(D) Shun Ho Property Investments Limited 順 豪 物 業 投 資 有 限 公 司 (Stock Code 股份代號: 219) ANNUAL REPORT 2019 二 零 一 九 年 年 年 報 日 錄 | --- | --- | |-------------------------------------------------------------------|--------| | | 頁數 | | 公司资料 | 2 | | 主席報告 | 3-13 | | 董事简介 | 14 | | 企業管治報告 . | 15-25 | | 董事會報告 | 26-32 | | 獨立核數師報告 | 33-36 | | 綜合損益表 . | 37 | | 綜合總全面收益表 | 38 | | 綜合財務狀況表 | 39-40 | | 綜合權益變動報表 | 41 | | 綜合現金流量表 . | 42 | | 综合財務報表附註. ... ... ... ... ... ... ... ... ... ... ... ... | 43-108 | | 財務概要 . | 109 | | 主要物 ...

Financial Performance - The net profit attributable to shareholders, excluding revaluation gains from investment properties and depreciation of land, properties, and equipment, was HKD 125 million for the six months ended June 30, 2019, representing a 5% increase from HKD 119 million for the same period in 2018[4]. - The net profit attributable to the owners of the group, after tax and excluding non-controlling interests, was HKD 91.47 million, a decrease of 67% from HKD 278.39 million in the previous year[9]. - Revenue for the six months ended June 30, 2019, was HKD 370,197,000, a slight increase of 2.4% compared to HKD 361,840,000 for the same period in 2018[51]. - Gross profit for the same period was HKD 149,343,000, down 2.3% from HKD 153,564,000 year-over-year[51]. - Profit before tax decreased significantly to HKD 132,578,000, a decline of 59.0% from HKD 323,040,000 in the previous year[51]. - Net profit for the period was HKD 107,863,000, down 63.9% compared to HKD 298,531,000 in the prior year[51]. - Total comprehensive income for the period was HKD 105,995,000, down 62.7% from HKD 283,837,000 year-over-year[59]. - The group reported a profit of HKD 91,466,000 for the six months ended June 30, 2019, down from HKD 278,388,000 for the same period in 2018, reflecting a decline of about 67%[132]. - Basic earnings per share for the six months ended June 30, 2019, was HKD 17.88, a decrease of 67.2% from HKD 54.41 in the same period of 2018[51]. Revenue Sources - Revenue from hotel operations increased to HKD 289 million, up 3% from HKD 281 million for the same period in 2018, with an occupancy rate of 99% for the Ramada Hotel[11]. - Hotel operating revenue for the six months ended June 30, 2019, was HKD 289,009,000, an increase of 2.8% from HKD 281,007,000 for the same period in 2018[111]. - Property rental income for the same period was HKD 81,025,000, up from HKD 80,660,000, reflecting a growth of 0.5%[111]. - The group’s hotel services segment generated a profit of HKD 68,472,000 for the six months ended June 30, 2019, compared to HKD 72,894,000 in the same period of 2018, indicating a decrease of 6.0%[114]. - The group’s property investment segment reported an income of HKD 81,025,000, which is a slight increase from HKD 80,660,000 in the previous year[114]. Dividends and Shareholder Information - The interim dividend declared is HKD 0.0195 per share, unchanged from the interim dividend for the six months ended June 30, 2018[5]. - The major shareholder, Zheng Kaiwen, holds 63.42% of the company's shares, amounting to 367,671,999 shares[23]. - The interim dividend declared was HKD 1.95 per share, totaling HKD 9,976,000, consistent with the previous year's interim dividend[130]. Assets and Liabilities - The company's total assets as of June 30, 2019, were HKD 9,260,878,000, a slight decrease from HKD 9,291,190,000 at the end of 2018[66]. - Current assets totaled HKD 613,343,000, down from HKD 629,681,000 in the previous year[63]. - Current liabilities were HKD 316,868,000, a decrease from HKD 358,960,000 year-over-year[63]. - The company's net current assets increased to HKD 296,475,000 from HKD 270,721,000 in the previous year[63]. - The group reported a total asset value of HKD 9,577,746,000 as of June 30, 2019, slightly down from HKD 9,650,150,000 at the end of 2018[117]. - The group’s total equity as of June 30, 2019, was HKD 741,469,000, compared to HKD 763,858,000 at the end of 2018, reflecting a decrease of 2.9%[117]. - The company reported bank loans of HKD 934,598,000 as of June 30, 2019, down from HKD 1,083,524,000 as of December 31, 2018, representing a decrease of approximately 13.8%[144]. Cash Flow - The net cash generated from operating activities for the six months ended June 30, 2019, was HKD 196,144,000, a decrease of 5.7% compared to HKD 208,479,000 for the same period in 2018[74]. - The net cash used in financing activities was HKD 213,914,000, significantly higher than HKD 135,223,000 in the prior year, with dividends paid to shareholders totaling HKD 54,388,000[74]. - The cash and cash equivalents at the end of the period were HKD 576,663,000, down from HKD 931,038,000 at the end of the previous year[74]. - The company reported a decrease in cash and cash equivalents of HKD 5,855,000 for the six months ended June 30, 2019, compared to an increase of HKD 30,633,000 in the same period of 2018[74]. Corporate Governance - The company has adhered to the corporate governance code, with the chairman and CEO roles held by the same individual, which the board believes provides consistent leadership[40]. - The company has not designated terms for the majority of its directors, ensuring that all directors must retire at least every three years[41]. - The remuneration committee's responsibilities are in line with the corporate governance code, although it does not approve management's compensation proposals[44]. - The company confirmed that all directors complied with the standard code of conduct for securities trading during the reporting period[45]. Accounting Standards - The financial statements have been prepared in accordance with HKAS 34 and comply with the applicable disclosure requirements of the Hong Kong Stock Exchange[76]. - The company adopted HKFRS 16 "Leases" effective January 1, 2019, impacting the recognition of right-of-use assets and lease liabilities[94]. - The application of HKFRS 16 resulted in changes to accounting policies, impacting the recognition of lease liabilities and right-of-use assets[80]. - The company reported that the application of HKFRS 16 did not have a significant impact on the amounts presented in the interim financial statements[101].

Financial Performance - Shun Ho Property Investments Limited reported a net profit of HKD 150 million for the year ended December 31, 2018, representing a 10% increase compared to the previous year[1]. - Total revenue for the year was HKD 500 million, reflecting a growth of 5% year-on-year[1]. - The net profit attributable to the company's owners for the year ended December 31, 2018, was HKD 688 million, a decrease of 21% from HKD 867 million in 2017[12]. - The operating profit from hotel operations increased by 34% to HKD 199 million in 2018, up from HKD 148 million in 2017[14]. - The total revenue for Huada Seaview Hotel in 2018 was HKD 85.841 million, representing a significant increase of 191% from HKD 29.52 million in the same period of 2017[23]. - The company reported a decrease in cash and cash equivalents to HKD 582,651,000 in 2018 from HKD 901,569,000 in 2017, a decline of 35.4%[110]. - The total comprehensive income for the year ended December 31, 2018, was HKD 926,733,000, up from HKD 848,084,000 in 2017, reflecting a growth of approximately 9.2%[119]. Dividends and Shareholder Returns - The company declared a final dividend of HKD 0.05 per share, maintaining the same level as the previous year[2]. - Total dividends, including interim and final dividends, amounted to HKD 0.0693 per share, an increase of 5% from HKD 0.066 per share in 2017[12]. - The proposed final dividend of HKD 0.0498 per share for the year ended December 31, 2018, compared to HKD 0.0474 per share in 2017[12]. - The company paid dividends amounting to HKD 51,975,000 during the year, compared to HKD 47,250,000 in the previous year, reflecting an increase of approximately 6.0%[119]. Property and Investment Strategy - The company plans to expand its property portfolio by acquiring new commercial properties in key urban areas, targeting a 15% increase in rental income over the next fiscal year[1]. - The company continues to engage in commercial property investment and leasing, as well as hotel investment and management through its subsidiaries[12]. - The company has established a strategic partnership with local developers to enhance its market reach and leverage new opportunities in the real estate sector[1]. - The company is exploring potential mergers and acquisitions to further strengthen its market position and diversify its asset base[1]. Governance and Management - The company has adopted the corporate governance code as per the Hong Kong Stock Exchange's listing rules, ensuring compliance with all provisions except for a few deviations[47]. - The company has established a remuneration committee that adheres to the guidelines but does not approve management's salary proposals, ensuring independent oversight[47]. - The board consists of eight members, including four executive directors, one non-executive director, and three independent non-executive directors, all of whom possess appropriate professional qualifications or relevant financial management expertise[49]. - The company emphasizes the importance of training and continuous professional development for directors and senior management[53]. Risk Management - The company has established a risk management system to identify, assess, and manage significant risks, including operational and market risks[57]. - The board is responsible for assessing the nature and extent of risks faced by the group[56]. - The internal audit team conducts regular checks and reports to the board on the effectiveness of risk management and internal control systems[56]. - The company is closely monitoring rental income to avoid losses, particularly due to the low unemployment rate in Hong Kong, which is below 3%[58]. Financial Position and Assets - The total assets of the company as of December 31, 2018, amounted to HKD 7,729,743,000, an increase from HKD 6,850,260,000 in 2017, representing a growth of approximately 12.8%[119]. - The group’s total liabilities as of December 31, 2018, were HKD 1,156,104,000, an increase from HKD 1,055,175,000 in 2017, representing a rise of approximately 9.6%[119]. - The group has recognized an irrevocable operating lease commitment of approximately HKD 1,620,000,000 as of December 31, 2018[143]. Environmental and Sustainability Initiatives - Shun Ho Property Investments Limited aims to implement sustainable practices in its operations, targeting a 20% reduction in energy consumption by 2025[1]. - The company has implemented various environmental measures to enhance energy efficiency and reduce carbon emissions[2]. Audit and Compliance - The company plans to continue engaging Deloitte as its auditor, ensuring compliance with auditing standards[88]. - The audit committee's responsibilities have been expanded to include reviewing risk management and internal control systems[56]. - The company ensures that financial statements are prepared in compliance with applicable regulations and accounting standards[56].