Financial Performance - The net profit attributable to owners before tax and excluding revaluation and depreciation for the six months ended June 30, 2024, was HKD 61 million, an increase of HKD 12 million from HKD 49 million for the same period in 2023[1]. - Total revenue for the six months ended June 30, 2024, was HKD 319,575 thousand, compared to HKD 251,033 thousand for the same period in 2023, representing a growth of approximately 27.3%[1]. - The company reported a loss of HKD 104,053 thousand for the period, compared to a profit of HKD 3,544 thousand in the same period last year, indicating a substantial decline in profitability[2]. - The basic loss per share for the period was HKD (18.15), compared to earnings per share of HKD 1.79 in the previous year, highlighting a significant downturn in earnings performance[2]. - The group reported a loss before tax of HKD 96,368,000 for the six months ended June 30, 2024, compared to a profit of HKD 9,039,000 for the same period in 2023[11]. - The company reported a net loss attributable to shareholders of HKD 92,837,000 for the six months ended June 30, 2024, compared to a profit of HKD 9,162,000 for the same period in 2023[18]. Revenue and Income Sources - Hotel operating revenue for the six months ended June 30, 2024, was HKD 259,757,000, an increase of 36.3% compared to HKD 190,509,000 for the same period in 2023[9]. - Revenue from hotel operations increased by 36% to HKD 260,000,000 for the six months ended June 30, 2024, up from HKD 191,000,000 in the previous year[25]. - Property rental income decreased slightly to HKD 59,818,000 for the six months ended June 30, 2024, from HKD 60,479,000 in the previous year, representing a decline of 1.1%[11]. - The group’s total income from securities investment was nil for the six months ended June 30, 2024, down from HKD 45,000 in the same period of 2023[11]. - Rental income from the Royal Scot Hotel in London was GBP 1,768,000, with an annual rent increase of 34% from GBP 3,546,000 to GBP 4,737,000[27][31]. Expenses and Costs - The gross profit margin for the period was HKD 56,890 thousand, with a significant decrease in administrative expenses to HKD 30,573 thousand from HKD 55,099 thousand in the previous year[1]. - Financial costs increased to HKD 31,732,000 for the six months ended June 30, 2024, from HKD 26,510,000 in the previous year, marking a rise of 19.3%[12]. - Depreciation of property, plant, and equipment increased significantly to HKD 82,458,000 for the six months ended June 30, 2024, compared to HKD 49,320,000 in the previous year, reflecting a rise of 67.2%[16]. - The company’s administrative expenses decreased by 47% to HKD 30,573,000 for the six months ended June 30, 2024, compared to HKD 57,187,000 in the previous period[24]. Assets and Liabilities - Total assets as of June 30, 2024, were HKD 9,567,873 thousand, a slight increase from HKD 9,529,563 thousand as of December 31, 2023[5]. - The company's current liabilities decreased to HKD 42,949 thousand from HKD 53,562 thousand, reflecting improved liquidity management[5]. - The total equity attributable to owners decreased to HKD 7,234,492 thousand from HKD 7,336,798 thousand, reflecting the impact of the current period's losses on shareholder value[5]. - The group’s total debt as of June 30, 2024, was HKD 1,037 million, with a debt-to-asset ratio of 12%[29]. Operational Highlights - Average hotel occupancy rate exceeded 90%, with hotel revenue increasing by 36% to HKD 260 million[31]. - The group acquired Jessville Manor for HKD 207 million, with a construction area of 12,288 square feet[31]. - The group operates nine income-generating hotels, facing challenges due to weak Chinese economy and high exchange rates[32]. - The company holds a 71.09% stake in Huada Hotel Investment Co., which operates nine hotels, contributing significantly to its hotel investment portfolio[25]. - The group employed 622 staff as of June 30, 2024, up from 562 staff at the end of 2023[29]. Future Outlook - Future prospects for hotel and rental income remain challenging, with management focusing on revenue growth and cost control[32]. - The group did not declare or recommend any interim dividends for the six months ended June 30, 2024, and June 30, 2023[17]. - The company did not declare an interim dividend for the six months ended June 30, 2024, due to challenging economic conditions and high operational costs[22].

Financial Performance - The net profit attributable to shareholders for the year ended December 31, 2023, was HKD 97 million, a decrease of 23% from HKD 225 million in 2022[5]. - The operating profit from hotel operations decreased by 39% to HKD 80.9 million, down from HKD 132.4 million in the previous year[5]. - The net profit from property investments dropped significantly by 86% to HKD 19.1 million, compared to HKD 134.1 million in 2022[5]. - Total revenue for the year ended December 31, 2023, was HKD 606,035,000, a slight decrease from HKD 612,687,000 in 2022[74]. - The company reported a loss before tax of HKD 11,822,000 in 2023 compared to a profit of HKD 692,561,000 in 2022[74]. - The group reported a loss attributable to owners of HKD 72,968,000 for the year ended December 31, 2023, compared to a profit of HKD 482,146,000 for the year ended December 31, 2022[137]. Revenue Breakdown - Total revenue from hotel operations for 2023 was HKD 488,325,000, an increase from HKD 462,692,000 in 2022, representing a growth of approximately 5.3%[57]. - Rental income from properties decreased to HKD 117,665,000 in 2023 from HKD 149,953,000 in 2022, a decline of about 21.5%[57]. - Food and beverage revenue recognized at a point in time was HKD 7,450,000, down from HKD 38,936,000[37]. - The majority of hotel service revenue came from Hong Kong, totaling HKD 482,931,000, compared to HKD 443,515,000 in the previous year, reflecting a growth of about 8.9%[59]. - Revenue from the Chinese market significantly decreased to HKD 5,394,000 in 2023 from HKD 19,177,000 in 2022, a drop of approximately 71.8%[59]. Expenses and Costs - Administrative expenses rose by 47% to HKD 85.98 million, compared to HKD 58.36 million in the previous year[5]. - Financial costs surged by 142% to HKD 60.04 million, up from HKD 24.8 million in 2022[5]. - The total tax expense incurred by the company was HKD 73,040,000 in 2023, compared to HKD 41,227,000 in 2022, which is an increase of approximately 77.5%[117]. - The depreciation expense for property, plant, and equipment was HKD 124,235,000 in 2023, up from HKD 104,012,000 in 2022, representing an increase of about 19.4%[110]. Cash Flow and Financing - Cash and cash equivalents at the end of the year increased to HKD 334.48 million from HKD 286.68 million in 2022[13]. - The company experienced a net cash outflow from financing activities of HKD 103.79 million, compared to an inflow of HKD 316.92 million in 2022[13]. - New bank loans added during the year amounted to HKD 98.25 million, a significant decrease from HKD 2.06 billion in the previous year[13]. Investment Properties - As of December 31, 2023, the carrying value of investment properties is HKD 4,685,260,000, a decrease from HKD 4,732,940,000 in 2022[35]. - The fair value of investment properties was assessed by independent valuers, with the valuation methodology based on the income approach, considering current rental income and potential future income[133]. - The fair value of investment properties at the end of 2023 was HKD 4,685,260,000, down from HKD 4,732,940,000 in 2022, reflecting a decrease of 1.0%[150]. - The group recognized a fair value loss of HKD 93,700,000 for investment properties in 2023, compared to a loss of HKD 13,324,000 in 2022, indicating a significant increase in losses[150]. Dividends - The company did not recommend the payment of a final dividend for the year ended December 31, 2023, due to various operational challenges[5]. - The company did not declare or propose any dividends to ordinary shareholders for the years ended December 31, 2023, and December 31, 2022[118]. Employee Compensation - The total compensation for executive directors amounted to HKD 25,306,000 for the year ended December 31, 2023[91]. - Total employee compensation, including directors' remuneration, increased to HKD 178,916,000 in 2023 from HKD 146,840,000 in 2022, reflecting a rise of approximately 21.9%[110]. Tax and Deferred Tax - Deferred tax liabilities increased to HKD 21,177,000 from HKD 5,374,000, indicating a significant rise in tax obligations[97]. - The group confirmed a deferred tax liability of HKD 0 for undistributed profits from its Chinese subsidiaries, a decrease from HKD 328,000 in 2022[116]. - Deferred tax assets and liabilities are calculated based on the expected tax rates applicable at the time of asset realization or liability settlement[49]. Stock Options and Governance - The granting of stock options to directors, senior executives, or major shareholders requires approval from independent non-executive directors[200]. - If the board proposes to grant stock options that result in the issuance of shares exceeding 0.1% of the issued shares, shareholder approval is required[200]. - The total value of stock options granted must exceed HKD 5,000,000 based on the closing price on the grant date, necessitating further shareholder approval[200]. - All related parties must abstain from voting on the stock option grants at the shareholders' meeting[200].

Financial Performance - The net profit attributable to the owners for the year ended December 31, 2023, was HKD 97 million, a decrease of HKD 128 million from HKD 225 million in 2022[2]. - Total revenue for the year was HKD 488,325 thousand, an increase from HKD 462,692 thousand in the previous year, representing a growth of approximately 5.8%[2]. - The gross profit margin decreased to HKD 193,789 thousand from HKD 279,912 thousand, indicating a decline of about 30.8% year-over-year[2]. - The company reported a loss before tax of HKD 11,822 thousand compared to a profit before tax of HKD 692,561 thousand in 2022[2]. - The basic loss per share for the year was HKD 14.26, a significant drop from earnings per share of HKD 94.24 in the previous year[3]. - The company experienced a total comprehensive loss of HKD 44,121 thousand for the year, compared to a comprehensive income of HKD 516,961 thousand in 2022[10]. - Total revenue for the year 2023 was HKD 606,035,000, a decrease of 1.1% from HKD 612,687,000 in 2022[15]. - The group reported a loss before tax of HKD 60,043,000 in 2023, compared to a profit of HKD 266,588,000 in 2022[19]. - Basic loss per share for 2023 was HKD 72,968,000, compared to a profit of HKD 482,146,000 in 2022[29]. - The group did not declare or propose any dividends for the years 2023 and 2022[29]. Revenue Sources - Hotel operating revenue increased to HKD 488,325,000 in 2023, up 5.5% from HKD 462,692,000 in 2022[15]. - Property rental income decreased to HKD 117,665,000 in 2023, down 21.5% from HKD 149,953,000 in 2022[15]. - The hotel operations generated revenue of HKD 488 million for the year, an increase of 5% from HKD 463 million in 2022[44]. - The total revenue of the Huada Hotel Group increased by 3% to HKD 452 million, driven by higher room rates and occupancy rates[46]. - The commercial property rental income totaled HKD 118,000,000, down from HKD 150,000,000 in 2022[47]. Expenses and Costs - The company reported a significant increase in administrative expenses by 47% to HKD 85.98 million from HKD 58.36 million in 2022[42]. - Financial costs surged by 142% to HKD 60.04 million compared to HKD 24.8 million in the previous year[42]. - The group’s total expenses, including administrative costs and financial costs, amounted to HKD 34,112,000 in 2023[19]. - Administrative expenses (excluding depreciation) increased to HKD 82,000,000 from HKD 54,000,000 in 2022, primarily due to opening costs and maintenance for new hotels[47]. Asset and Equity Changes - Total assets decreased to HKD 9,652,856 thousand from HKD 9,777,904 thousand, reflecting a decline of approximately 1.3%[5]. - The company's equity attributable to owners decreased to HKD 7,336,798 thousand from HKD 7,380,802 thousand, a reduction of about 0.6%[5]. - Total debt as of December 31, 2023, was HKD 1,036,000,000, a decrease from HKD 1,068,000,000 in 2022, with a debt ratio of 7%[48]. Future Outlook and Strategic Initiatives - The company has not provided specific guidance for future performance or strategic initiatives in the conference call[2]. - The group plans to continue efforts to increase revenue and control costs amid challenges in the hotel and rental income sectors[60]. - The outlook for the hotel business remains challenging, but there is optimism for increased overnight visitors to Hong Kong in 2024[59]. Acquisitions and Investments - The group acquired the Glamorous Bay Hotel, which has 435 rooms and began operations on August 1, 2023, contributing to a 6% increase in hotel revenue compared to the previous year[51]. - The group is set to acquire Jessville Manor for a total price of HKD 207,000,000, which is expected to provide stable income growth and capital appreciation potential[56][57]. Operational Performance - The average occupancy rate for the group's hotels exceeded 90% during the year, despite increased operational costs due to labor shortages[51]. - The net profit from hotel operations decreased by 39% to HKD 80.9 million from HKD 132.4 million in the previous year[42]. - The net profit from property investments plummeted by 86% to HKD 19.14 million from HKD 134.13 million in 2022[42]. - The valuation of the Royal Scot Hotel in London remained stable at GBP 88.5 million, with rental income for the year at GBP 3.546 million[46]. - The rental income from the Royal Scot Hotel in London is expected to rise, linked to the UK retail price index, which has seen double-digit growth[52]. Governance and Compliance - The group applied new and revised Hong Kong Financial Reporting Standards starting January 1, 2023, with no significant impact on financial statements[13]. - The group’s consolidated financial statements for the year ending December 31, 2023, have been agreed upon by Deloitte, but no assurance has been provided regarding the preliminary performance announcement[67]. - The board of directors consists of five executive directors, one non-executive director, and three independent non-executive directors as of the announcement date[68].

Financial Performance - The operating profit from hotel business decreased by 91% to HKD 10,777,000 for the six months ended June 30, 2023, compared to HKD 125,431,000 for the same period in 2022[10]. - The overall profit after tax and non-controlling interests decreased by 85% to HKD 9,162,000 for the six months ended June 30, 2023, compared to HKD 61,092,000 for the same period in 2022[10]. - The net profit attributable to the owners of the company for the six months ended June 30, 2023, was HKD 49 million, a decrease of HKD 108 million compared to HKD 157 million for the same period in 2022, representing a decline of 68.8%[29][31]. - Total revenue for the group decreased by 35% from HKD 279 million to HKD 182 million, primarily due to lower hotel room prices compared to the previous year when quarantine hotel services were provided[36]. - Total revenue for the six months ended June 30, 2023, was HKD 251,033,000, a decrease from HKD 363,594,000 for the same period in 2022, representing a decline of approximately 30.9%[96]. - The net profit for the period was HKD 3,544,000, significantly lower than HKD 90,356,000 in the previous year, indicating a decrease of about 96.1%[96]. - Basic earnings per share for the current period was HKD 1.79, down from HKD 11.94 in the same period last year, reflecting a decline of approximately 85.0%[96]. - The company reported a gross profit of HKD 89,637,000 for the current period, compared to HKD 203,503,000 in the previous year, a decrease of around 56.0%[96]. - Adjusted profit before tax for the six months ended June 30, 2023, was HKD 9,039,000, a significant decrease from HKD 122,140,000 for the same period in 2022, representing a decline of approximately 92.6%[126]. Revenue Sources - Property investment profit increased by 169% to HKD 52,305,000 for the six months ended June 30, 2023, compared to HKD 19,420,000 for the same period in 2022[10]. - The total revenue from property investment was HKD 60,479,000, down 21.6% from HKD 77,161,000 year-on-year[162]. - Revenue from hotel operations decreased by 33% to HKD 191 million for the six months ended June 30, 2023, down from HKD 286 million in the same period of 2022[33]. - The company’s hotel services in Hong Kong generated revenue of HKD 190,509,000, down from HKD 276,521,000 in the previous year, a decline of 31.1%[113]. Expenses and Costs - Administrative expenses increased by 109% to HKD 57,187,000 for the six months ended June 30, 2023, compared to HKD 27,321,000 for the same period in 2022[10]. - Administrative expenses (excluding depreciation) increased to HKD 55.1 million, up from HKD 25.2 million in the same period of 2022, mainly due to operating costs related to the opening of the hotel[37]. - Interest expenses decreased to HKD 59,000 for the six months ended June 30, 2023, compared to HKD 85,000 in the same period last year, representing a reduction of approximately 30.6%[187]. Dividends and Shareholder Information - The company did not recommend an interim dividend for the six months ended June 30, 2023, due to higher interest expenses and operational costs[3]. - The company has not declared or paid dividends to shareholders for the periods ended June 30, 2023, and December 31, 2022[175]. - Major shareholders include Omnico with 350,043,999 shares (60.38%) and Shun Ho Holdings with 383,685,999 shares (66.18%) as of June 30, 2023[61]. Assets and Liabilities - As of June 30, 2023, the group's total debt was HKD 1,049 million, a decrease from HKD 1,068 million as of December 31, 2022, due to loan repayments[38]. - The total liabilities as of June 30, 2023, amounted to HKD 1,301,501,000, a decrease from HKD 1,368,652,000 in the previous year[119]. - The company reported a decrease in trade and other receivables, totaling HKD 8,640,000 as of June 30, 2023, compared to HKD 23,364,000 as of December 31, 2022[155]. - The total book value of investment properties as of June 30, 2023, was approximately HKD 3,597,115,000, down from HKD 3,999,692,000 as of December 31, 2022[154]. Operational Challenges - The company continues to face challenges in occupancy rates for its office buildings due to the impact of the US-China trade war[22]. - Approximately 13 million tourists visited Hong Kong in the first half of 2023, with about 10 million coming from China, compared to 35 million in the same period before the pandemic[40]. - The group plans to continue efforts to increase revenue and control costs amid ongoing challenges in the hotel and rental income sectors[45]. Corporate Governance - The company has adopted the corporate governance code and the standard code for securities transactions by directors[75]. - The company confirmed compliance with the corporate governance code during the reporting period, with all directors adhering to the established standards[89]. Cash Flow and Financing - The net cash used in financing activities for the six months ended June 30, 2023, was HKD (56,232,000), compared to HKD 40,123,000 for the same period in 2022[105]. - The company’s cash flow from operating activities showed a significant change, with cash and cash equivalents decreasing by HKD 13,947,000 compared to an increase of HKD 67,524,000 in the previous year[105]. - Cash used in investing activities for the six months ended June 30, 2023, was HKD 1,300,000, a significant improvement from HKD 184,868,000 in the same period of 2022[126].

香港交易及結算所有限公司及香港聯合交易所有限公司對本公告的內容概不負責，對其準確性或完整性亦不發表任何聲明， 並明確表示，概不對因本公告全部或任何部分內容而產生或因依賴該等內容而引致的任何損失承擔任何責任。 順豪物業投資有限公司 (於香港註冊成立之有限公司) (股份代號：219) 二零二三年中期業績 業績 順豪物業投資有限公司（「本公司」）之董事（「董事」）會（「董事會」）宣布截至二零二 三年六月三十日止六個月之本公司擁有人應佔除稅後而未計重估及土地、物業及設備之折舊前 之淨溢利為49,000,000港元（截至二零二二年六月三十日止六個月：157,000,000 港元），減少 108,000,000港元。本公司及其附屬公司（統稱「本集團」）在本期之未經審核綜合業績連同去 年同期之比較數字如下： 簡明綜合損益表 截至二零二三年六月三十日止六個月 截至二零二三年 截至二零二二年 六月三十日止 六月三十日止 附註 六個月 六個月 千港元 千港元 (未經審核) (未經審核) 收入 3 客戶合約 190,509 286,391 租賃 60,479 77,161 股息收入 45 42 ...

Financial Performance - The company's profit attributable to owners for the year ended December 31, 2022, was HKD 482 million, an increase of HKD 414 million compared to HKD 68 million in 2021[16] - The profit attributable to owners of Huada Hotel Group for the year was HKD 593 million, a significant increase of HKD 527 million from HKD 66 million in 2021[21] - The overall profit for the year ended December 31, 2022, increased significantly due to a rise in hotel revenue and the gain from the sale of a subsidiary[42] - The group reported a substantial increase in after-tax profit, reaching HKD 482,146,000, which is a 607% increase compared to the prior year[39] - The company's profit for the year ended December 31, 2022, was HKD 651,334,000, a significant increase from HKD 82,242,000 in the previous year, representing a growth of 694%[164] Revenue and Operations - Revenue from hotel operations increased by 34% to HKD 463 million, up from HKD 346 million in the previous year[20] - The net profit from hotel operations surged by 1,930% to HKD 118.8 million, compared to HKD 5.9 million in 2021[22] - The total revenue of Huada Hotel Group increased by 42% from HKD 284 million to HKD 403 million due to five hotels serving as designated quarantine hotels[22] - The total revenue for 2022 reached HKD 612,687,000, an increase of 19.1% from HKD 514,409,000 in 2021[140] - Gross profit for 2022 was HKD 279,912,000, compared to HKD 172,418,000 in 2021, reflecting a significant increase of 62.3%[140] Debt and Financial Position - The overall debt amount stands at HKD 1,068 million, with interest payments of approximately HKD 50 million due in the coming year[16] - The group's total debt as of December 31, 2022, was HKD 1,068,000,000, an increase from HKD 754,000,000 in 2021, primarily due to the acquisition of the Ting Lan Hotel[47] - The overall debt ratio increased to 12% in 2022 from 9% in 2021, calculated based on total debt relative to utilized funds[47] - The company's bank loans amounted to HKD 1,001,084,000, indicating a new liability as there were no bank loans reported in the previous year[166] Expenses and Costs - The company reported a 12% increase in administrative expenses, rising from HKD 33.9 million to HKD 38 million[22] - The group's interest expenses rose significantly, impacting overall profitability, with total expenses reported at HKD 229,067,000, an increase of 43%[39] - The company's administrative expenses (excluding depreciation) rose to HKD 54,000,000 in 2022 from HKD 44,000,000 in 2021, mainly due to legal and professional fees related to the sale and acquisition of subsidiaries[47] Risk Management and Governance - The board has conducted a review of the effectiveness of the group's risk management and internal control systems, deeming them effective in safeguarding the group's assets and interests of shareholders and customers[32] - The audit committee is responsible for reviewing the risk management and internal control systems, reporting to the board after assessing their adequacy and effectiveness[32] - The group established a risk management committee in 2019, chaired by Zheng Qiweng, focusing on business, financial, and property asset management risks[32] - The company emphasizes a "top-down" and "bottom-up" approach in its risk management strategy to identify and manage significant risks effectively[32] - The board is responsible for maintaining a sound and effective risk management and internal control system, overseeing management's design and implementation of these systems[32] Corporate Governance - The company has adhered to all provisions of the corporate governance code for the year ended December 31, 2022, except for the deviations listed[52] - The board consists of a diverse group of members, including both male and female directors, with a total of 12 directors[54] - The audit committee held two meetings in 2022, with a 100% attendance rate from all members[57] - The company established an effective management policy for environmental, social, and governance (ESG) issues during the year[57] - The company has adopted a diversity policy for the board, considering various factors such as business experience, age, gender, and nationality in selecting candidates[58] Future Outlook and Strategy - The company anticipates challenges in the commercial property income outlook for the coming year[16] - The company is focusing on expanding its hotel portfolio and enhancing the quality of its properties to adapt to market demands[44] - The company is closely monitoring geopolitical developments and economic trends to optimize its hotel portfolio[99] - The company is evaluating market trends and competition to develop business strategies that enhance profitability[99] Shareholder Information - The company’s dividend policy states that dividends must be declared based on profits and cannot exceed the amount recommended by the board[61] - The company did not recommend the distribution of a final dividend for the year ending December 31, 2022[64] - Shareholders can request the board to convene a general meeting if they hold at least 5% of the voting rights[60] - The company has established various communication channels with shareholders, including printed or electronic communications and timely information on the company website[60] Environmental and Social Responsibility - The company emphasizes environmental policies aimed at minimizing carbon emissions and improving energy and water efficiency[122] - The company has taken various environmental measures that are regularly reviewed for effectiveness[122] - The company has adopted an anti-corruption policy to regulate employee benefits and a whistleblowing policy for reporting any suspicious or improper behavior[60]

香港交易及結算所有限公司及香港聯合交易所有限公司對本公告的內容概不負責，對其準確性或完整性亦不發表任何聲明，並明確 表示，概不對就因本公告全部或任何部分內容而產生或因依賴該等內容而引致的任何損失承擔任何責任。 順豪物業投資有限公司 （於香港註冊成立之有限公司） （股份代號：219） 截至二零二二年十二月三十一日止年度之 末期業績公布 業績 順豪物業投資有限公司（「本公司」）之董事（「董事」）會（「董事會」）宣布截至二零二二年十二月三十一日 止年度之本公司擁有人應佔溢利為482,000,000港元（二零二一年：68,000,000港元），增加414,000,000港元。本 公司及其附屬公司（統稱「本集團」）在本年度之經審核綜合業績連同去年度同期之比較數字如下： 綜合損益表 截至二零二二年十二月三十一日止年度 附註 二零二二年 二零二一年 千港元 千港元 收入 3 客戶合約 462,692 346,416 租賃 149,953 167,993 股息收入 42 - 總收入 612,687 514,409 銷售成本 (32,731) (45,209) 其他服務成本 (199,435) (194,079) 物業、機器及 ...

Financial Performance - The profit attributable to owners for the six months ended June 30, 2022, was HKD 61 million, an increase of HKD 47 million compared to HKD 14 million for the same period in 2021, representing a growth of 335.7%[5]. - The profit attributable to owners of Huada Hotel Group was HKD 106 million, a significant increase of HKD 97 million from HKD 9 million in the previous year, reflecting a growth of 1,077.8%[10]. - The overall profit for the six months ended June 30, 2022, increased primarily due to the rise in hotel revenue[11]. - Total revenue for the six months ended June 30, 2022, was HKD 363,594,000, an increase from HKD 232,345,000 for the same period in 2021, representing a growth of 56.5%[45]. - The net profit for the period was HKD 90,356,000, significantly up from HKD 14,384,000 in the previous year, marking an increase of 528.5%[45]. - Basic earnings per share rose to HKD 11.94, compared to HKD 2.81 for the same period last year, reflecting a growth of 325.3%[45]. - The company reported a gross profit of HKD 203,503,000, up from HKD 88,054,000, indicating a substantial increase of 131.3%[45]. - The group recorded a total revenue of HKD 363,594,000 for the six months ended June 30, 2022, representing a 56.5% increase from HKD 232,345,000 for the same period in 2021[79]. - The group achieved a positive operating cash inflow of HKD 212,269,000 during the period, with a net increase in cash and cash equivalents of HKD 67,524,000[78]. Hotel Operations - Hotel operating revenue increased by 97% to HKD 286 million for the six months ended June 30, 2022, compared to HKD 145 million for the same period in 2021[10]. - Operating hotel revenue was HKD 286,391,000, up 96.7% from HKD 145,436,000 year-on-year[79]. - The group operates nine hotels with approximately 2,821 guest rooms, making it one of the largest hotel groups in Hong Kong[10]. - The group operates nine revenue-generating hotels, with seven in Hong Kong, one in Shanghai, and one in London, facing challenges due to the ongoing impact of COVID-19 and the US-China trade war[18]. - The group signed short-term contracts with the government for six hotels in Hong Kong and Shanghai to operate as quarantine hotels, but competition with local hotels may resume as quarantine periods are shortened[18]. Debt and Financial Position - The total debt of the group, including Huada Hotel and its subsidiaries, was HKD 775 million as of June 30, 2022, up from HKD 754 million as of December 31, 2021[15]. - The group’s asset-to-liability ratio was 10% as of June 30, 2022, compared to 9% as of December 31, 2021, indicating an increase in overall debt relative to utilized funds[15]. - The company’s current liabilities increased to HKD 946,096,000 from HKD 852,594,000, reflecting a rise of 11%[56]. - The company’s total assets as of June 30, 2022, amounted to HKD 8,401,748,000, a decrease from HKD 8,823,060,000 as of December 31, 2021[57]. - The total equity attributable to owners of the company was HKD 6,961,333,000, slightly down from HKD 6,994,182,000 at the end of 2021[59]. Investment Properties - The rental income from commercial properties was HKD 77 million for the six months ended June 30, 2022, down from HKD 87 million in the same period last year[14]. - The fair value loss on investment properties was HKD 53,700,000, compared to a loss of HKD 34,470,000 in the previous year[45]. - The total carrying amount of investment properties was approximately HKD 4,168,260,000 as of June 30, 2022, down from HKD 4,347,647,000 as of December 31, 2021[106]. - The company’s total assets as of June 30, 2022, included investment properties valued at 5,307,317 thousand HKD[66]. - The fair value of the investment properties held by Tando Limited at acquisition was HKD 31,103,000[133]. Shareholder Information - As of June 30, 2022, the company's director Zheng Qiweng holds 385,395,999 shares, representing 66.48% of the company's shareholding[24]. - Zheng Qiweng also controls 6,360,585,437 shares in Huada Hotel Investment Limited, representing 71.09% of that company's shareholding[26]. - As of June 30, 2022, major shareholders include Omnico with 350,043,999 shares (60.38%) and Shunhao Holdings with 383,685,999 shares (66.18%)[30]. - The total issued and fully paid ordinary shares as of June 30, 2022, were 579,753,000 shares, with a total value of HKD 1,084,887,000[126]. Corporate Governance - The company’s governance practices are under review to ensure compliance with the updated corporate governance code effective from January 1, 2022[37]. - The company has adopted the standard code for securities transactions by directors, confirming compliance by all directors during the reporting period[38]. - The company has not granted any stock options under the employee stock option plan since its adoption in November 2013[28]. - The company has not adopted any other stock option plans apart from the one mentioned[28]. Future Outlook - The rental outlook for the Royal Scot Hotel in London is promising, with annual rent increases linked to the UK Retail Price Index, which reached a 40-year high of 12.3% in July 2022[17]. - The group plans to continue expanding its investment in properties and securities, focusing on enhancing its portfolio[70]. - The management conducted a cash flow forecast and contract calculations up to September 30, 2023, assessing the impact of a potential 10% decline in property prices[78].

Financial Performance - For the year ended December 31, 2021, the company's profit attributable to shareholders was HKD 68 million, an increase of HKD 240 million compared to a loss of HKD 172 million in 2020[6]. - The overall profit increase for the year ended December 31, 2021, was primarily due to increased hotel revenue and revaluation gains[8]. - Total revenue for the year ended December 31, 2021, increased by 40% to HKD 329,290,000 from HKD 235,072,000 in 2020[9]. - The company reported a profit before tax of HKD 111,012,000 for 2021, compared to a loss of HKD 220,053,000 in 2020, indicating a significant turnaround[74]. - Basic earnings per share for the year was HKD 13.34, recovering from a loss of HKD 33.55 per share in the previous year[74]. - The total comprehensive income for the year was HKD 71,935,000, compared to a loss of HKD 236,238,000 in 2020, reflecting improved financial performance[76]. - The company reported a gross profit of HKD 172,418,000 for 2021, compared to HKD 120,183,000 in 2020, marking an increase of about 43.4%[74]. Revenue Sources - The group's hotel revenue for the year was HKD 346 million, representing a 59% increase from HKD 218 million in 2020[6]. - Hotel operating revenue rose by 55% to HKD 284,082,000, driven by increases in rent, occupancy rates, and dining revenue[9]. - Investment property revenue increased by 7% to HKD 42,316,000, attributed to rental income from the Royal Scot Hotel and other properties[9]. - The rental income from the Royal Scot Hotel for the year was GBP 3,546,000, equivalent to HKD 37,408,000[10]. Dividend Policy - The company did not recommend a final dividend for the year ended December 31, 2021, due to uncertainties in hotel income and rental income caused by the COVID-19 pandemic[6]. - The board does not recommend the payment of a final dividend for the year ended December 31, 2021, consistent with the previous year[42]. - The company has adopted a dividend policy aimed at providing stable and sustainable returns to shareholders[39]. Corporate Governance - The board consists of nine members, including five executive directors, one non-executive director, and three independent non-executive directors, with two independent directors possessing appropriate professional qualifications[16]. - The company has adopted the corporate governance code and has complied with all provisions except for certain deviations noted in the report[14]. - The chairman and CEO positions are held by the same individual, Zheng Qiweng, which the board believes provides consistent leadership and cost savings[14]. - The company has established a nomination committee primarily composed of independent non-executive directors, although it has not fulfilled all responsibilities as outlined in the code[14]. - The company has a commitment to maintaining high standards of corporate governance and transparency to shareholders[14]. Risk Management - The board is responsible for maintaining an effective risk management and internal control system, which has been reviewed and deemed effective for the reporting year[25]. - The Risk Management Committee was established in 2019, consisting of three executive directors, with specific responsibilities assigned to each member[26]. - The risk management system aims to identify, assess, and manage significant risks related to hotel operations and financial functions[28]. - The board's strategy includes a top-down approach to risk management, ensuring all significant risks are considered in decision-making[28]. Employee and Operational Metrics - The number of employees decreased to 486 from 566 in 2020, reflecting the impact of the pandemic on operations[11]. - Administrative expenses increased slightly by 3% to HKD 49.998 million from HKD 48.630 million in the previous year[6]. - The company emphasizes human resources, offering competitive compensation and a safe working environment to attract and retain skilled employees[53]. Investment Properties and Valuation - The fair value of investment properties held by the group is approximately HKD 4,788,000,000 as of December 31, 2021, with a net impairment of HKD 5,000,000 recognized in the income statement for the year[60]. - The carrying amount of hotel properties is approximately HKD 3,335,000,000 as of December 31, 2021, with significant judgments involved in determining any impairment[62]. - The valuation of investment properties is based on independent professional valuers using income and residual methods, with key inputs disclosed in note 16 of the financial statements[60]. Financial Position - The company’s total liabilities decreased to HKD 8,270,468 in 2021 from HKD 8,840,254 in 2020, representing a decline of approximately 6.4%[32]. - The company’s total equity as of December 31, 2021, was HKD 8,087,196, an increase from HKD 8,007,299 in 2020, representing a growth of approximately 1%[32]. - Current liabilities rose to HKD 852,594,000 in 2021 from HKD 289,763,000 in 2020, indicating a significant increase in short-term obligations[78]. Future Outlook - Future rental income prospects are optimistic due to the linkage of rent increases to the UK Retail Price Index, which reached a 30-year high of 6.2% in February 2022[10]. - Management is preparing for renovations and expansion of the newly acquired Wood Street Hotel in London[11]. Shareholder Engagement - Shareholders holding at least 5% of the voting rights can request the board to convene a general meeting[35]. - Various communication channels are established for shareholders and investors, including printed communications and annual general meetings[38].

Financial Performance - The company's profit attributable to owners for the six months ended June 30, 2021, was HKD 14 million, a significant increase of HKD 156 million compared to a loss of HKD 142 million for the same period in 2020[5]. - Total revenue for the six months ended June 30, 2021, was HKD 145,436,000, compared to HKD 86,909,000 for the same period in 2020, representing a growth of 67.5%[56]. - The company reported a profit before tax of HKD 29,210,000 for the six months ended June 30, 2021, compared to a loss of HKD 185,759,000 in the same period of 2020[56]. - The total comprehensive income for the six months ended June 30, 2021, was HKD 26,843,000, compared to a loss of HKD 306,430,000 in the same period of 2020[58]. - The net profit for the six months ending June 30, 2021, was HKD 14,374,000, compared to a loss of HKD 142,331,000 for the same period in 2020[115]. Revenue Sources - Hotel operating revenue increased by 71% to HKD 145 million for the six months ended June 30, 2021, compared to HKD 85 million for the same period in 2020[10]. - Total revenue for Huada Hotel Group increased by 45% to HKD 144.7 million, driven by the operation of designated quarantine hotels since January 2021[13]. - Rental income from commercial properties amounted to HKD 87 million for the six months ended June 30, 2021, slightly up from HKD 85 million for the same period in 2020[15]. - The group recorded operating hotel revenue of HKD 145,436,000 for the six months ended June 30, 2021, compared to HKD 85,355,000 for the same period in 2020, representing an increase of 70.5%[90]. - Property rental income increased slightly to HKD 86,909,000 from HKD 85,269,000 year-on-year, showing a growth of 1.9%[90]. Assets and Liabilities - As of June 30, 2021, the company's total equity was HKD 8,042,104,000, up from HKD 8,007,299,000 as of December 31, 2020[62]. - The company’s total liabilities decreased to HKD 561,180,000 as of June 30, 2021, from HKD 832,955,000 as of December 31, 2020[62]. - The total assets of the group as of June 30, 2021, amounted to HKD 9,145,993,000, slightly up from HKD 9,130,017,000 as of December 31, 2020[101]. - The total liabilities of the group as of June 30, 2021, were HKD 1,103,889,000, a decrease from HKD 1,122,718,000 as of December 31, 2020[104]. - The company’s bank loans amounted to HKD 787,857,000, a decrease from HKD 816,185,000 as of December 31, 2020, representing a reduction of approximately 3.99%[131]. Shareholder Information - As of June 30, 2021, the company’s major shareholder, Zheng Qiweng, holds 375,423,999 shares, representing 64.76% of the total shareholding[25]. - Omnico holds 281,904,489 shares, with an additional 68,139,510 shares held by Mercury Fast, representing a total ownership of 64.46%[2]. - Saray Value SPV holds 62,303,591 shares, while Saray Value Fund holds 1,076,000 shares, totaling 63,379,591 shares under Saray Capital Limited[5]. Management and Governance - The company has not appointed separate individuals for the roles of Chairman and CEO, with the current individual holding both positions, which the board believes provides consistent leadership[39]. - The company has adopted a nomination committee framework that complies with the governance code, with revisions made to ensure full compliance[42]. - The company has confirmed that all directors have adhered to the standard code of conduct for securities trading during the reporting period[43]. - Following the resignation of an independent non-executive director, the number of independent directors fell below the required threshold, prompting a review of compliance with listing rules[45]. - The company has appointed new members to its audit and remuneration committees to ensure compliance with listing regulations[49]. COVID-19 Impact - The ongoing impact of COVID-19 is expected to keep overseas and Chinese tourist arrivals in Hong Kong low for the remainder of 2021, leading to continued low occupancy rates and high operating costs for hotels[22]. - The group’s management conducted a going concern assessment, considering the impact of COVID-19 and available liquidity sources until September 30, 2022[76]. - The group’s financial position was supported by the agreement from the intermediary holding company not to demand repayment until the group is financially capable[76]. - The company’s operating income was significantly impacted by the pandemic, but it is optimistic about recovery in the upcoming quarters[73]. Cost Management - Administrative expenses (excluding depreciation) were HKD 20 million for the six months ended June 30, 2021, down from HKD 21 million in the same period in 2020[17]. - The company emphasizes cost savings by not hiring a separate CEO, which would incur higher market costs[39]. - The group has implemented new strategies to improve operational efficiency and reduce costs in response to market challenges[73]. Investment Activities - The group acquired the Wood Street Police Headquarters in London for GBP 40 million, with plans to renovate it into a luxury hotel with approximately 216 rooms[20]. - The company plans to continue expanding its investment in properties and securities, focusing on enhancing shareholder value[73]. - The company sold a 25% stake in Postal Power Company Limited for HKD 13,050,000, which was recorded as an equity transaction[67].