddebtprovisions)increasedtoHKD244,748,191asofDecember31,2018,upfromHKD205,530,033asofJune30,2018[83]−TradepayablesincreasedtoHKD156,498,771asofDecember31,2018,upfromHKD147,047,844asofJune30,2018[85]−ThecompanysecuredanewbankloanofHKD2,000,000,000duringthesixmonthsendedDecember31,2018[87]−Thecompanyissued157,043,742ordinarysharesatHK141.5949 billion, respectively[15] - Total assets as of December 31, 2018, were HKD 161,738,595,068, compared to HKD 159,107,395,674 as of June 30, 2018[23] - Total equity as of December 31, 2018, was HKD 142,468,698,873, up from HKD 140,442,116,483 as of June 30, 2018[24] - Long-term bank borrowings as of December 31, 2018, were HKD 3,651,221,167, compared to HKD 1,656,000,000 as of June 30, 2018[24] - Investment properties as of December 31, 2018, were valued at HKD 63,716,634,160, up from HKD 62,712,904,952 as of June 30, 2018[23] - The company's total equity as of December 31, 2018, was HKD 142,468,698,873, with a decrease in exchange reserves of HKD 379,063,578[25] - Net cash used in operating activities for the six months ended December 31, 2018, was HKD 36,721,464, a significant improvement from HKD 4,652,772,628 in the same period of 2017[26] - Cash and cash equivalents decreased by HKD 1,061,950,635 in the six months ended December 31, 2018, compared to a decrease of HKD 5,073,699,934 in the same period of 2017[27] - The company's cash and cash equivalents balance as of December 31, 2018, was HKD 6,698,431,948, up from HKD 4,895,729,139 at the end of 2017[27] - Net cash from financing activities for the six months ended December 31, 2018, was HKD 1,750,103,245, compared to a net cash used of HKD 5,414,270,568 in the same period of 2017[26] - The company's retained profits as of December 31, 2018, were HKD 95,356,326,130, up from HKD 94,539,559,180 at the end of 2017[25] - Net cash used in investing activities for the six months ended December 31, 2018, was HKD 2,775,332,416, compared to HKD 4,993,343,262 in the same period of 2017[26] - The company's total comprehensive income for the six months ended December 31, 2018, was HKD 2,729,258,960, down from HKD 10,265,755,709 in the same period of 2017[25] - The company's total assets as of December 31, 2018, were HKD 141,594,939,087, up from HKD 137,866,989,473 at the end of 2017[25] - The company's non-controlling interests as of December 31, 2018, were HKD 873,759,786, down from HKD 983,916,662 at the end of 2017[25] - Investment in associates' equity increased to HKD 21,757,244,162 as of December 31, 2018, up from HKD 20,157,208,184 as of June 30, 2018[79] - Loans to associates (net of provisions) decreased to HKD 2,153,720,033 as of December 31, 2018, down from HKD 2,858,796,861 as of June 30, 2018[79] - Investment in joint ventures' equity increased to HKD 3,320,590,241 as of December 31, 2018, up from HKD 3,262,044,031 as of June 30, 2018[81] - Loans to joint ventures decreased to HKD 7,748,887,897 as of December 31, 2018, down from HKD 10,843,649,095 as of June 30, 2018[81] - Trade receivables (net of bad debt provisions) increased to HKD 244,748,191 as of December 31, 2018, up from HKD 205,530,033 as of June 30, 2018[83] - Trade payables increased to HKD 156,498,771 as of December 31, 2018, up from HKD 147,047,844 as of June 30, 2018[85] - The company secured a new bank loan of HKD 2,000,000,000 during the six months ended December 31, 2018[87] - The company issued 157,043,742 ordinary shares at HK12.344 per share in lieu of cash dividends for the 2018 final dividend, compared to 133,807,481 shares at HK13.508pershareinthesameperiodof2017[88]−NoordinaryshareswererepurchasedontheHongKongStockExchangeinthesixmonthsendedDecember31,2018,whereas920,000shareswererepurchasedandcanceledinthesameperiodof2017[89]−Thecompany′snon−controllinginterestprovidedloanstotalingHK13.508 per share in the same period of 2017[88] - No ordinary shares were repurchased on the Hong Kong Stock Exchange in the six months ended December 31, 2018, whereas 920,000 shares were repurchased and canceled in the same period of 2017[89] - The company's non-controlling interest provided loans totaling HK14,678,959 with an annual interest rate of 6.25%, and HK1,446,513,682wasinterest−freeandhadnofixedrepaymentperiod[91]−Thecompanysold801,446,513,682 was interest-free and had no fixed repayment period[91] - The company sold 80% equity interest in a wholly-owned subsidiary, Sino Land (Chengdu) Co., Ltd., for RMB 8,767,500,000 (approximately HK10,510,000,000) in the six months ended December 31, 2017[92] - The fair value of listed equity securities classified as financial assets at fair value through profit or loss was HK9,869,657asofDecember31,2018[94]−Financialassetsmeasuredatfairvaluethroughothercomprehensiveincome(FVOCI)reclassifiedfromavailable−for−saleinvestmentsamountedtoHKD2,961,578asofJuly1,2018[97]−Totalbankborrowingssecuredbythecompany′sassetswereHKD34,469,000asofDecember31,2018,downfromHKD177,638,000asofJune30,2018[98]−ThetotalbookvalueofassetspledgedascollateralforborrowingswasHKD1,754,274,336asofDecember31,2018,slightlydownfromHKD1,761,551,516asofJune30,2018[99]−LoansandadvancestoassociatesandjointventuresincreasedsignificantlytoHKD9,775,956,000asofDecember31,2018,upfromHKD4,354,618,000asofJune30,2018[99]−ContingentliabilitiesrelatedtobankloanfinancingforassociatesandjointventurestotaledHKD7,939,172,631asofDecember31,2018,upfromHKD3,143,157,872asofJune30,2018[101]−Thecompany′sshareofutilizedbankloanfinancingforassociatesandjointventureswasHKD5,513,567,631asofDecember31,2018,morethandoubletheHKD2,462,157,872asofJune30,2018[101]−UnutilizedbankloanfinancingforassociatesandjointventuresincreasedtoHKD2,425,605,000asofDecember31,2018,upfromHKD681,000,000asofJune30,2018[101]−Thecompany′sinvestmentpropertieshadabookvalueofHKD249,896,625asofDecember31,2018,slightlyupfromHKD249,265,875asofJune30,2018[99]−HotelpropertieshadabookvalueofHKD785,980,724asofDecember31,2018,downfromHKD788,325,506asofJune30,2018[99]−PrepaidlandleasepaymentsdecreasedtoHKD718,396,987asofDecember31,2018,downfromHKD723,960,135asofJune30,2018[99]−Thecompany′stotaldebtattributabletoitsassociatesincreasedfromHKD18,441,447,484asofJune30,2018,toHKD22,743,349,236asofDecember31,2018[117]−Bankloansattributabletothecompany′sassociatesrosefromHKD2,462,157,872asofJune30,2018,toHKD6,195,403,219asofDecember31,2018[117]−ThecompanyprovidedloansamountingtoHKD16,547,946,017asofDecember31,2018,comparedtoHKD15,979,289,612asofJune30,2018[117]CorporateGovernanceandCommittees−ThecompanyhasestablishedvariouscommitteesincludingAuditCommittee,ComplianceCommittee,RemunerationCommittee,andNominationCommitteetoensurebestcorporategovernancepractices[16]−ThecompanyhasbeenaconstituentoftheHangSengCorporateSustainabilityIndexSeriessinceSeptember2012,reflectingitscommitmenttosustainabilityandcorporatesocialresponsibility[17]−ThecompanyissueditsfirstgreenloanundertheGreenFinanceFrameworktoinvestinsustainablebuildingprojects,enhancingenvironmentalbenefits[17]−TheTaiOHeritageHotel,operatedbythecompany,hashostedover1.2millionlocalandinternationalvisitorssinceitsopeninginMarch2012[17]−ThecompanyacknowledgesthecontributionsofMs.YipMoLin,whoservedontheboardforoversevenyears,uponherdepartureinFebruary2019[20]StrategicandMarketFocus−ThecompanyemphasizestheeconomictransformationofChinaoverthepast40years,shiftingfromaprimaryindustryeconomytoaserviceandinnovation−driveneconomy[18]−ThecompanyhighlightsthestrategicimportanceoftheGuangdong−HongKong−MacaoGreaterBayArea(GBA)development,aimingtointegrate11majorcitiesby2035[18]−ThecompanynotestheimpactoftheUS−Chinatradedisputeonglobaleconomicuncertaintyandfinancialmarketvolatility[18]−Thecompanyplanstoincreaserevenue,efficiency,andproductivitywhilemaintainingselectivestrategiesforlandreplenishmenttoenhanceprofitability[19]−Thecompany’srecurringbusinesses,includingpropertyleasing,hotelandcateringservices,andpropertymanagement,continuetoprovidestableincome[19]LandandPropertyDevelopment−Thecompany′slandreserveasofDecember31,2018,totaled21.7millionsquarefeet,with409,869,657 as of December 31, 2018[94] - Financial assets measured at fair value through other comprehensive income (FVOCI) reclassified from available-for-sale investments amounted to HKD 2,961,578 as of July 1, 2018[97] - Total bank borrowings secured by the company's assets were HKD 34,469,000 as of December 31, 2018, down from HKD 177,638,000 as of June 30, 2018[98] - The total book value of assets pledged as collateral for borrowings was HKD 1,754,274,336 as of December 31, 2018, slightly down from HKD 1,761,551,516 as of June 30, 2018[99] - Loans and advances to associates and joint ventures increased significantly to HKD 9,775,956,000 as of December 31, 2018, up from HKD 4,354,618,000 as of June 30, 2018[99] - Contingent liabilities related to bank loan financing for associates and joint ventures totaled HKD 7,939,172,631 as of December 31, 2018, up from HKD 3,143,157,872 as of June 30, 2018[101] - The company's share of utilized bank loan financing for associates and joint ventures was HKD 5,513,567,631 as of December 31, 2018, more than double the HKD 2,462,157,872 as of June 30, 2018[101] - Unutilized bank loan financing for associates and joint ventures increased to HKD 2,425,605,000 as of December 31, 2018, up from HKD 681,000,000 as of June 30, 2018[101] - The company's investment properties had a book value of HKD 249,896,625 as of December 31, 2018, slightly up from HKD 249,265,875 as of June 30, 2018[99] - Hotel properties had a book value of HKD 785,980,724 as of December 31, 2018, down from HKD 788,325,506 as of June 30, 2018[99] - Prepaid land lease payments decreased to HKD 718,396,987 as of December 31, 2018, down from HKD 723,960,135 as of June 30, 2018[99] - The company's total debt attributable to its associates increased from HKD 18,441,447,484 as of June 30, 2018, to HKD 22,743,349,236 as of December 31, 2018[117] - Bank loans attributable to the company's associates rose from HKD 2,462,157,872 as of June 30, 2018, to HKD 6,195,403,219 as of December 31, 2018[117] - The company provided loans amounting to HKD 16,547,946,017 as of December 31, 2018, compared to HKD 15,979,289,612 as of June 30, 2018[117] Corporate Governance and Committees - The company has established various committees including Audit Committee, Compliance Committee, Remuneration Committee, and Nomination Committee to ensure best corporate governance practices[16] - The company has been a constituent of the Hang Seng Corporate Sustainability Index Series since September 2012, reflecting its commitment to sustainability and corporate social responsibility[17] - The company issued its first green loan under the Green Finance Framework to invest in sustainable building projects, enhancing environmental benefits[17] - The Tai O Heritage Hotel, operated by the company, has hosted over 1.2 million local and international visitors since its opening in March 2012[17] - The company acknowledges the contributions of Ms. Yip Mo Lin, who served on the board for over seven years, upon her departure in February 2019[20] Strategic and Market Focus - The company emphasizes the economic transformation of China over the past 40 years, shifting from a primary industry economy to a service and innovation-driven economy[18] - The company highlights the strategic importance of the Guangdong-Hong Kong-Macao Greater Bay Area (GBA) development, aiming to integrate 11 major cities by 2035[18] - The company notes the impact of the US-China trade dispute on global economic uncertainty and financial market volatility[18] - The company plans to increase revenue, efficiency, and productivity while maintaining selective strategies for land replenishment to enhance profitability[19] - The company’s recurring businesses, including property leasing, hotel and catering services, and property management, continue to provide stable income[19] Land and Property Development - The company's land reserve as of December 31, 2018, totaled 21.7 million square feet, with 40% commercial, 36% residential, 11% industrial, 7% parking, and 6% hotel properties[8] - The company acquired a residential site in Hong Kong with a total gross floor area of 11,582 square feet during the mid-year period[9][10] - Two projects, Hei Yee and Hiu Yu, obtained "Certificates of Compliance" in November 2018 and January 2019, respectively, with a total gross floor area of 221,104 square feet[11] - The company's land reserve in Mainland China as of December 31, 2018, was 5.3 million square feet, with 4.3 million square feet under development[14] Rental and Hotel Operations - Total rental income increased by 4.8% to HK2.0975 billion, with net rental income rising by 4.7% to HK$1.8301 billion[