Financial Performance - The company's revenue for the fiscal year ending June 30, 2024, was HKD 25,786 million, representing a 17% increase from HKD 22,023 million in the previous year[2] - The profit attributable to shareholders increased by 4% to HKD 3,581 million, compared to HKD 3,440 million in the prior year[2] - Operating profit surged by 71% to HKD 2,940 million, up from HKD 1,719 million year-over-year[2] - Earnings per share rose to HKD 11.01, a 4% increase from HKD 10.58 in the previous year[2] - The total proposed dividend increased by 7% to HKD 3.20 per share, compared to HKD 3.00 in the previous year[2] - The company reported a total comprehensive income of HKD 2,401,129 thousand attributable to shareholders for the period[12] - The company recorded a consolidated profit attributable to shareholders of HKD 3.580943 billion for the fiscal year ending June 30, 2024, representing a 4% increase from HKD 3.439799 billion in the previous year[42] - Basic earnings per share increased to HKD 11.01, compared to HKD 10.58 in the previous year[42] - Total revenue for the fiscal year increased by 15% to HKD 22.5 billion, driven by a HKD 1.7 billion increase in revenue from the property development and investment segment due to strong sales of residential projects in Singapore[42] Assets and Liabilities - Non-current assets totaled HKD 88,292,614 thousand, up from HKD 85,084,465 thousand in the previous year[5] - The company's cash and cash equivalents increased to HKD 14,908,645 thousand from HKD 12,812,620 thousand year-over-year[5] - The net current assets decreased to HKD 25,215,189 thousand from HKD 32,100,174 thousand in the previous year[5] - Total assets less current liabilities amounted to HKD 113,507,803 thousand, down from HKD 117,184,639 thousand[5] - The company's net assets increased to HKD 79,053,442 thousand from HKD 77,509,246 thousand year-over-year[5] - The total equity of the company increased to HKD 77,509,246 thousand as of June 30, 2023, reflecting an increase of HKD 174,853 thousand[10] - The company’s net assets increased to HKD 77,509,246 thousand, up from HKD 75,328,335 thousand in the previous year[10] - Trade receivables increased to HKD 1.197902 billion, compared to HKD 742.712 million in the previous year[37] - Trade payables decreased to HKD 915.748 million from HKD 998.369 million in the previous year[39] Revenue Sources - Revenue from property sales amounted to HKD 8,796,385, while hotel and leisure revenue was HKD 7,495,753 for the year ended June 30, 2024[23] - The total operating profit for property development and investment was HKD 3,325,033, compared to HKD 2,344,055 in the previous year, showing a growth of about 41.9%[20] - The group’s share of profits from associates and joint ventures was HKD 1,450,842, a significant increase from the previous year's figure[18] - The company’s interest income for the year was HKD 683,267, compared to HKD 454,135 in the previous year, marking an increase of approximately 50.4%[21] - The group reported a net gain from trading financial assets of HKD 999,379 for the year, compared to HKD 689,388 in the previous year[24] Expenses and Provisions - Employee costs for 2024 reached HKD 3,695,265 thousand, an increase from HKD 2,816,298 thousand in 2023, reflecting a significant rise in salaries and benefits[26] - The financing costs for the year were HKD 2,263,499, up from HKD 1,545,753 in the previous year, reflecting an increase of approximately 46.3%[21] - The group reported a tax provision of HKD 748,609 thousand for the year ending June 30, 2024, compared to HKD 163,310 thousand in 2023[32] - A provision for foreseeable losses of HKD 847,562 thousand was made for properties under development, up from HKD 281,242 thousand in 2023[31] - The company recognized a foreseeable loss provision of SGD 103.8 million (approximately HKD 60.18 million) for its Chinese development properties due to uncertain market conditions[45] Tax and Regulatory Matters - The company expects to implement the OECD Pillar Two rules starting from January 1, 2025, which may affect its tax obligations in certain jurisdictions[9] - The company is currently assessing the potential risks associated with the implementation of the OECD Pillar Two tax rules[9] - The estimated tax rate for Hong Kong profits tax remains at 16.5% for both 2024 and 2023[32] Strategic Outlook - The company maintains a cautious outlook for the fiscal year 2024/2025 due to geopolitical challenges and economic uncertainties, while also seeking growth opportunities in evolving markets[59] - The company plans to continue expanding its investment in health products through Manuka Health New Zealand Limited, although specific financial targets were not disclosed[16] - The company’s investment strategy focuses on high-quality companies expected to create long-term shareholder value, despite short-term volatility due to macroeconomic factors[44] Corporate Governance - The board of directors includes key members such as the Executive Chairman and the CEO[62] - The annual general meeting is scheduled for November 13, 2024[62] - The company will suspend the registration of share transfers from November 8, 2024, to November 13, 2024[62] - The deadline for share transfer registration is set for November 7, 2024, at 4:30 PM[62] - A proposed final dividend distribution date is set for December 3, 2024, pending shareholder approval[62]

Financial Performance - The group recorded an unaudited consolidated profit attributable to shareholders of HKD 1.4489 billion for the six months ended December 31, 2023, representing a 13% increase compared to the same period last year[24]. - Basic earnings per share increased to HKD 4.46, up from HKD 3.95 in the previous year[24]. - Total revenue for the six months increased by 41% to HKD 13.2939 billion, driven by a 24% increase in revenue from property development and investment[24]. - The group's pre-tax profit rose 65% to HKD 1.7928 billion for the six months ended December 31, 2023[24]. - GuocoLand's revenue grew by 61% to SGD 1.0664 billion (approximately HKD 6.1993 billion) due to strong performance in property development and investment[27]. - The property development segment's revenue increased by 67% to SGD 918 million (approximately HKD 5.3366 billion), primarily from phased sales of high-end residential projects in Singapore[27]. - The group’s total investment in the self-operated investment segment amounted to USD 1.819 billion as of December 31, 2023[26]. - The group reported a revenue of $1,701,849 thousand for the six months ended December 31, 2023, representing a 40.6% increase from $1,209,479 thousand in the same period of 2022[57]. - The operating profit before financing costs was $267,752 thousand, up 86.9% from $143,215 thousand year-on-year[57]. - The net profit for the period was $205,211 thousand, an increase of 52.8% compared to $134,272 thousand in the previous year[58]. Dividends and Shareholder Returns - The board declared an interim dividend of HKD 0.50 per share, totaling approximately HKD 165 million, consistent with the previous year's interim dividend[25]. - The company declared an interim dividend of $21,062 thousand for the first half of 2023, slightly down from $21,099 thousand in 2022, indicating a decrease of about 0.2%[86]. Costs and Expenses - Financing costs rose by 87% to SGD 113.5 million (approximately HKD 659.8 million) due to capitalized interest expenses and a high-interest environment[27]. - The financing costs increased to $140,163 thousand from $81,708 thousand, indicating a rise of 71.5%[57]. - The company recognized impairment losses of $59,700 thousand on right-of-use assets, property, plant, and equipment, and intangible assets due to lower-than-expected performance post-pandemic[84]. - Employee benefits, including salaries and wages, rose to $205,848 thousand in the first half of 2023, up from $178,083 thousand in 2022, marking an increase of approximately 15.6%[82]. Market Conditions - Overall prices of non-landed private residential properties in Singapore increased by 6.6% in 2023, a slowdown from the 8.1% rise in 2022[28]. - Developers in Singapore sold 9.1% fewer new private residential units in 2023 compared to 2022, attributed to macroeconomic conditions and high interest rates[28]. - In Malaysia, economic growth for Q4 2023 and the full year is estimated at 3.4% and 3.8% respectively, lower than expected due to weak global demand[29]. Assets and Liabilities - As of December 31, 2023, the company's total equity attributable to shareholders was HKD 60.2 billion, with a net debt of HKD 16.9 billion, resulting in a debt-to-equity ratio of 22%[35]. - The group's cash and short-term funds totaled HKD 40.2 billion, primarily denominated in HKD (30%), USD (30%), and SGD (12%)[35]. - The company reported a net current asset position of $3,285,246 thousand, down from $4,096,500 thousand[59]. - The total liabilities decreased from $39,675,393 as of June 30, 2023, to $34,274,354 as of December 31, 2023, marking a reduction of approximately 13.7%[60]. - The company reported bank loans totaling $4,693,998 thousand as of December 31, 2023, compared to $4,224,391 thousand as of June 30, 2023, indicating an increase of approximately 11.1%[97]. Shareholder Structure - Guo Linghai holds 2,300,000 shares, representing approximately 0.95% of the total issued shares[49]. - Guo Lingcan controls 242,008,117 shares, which accounts for 76.06% of the total issued shares[53]. - The company has a significant concentration of ownership, with major shareholders holding over 75% of the total issued shares[53]. - The company’s major shareholders include multiple entities with overlapping interests, indicating a complex ownership structure[56]. Cash Flow - The net cash generated from operating activities for the six months ended December 31, 2023, was $242.943 million, a decrease from $742.499 million in the same period last year[63]. - The net cash used in investing activities was $(102.038) million, compared to $(114.589) million in the previous year[63]. - The total cash and cash equivalents increased by $189.514 million, compared to an increase of $126.721 million in the previous year[63]. Financial Outlook - The financial outlook for 2024 anticipates a loosening of U.S. monetary policy, with GDP growth expected to slow compared to 2023[37]. - The group will focus on key fundamentals in managing its investment portfolio amidst short-term uncertainties while pursuing long-term sustainable growth strategies[37]. Other Financial Metrics - The total comprehensive income for the period was $294,572 thousand, significantly higher than $126,241 thousand in the prior year[58]. - The company recognized a fair value loss of $69,044 on equity investments during the reporting period[61]. - The company reported a foreign exchange gain of $100,103 from overseas subsidiaries, joint ventures, and associates during the period[61].

Financial Performance - Revenue for the six months ended December 31, 2023, was HKD 13,294 million, representing a 41% increase compared to HKD 9,431 million in the same period of 2022[2] - Profit attributable to shareholders for the same period was HKD 1,449 million, up 13% from HKD 1,284 million year-on-year[2] - Basic earnings per share increased to HKD 4.46, a 13% rise from HKD 3.95 in the previous year[2] - Total comprehensive income for the period was HKD 2,301 million, compared to HKD 984 million in the prior year, reflecting a significant increase[5] - The company reported a net profit attributable to shareholders of HKD 1,448,885,000 for the six months ended December 31, 2023, compared to HKD 1,283,915,000 for the same period in 2022, representing an increase of approximately 12.9%[32] - The basic earnings per share for the period was HKD 4.45, up from HKD 3.95 in the previous year, reflecting a growth of 12.7%[32] - The group reported a net profit of HKD 1,283,915 thousand for the period, reflecting an increase compared to the previous period[13] - The group's share of profits from associates and joint ventures was HKD 607,690 thousand, showing an increase of HKD 12,398 thousand[12] - The total comprehensive income for the period was HKD 984,390 thousand, with a significant contribution from foreign exchange differences amounting to HKD 516,481 thousand[14] Assets and Liabilities - Non-current assets as of December 31, 2023, amounted to HKD 87,164 million, up from HKD 85,063 million as of June 30, 2023[6] - Current liabilities increased to HKD 50,115 million from HKD 47,714 million, indicating a rise in short-term obligations[7] - Net current assets decreased to HKD 25,663 million from HKD 32,100 million, showing a reduction in liquidity[7] - The total equity attributable to shareholders was HKD 60,186 million, slightly up from HKD 59,492 million[7] - The group's total equity increased to HKD 77,487,759 thousand as of June 30, 2023, compared to HKD 75,459,159 thousand as of June 30, 2022[11] - The group’s retained earnings increased to HKD 69,911,985 thousand, up from HKD 67,529,602 thousand in the previous year[11] - The group’s net assets attributable to shareholders rose to HKD 59,491,609 thousand, compared to HKD 57,848,418 thousand in the previous year[11] - Total trade receivables increased to HKD 852,917,000 as of December 31, 2023, from HKD 742,712,000 as of June 30, 2023, marking a rise of 14.9%[34] - Trade payables increased to HKD 1,093,767,000 as of December 31, 2023, from HKD 998,369,000 as of June 30, 2023, representing a growth of 9.5%[36] - The company’s total assets increased to HKD 5,594,318,000 as of December 31, 2023, compared to HKD 5,022,680,000 as of June 30, 2023, indicating a growth of 11.4%[36] Dividends and Shareholder Information - The company maintained an interim dividend of HKD 0.50 per share, consistent with the previous year[2] - The company declared an interim dividend of HKD 0.50 per share, totaling approximately HKD 164,525,000, consistent with the previous year's interim dividend[30] - The company will suspend the registration of share transfers on March 12, 2024[57] - To qualify for the interim dividend, all share transfer documents must be submitted by March 11, 2024, at 4:30 PM[57] - The address for share registration is 1712-1716, 17th Floor, Hopewell Centre, 183 Queen's Road East, Wanchai, Hong Kong[57] Operational Highlights - The operating profit before tax for the period was HKD 2,132,987, with a breakdown of HKD 361,670 from self-investment, HKD 994,265 from property development and investment, and HKD 632,017 from hotel and leisure[20][22] - Employee costs totaled HKD 1,607,971 for the current period, compared to HKD 1,388,637 in the previous year, reflecting an increase of about 16%[26] - The revenue from property sales was HKD 5,338,970, while hotel and leisure revenue was HKD 3,091,726, contributing significantly to the overall revenue[23] - The company plans to continue expanding its market presence in Singapore, China, Malaysia, and Hong Kong through property development and investment initiatives[19] - The company is focused on enhancing its financial services segment, which includes commercial and retail banking, Islamic banking, and insurance services[19] - Future outlook includes ongoing investments in new technologies and products to drive growth and market expansion[19] Financial Challenges - The finance costs for the six months ended December 31, 2023, amounted to HKD 1,136,331, an increase from HKD 663,724 in the previous year, indicating a rise of approximately 71%[22][25] - The group reported a net loss from trading financial assets of HKD (388,518) for the current period, compared to a loss of HKD (347,161) in the previous year[24] - The impairment losses recognized for right-of-use assets amounted to HKD 465,468,000, while impairment losses for other property, plant, and equipment were HKD 216,488,000, reflecting the impact of COVID-19 on performance[28] - The company’s total tax expense for the period was HKD 189,771,000, compared to HKD 40,291,000 in the previous year, showing a substantial increase due to higher profits[29] Corporate Governance - The board of directors includes Mr. Guo Linghai as Executive Chairman and Mr. Zhou Xiangan as Executive Director[57] - Independent non-executive directors include Mr. David M. Norman, Mr. Huang Jiachun, and Mr. Paul J. Brough[57]

Financial Performance - Revenue for 2023 reached HKD 22,023 million, a 40% increase from HKD 15,758 million in 2022[30]. - Profit attributable to shareholders increased by 73% to HKD 3,400 million from HKD 1,960 million[30]. - Earnings per share rose by 73% to HKD 10.46 compared to HKD 6.03 in the previous year[30]. - Operating profit for 2023 was HKD 1,719 million, up 49% from HKD 1,153 million in 2022[30]. - Total revenue growth of 31% was reported, with earnings reaching HKD 19,508 million compared to HKD 14,905 million in 2022[30]. - The company reported a 73% year-on-year increase in consolidated profit attributable to shareholders, reaching HKD 3.400 billion for the fiscal year 2023[35]. - The company’s total assets for 2023 were reported at HKD 132.624 billion, with total liabilities of HKD 55.290 billion[32]. - The company’s total equity attributable to shareholders for 2023 was HKD 59.338 billion, reflecting a stable financial position[32]. Dividends - GuocoGroup reported a proposed final dividend of HKD 2.50 per share, subject to shareholder approval at the annual general meeting on November 16, 2023[6]. - Proposed final dividend increased to HKD 2.50 from HKD 1.50, resulting in a total dividend of HKD 3.00, a 50% increase[30]. - The company reported a mid-term dividend of HKD 0.50 per share, totaling HKD 162,331,000, consistent with the previous year[133]. Business Segments - The company operates in four core business segments: proprietary investment, property development and investment, hotel and leisure business, and financial services[21]. - GuocoGroup's subsidiaries and investment operations are primarily located in Hong Kong, China, Singapore, Malaysia, the UK, and Australasia[21]. - The company holds a 100% stake in GuocoLand Limited, which is involved in property development and investment across multiple regions[8]. - GuocoGroup has a 53.3% stake in The Rank Group Plc, which operates in the hotel and leisure sector[8]. - The company has a 19.8% stake in Chengdu Bank Co., Ltd., enhancing its financial services portfolio[11]. - GuocoGroup's financial services include 100% ownership of Hong Leong Bank Vietnam Limited and Hong Leong Bank (Cambodia) Plc.[10]. Investment Strategy - The company has a diversified investment strategy across various sectors and regions, aiming for growth and expansion[21]. - The group aims to achieve substantial risk-adjusted returns and capital appreciation through investments in global capital markets and direct investments[22]. - The property investment portfolio includes significant assets in Singapore, China, and Malaysia, with notable projects like Guoco Tower and Damansara City[22]. - The group has a robust risk management system supported by advanced information systems and technology[22]. - The company focuses on creating unique mixed-use developments and high-quality residential properties to enhance local communities[22]. Employee and Governance - The group has a total of 10,500 employees, with ongoing training programs to enhance employee capabilities and quality[76]. - The board consists of an executive chairman, executive directors, non-executive directors, and independent non-executive directors, ensuring a diverse and independent governance structure[86][87]. - The board is committed to maintaining high standards of corporate governance and has reviewed compliance with applicable corporate governance codes as of June 30, 2023[85]. - The company has implemented a whistleblowing policy to address misconduct, fraud, or violations, which is reviewed annually for effectiveness[97]. Risk Management - The company has implemented a corporate risk management framework to continuously identify risks, including environmental, social, and governance risks, and assess their potential impact and occurrence probability[115]. - The audit committee monitors the effectiveness of the risk management and internal control systems on a quarterly basis[115]. - The group maintains a cautious approach in its treasury department, controlling interest expenses and foreign exchange risks despite market volatility[49]. Market Outlook - The global economic outlook remains uncertain, but the group is cautiously optimistic about future growth, focusing on risk management and cash flow control[47]. - The economic environment in the UK continues to exert pressure on hotel room rates and occupancy levels, as well as on the earnings multiples of casinos[185]. Corporate Social Responsibility - Charitable donations for the year amounted to $828,000, an increase from $620,000 in 2022[134]. - The company aims to integrate environmental, social, and governance (ESG) considerations into its operations and decision-making processes[83]. Audit and Compliance - The independent auditor has issued an unqualified opinion on the group's continuous related party transactions, confirming compliance with the Hong Kong Listing Rules[177]. - The audit report is signed by the audit partner, ensuring accountability for the audit opinion provided[196]. - The auditor evaluates the appropriateness of accounting policies adopted by the board and the reasonableness of accounting estimates and related disclosures[195].

[Financial Highlights](index=1&type=section&id=Financial%20Highlights) The Group achieved significant financial growth for the year ended June 30, 2023, with turnover and revenue increasing by 40% and 31% respectively, and profit attributable to equity holders surging by 73% to HKD 3.4 billion, alongside corresponding increases in EPS and dividends per share FY2023 Financial Highlights | Metric | 2023 (HKD Million) | 2022 (HKD Million) | Increase / (Decrease) | | :----------------------------------------- | :----------------- | :----------------- | :-------------------- | | Turnover | 22,023 | 15,758 | 40% | | Revenue | 19,508 | 14,905 | 31% | | Operating Profit | 1,719 | 1,153 | 49% | | Profit Attributable to Equity Holders of the Company | 3,400 | 1,960 | 73% | | Earnings Per Share (HKD) | 10.46 | 6.03 | 73% | | Dividend Per Share (HKD) | | | | | - Interim | 0.50 | 0.50 | 0% | | - Proposed Final | 2.50 | 1.50 | 67% | | - Total | 3.00 | 2.00 | 50% | | Equity Per Share Attributable to Equity Holders of the Company | 180.33 | 175.41 | 3% | - The Group's financial performance for the year ended June 30, 2023, showed **significant growth**, with turnover and revenue increasing by **40%** and **31%** respectively[2](index=2&type=chunk) - **Profit attributable to equity holders** substantially increased by **73%** to **HKD 3.4 billion**, with corresponding improvements in earnings per share and dividends per share[2](index=2&type=chunk) [Results](index=2&type=section&id=Results) The Group achieved significant annual profit growth in FY2023, driven by strong turnover and revenue performance and a substantial increase in profit attributable to equity holders, with total comprehensive income turning positive despite net losses from exchange differences and fair value changes in equity investments [Consolidated Statement of Profit or Loss](index=2&type=section&id=Consolidated%20Statement%20of%20Profit%20or%20Loss) The Group achieved substantial growth in both turnover and revenue in FY2023, with significant increases in operating profit and profit attributable to equity holders, and basic and diluted earnings per share reaching HKD 10.46 Key Data from FY2023 Consolidated Statement of Profit or Loss | Metric | 2023 (HKD Thousand) | 2022 (HKD Thousand) | | :----------------------------------------- | :------------------ | :------------------ | | Turnover | 22,022,812 | 15,758,258 | | Revenue | 19,508,239 | 14,904,912 | | Operating Profit | 1,719,358 | 1,152,767 | | Profit Before Tax for the Year | 3,830,314 | 3,629,982 | | Profit for the Year | 3,667,004 | 3,300,521 | | Profit Attributable to Equity Holders of the Company | 3,400,274 | 1,960,186 | | Basic Earnings Per Share (HKD) | 10.46 | 6.03 | | Diluted Earnings Per Share (HKD) | 10.46 | 6.03 | - The Group's **turnover** and **revenue** both saw substantial increases in FY2023, alongside significant growth in **operating profit** and **profit attributable to equity holders**[4](index=4&type=chunk) - **Basic and diluted earnings per share** reached **HKD 10.46** for the year[4](index=4&type=chunk) [Consolidated Statement of Comprehensive Income](index=3&type=section&id=Consolidated%20Statement%20of%20Comprehensive%20Income) The Group's profit for the year increased in FY2023, but other comprehensive income recorded a net loss due to fair value changes in equity investments and exchange differences on translating foreign operations, resulting in total comprehensive income of HKD 2.700 billion, a positive shift from the prior year Key Data from FY2023 Consolidated Statement of Comprehensive Income | Metric | 2023 (HKD Thousand) | 2022 (HKD Thousand) | | :--------------------------------------------------------- | :------------------ | :------------------ | | Profit for the Year | 3,667,004 | 3,300,521 | | Other Comprehensive Income for the Year, Net of Tax | (967,394) | (4,888,533) | | Total Comprehensive Income for the Year | 2,699,610 | (1,588,012) | | Total Comprehensive Income for the Year Attributable to Equity Holders of the Company | 2,401,129 | (1,924,392) | - The Group's **profit for the year increased**, but **other comprehensive income** recorded a **net loss** due to fair value changes in equity investments and exchange differences on translating foreign operations[5](index=5&type=chunk)[6](index=6&type=chunk) - **Total comprehensive income for the year** was **HKD 2.69961 billion**, representing a positive turnaround from the prior year's negative figure[5](index=5&type=chunk)[6](index=6&type=chunk) [Consolidated Statement of Financial Position](index=4&type=section&id=Consolidated%20Statement%20of%20Financial%20Position) As of June 30, 2023, the Group's total assets and total equity both increased, with stable non-current and current asset structures and a significant rise in net current assets, indicating a robust financial position Key Data from FY2023 Consolidated Statement of Financial Position | Metric | 2023 (HKD Thousand) | 2022 (HKD Thousand) | | :----------------------------------------- | :------------------ | :------------------ | | Non-current Assets | 84,909,612 | 82,640,996 | | Current Assets | 47,714,289 | 47,605,090 | | Current Liabilities | 15,614,115 | 18,600,597 | | Net Current Assets | 32,100,174 | 29,004,493 | | Total Assets Less Current Liabilities | 117,009,786 | 111,645,489 | | Non-current Liabilities | 39,675,393 | 36,317,154 | | Net Assets | 77,334,393 | 75,328,335 | | Total Equity Attributable to Equity Holders of the Company | 59,338,243 | 57,717,594 | | Total Equity | 77,334,393 | 75,328,335 | - As of June 30, 2023, the Group's **total assets** and **total equity** both increased, with **net current assets** showing a significant rise, reflecting a strong financial position[7](index=7&type=chunk) [Notes](index=5&type=section&id=Notes) This section details the Group's accounting policies, financial statement preparation basis, segment performance, revenue composition, profit before tax breakdown, taxation, dividends, earnings per share, and trade and other receivables/payables, providing supplementary information for understanding the Group's financial position and operating results [1. Accounting Policies and Basis of Preparation](index=5&type=section&id=1.%20Accounting%20Policies%20and%20Basis%20of%20Preparation) The Group's financial statements comply with Hong Kong Financial Reporting Standards and Companies Ordinance disclosure requirements, prepared on a historical cost basis with revaluation or fair value measurement for investment properties and certain financial instruments, involving key management judgments, estimates, and assumptions [(a) Statement of Compliance](index=5&type=section&id=%28a%29%20Statement%20of%20Compliance) - Financial statements are prepared in accordance with all applicable Hong Kong Financial Reporting Standards and the disclosure requirements of the Hong Kong Companies Ordinance, and comply with the applicable disclosure provisions of the Rules Governing the Listing of Securities on The Stock Exchange of Hong Kong Limited[8](index=8&type=chunk) [(b) Basis of Preparation of Financial Statements](index=5&type=section&id=%28b%29%20Basis%20of%20Preparation%20of%20Financial%20Statements) - Financial statements are prepared on a **historical cost basis**, except for investment properties measured at revalued amounts and certain financial instruments measured at fair value[9](index=9&type=chunk) - Management is required to make **judgments, estimates, and assumptions** in preparing the financial statements, and actual results may differ from these estimates[9](index=9&type=chunk) [(c) HKD Amounts](index=5&type=section&id=%28c%29%20HKD%20Amounts) - The Group's consolidated financial statements are presented in USD, with HKD figures in the financial highlights and results translated at the applicable exchange rate at the financial year-end solely for presentation purposes[10](index=10&type=chunk) [2. Amendments to Accounting Policies](index=6&type=section&id=2.%20Amendments%20to%20Accounting%20Policies) The Group adopted amendments to Hong Kong Financial Reporting Standards issued by the Hong Kong Institute of Certified Public Accountants during the current accounting period, with no significant impact on the Group's current or prior period results and financial position - The Group has adopted amendments to **HKAS 16 (Revised)** and **HKAS 37 (Revised)**, which had no significant impact on the results and financial position for the current or prior periods[11](index=11&type=chunk) [3. Segment Reporting](index=6&type=section&id=3.%20Segment%20Reporting) The Group operates four main reportable segments: Principal Investments, Property Development and Investment, Hotel and Leisure, and Financial Services, each independently managed; FY2023 saw significant changes in segment revenue and profit before tax, with Property Development and Investment and Hotel and Leisure being the largest contributors [Overview of Segment Operations](index=6&type=section&id=Overview%20of%20Segment%20Operations) - The Group has four main reportable segments: **Principal Investments** (debt, equity, direct investments, and treasury operations), **Property Development and Investment** (residential and commercial property development, rental income), **Hotel and Leisure** (hotel ownership/management, gaming and leisure operations), and **Financial Services** (commercial and retail banking, insurance, fund management, etc)[12](index=12&type=chunk) - Other segments include investments in Bass Strait oil and gas production concessions and Manuka Health health product manufacturing, promotion, and distribution, which do not meet the quantitative thresholds for reportable segments[12](index=12&type=chunk) [(a) Reported Segment Revenue and Profit or Loss](index=7&type=section&id=%28a%29%20Reported%20Segment%20Revenue%20and%20Profit%20or%20Loss) FY2023 Reported Segment Turnover and Profit/(Loss) Before Tax | Segment | Turnover (HKD Thousand) | Profit/(Loss) Before Tax (HKD Thousand) | | :------------------------- | :---------------------- | :-------------------------------------- | | Principal Investments | 3,555,946 | 1,553,503 | | Property Development and Investment | 8,691,033 | 1,503,234 | | Hotel and Leisure | 9,188,564 | (786,178) | | Financial Services | - | 1,231,968 | | Others | 587,269 | 327,787 | | **Total** | **22,022,812** | **3,830,314** | - In FY2023, **Principal Investments** and **Property Development and Investment** segments were significant contributors to profit before tax, while the **Hotel and Leisure** segment recorded a loss before tax[15](index=15&type=chunk)[16](index=16&type=chunk) FY2022 Reported Segment Turnover and Profit/(Loss) Before Tax | Segment | Turnover (HKD Thousand) | Profit/(Loss) Before Tax (HKD Thousand) | | :------------------------- | :---------------------- | :-------------------------------------- | | Principal Investments | 1,469,276 | (430,662) | | Property Development and Investment | 5,578,482 | 3,207,299 | | Hotel and Leisure | 8,168,886 | 143,823 | | Financial Services | - | 1,151,449 | | Others | 541,614 | (441,927) | | **Total** | **15,758,258** | **3,629,982** | - In FY2022, **Property Development and Investment** and **Financial Services** were the primary profit drivers, with **Principal Investments** and **Others** segments reporting losses before tax[17](index=17&type=chunk)[18](index=18&type=chunk) [(b) Reconciliation of Reported Segment Revenue, Finance Costs and Interest Income](index=9&type=section&id=%28b%29%20Reconciliation%20of%20Reported%20Segment%20Revenue%2C%20Finance%20Costs%20and%20Interest%20Income) FY2023 Reconciliation of Segment Revenue, Finance Costs and Interest Income | Metric | 2023 (HKD Thousand) | 2022 (HKD Thousand) | | :--------------------------------- | :------------------ | :------------------ | | Reported Segment Revenue | 19,591,982 | 14,954,806 | | Elimination of Inter-segment Revenue | (83,743) | (49,894) | | Consolidated Revenue | 19,508,239 | 14,904,912 | | Reported Finance Costs | 1,605,675 | 1,161,012 | | Elimination of Inter-segment Finance Costs | (59,922) | (24,570) | | Consolidated Finance Costs | 1,545,753 | 1,136,442 | | Reported Interest Income | 454,135 | 173,713 | | Elimination of Inter-segment Interest Income | (59,922) | (24,571) | | Consolidated Interest Income | 394,213 | 149,142 | - The reconciliation shows the adjustments for inter-segment transactions to arrive at the **consolidated revenue, finance costs, and interest income** for the Group[19](index=19&type=chunk) [4. Turnover and Revenue](index=10&type=section&id=4.%20Turnover%20and%20Revenue) The Group's FY2023 turnover and revenue both achieved significant growth, primarily driven by strong property sales, hotel and leisure operations, and increased interest and dividend income - The company's principal activities include **investment holding and investment management**, with subsidiaries primarily engaged in principal investments, property development and investment, and hotel and leisure operations[20](index=20&type=chunk) FY2023 Turnover and Revenue by Key Category | Category | 2023 (HKD Thousand) | 2022 (HKD Thousand) | | :------------------------------------- | :------------------ | :------------------ | | Revenue from Property Sales | 7,495,753 | 4,666,887 | | Revenue from Hotel and Leisure | 9,173,394 | 8,159,848 | | Interest Income | 394,213 | 149,142 | | Dividend Income | 820,719 | 584,919 | | Rental Income from Properties | 962,222 | 727,856 | | Revenue from Sales of Goods | 587,198 | 541,614 | | Others | 74,740 | 74,646 | | **Revenue** | **19,508,239** | **14,904,912** | | Proceeds from Disposal of Securities Investments | 2,514,573 | 853,346 | | **Turnover** | **22,022,812** | **15,758,258** | - **Revenue from property sales** and **hotel and leisure** were the largest contributors to the Group's revenue in FY2023, showing substantial increases from the prior year[21](index=21&type=chunk) [5. Other Income / (Losses) Net](index=10&type=section&id=5.%20Other%20Income%20%2F%20%28Losses%29%20Net) The Group's net other income in FY2023 turned profitable from a prior year loss, primarily driven by net realized and unrealized gains from trading financial assets and foreign exchange contracts, offsetting net losses from derivative financial instruments FY2023 Other Income / (Losses) Net | Category | 2023 (HKD Thousand) | 2022 (HKD Thousand) | | :--------------------------------------------------------- | :------------------ | :------------------ | | Net Realized and Unrealized Gains / (Losses) from Trading Financial Assets | 689,388 | (844,174) | | Net Realized and Unrealized (Losses) / Gains from Derivative Financial Instruments | (1,285) | 355,098 | | Net Gains from Foreign Exchange Contracts | 172,878 | 95,631 | | Other Exchange Gains / (Losses) | 10,735 | (178,820) | | Net Loss on Disposal of Property, Plant and Equipment | (8,338) | (34,322) | | Loss on Disposal of Intangible Assets | (447) | (7,876) | | Provision Reversed in Prior Year | - | 44,819 | | Gain on Disposal of Subsidiaries | - | 104,473 | | Net Gain on Liquidation of Subsidiaries | 60,784 | - | | Additional Consideration from Disposal of a Subsidiary in Prior Year | - | 91,520 | | Remeasurement Gain on Existing Interest in Other Investments | - | 13,415 | | Others | 53,450 | 44,449 | | **Total** | **977,165** | **(315,787)** | - The Group's **net other income** turned into a **gain of HKD 977.165 million** in FY2023, a significant improvement from the prior year's net loss, primarily driven by gains from trading financial assets and foreign exchange contracts[22](index=22&type=chunk) [6. Profit Before Tax for the Year](index=11&type=section&id=6.%20Profit%20Before%20Tax%20for%20the%20Year) Profit before tax for the year was influenced by finance costs, staff costs, depreciation, amortization, and significant net impairment losses, particularly in hotel and leisure operations, Manuka Health, and joint ventures due to market conditions and underperformance [Finance Costs](index=11&type=section&id=Finance%20Costs) FY2023 Finance Costs | Category | 2023 (HKD Thousand) | 2022 (HKD Thousand) | | :--------------------------------- | :------------------ | :------------------ | | Interest on Bank Loans and Other Borrowings | 1,555,258 | 1,149,433 | | Interest on Lease Liabilities | 365,205 | 384,902 | | Other Borrowing Costs | 71,668 | 71,092 | | Total Borrowing Costs | 1,992,131 | 1,605,427 | | Less: Borrowing Costs Capitalized | (446,378) | (468,985) | | **Consolidated Finance Costs** | **1,545,753** | **1,136,442** | - **Consolidated finance costs** increased to **HKD 1.546 billion** in FY2023, with capitalized borrowing costs ranging from **1.90% to 5.63%** annual interest rate[23](index=23&type=chunk) [Staff Costs](index=11&type=section&id=Staff%20Costs) FY2023 Staff Costs | Category | 2023 (HKD Thousand) | 2022 (HKD Thousand) | | :----------------------------------------- | :------------------ | :------------------ | | Salaries, Wages and Other Benefits | 2,701,500 | 2,414,604 | | Contributions to Defined Contribution Retirement Plans | 105,512 | 97,208 | | Recognized Expense in Respect of Defined Benefit Retirement Plans | 1,340 | 4,362 | | Share-based Payment Expense / (Reversal) | 7,946 | (3,585) | | **Total** | **2,816,298** | **2,512,589** | - **Total staff costs** increased to **HKD 2.816 billion** in FY2023, primarily driven by higher salaries, wages, and other benefits[24](index=24&type=chunk) [Other Items](index=12&type=section&id=Other%20Items) FY2023 Other Items Key Data | Category | 2023 (HKD Thousand) | 2022 (HKD Thousand) | | :--------------------------------------------------------- | :------------------ | :------------------ | | Depreciation — Other Property, Plant and Equipment | 518,289 | 596,600 | | Depreciation — Right-of-use Assets | 285,708 | 393,366 | | Net Impairment Loss Recognized — Other Property, Plant and Equipment | 446,958 | 74,795 | | Net Impairment Loss Recognized — Intangible Assets | 262,224 | 48,977 | | Net Impairment Loss Recognized — Right-of-use Assets | 353,850 | 284,297 | | Net Impairment Loss Recognized — Goodwill | 58,590 | 486,817 | | Net Impairment Loss Recognized — Interests in Joint Ventures | 252,883 | - | | Amortization — Customer Relationships, Licenses and Brands | 39,258 | 106,026 | | Amortization — Gaming Licenses and Brands | 956 | 659 | | Amortization — Bass Strait Oil and Gas Concession | 45,214 | 24,359 | | Amortization — Other Intangible Assets | 196,582 | 226,965 | | Net Impairment of Properties Under Development and Properties Held for Sale | 281,242 | - | | Cost of Inventories Recognized in Cost of Sales | 328,783 | 314,320 | | Cost of Properties Under Development and Properties Held for Sale Recognized in Cost of Sales | 5,791,595 | 2,864,730 | | Auditor's Remuneration — Audit Services | 29,683 | 28,352 | | Net Rental Income | (725,590) | (548,440) | | Share of (Profit) / Loss of Associates and Joint Ventures | (1,288,889) | (1,104,167) | - **Significant impairment expenses** were recognized in hotel and gaming premises, including **HKD 375.3 million** for right-of-use assets and **HKD 487.8 million** for other property, plant, and equipment, due to underperformance and closure decisions[26](index=26&type=chunk) - **Manuka Health** recognized a **goodwill impairment loss of HKD 58.6 million** due to global transport, logistics, supply chain disruptions, and negative impacts on the global economy[28](index=28&type=chunk) - The Group recognized an **impairment loss of HKD 252.9 million** on an investment in a joint venture, reflecting a cautious outlook and market conditions in the UK[28](index=28&type=chunk) [7. Taxation](index=15&type=section&id=7.%20Taxation) The Group's total taxation significantly decreased in FY2023, primarily due to the origination and reversal of deferred tax temporary differences and the impact of tax rate changes on deferred tax balances FY2023 Taxation Details | Category | 2023 (HKD Thousand) | 2022 (HKD Thousand) | | :----------------------------- | :------------------ | :------------------ | | Current Tax — Hong Kong Profits Tax | 525 | 3,240 | | Current Tax — Overseas | 529,479 | 494,623 | | Deferred Tax | (366,694) | (168,402) | | **Total** | **163,310** | **329,461** | - **Hong Kong Profits Tax** is calculated at a rate of **16.5%**, while overseas subsidiary taxes are based on applicable local tax rates[29](index=29&type=chunk) - The Group is subject to **progressive land appreciation tax** ranging from **30% to 60%** on the appreciation of land value from the sale of developed properties[30](index=30&type=chunk) [8. Dividends](index=16&type=section&id=8.%20Dividends) The Group's total dividends payable/paid significantly increased in FY2023, mainly due to the proposed final dividend rising from HKD 1.50 to HKD 2.50 per share FY2023 Dividend Details | Category | 2023 (HKD Thousand) | 2022 (HKD Thousand) | | :----------------------------------------- | :------------------ | :------------------ | | Interim Dividend (HKD 0.50 per share) | 162,331 | 162,989 | | Proposed Final Dividend (HKD 2.50 / HKD 1.50 per share) | 822,631 | 493,579 | | **Total Payable/Paid for the Year** | **984,962** | **656,568** | | Final Dividend Paid in Prior Year | 487,532 | 490,802 | - The **total dividends payable/paid** for the year increased to **HKD 984.962 million**, primarily driven by a higher proposed final dividend[31](index=31&type=chunk) [9. Earnings Per Share](index=16&type=section&id=9.%20Earnings%20Per%20Share) The Group's basic and diluted earnings per share both significantly increased to HKD 10.46 in FY2023, consistent with the growth in profit attributable to equity holders of the Company [(a) Basic Earnings Per Share](index=16&type=section&id=%28a%29%20Basic%20Earnings%20Per%20Share) - **Basic earnings per share** was **HKD 10.46** (2022: HKD 6.03), calculated based on profit attributable to equity holders of the Company of **HKD 3.4003 billion** and a weighted average of **325.2 million** ordinary shares outstanding[32](index=32&type=chunk) [(b) Diluted Earnings Per Share](index=16&type=section&id=%28b%29%20Diluted%20Earnings%20Per%20Share) - There were no potential dilutive ordinary shares outstanding during the year, thus **diluted earnings per share** was equal to **basic earnings per share**[33](index=33&type=chunk) [10. Trade and Other Receivables](index=17&type=section&id=10.%20Trade%20and%20Other%20Receivables) As of June 30, 2023, the Group's total trade and other receivables slightly decreased, with an increase in trade receivables offset by reductions in other receivables and fair value derivative financial instruments FY2023 Trade and Other Receivables | Category | 2023 (HKD Thousand) | 2022 (HKD Thousand) | | :----------------------------------------- | :------------------ | :------------------ | | Trade Receivables | 742,712 | 714,543 | | Other Receivables, Deposits and Prepayments | 813,784 | 844,331 | | Derivative Financial Instruments (at fair value) | 106,805 | 218,375 | | Interest Receivable | 62,100 | 10,199 | | **Total** | **1,725,401** | **1,787,448** | - **Total trade and other receivables** slightly decreased to **HKD 1.725 billion** as of June 30, 2023, with an increase in trade receivables partially offset by a decrease in derivative financial instruments[34](index=34&type=chunk) FY2023 Ageing Analysis of Trade Receivables | Ageing | 2023 (HKD Thousand) | 2022 (HKD Thousand) | | :----------------- | :------------------ | :------------------ | | Within One Month | 642,952 | 673,200 | | One to Three Months | 46,107 | 23,229 | | Over Three Months | 53,653 | 18,114 | | **Total** | **742,712** | **714,543** | - The majority of **trade receivables** were **within one month** as of June 30, 2023, indicating healthy collection cycles[35](index=35&type=chunk) [11. Trade and Other Payables](index=18&type=section&id=11.%20Trade%20and%20Other%20Payables) As of June 30, 2023, the Group's total trade and other payables slightly increased, primarily due to higher other payables and accrued operating expenses, while trade payables remained stable FY2023 Trade and Other Payables | Category | 2023 (HKD Thousand) | 2022 (HKD Thousand) | | :----------------------------------------- | :------------------ | :------------------ | | Trade Payables | 998,369 | 978,387 | | Other Payables and Accrued Operating Expenses | 3,915,461 | 3,767,821 | | Derivative Financial Instruments (at fair value) | 41,507 | 30,141 | | Amounts Due to Fellow Subsidiaries | 67,343 | 37,264 | | Amounts Due to Associates and Joint Ventures | - | 243 | | **Total** | **5,022,680** | **4,813,856** | - **Total trade and other payables** increased to **HKD 5.023 billion** as of June 30, 2023, mainly driven by an increase in other payables and accrued operating expenses[36](index=36&type=chunk) FY2023 Trade Payables Ageing Analysis | Ageing | 2023 (HKD Thousand) | 2022 (HKD Thousand) | | :----------------- | :------------------ | :------------------ | | Within One Month | 475,277 | 676,266 | | One to Three Months | 416,186 | 189,709 | | Over Three Months | 106,906 | 112,412 | | **Total** | **998,369** | **978,387** | - The ageing analysis of **trade payables** shows a shift, with a decrease in payables within one month and an increase in payables due in one to three months[37](index=37&type=chunk) [Dividends](index=19&type=section&id=Dividends) The Board of Directors recommends a final dividend of HKD 2.50 per share for the financial year ended June 30, 2023, totaling HKD 823 million, payable on December 5, 2023, subject to shareholder approval - The Board recommends a **final dividend of HKD 2.50 per share** for FY2023, totaling **HKD 823 million**, to be paid on **December 5, 2023**[38](index=38&type=chunk) [Management Discussion and Analysis](index=19&type=section&id=Management%20Discussion%20and%20Analysis) The Group's profit attributable to equity holders surged by 73% in FY2023, primarily due to strong performance in Principal Investments, Property Development and Investment, Financial Services, and Other segments, though partially offset by impairment losses in Hotel and Leisure; Group revenue grew by 31%, driven by property sales and hotel business recovery [Financial Performance](index=19&type=section&id=Financial%20Performance) The Group's consolidated profit attributable to equity holders increased by 73% to HKD 3.4003 billion in FY2023, with basic earnings per share at HKD 10.46, and most major segments achieving profit before tax growth, except for the Hotel and Leisure segment which recorded a loss due to impairment expenses - The Group's **consolidated profit attributable to equity holders** increased by **73%** to **HKD 3.4003 billion** in FY2023[39](index=39&type=chunk) - **Basic earnings per share** was **HKD 10.46**, up from HKD 6.03 in the prior year[39](index=39&type=chunk) FY2023 Profit/(Loss) Before Tax by Segment | Segment | Profit/(Loss) Before Tax (HKD Billion) | | :------------------------- | :------------------------------------- | | Principal Investments | 1.5535 | | Property Development and Investment | 1.5032 | | Financial Services | 1.232 | | Others | 0.3278 | | Hotel and Leisure | (0.7862) | | **Consolidated Profit Before Tax** | **3.8303** | - Group **revenue grew by 31% to HKD 19.5 billion**, primarily driven by the Property Development and Investment segment (Singapore residential project sales) and the Hotel and Leisure segment (improved performance and industry recovery)[39](index=39&type=chunk) [Business Review](index=19&type=section&id=Business%20Review) The Group's business segments showed varied performance in FY2023: Principal Investments benefited from valuations and dividend income, Property Development and Investment saw increased sales and rental income from Singapore projects, The Clermont Hotel Group achieved a turnaround, while The Rank Group Plc recorded a loss due to impairment; Financial Services continued to grow, and Other businesses also performed well [Principal Investments](index=19&type=section&id=Principal%20Investments) - The Principal Investments segment recorded a **profit before tax of HKD 1.5535 billion** in FY2023, primarily from unrealized mark-to-market valuations and dividend income[40](index=40&type=chunk) - The investment strategy prioritizes fundamental business levels, focusing on investing in quality companies expected to create **long-term shareholder value**[40](index=40&type=chunk) - The Group formed a joint venture, **GuoLine Advisory Pte. Ltd. (GAPL)**, with its parent company to manage discretionary investment portfolios and expand investment capabilities[41](index=41&type=chunk) [Property Development and Investment](index=20&type=section&id=Property%20Development%20and%20Investment) GuocoLand Limited's revenue surged by 60% in FY2023, driven by Singapore residential project sales and increased investment property rental income; however, finance costs significantly rose due to Singapore interest rate hikes, leading to a 47% decrease in profit attributable to equity holders, while market outlook indicates increased residential supply in Singapore, a shrinking Chinese property market, and slower Malaysian economic growth [GuocoLand Limited](index=20&type=section&id=GuocoLand%20Limited) - **GuocoLand's revenue increased by 60% year-on-year** to **SGD 1.5444 billion** (approximately HKD 8.8706 billion), mainly due to higher sales from Singapore residential projects (Meyer Mansion, Midtown Modern, Lentor Modern) and delivery of Chongqing projects[42](index=42&type=chunk) - **Investment property revenue increased by 35%** to **SGD 169.6 million** (approximately HKD 974.1 million), benefiting from rental income from Guoco Tower, Guoco Changfeng City South Tower in Shanghai, and Guoco Midtown offices[42](index=42&type=chunk) - **Finance costs increased by 59%** to **SGD 149.7 million** (approximately HKD 859.8 million), primarily due to consecutive interest rate hikes in Singapore[42](index=42&type=chunk) - **Profit attributable to equity holders decreased by 47%** to **SGD 207.1 million** (approximately HKD 1.1895 billion), mainly impacted by rising finance costs and reduced fair value gains on investment properties[42](index=42&type=chunk) - The Singapore non-landed private residential market faces **increased unsold units and future supply**, with high interest rates expected to curb demand and price appreciation, while the Chinese property market is contracting and Malaysian economic growth is slowing[42](index=42&type=chunk)[43](index=43&type=chunk) [Hotel and Leisure](index=21&type=section&id=Hotel%20and%20Leisure) Hotel and leisure businesses showed mixed performance: The Clermont Hotel Group achieved a turnaround, benefiting from rebranding, strong market demand, and cost control, while The Rank Group Plc swung to a loss due to energy costs, wage inflation, and impairment charges, despite strong digital business and Enracha casino performance [The Clermont Hotel Group (formerly GLH Hotels Group Limited)](index=21&type=section&id=The%20Clermont%20Hotel%20Group%20%28formerly%20GLH%20Hotels%20Group%20Limited%29) - **Clermont Hotel Group reversed last year's loss**, recording a **profit after tax of GBP 36.5 million** (approximately HKD 345.5 million), benefiting from rebranding, premium positioning, and a streamlined portfolio[44](index=44&type=chunk) - Strong local and international demand drove **room sales growth**, with total revenue surpassing pre-pandemic levels[44](index=44&type=chunk) - Ongoing **cost control and energy hedging measures** partially offset the impact of high inflation and labor costs[44](index=44&type=chunk) - The business outlook is positive, with demand expected to remain strong, and continued investment in infrastructure upgrades and hotel repositioning will drive future growth[45](index=45&type=chunk) [The Rank Group Plc ("Rank")](index=22&type=section&id=The%20Rank%20Group%20Plc%20%28%22Rank%22%29) - **Rank's gaming net revenue increased by 6%** to **GBP 681.9 million** (approximately HKD 6.4549 billion), but recorded a **loss after tax of GBP 95.3 million** (approximately HKD 902.1 million) due to energy costs, wage inflation, and **GBP 118.9 million** (approximately HKD 1.1255 billion) in impairment charges[46](index=46&type=chunk) - **Digital business and Enracha casinos performed strongly**, growing by **10% and 19%** respectively, with Grosvenor and Mecca casinos seeing accelerated revenue recovery in the second half[46](index=46&type=chunk) - The company continues to improve safer gambling player journeys and prepares for regulatory reforms stemming from the UK government's gambling law review[46](index=46&type=chunk)[47](index=47&type=chunk) [Financial Services](index=22&type=section&id=Financial%20Services) Hong Leong Financial Group's profit before tax grew by 5% in FY2023, primarily driven by its commercial banking and insurance segments, with Hong Leong Bank Group and HLA Holdings Group showing increased profits, while Hong Leong Capital Group's profit declined by 37% due to reduced contributions from investment banking and stockbroking [Hong Leong Financial Group Berhad](index=22&type=section&id=Hong%20Leong%20Financial%20Group%20Berhad) - **Hong Leong Financial Group's profit before tax increased by 5%** to **MYR 5.1024 billion** (approximately HKD 8.8768 billion), mainly from its commercial banking and insurance segments[47](index=47&type=chunk) - **Hong Leong Bank Group's profit before tax increased by 6%** to **MYR 4.6266 billion** (approximately HKD 8.0491 billion), benefiting from higher revenue, reduced impairment loss provisions, and increased share of associates' profits[48](index=48&type=chunk) - **HLA Holdings Group's profit before tax increased by 12%** to **MYR 441 million** (approximately HKD 767.2 million), primarily due to increased revenue[48](index=48&type=chunk) - **Hong Leong Capital Group's profit before tax decreased by 37%** to **MYR 61.4 million** (approximately HKD 106.8 million), due to reduced contributions from its investment banking, stockbroking, and fund management segments[48](index=48&type=chunk) [Others](index=23&type=section&id=Others) - **Manuka Health New Zealand Limited (MHNZ)** saw improved sales revenue across all major markets, but adverse weather conditions led to a reduction in the fair value of agricultural produce, negatively impacting financial results[49](index=49&type=chunk) - The **Bass Strait oil and gas business** experienced increased performance due to higher average crude oil and gas prices[49](index=49&type=chunk) [Discussion on Group Financial Position](index=23&type=section&id=Discussion%20on%20Group%20Financial%20Position) The Group maintains a robust financial position, with total equity attributable to equity holders of HKD 59.3 billion and net debt of HKD 14.4 billion as of June 30, 2023, resulting in an equity-to-debt ratio of 80:20; the Group possesses ample cash and short-term funds, actively manages interest rate and foreign exchange risks, and prioritizes human resource development [Capital Management](index=23&type=section&id=Capital%20Management) As of June 30, 2023, the Group's consolidated total equity attributable to equity holders was HKD 59.3 billion, with net debt of HKD 14.4 billion, resulting in an 80:20 equity-to-debt ratio, demonstrating a sound capital structure - As of June 30, 2023, the **consolidated total equity attributable to equity holders of the Company** was **HKD 59.3 billion**[50](index=50&type=chunk) - **Net debt** stood at **HKD 14.4 billion**, with an **equity-to-debt ratio of 80:20**[50](index=50&type=chunk) [Liquidity and Financial Resources](index=23&type=section&id=Liquidity%20and%20Financial%20Resources) The Group possesses ample cash and short-term funds, primarily denominated in HKD, USD, and SGD; total bank loans and other borrowings amount to HKD 36.9 billion, mostly in SGD, with HKD 52.9 billion in assets pledged as collateral, and approximately HKD 12.5 billion in undrawn borrowing facilities - As of June 30, 2023, **cash and short-term funds** and **trading financial assets** were primarily denominated in **HKD (33%), USD (30%), SGD (14%), RMB (9%), and GBP (7%)**[51](index=51&type=chunk) - **Total bank loans and other borrowings** amounted to **HKD 36.9 billion**, mainly denominated in **SGD (71%)**, with **HKD 8 billion** repayable within one year or on demand[51](index=51&type=chunk) - Certain Group bank loans and other borrowings are secured by properties, fixed assets, trading financial assets, and bank deposits with a total carrying value of **HKD 52.9 billion**[52](index=52&type=chunk) - The Group has **undrawn committed borrowing facilities** of approximately **HKD 12.5 billion**[52](index=52&type=chunk) [Interest Rate Risk](index=24&type=section&id=Interest%20Rate%20Risk) The Group manages interest rate risk by reducing overall debt costs and exposure to interest rate fluctuations, utilizing interest rate contracts as appropriate; approximately 89% of bank loans and other borrowings are at floating rates, with outstanding interest rate contracts having a notional amount of HKD 6.2 billion - The Group manages interest rate risk by reducing overall debt costs and exposure to interest rate fluctuations, utilizing **interest rate contracts** as appropriate[53](index=53&type=chunk) - Approximately **89% of bank loans and other borrowings** are at **floating rates**, with **11% at fixed rates**; outstanding interest rate contracts have a notional amount of **HKD 6.2 billion**[53](index=53&type=chunk) [Foreign Exchange Risk](index=24&type=section&id=Foreign%20Exchange%20Risk) The Group periodically enters into foreign exchange contracts, primarily over-the-counter derivatives, for hedging foreign exchange risk and investment purposes; as of June 30, 2023, the total notional amount of outstanding foreign exchange contracts was HKD 4.6 billion, used to hedge foreign currency equity investments - The Group periodically enters into **foreign exchange contracts** (primarily over-the-counter derivatives) for **hedging foreign exchange risk and investment purposes**[54](index=54&type=chunk) - The total notional amount of **outstanding foreign exchange contracts** was **HKD 4.6 billion**, used to hedge foreign currency equity investments[54](index=54&type=chunk) [Equity Price Risk](index=24&type=section&id=Equity%20Price%20Risk) The Group maintains an investment portfolio primarily consisting of publicly listed equities and adheres to asset allocation limits to manage equity price risk - The Group maintains an investment portfolio primarily consisting of **publicly listed equities** and adheres to **asset allocation limits** to manage equity price risk[55](index=55&type=chunk) [Human Resources and Training](index=24&type=section&id=Human%20Resources%20and%20Training) The Group employed approximately 10,500 staff at year-end, committed to providing continuous training programs to enhance employee capabilities and quality; remuneration policies are regularly reviewed, with bonuses and incentives linked to performance, and an equity award scheme in place to motivate and retain talent - The Group employed approximately **10,500 staff** at year-end, committed to providing **continuous training programs** to enhance employee capabilities and quality[55](index=55&type=chunk) - Employee remuneration policies are regularly reviewed, with **bonuses and other incentives linked to Group and individual performance**, and an **equity award scheme** in place to motivate and retain talent[55](index=55&type=chunk) [Group Outlook](index=25&type=section&id=Group%20Outlook) Despite a global economic outlook fraught with uncertainty, including inflation, high interest rates, geopolitical tensions, and weak growth in key markets, the Group remains cautiously optimistic, prioritizing risk management, cost control, and cash flow to enhance resilience and achieve sustainable long-term business growth - The global economic outlook is characterized by **uncertainty**, facing challenges such as **inflation, high interest rates, geopolitical tensions, and weak growth** in major economies[56](index=56&type=chunk) - The Group maintains a **cautiously optimistic outlook**, prioritizing **risk management, cost control, and cash flow** to enhance resilience[56](index=56&type=chunk) - The objective is to achieve **sustainable long-term compound annual business growth**[56](index=56&type=chunk) [Other Information](index=25&type=section&id=Other%20Information) This section covers the Group's non-purchase, sale, or redemption of listed securities during the reporting period, compliance with corporate governance codes, the Board's review of financial information, and arrangements for the closure of the register of members to determine shareholder rights [Purchase, Sale or Redemption of the Company's Listed Securities](index=25&type=section&id=Purchase%2C%20Sale%20or%20Redemption%20of%20the%20Company%27s%20Listed%20Securities) For the year ended June 30, 2023, neither the Company nor any of its subsidiaries purchased, sold, or redeemed any of the Company's listed securities - For the year ended June 30, 2023, neither the Company nor any of its subsidiaries purchased, sold, or redeemed any of the Company's listed securities[57](index=57&type=chunk) [Compliance with Corporate Governance Code](index=25&type=section&id=Compliance%20with%20Corporate%20Governance%20Code) The Company has complied with the applicable provisions of the Corporate Governance Code set out in Appendix 14 to the Rules Governing the Listing of Securities on The Stock Exchange of Hong Kong Limited throughout the current financial year - The Company has complied with the applicable provisions of the **Corporate Governance Code** set out in Appendix 14 to the Rules Governing the Listing of Securities on The Stock Exchange of Hong Kong Limited throughout the current financial year[57](index=57&type=chunk) [Review of Financial Information](index=25&type=section&id=Review%20of%20Financial%20Information) The Board's Audit and Risk Management Committee has reviewed the Company's accounting principles, risk management, internal controls, and financial reporting matters, discussing them with the auditors and management; the financial information in the annual results announcement has been agreed by external auditor KPMG to be consistent with the audited financial statements - The Board's **Audit and Risk Management Committee** has reviewed the Company's accounting principles, risk management, internal controls, and financial reporting matters, discussing them with the auditors and management[58](index=58&type=chunk) - The financial information in the annual results announcement has been **agreed by external auditor KPMG** to be consistent with the audited financial statements[58](index=58&type=chunk) [Closure of Register of Members](index=26&type=section&id=Closure%20of%20Register%20of%20Members) To determine shareholders' entitlement to attend and vote at the upcoming Annual General Meeting and to receive the proposed final dividend, the Company will temporarily close its register of members, with specific cut-off times and record dates announced Share Register Closure Arrangements | Item | Date/Time | | :----------------------------------------- | :----------------------------------------- | | To determine shareholders' entitlement to attend and vote at the Annual General Meeting | | | Closure of Register of Members | November 13, 2023 (Monday) to November 16, 2023 (Thursday) | | Latest time for lodging transfer forms | 4:30 p.m. on November 10, 2023 (Friday) | | Annual General Meeting | November 16, 2023 (Thursday) | | To determine shareholders' entitlement to the proposed final dividend | | | Closure of Register of Members | November 23, 2023 (Thursday) | | Latest time for lodging transfer forms | 4:30 p.m. on November 22, 2023 (Wednesday) | | Record Date | November 23, 2023 (Thursday) | | Proposed Final Dividend Payment Date | December 5, 2023 (Tuesday) | - The register of members will be closed from **November 13 to November 16, 2023**, to determine shareholders' entitlement to attend and vote at the Annual General Meeting on **November 16, 2023**[59](index=59&type=chunk) - The register will also be closed on **November 23, 2023**, with a record date of **November 23, 2023**, to determine shareholders' entitlement to the proposed final dividend payable on **December 5, 2023**[60](index=60&type=chunk) [Board of Directors](index=26&type=section&id=Board%20of%20Directors) The Company's Board of Directors includes Mr. Kwek Leng Hai as Executive Chairman, Mr. Chew Gek Khim as Executive Director, Mr. Kwek Leng San as Non-executive Director, and independent non-executive directors Mr. David M. NORMAN, Mr. Wong Kwai Huen, and Mr. Paul J. BROUGH - The Board of Directors comprises **Executive Chairman Mr. Kwek Leng Hai**, **Executive Director Mr. Chew Gek Khim**, **Non-executive Director Mr. Kwek Leng San**, and **Independent Non-executive Directors Mr. David M. NORMAN, Mr. Wong Kwai Huen, and Mr. Paul J. BROUGH**[61](index=61&type=chunk)

Financial Performance - The group recorded an unaudited consolidated profit attributable to shareholders of HKD 1.2715 billion for the six months ended December 31, 2022, representing a 106% increase compared to the same period last year[26]. - Revenue increased by 24% to HKD 9.2 billion, primarily due to a HKD 1 billion increase in revenue from the property development and investment segment[26]. - The self-investment segment achieved a pre-tax profit of HKD 288 million, while the hotel and leisure segment recorded a pre-tax loss of HKD 649.6 million due to asset revaluation impairment[26]. - The overall profit attributable to shareholders from the property segment was SGD 59 million (approximately HKD 331.1 million), a decrease of 13% year-on-year, but an 11% increase when excluding one-time gains from the previous year[29]. - Clermont Hotel Group reported a post-tax profit of £22.8 million (approximately HK$209.3 million) for the six months ended December 31, 2022, reversing a loss of £22.6 million (approximately HK$207.4 million) in the same period last year[31]. - Rank's net gaming revenue increased by 2% to £33.89 million (approximately HK$311.05 million), primarily due to a 9% growth in digital business, offset by a 1% decline in casino operations[32]. - Rank recorded a post-tax loss of £101.2 million (approximately HK$928.8 million) for the six months ended December 31, 2022, compared to a profit of £84 million (approximately HK$77.1 million) in the same period last year[32]. - Publicly listed financial group reported a pre-tax profit of RM2.6978 billion (approximately HK$4.6431 billion), a 14% increase from RM2.3760 billion (approximately HK$4.0892 billion) in the same period last year[34]. - The banking group recorded a pre-tax profit increase of 17% to RM2.4745 billion (approximately HK$4.2588 billion) for the six months ended December 31, 2022[34]. Dividends and Shareholder Returns - The board declared an interim dividend of HKD 0.50 per share, totaling approximately HKD 165 million, consistent with the previous year's interim dividend[27]. - The company declared an interim dividend of $21,099,000 for the six months ended December 31, 2022, consistent with the previous year's dividend of $21,102,000[90]. - Basic earnings per share increased to $0.50, compared to $0.24 in the same period last year, reflecting a significant growth of 108.3%[64]. Assets and Liabilities - The group's total equity attributable to shareholders was HK$57.9 billion, with a net debt of HK$15.8 billion, resulting in a debt-to-equity ratio of 21%[36]. - As of December 31, 2022, the total cash and short-term funds amounted to approximately HKD 37 billion, with major currencies being HKD (34%), USD (23%), SGD (14%), RMB (13%), GBP (9%), and JPY (3%)[37]. - The total bank loans and other borrowings as of December 31, 2022, were HKD 37 billion, with 70% in SGD, 9% in RMB, 7% in USD, 6% in GBP, 5% in HKD, and 3% in MYR[37]. - The total non-current liabilities amounted to $3,333,444 thousand, a decrease of 28.5% from $4,629,308 thousand as of June 30, 2022[67]. - The net assets increased slightly to $9,667,560 thousand from $9,602,021 thousand, reflecting a growth of 0.68%[67]. - The total equity attributable to shareholders rose to $7,419,705 thousand, up from $7,357,199 thousand, indicating a 0.84% increase[68]. Cash Flow and Investments - The company reported a net cash from operating activities of $742,499 thousand, compared to $194,573 thousand in the same period last year, indicating a significant increase[71]. - The net cash used in investing activities was $(114,589) thousand, compared to $(34,695) thousand in the previous year, reflecting increased investment outflows[71]. - The net cash from financing activities was $(501,189) thousand, a decrease from $326,165 thousand in the prior year, suggesting a reduction in financing inflows[71]. - The company recognized impairment losses of $59,693,000 on right-of-use assets, $27,763,000 on other property, plant, and equipment, and $24,708,000 on intangible assets due to lower-than-expected performance post-pandemic[88]. Market Outlook and Strategic Initiatives - The Malaysian GDP is expected to grow moderately by 4% to 5% in 2023, supported by strong fundamentals and policy measures[30]. - The company aims to enhance its value in integrated development projects in Singapore, China, and Malaysia with the completion of the Guoco Midtown City in 2023[30]. - The company remains cautiously optimistic for 2023, anticipating improvements in global financial conditions and a peak in interest rates, despite ongoing risks such as high inflation and geopolitical tensions[41]. Employee and Management Information - The company employed around 10,500 staff as of December 31, 2022, and is committed to continuous training programs to enhance employee capabilities[40]. - The company’s employee compensation policy is regularly reviewed, linking bonuses to financial performance and individual employee performance[40]. - David M. Norman resigned as a non-executive director of Nanhua Group Holdings Limited on December 31, 2022[55]. - Paul J. Brough was appointed as a director of Pacific Primary Health Care Holdings Limited on January 1, 2023[56]. Shareholding Structure - As of December 31, 2022, Guo Lingcan holds 250,282,117 shares, representing approximately 76.06% of the total issued shares[60]. - GuoLine Capital Assets Limited holds 248,625,792 shares, accounting for approximately 75.55% of the total issued shares[60]. - Elliott Investment Management GP LLC owns 31,998,716 shares, which is about 9.72% of the total issued shares[60]. - The maximum number of new shares that may be issued under the Executive Share Option Plan is 32,905,137 shares, equivalent to 10% of the total issued shares[58]. - No share options or shares were granted under the Executive Share Option Plan from its adoption until December 31, 2022[58]. Financial Reporting and Compliance - The company has not adopted any new standards or interpretations that would significantly impact the financial reporting for the current period[73]. - The accounting policies adopted in the interim financial report are consistent with those used in the previous fiscal year, ensuring comparability[72]. - The company’s financial report is unaudited, and the figures for the previous fiscal year are provided for comparison purposes only[72].

Financial Performance - Guoco Group reported a total revenue of HKD 10.5 billion for the fiscal year 2022, representing a 15% increase compared to the previous year[9]. - The company achieved a net profit of HKD 2.3 billion, which is a 20% increase year-on-year[9]. - The company's revenue for the fiscal year ended June 30, 2022, was HKD 15,758 million, representing a 26% increase from HKD 12,522 million in 2021[29]. - The profit attributable to shareholders decreased by 22% to HKD 1,960 million, down from HKD 2,501 million in the previous year[29]. - Earnings per share (EPS) fell by 22% to HKD 6.03, compared to HKD 7.69 in 2021[29]. - Operating profit increased by 29% to HKD 1,153 million, up from HKD 891 million in 2021[29]. - The group recorded a consolidated profit attributable to shareholders of HKD 1.96 billion for the year ended June 30, 2022, down from HKD 2.50 billion in the previous year, reflecting a decrease of approximately 21%[34]. - The property development and investment segment reported a 132% year-on-year increase in profit attributable to shareholders, reaching SGD 392.7 million (approximately HKD 2.26 billion)[40]. - The group reported a consolidated net profit for the year ending June 30, 2022, with total revenue significantly impacted by its subsidiaries in self-investment, property development, and hotel and leisure businesses[175]. Dividends - The company declared a final dividend of HKD 1.50 per share, subject to shareholder approval at the annual general meeting[4]. - The company declared a total dividend of HKD 2.00 per share, unchanged from the previous year[29]. - The company has maintained its interim dividend at HKD 0.50 per share and proposed a final dividend of HKD 1.50 per share[29]. - The board proposed a final dividend of HKD 1.50 per share, consistent with the previous year's dividend[36]. - The interim dividend declared on March 23, 2022, was HKD 0.50 per share, totaling HKD 164,526,000, consistent with the previous year[180]. - The proposed final dividend of HKD 1.50 per share, totaling HKD 493,579,000, is to be paid on November 24, 2022, also unchanged from the previous year[180]. Market Expansion and Strategy - The company plans to expand its market presence in the UK and Australia through strategic partnerships established in 2017[11]. - The company is focused on expanding its market presence and enhancing its product offerings in the upcoming fiscal year[29]. - The group is committed to identifying suitable land for development to maintain project growth and enhance its property portfolio[41]. - Rank plans to continue focusing on efficiency across its businesses amid ongoing inflation and challenging market conditions[45]. - The group plans to continue focusing on sustainable growth and shareholder returns amidst uncertain economic conditions[35]. Risk Management - The company has a strong risk management system in place to control financial risks and manage liquidity assets[10]. - The company has established a risk management framework to continuously identify risks, assess their potential impact and occurrence probability, and implement relevant mitigation procedures[159]. - The audit committee reviews the effectiveness of the company's risk management and internal control systems quarterly based on submitted risk profile reports[160]. - The company has established a risk management committee to assist the board in managing environmental, social, and governance risks[117]. Corporate Governance - The board of directors has adopted a corporate governance code based on the Hong Kong Stock Exchange's rules, ensuring compliance and enhancing business performance and accountability[116]. - The company is committed to maintaining high standards of corporate governance and regularly reviews its risk management and internal control systems[116]. - The company has implemented a share option plan to align the long-term interests of employees with those of shareholders, thereby enhancing morale and talent retention[113]. - The company emphasizes continuous professional development for all directors, ensuring they are well-informed on business operations, risk management, and corporate governance[134]. - The company has a policy for the nomination of directors, focusing on board structure, independence, and diversity[142]. - The company is dedicated to ensuring the effectiveness of its nomination policy and will make necessary updates to align with regulatory and governance requirements[147]. Subsidiaries and Investments - Guoco Land, a subsidiary, has a property portfolio that includes 39 residential projects providing over 11,000 apartments and residences in Singapore[12]. - The flagship development, Guoco Tower, includes premium Grade A office space, luxury apartments, a five-star hotel, and a 150,000 square foot urban park[12]. - Guohao Group has developed a large property portfolio across major cities in China, including Beijing, Shanghai, Nanjing, and Tianjin, and is currently constructing large-scale projects in Shanghai and Chongqing[14]. - GLH Hotels Group operates over 4,700 rooms and more than 120 meeting and event spaces in London, featuring four iconic hotel brands[15]. - Hong Leong Financial Group has over 240 branches across Malaysia, Singapore, and Hong Kong, providing comprehensive personal finance, asset management, and corporate banking services[16]. Challenges and Market Conditions - Manuka Health New Zealand Limited faced a significant decrease in customer traffic due to high inflation and ongoing external challenges, impacting product sales[47]. - The group remains cautious about cash flow management and will continue to implement cost control measures in response to global economic uncertainties[51]. - The self-investment segment experienced a pre-tax loss of HKD 430.7 million due to market volatility and unrealized valuation losses[37]. - The company is committed to achieving long-term sustainable growth and returns for shareholders despite ongoing challenges[51]. Employee and Management - The company employed approximately 10,300 employees at year-end, focusing on continuous training programs to enhance employee capabilities and quality[113]. - The management team includes experienced professionals with backgrounds in finance, investment, and real estate, ensuring strong leadership and strategic direction[18][19][20][21]. - The remuneration for executive directors and senior management is determined based on performance, years of service, experience, and responsibilities, with regular reviews against market practices[138]. Financial Position - The total assets of the company as of 2022 were HKD 130,246 million, while total liabilities were HKD 54,918 million[32]. - The company reported a net debt of HK$17.7 billion, with an equity-to-debt ratio of 76:24 as of June 30, 2022[106]. - Approximately 86% of the group's bank loans and borrowings are subject to floating interest rates, with a notional amount of HK$9.7 billion in interest rate contracts[108]. - The total notional amount of outstanding foreign exchange contracts as of June 30, 2022, was HKD 14.9 billion, primarily used for hedging foreign currency risks and investments[111]. Other Information - The company’s environmental, social, and governance (ESG) report will be published by the end of November 2022, detailing compliance with relevant laws and regulations[177]. - The group made charitable donations amounting to USD 620,000 during the year, a decrease from USD 1,790,000 in the previous year[183]. - The five largest customers accounted for less than 30% of the total revenue, indicating a diversified customer base[182].

Financial Performance - The group recorded a net profit attributable to shareholders of HKD 616 million for the six months ended December 31, 2021, down from HKD 1.011 billion in the same period last year, representing a decrease of 39%[26] - Revenue increased by 61% to HKD 7.4 billion, primarily due to the gradual easing of COVID-19 related restrictions, which boosted the hotel and leisure segment's revenue by HKD 2.1 billion[26] - Basic earnings per share were HKD 1.89, compared to HKD 3.11 in the previous year, reflecting the impact of the pandemic on performance[26] - The proprietary investment segment recorded a pre-tax loss of HKD 608 million, influenced by ongoing COVID-19 impacts and market volatility[28] - The group experienced a significant increase in property development and investment revenue by HKD 800 million due to improved sales in Singapore and China[26] - The hotel and leisure segment's performance was adversely affected by the Omicron variant towards the end of the reporting period[26] - The company’s net profit attributable to shareholders surged 195% to SGD 67.5 million for the six months ended December 31, 2021[31] - The company reported a revenue of $1,033,878 thousand for the six months ended December 31, 2021, representing a 32.9% increase from $776,111 thousand in the same period of 2020[71] - The net profit for the period was $150,474 thousand, an increase of 61.2% compared to $93,370 thousand in the previous year[72] - The company reported a total comprehensive income of $583.928 million for the period, compared to $130.840 million in the previous year, indicating strong performance[76] Dividends and Shareholder Returns - The board declared an interim dividend of HKD 0.50 per share, totaling approximately HKD 165 million, consistent with the previous year's interim dividend[27] - The company declared an interim dividend of $21,102 thousand for the current year, consistent with the previous year's interim dividend of $21,226 thousand[96] Investments and Assets - The group's investment in Bank of East Asia (BEA) accounted for approximately 3.6% of total assets, with a fair value of HKD 4.9 billion as of December 31, 2021[29] - BEA reported a profit attributable to shareholders of HKD 5.27 billion, a 45.8% increase from HKD 3.614 billion in the previous year, driven by reduced impairment losses and improved net service fees[30] - The company reported a total bank loan of $5,309,366 thousand as of December 31, 2021, compared to $4,779,004 thousand as of June 30, 2021, indicating an increase in debt[105] - The company’s total liabilities were reported at $566.016 million[75] - The company reported unrecognized capital commitments of $788.8 million as of December 31, 2021, down from $834.5 million as of June 30, 2021[117] Operational Performance - GLH Hotels recorded a reduced loss of £22.6 million, compared to a loss of £23.3 million in the same period last year, aided by the reopening of hotels in the UK[34] - Rank Group's net gaming revenue increased by 88% to £333.7 million, with a return to profitability resulting in a post-tax profit of £84.6 million[35] - The average room rate for GLH Hotels reached its highest in six months despite a decline in occupancy rates due to the Omicron variant[34] - The group achieved a profit before tax of $179,429 thousand for the reporting period, compared to a loss of $78,002 thousand in the previous year[87] - The group’s operating profit from self-investment activities was reported at $106,294 thousand, while the hotel and leisure segment reported an operating loss of $82,734 thousand[86] Market Conditions and Trends - The average new home prices in China's 70 major cities fell 0.28% month-on-month in December 2021, reflecting ongoing weak demand due to tightened credit policies[32] - Malaysia's property price index decreased by 0.7% year-on-year in Q4 2021, with a 26% quarterly increase in transaction volume driven by the easing of COVID-19 restrictions[33] - The Singapore private residential market is expected to remain robust, with a projected lower supply of new properties in 2022[31] - The group continues to explore market expansion opportunities in regions such as Singapore, China, Malaysia, Vietnam, and Hong Kong[81] Financial Position and Liquidity - As of December 31, 2021, the group's total equity attributable to shareholders was HKD 58.3 billion, with a net debt of HKD 18.1 billion, resulting in a debt-to-equity ratio of 24%[39] - The group had cash and short-term funds totaling HKD 41.4 billion, with bank loans and borrowings amounting to HKD 41.4 billion, primarily denominated in Singapore dollars (69%)[40] - The company maintained a strong liquidity position with cash and cash equivalents after accounting for bank overdrafts and cash collateral[77] - The company's cash and cash equivalents increased to $1,810,200 thousand from $1,448,960 thousand, reflecting a growth of approximately 24.9%[73] Corporate Governance - The board has adopted corporate governance practices in accordance with the Hong Kong Stock Exchange's Listing Rules, ensuring compliance with relevant regulations[46] - The board of directors confirmed adherence to the standards set forth in the Listing Rules regarding securities trading during the reporting period[46] - The company has ensured that all directors' interests in shares and related securities are properly recorded and disclosed as required by the Securities and Futures Ordinance[47] Share Options and Equity - The company has not granted any share options under the 2012 Share Option Scheme from its adoption until December 31, 2021[59] - The company has not canceled any options during the six-month period ending December 31, 2021, but all options expired[64] - The employee share option plan allows eligible participants to participate in the equity of GLM and its subsidiaries[61] Miscellaneous - The company’s functional currency is USD, and HKD figures are for reference only, converted at the relevant exchange rate[125] - The unaudited interim results for the six months ended December 31, 2021, have been reviewed by the company's board and the risk management committee[126]

Financial Performance - GuocoGroup reported a total revenue of HKD 5.2 billion for the fiscal year, representing a 12% increase compared to the previous year[25]. - The company achieved a net profit of HKD 1.1 billion, which is a 15% increase year-over-year[25]. - The company's revenue for the fiscal year ending June 30, 2021, was HKD 10,253 million, a decrease of 30% from HKD 14,641 million in 2020[36]. - Operating profit for the same period was HKD 891 million, compared to a loss of HKD 1,145 million in 2020, indicating a significant recovery[36]. - Profit attributable to shareholders was HKD 2,501 million, a turnaround from a loss of HKD 873 million in the previous year[36]. - Earnings per share increased to HKD 7.69 from a loss of HKD 2.68 in 2020[36]. - The total dividend declared for the year was HKD 2.00 per share, down from HKD 2.50 in 2020, representing a 20% decrease[36]. - The company reported a profit attributable to shareholders of HKD 2.501 billion for the year ended June 30, 2021, compared to a loss of HKD 873 million in the previous year, indicating a significant turnaround in performance[42]. - The group recorded a net profit attributable to shareholders of HK$2.501 billion for the year ending June 30, 2021, compared to a loss of HK$873 million the previous year[99]. Property Development - GuocoLand has successfully developed 35 residential projects in Singapore, providing approximately 11,000 apartments and residences[26]. - The company plans to expand its property development and investment operations into new markets, including the UK and Australia, through strategic partnerships[26]. - The company has developed a large property portfolio across major cities in China, including Beijing, Shanghai, Nanjing, and Tianjin, and is currently constructing large-scale development projects in Shanghai and Chongqing[28]. - The Singapore residential market is expected to remain strong, with a 0.8% increase in the overall private residential property price index in Q2 2021[73]. Financial Services - GuocoGroup's financial services segment continues to grow, with a focus on managing financial risks and optimizing liquidity[26]. - The financial services segment, under Hong Leong Financial Group, employs over 10,000 staff and operates approximately 260 branches across Malaysia, Singapore, and Hong Kong[28]. - The company is focused on expanding its Islamic banking services through Hong Leong Islamic Bank, providing comprehensive financial products compliant with Islamic law[28]. - The company has a strong presence in the investment banking sector through Hong Leong Investment Bank, which engages in securities brokerage and related financial services[28]. - The company’s asset management division offers unit trust management and Islamic fund management services, indicating a diversified financial service portfolio[28]. - The company has a significant stake in Chengdu Bank, holding 17.99%, which strengthens its foothold in the Chinese market[28]. - The group anticipates continued growth in its main markets, supported by improved service quality and asset quality[60]. Risk Management - The company has established a strong risk management system to control major financial risks and hedge strategies[26]. - The company continuously reviews and strengthens its risk management and internal control systems to align with best practices and regulatory changes[110]. - The board is responsible for identifying key risks and ensuring appropriate measures and control systems are implemented[111]. - The company has established a corporate risk management framework to continuously identify and assess risks and implement mitigation procedures[153]. Dividends and Shareholder Returns - The company has proposed a final dividend of HKD 1.50 per share, pending approval at the annual general meeting[8]. - The company maintained a cautious approach to dividends, proposing a final dividend of HKD 1.50 per share, consistent with the previous year, amidst uncertain economic conditions[43]. - The company aims to balance dividend distribution and retention of sufficient liquidity to meet operational needs and seize future growth opportunities[128]. - The board of directors has the discretion to recommend or declare dividends based on current financial performance and future financial needs[128]. Corporate Governance - The board of directors has adopted a corporate governance code based on the principles of the Hong Kong Stock Exchange's Listing Rules, ensuring compliance and enhancing business performance[110]. - The board held a total of five meetings during the fiscal year ending June 30, 2021, with all directors confirming adherence to the established standards of conduct for securities trading throughout the year[126]. - The attendance rate for board meetings was 100% for the executive chairman and independent non-executive directors, indicating strong engagement in governance[124]. - The company has established various board committees to assist in fulfilling its responsibilities, including reviewing and approving corporate objectives and overall strategies[111]. - The company has received declarations of independence from all independent non-executive directors, affirming their status as independent individuals[115]. - The company has implemented a diversity policy for the board, considering various factors such as gender, age, cultural background, and professional experience in the selection of candidates[142]. Market Expansion - The company is actively pursuing market expansion strategies in Southeast Asia, particularly in Malaysia and Singapore, to enhance its property development and financial services[28]. - The company aims to deliver sustainable returns to shareholders while enhancing capital value through its diversified investment portfolio[25]. Challenges and Recovery - GLH Hotels Group Limited recorded a post-tax loss of GBP 55.1 million for the year ended June 30, 2021, due to the ongoing impact of COVID-19 restrictions[48]. - Rank's casino business was closed for 59% of operational days, leading to a 48% decrease in net gaming revenue to GBP 32.96 million[89]. - The group remains cautiously optimistic about the economic recovery for the fiscal year 2021/2022, despite ongoing uncertainties related to the pandemic and geopolitical risks[52]. - The group has temporarily postponed non-essential capital expenditures to preserve operational funds and liquidity during the pandemic[49]. Charitable Contributions - The group made charitable donations totaling USD 1,790,000 during the year, compared to USD 2,086,000 in the previous year[176].

Financial Performance - The group recorded a net profit attributable to shareholders of HKD 1.011 billion for the six months ended December 31, 2020, a decrease of 6% compared to the same period in 2019[25]. - Revenue for the six months decreased by 50% to HKD 4.6 billion, primarily due to a decline in the hotel and leisure segment, which saw a drop of HKD 3.5 billion[25]. - The hotel and leisure segment reported a pre-tax loss of HKD 920 million due to the impact of COVID-19, while other segments such as self-investment, property development, and financial services recorded pre-tax profits of HKD 790 million, HKD 363 million, and HKD 530 million respectively[25]. - The group recorded an unrealized loss of HKD 500 million in its fair value reserves related to its investment in BEA[28]. - GL Limited reported a net loss of USD 19.8 million, a significant decline from a net profit of USD 26.9 million in the previous year, with revenue down 90% due to the impact of COVID-19 on hotel operations[31]. - Rank Group Plc recorded a net loss of GBP 48.6 million, compared to a net profit of GBP 39.8 million in the same period last year, with net gaming revenue down 55% to GBP 177.6 million due to casino closures[32]. - The company reported a revenue of $776,111 thousand for the six months ended December 31, 2020, a decrease of 38.4% compared to $1,262,104 thousand in the same period of 2019[85]. - The operating profit before finance costs was $101,036 thousand, down 59.0% from $246,748 thousand year-on-year[85]. - The net profit attributable to shareholders for the period was $130,422 thousand, a decline of 5.1% from $138,133 thousand in the previous year[85]. - The company recorded other comprehensive income of $490,558 thousand, significantly improving from a loss of $173,495 thousand in the previous year[86]. Dividends and Shareholder Returns - The board declared an interim dividend of HKD 0.50 per share, totaling approximately HKD 165 million, compared to HKD 1.00 per share and HKD 329 million in the previous year[26]. - The company declared an interim dividend of $21,226,000 for the six months ended December 31, 2020, down from $42,255,000 in 2019[110]. Segment Performance - The financial services segment generated a pre-tax profit of HKD 530 million, contributing to the overall profitability despite challenges faced in other segments[25]. - The self-investment segment saw a pre-tax profit of HKD 789.6 million, attributed to a rise in stock values reaching historical highs[27]. - The group’s operating segments include self-operated investments, property development and investment, hotel and leisure, and financial services, each contributing to the overall performance[95]. Market Conditions - The Singapore residential property market is expected to remain strong, with a 2.1% quarterly increase in the private residential property price index in Q4 2020[30]. - The average new home price in 70 major Chinese cities rose 0.1% month-on-month and 3.8% year-on-year in December 2020, indicating resilience in the housing market[30]. - The Malaysian residential property market continues to face challenges due to a backlog of completed properties, with recovery dependent on political stability and COVID-19 developments[30]. Financial Position and Liquidity - As of December 31, 2020, the group's total equity attributable to shareholders was HKD 59.1 billion, with net debt amounting to HKD 15.5 billion, resulting in a debt-to-equity ratio of 21%[36]. - The group had cash and short-term funds totaling HKD 38.1 billion, primarily denominated in USD (30%), HKD (24%), and RMB (13%) as of December 31, 2020[36]. - Approximately 84% of the group's bank loans and borrowings were at floating interest rates, with a notional amount of HKD 11 billion in interest rate contracts as of December 31, 2020[37]. - The group had outstanding foreign exchange contracts with a total notional amount of HKD 16.9 billion as of December 31, 2020, primarily for hedging foreign exchange risks[38]. - The group has committed but undrawn borrowing facilities of approximately HKD 18.6 billion as of December 31, 2020[36]. Employee and Management Information - The group employed around 9,800 staff as of December 31, 2020, with a compensation policy linked to financial performance and individual employee performance[39]. - The company’s director, Mr. Tang Han Chang, retired from the position of President and CEO effective January 1, 2021[65]. - Mr. Zhou Xiang An was appointed as a non-executive director of The Rank Group Plc on December 10, 2020[66]. Share Options and Capital Management - The company reported no share options granted under the 2012 Share Option Scheme during the six-month period ended December 31, 2020[67]. - As of December 31, 2020, a total of 37,900,000 share options were unexercised under the 2008 Share Option Scheme for the company’s real estate subsidiary[69]. - The company’s board resolved to grant 20,000,000 share options to an executive director, with an exercise price of SGD 1.984 per share[69]. - The company has a share premium of HKD 10,493, which reflects the additional capital raised above the nominal value of shares[89]. Cash Flow and Investments - The net cash generated from operating activities for the six months ended December 31, 2020, was $242.626 million, a significant improvement from a net cash outflow of $343.773 million in the same period last year[91]. - The net cash generated from investing activities was $174.005 million, compared to a net cash outflow of $227.479 million in the previous year[91]. - The total cash and cash equivalents as of December 31, 2020, amounted to $1.652 billion, an increase from $1.439 billion at the end of the previous year[91]. Capital Commitments and Future Outlook - The group has signed capital commitments for development expenditures amounting to $2.1426 billion as of December 31, 2020, up from $783.5 million on June 30, 2020[128]. - The outlook for the remainder of the fiscal year 2021 remains challenging, particularly for operations in the UK, which continue to incur losses due to COVID-19 restrictions[40].