新城市建设发展(00456) - 2023 - 中期财报

Financial Performance - Revenue for the six months ended June 30, 2023, was HK$90.483 million, compared to HK$78.032 million in the same period last year, representing a 15.9% increase[7] - Gross profit for the period was HK$41.908 million, up from HK$38.258 million in 2022, reflecting a 9.5% growth[7] - Operating profit improved significantly to HK$4.968 million, compared to HK$0.678 million in the previous year, marking a 632.7% increase[7] - Net loss attributable to the company's owners decreased to HK$8.655 million from HK$13.267 million, a 34.8% reduction[7] - Total revenue for the six months ended June 30, 2023, was HK$90.483 million, compared to HK$78.032 million in the same period last year, representing a 15.9% increase[27] - Revenue from time-based services, rental income, and related management services increased to HK$43.370 million from HK$39.500 million, a 9.8% year-over-year growth[27] - Revenue from product sales in mainland China's supermarket retail operations rose to HK$47.113 million from HK$38.532 million, a 22.3% increase[27] - Revenue for the six months ended June 30, 2023, was approximately HK$90,483,000, with a post-tax loss of approximately HK$8,026,000[74] - Total comprehensive income for the six months ended June 30, 2023, was a loss of HKD 15.589 million, compared to a loss of HKD 18.584 million in the same period in 2022[103][104] - The company reported a comprehensive pre-tax loss of HK$8.026 million in 2023, an improvement from the HK$13.722 million loss in 2022[127] - The company's basic loss per share for the six months ended June 30, 2023, was HK$0.0927, compared to HK$0.1586 for the same period in 2022[80] Assets and Liabilities - Total assets as of June 30, 2023, stood at HK$1,189.690 million, down from HK$1,255.492 million at the end of 2022, a 5.2% decrease[10] - Net current assets were HK$700.077 million, compared to HK$762.834 million at the end of 2022, a 8.2% decline[9] - Cash and cash equivalents at the end of the period were HK$8.102 million, down from HK$15.094 million at the end of 2022, a 46.3% decrease[17] - Total liabilities decreased slightly to HK$1,437.519 million from HK$1,442.068 million at the end of 2022, a 0.3% reduction[25] - The company's investment properties were valued at HK$833.125 million, down from HK$856.025 million at the end of 2022, a 2.7% decrease[6] - The company's total assets as of June 30, 2023, were approximately HK$1,945,144,000, with total liabilities of approximately HK$1,437,519,000[81] - Cash and bank balances as of June 30, 2023, were approximately HK$8,102,000, compared to HK$15,094,000 as of December 31, 2022[81] - Total assets minus current liabilities as of June 30, 2023, were HKD 1,697,316 thousand, down from HKD 1,778,704 thousand as of December 31, 2022[106] - Non-current liabilities as of June 30, 2023, included accrued expenses and other payables of HKD 383,614 thousand, borrowings of HKD 592,191 thousand, and deferred tax liabilities of HKD 213,885 thousand[107] - Equity attributable to the company's owners as of June 30, 2023, was HKD 529,022 thousand, down from HKD 544,188 thousand as of December 31, 2022[108][109] - The company has total bank loans of HKD 707,851,000 as of June 30, 2023, with HKD 115,660,000 due within one year[164] Investment Properties - The company's investment properties in Guangzhou and Luoyang had a total carrying value of HK$833.125 million as of June 30, 2023[37] - The carrying value of Guangzhou Property 1 decreased to HK$705.280 million from HK$724.416 million as of December 31, 2022[39] - The carrying value of Luoyang Property was HK$68.084 million as of June 30, 2023, compared to HK$69.931 million at the end of 2022[46] - The fair value of investment properties in Guangzhou (Guangzhou Property 1) was HK$705.280 million as of June 30, 2023, down from HK$724.416 million as of December 31, 2022[145] - The fair value of Guangzhou Property 2, which was used as collateral for bank loans, was HK$59.761 million as of June 30, 2023, down from HK$61.678 million as of December 31, 2022[150] Loans and Debt - The company is required to repay a total of RMB 27,660,000 (approximately HKD 30,481,000) in judgment debt, including interest accrued from July 1, 2002, to the payment date[53] - The company issued 136,060,042 shares at HKD 0.247 per share to repay HKD 33,606,830 owed to the subscriber[55] - The company signed a debt restructuring framework agreement with Beijing Zhongzheng to extend the settlement date of recoverable debts until February 4, 2023[56] - The company received loans totaling RMB 178,932,000 (approximately HKD 197,183,000) from Guangzhou Bank, with interest rates ranging from 7.0332$21.354 million in 2023 from HK$35.687 million in 2022, a 40.2$20.554 million in 2023 from HK$2.571 million in 2022, a 699.5$1.304 billion, slightly lower than the HK$1.318 billion as of December 31, 2022[126] - The company's main business activities include property development and investment, as well as supermarket retail operations in China[121] Cash Flow - Net cash generated from operating activities for the six months ended June 30, 2023, was HKD 118,779 thousand, compared to HKD 31,417 thousand in the same period in 2022[113] - Cash and cash equivalents as of June 30, 2023, were HKD 8,102 thousand, down from HKD 15,094 thousand as of December 31, 2022[114] - Cash flows from financing activities for the six months ended June 30, 2023, included repayment of borrowings of HKD 860 thousand and interest paid of HKD 20,000 thousand[118] Corporate Governance and Shareholding - The company's chairman also serves as the CEO, deviating from corporate governance guidelines that recommend separating these roles[92] - The company's issued and fully paid ordinary shares with a par value of HK$0.20 per share as of June 30, 2023, amounted to 200,000,000 shares, representing 40,000 units[167] - The company's issued and fully paid ordinary shares with a par value of HK$0.004 per share as of January 1, 2022, December 31, 2022, and January 1, 2023, amounted to 4,327,164,504 shares, representing 17,309 units[167] - The company's issued and fully paid ordinary shares with a par value of HK$0.20 per share as of June 30, 2023, amounted to 86,543,290 shares, representing 17,309 units[167] - Junyi Investment Limited holds 37,733,255 shares, representing 43.60% of the company's equity[191] - Qilu International Funds SPC, acting for and on behalf of Zhongtai Dingfeng Classified Fund SP, holds a security interest in 45,553,255 shares, representing 52.64% of the company's equity[191][192] - Zhongtai International Asset Management Co., Ltd. acts as the investment manager for the 45,553,255 shares held by Qilu International Funds SPC[191][192] - Zhang Xiaomu holds 14,246,575 shares, representing 16.46% of the company's equity[191] - As of June 30, 2023, no directors or the CEO and their associates had any interests or short positions in the company's shares or related shares that required notification under the Securities and Futures Ordinance[190] - As of June 30, 2023, no other individuals (excluding directors or the CEO) had any interests or short positions in the company's shares or related shares that required disclosure under the Securities and Futures Ordinance[193] - The audit committee, consisting of three independent non-executive directors, reviewed the accounting principles and practices adopted by the group and discussed internal controls and the condensed consolidated financial statements for the six months ended June 30, 2023[194] Subsidiaries and Investments - The company holds a 34% equity stake in Hong Kong New City Yongxing Medical Group, which plans to establish a wholly-owned subsidiary in Shanghai with a registered capital of RMB 1,000,000 (approximately HKD 1,102,000)[69] - The company's investment in listed company stocks in Taiwan had a market value of HKD 26,868,000 as of June 30, 2023[62] - The fair value of stock investments as of June 30, 2023, is determined based on market prices from the Taiwan Stock Exchange[163] - The company's subsidiary, Luoyang Wanheng Real Estate Co., Ltd., faces potential penalties of 0.1% of the land use right consideration (approximately RMB 31,270,000 or HK$34,459,540) per day if construction delays occur[169] - The company's subsidiary, Luoyang Wanheng Real Estate Co., Ltd., received a notice on November 17, 2016, requiring construction to begin within 15 days, with construction expected to start in June 2017[170] - The company's subsidiary, Luoyang Wanheng Real Estate Co., Ltd., submitted a revised construction plan to the Luoyang Planning Bureau on December 5, 2017, and received further instructions on June 23, 2018[170] - The company's subsidiary, Luoyang Wanheng Real Estate Co., Ltd., submitted the revised construction plan to the Luoyang New District Central Business District Planning and Construction Office on July 17, 2018[170] - The company's subsidiary, Luoyang Wanheng Real Estate Co., Ltd., received a notice on August 13, 2018, regarding adjustments to the address of the Luoyang property[170] - The company's subsidiary, Luoyang Wanheng Real Estate Co., Ltd., is negotiating with the Luoyang New District Central Business District Office to obtain official documents for the adjusted Luoyang property[170] - The company's subsidiary, Luoyang Wanheng Real Estate Co., Ltd., is applying for construction planning permits and construction engineering permits for the adjusted Luoyang property[170] Other Financial Information - Prepayments, deposits, and other receivables totaled HK$376.880 million as of June 30, 2023, up from HK$365.824 million at the end of 2022[49] - The company prepaid HK$316.584 million for Zhuhai Property construction as of June 30, 2023, compared to HK$323.547 million at the end of 2022[50] - The company recognized a fair value loss of HK$2.161 million on financial assets at fair value through profit or loss for the six months ended June 30, 2023[31] - The company's depreciation of property, plant, and equipment decreased to HK$4.522 million from HK$6.839 million in the same period last year[31] - The company's capital-to-debt ratio as of June 30, 2023, was 69%, unchanged from December 31, 2022[82] - Other income increased to HK$6.719 million in 2023 from HK$3.310 million in 2022, a 103% increase[127] - The company acquired property, plant, and equipment worth HK$57.787 million in the first half of 2023, slightly lower than the HK$59.331 million in the same period in 2022[140] - The company did not recommend the payment of an interim dividend for the period ended June 30, 2023, consistent with the previous year[137] - The company has prepaid approximately RMB 6,304,000 (equivalent to HKD 6,947,000) for the construction of Luoyang property as of June 30, 2023[158] - The company has paid an additional deposit of HKD 20,000,000 to New Century International Trade (Beijing) Co., Ltd. for future project investment opportunities[159] - The company faces potential penalties of 0.1% per day of the land use right cost (approximately RMB 31,270,000) for delays in the Luoyang property construction[154] - The company expects to commence construction of the Luoyang property by the end of 2017, citing changes in local government land policies as the reason for delays[155] - Share capital reorganization and change in board lot trading unit details were disclosed in announcements dated February 28, 2022, and April 7, 2022, and a circular dated March 18, 2022, with the reorganization effective from April 8, 2022[188] Operational Challenges - The company's main operating unit, Guangdong Changliu Investment Co., Ltd., saw a slight decrease in rental and related management service profits compared to the previous year[75] - The company's supermarket business in mainland China was severely affected by city lockdown policies due to COVID-19 in 2022[76] - The company is awaiting official documents for the change of address of its investment property in Luoyang, which is necessary for applying for construction permits[77] - The company employs approximately 63 staff in Hong Kong and mainland China, offering competitive compensation packages[93]