[Financial Highlights](index=1&type=section&id=Financial%20Highlights) [Financial Highlights](index=1&type=section&id=Financial%20Highlights) The Group reported strong H1 2025 operating results, with revenue up 13% and EBITDA up 63%, narrowing loss attributable to shareholders to HKD 289 million 2025 Interim Results Summary | Metric | 6 Months Ended June 30, 2025 | 6 Months Ended June 30, 2024 | Change | | :--- | :--- | :--- | :--- | | **Operating Revenue^ (HKD Million)** | 3,281 | 2,908 | 13% | | **Operating EBITDA^ (HKD Million)** | 643 | 395 | 63% | | **Loss Attributable to Shareholders (HKD Million)** | (289) | (448) | 35% (Loss Narrowed) | | **Basic Loss Attributable to Shareholders (HKD Million)** | (216) | (257) | 16% (Loss Narrowed) | | **Metric** | **As of June 30, 2025** | **As of December 31, 2024** | **Change** | | **Net Asset Value Per Share (HKD)** | 21.30 | 21.24 | – | | **Net External Debt to Total Assets Ratio** | 25% | 23% | +2pp | - Excluding the non-recurring income from the sale of London Peninsula residential apartments in the same period of 2024, the Group's consolidated operating revenue achieved a **robust 13% growth**[2](index=2&type=chunk) - The London Peninsula residential apartment project is progressing well, with **17 out of 24 units sold** as of June 30, 2025, and the remaining **6 units officially launched** to the market[2](index=2&type=chunk) - Loss attributable to shareholders narrowed from **HKD 448 million** in the prior year to **HKD 289 million**, primarily due to a reduction in unrealized revaluation losses on investment properties (from **HKD 139 million** to **HKD 61 million**)[2](index=2&type=chunk)[11](index=11&type=chunk) [CEO Review](index=3&type=section&id=CEO%20Review) [Business Performance](index=4&type=section&id=Business%20Performance) The Group's business segments, including Hotels, Commercial Properties, and Peak Tram, showed mixed performance, with strong international hotel and Peak Tram results offsetting weakness in Greater China [Hotels Segment](index=4&type=section&id=Hotels%20Segment) The Hotels segment's total revenue grew 14% year-on-year, driven by strong double-digit growth in New York, Tokyo, Paris, and London Peninsula hotels, while Greater China hotels saw revenue declines due to weak demand Hotel Revenue Performance (HKD Million) | Hotel | Revenue (HKD Million) | Year-on-Year Change (in HKD) | | :--- | :--- | :--- | | The Peninsula Hong Kong | 518 | – | | The Peninsula Shanghai* | 212 | -3% | | The Peninsula Beijing | 149 | -6% | | The Peninsula London | 373 | +12% | | The Peninsula Paris* | 426 | +23% | | The Peninsula Istanbul* | 206 | +36% | | The Peninsula New York | 348 | +54% | | The Peninsula Chicago | 286 | +6% | | The Peninsula Beverly Hills* | 341 | +9% | | The Peninsula Tokyo | 499 | +24% | | The Peninsula Bangkok | 121 | +18% | | The Peninsula Manila | 118 | +6% | - Following a major renovation completed in 2024, The Peninsula New York demonstrated strong performance in H1 2025, with revenue increasing by **54% year-on-year**[33](index=33&type=chunk) - The Peninsula Tokyo showed strong growth momentum, benefiting from international group business and the cherry blossom season, with Revenue Per Available Room (RevPAR) significantly increasing by **28% year-on-year**[41](index=41&type=chunk) - Due to weak demand in the Greater China region, The Peninsula Beijing's Revenue Per Available Room (RevPAR) decreased by **9% year-on-year**[23](index=23&type=chunk) [Commercial Properties Segment](index=11&type=section&id=Commercial%20Properties%20Segment) Commercial Properties recurring revenue grew 5%, with Hong Kong's Repulse Bay Complex and The Peak Tower outperforming, while St. John's Building revenue declined due to a weak office market, and Vietnam's The Landmark land use rights expire in January 2026 - Hong Kong's Repulse Bay Complex outperformed the previous year, with both residential revenue and occupancy rates improving[47](index=47&type=chunk) - Due to a weak and oversupplied Hong Kong office market, St. John's Building's H1 2025 revenue declined, with its occupancy rate falling to **78%**[49](index=49&type=chunk) - The joint venture and land use rights for The Landmark property in Vietnam will expire and dissolve in **January 2026**, with no possibility of extension[49](index=49&type=chunk)[50](index=50&type=chunk) [Peak Tram, Retail and Other Businesses Segment](index=13&type=section&id=Peak%20Tram%2C%20Retail%20and%20Other%20Businesses%20Segment) This segment's revenue grew 15% year-on-year, primarily driven by the Peak Tram business, which saw a 17% revenue increase and record passenger volume, with other businesses showing mixed growth Segment Business Revenue Performance (HKD Million) | Business | Revenue (HKD Million) | Year-on-Year Change | | :--- | :--- | :--- | | Peak Tram | 171 | +17% | | Quail Lodge Golf Club | 74 | +27% | | Peninsula Merchandising | 64 | +7% | | Tai Pan Laundry | 30 | -7% | - The Peak Tram business performed robustly, achieving a **record-high passenger volume** during the May Golden Week holiday, driving an increase in ticket sales[51](index=51&type=chunk) [Talent Development](index=14&type=section&id=Talent%20Development) The Group focuses on talent development and succession, with a new recruitment website increasing job applications by 25%, and a global full-time workforce of 7,698 employees at period-end - The Group launched a new recruitment website, successfully increasing job applications by **25%** and strengthening the company's talent pool[57](index=57&type=chunk) - As of June 30, 2025, the Group employed a total of **7,698 full-time staff**[58](index=58&type=chunk) [Valued Legacy (Sustainability)](index=14&type=section&id=Valued%20Legacy) The Group advances its 'Valued Legacy 2030 Vision' sustainability strategy, achieving BREEAM certification for new hotels, expanding renewable energy use, and raising USD 4.8 million for Turkiye earthquake relief - Both The Peninsula London and The Peninsula Istanbul received **'Excellent' certification** under the Building Research Establishment Environmental Assessment Method (BREEAM)[60](index=60&type=chunk) - To aid earthquake-affected areas in Turkiye, the Group's 'Hope for Turkiye' initiative, funded by allocations from global Peninsula hotel room revenues, successfully raised **USD 4.8 million** in donations[62](index=62&type=chunk) [Outlook](index=15&type=section&id=Outlook) The Group maintains a cautiously optimistic H2 outlook, expecting strong European and American hotel performance, but anticipating continued geopolitical and trade impacts in Greater China and Hong Kong, while focusing on prudent expense management - Business at The Peninsula Paris, Tokyo, Beverly Hills, and the newly renovated New York is expected to remain strong[63](index=63&type=chunk) - Geopolitical concerns and trade tensions are anticipated to continue adversely impacting the Group's hotels in Greater China[64](index=64&type=chunk) - The ongoing trend of Hong Kong residents traveling north to Shenzhen for consumption may affect the Group's food and beverage revenue in Hong Kong[64](index=64&type=chunk) - The Group will continue to prudently manage business expenses to navigate the weak market conditions[65](index=65&type=chunk) [Financial Review](index=17&type=section&id=Financial%20Review) [Financial Performance Summary](index=17&type=section&id=Financial%20Performance%20Summary) In H1 2025, the Group's consolidated operating revenue rose 13% to HKD 3.3 billion, and operating EBITDA grew 63% to HKD 643 million, with loss attributable to shareholders narrowing to HKD 289 million and available funds reaching HKD 3.5 billion - Excluding the impact of residential sales, consolidated operating revenue increased by **13% year-on-year**, primarily driven by significant revenue growth from The Peninsula New York, London, and Tokyo[71](index=71&type=chunk) - Basic loss attributable to shareholders narrowed from **HKD 257 million** in the prior year to **HKD 216 million**[72](index=72&type=chunk) - As of end-June 2025, the Group had unutilized credit facilities of **HKD 2.7 billion** and cash of **HKD 832 million**, totaling **HKD 3.5 billion** in available funds, indicating ample liquidity[73](index=73&type=chunk) [Adjusted Net Asset Value](index=18&type=section&id=The%20Group%27s%20Adjusted%20Net%20Asset%20Value) Adjusting hotels and golf courses to fair value would increase shareholders' net assets by 14% to HKD 40.402 billion, with adjusted net asset value per share at HKD 24.24 Adjusted Shareholders' Net Assets (HKD Million) | Item | As of June 30, 2025 | As of December 31, 2024 | | :--- | :--- | :--- | | Shareholders' Net Assets (Financial Statements) | 35,507 | 35,401 | | Adjustment of Hotels and Golf Courses to Fair Value | 4,895 | 4,632 | | **Adjusted Shareholders' Net Assets** | **40,402** | **40,033** | | **Net Asset Value Per Share (HKD)** | 21.30 | 21.24 | | **Adjusted Net Asset Value Per Share (HKD)** | **24.24** | **24.01** | [Basic Loss Attributable to Shareholders](index=18&type=section&id=The%20Group%27s%20Basic%20Profit%20or%20Loss%20Attributable%20to%20Shareholders) To reflect core operating performance, the Group's basic loss attributable to shareholders, excluding non-recurring items, improved to HKD 216 million for H1 2025 from HKD 257 million in the prior year Reconciliation of Basic Loss Attributable to Shareholders (HKD Million) | Item | H1 2025 | H1 2024 | | :--- | :--- | :--- | | Loss Attributable to Shareholders | (289) | (448) | | Add: Net Loss on Investment Property Valuation* | 73 | 153 | | Add: Non-recurring Expenses** | – | 38 | | **Basic Loss Attributable to Shareholders** | **(216)** | **(257)** | [Income Statement Analysis](index=19&type=section&id=Income%20Statement%20Analysis) Operating revenue grew 13% this period, driving a 63% increase in operating EBITDA, though total revenue declined 29% year-on-year; depreciation and amortization rose, and taxes increased, resulting in a 35% narrowed loss attributable to shareholders of HKD 289 million Key Income Statement Items (HKD Million) | Item | H1 2025 | H1 2024 | Change | | :--- | :--- | :--- | :--- | | Operating Revenue | 3,281 | 2,908 | 13% | | Operating EBITDA | 643 | 395 | 63% | | Residential Sales Revenue | – | 1,707 | Not Applicable | | Total EBITDA | 643 | 542 | 19% | | Depreciation and Amortization | (358) | (333) | (8%) | | Net Finance Costs | (362) | (366) | 1% | | Fair Value Loss on Investment Properties | (61) | (139) | 56% | | **Loss Attributable to Shareholders** | **(289)** | **(448)** | **35%** | - Depreciation and amortization expenses increased, primarily due to the completion of renovation works at The Peninsula New York in **2024**[80](index=80&type=chunk) - The increase in taxation was mainly due to improved profitability at The Peninsula Tokyo, Repulse Bay Complex, The Peak Tower, and The Peak Tram[80](index=80&type=chunk) [Statement of Financial Position Analysis](index=25&type=section&id=Statement%20of%20Financial%20Position%20Analysis) As of June 30, 2025, the Group's total assets were HKD 55.946 billion, shareholders' net assets HKD 35.507 billion, and net asset value per share HKD 21.30, largely stable, with fixed assets and interest-bearing loans increasing Statement of Financial Position Summary (HKD Million) | Item | As of June 30, 2025 | As of December 31, 2024 | Change | | :--- | :--- | :--- | :--- | | Fixed Assets | 49,399 | 47,864 | 3% | | **Total Assets** | **55,946** | **54,176** | **3%** | | Interest-Bearing Loans | (14,566) | (13,389) | (9%) | | **Total Liabilities** | **(20,390)** | **(18,730)** | **(9%)** | | **Shareholders' Equity** | **35,507** | **35,401** | **–** | - The total fair value of the Group's property assets is approximately **HKD 62.7 billion**, exceeding their carrying value of **HKD 54.1 billion** in the financial statements[103](index=103&type=chunk) [Cash Flow Statement Analysis](index=28&type=section&id=Cash%20Flow%20Statement%20Analysis) Net cash inflow from recurring operating activities reached HKD 366 million, a nine-fold increase from the prior year, driven by strong operating EBITDA; the Group continued project investments and successfully issued JPY 16 billion in private placement Samurai bonds - Net cash inflow from recurring operating activities, after deducting normal capital expenditure, was **HKD 366 million**, a significant increase from only **HKD 38 million** in the prior year (excluding residential sales)[108](index=108&type=chunk) - Total project-related cash outflow amounted to **HKD 331 million**, primarily for The Peninsula London development, capital injection into The Peninsula Istanbul, and The Peninsula New York renovation[108](index=108&type=chunk) - In June 2025, the Group successfully issued **JPY 16 billion** (approximately **HKD 869 million**) in private placement Samurai bonds, expanding its financing channels[109](index=109&type=chunk) [Treasury Management](index=29&type=section&id=Treasury%20Management) The Group maintains a robust financial position with HKD 2.7 billion in unutilized credit facilities and a 25% net debt to total assets ratio, while successfully issuing its first JPY 16 billion private placement Samurai bond and refinancing a GBP 425 million green syndicated loan, with 62% of committed credit facilities now green or sustainability-linked - The Group successfully issued its first **JPY 16 billion** private placement Samurai bond and completed refinancing for a **GBP 425 million** green syndicated loan, effectively expanding financing channels and extending debt maturity[111](index=111&type=chunk) - As of June 30, 2025, the Group's net external debt to total assets ratio remained at a **healthy 25%**[110](index=110&type=chunk) - The Group is committed to sustainable finance, with **62%** of its total committed credit facilities classified as green loans or sustainability-linked loans as of period-end[112](index=112&type=chunk) [Dividends](index=30&type=section&id=Dividends) The company's dividend policy aims for stable and sustainable dividends; however, due to the basic loss recorded for the period, the Board decided not to declare an interim dividend for H1 2025 - Given the basic loss recorded, the company did not declare or pay an interim dividend for the six months ended June 30, 2025 (H1 2024: nil)[116](index=116&type=chunk) [Consolidated Financial Statements](index=31&type=section&id=Consolidated%20Financial%20Statements) [Consolidated Income Statement and Consolidated Statement of Comprehensive Income](index=31&type=section&id=Consolidated%20Income%20Statement%20and%20Consolidated%20Statement%20of%20Comprehensive%20Income) For H1 2025, the Group recorded revenue of HKD 3.281 billion and a loss attributable to shareholders of HKD 289 million, with other comprehensive income of HKD 395 million, primarily from exchange gains, resulting in a positive total comprehensive income of HKD 106 million Income Statement and Comprehensive Income Statement Summary (HKD Million) | Item | H1 2025 | H1 2024 | | :--- | :--- | :--- | | Revenue | 3,281 | 4,615 | | **Loss for the Period** | **(289)** | **(448)** | | Other Comprehensive Income for the Period | 395 | 82 | | **Total Comprehensive Income for the Period** | **106** | **(366)** | [Consolidated Statement of Financial Position](index=33&type=section&id=Consolidated%20Statement%20of%20Financial%20Position) As of June 30, 2025, the Group's total assets were HKD 55.946 billion, total liabilities HKD 20.390 billion, and net assets HKD 35.556 billion, maintaining a robust financial position Statement of Financial Position Summary (HKD Million) | Item | As of June 30, 2025 | As of December 31, 2024 | | :--- | :--- | :--- | | **Total Assets** | **55,946** | **54,176** | | **Total Liabilities** | **20,390** | **18,730** | | **Net Assets** | **35,556** | **35,446** | | **Total Equity Attributable to Shareholders** | **35,507** | **35,401** | [Condensed Consolidated Cash Flow Statement](index=35&type=section&id=Condensed%20Consolidated%20Cash%20Flow%20Statement) For H1 2025, net cash inflow from operating activities was HKD 610 million, with net cash outflows from investing activities of HKD 571 million and financing activities of HKD 220 million, resulting in HKD 560 million cash and cash equivalents at period-end Cash Flow Statement Summary (HKD Million) | Item | H1 2025 | H1 2024 | | :--- | :--- | :--- | | Net Cash Inflow from Operating Activities | 610 | 1,853 | | Net Cash Outflow from Investing Activities | (571) | (731) | | Net Cash Outflow from Financing Activities | (220) | (1,259) | | **Net Decrease in Cash and Cash Equivalents** | **(181)** | **(137)** | | **Cash and Cash Equivalents at Period-End** | **560** | **560** | [Notes to the Financial Statements](index=36&type=section&id=Notes%20to%20the%20Unaudited%20Interim%20Financial%20Report) [Note 3: Segment Reporting](index=37&type=section&id=Note%203.%20Segment%20Reporting) The Group's business is managed across three segments: Hotels, Commercial Properties, and Peak Tram & Other Businesses, with Hotels as the largest revenue contributor at HKD 2.483 billion, Commercial Properties revenue decreasing, and Peak Tram & Other Businesses growing steadily Segment Revenue and Operating Profit (HKD Million) | Segment | Revenue (2025 H1) | Revenue (2024 H1) | Operating Profit (2025 H1) | Operating Profit (2024 H1) | | :--- | :--- | :--- | :--- | :--- | | Hotels | 2,483 | 2,174 | 115 | (98) | | Commercial Properties | 455 | 2,142 | 224 | 360 | | Peak Tram, Retail and Other Businesses | 343 | 299 | (54) | (53) | | **Consolidated** | **3,281** | **4,615** | **285** | **209** | [Note 9: Property, Plant and Equipment](index=43&type=section&id=Note%209.%20Investment%20Properties%2C%20Other%20Property%2C%20Plant%20and%20Equipment) During the period, the Group incurred HKD 202 million for London Peninsula development and HKD 102 million for Hong Kong Peninsula fixed assets; investment properties were revalued, resulting in a net loss of HKD 61 million due to Hong Kong property market decline - A net loss of **HKD 61 million** was recorded due to the revaluation of investment properties, which has been recognized in the consolidated income statement[139](index=139&type=chunk) [Note 17: Interest-Bearing Loans](index=49&type=section&id=Note%2017.%20Interest-Bearing%20Loans) As of June 30, 2025, the Group's total interest-bearing loans increased to HKD 14.566 billion, with HKD 9.15 billion repayable within one year, and the Group issued HKD 869 million (JPY 16 billion) in private placement Samurai bonds Interest-Bearing Loans Summary (HKD Million) | Item | As of June 30, 2025 | As of December 31, 2024 | | :--- | :--- | :--- | | Total Available Credit Facilities | 17,370 | 16,308 | | Amount Utilized | 14,591 | 13,420 | | **Total Interest-Bearing Loans (Recognized)** | **14,566** | **13,389** | [Note 20: Commitments](index=51&type=section&id=Note%2020.%20Commitments) As of June 30, 2025, the Group's total capital commitments significantly decreased to HKD 480 million, with HKD 95 million in contracted but unprovided commitments primarily for existing properties and major renovations Capital Commitments (HKD Million) | Item | Contracted | Authorized but Not Contracted | Total | | :--- | :--- | :--- | :--- | | Capital Commitments | 89 | 340 | 429 | | Share of Commitments in Joint Ventures and Associates | 6 | 45 | 51 | | **Total** | **95** | **385** | **480** | [Corporate Governance and Other Information](index=52&type=section&id=Corporate%20Governance%20and%20Other%20Information) [Corporate Governance and Risk Management](index=52&type=section&id=Corporate%20Governance%20and%20Risk%20Management) The Board confirmed the Group's compliance with the HKEX Corporate Governance Code in H1 2025, and its risk management and internal control systems were deemed effective and adequate, with no material issues found - The Company has complied with all code provisions and recommended best practices of the Corporate Governance Code for the six months ended June 30, 2025, with minor disclosed exceptions[160](index=160&type=chunk) - The Board reviewed and confirmed that the Group's risk management and internal control systems remained effective and adequate in H1 2025[161](index=161&type=chunk) [Other Information](index=53&type=section&id=Other%20Information) During the reporting period, neither the company nor its subsidiaries purchased, sold, or redeemed listed securities; all directors confirmed compliance with the securities dealing code, and no interim dividend was declared due to basic loss - Neither the company nor any of its subsidiaries purchased, sold, or redeemed the company's listed securities during the period[163](index=163&type=chunk) - Given the basic loss recorded by the company, the Board resolved not to declare an interim dividend for the six months ended June 30, 2025[165](index=165&type=chunk)

股份發行人及根據《上市規則》第十九B章上市的香港預託證券發行人的證券變動月報表 | 截至月份: | 2025年7月31日 | 狀態: 新提交 | | --- | --- | --- | | 致：香港交易及結算所有限公司 | | | | 公司名稱: | 香港上海大酒店有限公司 | | | 呈交日期: | 2025年8月1日 | | | I. 法定/註冊股本變動 不適用 | | | FF301 第 1 頁 共 10 頁 v 1.1.1 | 1. 股份分類 | 普通股 | 股份類別 | 不適用 | | 於香港聯交所上市 (註1) | 是 | | | --- | --- | --- | --- | --- | --- | --- | --- | | 證券代號 (如上市) | 00045 | 說明 | | | | | | | | | 已發行股份（不包括庫存股份）數目 | | 庫存股份數目 | | 已發行股份總數 | | | 上月底結存 | | | 1,666,939,850 | | 0 | | 1,666,939,850 | | 增加 / 減少 (-) | | | | | | | | | 本月底結存 | | | 1,6 ...

Core Viewpoint - The Hong Kong stock market has been performing well, prompting leading companies in various sectors, including the hotel industry, to accelerate their IPOs in Hong Kong, with Jin Jiang International Hotel Group aiming to become the first "A+H" dual-listed hotel group in China [2][3]. Industry Overview - The hotel industry is experiencing a dichotomy, with continuous expansion in scale but declining profitability. As of the end of 2024, China's accommodation facilities are projected to reach approximately 570,000, with a total room count of about 19.27 million, reflecting a 9% growth in hotel facilities and a 7% growth in room numbers [3]. - Despite the increase in hotel numbers, demand has not kept pace, leading to a supply-demand imbalance. Domestic travel is expected to reach 5.615 billion trips in 2024, a 14.8% increase year-on-year, but still only 93.49% of the 2019 level [3]. - The hotel industry is facing a decline in key operational metrics, with occupancy rates dropping to 58.8% (down 2.5% year-on-year) and average room prices decreasing by 5.8% to 200 yuan [3]. Company Performance - Jin Jiang Hotel reported a revenue decline of 4% to 14.063 billion yuan in 2024, with net profit decreasing by 9.06% to 911 million yuan. The RevPAR for Jin Jiang's full-service hotels saw a significant drop of 10.8% [4][10]. - The company operates 13,416 hotels with a total of 1,290,988 rooms, making it the largest hotel group in China and the second largest globally by room count [8][9]. Strategic Intent of IPO - The primary goals of Jin Jiang's IPO in Hong Kong include optimizing capital structure and reducing financial leverage by replacing high-interest debt with equity financing, thereby improving profit margins and balance sheet health [5]. - The IPO aims to deepen internationalization strategies, enhancing the company's recognition among global investors and facilitating future overseas acquisitions [5]. - The company seeks to improve its equity structure by attracting a more diverse range of international investors, enhancing liquidity and flexibility for future capital operations [5]. Challenges and Opportunities - The hotel industry is currently facing significant challenges, including supply-demand imbalances and price wars, which are unlikely to be resolved in the short term. This environment has made investors more cautious about hotel sector investments [7]. - Jin Jiang Hotel's performance in the domestic market has been under pressure, with revenue and profit declines expected to continue into 2025 [10]. - The company has faced difficulties in its overseas expansion, particularly in Southeast Asia, where cultural differences have hindered effective management and resource integration [12]. Market Reception - The market's response to Jin Jiang's IPO remains uncertain, with concerns about whether the company can effectively address its existing issues and enhance its competitiveness post-listing [6][13]. - The company's stock performance in the A-share market has been lackluster, with a current price of 22.21 yuan and a TTM P/E ratio of 31.35, indicating cautious market sentiment [13][14].

Core Viewpoint - Lihua Hotel has signed a strategic cooperation agreement with Shanxi Xinjinshang Winery Group to manage the Fenxing Hotel, aiming to develop it into a business resort brand in Shanxi [1][3][5]. Group 1: Strategic Cooperation - The partnership will leverage Lihua Hotel's management expertise and the unique resources of Fenxing Hotel, including its geographical location and cultural heritage, to enhance service quality and brand influence [3][6]. - The collaboration is part of Lihua Hotel's strategy to explore brand operation models in different locations, following its initial management output project with Yanmenguan Wangjiu Fort [5][11]. Group 2: Company Background - Shanxi Xinjinshang Winery Group, established in 2009, has evolved from the Fenxing Distillery founded in 1979, becoming a comprehensive group involved in winery operations, hotel management, and cultural promotion [5][6]. - Lihua Hotel, operational since 2008, is a key government reception hotel in Shanxi, recognized as a five-star and green hotel, with projected revenue of 289 million yuan for 2024 [6][7]. Group 3: Industry Context - The hotel industry is facing a downturn, with average occupancy rates dropping from 61.31% in 2023 to 58.81% in 2024, and average daily rates (ADR) decreasing from over 210 yuan to 199.92 yuan [7]. - In response to industry challenges, Lihua Hotel has initiated a light asset development strategy, focusing on brand building and operational management to mitigate risks associated with fixed asset investments [11].

Core Viewpoint - Guangsheng Real Estate has been committed to innovative, coordinated, green, open, and shared development concepts, actively participating in urban construction in Guangzhou and enhancing the public cultural space along the Pearl River [1] Group 1: Hotel Renovation and Design - The Kai Xuan Ramada Hotel has implemented a "Green Beauty Enhancement" project, transforming its design to integrate ecological greenery and scenic views, creating a multifunctional "green" square for various activities [2] - The hotel has upgraded its public areas and parking facilities, introducing a new entrance and a public square while ensuring privacy and enhancing service quality to attract visitors [3] Group 2: Cultural and Community Engagement - The hotel features a food market in the newly established southern square, promoting community engagement and cultural exchange [6] - An artistic installation named "Kai Xuan Red Ribbon," inspired by traditional Chinese culture, has been set up to connect the hotel with guests, symbolizing warmth and quality service [7]

Financial Performance - Total revenue for 2024 reached HKD 10,991 million, a 26% increase from HKD 8,703 million in 2023[111] - Operating profit increased by 31% to HKD 760 million, compared to HKD 578 million in the previous year[111] - The company reported a net loss attributable to shareholders of HKD 943 million, compared to a profit of HKD 146 million in 2023[111] - The group recorded EBITDA of HKD 1,525 million for 2024, representing a 9% year-on-year increase from HKD 1,213 million in 2023[114] - Total revenue from the hotel segment increased by 19% to HKD 5,681 million, despite a significant drop in revenue from the New York Peninsula Hotel due to renovations[114] - The commercial property segment's revenue rose by 40% to HKD 4,340 million, with income from the sale of luxury London Peninsula residential apartments contributing HKD 3,452 million, up from HKD 2,298 million in 2023[115] - The group reported a basic loss attributable to shareholders of HKD 176 million for the year ending December 31, 2024, compared to a profit of HKD 277 million in 2023[164] - The total assets decreased to HKD 54,176 million in 2024 from HKD 57,869 million in 2023, reflecting a decline of 3%[131] - The net external debt to total assets ratio improved to 23% in 2024 from 26% in 2023[131] - The cash interest coverage ratio improved to 1.9x in 2024 from 1.3x in 2023, indicating better financial health[131] Sustainability and Corporate Responsibility - Ten Peninsula hotels received EarthCheck certification, highlighting the company's achievements in environmental sustainability and social responsibility[72] - The company emphasizes its commitment to sustainable development through detailed reporting in its annual and corporate responsibility reports[3] - The company achieved a 17.9% reduction in energy density compared to the 2010 baseline after implementing energy optimization measures[112] - The water usage density improved by 5.5% compared to the 2010 baseline[112] - The company contributed a total of HKD 11 million to community initiatives, with over 11,300 hours of volunteer work[112] - The company aims to obtain EarthCheck certification for all 12 Peninsula hotels[112] - The Peninsula Hotels in London and Istanbul received the BREEAM Excellent certification, reflecting the company's commitment to sustainable development[182] Management and Leadership Changes - Keith Robertson joined the company as Executive Director and Chief Financial Officer, also becoming a member of the Finance Committee and Group Management Board[65] - The company has appointed a new Chief Operating Officer, Mr. Luo Ruisi, who has over 22 years of experience with the company[194] - The company expresses gratitude to outgoing CEO Mr. Guo Jingwen for his 23 years of outstanding contributions[194] - The company acknowledges the contributions of Mr. Bao Hua, who served for 43 years, in establishing the brand's hospitality standards[194] Employee Engagement and Workforce - The total number of full-time employees as of December 31, 2024, was 7,836, an increase from 7,695 in 2023[129] - The global employee experience survey conducted in September 2024 showed a participation rate of 91% and an engagement score of 77%, exceeding the global average[173] - The company received 80,000 job applications in 2024, successfully hiring over 430 employees through campus recruitment initiatives[177] - The company aims to launch an enhanced employment opportunities webpage in Q1 2025 to attract new talent[177] - The company emphasizes long-term future planning and values employee retention and recruitment as key to providing quality service[191] Operational Developments - The company launched a new communication platform, MyHSH Hub, for global employees to enhance internal communication and facilitate daily operations[61] - The company completed significant renovations at the New York Peninsula Hotel in 2024, enhancing its luxury offerings[135] - The Peninsula London Hotel had a grand opening in June 2024, marking a key milestone for the company[134] - Two new Peninsula hotels in London and Istanbul commenced full operations in 2024, receiving multiple industry accolades and enhancing the company's brand recognition in Europe[148] - The New York Peninsula Hotel will complete a significant internal design renovation by September 2024, including 219 guest rooms and suites[158] Market and Strategic Focus - The company is focusing on maintaining financial stability amidst various risks, including geopolitical uncertainties and climate change[135] - The company is optimistic about the recovery of the long-haul leisure travel market in Hong Kong, particularly from Southeast Asia and the Middle East[186] - The company anticipates continued growth in the Japanese market due to high demand for exclusive services and accommodations[190] - The company is exploring new opportunities in experiential tourism, expanding the Peninsula Signature Experiences division into Asia[190] - The company is focusing on enhancing brand awareness in existing and emerging markets through global promotional activities, including the "Peninsula Perspectives" campaign[166] Real Estate and Asset Management - The company operates a total of 12 Peninsula hotels, with varying ownership percentages, including 100% ownership of the Hong Kong Peninsula Hotel and 50% ownership of the Istanbul Peninsula Hotel[20][28] - The company has a total of 1,058,455 square feet of commercial property in Hong Kong, demonstrating its significant real estate holdings[37] - The fair value loss on investment properties was HKD 569 million, primarily due to a decline in the assessed market value of the Repulse Bay integrated project and St. John's Building[123] - The company has assessed the recoverable value of the Yangon Peninsula Hotel, resulting in an impairment provision of HKD 158 million due to the project's ongoing suspension since June 2021[159] Future Planning and Vision - The company is committed to its "Prestige Legacy 2030 Vision," emphasizing environmental, social, and governance initiatives[136] - The company aims to stabilize the financial performance of new hotels, reduce borrowing, and enhance revenue and profitability in the short to medium term[144] - The company plans to implement a succession planning framework in Q1 2025 to ensure a strong talent pool for long-term development[178] - The company is committed to continuous improvement and becoming a more agile organization[191] - The company expresses confidence in a prosperous future ahead[194]

Financial Performance - Total revenue for the year 2024 reached HKD 10,991 million, a 26% increase from HKD 8,703 million in 2023[2] - Comprehensive income for 2024 was HKD 10,290 million, up 27% from HKD 8,112 million in 2023[2] - Adjusted EBITDA increased by 10% to HKD 1,525 million compared to HKD 1,390 million in 2023[2] - The group recorded a net loss attributable to shareholders of HKD 943 million, compared to a profit of HKD 146 million in 2023[2] - Basic loss per share was HKD (0.57), compared to earnings of HKD 0.09 per share in 2023[2] - Operating profit rose by 31% to HKD 760 million in 2024 compared to HKD 578 million in 2023[3] - The company recorded a pre-tax operating cash flow of HKD 4,564 million in 2024, up from HKD 3,435 million in 2023[3] - The group recorded a total EBITDA of HKD 1,643 million for 2024, representing a 9% year-on-year increase to HKD 1,325 million excluding the sale of the London Peninsula residential apartments[125] - The overall EBITDA margin for 2024 was 18%, down from 19% in 2023, excluding the London Peninsula residential apartments[126] - The group reported a gross profit margin of 65.1% for 2024, compared to 69.9% in 2023, reflecting increased costs[168] Debt and Financial Ratios - The group's net external debt to total assets ratio improved to 23%, down from 26%[2] - Cash interest coverage ratio improved by 46% to 1.9x in 2024 from 1.3x in 2023[3] - The company's net debt to total assets ratio is 23%, which is considered acceptable, and there is an intention to reduce the debt ratio as business normalizes[21] - The group's net debt decreased to HKD 12,494 million in 2024 from HKD 15,033 million in 2023, a reduction of approximately 16.8%[144] - The cash interest coverage ratio improved to 1.87 times in 2024, compared to 1.34 times in 2023, reflecting better financial stability[156] Revenue Sources - Revenue growth was primarily driven by the full-year contribution from The Peninsula Hotel in London, which generated HKD 3,452 million in revenue[2] - Revenue from residential sales reached HKD 3,452 million in 2024, a significant increase of 50% from HKD 2,298 million in 2023[100] - Revenue from the hotel segment increased by 19% to HKD 4,980 million, while commercial property revenue grew by 40% to HKD 4,340 million[104] - The hotel segment generated revenue of HKD 4,980 million in 2024, up from HKD 4,174 million in 2023, reflecting a year-over-year increase of about 19%[175] - The commercial property segment's revenue rose to HKD 4,340 million in 2024, a 39.5% increase from HKD 3,110 million in 2023[182] Impairments and Losses - The group incurred an impairment provision of HKD 158 million for the investment in The Peninsula Hotel in Yangon[2] - The group recorded a revaluation loss of HKD 569 million on investment properties[2] - The group recognized an impairment provision of HKD 158 million for the Yangon Peninsula Hotel due to ongoing development delays since June 2021[131] - The group recorded a shareholder's loss of HKD 943 million, compared to a profit of HKD 146 million in the previous year, influenced by a property revaluation loss of HKD 569 million and an impairment provision of HKD 158 million[91] Operational Developments - The company aims to stabilize the financial performance of new hotels and reduce debt while enhancing revenue and profitability[6] - The company operates 12 Peninsula hotels in major cities including Hong Kong, Shanghai, and New York, with new openings in London and Istanbul in 2024[10] - The company has invested significantly in upgrading existing properties, with a focus on enhancing asset quality and customer service[12] - The company has completed a major upgrade of the Peak Tram, which has seen visitor numbers exceed pre-pandemic levels in 2024[15] - The company is focused on risk management, regularly reviewing operational risks and monitoring potential threats in various markets[29] Market Outlook - The company anticipates a steady performance in 2024 compared to the satisfactory results of 2023[6] - The company is optimistic about the hotel business outlook in Asia, particularly in Japan, Beijing, and Shanghai markets[40] - The company plans to launch a new employment opportunities webpage in Q1 2025 to attract the next generation of talent[33] - The company anticipates a stable business outlook for the upcoming year, with a focus on personalized luxury experiences to drive growth in the global luxury travel sector[39] Employee Engagement and Development - Global employee engagement survey participation rate reached 91%, with an engagement score of 77%, exceeding the global average[31] - Over 6,100 employees utilized the internal communication platform MyHSH Hub, facilitating more than 84,000 interactions and over 1,670 articles published in its first year[32] - The company received 80,000 job applications in 2024, successfully hiring over 430 employees through campus recruitment initiatives[33] - The company emphasizes a strong corporate culture and continuous investment in employee development[12] Sustainability and Corporate Responsibility - The company achieved BREEAM excellent certification for its London and Istanbul Peninsula hotels, aiming for EarthCheck certification[36] - The company is committed to its "2030 Vision" strategy, focusing on sustainable development and climate risk mitigation[37] - The company initiated a charitable campaign "Hope for Los Angeles," donating $5 for every room booked to support wildfire survivors[73] Property and Asset Management - The total market value of the group's properties increased to HKD 60,508 million in 2024 from HKD 52,363 million in 2023, representing a growth of approximately 15.5%[136] - The total value of hotel properties, including the Peninsula hotels, was HKD 38,185 million in 2024, up from HKD 30,235 million in 2023, representing a significant increase of 26.4%[136] - The group holds a 50% stake in the Shanghai Peninsula Hotel project, which includes the hotel, retail space, and adjacent apartments, with no sales of apartments recorded during the year[127] - The group’s investment properties experienced an unrealized revaluation loss of HKD 569 million, primarily due to declines in the valuation of the Shallow Water Bay project and St. John's Building[130] Future Plans and Strategies - The company plans to expand its retail business by opening new concept stores and enhancing online retail operations in mainland China and Japan[14] - The company is exploring new dining and retail service options at The Peak to enhance its appeal as a tourist destination[81] - The group plans to continue its market expansion and product development, particularly in luxury residential properties and commercial real estate[102]

财联社12月24日电，据一位知情人士透露，世茂集团已下调香港机场附近一家喜来登品牌酒店的要价， 降幅达四分之一。 世茂以开发五星级酒店为标志性项目而闻名，该酒店于2020年开业。 这位因讨论未公开议题而要求匿名的人士表示，世茂寻求以至少45亿港元（5.79亿美元）的价格，出售 位于东涌的这栋楼高18层房产。 (彭博) ...

[Company Overview](index=4&type=section&id=Company%20Overview) [Portfolio Overview](index=4&type=section&id=Portfolio%20Overview) The Hongkong and Shanghai Hotels, Limited is a global luxury hotel, commercial, and residential property group, with core assets including 12 Peninsula Hotels worldwide, premium commercial properties in locations like Hong Kong and Vietnam, and club and services businesses such as The Peak Tram and golf clubs - The Group's core business involves owning and managing **12 Peninsula Hotels** globally, located across Asia, the Americas, and Europe[5](index=5&type=chunk)[58](index=58&type=chunk) Major Business Segments and Assets | Business Segment | Key Assets | | :--- | :--- | | **Hotels** | The Peninsula Hong Kong, The Peninsula Shanghai, The Peninsula Beijing, The Peninsula Tokyo, The Peninsula London, The Peninsula Istanbul, and 6 other hotels | | **Commercial Properties** | The Repulse Bay Complex (residential and retail), The Peak Tower (retail), St. John's Building (office), The Landmark (Vietnam, office and residential), etc | | **Clubs and Services** | The Peak Tram (Hong Kong), Quail Lodge & Golf Club (California, USA), Peninsula Merchandising, Tai Pan Laundry, etc | [Financial and Operational Review](index=8&type=section&id=Financial%20and%20Operational%20Review) [Financial Highlights](index=8&type=section&id=Financial%20Highlights) In H1 2024, the Group's total revenue increased by **82%** to **HKD 4.931 billion**, driven by London Peninsula residential apartment sales, yet recorded a **HKD 448 million** loss attributable to shareholders and an underlying loss of **HKD 257 million** due to new hotel ramp-up costs, market softness, and increased finance costs Key Financial Indicators for H1 2024 | Indicator (HKD million) | H1 2024 | H1 2023 | Change | | :--- | :--- | :--- | :--- | | **Total Revenue^** | 4,931 | 2,704 | +82% | | **Revenue** | 4,615 | 2,445 | +89% | | **EBITDA** | 542 | 362 | +50% | | **(Loss)/Profit Attributable to Shareholders** | (448) | 94 | N/A | | **Underlying (Loss)/Profit*** | (257) | 25 | N/A | | **(Loss)/Profit Per Share (HKD)** | (0.27) | 0.06 | N/A | <br> | Indicator (Period End) | June 30, 2024 | December 31, 2023 | Change | | :--- | :--- | :--- | :--- | | **Net Assets Attributable to Shareholders (HKD million)** | 35,891 | 36,279 | -1% | | **Net External Debt to Total Assets Ratio** | 25% | 26% | -1pp | [CEO's Review](index=9&type=section&id=CEO%27s%20Review) The CEO noted H1 2024 financial performance fell short of expectations, with underlying loss driven by New York hotel renovations, new hotel ramp-up costs, market softness, increased depreciation and finance costs, and investment property revaluation losses, despite the successful London Peninsula opening and residential sales, while maintaining confidence in the Group's robust financial position and long-term strategy - The Group's H1 performance was below expectations primarily due to underperforming hotels, new hotel ramp-up phases, a **HKD 100 million** increase in total depreciation, a rise in net finance costs to **HKD 237 million**, and a **HKD 139 million** investment property revaluation loss[17](index=17&type=chunk) - Despite short-term profitability challenges, the Group maintains a **robust financial position** with a **25%** net external debt to total assets ratio and an **A-grade credit rating** from a Japanese credit rating agency[18](index=18&type=chunk) [Hotels Division Performance](index=10&type=section&id=Hotels%20Division%20Performance) The Hotels Division showed mixed performance, with strong initial results from new London and Istanbul hotels and robust recovery in Tokyo, but faced challenges in Hong Kong from reduced long-haul travelers and local spending shifts, while New York's revenue significantly declined due to renovations, with new hotel contributions offsetting some weaknesses - The Peninsula London grandly opened on **June 18, 2024**, completing the sale of **4 luxury residential apartments** in H1, generating **HKD 1.7 billion** in proceeds, with its F&B operations performing strongly and the rooftop restaurant earning **two Michelin stars**[32](index=32&type=chunk) - The Peninsula New York's revenue decreased by **32%** during the period due to significant renovation works, rendering an average of approximately **98 rooms unavailable**[29](index=29&type=chunk) Selected Peninsula Hotels H1 2024 Revenue Performance (in local currency) | Hotel | Y-o-Y Revenue Change (Local Currency) | | :--- | :--- | | **The Peninsula Tokyo** | +26% | | **The Peninsula Istanbul** | +175% | | **The Peninsula Hong Kong** | +9% | | **The Peninsula Beijing** | +10% | | **The Peninsula Paris** | +8% | | **The Peninsula New York** | -32% | | **The Peninsula Chicago** | -3% | [Commercial Properties Division Performance](index=17&type=section&id=Commercial%20Properties%20Division%20Performance) The Commercial Properties Division showed stable performance, with the core Repulse Bay Complex seeing increased revenue and occupancy due to residential demand recovery, The Peak Tower benefiting from a **51%** revenue increase driven by significant tourist growth, while St. John's Building experienced a slight revenue decline due to a soft Hong Kong office market Commercial Properties H1 2024 Revenue Performance (in HKD million) | Property | Revenue (HKD million) | Y-o-Y Change | | :--- | :--- | :--- | | **The Repulse Bay Complex** | 286 | +7% | | **The Peak Tower** | 80 | +51% | | **St. John's Building** | 23 | -4% | [Clubs & Services Division Performance](index=18&type=section&id=Clubs%20%26%20Services%20Division%20Performance) The Clubs and Services Division demonstrated strong overall performance, with The Peak Tram's revenue increasing by **73%** due to significantly higher patronage post-upgrade, Peninsula Merchandising recording a notable **58%** growth, and Quail Lodge & Golf Club maintaining stable revenue year-on-year Clubs and Services H1 2024 Revenue Performance (in HKD million) | Business | Revenue (HKD million) | Y-o-Y Change | | :--- | :--- | :--- | | **The Peak Tram** | 147 | +73% | | **Peninsula Merchandising** | 60 | +58% | | **Tai Pan Laundry** | 32 | +18% | | **Quail Lodge & Golf Club** | 58 | 0% | [Outlook](index=20&type=section&id=Outlook) The Group maintains cautious optimism for H2 business prospects, anticipating a traditional peak season across multiple markets, yet acknowledges uncertainties from a soft Hong Kong long-haul tourism market, geopolitical tensions, and evolving local consumption patterns, while remaining committed to its long-term strategy of investing in existing assets and enhancing brand value - The Group holds cautious optimism for the H2 hotel business, as the success of new hotels in London and Istanbul will enhance its brand recognition in Europe[45](index=45&type=chunk) - The Hong Kong market faces challenges, including a weak long-haul leisure travel segment and the potential impact of local residents' cross-border spending on room and F&B revenue[45](index=45&type=chunk) [Financial Review](index=22&type=section&id=Financial%20Review) This section provides an in-depth analysis of the Group's H1 2024 financial position, where significant total revenue growth was primarily driven by **HKD 1.7 billion** in London residential sales, though underlying business profitability declined after excluding this and other non-recurring items, detailing revenue and EBITDA contributions by segment and region, alongside balance sheet, cash flow, and treasury management, highlighting the Group's robust financial structure amidst profitability pressures - If hotels and golf courses were accounted for at fair value, the Group's adjusted net assets attributable to shareholders would reach **HKD 40.641 billion**, **13% higher** than the carrying value[51](index=51&type=chunk)[52](index=52&type=chunk) - The Group recorded an underlying loss of **HKD 257 million**, primarily adjusted for a **HKD 153 million** investment property valuation loss and **HKD 38 million** in pre-opening and project expenses[53](index=53&type=chunk)[54](index=54&type=chunk) - Net finance costs significantly increased from **HKD 129 million** in the prior period to **HKD 366 million**, mainly due to the cessation of interest capitalization following The Peninsula London's opening[56](index=56&type=chunk)[57](index=57&type=chunk) [Revenue and EBITDA Analysis](index=25&type=section&id=Revenue%20and%20EBITDA%20Analysis) In H1 2024, the Group's total revenue reached **HKD 4.931 billion**, an **82%** increase, with Commercial Properties revenue surging **464%** due to London residential sales, Hotels revenue growing **18%**, and Clubs and Services revenue up **42%**, while the Americas and Europe region saw the largest revenue increase of **227%**, contributing most to the **17%** rise in total EBITDA to **HKD 620 million**, though EBITDA declined excluding residential sales Total Revenue by Business Segment (HKD million) | Business Segment | H1 2024 | H1 2023 | Change | | :--- | :--- | :--- | :--- | | **Hotels** | 2,490 | 2,114 | +18% | | **Commercial Properties** | 2,142 | 380 | +464% | | **Clubs and Services** | 299 | 210 | +42% | | **Total** | **4,931** | **2,704** | **+82%** | Total EBITDA by Business Segment* (HKD million) | Business Segment | H1 2024 | H1 2023 | Change | | :--- | :--- | :--- | :--- | | **Hotels** | 258 | 364 | -29% | | **Commercial Properties** | 368 | 190 | +94% | | **Clubs and Services** | (6) | (22) | +73% | | **Total** | **620** | **532** | **+17%** | *Excluding pre-opening and project expenses [Balance Sheet and Property Value](index=28&type=section&id=Balance%20Sheet%20and%20Property%20Value) As of June 30, 2024, the Group's net assets attributable to shareholders were **HKD 35.891 billion**, with net assets per share at **HKD 21.53**, total assets at **HKD 56.031 billion**, fixed assets comprising the majority at **HKD 48.405 billion**, properties held for sale decreasing from **HKD 4.382 billion** to **HKD 2.955 billion** due to London residential sales, and total interest-bearing loans at **HKD 14.811 billion** - The Group's property portfolio has a total fair value of **HKD 62.442 billion** compared to a total carrying value of **HKD 54.294 billion**, indicating significant unrealized appreciation[71](index=71&type=chunk) Key Balance Sheet Items (HKD million) | Item | June 30, 2024 | December 31, 2023 | | :--- | :--- | :--- | | **Fixed Assets** | 48,405 | 48,832 | | **Properties Held for Sale/Development** | 2,955 | 4,382 | | **Total Assets** | 56,031 | 57,869 | | **Interest-Bearing Loans** | (14,811) | (15,914) | | **Net Assets** | 35,992 | 36,379 | | **Shareholders' Funds** | 35,891 | 36,279 | [Cash Flow and Treasury Management](index=31&type=section&id=Cash%20Flow%20and%20Treasury%20Management) H1 net cash inflow from operating activities was **HKD 1.853 billion**, primarily driven by London residential sales proceeds, with capital expenditures mainly directed towards hotel projects in London, Istanbul, and New York; the Group's treasury management remains robust, with net borrowings reduced to **HKD 14.1 billion**, a net debt to total assets ratio of **25%**, and **HKD 2.4 billion** in undrawn credit facilities, ensuring ample liquidity - Proceeds from the sale of The Peninsula London residential apartments amounted to **HKD 1.707 billion**, serving as the primary source of cash inflow in H1[77](index=77&type=chunk) - The Group's net borrowings (excluding lease liabilities) decreased to **HKD 14.1 billion**, with an average credit maturity of **1.4 years**, and **74%** of committed credit facilities are green or sustainability-linked loans[78](index=78&type=chunk) - After hedging, the weighted average interest rate for the period increased to **4.72%** (from **4.38%** at end-2023)[79](index=79&type=chunk) [Corporate Governance and Other Information](index=33&type=section&id=Corporate%20Governance%20%26%20Other%20Information) [Corporate Governance and Board Changes](index=33&type=section&id=Corporate%20Governance%20and%20Board%20Changes) The Group emphasizes its commitment to high standards of corporate governance and compliance with the Stock Exchange's Corporate Governance Code, with significant board and senior management changes during and after the period, including the appointment of a Chief Financial Officer, the retirement and succession of the Chief Operating Officer, and the planned retirement of the Chief Executive Officer, indicating a management transition period - The Group confirmed compliance with all code provisions of the Corporate Governance Code in H1 2024[81](index=81&type=chunk) - Significant changes occurred within the Board and senior management: - Mr. Peter Borer, Chief Operating Officer, retired on **July 31, 2024**, succeeded by Mr. Rory Murphy - Mr. Clement Kwok, Chief Executive Officer, will retire on **October 31, 2024**, with the company actively seeking a successor[86](index=86&type=chunk) [Directors' and Major Shareholders' Interests](index=36&type=section&id=Directors%27%20%26%20Major%20Shareholders%27%20Interests) The report discloses directors' and major shareholders' interests in the company's shares, with Sir Michael Kadoorie and his family holding approximately **51.57%** controlling interest through trusts, and lists other major shareholders with over **5%** stake, such as Sino Hotels (Holdings) Limited - Chairman Sir Michael Kadoorie and his family members are deemed to have an interest in **859,625,063 shares**, representing **51.57%** of the total issued shares of the company[89](index=89&type=chunk)[90](index=90&type=chunk) - Sino Hotels (Holdings) Limited and its associates hold **85,909,519 shares**, representing **5.15%** of the issued shares of the company[94](index=94&type=chunk) [Interim Dividend](index=39&type=section&id=Interim%20Dividend) Due to the company recording an underlying loss, the Board of Directors decided not to declare an interim dividend for 2024 - The Board resolved not to declare an interim dividend for the six months ended **June 30, 2024** (H1 2023: nil)[98](index=98&type=chunk) [Interim Financial Report](index=40&type=section&id=Interim%20Financial%20Report) [Consolidated Financial Statements](index=40&type=section&id=Consolidated%20Financial%20Statements) This section presents the unaudited consolidated statement of profit or loss, statement of comprehensive income, statement of financial position, statement of changes in equity, and statement of cash flows, showing that despite significant revenue growth from residential sales, increased operating costs, depreciation, and finance expenses led to a net loss, while the balance sheet indicates a slight asset contraction and the cash flow statement reflects residential sales proceeds offsetting substantial project investment outlays Consolidated Statement of Profit or Loss Summary (HKD million) | Item | H1 2024 | H1 2023 | | :--- | :--- | :--- | | **Revenue** | 4,615 | 2,445 | | **Operating Profit** | 209 | 129 | | **Loss/Profit Before Tax** | (380) | 143 | | **Loss/Profit for the Period** | (448) | 95 | | **Loss/Profit Per Share (HKD)** | (0.27) | 0.06 | Consolidated Statement of Financial Position Summary (HKD million) | Item | June 30, 2024 | December 31, 2023 | | :--- | :--- | :--- | | **Total Assets** | 56,031 | 57,869 | | **Total Liabilities** | (20,039) | (21,490) | | **Net Assets** | 35,992 | 36,379 | Condensed Consolidated Statement of Cash Flows Summary (HKD million) | Item | H1 2024 | H1 2023 | | :--- | :--- | :--- | | **Net Cash Inflow from Operating Activities** | 1,853 | 335 | | **Net Cash Outflow from Investing Activities** | (731) | (1,396) | | **Net Cash (Outflow)/Inflow from Financing Activities** | (1,259) | 1,092 | | **Net (Decrease)/Increase in Cash and Cash Equivalents** | (137) | 31 | [Notes to the Financial Report](index=45&type=section&id=Notes%20to%20the%20Financial%20Report) The notes provide detailed explanations and supplementary information to the financial statements, including segment reporting data showing revenue and profitability for Hotels, Commercial Properties, and Clubs and Services, an investment property revaluation loss of **HKD 139 million**, and a residential unit sale transaction with an associate of the Chairman's family - Segment reporting indicates the Hotels division contributed **HKD 2.174 billion** in revenue, the Commercial Properties division contributed **HKD 2.142 billion** (including residential sales), and the Clubs and Services division contributed **HKD 299 million**[112](index=112&type=chunk) - A net loss of **HKD 139 million** from investment property revaluation was recognized in the consolidated statement of profit or loss[124](index=124&type=chunk) - The Group completed the sale of a Peninsula London residential apartment unit to a company controlled by major shareholder Sir Michael Kadoorie's family, with the transaction value of **GBP 28.75 million** recognized as revenue[147](index=147&type=chunk) [Review Report and Shareholder Information](index=61&type=section&id=Review%20Report%20%26%20Shareholder%20Information) [Review Report to the Board of Directors](index=61&type=section&id=Review%20Report%20to%20the%20Board%20of%20Directors) KPMG, the auditor, has reviewed this interim financial report and found no matters suggesting it was not prepared in all material respects in accordance with Hong Kong Accounting Standard 34 - The auditor concluded that nothing came to their attention to suggest the interim financial report was not prepared in all material respects in accordance with Hong Kong Accounting Standard 34[150](index=150&type=chunk)

Financial Performance - Total revenue for the six months ended June 30, 2024, increased by 82% to HKD 4.931 billion, primarily driven by HKD 1.7 billion from the sale of four units of the London Peninsula residential apartments[2]. - Shareholders' attributable loss recorded was HKD 448 million, with a basic loss of HKD 257 million for the same period[3]. - Adjusted net asset value per share decreased by 2% to HKD 24.38 as of June 30, 2024, compared to HKD 24.92 as of December 31, 2023[2]. - Operating profit before interest, tax, depreciation, and amortization (EBITDA) was HKD 580 million, reflecting a 16% increase compared to the previous year[4]. - The group reported a consolidated revenue increase of 89% to HKD 4.6 billion for the first half of 2024, while EBITDA (excluding pre-opening and project expenses) rose by 16% to HKD 580 million[5]. - The group recorded a loss attributable to shareholders of HKD 448 million, compared to a profit of HKD 94 million in the same period last year, reflecting a basic loss of HKD 257 million versus a basic profit of HKD 25 million last year[5]. - The group reported a net loss attributable to shareholders of HKD 448 million for the six months ended June 30, 2024, compared to a profit of HKD 94 million in the same period of 2023[103]. Debt and Financing - The net external debt to total assets ratio improved to 25%, down from 26%[3]. - Net financing costs increased to HKD 237 million due to the cessation of capitalizing interest related to the London Peninsula Hotel project and high interest rates[3]. - The average interest coverage ratio improved to 1.3x, up from 1.0x in the previous year[4]. - The group's net financing costs increased to HKD 237 million due to the cessation of capitalizing interest related to the London Peninsula Hotel project and high interest rates[6]. - The group's interest-bearing loans decreased by 7% to HKD 14,811 million, down from HKD 15,914 million[67]. - The average cost of debt increased to 4.72% as of June 30, 2024, compared to 4.38% at the end of 2023[77]. Cash Flow and Liquidity - Cash flow from operating activities showed a net inflow of HKD 1.853 billion, a significant increase of 453% compared to the previous year[4]. - The group has a credit facility of HKD 2.4 billion and cash and bank balances of HKD 756 million, indicating sufficient liquidity to meet operational needs[46]. - Net cash inflow after deducting normal capital expenditures increased significantly to HKD 1,749 million in 2024 from HKD 373 million in 2023, marking a growth of 368.4%[75]. - The company reported a net cash outflow from investment activities of HKD 731 million for the six months ended June 30, 2024, compared to HKD 1,396 million in 2023, showing a reduction in capital expenditures[87]. - Total cash and cash equivalents as of June 30, 2024, amounted to HKD 560 million, a decrease from HKD 597 million in 2023, reflecting a net decrease of 6.2%[88]. Property and Investment Performance - The group recorded an investment property revaluation loss of HKD 139 million for the six months ended June 30, 2024[3]. - The group experienced a property revaluation loss of HKD 139 million for the six months ended June 30, 2024, compared to a revaluation gain of HKD 222 million in the same period last year[6]. - The fair value of the group's hotel properties as of June 30, 2024, is estimated at HKD 39,707 million, compared to HKD 39,232 million as of December 31, 2023, indicating a slight increase[69]. - The total market value of the group's properties is HKD 62,442 million as of June 30, 2024, compared to HKD 62,205 million as of December 31, 2023[69]. - The group has 100% ownership of the London Peninsula Hotel project, which includes a hotel with 190 rooms and 24 luxury residential apartments[110]. Hotel Operations - The Hong Kong Peninsula Hotel achieved revenue of HKD 517 million, a 9% increase, with an average room rate increase of 19% and a 21% increase in revenue per available room[11]. - The London Peninsula Hotel opened on June 18, 2024, marking a significant milestone in the company's 157-year history[5]. - The hotel division's revenue rose by 18% to HKD 2,490 million, despite a significant decline in revenue from the New York Peninsula Hotel due to renovation[55]. - The hotel achieved an occupancy rate increase of 2 percentage points and a 10% rise in average room rates[13]. - Average revenue per available room (RevPAR) increased by 15%[13]. Market and Operational Challenges - The New York Peninsula Hotel's revenue decreased by 32% to HKD 226 million, reflecting operational challenges during renovations[9]. - The outlook for the group's business remains uncertain due to weak long-haul leisure travel market in Hong Kong and geopolitical tensions[41]. - The second half of the year is traditionally a peak season for multiple business markets, leading to cautious optimism for hotel operations[41]. Sustainability and Corporate Governance - The sustainable development strategy "Prestige Legacy 2030 Vision" integrates corporate responsibility into broader business strategies, focusing on enhancing guest experience, employee development, and community prosperity[38]. - The company has signed a total of HKD 12.7 billion in sustainable development-linked and green loans as of June 30, 2024[40]. - The group has achieved EarthCheck certification for its Peninsula Hotels, demonstrating strong environmental management processes[39]. - The company has launched its sustainability strategy "Vision 2030," focusing on enhancing guest experience, employee development, and community enrichment[140]. - The company adheres to all governance code provisions and best practices, except for the publication of quarterly financial results and disclosure of individual senior management remuneration[138]. Employee and Organizational Development - The company hired over 3,200 new employees in 2023 and continues its talent recruitment strategy into 2024[37]. - The number of specific readers on the Viva Engage platform increased by 53% to over 4,300 in the first half of 2024[36]. Future Plans and Developments - The company plans to renovate the shopping mall at Repulse Bay and explore new positioning for the Peak Tram[41]. - The company plans to continue its investment in the development of the London Peninsula Hotel project, with a capital expenditure of HKD 269 million reported for the first half of 2024[87]. - The group is exploring new dining and retail service options at The Peak Galleria to attract more tourists[31].