【导读】万达酒店发展25亿元出售酒店管理业务，同程旅行接盘 中国基金报记者南深 春节后屡屡曝出股权冻结的王健林和大连万达集团，又要出售核心资产了，这一次是万达酒管。 4月17日晚，在港上市的万达酒店发展和同程旅行双双公告，后者全资子公司已与前者达成协议，拟以初始交易对价约 24.97亿元，收购万达酒店管理（香港）有限公司（以下简称万达酒管）100%股权。 万达酒店发展称，本次交易预期所获款项净额24亿港元，将建议以股息的方式向股东分派全部或大部分所得款项，而其控 股股东穿透后正是大连万达，后者控股比例约为65.04%。 按该控股比例测算，大连万达此次可回笼资金约15.6亿港元，但相对其庞大的待偿债务，只能说是杯水车薪。 无奈出售酒店管理业务 双方公告显示，此次出售万达酒管的估值倍数相当于其2023年度经调整EBITDA（息税前净利润）的9.5倍。这一定价经双 方磋商，并参考酒店管理行业当前市况及其前景，以及若干主要业务或重要业务分部包括酒店或物业管理业务的上市公司 的EV/EBITDA倍数确定。 对这一定价，万达酒店发展方面似乎较为满意。其称："本公司认为出售事项将使本公司解锁酒店管理业务分部的部分价 值，鉴 ...

Core Viewpoint - Wanda Hotel Development Company demonstrates resilience and growth potential despite macroeconomic fluctuations and intensified industry competition, driven by diversified business layout, refined operational management, and innovative strategies [1] Financial Performance - Total revenue for 2024 is approximately HKD 990 million, with hotel operation revenue around HKD 720 million [2] - The number of managed hotels increased to 204, with a total room count of 40,203 [2] - Revenue per available room (RevPAR) is RMB 246, average daily rate (ADR) is RMB 456, and occupancy rate is 53.9% [2] Membership Growth - The membership ecosystem accelerated, with a total of 17 million members and over 500,000 paying members by the end of 2024 [2] - During the 2024 Double Eleven shopping festival, total sales on the Fliggy platform reached RMB 291 million, a 14% year-on-year increase, maintaining the top position among domestic hotel groups for four consecutive years [2] Global Expansion - In 2024, 50 new hotels opened, bringing the total managed hotels to over 200, extending Wanda's commitment to exceptional service and unique experiences globally [3] - New hotel openings include the "Wanda Wenhua Hotel" in Istanbul and the "Wanda Jin Hua Apartment Hotel" in Bangkok, showcasing Chinese culture and expanding the brand's global footprint [3] Innovation and Efficiency - Wanda Hotel is exploring optimal hotel efficiency solutions through multi-brand strategies in Beijing and Changchun, enhancing service diversity [5] - The company launched the "Jing Sheng Hotel" in collaboration with Tencent Esports and Jingxiang Technology, targeting high-end esports enthusiasts [6] - A partnership with Huawei's HarmonyOS aims to develop a smart hotel ecosystem, starting with a smart model room project in Beijing [6] Sustainability Initiatives - As a leading national hotel brand, Wanda integrates sustainable development into its core strategy, exemplified by a strategic partnership with NIO Energy to combine high-end hotel experiences with smart electric vehicle services [7]

Financial Performance - For the year ended December 31, 2024, total revenue was HKD 991,375,000, a slight increase from HKD 983,068,000 in 2023, representing a growth of approximately 0.3%[4] - The gross profit for the year was HKD 413,467,000, down from HKD 419,021,000 in the previous year, indicating a decrease of about 1.3%[4] - The net loss for the year was HKD 989,408,000, compared to a profit of HKD 191,050,000 in 2023, marking a significant decline[4] - Total comprehensive loss for the year amounted to HKD 1,051,641,000, contrasting with a comprehensive income of HKD 160,016,000 in 2023[5] - The basic and diluted loss per share for the year was HKD (12.6), compared to earnings of HKD 3.5 per share in 2023[4] Asset and Liability Changes - Non-current assets decreased to HKD 1,780,313,000 from HKD 3,791,098,000, reflecting a reduction of approximately 53%[6] - Current assets increased significantly to HKD 1,803,386,000 from HKD 761,509,000, representing an increase of about 137%[6] - Total liabilities increased, with current liabilities rising to HKD 792,923,000 from HKD 654,459,000, an increase of approximately 21%[6] - The company's equity decreased to HKD 2,194,930,000 from HKD 3,286,433,000, indicating a decline of about 33%[7] - Total assets as of December 31, 2024, amounted to HKD 3,583.699 million, with segment assets for hotel operations at HKD 587.755 million[13] Revenue Breakdown - Total revenue for the year ended December 31, 2024, was HKD 991.375 million, with external sales from hotel operations at HKD 724.347 million[13] - Revenue from hotel management services was 566,432 thousand HKD in 2024, up from 545,102 thousand HKD in 2023, indicating a growth of about 3.2%[20] - The company reported a decrease in revenue from major clients, with Client A contributing 241,951 thousand HKD in 2024 compared to 294,759 thousand HKD in 2023, a decline of approximately 17.9%[19] Impairment and Losses - The company reported a substantial increase in financial and contract asset impairment losses, totaling HKD 1,149,024,000, compared to HKD 103,422,000 in the prior year[4] - The impairment loss on property, plant, and equipment was 13,419 thousand HKD in 2024, while there was no such loss reported in 2023[26] - The impairment loss provision for trade receivables increased to 242,330,000 HKD in 2024 from 162,974,000 HKD in 2023, reflecting a significant rise in overdue contracts[39] Operational Metrics - The average occupancy rate for all hotels decreased from 55.9% in 2023 to 53.9% in 2024, representing a decline of about 3.6%[66] - Average daily room rate (ADR) for all hotels fell from RMB 499 in 2023 to RMB 456 in 2024, a decrease of approximately 8.6%[66] - Average revenue per available room (RevPAR) decreased from RMB 279 in 2023 to RMB 246 in 2024, a decline of about 11.8%[68] Employee and Operational Expansion - The group employed approximately 585 full-time employees across China (including Hong Kong) and the United States as of December 31, 2024[102] - The company managed 157 hotels with 33,900 rooms as of December 31, 2023, and plans to expand to 204 hotels with over 40,200 rooms by December 31, 2024[55] Dividends and Recommendations - No final dividend is recommended for the year ending December 31, 2024, consistent with the previous year[50] - The company has no significant post-reporting date events that need to be disclosed[51] Strategic Initiatives - The company employs a multi-brand strategy to cater to different customer preferences and needs[56] - The company plans to expand its hotel network by adding 54 new hotels by 2025, in response to the recovery of the domestic tourism market in China[73]

Hotel Network Expansion - The Group expanded its hotel network from 157 hotels with over 33,900 rooms as of December 31, 2023, to 174 hotels with over 36,600 rooms as of June 30, 2024[6]. - An additional 360 hotels have been contracted for management but are still under development and have not commenced operation as of June 30, 2024[6]. - The Group plans to add 42 new hotels in 2024 to expand its hotel network[79]. Hotel Management and Operations - The Group operates hotels under three models: leased-and-operated, managed, and franchised[6]. - The hotel management services are provided by Wanda Hotel Management Group, a leading hotel services provider in the PRC[5]. - The hotel business segment includes hotel operation and management services, hotel design, and construction management services[5]. - The Group's comprehensive capabilities in hotel management and operation support its growth strategy in the hospitality sector[5]. - The Group's strategic focus includes enhancing customer experience through a multi-brand strategy targeting distinct customer segments[9]. - The company is responsible for recruiting and training hotel staff in leased-and-operated hotels, while hotel owners bear the costs of developing and operating managed hotels[18][22]. - The company offers training, reservation, and support services to franchised hotels, ensuring they operate under brand standards[24][26]. Financial Performance - The financial performance for the six months ended June 30, 2024, will be detailed in the financial review section of the report[1]. - Revenue for the six months ended June 30, 2024, was HK$492,954,000, an increase from HK$464,089,000 in the same period of 2023, representing a growth of approximately 6%[121]. - The Group reported revenue of approximately HK$493.0 million for the Period, representing a 6.2% year-on-year increase over the corresponding period in 2023[38]. - Revenue from hotel operation and management services increased by 7.7% to approximately HK$361.5 million, driven by an increase in the number of hotels under management[40]. - Hotel management service revenue rose by 8.5% to approximately HK$275.6 million, compared to approximately HK$254.1 million for the corresponding period in 2023[40]. - The Group reported a loss attributable to equity holders of approximately HK$514.9 million, a significant decrease from a profit of HK$140.0 million in the same period of 2023, representing a change of HK$654.9 million[69]. - The net loss for the period was HK$895,591,000, compared to a profit of HK$165,133,000 in the same period last year, reflecting a significant decline[121]. Key Performance Indicators - Revenue per available room (RevPAR) is a key performance indicator frequently reviewed by senior management, influenced by occupancy rates and average daily rates[28]. - RevPAR decreased by approximately 9.6% to RMB 244 compared to RMB 270 in the corresponding period in 2023[30]. - Occupancy rate for all hotels was 51.1%, down from 53.4% in 2023[30]. - Average daily room rate for all hotels was RMB 478, a decrease from RMB 507 in 2023[30]. - In Q2 2024, occupancy rate for all hotels was 53.0%, compared to 55.7% in Q2 2023[33]. - Average daily room rate in Q2 2024 for all hotels was RMB 453, down from RMB 495 in Q2 2023[33]. - Franchised hotels had a RevPAR of RMB 140 in Q2 2024, down from RMB 205 in Q2 2023[34]. Cost and Expenses - The cost of sales rose by 13.6% to approximately HK$273.8 million, with hotel operation and management services costs increasing by 14.1% to approximately HK$193.2 million[43]. - Hotel operation income from rooms of four leased-and-operated hotels decreased by 14.3% to approximately HK$28.5 million due to intense market competition[40]. - Hotel operation and management services costs increased by 14.1% to approximately HK$193.2 million, driven by an increase in employee headcount[44]. - Selling and administrative expenses decreased by 7% to approximately HK$62.9 million during the Period, compared to HK$67.6 million for the corresponding period in 2023[63]. - The ratio of selling and administrative expenses over revenue decreased to 12.8% for the Period from 14.6% for the corresponding period in 2023[63]. Assets and Liabilities - Total assets as of June 30, 2024, were approximately HK$3,543.2 million, down from HK$4,552.6 million as of December 31, 2023, indicating a decrease of 22.1%[70]. - The Group's net assets attributable to equity holders of the parent decreased to HK$2,335.6 million as of June 30, 2024, from HK$3,286.4 million as of December 31, 2023, a decline of 29.0%[70]. - The Group maintained a net cash position as of June 30, 2024, with total debts of HK$2,479 million and cash and bank balances of HK$368.1 million[74]. - The Group's interest-bearing loans decreased to approximately HK$2.5 million as of June 30, 2024, from HK$4.3 million as of December 31, 2023[72]. - The Group's total liabilities decreased by $910,939,000, reflecting a strategic focus on reducing debt[127]. Shareholder Information - Mr. He Zhiping holds a long position of 150,000,000 shares in Dalian Wanda Commercial Management Group Co., Ltd, representing approximately 0.55% of the issued share capital[81]. - The Group will continue to prudently seek profitable investment opportunities to enhance profitability and maximize shareholder returns[79]. - The company has disclosed that no directors or key executives hold any interests or short positions in the company's shares as of June 30, 2024[88]. - The beneficial ownership of shares by Wang Jianlin is noted, although specific numbers are not provided in the documents[91]. Corporate Governance - The Company has adopted the Model Code as its own code of conduct regarding securities transactions by the Directors, with all Directors confirming compliance during the Period[107]. - The Company has complied with the Corporate Governance Code during the Period, except for a deviation from code provision C.2.1[108]. - Mr. Ning has been serving as both Chairman and acting CEO, which deviates from the Corporate Governance Code, but the Board believes this structure facilitates effective execution of business strategies[109]. - The Board comprises one other executive Director, two non-executive Directors, and three independent non-executive Directors, ensuring a balanced power structure[109]. Impairment and Valuation - The Group recognized an impairment loss of approximately HK$984.4 million (or approximately USD126 million) based on the value of 37 condominium units mortgaged to the Group[60]. - The provision for impairment of long-term receivables increased to HK$1,068,433,000 as of June 30, 2024, from HK$84,500,000 at the beginning of the year[168]. - The Group reported no valuation gain or loss on investment properties during the period, contrasting with a net valuation loss of approximately HK$1.1 million in the same period last year[48]. Future Outlook - Future outlook includes continued expansion in hotel management and potential new market entries[5]. - The Group expects the domestic tourist market in the PRC to continue growing in the coming years due to economic recovery[79].

Financial Performance - Revenue for the six months ended June 30, 2024, was HKD 492,954,000, an increase of 6.2% compared to HKD 464,089,000 for the same period in 2023[1] - Gross profit decreased to HKD 219,134,000, down 1.9% from HKD 222,985,000 year-on-year[1] - The company reported a net loss of HKD 895,591,000 for the six months ended June 30, 2024, compared to a profit of HKD 165,133,000 in the same period of 2023[2] - The company reported a pre-tax loss of HKD 869,311,000 for the six months ended June 30, 2024, compared to a profit of HKD 205,160,000 for the same period in 2023[12] - The group recorded no investment property valuation gains or losses during the period, contrasting with a net valuation loss of approximately HKD 1,100,000 in the same period last year[58] - The company reported a loss attributable to equity holders of approximately HKD 514.9 million for the six months ended June 30, 2024, compared to a profit of HKD 140.0 million in the same period of 2023, representing a change of HKD (654.9 million)[68] Assets and Liabilities - Total assets as of June 30, 2024, were HKD 2,768,784,000, down from HKD 3,791,098,000 as of December 31, 2023[4] - Total assets decreased to HKD 3,543.2 million as of June 30, 2024, down from HKD 4,552.6 million as of December 31, 2023[69] - The net asset value of the company decreased to HKD 2,335,632,000 from HKD 3,286,433,000 at the end of 2023[5] - The company's net asset value was HKD 2,335.6 million as of June 30, 2024, compared to HKD 3,286.4 million as of December 31, 2023[69] - Current liabilities decreased to HKD 595,245,000 from HKD 654,459,000 at the end of 2023[5] - The total liabilities as of June 30, 2024, were HKD 1,207,577,000, a decrease from HKD 1,266,174,000 as of December 31, 2023[12] Revenue Segments - The hotel operations and management services segment generated revenue of HKD 361,537,000, up from HKD 335,718,000, reflecting a growth of about 7.5%[12] - Revenue from hotel management services for the six months ended June 30, 2024, was HKD 275,618,000, compared to HKD 254,050,000 in the same period of 2023, marking an increase of approximately 8.5%[17] - The investment property leasing segment reported a profit of HKD 35,350,000, compared to HKD 26,517,000 in the previous year, indicating a significant increase of approximately 33.5%[12] - The investment property leasing revenue increased by 7.5% to approximately HKD 47.2 million, attributed to higher average rents during the period[54] Costs and Expenses - Financing costs decreased slightly to HKD 10,461,000 from HKD 11,056,000 year-on-year[2] - The total cost of services provided rose to 228,380 thousand from 202,902 thousand, an increase of about 12.5%[20] - Selling and administrative expenses decreased by 7% to approximately HKD 62,900,000, with the ratio to revenue dropping from 14.6% to 12.8%[65] - Income tax expense for the period totaled 26,280 thousand, down from 40,027 thousand, a decrease of about 34.2%[21] Operational Metrics - The average occupancy rate for all hotels decreased to 51.1% in 2024 from 53.4% in the same period of 2023, indicating a decline in demand[47][48] - Average daily room rate (ADR) for all hotels was RMB 478 in 2024, down from RMB 507 in 2023, reflecting pricing pressures in the market[47][48] - Average revenue per available room (RevPAR) fell approximately 9.6% to RMB 244 in 2024 from RMB 270 in the same period of 2023, primarily due to lower occupancy and ADR[48] - The average occupancy rate for managed hotels was 42.7% in 2024, down from 51.5% in 2023, indicating challenges in this segment[48] - The average daily room rate for managed hotels was RMB 488 in 2024, compared to RMB 522 in 2023, showing a decrease in pricing power[48] Hotel Network and Expansion - The hotel network expanded from 157 hotels with over 33,900 rooms as of December 31, 2023, to 174 hotels with over 36,600 rooms by June 30, 2024[38] - The company plans to expand its hotel network by adding 42 new hotels in 2024, anticipating growth in the domestic tourism market in China[79] - The company has 360 additional hotels under signed management agreements that are still in development and not yet opened[38] Legal and Governance - The company is involved in a legal dispute with a hotel owner claiming approximately 11,800,000 RMB (about 12,929,000 HKD) for breach of contract, with the outcome still uncertain[35] - The audit committee has been established in accordance with corporate governance codes to review the group's financial data and risk management systems[84] - The audit committee consists of three independent non-executive directors, including Mr. He Zhiping, Dr. Teng Bing Sheng, and Dr. Chen Yan[84] Employee and Dividend Information - The company employed approximately 756 full-time employees across China, Hong Kong, and the United States as of June 30, 2024[77] - No interim dividend was recommended for the period ended June 30, 2024[78]

Financial Performance - The Group recorded revenues of HK$983.1 million and profits of HK$165.2 million in 2023, compared to HK$816.8 million and HK$193.2 million respectively in 2022[31] - The Group's revenue increased by 20.4% to HK$983.1 million in 2023 (2022: HK$816.8 million)[49] - Hotel operation and management services revenue rose by 34.4% to HK$721.0 million in 2023 (2022: HK$536.4 million), driven by a 46.7% increase in hotel management services revenue to HK$545.1 million and a 6.7% increase in hotel operation revenue to HK$175.9 million[59][60] - Investment properties leasing revenue decreased by 9.4% to HK$89.0 million in 2023 (2022: HK$98.2 million), primarily due to lower rental rates[51][61] - Hotel design and construction management services revenue declined by 5.0% to HK$173.0 million in 2023 (2022: HK$182.2 million), mainly due to slower project progress[52][58] - The Group's gross profit and gross profit margin increased to HK$419.0 million and 42.6% respectively in 2023 (2022: HK$343.3 million and 42%)[71] - The Group's net valuation loss on investment properties was HK$7.8 million in 2023 (2022: HK$24.5 million), attributed to the valuation loss in the shopping mall of the Guilin Project[65] - The Group's cost of sales rose by 19.1% to HK$564.0 million in 2023 (2022: HK$473.5 million), primarily due to a 49.3% increase in hotel management services cost to HK$246.2 million as 33 new managed hotels commenced operation[70] - The Group's segment profit from hotel operation and management services increased by 62.5% to HK$212.8 million in 2023 (2022: HK$130.9 million), driven by higher revenue from hotel management services[68][69] - The Group's segment profit from hotel design and construction management services decreased by 75.1% to HK$8.4 million in 2023 (2022: HK$33.9 million), due to lower revenue and increased costs[78] - The Group's total segment profit increased by 34.7% to HK$268.6 million in 2023 (2022: HK$199.4 million)[77] - Net exchange loss amounted to approximately HK$2.1 million in 2023, compared to a net exchange gain of HK$6.8 million in 2022 due to foreign currency fluctuations[80] - Selling and administrative expenses increased by 21.3% to HK$139.2 million in 2023, with the ratio over revenue rising to 14.2%[80] - Finance costs decreased by 34.1% to HK$22.0 million in 2023, primarily due to partial repayment of a loan[80] - Income tax expense increased to HK$89.3 million in 2023, with the ratio over profit before tax rising to 31.8%[80] - Hotel operation and management services segment profit rose to HK$212.8 million in 2023, driven by improved RevPAR and increased revenue[83] - Hotel design and construction management services segment profit decreased sharply by 75.1% to HK$8.4 million in 2023 due to decreased revenue and increased costs[84] - Investment properties leasing segment profit increased by 37.0% to HK$47.4 million in 2023, mainly due to lower valuation loss[86] - Net other income and gains decreased significantly to HK$30.3 million in 2023 from HK$128.1 million in 2022, driven by reduced bank interest income and increased impairments[86] - Profit for the year decreased to HK$191.1 million in 2023, with net assets increasing to HK$3,286.4 million[91] - Profit attributable to owners of the parent decreased to HK$165,154,000 in 2023 from HK$193,242,000 in 2022, a decline of HK$28,088,000[98] - Total profit for the year decreased to HK$191,050,000 in 2023 from HK$232,976,000 in 2022, a decline of HK$41,926,000[98] Hotel Operations and Performance - The Group's RevPAR increased by approximately 43.1% to RMB279 in 2023 from RMB195 in 2022, driven by the lifting of COVID-19 lockdowns and travel restrictions[26] - The occupancy rate for managed hotels increased to 53.6% in 2023 from 40.6% in 2022, with an average daily rate of RMB253 and RevPAR of RMB275[29][30] - The Group's limited-service hotels saw a significant increase in occupancy rate to 59.7% in 2023 from 45.5% in 2022, with RevPAR reaching RMB284[27] - The Group's franchised hotels achieved an average daily rate of RMB398 and RevPAR of RMB397 in 2023, with occupancy rates increasing to 209% from 168% in 2022[33][41] - The Group's e-commerce sales during Double 11 reached a record high of RMB300 million, maintaining its top position on Fliggy for three consecutive years[34] - The Group's Wanda Moments and Wanda Encore brands are part of its limited-service hotel portfolio, targeting specific customer segments[8] Expansion and Development - The Group added 35 new managed hotels in 2023, expanding its portfolio to 157 hotels with over 33,000 rooms, and has over 300 hotels under construction or pending opening[31] - The Group plans to add 42 new hotels in 2024, continuing its expansion strategy in the domestic tourism market[45] - The Group's hotel design and construction management businesses focus on providing comprehensive services, charging fees based on building area and project costs[43] Financial Position and Liquidity - The Group's current ratio improved to 1.16 as of 31 December 2023, compared to 1.02 in 2022[104] - Cash and restricted bank balances as of 31 December 2023 were approximately HK$359,200,000, a significant decrease from HK$1,080,900,000 in 2022, with RMB accounting for 87% of total cash[106][104] - Interest-bearing loans decreased to HK$4,300,000 in 2023 from HK$11,400,000 in 2022, all due within one year[106] - The Group's cash (including restricted bank balance) amounted to approximately HK$359.2 million as of 31 December 2023, primarily consisting of RMB, a decrease from HK$1,080.9 million in 2022[123] - The Group's interest-bearing loan was approximately HK$4.3 million as of 31 December 2023, repayable within one year, down from HK$11.4 million in 2022[123] - The Group's total debts were HK$4,342 thousand as of 31 December 2023, a significant decrease from HK$11,404 thousand in 2022[127] - The Group's net cash position improved to HK$354,827 thousand as of 31 December 2023, compared to HK$1,069,517 thousand in 2022[127] - The Group's total equity increased to HK$3,286,433 thousand as of 31 December 2023, up from HK$3,187,483 thousand in 2022[127] - The Group's total assets decreased to HK$4,552,607 thousand as of 31 December 2023, down from HK$5,261,205 thousand in 2022[127] Corporate Governance and Leadership - Mr. He Zhiping has been an independent non-executive Director since March 2018 and has extensive experience in various leadership roles, including as a director and vice chairman of JA Solar Technology Co., Ltd. from December 2019 to December 2022[143][144] - Dr. Teng Bing Sheng, an independent non-executive director since March 2019, has extensive experience in mergers and acquisitions and strategic management, and currently serves as an independent non-executive director for several listed companies[145] - Dr. Chen Yan, an independent non-executive director since March 2019, has extensive experience in accounting and serves as a professor at Dongbei University of Finance and Economics, as well as an independent director for several companies[147] - Ms. Hui Wai Man, Shirley, the company secretary since December 2000, has over 22 years of professional experience in public accounting and corporate finance and holds memberships in several professional accounting and governance organizations[148][149] - Mr. Dong Jun, aged 52, has been vice president of Wanda Hotel Management Group since January 2018, responsible for the Full-service Hotel Division[150] - Mr. Chen Mengchao, aged 53, has been vice president of Wanda Hotel Management Group since October 2018, responsible for the Lifestyle Hotel Division[150] - Mr. Yang Bing, aged 56, joined the group in May 2017 and is responsible for the financial center, information, and supply chain of Wanda Hotel Management Group[150] - Mr. Wang Xin, aged 39, has been vice president of Wanda Hotel Management Group since May 2023, responsible for the marketing center, brand management center, and e-commerce company operations[152] - Mr. Ning Qifeng has extensive experience in property development and management, including hotel development and construction management, and holds a Ph.D. in engineering from Tongji University[161] - Mr. Liu Yingwu has extensive experience in commercial planning and design, including hotel design management, and holds a master's degree in business administration from Hefei University of Technology[161] - Mr. Zhang Lin has extensive experience in large-scale property development, property management, and entertainment enterprises, particularly in corporate strategy and investment, and holds an Executive MBA from Beijing University[163][164] - Dr. Teng Bing Sheng has extensive experience in mergers and acquisitions and strategic management, and holds a doctorate in strategic management from City University of New York[168] Sustainability and Compliance - The company emphasizes corporate sustainability through quality services and collaboration with suppliers, with 'Customer First' as a core value[155] - The company has established mechanisms for handling customer service, support, and complaints, and collaborates with suppliers to deliver sustainable products and services[155] - The company has allocated systems and human resources to ensure compliance with regulations and maintain good working relationships with regulatory authorities[156] - The Group has complied with all relevant laws and regulations during the year ended 31 December 2023[182] Employees and Human Resources - The Group had approximately 709 full-time employees as of 31 December 2023, located in the PRC (including Hong Kong) and the USA[112][133] - The Group operates a Mandatory Provident Fund scheme in Hong Kong and contributes to pension schemes in other regions, with the only obligation being ongoing contributions[195] Investments and Assets - Long-term receivables as of 31 December 2023 amounted to approximately HK$1,879.0 million, compared to HK$1,783.9 million in 2022, primarily consisting of deferred consideration from the Chicago Project Disposal and related interest[92] - The deferred amount from the Chicago Project Disposal is divided into two tranches: the first tranche of USD103.5 million with an interest rate ranging from 8% to 15%, and the second tranche of USD100 million with an interest rate ranging from 3% to 15%[92][95][96] - The Group's investment properties and property, plant, and equipment details are outlined in the financial statements notes 14 and 15[192][193] Suppliers and Customers - The Group's five largest suppliers accounted for approximately 66% of total purchases, with the largest supplier contributing 33.9% of total purchases[187] - The Group's five largest customers accounted for 50% of total sales in 2023, with the largest customer contributing approximately 30% of total sales[189] Post-Reporting Period Events - As of the date of approval of the consolidated financial statements, there were no significant events after the reporting period that required disclosure[159] Dividends and Shareholder Returns - The Directors did not recommend the payment of a final dividend for the year 2023 (2022: Nil)[115][132] Risk Management - The Group's exposure to currency risk is primarily through long-term receivables and payables denominated in USD, with no hedging instruments used as of 31 December 2023[109] Miscellaneous - The Group had no significant investment, material acquisition, or disposal of subsidiaries and associated companies during the year[111]

Revenue Growth - Revenue increased by 20.4% to approximately HKD 983.1 million in 2023 (2022: HKD 816.8 million)[3] - Revenue increased to 983,068 thousand yuan in 2023, up from 816,780 thousand yuan in 2022, representing a growth of approximately 20.4%[54] - Revenue from external customers in China (including Hong Kong) increased to HK$978,390,000 from HK$813,698,000 year-over-year[88] - Revenue from customer contracts rose to 894,062 thousand yuan in 2023 from 718,589 thousand yuan in 2022, an increase of 24.4%[110] Cost and Profit Analysis - Sales cost rose by 19.1% to approximately HKD 564.0 million in 2023 (2022: HKD 473.5 million), driven by a 49.3% increase in hotel management service costs to HKD 246.2 million (2022: HKD 164.9 million)[4] - Gross profit rose to 419,021 thousand yuan in 2023, compared to 343,306 thousand yuan in 2022, an increase of 22.1%[54] - Net profit attributable to the parent company's owners decreased to 165,154 thousand yuan in 2023 from 193,242 thousand yuan in 2022, a decline of 14.5%[54] - The company's profit for the year was HK$191,050,000, compared to HK$232,976,000 in the previous year[73] Segment Performance - Hotel operation and management services segment profit increased to HKD 212.8 million in 2023 (2022: HKD 130.9 million), partially offset by a HKD 19.7 million increase in general and administrative expenses[7] - Investment property leasing segment profit increased by 37.0% to HKD 47.4 million in 2023 (2022: HKD 34.6 million), mainly due to lower valuation losses[8] - Segment revenue from external customers was 816,780 thousand yuan in 2022, with the largest contribution from management services at 536,424 thousand yuan[68] - Segment profit for 2022 was 199,358 thousand yuan, with management services contributing 130,917 thousand yuan[68] - Revenue from hotel management services rose to HK$545,102,000 from HK$371,624,000 in the previous year[90] - Revenue from hotel design and construction management services decreased to HK$173,035,000 from HK$182,165,000 year-over-year[90] - Total revenue from investment property operating leases was HK$89,006,000, down from HK$98,191,000 in the previous year[90] - Hotel management service revenue increased to 545,102 thousand yuan in 2023 from 371,624 thousand yuan in 2022, representing a growth of 46.7%[110] Financial Position and Ratios - The group's current ratio improved to 1.16 as of December 31, 2023 (2022: 1.02)[24] - Total comprehensive income for the year was 160,016 thousand yuan in 2023, significantly higher than 21,397 thousand yuan in 2022[55] - Non-current assets increased to 3,791,098 thousand yuan in 2023 from 3,751,112 thousand yuan in 2022[56] - Current assets decreased to 761,509 thousand yuan in 2023 from 1,510,093 thousand yuan in 2022, a drop of 49.6%[56] - Total equity grew to 3,286,433 thousand yuan in 2023, up from 3,187,483 thousand yuan in 2022[57] - Retained earnings increased to 842,276 thousand yuan in 2023 from 678,436 thousand yuan in 2022, a rise of 24.1%[57] - The company's total assets increased to HK$4,552,607,000 from HK$3,672,048,000 year-over-year[84][88] - Total liabilities stood at HK$1,266,174,000, compared to HK$909,088,000 in the previous year[84] Employee and Expense Management - The group employed approximately 709 full-time employees in China (including Hong Kong) and the U.S. as of December 31, 2023[18] - Employee benefit expenses increased to HK$241,399,000 from HK$202,303,000 year-over-year[95] - Employee benefit expenses rose to 84,800 thousand yuan in 2023 from 69,399 thousand yuan in 2022[115] Dividend and Financial Policies - No final dividend was recommended for the year (2022: none)[28] - The company did not recommend the payment of a final dividend for the year ended December 31, 2023[162] Interest and Deferred Payments - Bank interest income decreased by HKD 16.1 million due to reduced cash and cash equivalents[9] - The first deferred amount of approximately USD 103.5 million accrues interest at 9% per annum from the first anniversary of the completion date[13] - The second deferred amount of USD 100.0 million accrues interest at 7% per annum from the second anniversary of the completion date[14] - Bank interest income decreased to 5,672 thousand yuan in 2023 from 21,726 thousand yuan in 2022[114] - Long-term receivables interest income dropped to 100,810 thousand yuan in 2023 from 119,323 thousand yuan in 2022[114] Lease and Rental Information - Lease liabilities decreased to 355,192 thousand yuan in 2023 from 387,997 thousand yuan in 2022[124] - The company's office lease expenses decreased to 12,263 thousand yuan in 2023 from 18,013 thousand yuan in 2022[122] - Total lease-related expenses recognized in profit or loss decreased to 59,625 thousand yuan in 2023 from 63,575 thousand yuan in 2022[125] - Rental income from investment properties in Guilin decreased to 89,006 thousand yuan in 2023 from 98,191 thousand yuan in 2022[126] - Lease liabilities decreased to 231,768 thousand yuan in 2023 from 256,142 thousand yuan in 2022[149] - The company's lease terms for hotels typically range from 15 to 20 years, with an initial rent-free period of 2 to 15 months[200] - Fixed rent is paid quarterly or semi-annually during the first 3 to 5 years of the lease, followed by annual rent increases based on agreed-upon rates[200] - Lease agreements allow for extensions through mutual agreement[200] - As of December 31, 2023, none of the company's leases are expected to expire within one year[200] Trade and Receivables - Trade receivables impairment loss increased to 48,344 thousand yuan in 2023 from 10,114 thousand yuan in 2022[114] - Trade receivables and notes increased to 189,110 thousand yuan in 2023 from 214,665 thousand yuan in 2022[150] - Expected credit loss rate for trade receivables increased to 23.785% in 2023 from 6.508% in 2022, with total expected credit loss of 58,985 thousand yuan[132] - Impairment loss on trade receivables increased to 162,974 thousand yuan in 2023 from 116,742 thousand yuan in 2022[153] - Trade receivables amounted to 103,989,000 yuan as of December 31, 2023, with no credit enhancement arrangements for the unrecovered amounts[155] - Trade payables aged over 12 months decreased to 63,769 thousand yuan in 2023 from 76,274 thousand yuan in 2022[153] - Trade payables increased to 34,443 thousand yuan in 2023 from 23,479 thousand yuan in 2022, while other payables and accrued expenses rose to 274,315 thousand yuan from 254,864 thousand yuan[159] Other Financial Metrics - Depreciation and amortization expenses totaled 48,751 thousand yuan in 2023, with 47,142 thousand yuan allocated to segment assets[106] - Capital expenditures for segment assets amounted to 13,585 thousand yuan in 2023[106] - Prepayments, other receivables, and other assets increased to 18,016 thousand yuan in 2023 from 15,064 thousand yuan in 2022[134] - Long-term receivables related to the sale of Parcel C LLC amounted to 1,938,247 thousand yuan, including deferred amount of 1,590,508 thousand yuan and interest of 347,739 thousand yuan[135] - Prepayments decreased to 22,834 thousand yuan in 2023 from 37,251 thousand yuan in 2022, while deposits and other receivables increased to 88,727 thousand yuan from 70,249 thousand yuan[157] - Long-term receivables increased to 1,963,471 thousand yuan in 2023 from 1,832,874 thousand yuan in 2022, with impairment provisions rising to 84,500 thousand yuan from 48,937 thousand yuan[157] Legal and Tax Matters - The company faced a legal claim of approximately 11,800,000 yuan from a hotel owner, resulting in a restricted bank account with a balance of 13,021,000 yuan[186] - Total tax expense for the year increased to 89,284 thousand yuan in 2023 from 66,055 thousand yuan in 2022[141] - The company's deferred tax balance was not significantly impacted due to the adoption of new and revised Hong Kong Financial Reporting Standards[79] Business Expansion and Branding - The hotel business expanded from 122 hotels with 28,656 rooms as of December 31, 2022, to 157 hotels with over 33,900 rooms as of December 31, 2023, with an additional 312 hotels under development[190] - The company's hotel brands include luxury, premium, and select service categories, with a focus on providing tailored experiences for different customer segments[166][170][174][175][176][191][192][194][195][197]

Hotel Performance - The occupancy rate for all hotels increased to 53.4% in the first half of 2023, compared to 39.0% in the same period of 2022[1]. - Average daily rate (ADR) rose to RMB 507 for all hotels, up from RMB 434 in the previous year, representing a 16.8% increase[1]. - Revenue per available room (RevPAR) improved to RMB 270, a 59.8% increase from RMB 169 in the same period of 2022[1]. - Total revenue from hotel operation and management services reached HK$335.7 million, a 60.8% increase from HK$208.7 million in 2022[8]. - The segment profit for hotel operation and management services surged to approximately HK$111.6 million, up 175.9% from HK$40.4 million in the previous year[14]. - The Group expanded its hotel network from 122 hotels with 28,656 rooms as of December 31, 2022, to 138 hotels with over 31,000 rooms as of June 30, 2023[177]. - An additional 266 hotels have been contracted to be managed by the Group but are still under development and have not commenced operations as of June 30, 2023[177]. - The Group's hotel businesses are operated under three models: leased-and-operated hotels, managed hotels, and franchised hotels[177]. - Major full-service hotel brands managed by the Group include Wanda Reign, Wanda Vista, Wanda Realm, Wanda Jin, Wanda Yi, and Wanda Amber[200]. - The Group's hotel brands cater to various market segments, including ultra-luxury, luxury, and midscale offerings[199]. - The Group employs a multi-brand strategy targeting different customer segments with unique preferences and needs[199]. - The hotel management and operation capabilities of the Group are comprehensive, covering design, construction management, and consultancy services[177]. - The Group's performance during the period indicates a positive trend in hotel management and operations, supported by a growing portfolio of properties[177]. Financial Performance - The Group's profit for the period was HK$165.1 million, compared to HK$78.5 million in the same period of 2022, marking an increase of 110.5%[21]. - Revenue for the six months ended June 30, 2023, increased to $464,089,000, up 30.5% from $355,530,000 in 2022[146]. - Gross profit for the period was $222,985,000, representing a 32.5% increase compared to $168,267,000 in the previous year[146]. - Profit before tax rose significantly to $205,160,000, compared to $106,904,000 in 2022, marking an increase of 92.0%[146]. - Profit for the period reached $165,133,000, more than double the $78,461,000 reported in the same period last year, reflecting a growth of 110.0%[148]. - Earnings attributable to owners of the parent increased to $140,047,000, up from $63,745,000, indicating a growth of 119.5%[146]. - Total comprehensive income for the period was $97,446,000, compared to a loss of $13,887,000 in 2022, showing a significant turnaround[148]. - The company reported a net current asset value of $43,341,000, an increase from $33,529,000 in the previous year[155]. - Total non-current assets amounted to $3,770,663,000, slightly up from $3,751,112,000 at the end of 2022[155]. - The company experienced a net valuation loss on investment properties of $1,102,000, compared to a loss of $25,108,000 in the previous year, indicating improved performance[146]. - Other income and gains for the period were $62,557,000, an increase from $53,295,000 in 2022, reflecting a growth of 17.3%[146]. Cost and Expenses - Cost of sales increased by approximately 28.7% to HK$241.1 million, primarily due to a 46.9% rise in variable costs associated with hotel operations[10]. Cash and Liquidity - Cash and cash equivalents decreased to approximately HK$384.5 million as of June 30, 2023, down from HK$1,080.9 million at the end of 2022[34]. - The current ratio improved slightly to 1.06 as of June 30, 2023, compared to 1.02 at the end of 2022[34]. Corporate Governance and Compliance - The Company has complied with the Corporate Governance Code during the period, except for a deviation from code provision C.2.1 regarding the roles of Chairman and CEO[107]. - The Audit Committee comprises three independent non-executive Directors, ensuring oversight of the Group's financial reporting and internal controls[109]. - The company has established an audit committee composed of three independent non-executive directors to oversee financial reporting and internal controls[139]. - The interim condensed consolidated financial information was reviewed in accordance with HKAS 34, covering the financial position as of June 30, 2023, and the results for the six-month period then ended[113]. - The company has maintained compliance with HKAS 34 in all material respects for the interim condensed consolidated financial information[116]. - The interim financial information was reviewed in accordance with Hong Kong Standard on Review Engagements 2410, which is less comprehensive than a full audit[144]. - The review procedures included inquiries and analytical procedures, ensuring a thorough examination of financial data[144]. - The company has not identified any significant matters that would affect the preparation of its interim financial information[119]. Employee and Management - As of June 30, 2023, the Group had a total of approximately 674 full-time employees located in the PRC, Hong Kong, and the USA[60]. - Performance bonuses for employees were granted on a discretionary basis, reflecting their performance and market salaries[38][41]. - The Group's management will closely monitor business operations to adapt to market conditions[40]. Future Plans and Strategy - The Group plans to add 30-35 new hotels in 2023, anticipating a continued rebound in the domestic tourist market in the PRC following the lifting of travel restrictions[40][42]. - The Group aims to prudently seek profitable investment opportunities to enhance profitability and maximize shareholder returns[58][61]. - The Group's hotel network expansion reflects a strategic focus on increasing market presence and enhancing service offerings[177]. Shareholding Structure - As of June 30, 2023, Dalian Wanda Group holds a short position of 3,055,043,100 shares, representing 65.04% of the issued share capital of the Company[77]. - UBS Group AG has a long position of 3,055,663,497 shares, accounting for approximately 65.05% of the issued share capital[77]. - Mr. Chen Chang Wei holds a long position of 278,098,230 shares, which is 5.92% of the issued share capital[80]. - SeaTown Private Strategies GP II Pte. Ltd. has a long position of 3,055,043,100 shares, representing 65.04% of the issued share capital[79]. - As of January 11, 2023, Wanda Overseas pledged all its 3,055,043,100 ordinary shares as security for a loan extended to Wanda Culture Holding Co. Limited[80]. - Temasek Holdings (Private) Limited has a long position of 3,055,043,100 shares, which is 65.04% of the issued share capital[77]. - The total number of shares in issue as of June 30, 2023, is 4,527,347,600[85]. - Credit Suisse AG holds a long position of 3,055,043,100 shares, representing 65.04% of the issued share capital[77]. - Mr. Wang Jianlin has a short position of 3,055,043,100 shares, which is 65.04% of the issued share capital[77]. - The Company has multiple entities with significant interests in its shares, indicating a concentrated ownership structure[84]. - Mr. Han beneficially owns 4,400,000 shares in DWCM and has an interest in 1,600,000 shares through a limited partnership[88]. - Wanda HK holds more than one-third of the issued shares of Wanda Real Estate Investments Limited, indicating significant ownership interest[100]. - DWCM holds more than one-third of the issued shares of Wanda HK, reflecting a strong interconnected ownership structure[100]. - Dalian Wanda Group holds more than one-third of the issued shares of DWCM, further emphasizing the group's substantial influence[100]. - Dalian Hexing holds more than one-third of the issued shares of Dalian Wanda Group, indicating a layered ownership structure[100]. - Mr. Wang Jianlin holds more than one-third of the issued shares of Dalian Hexing, showcasing his significant stake in the overall structure[100]. - Credit Suisse AG, Singapore Branch, UBS AG, and UBS Switzerland AG are wholly owned by UBS Group AG, which is deemed to have an interest in the company's shares[100]. - STPCMF is wholly owned by STPCFF, which is owned 66.83% by STSFF, indicating a complex ownership hierarchy[101]. - STSFF is owned 73.34% by Pilatus Investments Pte. Ltd., highlighting the investment structure within the group[101]. - SeaTown Holdings Pte. Ltd. is wholly owned by SeaTown Capital Pte. Ltd., which is part of a broader ownership network[103]. - As of June 30, 2023, Mr. Chen held a long position of 301,698,230 shares, including 204,237,800 shares held in trust and 73,860,230 shares beneficially owned by Ever Good[10]. - The Company did not have any effective share schemes as of June 30, 2023[10]. - Neither the Company nor its subsidiaries purchased, sold, or redeemed any of the Company's listed securities during the period[10]. - Pilatus Investments Pte. Ltd. holds a 65.04% interest in the company, indicating significant control over corporate decisions[125].

Financial Performance - Total revenue for the six months ended June 30, 2023, was HKD 464,089,000, an increase of 30.5% compared to HKD 355,530,000 in the same period of 2022[2] - Profit before tax for the same period was HKD 205,160,000, up 92.0% from HKD 106,904,000 in 2022[6] - Net profit for the six months ended June 30, 2023, was HKD 165,133,000, representing a 110.5% increase from HKD 78,461,000 in 2022[7] - The company reported a gross profit of HKD 222,985,000, compared to HKD 168,267,000 in the same period last year, reflecting a gross margin improvement[15] - For the six months ended June 30, 2023, the total comprehensive income was HKD 97,446,000, compared to a loss of HKD 13,887,000 for the same period in 2022[37] - The company reported a significant increase in trade receivables to HKD 218,809,000 from HKD 214,665,000 as of December 31, 2022[38] - The company reported a net foreign exchange gain of HKD 9,853,000 for the six months ended June 30, 2023, compared to a loss of HKD 8,430,000 in the previous year[58] - The company recorded a total tax expense of HKD 40,027,000 for the six months ended June 30, 2023, compared to HKD 28,443,000 in the same period of 2022, an increase of 40.8%[65] - The group’s total profit for the period was HKD 165,133,000, an increase of 110.5% from HKD 78,461,000 in 2022[161] Revenue Breakdown - Revenue from hotel management services was HKD 254,050,000, a significant increase from HKD 152,003,000 in the previous year[2] - Revenue from hotel operations reached HKD 81,668,000, up from HKD 56,737,000, marking a growth of 43.9%[2] - Total revenue from hotel operations reached HKD 420,154,000 for the six months ended June 30, 2023, up from HKD 305,361,000 in the same period of 2022, representing a growth of 37.5%[57] - Revenue from hotel management services increased significantly to HKD 254,050,000 in 2023, compared to HKD 152,003,000 in 2022, marking a rise of 67.0%[57] - Total revenue for hotel operations and management services reached HKD 335,718,000, a 60.8% increase from HKD 208,740,000 in 2022[150] Asset and Liability Management - Total assets as of June 30, 2023, were HKD 4,563,682,000, while total liabilities were HKD 1,339,819,000[30] - Current assets decreased significantly to HKD 793,019,000 from HKD 1,510,093,000 as of December 31, 2022, indicating a liquidity contraction[38] - Total liabilities decreased to HKD 2,073,722,000 as of June 30, 2023, from HKD 2,471,956,000 as of December 31, 2022[53] - The company's equity increased to HKD 3,223,863,000 as of June 30, 2023, from HKD 3,187,483,000 as of December 31, 2022[39] - Cash and cash equivalents, including restricted bank balances, decreased to approximately HKD 384.5 million as of June 30, 2023, from HKD 1,080.9 million as of December 31, 2022[183] Operational Highlights - The overall hotel occupancy rate improved to 53.4% for the six months ended June 30, 2023, up from 39.0% in the same period of 2022[119] - Average daily room rate (ADR) for all hotels increased to RMB 507, compared to RMB 434 in the same period of 2022[119] - The number of operating hotels reached 127, with a total of 31,400 rooms as of June 30, 2023[111] - The group managed 127 hotels, accounting for approximately 92% of all operating hotels as of June 30, 2023[140] - The group operates four leased and managed hotels, accounting for approximately 2.9% of total operating hotels[113] Strategic Initiatives - The company is focusing on expanding its hotel design and construction management services as part of its strategic business units[47] - The group aims to enhance its hotel design and construction management services, targeting the same customer base as its hotel management operations[121] - The company plans to expand its hotel network by adding 30-35 new hotels in 2023, anticipating strong demand in the domestic tourism market[191] - The group employs a multi-brand strategy to cater to diverse customer preferences and needs[135] Other Financial Metrics - Basic earnings per share for the period were HKD 3.0, up from HKD 1.4 in 2022[16] - The division profit for hotel operations and construction management services was HKD 69,981,000, after accounting for unallocated expenses of HKD 7,788,000[51] - The group’s rental properties segment profit increased over fivefold to approximately HKD 26,500,000 from HKD 3,900,000 in the previous year[156] - Financing costs decreased to approximately HKD 11,100,000 from HKD 20,900,000 in the previous year, due to repayment of loans[159] - The company has not made any provisions for Hong Kong profits tax or overseas corporate income tax during the period due to no taxable profits being generated[61]

Financial Performance - The Group recorded revenue of HKD 816.8 million and profit attributable to equity holders of HKD 193.2 million for 2022, compared to HKD 873.7 million and HKD 233.1 million in 2021[21]. - In 2022, the Group reported revenue of HK$816.8 million and profit attributable to equity holders of HK$193.2 million, a decrease from HK$873.7 million and HK$233.1 million in 2021[26]. - The Group's revenue decreased by 6.5% to approximately HK$816.8 million for the year ended 31 December 2022, down from HK$873.7 million in 2021[83]. - Hotel operation and management services segment revenue decreased by 5.1% to approximately HK$536.4 million in 2022, primarily due to a 12.2% decrease in hotel management fees to approximately HK$371.6 million[83]. - The segment profit for hotel operation and management services decreased to approximately HK$130.9 million in 2022, down from HK$167.5 million in 2021[87]. - The Group's net other income and gains decreased significantly to approximately HK$128.1 million in 2022 from approximately HK$211.9 million in 2021, primarily due to a decrease in other income by approximately HK$141.0 million[105]. - Selling and administrative expenses decreased by 34.5% to approximately HK$114.8 million in 2022, with the ratio over revenue decreasing to 14% from 20.1%[106]. - Finance costs decreased by 38.9% to approximately HK$33.4 million in 2022 from HK$54.6 million in 2021[106]. - Income tax expense decreased to approximately HK$66.1 million in 2022 from HK$139.7 million in 2021, mainly due to a decrease in current income tax expense[106]. - Profit attributable to the owners of the parent decreased to HK$193.2 million in 2022 from HK$233.1 million in 2021[94]. Hotel Network Expansion - As of December 31, 2022, the Group expanded its hotel network to 122 hotels with nearly 30,000 rooms, up from 89 hotels with 23,268 rooms as of December 31, 2021[19]. - An additional 232 hotels were contracted to be managed by the Group but are still under development and have not commenced operation yet[22]. - The Group's hotel network expansion is aimed at targeting different customer segments through a multi-brand strategy[24]. - The company plans to add 30 to 35 new hotels in 2023 as part of its expansion strategy[57]. - As of December 31, 2022, the Group managed a hotel network of 122 hotels with nearly 30,000 rooms across over 85 cities in China[27]. Financial Position - The financial position remains robust with net cash recorded as of December 31, 2022, supporting the Group's business growth strategies[21]. - The Group maintains a robust financial position with a net cash status as of December 31, 2022, positioning it well for growth initiatives[26]. - As of 31 December 2022, the Group's cash, including restricted bank balances, was approximately HK$1,080.9 million, down from HK$3,008.5 million as of 31 December 2021[101]. - The Group's total equity was HK$3,187.5 million as of 31 December 2022, down from HK$3,847.6 million in 2021[126]. - The total assets of the Group were HK$5,261.2 million as of 31 December 2022, compared to HK$7,205.4 million in the previous year[126]. - The Group's net cash position was HK$1,069.5 million as of 31 December 2022, a decrease from HK$2,135.5 million in 2021[126]. - The Group's interest-bearing loans amounted to approximately HK$11.4 million as of 31 December 2022, a significant decrease from HK$873.0 million as of 31 December 2021[124]. - The Group's current ratio was 1.02, down from 1.25 as of 31 December 2021[124]. Operational Performance - The occupancy rate for all hotels was 43.5% for the year ended 31 December 2022, down from 47.6% in 2021[53]. - The average daily rate for all hotels was RMB 449 in 2022, compared to RMB 539 in 2021[53]. - The RevPAR for all hotels was RMB 195 in 2022, a decrease from RMB 257 in 2021[53]. - The average daily rate for full-service hotels was RMB 479 in 2022, down from RMB 560 in 2021[53]. - The average daily rate for limited-service hotels was RMB 276 in 2022, slightly up from RMB 274 in 2021[53]. - Occupancy rate for all hotels decreased to 43.5% from 47.6% year-over-year[65]. - Average daily rate for all hotels dropped to RMB 449 from RMB 539, a decrease of approximately 16.7%[65]. - RevPAR for all hotels fell to RMB 195 from RMB 257, representing a decline of about 24.1%[65]. Strategic Initiatives - The Group's strategic initiatives positioned it to capitalize on market opportunities as the tourism sector gradually rebounded in the second half of 2022[19]. - The Group's commitment to innovation and practical approaches helped maintain business stability during challenging market conditions[13]. - The Group aims to enhance its business sustainability and growth potential with the support of its parent company, Dalian Wanda Commercial Management Group[29]. - The tourism and hospitality sector is viewed as a strategic pillar for economic improvement, with the Group committed to investing resources for long-term success[29]. Hotel Management Services - The Group's hotel management services are provided through three models: leased-and-operated hotels, managed hotels, and franchised hotels[22]. - The Group's hotel management and operation capabilities are comprehensive, covering hotel design, construction management, and related consultancy services[22]. - The Group's hotel brands are designed to cater to various market segments, including ultra-luxury, luxury, and midscale offerings[39][44]. - The Group's multi-brand strategy includes full-service brands like Wanda Reign and Wanda Vista, and limited-service brands such as Wanda Moments and Wanda Yue, targeting diverse customer preferences[33]. - The company offers hotel owners the right to use its brand name, logo, and operating procedures under both managed and franchised hotel models[49]. Committee and Governance - The Audit Committee held two meetings in 2022 to review the Group's financial performance for the year ending December 31, 2021, and the interim results for the six months ending June 30, 2022[172]. - The Remuneration Committee consists of three Independent Non-executive Directors and is responsible for making recommendations on the remuneration policy for all Directors and senior management[168]. - The Nomination Committee met once in 2022 to review the Board's composition and consider the independence of Independent Non-executive Directors[175]. - The Company has established a written nomination policy for the selection and recommendation of candidates for directorship[160]. - The Board has adopted measures for effective communication with shareholders, including annual general meetings and contact information on the Company's website[154]. - The Company has a formal and transparent procedure for developing remuneration policy, ensuring it is aligned with market standards[168]. - The Audit Committee has the authority to investigate any matters under its scope and obtain independent professional advice as necessary[174]. - The Company has implemented a risk management and internal control system, which is reviewed by the Audit Committee[174]. - The Board has established a Nomination Committee to develop and implement policies for the nomination of Board members, focusing on qualifications, skills, experience, and gender diversity[177]. - The Remuneration Committee held one meeting in 2022 to assess the performance of the Executive Director and review the remuneration policy for Directors[187]. - The Audit Committee, comprised of three Independent Non-executive Directors, supervises the Group's financial reporting process and internal controls[192]. - The Company is committed to reviewing the Board's structure and composition at least annually to align with corporate strategy and diversity policies[178]. - The diversity policy for the Board is regularly reviewed and updated to meet the requirements of the Listing Rules[200]. - The Company aims to ensure independence within the Board by assessing the independence of independent non-executive directors[200]. - The Audit Committee is responsible for recommending the appointment and removal of external auditors and monitoring their independence[194]. - The Company has a policy for the nomination of Board members that includes criteria for identifying and selecting candidates[177]. - The Remuneration Committee reviews compensation arrangements for Directors and senior management, including termination compensation[189]. - The Board's diversity policy considers various factors, including gender, age, culture, and professional experience[178].