HK FERRY (HOLD)(00050)2023-08-18 13:58Financial Performance - For the six months ended June 30, 2023, the company reported a profit of HKD 87,991,000, an increase of 35.4% compared to HKD 65,073,000 for the same period in 2022[3]. - The company's operating profit for the same period was HKD 83,885,000, up from HKD 76,766,000, reflecting a growth of 9.1%[3]. - Total comprehensive income for the period was HKD 92,677,000, compared to HKD 69,485,000 in the previous year, representing a year-on-year increase of 33.4%[7]. - Basic earnings per share increased to HKD 0.25 from HKD 0.18, marking a growth of 38.9%[3]. - The total profit before tax for the period was HKD 101,131,000, up from HKD 77,155,000 in the previous year, indicating a growth of around 31.0%[36]. - The group's unaudited consolidated net profit for the six months ended June 30, 2023, was HKD 88 million, a 35% increase compared to the same period in 2022[61]. - Earnings per share were HKD 0.25, up from HKD 0.18 in the previous year[61]. Revenue Growth - The group reported total revenue of HKD 242,896,000 for the six months ended June 30, 2023, compared to HKD 206,766,000 for the same period in 2022, representing an increase of approximately 17.5%[33]. - The real estate development segment generated revenue of HKD 27,617,000, while the real estate investment segment reported revenue of HKD 83,773,000, both showing growth compared to the previous year[33]. - The ferry, shipyard, and related businesses segment achieved revenue of HKD 69,801,000, an increase from HKD 57,638,000 in the prior year, indicating a growth of approximately 21.0%[33]. - The healthcare, medical beauty, and beauty services segment reported revenue of HKD 4,258,000, with no revenue reported in the previous year, marking a new revenue stream for the group[33]. - The securities investment segment generated revenue of HKD 7,719,000, up from HKD 1,189,000 in the previous year, reflecting a significant increase of approximately 548.0%[33]. - Total revenue for the six months ended June 30, 2023, was HKD 171 million, representing a 23% increase year-on-year, primarily due to increased interest income[71]. Asset and Equity Changes - As of June 30, 2023, total assets amounted to HKD 6,994,686,000, a decrease from HKD 7,303,688,000 as of December 31, 2022[9]. - The company's net equity attributable to shareholders decreased to HKD 6,910,665,000 from HKD 7,218,257,000, reflecting a decline of 4.3%[12]. - The company reported cash and bank balances of HKD 1,803,302,000, down from HKD 1,972,726,000, indicating a decrease of 8.6%[9]. - The company’s non-current assets totaled HKD 3,538,411,000, compared to HKD 3,627,506,000 at the end of 2022, showing a decline of 2.4%[9]. - As of June 30, 2023, the group's equity decreased by 4% to HKD 6.91 billion compared to December 31, 2022, primarily due to rental income recognition and property revaluation gains[79]. Liabilities and Financial Position - The company’s total liabilities decreased from HKD 1,085,431,000 to HKD 1,020,000,000, a reduction of approximately 6.0%[9]. - The group's current assets were HKD 3.757 billion and current liabilities were HKD 310 million, resulting in a current ratio of 12.5 times, a decrease attributed to increased trade and other payables[81]. - Trade receivables at the end of the reporting period amounted to HKD 56.7 million, compared to HKD 53.8 million at the end of 2022[57]. - Trade payables at the end of the reporting period were HKD 164.5 million, an increase from HKD 115.9 million at the end of 2022[59]. Segment Performance - Reported segment profit for real estate development was HKD 1,833,000, down from HKD 21,612,000 in the same period last year, representing a decrease of approximately 91.5%[36]. - Real estate investment segment profit increased to HKD 61,175,000 from HKD 51,404,000 year-on-year, marking a growth of about 19.5%[36]. - The profit from other segments surged to HKD 45,653,000 compared to HKD 8,581,000 in the previous year, reflecting a significant increase of approximately 431.5%[36]. - The group recorded a loss of HKD 3.9 million in the ferry, shipyard, and related businesses, compared to a loss of HKD 0.4 million in the same period last year[67]. - The company recorded a net loss of HKD (17,537,000) in the healthcare and beauty services segment, with no losses reported in the same period last year[36]. Future Outlook and Strategy - The company plans to continue focusing on market expansion and new product development to drive future growth[3]. - The group expects the Hong Kong economy to recover, driven by government initiatives to enhance competitiveness and attract talent and businesses[70]. - The group expects that the main revenue for the second half of the year will continue to come from rental income from shops and interest from bank deposits[77]. - The property market in Hong Kong is expected to be subdued in the second half of the year due to rising mortgage costs and limited opportunities for interest rate cuts by the Federal Reserve[76]. Accounting Policies and Compliance - The group has decided to change its accounting policies to comply with new guidelines from the Hong Kong Institute of Certified Public Accountants regarding the cancellation of the MPF-long service payment offset mechanism[23]. - The group is currently assessing the impact of the new accounting guidelines, but has not yet completed a full evaluation, making it difficult to estimate the effect on the interim financial report[23]. - The group has not adopted any new standards or interpretations that have not yet come into effect during the current accounting period, indicating a stable accounting approach[22]. - The group’s operations are primarily based in Hong Kong, and thus, no geographical segment information is provided, focusing on internal reporting for resource allocation and performance assessment[29].