Financial Performance - The company reported a net loss of HKD 227.166 million for the six months ended June 30, 2023, compared to a net profit of HKD 119.339 million in the same period last year[16] - Total comprehensive expenses for the period amounted to HKD 369.518 million, with HKD 365.450 million allocated to the company's shareholders[9][11] - Revenue from customer contract rentals, interest, and dividend income was HKD 372.584 million, a slight decrease from HKD 376.776 million in the previous year[16] - The fair value loss on equity instruments recognized in other comprehensive income was HKD 6.959 million, compared to HKD 16.355 million in the prior period[5] - Exchange differences arising from the translation of foreign operations resulted in a loss of HKD 133.908 million, down from HKD 236.818 million in the previous year[7] - Total assets decreased to HKD 12.869 billion as of June 30, 2023, from HKD 14.308 billion at the end of the previous fiscal year[24] - Current liabilities rose to HKD 2.807 billion, compared to HKD 1.525 billion at the end of the previous fiscal year, primarily due to an increase in short-term borrowings[24] - The company's equity attributable to shareholders decreased to HKD 12.158 billion from HKD 12.599 billion at the end of the previous fiscal year[13] - Basic loss per share was HKD 0.61, compared to earnings per share of HKD 0.32 in the same period last year[16] - The company reported a net loss of HKD 27,382 thousand for the period, with a segment loss of HKD 197,391 thousand[49] - Investment property fair value loss amounted to HKD 235,929 thousand, significantly impacting the overall financial performance[49] - The company's basic loss per share was HKD 229,444 thousand, compared to a profit of HKD 119,497 thousand in the same period last year[70] - The group reported an unaudited consolidated loss of approximately HKD 227.2 million for the period ending June 30, 2023, a significant decline from a profit of HKD 119.3 million in the same period in 2022, primarily due to a shift from investment property fair value gains to losses[76] Revenue and Income - Total revenue for the six months ended June 30, 2023, was HKD 372,584 thousand, with customer revenue contributing HKD 145,745 thousand[49] - Gross rental income for the period ending June 30, 2023, was approximately HKD 145.7 million, a decrease of 7.1% compared to HKD 156.9 million in the same period in 2022[78] - The rental income from Chuangxing Plaza decreased by HKD 10.9 million to HKD 27.2 million, with an occupancy rate of 73% as of June 30, 2023[79] - Chuangxing Bank Centre generated rental income of approximately HKD 47.9 million, with a new lease agreement reducing monthly rent by 23.8% to HKD 6.08 million starting February 19, 2024[80] - The rental income from Shitangfang increased by HKD 2.7 million to HKD 6.2 million, with an occupancy rate of 67% as of June 30, 2023[83] - Fuhui Court generated rental income of approximately HKD 3.3 million, with a net rental income of HKD 1.7 million after rental offsets, and the property was fully leased as of June 30, 2023[84] - The company completed the acquisition of Barratt House, a commercial property in London, with a total area of 16,200 square feet, generating rental income of HKD 5,500,000 from the acquisition date to June 30, 2023, and achieving a 100% occupancy rate[87] - The company recorded sales revenue of HKD 54,900,000 for the period ending June 30, 2023, a 29% increase compared to HKD 42,600,000 in 2022, with 18 residential units and 49 parking spaces sold[97] - As of June 30, 2023, 99% of the 5,264 residential units (5,238 units) and 50% of the 4,670 parking spaces (2,331 spaces) were sold, generating cumulative sales revenue of approximately HKD 6 billion, with potential additional revenue of HKD 700 million from unsold properties[98] - Office rental income decreased by 14% to HKD 50.9 million in 2023 compared to HKD 59.1 million in 2022[109] - Budget hotel revenue increased from HKD 3.2 million in 2022 to HKD 5.5 million in 2023, driven by the full reopening of China's tourism industry[112] - Hotel and catering business total revenue decreased to HKD 37.4 million in 2023 from HKD 60.7 million in 2022, resulting in a net loss of HKD 32.1 million after depreciation[124] - Hotel total revenue reached HKD 47.7 million in 2023, with an EBITDA profit of HKD 15.2 million, exceeding budget expectations[126] - Joint venture performance increased from HKD 4.4 million in 2022 to HKD 9.1 million in 2023, driven by new property acquisitions and fair value gains[116] Investment Properties - The company's investment properties increased to HKD 9.582 billion, up from HKD 9.480 billion at the end of the previous fiscal year[24] - The overall occupancy rate of the company's major investment properties was maintained at 80% as of June 30, 2023[91] - The company's flagship property in Shanghai, located at 288 Nanjing West Road, offers over 516,000 square feet of office and commercial space with a 74% office occupancy rate and 100% retail unit occupancy rate as of the reporting date[93] - The company acquired a land plot in Foshan's Sanshui District for RMB 775,500,000 in 2019, with a total area of 33,670 square meters and a plot ratio of 3.2, offering 1,084 residential units and 874 parking spaces[100][102] - The company acquired four logistics centers in Japan and two commercial properties in Australia, with occupancy rates ranging from 94% to 100%[127] - In July 2023, the company invested in a new joint venture, acquiring 50% of Cromwell Italy Urban Logistics Fund, which holds seven logistics centers in Northern Italy[129] - The company provided a shareholder loan of EUR 7 million (approximately HKD 61.4 million) to the new joint venture, expecting additional benefits from portfolio expansion and geographic diversification[129] Dividends and Shareholder Information - The board declared an interim cash dividend of HKD 0.11 per share for 2023, down from HKD 0.18 per share in 2022[63] - The company declared an interim dividend of HKD 0.11 per share for 2023, compared to HKD 0.18 per share in 2022, representing a decrease of 38.9%[71] - The company's 2023 interim results report will be sent to shareholders and published on the company's website and the HKEXnews website around September 1, 2023[135] Tax and Financial Reporting - The company's tax expenses included HKD 2,832 thousand for Hong Kong profits tax and HKD 1,964 thousand for China enterprise income tax[68] - The company's deferred tax liability decreased by HKD 24,383 thousand, reflecting changes in tax provisions and estimates[68] - The company's financial statements are prepared in accordance with Hong Kong Financial Reporting Standards (HKFRS) and the Hong Kong Companies Ordinance, with no qualifications or emphasis of matter noted by the independent auditor[26][27][28] - The company has adopted new and revised HKFRS, including HKFRS 17 (Insurance Contracts) and amendments to HKAS 1, HKAS 8, and HKAS 12, effective from January 1, 2023, with no significant impact on financial performance or disclosures[37] - The company's financial statements are prepared on a historical cost basis, with certain properties and financial instruments measured at fair value where applicable[35] - The company's Chinese subsidiaries are subject to a corporate income tax rate of 25% under the PRC Enterprise Income Tax Law[42] - The company has no potential ordinary shares, and therefore, diluted earnings per share are not reported[44] - The company's financial statements are presented in Hong Kong dollars (HKD), with comparative figures extracted from the consolidated financial statements for the year ended December 31, 2022[27] - The condensed consolidated financial statements for the six months ended June 30, 2023, were reviewed by the company's auditor, Deloitte Touche Tohmatsu, in accordance with Hong Kong Standard on Review Engagements 2410[139] Operational and Strategic Updates - The company has identified a new geographical segment for property investment in the UK, which has been consolidated into the property investment segment[38] - The company's reportable segments under HKFRS 8 are: Property Investment, Property Development, Trade and Manufacturing, Property Management, and Hotel Operations[39][46] - The company's hotel business in Guangzhou continues to operate under the Hanting brand, with a new restaurant, "The Praya," opening on May 31, 2023, to enhance customer experience and loyalty[105][107] - The company invested in a hotel property in Koh Samui, Thailand, through the acquisition of Choengmon Real Estate Company Limited in 2021[108] - Management remains cautious about future investment opportunities while focusing on improving operational efficiency and asset value enhancement[130] - The company has substantially complied with the Corporate Governance Code as set out in Appendix 14 of the Rules Governing the Listing of Securities on The Stock Exchange of Hong Kong Limited, with certain exceptions[131] - All directors confirmed compliance with the Model Code for Securities Transactions by Directors of Listed Issuers as set out in Appendix 10 of the Listing Rules[132] - The Audit Committee reviewed the accounting policies and standards adopted by the group, discussed audit, internal control, and financial reporting, including the review of unaudited interim financial reports[139] Liabilities and Payables - The company's trade payables as of June 30, 2023, were HKD 9,034 thousand, a decrease from HKD 9,599 thousand as of December 31, 2022[60] - The company's construction costs and retention guarantees decreased to HKD 80,943 thousand from HKD 136,570 thousand in the previous period[60] - The company's investment property deposits received increased to HKD 133,420 thousand from HKD 130,582 thousand in the previous period[60]
廖创兴企业(00194) - 2023 - 中期业绩