Tern Properties : 2021/2022 Interim Report

STOCK CODE: 277

2 0 2 1 / 2 0 2 2 I N T E R I M R E P O RT

CORPORATE INFORMATION
BOARD OF DIRECTORS	REGISTERED OFFICE
Executive Directors	26th Floor, Tern Centre, Tower I
Chan Hoi Sow	237 Queen's Road Central
(Chairman and Managing Director)	Hong Kong
Chan Yan Tin, Andrew	SHARE REGISTRAR AND TRANSFER OFFICE
Chan Yan Wai, Emily
(Vice Chairman)	Computershare Hong Kong Investor
Chan Yan Lam, Alan	Services Limited
(appointed on 24 November 2021)	Shops 1712-1716, 17th Floor
	Hopewell Centre, 183 Queen's Road East
Non-Executive Director	Wan Chai, Hong Kong
Chan Yan Mei, Mary-ellen	COMPANY SECRETARY
Independent Non-Executive Directors	Lee Ka Man ACG, ACS
Chan Kwok Wai	AUDITOR
Cheung Chong Wai, Janet
Tse Lai Han, Henry	HLM CPA Limited
	Rooms 1501-8, 15/F, Tai Yau Building,
AUDIT COMMITTEE	181 Johnston Road,
Chan Kwok Wai	Wanchai, Hong Kong
(Chairman)	SOLICITORS
Cheung Chong Wai, Janet
Tse Lai Han, Henry	Woo, Kwan, Lee & Lo
REMUNERATION COMMITTEE	WEBSITE
Chan Kwok Wai	www.tern.hk
(Chairman)	STOCK CODE
Chan Yan Tin, Andrew
Tse Lai Han, Henry	277
NOMINATION COMMITTEE
Chan Kwok Wai
(Chairman)
Chan Yan Wai, Emily
Tse Lai Han, Henry
PRINCIPAL BANKERS
Credit Suisse Group AG
Hang Seng Bank Limited
Nanyang Commercial Bank, Ltd.
The Bank of East Asia, Limited

- 1 -

The Board of Directors of Tern Properties Company Limited (the "Company") announces that the unaudited condensed consolidated financial results for the Company and its subsidiaries (the "Group") for the six months ended 30 September 2021, together with the comparative figures for the corresponding period in the previous year are as follows:

CONDENSED CONSOLIDATED STATEMENT OF PROFIT OR LOSS AND OTHER COMPREHENSIVE INCOME

For the six months ended 30 September 2021

		Six months ended
		30 September
		2021		2020
	Notes	HK$'000	HK$'000
		(Unaudited)	(Unaudited)
Turnover	4	30,865		32,824
Property expenses		(641)	(871)
Gross profit		30,224		31,953
Fair value loss on investment properties		(9,200)	(87,300)
Realised loss on derecognition of debt instruments at
fair value through other comprehensive income		(9,657)	(2,814)
Realised (loss) gain on disposal of financial assets at fair
value through profit or loss		(1,026)	1,159
Unrealised (loss) gain on revaluation of financial assets
at fair value though profit or loss		(3,757)	2,251
Dividend income		723		306
Interest income		17,300		18,119
Other income, gains and losses, net		2,471		2,663
Administrative expenses		(14,865)	(14,451)
Profit (loss) from operations	5	12,213		(48,114)
Finance costs	6	(1,537)	(2,647)
Share of results of associates	13	(3,860)	(4,590)
Profit (loss) before taxation		6,816		(55,351)
Taxation	7	(2,805)	(3,872)
Profit (loss) for the period attributable to owners
of the Company		4,011		(59,223)

Other comprehensive income (expense):

Items that may be reclassified subsequently to profit or loss:

• Net (loss) gain arising on revaluation of debt
• instruments at fair value through other

		comprehensive income		(47,754)	43,155
Release on derecognition of debt instruments at
	fair value through other comprehensive income		46	8,765
Exchange differences arising on translation of
		foreign operations		(57)	-
Other comprehensive (expense) income for the period,
	net of tax		(47,765)	51,920
Total comprehensive expense for the period
attributable to owners of the Company		(43,754)	(7,303)
Earnings (loss) per share
	Basic and diluted	9	HK1.45 cents	(HK21.36 cents)

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CONDENSED CONSOLIDATED STATEMENT OF FINANCIAL POSITION

At 30 September 2021

			30 September	31 March
			2021	2021
		Notes	HK$'000	HK$'000
			(Unaudited)	(Audited)
Non-current assets
	Investment properties	10	2,217,420			2,226,650
	Property, plant and equipment	11	2,231			2,823
	Right-of-use assets	12	15,470			16,037
	Interests in associates	13	273,467			280,778
Debt instruments at fair value through other
	comprehensive income	14	279,367			418,408
	Financial assets at fair value through profit or loss	14	430			430
	Deferred rental income		490			559
	Deferred tax assets		99			88
			2,788,974	2,945,773
Current assets
	Trade and other receivables	15	15,317			15,059
Debt instruments at fair value through other
	comprehensive income redeemable within one year	14	10,941			24,073
	Financial assets at fair value through profit or loss	14	51,399			44,723
Deferred rental income - current portion		841			308
	Tax recoverable		1,415			1,313
	Pledged bank deposits		97,187			69,606
Bank balances and cash		86,284			89,453
			263,384	244,535
Current liabilities
Other payables and receipts in advance		7,255			7,958
Deposits received from tenants		15,801			14,523
	Tax payable		3,139			2,186
	Lease liabilities	16	793			1,047
	Secured bank borrowings - due within one year	17	9,004			14,836
			35,992	40,550
Net current assets		227,392			203,985
Total assets less current liabilities		3,016,366			3,149,758
Non-current liabilities
Deposits received from tenants		6,837			7,146
	Lease liabilities	16	-	266
	Secured bank borrowings - due after one year	17	144,625			228,685
	Deferred tax liabilities		32,126			31,307
			183,588	267,404
Net assets		2,832,778			2,882,354
Capital and reserves
	Share capital	18	229,386			229,386
	Reserves		2,603,392			2,652,968
Total equity		2,832,778			2,882,354

- 3 -

CONDENSED CONSOLIDATED STATEMENT OF CHANGES IN EQUITY For the six months ended 30 September 2021

								Fair value
								through
								other
							comprehensive
								income
			Share	Exchange	("FVTOCI")	Dividend	Retained
			capital	reserve		reserve	reserve	profits	Total
			HK$'000	HK$'000		HK$'000	HK$'000	HK$'000	HK$'000
At 1 April 2021 (Audited)	229,386	1,016	(2,021)	5,822	2,648,151	2,882,354
Profit for the period
-		-		-	-	4,011	4,011
Other comprehensive income (expense):
Net loss arising on revaluation of
	debt instruments at FVTOCI	-	-	(47,754)	-	-	(47,754)
Release on derecognition of debt
		instruments at FVTOCI	-	-	46	-	-	46
Exchange differences arising on
	translation of foreign operations	-	(57)		-	-	-	(57)
Total comprehensive income (expense)
	for the period	-		(57)	(47,708)	-	4,011	(43,754)
Dividends declared (note 8)
-		-		-	3,327	(3,327)	-
Dividends paid	-	-		-	(5,822)	-	(5,822)
At 30 September 2021 (Unaudited)	229,386		959	(49,729)	3,327	2,648,835	2,832,778
At 1 April 2020 (Audited)	229,386		-	(65,731)	7,485	2,792,360	2,963,500
Loss for the period	-		-		-	-	(59,223)	(59,223)
Other comprehensive income:
Net gain arising on revaluation of
	debt instruments at FVTOCI	-	-	43,155	-	-	43,155
Release on derecognition of debt
		instruments at FVTOCI	-	-	8,765	-	-	8,765
Total comprehensive income (expense)
	for the period	-		-	51,920	-	(59,223)	(7,303)
Dividends declared	-		-		-	4,158	(4,158)	-
Dividends paid	-	-		-	(7,485)	-	(7,485)
At 30 September 2020 (Unaudited)	229,386		-	(13,811)	4,158	2,728,979	2,948,712
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