Financial Performance - The group reported a basic net loss of HKD 860 million for the first half of 2022, compared to a loss of HKD 290 million in the same period of 2021[6]. - Revenue decreased by 70% to HKD 538 million, down from HKD 1.813 billion in 2021, resulting in an operating loss of HKD 30 million compared to a profit of HKD 142 million in the previous year[14]. - The hotel business in Hong Kong recorded a basic net loss of HKD 1.22 billion, with cumulative losses exceeding HKD 650 million over the past 30 months[5]. - The net loss attributable to shareholders for the period was HKD 136 million, compared to a loss of HKD 104 million in the previous year, resulting in a basic loss per share of HKD 0.19, up from HKD 0.15[18]. - The company reported a total comprehensive loss of HKD 344 million for the six months ended June 30, 2022, compared to a total comprehensive income of HKD 385 million for the same period in 2021[35]. - The group incurred a loss of HKD 159 million attributable to shareholders for the six months ended June 30, 2022, compared to a loss of HKD 90 million in the previous year[32]. - The basic net loss from core operations was HKD 86 million, compared to HKD 29 million in the previous year[19]. - Operating loss for the group was HKD 30 million, compared to a profit of HKD 142 million in the same period last year[43]. Revenue Breakdown - The hotel segment experienced a 5% decline in revenue to HKD 220 million, with an operating loss of HKD 164 million, compared to a loss of HKD 161 million in 2021[14]. - Development property sales generated HKD 135 million, a significant decrease from HKD 1,402 million in the prior year[41]. - The group recorded a decrease in pre-sale deposits and income to HKD 228 million from HKD 244 million as of December 31, 2021[27]. - The group recognized a total of HKD 102 million in rental income from investment properties, compared to HKD 98 million in the previous year[43]. - Total revenue for the six months ended June 30, 2022, was HKD 538 million, a decrease of 70.4% compared to HKD 1,813 million in the same period of 2021[41]. Assets and Liabilities - Total assets decreased to HKD 19.4 billion from HKD 20.5 billion as of December 31, 2021, with total operating assets at HKD 18.5 billion, down from HKD 19.2 billion[21]. - The group's equity decreased to HKD 15.27 billion, equivalent to HKD 21.55 per share, from HKD 15.61 billion or HKD 22.03 per share as of December 31, 2021[20]. - The group's investment properties amounted to HKD 5.088 billion, slightly up from HKD 5.138 billion as of December 31, 2021[23]. - The total amount of development properties reached HKD 1.924 billion, down from HKD 2.227 billion as of December 31, 2021[24]. - The group recorded a net cash outflow from operating activities of HKD 200 million, compared to a net inflow of HKD 196 million in the previous year[29]. - The group’s net debt increased to HKD 565 million from HKD 361 million, with a total equity to debt ratio of 4%, up from 2%[27]. - The group’s net debt stood at HKD 3.907 billion, a reduction from HKD 4.589 billion in the previous year[34]. Investment and Development - The projected capital and development expenditures for the coming years total HKD 1 billion, primarily for property development commitments[30]. - The company has reported a total of HKD 440 million in commitments for development properties in mainland China as of June 30, 2022[56]. - The company has terminated an agreement for the sale of shares in a subsidiary, resulting in a claim for compensation of RMB 1.2 billion plus interest[57]. - The company has not incurred any significant liabilities related to commitments as of June 30, 2022, with total commitments amounting to HKD 985 million[56]. Corporate Governance - The company has complied with all corporate governance codes except for one provision regarding the separation of the roles of Chairman and CEO, which is deemed appropriate for strategic execution[59]. - The company has adopted a code of conduct for directors' securities trading, aligning with the standards set by the Listing Rules Appendix 10, ensuring compliance during the reporting period[60]. - The board of directors includes seven members, with a mix of executive and independent non-executive directors, ensuring diverse governance[67]. - The company has specific inquiries made to all directors regarding compliance with the adopted code of conduct, confirming adherence during the reporting period[60]. Employee and Workforce - The group maintained a workforce of approximately 1,100 employees as of June 30, 2022[31]. Cash Flow and Financial Activities - Cash and cash equivalents as of June 30, 2022, amounted to HKD 703 million, a decrease from HKD 1,143 million as of June 30, 2021, reflecting a decline of 38.6%[36]. - Operating cash flow for the six months ended June 30, 2022, was negative HKD 200 million, compared to positive HKD 196 million for the same period in 2021[36]. - Investment activities generated a net cash inflow of HKD 92 million for the six months ended June 30, 2022, compared to HKD 75 million in the same period of 2021[36]. Shareholder Information - As of June 30, 2022, the major shareholder Kowloon Warehouse Holdings holds 506,946,196 shares, representing 71.53% of the total issued shares[64]. - The company’s major shareholders include Harson Investment Limited, holding 57,054,375 shares (8.05%), further consolidating ownership[64]. - The company has no recorded short positions in the register as of June 30, 2022, indicating a strong positive outlook among shareholders[65].

Financial Performance - The group's consolidated revenue increased by 35% to HKD 4.484 billion, compared to HKD 3.313 billion in 2020[13]. - Operating profit rose by 15% to HKD 588 million, up from HKD 510 million in the previous year[13]. - The group recorded a net loss of HKD 24 million, a significant improvement from a net loss of HKD 11.19 billion in 2020[13]. - The group's basic net profit decreased to HKD 40 million, down from HKD 413 million in 2020, with hotel losses reduced by 14% to HKD 287 million[23]. - The company reported a net profit of HKD 32 million for the year, a significant recovery from a loss of HKD 1,085 million in 2020[169]. - Total comprehensive income for the year was HKD 254 million, compared to a loss of HKD 1,382 million in the prior year[169]. - The company incurred a loss of HKD 67 million related to hotel property impairment, a decrease from a loss of HKD 1,051 million in the previous year[168]. - The company reported a tax expense of HKD 323 million, compared to a tax benefit of HKD 175 million in the previous year[168]. Hotel Operations - The hotel revenue increased to HKD 580 million, compared to HKD 381 million in 2020[13]. - Revenue for the hotel segment increased by 52%, while operating losses narrowed, indicating some recovery despite ongoing challenges in the local market[19]. - The Hong Kong hotels managed to turn a profit, with the Hong Kong Meili Hotel achieving a positive operating profit[12]. - The Suzhou Niccolo Hotel opened in April 2021 and has recorded monthly operating profits since its opening[12]. - The group is in the process of selling the loss-making Changzhou Marco Polo Hotel, which has since closed[12]. Development and Investment Properties - Development property revenue increased to HKD 3.555 billion in 2021, up from HKD 2.534 billion in 2020, with operating profit rising to HKD 555 million from HKD 448 million, primarily due to sales recognition from the Suzhou International Financial Center[14]. - Investment property revenue decreased to HKD 193 million in 2021, down from HKD 238 million in 2020, with operating profit falling to HKD 161 million from HKD 207 million[14]. - The total value of hotel properties owned by the group in Hong Kong and mainland China was HKD 7.17 billion as of December 31, 2021[158]. - The carrying value of completed investment properties as of December 31, 2021, was HKD 5,138 million, down from HKD 5,148 million in 2020[198]. Financial Position and Cash Flow - The group's total assets amounted to HKD 20.526 billion, with a net asset value per share of HKD 22.03, reflecting a 1% increase from HKD 21.84 in 2020[17]. - The total equity of the group was HKD 15.937 billion, with a debt-to-equity ratio of 2.3%, down from 9.5% in the previous year, indicating improved financial stability[17]. - Net cash inflow reached HKD 1.615 billion, mainly from the Suzhou International Financial Center[14]. - The net cash inflow from operating activities was HKD 1.13 billion, significantly up from HKD 0.17 billion in 2020, primarily from the sale of properties[39]. - The company reported a net cash decrease of HKD 242 million in 2021 compared to HKD 681 million in 2020[173]. Corporate Governance - The board of directors consists of eight members, with five being independent non-executive directors, ensuring a strong independent element in decision-making[58]. - The company has adopted a formal Nomination Policy to ensure a balanced skill set, experience, and diversity in the board composition[61]. - The audit committee consists of three independent non-executive directors, all of whom have sufficient experience in reviewing audited financial statements[66]. - The company emphasizes the importance of character, integrity, and relevant skills in the nomination and evaluation of potential directors[61]. - The company has established an effective board of directors, ensuring decisions align with the company's interests and monitoring changes in regulations and accounting standards[62]. Risk Management and Compliance - The company is committed to risk management and internal control systems, reviewing these processes with the support of the risk management committee[71]. - The board is responsible for overseeing environmental, social, and governance risks, as well as climate-related risks and opportunities[62]. - The company actively monitors regulatory changes to mitigate legal and compliance risks, ensuring adherence to local laws and regulations[148]. - The company has mechanisms in place for employees to report concerns regarding financial reporting and internal controls confidentially[74]. Sustainability and Community Engagement - The company maintains a sustainable development policy aimed at minimizing environmental and social impacts while creating value for the community[43]. - The company aims to reduce greenhouse gas emissions by 30% by 2030, using 2014 as the baseline year[45]. - The company actively participates in community activities focused on education, environmental protection, and youth development[50]. - The company has not reported any violations related to environmental issues during the reporting year[46]. Shareholder Communication - The company emphasizes constructive and transparent communication with shareholders to create higher value[95]. - The company has adopted a Shareholder Communication Policy to ensure timely and fair disclosure of key information, including financial performance and strategic goals[95]. - The company will hold its annual general meeting on May 4, 2022, via a hybrid format due to ongoing COVID-19 concerns, allowing shareholders to participate electronically[97].

Financial Performance - In 2020, the group faced a 94% decrease in inbound tourists and a 24% drop in retail sales due to the pandemic, severely impacting the hotel and tourism sectors[14]. - Total revenue in Hong Kong decreased by 44% to HKD 676 million, with operating profit down 94% to HKD 21 million[15]. - Total revenue in mainland China increased to HKD 2.587 billion, with operating profit rising to HKD 439 million, attributed to the recognition of revenue from the Suzhou International Financial Center[15]. - Overall consolidated revenue increased by 137% to HKD 3.313 billion, but operating profit decreased by 4% to HKD 510 million[15]. - Basic net profit fell by 5% to HKD 413 million, marking the lowest since 2011, including a one-time tax reversal of HKD 361 million[15]. - The group recorded a net loss attributable to shareholders of HKD 1.119 billion, compared to a profit of HKD 117 million in the previous year[15]. - The company’s revenue for 2020 was HKD 3,313 million, a 137% increase compared to HKD 1,395 million in 2019[18]. - The basic net profit attributable to shareholders was HKD 413 million, a decrease of 4% from HKD 435 million in 2019, while the reported loss was HKD 1,119 million[18]. - The total assets decreased by 16% to HKD 23,967 million from HKD 28,385 million in 2019[18]. - The company reported a net loss of HKD 1,119 million for 2020, compared to a profit of HKD 117 million in 2019[162]. Property Development and Investment - The group's core hotel and investment property business was significantly affected, but the completion of the Suzhou International Financial Center contributed positively to the group's performance[14]. - The group plans to concentrate on selling remaining development property units in the Suzhou International Financial Center (80% ownership) and Shanghai South Station (27% ownership)[14]. - The group has reduced its presence in the mainland China property market, with only one remaining project in Shanghai South Station[10]. - Development property revenue increased to HKD 2.53 billion, contributing HKD 448 million in operating profit[26]. - The Suzhou International Financial Center project generated sales of HKD 1.053 billion, significantly contributing to the group's net cash inflow[15]. - The total carrying amount of hotel properties in Hong Kong and mainland China was HKD 71.44 billion as of December 31, 2020[152]. - The company’s investment properties were valued at HKD 5,148 million as of December 31, 2020, down from HKD 5,532 million in 2019[192]. - The company recognized a revaluation loss of HKD 598 million on investment properties during the year[192]. Operational Challenges - Future prospects remain uncertain unless cross-border travel and consumption return to normal levels, contingent on effective vaccination against COVID-19[14]. - The hotel division's performance is significantly affected by unpredictable factors, including seasonal changes, social stability, and economic conditions, leading to increased risks due to the COVID-19 pandemic[138]. - The group has observed a decline in revenue and cash flow due to economic pressures on tenants from the COVID-19 pandemic, particularly in the retail market[140]. - The operating profit from investment properties fell by 39%, reflecting the impact of social distancing measures due to the pandemic[21]. - Hotel revenue dropped by 54%, leading to significant operating losses, with local "staycation" business being the only substantial income source[22]. Financial Management and Strategy - The group aims to enhance shareholder returns through owning and operating premium hotels and investment properties in prime locations[10]. - The group emphasizes strict financial management to navigate the challenging economic environment[10]. - The board canceled all regular dividends for 2020 but announced a special dividend of HKD 0.07 per share, increasing the total annual dividend to HKD 0.14[15]. - The company plans to continue innovative marketing activities and strict cost control to navigate the ongoing challenges in 2021[16]. - The company has engaged Kowloon Warehouse Management Limited to manage its hotel operations in Hong Kong and the Asia-Pacific region[127]. Corporate Governance - The board consists of eight directors, with five being independent non-executive directors, ensuring a strong independent element[59]. - The company has adopted a nomination policy for the appointment and evaluation of directors, ensuring a transparent process[58]. - The board's operation is effective, with clear distinctions between the responsibilities of the board and management[63]. - The company has maintained a commitment to corporate governance, with independent directors participating in audit, remuneration, and nomination committees[115]. - The board regularly reviews its composition to align with the company's business needs and benefits[60]. Risk Management - The group faces significant risks including economic slowdown, political tensions, and the impact of the COVID-19 pandemic, which may affect its financial performance[137]. - The group employs a risk management framework to identify and mitigate potential risks affecting its operations[137]. - The audit committee reviewed the effectiveness of the internal control systems and procedures for the fiscal year ending December 31, 2020, covering financial, operational, compliance, and risk management controls[90]. - The risk management system is integrated into daily operations, with clear responsibilities defined for each operational unit to ensure effective checks and balances[85]. Employee and Community Engagement - The company provided over 30,900 hours of training for employees in 2020[49]. - The company achieved a zero fatality rate in workplace incidents during 2020[49]. - The total donations made by the group during the fiscal year amounted to HKD 1 million[104]. Environmental Compliance - The group aims to reduce electricity consumption by 12% by 2020, based on 2014 levels[47]. - The group has not reported any environmental compliance violations during the reporting year[48].

Financial Performance - Total revenue decreased by 12% to HKD 1.395 billion, down from HKD 1.583 billion in 2018[36] - Operating profit increased by 38% to HKD 531 million, compared to HKD 385 million in 2018[36] - Basic net profit decreased by 15% to HKD 435 million, compared to HKD 512 million in 2018[36] - Shareholder profit attributable to the company dropped by 86% to HKD 117 million, compared to HKD 831 million in 2018[40] - Total liabilities increased significantly by 348% to HKD 1.725 billion, compared to HKD 385 million in 2018[40] - The group's total income from Hong Kong decreased by 10% to HKD 1.207 billion, down from HKD 1.348 billion in 2018[36] - Hotel revenue decreased by 15% to HKD 835 million, down from HKD 978 million in 2018, with operating losses increasing to HKD 76 million from a profit of HKD 10 million[47] - Investment property revenue decreased by 9% to HKD 373 million, while operating profit decreased by 11% to HKD 341 million, impacted by declining rental income due to a tough retail market[47] - The group recorded a revaluation loss of HKD 161 million on completed investment properties, compared to a gain of HKD 319 million in 2018[49] - The group made an impairment provision of HKD 157 million for the Marco Polo in Changzhou, compared to no provision in 2018[50] Market and Operational Challenges - The hotel occupancy rate and room rates were significantly impacted due to a decline in tourism, with visitor numbers to Hong Kong dropping by 14%[34] - Revenue from mainland China assets fell by 30% to HKD 125 million, down from HKD 178 million in 2018[36] - The occupancy rate for hotels fell below 10%, with several hotels suspending operations to mitigate losses[38] - Retail sales in Hong Kong declined by 11% for the year, with a 22% drop recorded in the fourth quarter[43] - The group is facing major risks including economic slowdowns, geopolitical tensions, and the impact of the COVID-19 pandemic on its hotel and investment property performance[169] Strategic Initiatives - The group plans to exit the mainland property development market by selling remaining units in the Suzhou International Financial Center and Shanghai South Station projects[35] - The group continues to focus on owning and operating premium hotels and investment properties in prime locations[30] - The group continues to withdraw from the development property market, with land reserves of approximately 400,000 square meters as of year-end[46] - The group is committed to maintaining asset quality and a diversified tenant portfolio to enhance revenue and counter economic slowdowns[172] Governance and Compliance - The company adheres to all relevant legal requirements regarding food safety and hygiene, conducting regular audits of its food and beverage operations[71] - The company has established guidelines and training for employees to ensure compliance with competition laws and regulations[71] - The board consists of over 50% independent non-executive directors, bringing diverse international and local business experience[80] - The company has adopted a formal nomination policy for the appointment and evaluation of directors, ensuring a transparent process[79] - The audit committee is responsible for reviewing the company's financial statements, including annual and semi-annual reports, ensuring compliance with accounting standards and regulations[94] Shareholder Engagement - The company declared a total dividend of HKD 0.22 per share for the fiscal year 2019, down from HKD 0.30 in 2018[126] - The company encourages shareholder communication through various formal channels, ensuring transparency in reporting[115] - Shareholders holding at least 5% of voting rights can request a special general meeting[116] - The company provides multiple contact methods for shareholders to raise inquiries with the board[118] Risk Management - The company has established a risk management and internal control system, which is reviewed and monitored by the audit committee[96] - Financial risks faced by the group include interest rate, foreign currency, equity price, and credit risks, with detailed management policies outlined in the financial statements[175] - The group actively evaluates regulatory changes to mitigate legal and compliance risks, ensuring adherence to local laws and regulations[174] Human Resources - The group employed approximately 1,200 staff as of December 31, 2019, with compensation based on job responsibilities and market trends[65] - The group’s contributions to the Hong Kong employee retirement benefit plan are based on a certain percentage of employee salaries, with the group and employees contributing simultaneously[155]

Financial Performance - The group's total revenue decreased by 77% to HKD 1.583 billion, down from HKD 6.997 billion in 2017[54]. - Operating profit fell by 91% to HKD 385 million, compared to HKD 4.119 billion in 2017[54]. - The group's net profit decreased by 60% to HKD 512 million, down from HKD 1.29 billion in 2017, marking the lowest level since 2011[54]. - The group's total income from mainland China dropped by 97% to HKD 178 million, resulting in an operating loss of HKD 109 million[54]. - Basic earnings per share for 2018 were HKD 0.72, down 60% from HKD 1.82 in 2017[60]. - Total revenue fell by 77% to HKD 1.583 billion in 2018, compared to HKD 6.997 billion in 2017, while operating profit decreased by 91% to HKD 385 million[67]. - Hotel revenue increased by 55% to HKD 978 million, mainly from contributions from The Murray, Hong Kong and Hong Kong Marco Polo, but operating profit dropped by 93% to HKD 10 million due to initial operating losses at The Murray, Hong Kong[67]. - Investment property income rose by 22% to HKD 411 million, with operating profit increasing by 24% to HKD 383 million, driven by growth in shopping mall rental income[67]. - Development property revenue plummeted by 98% to HKD 89 million, resulting in an operating loss of HKD 60 million, as no projects were recognized during the year[67]. - The fair value of completed investment properties increased, generating a revaluation surplus of HKD 319 million in 2018, compared to HKD 30 million in 2017[68]. - The group reported a significant drop in land reserves, with approximately 400,000 square meters remaining as of the year-end[64]. - The group recorded a net cash outflow from operating activities of HKD 507 million in the current year, compared to a net inflow of HKD 1.258 billion in the previous year, primarily due to decreased property sales and tax payments[78]. - The company reported a financial expenditure of HKD 738 million for the year, compared to HKD 4,149 million in the previous year, indicating a reduction in financial costs[189]. - The total comprehensive income for the year was HKD 133 million, a substantial decrease from HKD 2,418 million in 2017, representing a decline of approximately 94.5%[190]. Dividend and Shareholder Information - The second interim dividend was set at HKD 0.23 per share, with a total annual dividend of HKD 0.30, the lowest since 2011[54]. - The company reported a total dividend of HKD 0.30 per share for the fiscal year 2018, compared to HKD 0.70 per share in 2017[132]. - The first interim dividend of HKD 0.07 per share was distributed on September 7, 2018, while the second interim dividend of HKD 0.23 per share is scheduled for distribution on April 18, 2019[132]. - Shareholders' profit attributable to the group was HKD 831 million, a decrease of 37% from HKD 1.32 billion in 2017, with earnings per share at HKD 1.17[70]. Market and Operational Focus - The group is focusing on high-end hotel operations and prime investment properties to enhance revenue and value[49]. - The group continues to withdraw from mainland property development, with only two remaining projects[48]. - The outlook for 2019 is cautious due to global economic challenges and local market conditions affecting consumer sentiment[56]. - The group is focusing on the Hong Kong market and is systematically withdrawing from mainland China assets[63]. - The group has experienced a significant decline in revenue and profits from its remaining land reserves in mainland China, which will continue to decrease in the coming years[173]. - The hotel division's performance is highly volatile due to factors such as seasonality, social stability, and economic conditions, which have been impacted by geopolitical tensions and trade disputes[170]. Corporate Governance and Compliance - The company has complied with all provisions of the Corporate Governance Code as per the Hong Kong Stock Exchange Listing Rules, except for the provision A.2.1[87]. - All directors confirmed compliance with the required standards of the Company Code and the Standard Code during the fiscal year ending December 31, 2018[88]. - The board of directors consists of a balanced mix of skills and experience, with attendance records showing full participation in board meetings and the annual general meeting[90]. - The board diversity policy emphasizes the importance of a diverse board for enhancing overall performance, with over 50% of directors being independent non-executive directors[93]. - The company has adopted a formal Nomination Policy to ensure a sustainable and balanced board composition, considering skills, experience, and diversity[95]. - The audit committee is responsible for reviewing the company's financial statements and ensuring compliance with accounting standards and regulations[107]. - The company has implemented policies to ensure the independence and effectiveness of external auditors[106]. - The company has adopted a shareholder communication policy to ensure timely and equal access to information for shareholders[124]. Risk Management and Internal Controls - The company reviewed its risk management and internal control systems, ensuring adequate resources and training for accounting and financial reporting functions[108]. - The audit committee reviewed the internal control systems and procedures, covering financial, operational, compliance, and risk management aspects[121]. - The risk management and internal control systems were deemed effective and sufficient for the fiscal year ending December 31, 2018[121]. - The group has implemented a risk management framework to identify and mitigate foreseeable risks that could impact business performance[169]. - Financial risks faced by the group include interest rate, foreign currency, equity price, and credit risks, which are detailed in the financial statements[175]. Environmental and Social Responsibility - The group is committed to sustainable development and compliance with local laws, aiming to positively impact the community[82]. - The group has received silver certification from EarthCheck for environmental performance at its hotels in Hong Kong and Changzhou[83]. - The group has expanded its environmental, social, and governance (ESG) reporting to include the newly opened luxury hotel, The Murray, Hong Kong[176]. Employee and Compensation Information - The group employed approximately 1,200 staff as of December 31, 2018, with compensation based on job responsibilities and market trends[81]. - The retirement benefits plan for employees in Hong Kong is a defined contribution plan, with contributions based on a percentage of employee salaries[158]. - Employees in mainland China are part of a government-operated social insurance and housing fund system, with contributions based on a percentage of wage expenses[158]. Investment Properties and Assets - The group's assets totaled HKD 26.4 billion, with a net asset value per share of HKD 24.38[54]. - The fair value of completed investment properties as of December 31, 2018, accounted for 22% of the total assets of the group[181]. - The total value of hotel properties owned by the group in Hong Kong and mainland China was HKD 7.758 billion as of December 31, 2018[182]. - The assessment of potential impairment of hotel properties requires significant management judgment, particularly in determining expected occupancy rates and discount rates[182].