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国华(00370) - 2024 - 中期财报
00370CHINA BEST(00370)2023-12-20 08:33

Revenue Performance - The Group's revenue for the first half of the financial year significantly decreased compared to the same period last year due to challenges in the real estate sector and trading business [12]. - Revenue from real estate-related services dropped considerably, reflecting the ongoing difficulties in the mainland China's real estate market [12]. - The company's turnover for the six months ended September 30, 2023, was HK283,956,000,asignificantincreasefromHK283,956,000, a significant increase from HK106,686,000 in the same period of 2022, representing a growth of 166% [20]. - Revenue from construction contracting services increased to HK110,974,000,upfromHK110,974,000, up from HK68,173,000, marking a growth of 63% [20]. - Data analytical service income rose to HK14,831,000,comparedtoHK14,831,000, compared to HK9,610,000, reflecting a growth of 54% [20]. - For the six months ended September 30, 2023, the Group's revenue from contracts with customers was HK100,695,000,adecreaseof63.6100,695,000, a decrease of 63.6% compared to HK276,903,000 for the same period in 2022 [69]. - The Group's total turnover for the period was HK106,686,000,down62.4106,686,000, down 62.4% from HK283,956,000 in the previous year [68]. - Revenue from data analytical services was HK9,610,000,adeclineof35.39,610,000, a decline of 35.3% from HK14,831,000 in the same period last year [68]. - Construction contracting services fee income was HK68,173,000,adecreaseof38.568,173,000, a decrease of 38.5% compared to HK110,974,000 in the previous year [68]. - The Group's heating supply and industrial steam income was HK11,862,000,down8.611,862,000, down 8.6% from HK12,981,000 in the prior year [68]. Financial Performance - The Group's loss for the period did not increase significantly compared to the corresponding period last year, thanks to cost control measures [12]. - Loss for the period attributable to owners of the company was HK40,845,000,comparedtoHK40,845,000, compared to HK37,303,000 in the previous year, showing an increase in loss of 7% [24]. - The company reported a loss before tax of HK39,491,000,comparedtoalossofHK39,491,000, compared to a loss of HK35,410,000 in the previous year, indicating a worsening of 11% [23]. - Total comprehensive expense for the period attributable to owners was HK61,295,000,downfromHK61,295,000, down from HK93,807,000, a decrease of 35% [24]. - The basic and diluted loss per share was HK2.39,comparedtoHK2.39, compared to HK2.21 in the previous year, indicating a decline of 8% [24]. - The Group's loss for the period was reported after finance costs totaling HK15,492,000,downfromHK15,492,000, down from HK20,753,000 in the previous year, reflecting a reduction of about 25% [132]. - The loss before tax for the six months ended September 30, 2023, was HK39,491,000,comparedtoalossofHK39,491,000, compared to a loss of HK35,410,000 for the same period in 2022, reflecting an increase in losses [114]. Cost Management - Strategies to strengthen the customer base, diversify product and service offerings, and intensify cost control will be continuously implemented [13]. - Administrative and other expenses decreased to HK22,888,000fromHK22,888,000 from HK27,108,000, a reduction of 15% [23]. - Staff costs were reduced to HK28,014,000fromHK28,014,000 from HK39,004,000, reflecting a decrease of 28% [23]. Capital and Financing - A rights issue was completed during the period to enhance capital and support future business development [12]. - The company issued rights shares amounting to HK90,594,000duringthereportingperiod,enhancingitscapitalbase[33].−ThenetproceedsfromtherightsissueamountedtoHK90,594,000 during the reporting period, enhancing its capital base [33]. - The net proceeds from the rights issue amounted to HK88,776,000, with no proceeds reported in the same period of 2022 [40]. - The company completed a rights issue of two shares for every five existing shares at a subscription price of HK0.16pershare,enhancingitscapitalstructure[137].MarketOutlook−TheGroupanticipatescontinuednegativeanduncertainmarketfactorsinthesecondhalfoftheyear,maintainingacautiousmanagementapproach[13].−TheoveralleconomicdevelopmentinmainlandChinaandHongKongremainsaffectedbyvariousfactors,withamodestreboundnotmeetingexpectations[12].AssetManagement−AsofSeptember30,2023,totalassetsamountedtoHK0.16 per share, enhancing its capital structure [137]. Market Outlook - The Group anticipates continued negative and uncertain market factors in the second half of the year, maintaining a cautious management approach [13]. - The overall economic development in mainland China and Hong Kong remains affected by various factors, with a modest rebound not meeting expectations [12]. Asset Management - As of September 30, 2023, total assets amounted to HK1,856,298, a decrease from HK1,894,159asofMarch31,2023[27].−CurrentliabilitiesdecreasedtoHK1,894,159 as of March 31, 2023 [27]. - Current liabilities decreased to HK933,417 from HK1,003,421,reflectingareductionofapproximately6.91,003,421, reflecting a reduction of approximately 6.9% [29]. - Net current assets increased significantly to HK265,779, up from HK138,179,indicatingagrowthofapproximately92.5138,179, indicating a growth of approximately 92.5% [29]. - Total equity rose to HK915,878, compared to HK890,395,markinganincreaseofabout2.9890,395, marking an increase of about 2.9% [29]. - Share capital increased to HK209,150 from HK152,529,representingagrowthofapproximately37.0152,529, representing a growth of approximately 37.0% [29]. - The company reported a significant increase in right-of-use assets to HK10,668 from HK3,716,ariseofapproximately187.53,716, a rise of approximately 187.5% [27]. - Investment properties decreased to HK114,039 from HK121,433,adeclineofabout6.1121,433, a decline of about 6.1% [27]. Cash Flow - For the six months ended September 30, 2023, net cash generated from operating activities was HK2,066,000, a significant improvement from a net cash used of HK38,501,000inthesameperiodof2022[38].−CashflowsfrominvestingactivitiesresultedinanetcashoutflowofHK38,501,000 in the same period of 2022 [38]. - Cash flows from investing activities resulted in a net cash outflow of HK16,923,000, compared to a net cash inflow of HK6,060,000intheprioryear[40].−ThecompanyreportednetcashgeneratedfromfinancingactivitiesofHK6,060,000 in the prior year [40]. - The company reported net cash generated from financing activities of HK83,692,000, an increase from HK60,293,000inthepreviousyear[40].−ThetotalcashandcashequivalentsattheendoftheperiodwereHK60,293,000 in the previous year [40]. - The total cash and cash equivalents at the end of the period were HK104,089,000, up from HK65,703,000attheendofthesameperiodlastyear[40].SegmentPerformance−TheGroup′sreportablesegmentsincludetradingofgoods,financeleasing,moneylending,andvariousservicesegmentssuchasprojectmanagementandtechnicalsupport[108].−Theconstructioncontractingsegmentrecognizesrevenueusingthepercentageofcompletionmethod,basedonincurredcostsrelativetoestimatedtotalcosts[91].−TheGroup′sprojectmanagementservicesrecognizerevenuewhenservicesarerendered,withreliableestimatesofincomeexpectedtobereceived[95].−TheGroup′srentalincomewasHK65,703,000 at the end of the same period last year [40]. Segment Performance - The Group's reportable segments include trading of goods, finance leasing, money lending, and various service segments such as project management and technical support [108]. - The construction contracting segment recognizes revenue using the percentage of completion method, based on incurred costs relative to estimated total costs [91]. - The Group's project management services recognize revenue when services are rendered, with reliable estimates of income expected to be received [95]. - The Group's rental income was HK3,174,000, a slight decrease from HK3,368,000inthepreviousyear[68].−Thecompanyisfocusingonsegmentperformanceevaluationandresourceallocationaspartofitsongoingoperationalstrategy[113].ImpairmentandGoodwill−TheimpairmentprovisionforgoodwillincreasedtoHK3,368,000 in the previous year [68]. - The company is focusing on segment performance evaluation and resource allocation as part of its ongoing operational strategy [113]. Impairment and Goodwill - The impairment provision for goodwill increased to HK78,801,000 as of September 30, 2023, compared to HK66,604,000asofApril1,2022,indicatinganincreaseofapproximately18.266,604,000 as of April 1, 2022, indicating an increase of approximately 18.2% [158]. - The carrying value of goodwill after impairment is HK251,194,000, down from HK255,626,000asofMarch31,2023,representingadecreaseofapproximately1.7255,626,000 as of March 31, 2023, representing a decrease of approximately 1.7% [158]. Loans and Receivables - As of September 30, 2023, total loans receivables amounted to HK409,706,000, a decrease of 2.0% from HK418,404,000asofMarch31,2023[192].−TheallowanceforimpairmentofloanandinterestreceivablesremainedunchangedatHK418,404,000 as of March 31, 2023 [192]. - The allowance for impairment of loan and interest receivables remained unchanged at HK126,069,000 as of both September 30, 2023, and March 31, 2023 [194]. - The total outstanding loans consisted of 15 loans, with 7 to individuals and 8 to corporations, maintaining the same number as of March 31, 2023 [196].