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].

Group 1 - The hotel industry in Qingdao is actively engaging in talent recruitment and collaboration with educational institutions to address employment challenges for graduates [1][2] - A specialized recruitment event was held, offering over 200 job positions across various fields such as hotel management and tourism services, attracting more than 400 students [2] - The collaboration between the local government, educational institutions, and the hotel industry aims to enhance talent acquisition and retention, providing effective strategies for high-quality development [2][3] Group 2 - The event included a HR seminar where industry representatives discussed employment policies and training subsidies, facilitating a better understanding of recruitment processes [1] - The initiative is part of a broader strategy to strengthen the connection between universities and businesses, fostering a robust platform for talent exchange [3] - The local employment service center is committed to expanding recruitment channels and implementing HR partnership plans to enhance the effectiveness of government, education, and industry collaboration [3]

Core Viewpoint - The article highlights the efforts of the Shaoguan City Market Supervision Bureau in Guangdong Province to ensure food safety in rural areas and promote the healthy development of rural tourism through a live-streamed random inspection of a local hotel [1] Group 1: Inspection Activities - The live-streamed inspection focused on various aspects including food business licensing, health management of staff, sourcing and verification of food materials, labeling of bulk food, management of frozen and refrigerated foods, and prevention of food waste [1] - The inspection revealed that the hotel generally met the daily supervision requirements for food service, with staff having completed food safety training and visible anti-waste promotional materials in the dining area [1] - Rapid testing of food products showed negative results for pesticide residues, indicating compliance with food safety standards [1] Group 2: Issues Identified - Some issues were identified during the inspection, including the absence of rodent-proof barriers at kitchen entrances, some staff wearing watches, and unlabeled bulk food items in the cooking area [1] - The hotel was instructed to rectify these issues within a specified timeframe, with a follow-up inspection scheduled five working days later to ensure compliance [1] Group 3: Government Initiatives - The local government emphasizes a people-first approach and adheres to strict food safety regulations, ensuring accountability through a clear responsibility framework [1] - Regular inspections are mandated, with at least one supervisory check per quarter to maintain a 100% coverage rate [1] - The government is actively conducting food safety campaigns, especially during significant events, to raise awareness and encourage public participation in food safety initiatives [1]

Financial Performance - Total revenue for 2023 reached HKD 8,703 million, an increase of 89% compared to the previous year[14]. - Operating profit before interest, tax, depreciation, and amortization (EBITDA) was HKD 1,098 million, up 175% from HKD 399 million in 2022[14]. - Net profit attributable to shareholders was HKD 146 million, a significant recovery from a loss of HKD 488 million in 2022[14]. - The cash interest coverage ratio improved to 1.3x, a 57% increase from 0.8x in the previous year[14]. - Total assets increased by 2% to HKD 57,869 million, while audited net assets attributable to shareholders rose by 1% to HKD 36,279 million[14]. - The group reported a net cash inflow of HKD 150 million for the year, with cash and cash equivalents at HKD 720 million as of December 31, 2023[19]. - The group's basic earnings attributable to shareholders for the year ended December 31, 2023, were HKD 146 million, with non-operating and non-recurring items impacting earnings negatively by HKD 180 million[23]. - The group’s retained earnings as of December 31, 2023, amounted to HKD 30,478 million, reflecting a strong financial position[24]. - The group reported a significant rebound in business for 2023, driven by the reopening of borders in the Greater China region in February 2023[37]. - The company achieved a net gain of HKD 186 million from the revaluation of investment properties, compared to a net loss of HKD 152 million in the previous year[41]. Revenue Segments - Total revenue from the hotel segment increased by 41% to HKD 4,765 million, driven by recovery from the pandemic, except for the Beverly Hills Peninsula Hotel which saw a 4% revenue decline due to local strikes[17]. - The commercial property segment's revenue surged by 339% to HKD 3,110 million, primarily due to the sale of 10 luxury residential apartments in London, contributing HKD 2,298 million[17]. - The club and services segment reported a 60% revenue increase to HKD 828 million, mainly from the Peak Tram, which underwent a major upgrade completed in August 2022[17]. - The Hong Kong Peninsula Hotel reported a revenue increase of 51% year-on-year, reaching HKD 1,039 million[52]. - The Wangfu Peninsula Hotel achieved a revenue of RMB 298 million, with a 71% increase in occupancy rate and a 287% increase in average room rate[58]. - The Tokyo Peninsula Hotel generated revenue of JPY 13.35 billion, with a 78% increase in occupancy rate and an 89% increase in average room revenue[62]. Sustainability Initiatives - The group aims to achieve EarthCheck certification for its ten Peninsula hotels, reflecting its commitment to sustainability[15]. - Carbon emissions density and energy density decreased by 41% and 20% respectively compared to the 2010 baseline, indicating progress in sustainability efforts[15]. - The group allocated HKD 33 million as donations to support victims of the earthquake in Turkey, impacting the financial results for 2023[14]. - The company is committed to reducing greenhouse gas emissions and improving water efficiency as part of its "2030 Vision" sustainability strategy[143]. - The company has joined various global initiatives, including the Global Tourism Plastics Initiative and the Responsible Luxury Initiative, to address sustainability issues[143]. New Developments and Openings - The Peninsula Hotels opened two new properties in 2023, with the London Peninsula opening in February and the Istanbul Peninsula in September, marking a significant milestone for the company[31]. - The London Peninsula Hotel opened for trial operations on September 12, 2023, with 10 rooms initially available, expanding to 170 rooms by the end of December 2023[69]. - The Istanbul Peninsula Hotel opened with 23 rooms in February 2023, expanding to 80 rooms by March and reaching full capacity of 177 rooms by August 1, 2023[79]. - The company is undergoing significant renovations at the New York Peninsula Hotel, enhancing the lobby, rooftop bar, and public areas to improve asset value[32]. - The company is actively managing risks related to labor shortages, inflation, energy costs, and geopolitical uncertainties, with a focus on cybersecurity threats and climate change risks[31]. Awards and Recognition - The company received the "Best of Hong Kong SAR" award at the 37th ARC Annual Report Awards for its 2022 annual report, marking the second consecutive year of this honor[12]. - The Peninsula Hotel ranked sixth in the "World's Best Hotels" category by Condé Nast Traveller, being the only hotel from Asia in the top ten[56]. - The Peninsula Hotel in Shanghai was recognized as one of the Top 10 Hotels in China by Condé Nast Traveler, ranking 3rd among the World's Best Hotels[146]. - The Istanbul Peninsula Hotel was awarded 5th place in the 2023 World's Best Luxury Hotels by Luxury Travel Intelligence[148]. - The company achieved a Gold certification from EarthCheck for its commitment to sustainability across its properties[147]. Corporate Governance and Leadership - The board of directors has undergone significant changes, with new appointments and retirements, including the promotion of Liao Yijing to Executive Director and Chief Governance Officer in August 2023[32]. - The company is committed to enhancing corporate governance and maintaining high levels of transparency and accountability to gain the trust of shareholders and stakeholders[151]. - The governance framework is central to the company's corporate culture, aligning with its goals and values of integrity, responsibility, and transparency[153]. - The company is actively identifying climate-related risks and opportunities as part of its commitment to corporate responsibility and sustainable development[154]. - The leadership team includes experienced members with extensive backgrounds in various industries, enhancing the company's governance[164][169]. Employee Engagement and Development - The group employed 7,695 full-time staff as of December 31, 2023[46]. - The global employee experience survey participation rate reached a record high of 92%, with an engagement score of 78%, exceeding the global industry average by 5%[45]. - The company launched a new employee development program, with 19 global candidates completing the third learning unit in 2023 and set to complete the final unit in 2024[141]. - The "WorkPlace 2025" initiative aims to modernize the workplace and create a more meaningful work environment for employees[48]. - The company is actively recruiting talent in key markets such as China, Switzerland, and the United States, with campus visits and informational sessions[141].

Financial Performance - The company's revenue for 2023 reached HKD 8,112 million, a 93% increase from HKD 4,198 million in 2022[2] - EBITDA for 2023 was HKD 1,390 million, reflecting a 168% increase from HKD 518 million in 2022[2] - Shareholders' profit for 2023 was HKD 146 million, compared to a loss of HKD 488 million in 2022[2] - Basic earnings per share for 2023 were HKD 0.17, recovering from a loss of HKD 0.12 in 2022[2] - Total revenue for 2023 reached HKD 8,703 million, an increase of 89% compared to 2022[3] - Operating profit before interest, tax, depreciation, and amortization (EBITDA) was HKD 1,390 million, up 168% from the previous year[3] - The company reported a net profit attributable to shareholders of HKD 146 million, a significant recovery from a loss of HKD 488 million in 2022[3] - The group achieved a post-tax profit of HKD 251 million from the sale of 10 luxury Peninsula residential apartments in London, offsetting some of the losses[15] - The group recorded a net gain from property revaluation of HKD 186 million in 2023, compared to a net loss of HKD 152 million in the previous year[16] - The basic profit, excluding property revaluation adjustments and non-recurring expenses, was HKD 277 million, compared to a basic loss of HKD 205 million in 2022[16] Hotel Operations - The company opened two new hotels in 2023, marking the first time in its 157-year history that two Peninsula hotels opened in the same year[2] - The Istanbul Peninsula Hotel recorded an operational loss of HKD 258 million, with HKD 129 million attributable to the company[2] - The London Peninsula Hotel incurred an operational loss of HKD 193 million due to the costs associated with new hotel openings[2] - The average room rate for the Peninsula Hotels in Tokyo and Manila reached historic highs, indicating strong performance in these markets[4] - The average room rates in Paris Peninsula Hotel continued to show high growth, contributing to overall revenue increases[4] - The flagship property, the Hong Kong Peninsula Hotel, was completed in 1928 with a construction cost of HKD 3 million, and its current estimated value exceeds HKD 12 billion[6] - The London Peninsula Hotel opened in September 2023, featuring 190 guest rooms and 24 luxury residential apartments, enhancing the group's brand recognition in Europe[8] - The Istanbul Peninsula Hotel opened in February 2023, comprising 177 luxury rooms and suites, with many offering views of the Istanbul Strait[8] - The company is investing HKD 352 million in significant renovations for the New York Peninsula Hotel, expected to be completed by late summer 2024[13] - The company plans to continue expanding its market presence, particularly in the Greater China region, which has shown signs of recovery[4] Financial Health and Debt Management - The company’s net asset value per share increased by 1% to HKD 22.00 from HKD 21.84 in 2022[2] - The total assets increased to HKD 57,869 million, a 2% rise from the previous year[3] - The net external debt to total assets ratio remained stable at 26%[3] - The cash interest coverage ratio improved to 1.3x, up from 0.8x, reflecting better financial health[3] - The group’s net debt to total assets ratio was 26% as of December 31, 2023, indicating a stable financial position[65] - The group has available funds of HKD 42 billion, including HKD 3.4 billion in undrawn credit facilities and HKD 881 million in cash and bank balances[65] - The group’s total borrowings increased to HKD 15.914 billion, up from HKD 15.192 billion in 2022[114] - The net interest payment for 2023 rose to HKD 708 million, compared to HKD 283 million in 2022, reflecting an increase due to higher average borrowings and global interest rates[111] - The group maintained a debt-to-asset ratio of 26% as of December 31, 2023, consistent with 2022[110] Employee and Corporate Governance - The group has a total of 7,695 full-time employees as of December 31, 2023[23] - The global employee experience survey participation rate reached a record high of 92%, with an employee engagement score of 78%, exceeding the global industry average by 5%[20] - 90% of employees intend to stay with the company for over a year, and 89% feel their expectations have been met or exceeded[20] - The "Executive Development Programme" lasts 18 months, aimed at enhancing core business knowledge and building a talent pool for future senior management[21] - The "Emerging Manager Programme" is a 12-month training program for new managers across various departments, promoting skills and connections[21] - The board of directors emphasizes the importance of corporate culture in achieving economic success and sustainable growth[173] - The company’s corporate governance framework aligns with the Hong Kong Stock Exchange's corporate governance code[173] Sustainability and Community Engagement - The company is exploring opportunities to reduce environmental impact and implement climate risk mitigation measures as part of its commitment to achieving net-zero emissions[23] - The company has signed a total of HKD 13.1 billion in sustainable development-linked and green loans as of December 31, 2023[24] - The new hotels in London and Istanbul are expected to achieve "BREEAM Excellent" certification, reflecting the company's commitment to sustainable design[24] - The group continues to collaborate with local communities and charities, supporting initiatives for the homeless and underprivileged in Hong Kong[31] - The company has committed to a sustainable development strategy called "Respect and Inherit 2030 Vision," focusing on enhancing guest experience, employee development, and community prosperity[174] Market Expansion and Future Plans - The company plans to further expand its business by opening new boutique stores and temporary concept stores in mainland China and Japan[10] - The company is optimistic about the recovery of the residential rental market, with increased demand for residential units in Repulse Bay[25] - The company plans to renovate the shopping mall at Repulse Bay and explore a new positioning for the Peak Tram[25] - The company is implementing the "WorkPlace 2025" initiative to modernize the workplace and create a more meaningful work environment for employees[26] - The company anticipates continued growth in its hotel business, particularly in Japan and Paris, while the outlook for Beijing and Shanghai remains positive due to domestic market benefits[25] Revenue and Operational Highlights - The hotel division's total revenue rose by 41% to HKD 4,765 million, with all Peninsula hotels recording revenue growth, except for the Beverly Hills Peninsula Hotel, which saw a 4% decline due to local strikes[79] - The commercial property division's revenue surged by 339% to HKD 3,110 million, primarily driven by the sale of luxury London Peninsula residential apartments[79] - The club and services division's revenue increased by 60% to HKD 828 million, mainly from the Peak Tram, which underwent a major upgrade completed in August 2022[79] - The Peak Tram recorded a revenue increase of 669% to HKD 221 million, reflecting strong performance post-reopening in March 2023[55] - The Peninsula Golf Club achieved a revenue increase of 12% to HKD 228 million, with a solid average occupancy rate[55] - The Peninsula Hotels in Istanbul and London are progressing with their openings, with Istanbul's hotel fully operational with 177 rooms as of August 2023[59]

Financial Performance - Total revenue for the first half of 2023 reached HKD 2,704 million, a 47% increase compared to HKD 1,834 million in the same period of 2022[13] - The operating profit before interest, tax, depreciation, and amortization (EBITDA) was HKD 498 million, up 357% from HKD 109 million year-on-year[13] - The net profit attributable to shareholders was HKD 362 million, compared to a loss of HKD 134 million in the first half of 2022[13] - The company's consolidated revenue increased by 47% to HKD 2.7 billion, driven by improved business in the US and Europe[16] - Operating profit before interest, tax, depreciation, and amortization surged by 357% to HKD 498 million, excluding non-recurring pre-opening and project expenses of HKD 155 million[16] - The basic profit attributable to shareholders was HKD 25 million, a significant recovery from a basic loss of HKD 254 million in the same period last year[51] - The total comprehensive income for the period was HKD 148 million, compared to a loss of HKD 74 million in 2022[103] - The total segment revenue for commercial properties was HKD 380 million in 2023, compared to HKD 333 million in 2022, marking a growth of 14.1%[113] Operational Highlights - The average room rate in New York remained high, contributing to stable operational performance in the US hotels[14] - The Peninsula Hotel in Istanbul commenced trial operations on February 14, 2023, with the GALLADA restaurant opening on July 7, 2023[14] - The London Peninsula Hotel project is expected to be fully completed by the end of 2023, with a revised budget of GBP 1,020 million approved by the board[14] - The company is facing labor shortages, particularly in the US, Japan, and Europe, impacting the full operational capacity of some hotels and restaurants[14] - The company anticipates continued positive performance in the second half of the year across its properties[26] - The company plans significant renovations for the New York Peninsula Hotel in early 2024, covering various areas of the hotel[28] Asset and Financial Position - The total assets as of June 30, 2023, were HKD 58,469 million, reflecting a 3% increase from HKD 56,581 million at the end of 2022[13] - The net debt to total asset ratio stands at 28%, with expectations of a decrease in leverage due to strong growth in the US and Europe, and the delivery of sold London residential apartments[16] - The group has available funds of HKD 3.2 billion, including undrawn credit facilities of HKD 2.6 billion and cash and bank balances of HKD 623 million[50] - The group's total assets were reported at HKD 36,163 million as of June 30, 2023, compared to HKD 36,016 million at the end of 2022[54] - The group's cash and bank deposits increased by 6% to HKD 623 million as of June 30, 2023[68] Market and Revenue Growth - The Hong Kong Peninsula Hotel reported revenue of HKD 472 million, a 72% increase, with an average occupancy rate and average room rate also showing significant recovery[18][19] - The Shanghai Peninsula Hotel's revenue reached RMB 184 million, up 98%, with occupancy and average room rates also experiencing substantial growth[21] - The Tokyo Peninsula Hotel reported revenue of ¥62.8 billion, with a 129% increase in revenue, 16 percentage points increase in occupancy rate, and 148% increase in average room revenue[25] - Bangkok Peninsula Hotel achieved revenue of ฿442 million, reflecting a 153% increase in revenue, 29 percentage points increase in occupancy rate, and 291% increase in average room revenue[26] - Manila Peninsula Hotel generated revenue of ₱752 million, with a 97% increase in revenue, 21 percentage points increase in occupancy rate, and 103% increase in average room revenue[27] Sustainability and Community Initiatives - The company is committed to sustainability initiatives, including the establishment of a solar power facility at the golf club and the procurement of 100% zero-emission electricity for new hotel projects[46] - The company plans to invest HKD 200 million in sustainability initiatives over the next three years, aiming to reduce carbon emissions by 30%[155] - The company has initiated a fundraising campaign for earthquake relief in Turkey, donating a portion of hotel revenues for aid efforts[35] - The "Wisdom on Wellness" program will launch a series of global health initiatives focusing on physical, mental, and spiritual well-being[43] Shareholder and Governance Information - The company did not declare an interim dividend for the six months ended June 30, 2023, due to slight basic earnings and significant capital commitments[101] - The board confirmed that there were no significant issues affecting the effectiveness of the group's operations, financial reporting, and compliance monitoring in the first half of 2023[82] - The company has maintained compliance with all provisions of the corporate governance code during the six months ended June 30, 2023[81] - Sir Michael Kadoorie holds 848,805,369 shares, representing 51.46% of the company's issued shares[91] Future Outlook - The company has provided an optimistic outlook for the second half of 2023, projecting a revenue growth of 20% driven by increased tourism and business travel[154] - The company is expanding its market presence by opening two new hotels in Asia, expected to add approximately HKD 300 million in annual revenue once operational[154] - Ongoing technology development includes the implementation of a new booking system aimed at improving customer experience and operational efficiency, projected to reduce booking errors by 40%[155]