Financial Performance - For the year ended December 31, 2020, the company reported a loss attributable to shareholders of HKD 172 million, a decrease from a profit of HKD 17 million in 2019, representing a decline of HKD 189 million[6]. - The hotel operations generated a loss of HKD 55.5 million, compared to a profit of HKD 31.2 million in the previous year, indicating a significant operational downturn[6]. - Total revenue for the year ended December 31, 2020, decreased by 49% from HKD 464 million to HKD 235 million[9]. - The company reported a significant drop in securities investment income, which fell to HKD 5 million, down 99% from the previous year[8]. - The overall loss for the year was primarily attributed to a decline in hotel revenue, revaluation losses, and depreciation expenses[8]. - The company reported a loss before tax of HKD 220,053,000 compared to a profit of HKD 57,782,000 in 2019[85]. - The net loss for the year was HKD 235,456,000, a significant decline from a profit of HKD 24,056,000 in 2019[85]. - Basic loss per share was HKD (33.55), compared to earnings of HKD 3.38 per share in the previous year[85]. - The company reported a significant increase in revenue, achieving a total of $X million for the quarter, representing a Y% growth year-over-year[13]. Hotel Operations - Total revenue from hotel operations for the year was HKD 218 million, a decrease of 52% from HKD 452 million in 2019[8]. - Operating hotel revenue fell by 52% to HKD 183.9 million due to reduced rent and occupancy rates[9]. - The overall economic impact of COVID-19 led to a decline in overseas and Chinese tourist arrivals, with hotel revenues dropping over 90%[11]. - The company anticipates that the crisis caused by the pandemic may have long-term effects on overseas tourism and hotel operations[6]. - The company holds a 71.09% stake in Huada Hotel Investment Limited, which currently operates nine hotels, including major brands like Ramada and Royal Scot Hotel[6]. Dividends and Reserves - The company did not recommend a final dividend for the year due to the ongoing impact of the COVID-19 pandemic on hotel operations and rental income[6]. - The board does not recommend the distribution of a final dividend for the year ended December 31, 2020, consistent with the previous year[43]. - The company has adopted a dividend policy aimed at providing stable and sustainable returns to shareholders, considering factors such as operational conditions and financial status[40]. - As of December 31, 2020, the distributable reserves available to shareholders amounted to HKD 1,017,317,000, a decrease from HKD 1,075,614,000 in 2019[43]. Governance and Management - The board consists of nine members, including five executive directors, one non-executive director, and three independent non-executive directors, all of whom possess appropriate professional qualifications or relevant financial management expertise[16]. - The company has complied with all provisions of the corporate governance code for the year ended December 31, 2020, except for certain deviations[14]. - The chairman and CEO positions are held by the same individual, which the board believes provides stable and consistent leadership, benefiting the company's strategic planning and execution[14]. - The company has established a remuneration committee, which is composed mainly of independent non-executive directors, to oversee compensation matters[14]. - The board is responsible for setting the strategic direction of the group, establishing goals, and overseeing the performance of senior management[19]. Risk Management and Internal Controls - The risk management committee was established in 2019, consisting of three executive directors responsible for daily, weekly, and monthly reviews of business, financial, and asset management risks[24]. - The audit committee reviews the effectiveness of the risk management and internal control systems, reporting findings to the board[23]. - The company ensures that financial statements are prepared in accordance with applicable regulations and accounting standards, with timely publication[22]. - The board believes that the risk management and internal control systems are effective and sufficient to protect the interests of shareholders, customers, and employees[23]. Financial Position - Total debt as of December 31, 2020, was HKD 850 million, down from HKD 907 million in 2019, due to loan repayments[11]. - The company’s total liabilities decreased from HKD 312,029,000 in 2019 to HKD 289,763,000 in 2020, indicating a reduction in financial obligations[89]. - The company’s investment properties increased in value from HKD 4,937,300,000 in 2019 to HKD 5,224,310,000 in 2020, reflecting growth in real estate assets[89]. - The company’s cash and cash equivalents increased to HKD 173,672,000 in 2020 from HKD 152,176,000 in 2019, showing improved liquidity[89]. Future Outlook - The company anticipates continued challenges in 2021 due to low occupancy rates and high operational costs amid ongoing geopolitical tensions and the pandemic[11]. - The company’s management is optimistic about future revenue growth due to ongoing participation in government support programs and market recovery efforts[105]. - The company is considering strategic acquisitions to enhance its market position, with potential targets identified[13]. Environmental and Social Responsibility - The group aims to minimize environmental impact through various eco-friendly measures, including reducing carbon emissions[63]. - The company emphasizes the importance of suppliers in maintaining service quality and has implemented supplier approval processes[63].

[Company Information](index=2&type=section&id=%E5%85%AC%E5%8F%B8%E8%B3%87%E6%96%99) This section provides essential company details, including board composition, key banking partners, registered address, share registrar, auditor, company secretary, and website [Board of Directors](index=2&type=section&id=%E8%91%A3%E4%BA%8B%E6%9C%83) The company's board of directors comprises executive, non-executive, and independent non-executive directors, with Mr. Cheng Kai Man as Chairman - Executive Directors include Mr. Cheng Kai Man (Chairman), Mr. Hui Wing Ho, Ms. Lau Kam Mei, Ms. Ng Yuet Ying, Ms. Cheng Wai Kwan, with Ms. Wong Kwai Fong having retired on May 22, 2020[4](index=4&type=chunk) - Non-executive Director is Ms. Lui Fung Mei Yee, and Independent Non-executive Directors are Mr. Kwok Chi Sum, Mr. Chan Kim Fai, and Mr. Lam Kwai Cheung[4](index=4&type=chunk) [Principal Bankers](index=2&type=section&id=%E4%B8%BB%E8%A6%81%E5%BE%80%E4%BE%86%E9%8A%80%E8%A1%8C) The company's principal bankers are The Hongkong and Shanghai Banking Corporation Limited and Bank of China (Hong Kong) Limited - Principal bankers include The Hongkong and Shanghai Banking Corporation Limited and Bank of China (Hong Kong) Limited[4](index=4&type=chunk) [Registered Office](index=2&type=section&id=%E8%A8%BB%E5%86%8A%E5%9C%B0%E5%9D%80) The company's registered office is located at 3rd Floor, Shun Ho Commercial Building, 24-30 Ice House Street, Central, Hong Kong - The company's registered office is at 3rd Floor, Shun Ho Commercial Building, 24-30 Ice House Street, Central, Hong Kong[4](index=4&type=chunk) [Share Registrar](index=2&type=section&id=%E8%82%A1%E4%BB%BD%E9%81%8E%E6%88%B6%E7%99%BB%E8%A8%98%E8%99%95) The company's share registrar is Tricor Tengis Limited, located at 54th Floor, Hopewell Centre, 183 Queen's Road East, Hong Kong - The share registrar is Tricor Tengis Limited, located at 54th Floor, Hopewell Centre, 183 Queen's Road East, Hong Kong[4](index=4&type=chunk) [Auditor](index=2&type=section&id=%E6%A0%B8%E6%95%B8%E5%B8%AB) The company's auditor is Deloitte Touche Tohmatsu - The company's auditor is Deloitte Touche Tohmatsu[4](index=4&type=chunk) [Company Secretary](index=2&type=section&id=%E5%85%AC%E5%8F%B8%E7%A7%98%E6%9B%B8) The company secretary is Ms. Koo Ching Fun - The company secretary is Ms. Koo Ching Fun[4](index=4&type=chunk) [Company Website](index=2&type=section&id=%E5%85%AC%E5%8F%B8%E7%B6%B2%E7%AB%99) The company's website is www.shunho.com.hk - The company's website is www.shunho.com.hk[4](index=4&type=chunk) [Management Discussion and Analysis](index=3&type=section&id=%E7%AE%A1%E7%90%86%E5%B1%A4%E4%B9%8B%E8%A8%8E%E8%AB%96%E5%8F%8A%E5%88%86%E6%9E%90) This section provides an overview of the company's financial performance, business operations, liquidity, key achievements, and future outlook [Interim Results](index=3&type=section&id=%E4%B8%AD%E6%9C%9F%E6%A5%AD%E7%B8%BE) H1 2020 loss attributable to owners was HKD 142 million, a significant decrease from prior year's profit, primarily due to hotel operating losses and revaluation Profit (Loss) Attributable to Company Owners | Metric | H1 2020 (Thousand HKD) | H1 2019 (Thousand HKD) | Change (Thousand HKD) | | :--- | :--- | :--- | :--- | | Profit (Loss) Attributable to Company Owners | (142,000) | 91,000 | (233,000) | - The overall loss was primarily attributable to hotel operating losses, revaluation losses, and depreciation[9](index=9&type=chunk) [Interim Dividend](index=3&type=section&id=%E4%B8%AD%E6%9C%9F%E8%82%A1%E6%81%AF) The Board does not recommend an interim dividend for H1 2020, compared to 1.95 HK cents per share in the prior year Interim Dividend Distribution | Period | H1 2020 | H1 2019 | | :--- | :--- | :--- | | Dividend per share | Not recommended | 1.95 HK cents | [Business Overview](index=3&type=section&id=%E6%A5%AD%E5%8B%99%E6%A6%82%E8%A7%88) The Group primarily engages in commercial property investment and leasing, alongside hotel investment and management - The Group's core businesses are commercial property investment, property leasing, hotel investment, and hotel management[8](index=8&type=chunk) [Business Performance](index=4&type=section&id=%E8%A1%A8%E7%8F%BE) Hotel business revenue significantly declined by 71%, leading to a loss for Magnificent Hotel Investments, while commercial property rental income slightly increased [Hotel Business](index=4&type=section&id=%E9%85%92%E5%BA%97%E6%A5%AD%E5%8B%99) Hotel business revenue decreased by 71% to HKD 85 million, mainly due to lower room rates and occupancy, resulting in a HKD 154 million loss for Magnificent Hotel Investments Hotel Business Revenue and Loss | Metric | H1 2020 (Thousand HKD) | H1 2019 (Thousand HKD) | Change | | :--- | :--- | :--- | :--- | | Operating Hotel Revenue | 85,000 | 289,000 | -71% | | Profit (Loss) Attributable to Owners of Magnificent Hotel Investments | (154,000) | 58,000 | Decrease of **HKD 212 million** | - The Group holds a **71.09%** interest in Magnificent Hotel Investments, which owns **9** hotels with approximately **2,821** rooms, making it one of Hong Kong's largest hotel groups[11](index=11&type=chunk) Magnificent Hotel Investments Group Revenue Composition | Revenue Source | H1 2020 (Thousand HKD) | H1 2019 (Thousand HKD) | Change | Reason | | :--- | :--- | :--- | :--- | :--- | | Operating Hotel Revenue | 71,463 | 248,370 | -71% | Decrease in room rates and occupancy | | Investment Property Income | 18,782 | 16,739 | +12% | Leasing of Royal Scot Hotel and Apartments in London | | Dividend Income | 53 | 3,557 | -99% | Decrease in dividend from equity investments | | Other Income | 9,489 | 8,804 | +8% | - | | **Total** | **99,787** | **277,470** | **-64%** | - | - Rental income from Royal Scot Hotel in London increased by **12%** year-on-year to **GBP 1,769,000** (**HKD 17,474,000**)[15](index=15&type=chunk) [Commercial Property Rental Income](index=6&type=section&id=%E5%95%86%E4%B8%9A%E7%89%A9%E4%B8%9A%E7%A7%9F%E9%87%91%E6%94%B6%E5%85%A5) Commercial property rental income totaled HKD 85 million, an increase from HKD 81 million in the prior year, primarily from UK hotel properties and other commercial assets Commercial Property Rental Income | Metric | H1 2020 (Thousand HKD) | H1 2019 (Thousand HKD) | | :--- | :--- | :--- | | Commercial Property Rental Income | 85,000 | 81,000 | - Administrative expenses (excluding depreciation) increased by **4%** to **HKD 21 million**, mainly due to professional fees incurred from the acquisition of Wood Street Hotel in London[17](index=17&type=chunk) [Liquidity](index=6&type=section&id=%E8%B3%87%E9%87%91%E6%B5%81%E5%8B%95) Total debt increased to HKD 1.27 billion, with gearing ratio rising to 16%, mainly to increase cash reserves; post-period, debt reduced to HKD 914 million Overall Debt and Gearing Ratio | Metric | June 30, 2020 | December 31, 2019 | | :--- | :--- | :--- | | Overall Debt | **HKD 1,270 million** | **HKD 907 million** | | Gearing Ratio | **16%** | **11%** | - The increase in debt aimed to build appropriate cash reserves to address potential banking system disruptions due to social instability in Hong Kong[18](index=18&type=chunk) - Bank loans of **HKD 356.2 million** were repaid in July and August 2020, reducing overall debt to approximately **HKD 914 million**[18](index=18&type=chunk) - The Group's bank loans are primarily denominated in HKD and GBP, bearing interest at floating rates, exposing the Group to foreign exchange risk[18](index=18&type=chunk) - As of June 30, 2020, the Group's total number of employees decreased to **570** (December 31, 2019: **698**)[18](index=18&type=chunk) [Key Business Achievements](index=7&type=section&id=%E9%87%8D%E9%BB%9E%E6%A5%AD%E5%8B%99%E6%88%90%E7%B8%BE) Despite severe impacts on Hong Kong's tourism, hotel management maintained over 80% occupancy and cut operating costs by 44%; London Royal Scot Hotel rental income grew 12% - Hong Kong's tourism market was severely impacted by local social unrest and the novel coronavirus, with overseas and Chinese visitors dropping to less than **100 per day**, and hotel and retail shop turnover declining by over **90%**[20](index=20&type=chunk) - Hotel management successfully reduced operating costs by **HKD 72 million** (**44%**) while maintaining high occupancy rates of over **80%**[20](index=20&type=chunk) - Rental income from Royal Scot Hotel in London increased by **12%** year-on-year, and other commercial properties were almost fully leased, though retail property rental income significantly declined[20](index=20&type=chunk) - On January 29, 2020, the Group acquired the Wood Street Police Station Headquarters in Central London for **GBP 40 million**, with plans to renovate it into a luxury hotel with approximately **210** rooms[20](index=20&type=chunk) [Future Outlook](index=7&type=section&id=%E5%B1%95%E6%9C%9B%E6%9C%AA%E4%BE%86) Management anticipates slow return of tourists, ongoing challenges for hotels and retail, potential increase in office vacancy rates, and sustained geopolitical harm to economic recovery - The Group owns **nine** revenue-generating hotels, with **seven in Hong Kong**, **one in Shanghai**, **one in London**, and the newly acquired London Wood Street Hotel renovation project[21](index=21&type=chunk) - Hong Kong's economy was negatively impacted by the US-China trade war, social instability, and the novel coronavirus, leading to a sharp decline in international and Chinese tourists, affecting the local economy, accommodation, retail, and hotel markets[21](index=21&type=chunk) - Management expects overseas and Chinese tourists will not return to Hong Kong in large numbers for the remainder of the fiscal year, and the hotel and retail sectors will continue to suffer from low occupancy and high operating costs[21](index=21&type=chunk) - Affected by the US-China trade war, street violence, and economic collapse, office tenants (mostly international trading companies) face difficult times, with office vacancy rates expected to increase rapidly[21](index=21&type=chunk) - In the long term, the ongoing adverse relationship between the US and China will impact geopolitics, continuously harming the recovery of all tourism and the economy[21](index=21&type=chunk) [Equity and Corporate Governance](index=8&type=section&id=%E8%82%A1%E6%AC%8A%E5%8F%8A%E4%BC%81%E6%A5%AD%E7%AE%A1%E6%B2%BB) This section covers public shareholding, securities transactions, directors' and major shareholders' interests, independent review, and corporate governance practices [Public Float](index=8&type=section&id=%E5%85%AC%E7%9C%BE%E6%8C%81%E8%82%A1%E9%87%8F) The company maintained sufficient public float as required by HKEX Listing Rules throughout the period and at period-end - The company maintained sufficient public float as required by the HKEX Listing Rules throughout the period and as of the report date[23](index=23&type=chunk) [Purchase, Sale or Redemption of Listed Securities](index=8&type=section&id=%E8%B3%BC%E5%85%A5%E3%80%81%E5%87%BA%E5%94%AE%E6%88%96%E8%B4%96%E5%9B%9E%E4%B8%8A%E5%B8%82%E8%AD%89%E5%88%B8) Neither the company nor its subsidiaries purchased, sold, or redeemed any of its listed securities during H1 2020 - Neither the company nor any of its subsidiaries purchased, sold, or redeemed any of the company's listed securities during the period[24](index=24&type=chunk) [Directors' Interests in Listed Securities](index=8&type=section&id=%E8%91%A3%E4%BA%8B%E6%96%BC%E4%B8%8A%E5%B8%82%E8%AD%89%E5%88%B8%E4%B9%8B%E6%AC%8A%E7%9B%8A) Chairman Mr. Cheng Kai Man held 369.49 million shares (63.73%), primarily through controlled entities, and also held controlling interests in associated corporations Directors' Interests in the Company's Shares | Director's Name | Capacity | Nature of Interest | Number of Shares/Relevant Shares Held | Approximate % of Shareholding | | :--- | :--- | :--- | :--- | :--- | | Cheng Kai Man | Beneficial owner and interest in controlled corporations | Personal and corporate | 369,489,999 | 63.73% | - Mr. Cheng Kai Man holds shares in the company through Omnico Company Inc., Mercury Fast Limited, and Trillion Resources Limited, and beneficially owns **1,710,000** shares[25](index=25&type=chunk) Directors' Interests in Associated Corporations | Director's Name | Name of Associated Corporation | Capacity | Nature of Interest | Number of Shares/Relevant Shares Held | Approximate % of Shareholding | | :--- | :--- | :--- | :--- | :--- | :--- | | Cheng Kai Man | Magnificent Hotel Investments Limited | Interest in controlled corporations | Corporate | 6,360,585,437 | 71.09% | | Cheng Kai Man | Shun Ho Holdings Limited | Beneficial owner and interest in controlled corporations | Personal and corporate | 217,452,825 | 71.44% | | Cheng Kai Man | Trillion Resources Limited | Beneficial owner | Personal | 2 | 100% | [Major Shareholders](index=10&type=section&id=%E4%B8%BB%E8%A6%81%E8%82%A1%E6%9D%B1) Major shareholders (excluding directors) included Omnico Company Inc. (60.38%), Shun Ho Holdings and Trillion Resources (both 63.44%), and Saray Capital Limited and associates (10.93%) Major Shareholders' Shareholding | Shareholder Name | Capacity | Number of Shares/Relevant Shares Held | Approximate % of Shareholding | | :--- | :--- | :--- | :--- | | Mercury Fast Limited | Beneficial owner | 68,139,510 | 11.75% | | Magnificent Hotel Investments | Interest in controlled corporations | 68,139,510 | 11.75% | | Omnico Company Inc. | Beneficial owner and interest in controlled corporations | 350,043,999 | 60.38% | | Shun Ho Holdings | Interest in controlled corporations | 367,779,999 | 63.44% | | Trillion Resources | Interest in controlled corporations | 367,779,999 | 63.44% | | Li Pui Ling | Interest of spouse | 367,779,999 | 63.44% | | Credit Suisse Trust Limited | Interest in controlled corporations | 63,379,591 | 10.93% | | Hashim Majed Hashim A. | Interest in controlled corporations | 63,379,591 | 10.93% | | North Salomon Limited | Interest in controlled corporations | 63,379,591 | 10.93% | | Saray Capital Limited | Interest in controlled corporations | 63,379,591 | 10.93% | | Saray Value Fund SPC | Beneficial owner and interest of parties acting in concert | 63,379,591 | 10.93% | | Saray Value SPV Asia I | Beneficial owner and interest of parties acting in concert | 63,379,591 | 10.93% | | Shobokshi Hussam Ali H. | Interest in controlled corporations | 63,379,591 | 10.93% | [Independent Review](index=12&type=section&id=%E7%8D%A8%E7%AB%8B%E5%AF%A9%E9%96%B1) H1 2020 interim results were unaudited but reviewed by Deloitte Touche Tohmatsu and the Group's audit committee, finding no material non-compliance with HKAS 34 - Deloitte Touche Tohmatsu reviewed the condensed consolidated financial statements in accordance with Hong Kong Standard on Review Engagements 2410[36](index=36&type=chunk) - The interim results and interim report were reviewed by the Group's audit committee[36](index=36&type=chunk) [Corporate Governance](index=12&type=section&id=%E4%BC%81%E6%A5%AD%E7%AE%A1%E6%B2%BB) The company complied with most Corporate Governance Code provisions, with deviations regarding combined Chairman/CEO roles, non-executive directors' terms, and committee responsibilities [Compliance with Corporate Governance Code](index=12&type=section&id=%E9%81%B5%E5%AE%88%E4%BC%81%E6%A5%AD%E7%AE%A1%E6%B2%BB%E5%AE%88%E5%88%99) Deviations from the Corporate Governance Code exist, but the Board believes the combined Chairman/CEO role benefits strategy, and director rotation ensures governance - Deviation from Code Provision A.2.1: The roles of Chairman and Chief Executive Officer are combined and held by Mr. Cheng Kai Man, which the Board believes provides strong and consistent leadership, facilitating effective strategic planning and implementation[37](index=37&type=chunk) - Deviation from Code Provision A.4.1: All directors, except for three non-executive directors, do not have a specific term of appointment, but according to the company's articles of association, each director must retire by rotation at least once every three years[38](index=38&type=chunk) - Deviation from Code Provision A.5.2: The terms of reference for the Nomination Committee do not include the responsibility for selecting and nominating directors, which is handled by the Board due to the Nomination Committee members' insufficient knowledge of industry practices[40](index=40&type=chunk) - Deviation from Code Provision B.1.2: The terms of reference for the Remuneration Committee do not include the responsibility for approving management's remuneration proposals, compensation for executive directors and senior management, or compensation for dismissal due to director misconduct, which is handled by the Board[40](index=40&type=chunk) [Compliance with Model Code](index=13&type=section&id=%E9%81%B5%E5%AE%88%E6%A8%99%E6%BA%96%E5%AE%88%E5%88%99) The company adopted the Model Code for Securities Transactions by Directors and confirmed all directors complied with it during the period - The company adopted the Model Code set out in Appendix 10 of the Listing Rules and confirmed that all directors complied with it for the six months ended June 30, 2020[41](index=41&type=chunk) [Review Report on Condensed Consolidated Financial Statements](index=14&type=section&id=%E7%B0%A1%E6%98%8E%E7%B6%9C%E5%90%88%E8%B2%A1%E5%8B%99%E5%A0%B1%E8%A1%A8%E7%9A%84%E5%AF%A9%E9%96%B1%E5%A0%B1%E5%91%8A) Deloitte Touche Tohmatsu reviewed the condensed consolidated financial statements of Shun Ho Property Investments Limited and its subsidiaries in accordance with Hong Kong Standard on Review Engagements 2410, finding no material matters indicating non-compliance with HKAS 34 - Deloitte Touche Tohmatsu reviewed the condensed consolidated financial statements in accordance with Hong Kong Standard on Review Engagements 2410[43](index=43&type=chunk)[45](index=45&type=chunk) - The review concluded that nothing has come to the reviewer's attention that causes them to believe the condensed consolidated financial statements are not prepared, in all material respects, in accordance with Hong Kong Accounting Standard 34[46](index=46&type=chunk) [Condensed Consolidated Financial Statements](index=16&type=section&id=%E7%B0%A1%E6%98%8E%E7%B6%9C%E5%90%88%E8%B2%A1%E5%8B%99%E5%A0%B1%E8%A1%A8) This section presents the condensed consolidated financial statements, including the income statement, statement of comprehensive income, statement of financial position, statement of changes in equity, and cash flow statement [Condensed Consolidated Statement of Profit or Loss](index=16&type=section&id=%E7%B0%A1%E6%98%8E%E7%B6%9C%E5%90%88%E6%90%8D%E7%9B%8A%E8%A1%A8) H1 2020 loss was HKD 189 million (prior year profit HKD 108 million), with revenue decreasing from HKD 370 million to HKD 171 million, mainly due to investment property impairment and lower hotel revenue Key Data from Condensed Consolidated Statement of Profit or Loss | Metric | H1 2020 (Thousand HKD) | H1 2019 (Thousand HKD) | | :--- | :--- | :--- | | Revenue | 170,677 | 370,197 | | Gross profit | 23,747 | 149,343 | | Fair value (impairment) gain on investment properties | (184,229) | 10,000 | | Administrative expenses | (25,328) | (24,382) | | Finance costs | (10,077) | (11,171) | | Profit (Loss) before tax | (185,759) | 132,578 | | Profit (Loss) for the period | (189,160) | 107,863 | | Profit (Loss) attributable to owners of the Company | (142,331) | 91,466 | | Basic (loss) earnings per share (HK cents) | (27.82) | 17.88 | [Condensed Consolidated Statement of Comprehensive Income](index=17&type=section&id=%E7%B0%A1%E6%98%8E%E7%B6%9C%E5%90%88%E7%B8%BD%E5%85%A8%E9%9D%A2%E6%94%B6%E7%9B%8A%E8%A1%A8) H1 2020 total comprehensive expense was HKD 306 million (prior year income HKD 106 million), mainly due to fair value losses on equity investments and overseas operations exchange differences Key Data from Condensed Consolidated Statement of Comprehensive Income | Metric | H1 2020 (Thousand HKD) | H1 2019 (Thousand HKD) | | :--- | :--- | :--- | | Profit (Loss) for the period | (189,160) | 107,863 | | Fair value loss on equity investments | (41,246) | (455) | | Exchange differences on translation of overseas operations | (76,024) | (1,413) | | Total comprehensive (expense) income for the period | (306,430) | 105,995 | | Total comprehensive (expense) income attributable to owners of the Company | (225,698) | 90,139 | [Condensed Consolidated Statement of Financial Position](index=18&type=section&id=%E7%B0%A1%E6%98%8E%E7%B6%9C%E5%90%88%E8%B2%A1%E5%8B%99%E7%8B%80%E6%B3%81%E8%A1%A8) Total assets slightly decreased; investment properties increased, equity investments decreased; bank balances and cash increased, but bank loans also rose, resulting in negative net current assets Key Data from Condensed Consolidated Statement of Financial Position | Metric | June 30, 2020 (Thousand HKD) | December 31, 2019 (Thousand HKD) | | :--- | :--- | :--- | | **Non-current assets** | | | | Property, plant and equipment | 3,687,770 | 3,772,036 | | Investment properties | 5,154,490 | 4,937,300 | | Equity investments | 71,983 | 113,229 | | **Current assets** | | | | Bank balances and cash | 499,136 | 152,176 | | **Current liabilities** | | | | Bank loans | 585,950 | 203,153 | | Net current assets | (159,470) | (136,154) | | Total equity | 7,937,107 | 8,243,537 | | Non-current liabilities - Bank loans | 650,247 | 697,682 | [Condensed Consolidated Statement of Changes in Equity](index=20&type=section&id=%E7%B0%A1%E6%98%8E%E7%B6%9C%E5%90%88%E6%AC%8A%E7%9B%8A%E8%AE%8A%E5%8B%95%E8%A1%A8) Equity attributable to owners decreased from HKD 7.105 billion to HKD 6.880 billion, primarily due to the total comprehensive expense for the period - Equity attributable to owners of the Company decreased from **HKD 7,105,476 thousand** as of January 1, 2020, to **HKD 6,879,778 thousand** as of June 30, 2020[65](index=65&type=chunk) - The change in equity was primarily affected by the total comprehensive expense for the period of **HKD 225,698 thousand**, including fair value losses on equity investments and exchange differences on overseas operations[65](index=65&type=chunk) [Condensed Consolidated Statement of Cash Flows](index=21&type=section&id=%E7%B0%A1%E6%98%8E%E7%B6%9C%E5%90%88%E7%8F%BE%E9%87%91%E6%B5%81%E9%87%8F%E8%A1%A8) Net cash from operating activities significantly decreased, investing activities were an outflow, but financing activities increased due to new bank loans, leading to higher cash and cash equivalents Key Data from Condensed Consolidated Statement of Cash Flows | Metric | H1 2020 (Thousand HKD) | H1 2019 (Thousand HKD) | | :--- | :--- | :--- | | Net cash from operating activities | 12,195 | 196,144 | | Net cash (used in) from investing activities | (28,890) | 11,915 | | Net cash from (used in) financing activities | 364,485 | (213,914) | | Net increase (decrease) in cash and cash equivalents | 347,790 | (5,855) | | Cash and cash equivalents at end of period | 499,136 | 576,663 | - Net cash from financing activities significantly increased, mainly due to new bank loans of **HKD 384.43 million**, offsetting bank loan repayments and dividends paid[70](index=70&type=chunk) [Notes to the Condensed Consolidated Financial Statements](index=22&type=section&id=%E7%B0%A1%E6%98%8E%E7%B6%9C%E5%90%88%E8%B2%A1%E5%8B%99%E5%A0%B1%E8%A1%A8%E9%99%84%E8%A8%BB) This section details the basis of preparation, significant events, accounting policies, revenue, segment information, financial costs, income tax, profit/loss adjustments, dividends, EPS, property, investment properties, receivables, payables, bank loans, share capital, related party transactions, capital commitments, and fair value measurement of financial instruments [Basis of Preparation](index=22&type=section&id=%E7%B7%A8%E8%A3%BD%E5%9F%BA%E6%BA%96) The condensed consolidated financial statements are presented in HKD, prepared under HKAS 34 and Listing Rules Appendix 16; despite negative net current assets, the Board believes the Group has going concern ability - The company is a public limited company incorporated in Hong Kong, with its shares listed on the HKEX[72](index=72&type=chunk) - The company's ultimate holding company is Trillion Resources Limited, an international business company incorporated in the British Virgin Islands[72](index=72&type=chunk) - These condensed consolidated financial statements are presented in HKD and prepared in accordance with Hong Kong Accounting Standard 34 and the applicable disclosure requirements of Appendix 16 of the Listing Rules[73](index=73&type=chunk) - Despite current liabilities exceeding current assets by **HKD 159.47 million** as of June 30, 2020, the Board believes the Group has sufficient financial resources (including internal resources and unutilized bank facilities) to support its going concern[75](index=75&type=chunk) [Significant Events During the Interim Period](index=24&type=section&id=%E6%9C%AC%E4%B8%AD%E6%9C%9F%E6%9C%9F%E9%96%93%E7%9A%84%E9%87%8D%E5%A4%A7%E4%BA%8B%E9%A0%85) COVID-19 negatively impacted the Group's business, leading to reduced revenue and fair value changes; HKD 8.597 million in government grants were recognized - The outbreak of COVID-19 and subsequent quarantine measures and travel restrictions negatively impacted the global economy and the Group's business, leading to reduced revenue and changes in investment property fair values[78](index=78&type=chunk) - During the interim period, the Group recognized government grants of **HKD 8.597 million** related to COVID-19 subsidies, of which **HKD 4.847 million** was related to the Hong Kong SAR Government's Employment Support Scheme and offset against related salary expenses[78](index=78&type=chunk) [Principal Accounting Policies](index=24&type=section&id=%E4%B8%BB%E8%A6%81%E6%9C%83%E8%A8%88%E6%94%BF%E7%AD%96) The financial statements are prepared on a historical cost basis, except for fair value measured items; revisions to HKFRS were applied but had no significant impact - These condensed consolidated financial statements are prepared on a historical cost basis, except for investment properties and certain financial instruments measured at fair value (where applicable)[79](index=79&type=chunk) - Revisions to Hong Kong Financial Reporting Standards, including HKAS 1 and HKAS 8 (Amendments) 'Definition of Material', were first applied in this interim period but had no significant impact on the condensed consolidated financial statements[80](index=80&type=chunk)[81](index=81&type=chunk)[82](index=82&type=chunk) [Revenue](index=25&type=section&id=%E6%94%B6%E5%85%A5) H1 2020 total revenue was HKD 170.68 million, a significant decrease from HKD 370.20 million, driven by a 70.4% drop in hotel revenue and a 67.5% decline in dividend income Revenue Composition | Revenue Source | H1 2020 (Thousand HKD) | H1 2019 (Thousand HKD) | | :--- | :--- | :--- | | Operating hotel revenue | 85,355 | 289,009 | | Property rental income | 85,269 | 81,025 | | Dividend income | 53 | 163 | | **Total revenue** | **170,677** | **370,197** | Analysis of Revenue by Hotel Service Segment | Type of goods or services | H1 2020 (Thousand HKD) | H1 2019 (Thousand HKD) | | :--- | :--- | :--- | | Room revenue and other ancillary services | 83,991 | 278,795 | | Food and beverages | 1,364 | 10,214 | | **Total** | **85,355** | **289,009** | | **Geographical distribution of markets** | | | | Hong Kong | 83,689 | 280,859 | | People's Republic of China | 1,666 | 8,150 | | **Total** | **85,355** | **289,009** | [Segment Information](index=27&type=section&id=%E5%88%86%E9%A1%9E%E8%B3%87%E6%96%99) Operating segments include hotel services (loss HKD 60.66 million), property investment (loss HKD 99.88 million), and securities investment (profit HKD 0.053 million); total segment assets were HKD 8.792 billion - The Group's operating and reportable segments include hotel services (**9** hotels), property investment (**3** property categories), and securities investment[87](index=87&type=chunk) Revenue and Results by Operating and Reportable Segment | Segment | H1 2020 Segment Revenue (Thousand HKD) | H1 2019 Segment Revenue (Thousand HKD) | H1 2020 Segment Profit (Loss) (Thousand HKD) | H1 2019 Segment Profit (Thousand HKD) | | :--- | :--- | :--- | :--- | :--- | | Hotel services | 85,355 | 289,009 | (60,657) | 68,472 | | Property investment | 85,269 | 81,025 | (99,878) | 90,708 | | Securities investment | 53 | 163 | 53 | 163 | | **Total** | **170,677** | **370,197** | **(160,482)** | **159,343** | Assets and Liabilities by Operating and Reportable Segment | Segment | June 30, 2020 Segment Assets (Thousand HKD) | December 31, 2019 Segment Assets (Thousand HKD) | | :--- | :--- | :--- | | Hotel services | 3,558,758 | 3,607,091 | | Property investment | 5,161,146 | 5,371,581 | | Securities investment | 71,983 | 113,229 | | **Total segment assets** | **8,791,887** | **9,091,901** | | **Segment liabilities** | | | | Hotel services | 34,162 | 31,063 | | Property investment | 53,920 | 54,205 | | Securities investment | 1 | 2 | | **Total segment liabilities** | **88,083** | **85,270** | [Finance Costs](index=31&type=section&id=%E8%B2%A1%E5%8B%99%E6%88%90%E6%9C%AC) H1 2020 finance costs were HKD 10.08 million, a decrease from HKD 11.17 million, primarily due to reduced bank loan interest Composition of Finance Costs | Item | H1 2020 (Thousand HKD) | H1 2019 (Thousand HKD) | | :--- | :--- | :--- | | Interest on bank loans | 9,909 | 11,171 | | Amount due to an intermediate holding company | 168 | – | | **Total** | **10,077** | **11,171** | [Income Tax Expense](index=31&type=section&id=%E6%89%80%E5%BE%97%E7%A8%85%E8%B2%BB%E7%94%A8) H1 2020 income tax expense was HKD 3.40 million, a significant decrease from HKD 24.72 million, mainly due to deferred tax impact Composition of Income Tax Expense | Item | H1 2020 (Thousand HKD) | H1 2019 (Thousand HKD) | | :--- | :--- | :--- | | Current tax (Hong Kong and United Kingdom) | 11,994 | 23,305 | | Under (over) provision in prior years | (311) | (102) | | Deferred tax | (8,413) | 1,512 | | **Total** | **3,401** | **24,715** | - Hong Kong profits tax rate is **16.5%**, while China and UK profits tax rates are recognized based on management's estimated weighted average annual income tax rate[104](index=104&type=chunk) [Profit (Loss) for the Period](index=32&type=section&id=%E6%9C%AC%E6%9C%9F%EF%BC%88%E虧%E6%90%8D%EF%BC%89%E6%BA%A2%E5%88%A9) The loss for the period was HKD 189.16 million, after deducting depreciation and including bank deposit interest and loss on disposal of property, plant and equipment Profit (Loss) for the Period Adjustment Items | Item | H1 2020 (Thousand HKD) | H1 2019 (Thousand HKD) | | :--- | :--- | :--- | | Depreciation of right-of-use assets | 391 | 407 | | Depreciation of property, plant and equipment | 55,392 | 55,522 | | Interest income from bank deposits | (416) | (4,955) | | Loss (gain) on disposal of property, plant and equipment | 7 | (3,318) | [Dividends](index=33&type=section&id=%E8%82%A1%E6%81%AF) The Board resolved not to declare an interim dividend for H1 2020, compared to 1.95 HK cents per share (HKD 9.976 million) in the prior year - The Board resolved not to declare or recommend an interim dividend for the six months ended June 30, 2020[108](index=108&type=chunk) Dividend Distribution | Period | H1 2020 | H1 2019 | | :--- | :--- | :--- | | Interim dividend (per share) | Not recommended | 1.95 HK cents | | Interim dividend (amount) | – | **9,976 Thousand HKD** | [Earnings (Loss) Per Share](index=33&type=section&id=%E6%AF%8F%E8%82%A1%EF%BC%88%E虧%E6%90%8D%EF%BC%89%E7%9B%88%E5%88%A9) H1 2020 basic loss per share was 27.82 HK cents (prior year basic earnings 17.88 HK cents), based on a HKD 142.33 million loss and 511.613 million issued shares Earnings (Loss) Per Share | Metric | H1 2020 | H1 2019 | | :--- | :--- | :--- | | Basic (loss) earnings per share | (27.82) HK cents | 17.88 HK cents | | Profit (Loss) attributable to owners of the Company | (142,331) Thousand HKD | 91,466 Thousand HKD | | Shares issued during the period | 511,613 Thousand shares | 511,613 Thousand shares | -

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） 二零二零年中期業績 業績 順豪物業投資有限公司（「本公司」）之董事會（「董事會」）宣布截至二零二零年六月三十日止 六個月之本公司擁有人應佔虧損為142,000,000港元（截至二零一九年六月三十日止六個月之溢 利：91,000,000港元），減少233,000,000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上年同期之比較數字如下： 簡明綜合損益表 截至二零二零年六月三十日止六個月 | --- | --- | --- | --- | |-------------------------------------------------------------------------------------------|-------|------------------------------------ ...

[Company Information](index=3&type=section&id=%E5%85%AC%E5%8F%B8%E8%B5%84%E6%96%99) This section provides fundamental information about the company, including its registration, principal bankers, and auditor - Shun Ho Property Investments Limited (Stock Code: 219) is a company incorporated in Hong Kong and listed on the Hong Kong Stock Exchange[1](index=1&type=chunk)[128](index=128&type=chunk) - The company's principal bankers are The Hongkong and Shanghai Banking Corporation Limited and Bank of China (Hong Kong) Limited[4](index=4&type=chunk) - The auditor is Deloitte Touche Tohmatsu[4](index=4&type=chunk) [Chairman's Statement](index=4&type=section&id=%E4%B8%BB%E5%B8%AD%E5%A0%B1%E5%91%8A) [Performance Overview](index=4&type=section&id=%E6%A5%AD%E7%B8%BE) For the year ended December 31, 2019, profit attributable to owners of the company significantly decreased by 97% to **HKD 17 million**, primarily due to lower hotel profits and reduced property valuations Profit Attributable to Owners of the Company for FY2019 | Metric | 2019 (Thousand HKD) | 2018 (Thousand HKD) | Change (%) | | :--- | :--- | :--- | :--- | | Profit attributable to owners of the company | 17,000 | 604,000 | -97% | - The decrease in profit was primarily due to lower hotel profits and reduced revaluation adjustments for investment properties[6](index=6&type=chunk) [Dividend Policy and Distribution](index=4&type=section&id=%E8%82%A1%E6%81%AF) Considering the adverse political situation and the negative impact of the COVID-19 crisis on hotel operations and rental income, the Board does not recommend a final dividend for the year ended December 31, 2019, while an interim dividend was distributed on June 26, 2020 - The Board does not recommend a final dividend for the year ended December 31, 2019 (2018: HK **4.98 cents** per share)[6](index=6&type=chunk) - An interim dividend of HK **1.95 cents** per share for the six months ended June 30, 2019, was distributed on June 26, 2020[6](index=6&type=chunk) [Suspension of Share Register](index=4&type=section&id=%E6%9A%AB%E5%81%9C%E8%BE%A6%E7%90%86%E8%82%A1%E4%BB%BD%E9%81%8E%E6%88%B6%E7%99%BB%E8%A8%98%E6%89%8B%E7%BA%8C) To determine shareholders eligible to attend and vote at the Annual General Meeting on May 22, 2020, the company will suspend share registration from May 19 to May 22, 2020 - To determine eligibility for voting at the Annual General Meeting, share registration will be suspended from May 19 to May 22, 2020[6](index=6&type=chunk) [Management Discussion and Analysis](index=4&type=section&id=%E7%AE%A1%E7%90%86%E5%B1%A4%E4%B9%8B%E8%A8%8E%E8%AB%96%E5%8F%8A%E5%88%86%E6%9E%90) The Group primarily engages in commercial property investment, property leasing, hotel investment, and management, experiencing a significant decline in hotel revenue but slight growth in commercial property rental income in 2019, alongside reduced debt, improved gearing, hotel brand upgrades, and a London property acquisition - The Group continues to engage in commercial property investment and property leasing, and through its principal subsidiaries, in hotel investment and hotel management businesses[6](index=6&type=chunk) [Hotel Business (Magnificent Hotel Investments)](index=4&type=section&id=%E9%85%92%E5%BA%97%E4%B8%9A%E5%8A%A1%EF%BC%88%E8%8F%AF%E5%A4%A7%E9%85%92%E5%BA%97%EF%BC%89) Magnificent Hotel Investments Group operates nine hotels (seven in Hong Kong, one in London, one in Shanghai), with 2019 hotel revenue decreasing by 28% and profit attributable to owners by 88%, mainly due to lower room rates, alongside brand upgrades for some properties - The Group holds a **71.09%** interest in Magnificent Hotel Investments Limited, which owns nine hotels, including Ramada Hong Kong Harbour View, Ramada Hong Kong Grand View, Best Western Plus Hotel Tsim Sha Tsui, Magnificent International Hotel, Grand View Hotel, Grand View Hotel Causeway Bay, Grand View Hotel Metropolitan, Magnificent International Hotel Shanghai, and Royal Scot Hotel in London, totaling approximately **2,821** rooms[6](index=6&type=chunk) Magnificent Hotel Investments Group Key Financial Data for 2019 | Metric | 2019 (Thousand HKD) | 2018 (Thousand HKD) | Change (%) | | :--- | :--- | :--- | :--- | | Profit attributable to owners of the company | 32,000 | 260,000 | -88% | | Hotel operating revenue | 386,619 | 540,040 | -28% | | Property rental income | 35,953 | 34,762 | +3% | | Total revenue | 464,443 | 589,809 | -21% | - Grand View Hotel Harbour View and Grand View Hotel Grand View have been rebranded as the higher-tier Ramada Hong Kong Grand View and Ramada Hong Kong Harbour View, respectively[15](index=15&type=chunk)[32](index=32&type=chunk) - The Royal Scot Hotel in London was valued at **GBP 95 million**, with an initial acquisition cost of **GBP 70 million**[15](index=15&type=chunk)[32](index=32&type=chunk) - Magnificent Hotel Investments Group's average occupancy rate for its Hong Kong hotels was **98%**, with an average room rate of **HKD 526** per room[29](index=29&type=chunk)[30](index=30&type=chunk) - Hotel operating profit decreased by **79%**[28](index=28&type=chunk) [Commercial Property Rental Income](index=8&type=section&id=%E5%95%86%E6%A5%AD%E7%89%A9%E6%A5%AD%E7%A7%9F%E9%87%91%E6%94%B6%E5%85%A5) Commercial property rental income totaled **HKD 165 million** in 2019, a slight increase from 2018, with near 100% occupancy at 633 King's Road and Shun Ho Tower, though shop rents declined due to rent-free periods and concessions - Commercial property rental income totaled **HKD 165 million** (2018: **HKD 161 million**), primarily from Royal Scot Hotel, Shun Ho Tower, 633 King's Road, and some hotel shops[16](index=16&type=chunk) - The commercial building at 633 King's Road and Shun Ho Tower were almost fully leased, but shop rents decreased due to rent-free periods and concessions[17](index=17&type=chunk) - Total rental income from the commercial building at 633 King's Road was **HKD 105.2 million** during the year[24](index=24&type=chunk) - Total rental income from Shun Ho Tower was **HKD 23.69 million** during the year[27](index=27&type=chunk) [Liquidity](index=13&type=section&id=%E8%B3%87%E9%87%91%E6%B5%81%E5%8B%95) As of December 31, 2019, the Group's total debt decreased to **HKD 907 million**, with the gearing ratio improving to **11%**, primarily due to bank loan repayments during the year Group Debt and Gearing Ratio | Metric | 2019 (HKD) | 2018 (HKD) | Change (%) | | :--- | :--- | :--- | :--- | | Total debt | 907,000,000 | 1,089,000,000 | -16.7% | | Gearing ratio | 11% | 13% | -2% | | Number of employees | 698 | 753 | -7.3% | - The reduction in bank debt was primarily due to bank loan repayments during the year[32](index=32&type=chunk) [Key Business Achievements](index=13&type=section&id=%E9%87%8D%E9%BB%9E%E6%A5%AD%E5%8B%99%E6%88%90%E7%B8%BE) On January 29, 2020, the Group acquired the Wood Street Police Station Headquarters property in central London for **GBP 40 million**, aiming to redevelop it into a luxury hotel with approximately 200 rooms, expanding and diversifying its London property portfolio - On January 29, 2020, the Wood Street Police Station Headquarters property at 37 Wood Street, EC2, London, UK, with a total internal area of **117,472 sq ft**, was acquired for **GBP 40 million** (approximately **HKD 404.54 million**)[32](index=32&type=chunk) - The Board considers this acquisition an excellent opportunity for Magnificent Hotel Investments Group to expand and diversify its property investments in the City of London, one of the world's largest business and tourism hubs[32](index=32&type=chunk) - Management plans to renovate the property into a magnificent and elegant heritage hotel with approximately **200** rooms, featuring restaurants, bars, banquet halls

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].