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].

Financial Performance - Revenue from investment property leasing decreased by 8.5% to approximately HKD 98,200,000 in 2022, compared to HKD 107,300,000 in 2021[22]. - Gross profit and gross margin fell to approximately HKD 343,300,000 and 42.0% in 2022, down from HKD 461,900,000 and 52.9% in 2021[23]. - Total revenue for hotel operations and management services decreased by 21.8% to HKD 130,917,000 in 2022, from HKD 167,471,000 in 2021[24]. - Other income and gains decreased significantly from approximately HKD 211,900,000 in 2021 to HKD 128,100,000 in 2022[50]. - The company's total assets as of December 31, 2022, were HKD 5,261.2 million, down from HKD 7,205.4 million in 2021[53]. - The company's net asset value decreased to HKD 3,187.5 million in 2022 from HKD 3,847.6 million in 2021[53]. - The company reported a basic earnings per share of RMB 387,997,000 for the year, compared to RMB 424,436,000 in the previous year[78]. - Total revenue for the year ended December 31, 2022, was HKD 816,780,000, a decrease of 6.5% from HKD 873,659,000 in 2021[99]. - Gross profit for 2022 was HKD 343,306,000, down 25.7% from HKD 461,926,000 in the previous year[99]. - Net profit for the year was HKD 232,976,000, a decrease of 7.3% compared to HKD 251,260,000 in 2021[99]. Receivables and Credit Risk - The expected credit loss rate for trade receivables is 6.791%, with total expected credit loss amounting to 11,671,000 HKD[3]. - The expected credit loss for overdue receivables over 12 months is 30.728%, indicating significant credit risk[3]. - The company reported a net impairment loss on trade receivables of 10,114 thousand, compared to 59,809 thousand in the previous year, showing a significant reduction[185]. - Trade receivables at the end of the year were 116,742 thousand, slightly down from 117,048 thousand, indicating a marginal decrease of 0.3%[185]. Assets and Liabilities - Long-term receivables amount to approximately 1,832,874,000 HKD (equivalent to about 235,078,000 USD), with an impairment increase of 29,525,000 HKD during the year[5]. - The company's total liabilities decreased to 1,303,500 thousand from 1,683,341 thousand, a reduction of approximately 22.5% year-over-year[191]. - Non-current liabilities totaled HKD 597,158,000, down from HKD 689,491,000 in the previous year, reflecting a reduction of 13.4%[97]. - Cash and cash equivalents significantly decreased to HKD 1,067,711,000 from HKD 3,008,545,000, a decline of 64.5%[101]. Revenue Breakdown - The group's revenue from hotel management services decreased to RMB 371,624,000 in 2022 from RMB 423,392,000 in 2021, representing a decline of approximately 12.2%[67]. - Total revenue from hotel operations increased to RMB 164,800,000 in 2022, up from RMB 142,086,000 in 2021, marking a growth of about 15.9%[67]. - The total revenue for the group was RMB 816,780,000 in 2022, compared to RMB 873,659,000 in 2021, indicating a decline of about 6.5%[67]. - Revenue from hotel management services decreased to 356,689 thousand from 423,392 thousand, a decline of 15.8% year-over-year[165]. - Hotel operations revenue from product sales and dining services increased to 102,267 thousand from 77,806 thousand, a growth of 31.4% year-over-year[165]. Operational Insights - The total number of hotel rooms managed by the company is 28,656, with 112 managed hotels and 6 franchised hotels[14]. - The company operates various hotel brands, including luxury and mid-range options, catering to different customer segments[12][14]. - The company is focused on expanding its hotel management and operation services, targeting a similar customer base as its design and construction management business[20]. - The company has established a new subsidiary for hotel labor dispatch services to enhance the quality of hotel staff provided to customers[91]. - The company plans to expand its market presence and invest in new product development as part of its growth strategy[106]. Financial Management - Financing costs decreased by 38.9% to approximately HKD 33,400,000 in 2022, compared to HKD 54,600,000 in 2021[51]. - The company recorded a tax expense of approximately HKD 66,100,000 in 2022, down from HKD 139,700,000 in 2021[27]. - The total income tax expense for the year was 66,055 thousand, down from 139,664 thousand, representing a decrease of 52.7% year-over-year[173]. - The group incurred a total finance cost of 33,353 thousand HKD, which includes interest on lease liabilities of 23,818 thousand HKD[148]. Strategic Developments - The company completed the acquisition of Wanda Hotel Design and Research Institute Co., Ltd. on April 20, 2022, at zero consideration, enhancing its service offerings[123]. - The acquisition of the hotel design institute is considered a business combination under common control, impacting the financial statements accordingly[105]. - The board proposed to adopt new company bylaws to align with Bermuda applicable laws and listing rules, replacing the existing bylaws[65]. - The group has maintained a conservative foreign exchange risk management approach, with no financial instruments used for hedging foreign exchange risks during the year[56].

Hotel Network and Operations - As of June 30, 2022, the Group's hotel network consisted of 97 hotels with 24,609 rooms in operation, covering 78 cities in the PRC and Istanbul, Turkey[7]. - During the period, the Group added nine new hotels and terminated one hotel operation[7]. - There are 199 hotels contracted to be managed by the Group that are still under development and have not commenced operation[7]. - The Group's hotel management services are provided by Wanda Hotel Management, a leading hotel services provider in the PRC[7]. - The hotel brands managed by Wanda Hotel Management include luxury and upscale options, targeting distinct customer segments[10]. - Wanda Reign is positioned as an ultra-luxury hotel brand, while Wanda Vista targets distinguished guests with a blend of Oriental elegance[10]. - Wanda Moments is a high-end midscale hotel brand dedicated to quality design and select services for business travelers[12]. - The Group's principal businesses are divided into hotel operation and management, hotel design and construction management, and investment properties leasing[7]. - The Group's financial performance and operational metrics reflect a strategic focus on expanding its hotel network and enhancing service offerings[6]. - The management emphasizes the importance of brand positioning to cater to various market segments and customer preferences[12]. Financial Performance - Revenue for the Group decreased by approximately 14.4% to approximately HK$355.5 million from approximately HK$415.1 million in the corresponding period in 2021[31][32]. - Hotel operation and management services revenue fell by 20.5% to HK$208.7 million compared to HK$262.4 million in 2021[32]. - Investment properties leasing revenue decreased by 5.4% to HK$50.2 million from HK$53.0 million in the previous year[32]. - Gross profit decreased to approximately HK$168.3 million, down from approximately HK$248.4 million, resulting in a gross profit margin decline to 47.3% from 59.8%[36]. - Profit attributable to equity holders of the Company decreased to HK$63.7 million from HK$95.4 million for the corresponding period in 2021, a decline of about 33.1%[58]. - Total segment profit decreased to approximately HK$69.98 million from approximately HK$124.88 million, reflecting a decline of 44%[43]. - The total comprehensive loss for the period was HKD (72,676,000), indicating challenges in financial performance[136]. Operational Metrics - The occupancy rate for all hotels was 39.0% for the six months ended June 30, 2022, down from 48.7% in 2021[21]. - The average daily rate for all hotels was RMB 434 for the six months ended June 30, 2022, compared to RMB 550 in 2021[21]. - RevPAR for all hotels was RMB 169 for the six months ended June 30, 2022, a decrease from RMB 268 in 2021[21]. - Midscale hotels had an occupancy rate of 44.3% for the six months ended June 30, 2022, down from 56.2% in 2021[21]. - Upscale and above hotels had an average daily rate of RMB 462 for the six months ended June 30, 2022, compared to RMB 573 in 2021[21]. Assets and Liabilities - Total assets as of June 30, 2022, were HK$5,255.0 million, down from HK$7,205.4 million as of December 31, 2021[60]. - Total liabilities were reported at HKD 2,102,818,000 as of June 30, 2022, down from HKD 3,357,763,000 at the end of 2021, marking a decrease of around 37%[181]. - The current ratio as of June 30, 2022, was 1.0, down from 1.2 as of December 31, 2021[64]. - Net cash position as of June 30, 2022, was HK$1,026.5 million, compared to HK$2,135.5 million as of December 31, 2021[68]. Employee and Corporate Governance - As of June 30, 2022, the Group employed approximately 624 full-time employees across China, Hong Kong, and the USA[77]. - The Company has complied with the Corporate Governance Code as stipulated in Appendix 14 of the Listing Rules during the Period[112]. - The Audit Committee has reviewed the Group's financial statements for the Period and discussed financial matters with management and external auditors[114]. Future Outlook - The Group anticipates a recovery in domestic tourism and hotel business as pandemic restrictions ease, aiming to manage 10 to 15 new hotels in 2022[77]. - The Group plans to prudently seek profitable investment opportunities to enhance revenue sources and maximize shareholder returns[77]. - The Group aims to optimize its brands, products, and technology to capture the expected improvement in domestic travel demand[77].

Financial Performance - The reported revenue for 2021 was HK$873.7 million, representing a year-on-year increase of 33.3%[9] - Profit attributable to equity holders of the parent for 2021 was HK$240.5 million, reflecting a year-on-year increase of 45.6%[9] - The Group's total revenue for 2021 increased by 33.3% to approximately HK$873.7 million from HK$655.4 million in 2020[38] - Hotel operation and management services revenue rose by 49.6% to approximately HK$565.5 million in 2021, driven by a 39% increase in hotel management service fee income to approximately HK$423.4 million[34][39] - The hotel operation revenue significantly increased by approximately 93.6% to approximately HK$142.1 million, attributed to the opening of a new hotel and improved performance of existing hotels[39] - Hotel design and construction management services revenue increased by 15.7% to approximately HK$200.9 million, due to accelerated work progress and new contracts[43] - Investment properties leasing revenue rose by 3.5% to approximately HK$107.3 million, reflecting a gradual recovery in the retail market[44] - Cost of sales increased by 56% to approximately HK$411.7 million, primarily due to higher sales following the easing of pandemic-related restrictions[45] - Gross profit increased to approximately HK$461.9 million, but the gross profit margin decreased to approximately 52.9% from 59.7% in 2020[46] - Total profit for the year was HK$258.7 million in 2021, compared to HK$230.2 million in 2020, reflecting an increase of 12.4%[65] Operational Capacity and Expansion - As of December 31, 2021, the hotel network consisted of 89 hotels with 23,268 rooms in operation across 74 cities in PRC and Istanbul, Turkey[11] - During 2021, the Group opened 15 new hotels, enhancing its operational capacity[11] - An additional 171 hotels were contracted to be managed by Wanda Hotel Management but are still under development[11] - The Group plans to open 15-20 new hotels in 2022 as part of its strategy to expand the hotel business[39] Market Challenges and Strategic Focus - The hospitality sector in PRC is expected to continue facing challenges from the COVID-19 pandemic in 2022[9] - The Group will focus on attractive investment opportunities while maintaining cost discipline and cautious business development[9] - The Company is confident in its medium and long-term growth prospects supported by its parent company, Dalian Wanda Commercial Management Group[9] - The Group aims to enhance profitability and maximize shareholder returns by seeking profitable investment opportunities and improving operational efficiency[39] Hotel Management and Operations - The Group's comprehensive capabilities in hotel management and operation were highlighted as a competitive advantage[11] - As of December 31, 2021, Wanda Hotel Management operated a total of 23,268 hotel rooms across 89 hotels, with 81 managed hotels accounting for approximately 92% of all hotels in operation[18][20]. - The company had 4 leased-and-operated hotels, representing about 4% of its total hotel operations[20]. - The company offers a range of hotel brands targeting different customer segments, including luxury, upscale, and mid-scale[14][16]. - The average lease term for hotels is between 15 to 20 years, with an initial rent-free period of 2 to 15 months[20]. - The Group emphasizes a customer-oriented culture, taking 'Customer First' as one of its core values to enhance customer satisfaction[115] Financial Health and Assets - As of December 31, 2021, total assets increased to HK$7,201.3 million from HK$6,568.8 million in 2020, representing a growth of approximately 9.6%[69] - The Group's cash amounted to approximately HK$3,007.2 million as of December 31, 2021, up from HK$2,375.3 million in 2020, indicating a year-over-year increase of about 26.5%[71] - The current ratio improved to 1.2 as of December 31, 2021, compared to 0.9 in 2020; excluding a loan from an immediate holding company, the ratio would be 1.9[74] - Total liabilities decreased to HK$3,354.2 million in 2021 from HK$3,782.2 million in 2020, a reduction of approximately 11.3%[69] - The equity attributable to equity holders of the parent increased to HK$2,533.9 million in 2021 from HK$2,220.0 million in 2020, reflecting a growth of about 14.1%[69] Employee and Corporate Governance - The Group has established fair and comprehensive employment policies to attract and retain talent, improving staff morale[116] - The Group values its employees and encourages a good work-life balance, continuing to improve staff benefits[116] - The Directors did not recommend the payment of a final dividend for the year ended 31 December 2021, consistent with the previous year[82] - The Company aims to maintain a sustainable, stable, and continuing dividend policy while balancing shareholder expectations and prudent capital management[122] Future Outlook and Guidance - Future guidance indicates a projected revenue growth of approximately 15% for the upcoming fiscal year, driven by new product offerings and market expansion initiatives[99] - The Group's financial performance and key performance indicators for the year ended 31 December 2021 are detailed in the financial review section[111] - Future developments and outlook for the Group's business are disclosed in the Chairman's Statement and Business Review[111] Environmental and Social Responsibility - Wanda Hotel Development is committed to sustainable practices in its new developments, aligning with global trends towards environmental responsibility[99] - The Group has committed to reducing carbon emissions through green building and energy-saving measures, contributing to environmental protection[113] - The Group has introduced eco-friendly measures in its investment property leasing business, including proper waste disposal[113] Related Party Transactions - The Group has conducted continuing connected transactions during the year ended December 31, 2021, including leasing premises for children's entertainment and playground business[11] - The Hotel Management Framework Agreement with Dalian Wanda Commercial Management was established on November 13, 2018, allowing for hotel management services from January 1, 2019, to December 31, 2038[169] - The annual caps for the total amount payable by DWCM Group for Hotel Management Services are approximately RMB 81,118,000, RMB 80,804,000, and RMB 81,988,000 for the three years ending December 31, 2021[176]

Hotel Operations and Management - As of June 30, 2021, Wanda Hotel Management operates 98 hotels with a total of 25,993 rooms across 71 cities in China, with an additional 144 hotels contracted for future management[7] - The hotel business is divided into three segments: hotel operation and management services, hotel design and construction management services, and investment properties leasing[7] - Wanda Hotel Management targets distinct customer segments with various hotel brands, including Wanda Reign (ultra-luxury), Wanda Vista (deluxe), and Wanda Realm (upper upscale)[9] - The company reported a significant expansion in its hotel network, indicating a robust growth strategy in the hospitality sector[7] - The hotel brands managed by Wanda Hotel Management are designed to cater to different market segments, enhancing customer experience and brand positioning[10] - The company emphasizes quality service and design across its hotel offerings, aiming to provide a balanced life experience for both business and leisure travelers[10] - Wanda Hotel Management's operational model includes a mix of luxury and mid-scale brands, allowing for a diverse portfolio that meets varying customer needs[10] - The company is focused on enhancing its management capabilities and expanding its market presence in the hospitality industry[7] - Future growth strategies include the development of additional hotels and the enhancement of service offerings to attract a broader customer base[7] - The company is committed to maintaining high standards in hotel management and operation, ensuring a competitive edge in the market[7] Financial Performance - The Group's revenue for the six months ended June 30, 2021, was approximately HK$415.1 million, representing an increase of 68.7% compared to HK$246.1 million for the same period in 2020[23] - Hotel operation and management services revenue increased to approximately HK$262.4 million, up 131.8% from HK$113.2 million in 2020, driven by a 137% rise in hotel management service fee income and an 80% increase in RevPAR to approximately RMB268[25] - Revenue from hotel design and construction management services rose to approximately HK$99.7 million, a 23.5% increase from HK$80.7 million in 2020, due to accelerated work progress to recover from pandemic-related delays[25] - Investment properties leasing revenue slightly increased to approximately HK$53 million from HK$52.1 million in 2020[25] - The hotel operation and management services segment turned a profit of approximately HK$79.9 million, compared to a loss of HK$12.9 million in the same period of 2020[31] - Profit from the hotel design and construction management services segment increased to approximately HK$31.4 million from HK$24.8 million in 2020[31] - The investment properties leasing segment profit decreased to approximately HK$13.6 million from HK$55.3 million in 2020, primarily due to a valuation loss of approximately HK$34.7 million for the Guilin Project[32] - The Group recorded other income and gains, net of approximately HK$54 million for the period, compared to a net other loss of approximately HK$12 million in 2020, mainly due to accrued interest income from the disposal of the Chicago project[35] - Profit attributable to owners of the parent for the six months ended 30 June 2021 was HK$95,445,000, compared to a loss of HK$36,186,000 in the same period of 2020, representing a change of HK$131,631,000[37] Occupancy and Revenue Metrics - The occupancy rate for all hotels increased to 48.7% in the first half of 2021, compared to 30.0% in the same period of 2020[17] - The average daily rate (ADR) for all hotels rose to RMB 550 in the first half of 2021, up from RMB 496 in the same period of 2020[17] - Revenue per available room (RevPAR) for all hotels improved to RMB 268 in the first half of 2021, compared to RMB 149 in the same period of 2020[17] - The Group's upscale and above hotels achieved an occupancy rate of 48.1% in the first half of 2021, compared to 29.8% in the same period of 2020[17] - The average daily rate for upscale and above hotels increased to RMB 573 in the first half of 2021, up from RMB 507 in the same period of 2020[17] - The Group's midscale hotels reported an occupancy rate of 56.2% in the first half of 2021, compared to 37.4% in the same period of 2020[17] - The average daily rate for midscale hotels rose to RMB 295 in the first half of 2021, compared to RMB 247 in the same period of 2020[17] Assets and Liabilities - Total assets as of 30 June 2021 increased to HK$6,900.0 million from HK$6,568.8 million as of 31 December 2020, reflecting a growth of approximately 5.04%[38] - Net assets attributable to equity holders of the parent rose to HK$2,953.1 million as of 30 June 2021, up from HK$2,786.6 million at the end of 2020, indicating an increase of about 6.0%[38] - Cash amounted to approximately HK$2,510.9 million as of 30 June 2021, compared to HK$2,375.3 million as of 31 December 2020, showing an increase of approximately 5.68%[39] - Total debts as of 30 June 2021 were HK$873 million, unchanged from 31 December 2020[45] - The net cash position as of 30 June 2021 was HK$1,758.5 million, compared to HK$1,502.3 million at the end of 2020, indicating an improvement in liquidity[46] Shareholder Information - Mr. He Zhiping holds a long position of 25,000,000 shares in Dalian Wanda Commercial Management Group Co., Ltd., representing approximately 0.55% of the issued share capital[69] - Mr. Ning Qifeng has a long position of 6,000,000 shares in Dalian Wanda Commercial Management, representing approximately 0.13% of the issued share capital[71] - Mr. Zhang Lin holds a long position of 10,000,000 shares in Dalian Wanda Commercial Management, representing approximately 0.22% of the issued share capital[71] - The total number of shares in Dalian Wanda Commercial Management was 4,527,347,600 as of June 30, 2021[71] - As of June 30, 2021, Wanda Commercial Long Properties Overseas Limited holds a long position of 3,055,043,100 shares, representing 65.04% of the issued share capital of the Company[76] - Dalian Wanda Group Long Co., Ltd. also has a long position of 3,055,043,100 shares, accounting for 65.04% of the Company's issued share capital[78] - Mr. Chen Chang Wei Long holds a beneficial interest of 278,098,230 shares, which is approximately 5.92% of the issued share capital[78] Corporate Governance - The Company has established an Audit Committee comprising three independent non-executive directors to supervise the financial reporting process and internal controls[96] - The interim results for the six months ended June 30, 2021, have not been audited, but the Audit Committee has reviewed the financial statements and discussed related matters with management[96] - The Company has complied with the Corporate Governance Code, except for deviations regarding the roles of the chairman and chief executive officer, which are performed by the same individual[91] - The Company did not have all independent non-executive directors and non-executive directors attend the annual general meeting on June 2, 2021, due to other important business engagements[93] - The Chairman of the Board did not attend the annual general meeting on June 2, 2021, due to other important business engagements[93] Cash Flow and Investments - Cash generated from operations for the six months ended June 30, 2021, was HKD 306,227,000, significantly improving from a cash outflow of HKD 464,098,000 in the same period of 2020[114] - Net cash flow from operating activities was HKD 264,778,000 for the first half of 2021, a recovery from a net cash outflow of HKD 489,999,000 in the prior year[114] - The company incurred a net cash outflow of HKD 488,224,000 in investing activities during the first half of 2021, compared to HKD 150,955,000 in the same period of 2020[114] - The company’s cash flow from financing activities showed a net outflow of HKD 13,492,000 in the first half of 2021, contrasting with a net inflow of HKD 537,971,000 in the same period of 2020[115] Accounting and Reporting - The company reported its interim condensed consolidated financial information for the six months ended 30 June 2021, prepared in accordance with Hong Kong Accounting Standards[120] - The interim financial information does not include all disclosures required in the annual financial statements and should be read in conjunction with the Group's annual financial statements for the year ended 31 December 2020[121] - The accounting policies adopted are consistent with those applied in the preparation of the Group's annual consolidated financial statements for the year ended 31 December 2020, with some revised standards adopted for the current period[123] - The financial information is presented in Hong Kong dollars, rounded to the nearest thousand[121]