Financial Performance - Total revenue for the year ended June 30, 2024, was HKD 229,786,000, an increase of 10.8% from HKD 207,219,000 for the previous year[1] - The company reported a loss before tax of HKD 162,246,000 compared to a profit of HKD 21,101,000 in the previous year[2] - Loss attributable to shareholders for the year was HKD 131,964,000, a significant decline from a profit of HKD 18,282,000 in the prior year[2] - Basic loss per share was HKD 9.64, compared to earnings of HKD 1.34 per share in the previous year[3] - Gross profit decreased to HKD 132,430,000 from HKD 136,626,000, reflecting a decline in gross margin[2] - Other income increased to HKD 17,895,000 from HKD 11,938,000, indicating growth in non-operating revenue sources[2] - Total operating expenses rose significantly to HKD 204,639,000 from HKD 97,024,000, highlighting increased costs[2] - The company incurred financial expenses of HKD 70,633,000, up from HKD 26,474,000 in the previous year, indicating higher borrowing costs[2] - The company did not recommend a dividend for the year ended June 30, 2024, reflecting its financial challenges[1] Assets and Liabilities - As of June 30, 2024, total assets amounted to HKD 2,324,298,000, an increase of 22.5% from HKD 1,898,227,000 in the previous year[4] - Non-current assets include property, plant, and equipment valued at HKD 1,069,582,000, significantly up from HKD 141,409,000 year-over-year[4] - Current assets include inventories of HKD 4,716,000, a substantial increase from HKD 1,152,000 in the previous year[4] - Total liabilities increased to HKD 600,621,000 from HKD 470,092,000, reflecting a rise of 27.7%[5] - The company's equity as of June 30, 2024, was HKD 1,016,789,000, down from HKD 1,206,959,000, indicating a decrease of 15.7%[5] - The group’s total liabilities reached HKD 1,307,509,000, with HKD 721,653,000 attributed to the gaming operations segment and HKD 73,797,000 to hotel operations[20] Segment Performance - As of June 30, 2024, the total revenue from the hotel operations segment was HKD 59,832,000, while the gaming operations segment generated HKD 169,954,000, leading to a combined revenue of HKD 229,786,000[19] - The total loss before tax for the group was HKD 162,246,000, with segment losses of HKD 27,710,000 from hotel operations and HKD 59,136,000 from gaming operations[19] - The revenue from gaming operations was approximately HKD 170 million, an increase of about 27.3% from approximately HKD 133.5 million in the previous year, accounting for about 74.0% of total group revenue[68] - Revenue from hotel operations was approximately HKD 59.8 million, a decrease of about 18.8% from approximately HKD 73.7 million in the previous year, with room revenue accounting for about 70.5% of total hotel revenue[69] Strategic Initiatives - The company is focusing on strategic initiatives to improve performance and explore new market opportunities moving forward[1] - The company has made significant investments in new technologies and market expansion, focusing on the gaming and hospitality sectors in the Philippines and Macau[6] - The company plans to enhance its operational capabilities and expand its market presence through strategic partnerships and acquisitions[6] - The group plans to consider various financing methods to expand its business and maintain liquidity levels for further development of the integrated resort[73] Compliance and Standards - The financial statements were prepared in accordance with Hong Kong Financial Reporting Standards, ensuring compliance with local regulations[7] - The group has adopted the revised Hong Kong Accounting Standard No. 1, which replaces "significant accounting policies" with "significant accounting policy information" in financial statements[12] - The group does not expect the application of the revised standards to have a significant impact on its financial position and performance[12] - The consolidated financial statements for the year have been reviewed by the Audit Committee, confirming compliance with applicable accounting standards and listing rules[95] Tax and Legal Matters - The group’s subsidiary in the Philippines is involved in a tax dispute with the Bureau of Internal Revenue amounting to approximately PHP 5,009,650,000 (approximately HKD 670,691,000) for various assessment years[36] - The company has not made any provisions in the consolidated financial statements for the tax disputes as of June 30, 2024[38] - The group has received approval from the Court of Tax Appeals to cancel a tax seizure order, allowing for potential recovery of seized funds[61] Market Outlook - The group maintains a cautiously optimistic outlook on the prospects of the Philippine tourism and gaming industry despite potential challenges from geopolitical tensions[73] - The Philippine government is implementing regulatory reforms aimed at enhancing the country's position in Asia and globally, which is expected to benefit the gaming and tourism sectors[71] - The board believes that the influx of tourists will promote economic development in the Philippines and benefit the gaming and entertainment industry[71] Employee and Operational Costs - Total employee costs for the year 2024 amounted to HKD 87,474,000, significantly higher than HKD 33,829,000 in 2023, reflecting increased staffing and operational costs[33] - The total number of employees as of June 30, 2024, is 1,001, with employee costs amounting to approximately HKD 87.5 million, compared to HKD 33.8 million in the previous year[87]

Financial Performance - Total interest income for the six months ended 31 December 2023 was HK$6,051,000, an increase of 29.1% compared to HK$4,690,000 for the same period in 2022[15]. - Total finance costs increased significantly to HK$27,252,000 for the six months ended 31 December 2023, compared to HK$11,656,000 in the previous year, representing a rise of 133.5%[15]. - The net foreign exchange loss for the period was HK$12,020,000, indicating a significant impact on financial performance[10]. - The loss attributable to the owners of the Company for the six months ended 31 December 2023 was HK$36,131,000, compared to a loss of HK$6,407,000 for the same period in 2022, indicating a significant increase in losses[43]. - Basic and diluted loss per share for the six months ended 31 December 2023 was (2.64) HK cents, compared to (0.47) HK cents for the same period in 2022, reflecting a deterioration in financial performance[47]. - Revenue for the six months ended 31 December 2023 was HK$2,352,000, a decrease of 41.7% compared to HK$4,027,000 for the same period in 2022[88]. - The company reported a loss of HK$316,000 for the period, compared to a profit of HK$3,311,000 in the previous year[88]. - Total comprehensive loss for the period was HK$316,000, compared to a comprehensive profit of HK$3,311,000 in the previous year[88]. Taxation and Legal Matters - The income tax credit for the six months ended 31 December 2023 was HK$674,000, compared to HK$255,000 for the same period in 2022, showing an increase of 164.7%[24]. - The company's operations in the Philippines had no assessable profits, resulting in no provision for taxation in the financial statements for the current period[31]. - The Group's subsidiary in Macau is subject to a profits tax rate of 12%, but no provision for taxation was made as there were no assessable profits during the current period[37]. - A tax dispute involving Marina Square Properties, Inc. and the Bureau of Internal Revenue in the Philippines pertains to alleged deficiency taxes amounting to approximately Php3,676,000,000 (approximately HK$518,181,000) for the years 2008, 2012, 2014, and 2015[37]. - On 4 May 2022, MSPI received a formal letter of demand for 2018, claiming a tax deficiency of approximately Php767,633,000 (approximately HK$108,196,000)[37]. - MSPI filed an administrative protest with the BIR for the 2018 tax demand on 3 June 2022, and the case is ongoing[37]. - On 13 June 2023, MSPI received a preliminary assessment notice for alleged deficiency taxes for 2019 amounting to approximately Php537,118,000 (approximately HK$75,706,000)[38]. - MSPI submitted supporting documents for reinvestigation of the 2019 tax demand on 10 November 2023, with a 180-day period for resolution[38]. - The estimated contingent liabilities for alleged deficiency taxes for 2018 and 2019 total approximately Php1,304,800,000 (approximately HK$183,902,000) as of 31 December 2023[38]. Assets and Liabilities - The total depreciation expense for the period was HK$30,813,000, which includes depreciation of property, plant, and equipment[21]. - The Group acquired property, plant, and equipment amounting to approximately HK$56,059,000 during the six months ended 31 December 2023, a substantial increase from HK$2,591,000 in the same period of 2022[55]. - The fair value of the Group's investment properties as of 31 December 2023 was approximately HK$991,000,000, up from HK$989,000,000 as of 30 June 2023, indicating stability in property valuations[67]. - Properties valued at approximately HK$106,000,000 are pledged to a bank to secure loans and general banking facilities granted to the Group[56]. - The Group's loan receivables as of December 31, 2023, include a principal loan of Php338,000,000 (equivalent to HK$47,676,000) to Harbor View Properties and Holdings, Inc., with an interest rate of 3.5% per annum[80]. - The Group's interest in associates decreased from HK$42,479,000 as of June 30, 2023, to HK$41,132,000 as of December 31, 2023[82]. - The Group holds a 40% stake in Harbor View Properties and Holdings, Inc., which operates as a property developer in the Philippines[84]. - The fair value measurement of investment properties is classified as Level 3 in the fair value hierarchy, indicating significant unobservable inputs[75]. - The Group's average credit period for customers ranges from 0 to 90 days, with no collateral held as security[115]. - Trade receivables increased to HK$18,369,000 as of December 31, 2023, up from HK$17,293,000 as of June 30, 2023[113]. - The provision for expected credit losses remained relatively stable at HK$2,963,000 as of December 31, 2023, compared to HK$2,953,000 as of June 30, 2023[113]. - The net trade receivables after provision stood at HK$15,406,000 as of December 31, 2023, compared to HK$14,340,000 as of June 30, 2023[113]. - Non-current assets decreased slightly to HK$87,404,000 from HK$88,161,000, a decline of 0.9%[88]. - Net assets attributable to owners of the equity decreased to HK$38,214,000 from HK$38,737,000 as of 30 June 2023, reflecting a decline of 1.4%[88]. - The group's share of the net assets of the associate was HK$15,286,000, down from HK$15,495,000, indicating a decrease of 1.4%[88]. Financial Management and Strategy - The Group did not propose an interim dividend for the six months ended 31 December 2023, consistent with the previous year[48]. - The revenue growth rate for the period was reported at 3.5%, reflecting modest growth in the Group's operations[61]. - No impairment loss was recognized for the Hotel Operation CGU for the six months ended 31 December 2023, similar to the previous year, indicating stable asset performance[58]. - The company completed a capital reduction on August 11, 2023, reducing the par value of each issued share from HK$1.00 to HK$0.01, resulting in a transfer of HK$1,355,465,000 from share capital to accumulated losses[134]. - The number of issued and fully paid shares remained at 1,369,157,235 as of December 31, 2023, following the capital reduction[134]. - The authorized share capital was adjusted to 200,000,000,000 shares after the share subdivision[134]. - The interim report for the six months ended December 31, 2023, indicates ongoing efforts in financial restructuring and capital management[138]. - The company is focusing on improving its financial health by addressing accumulated losses through capital adjustments[134]. - Future strategies may include enhancing collection processes to reduce overdue receivables and improve cash flow[129]. - The company is exploring market expansion opportunities as part of its growth strategy[138]. Debt and Financing - On 30 March 2023, Fortune Growth issued 6 new promissory notes (the "2023 PNs") with a principal amount of HK$69,385,381 each, totaling HK$416,312,285, representing the principal and accrued interest of the 2022 PNs[143]. - The 2023 PNs carry interest at a fixed rate of 6% per annum, accruing on the outstanding principal amount from the issue date until full repayment[143]. - As of 31 December 2023, a banking facility of Php4,320,000,000 (approximately HK$608,896,000) has been utilized, with interest charged at PHP BVAL Reference Rate +2% per annum[146][147]. - The bank loan and facility are secured by the Group's properties, including approximately HK$106,000,000 in properties, plant and equipment, and HK$991,000,000 in investment properties[148]. - The total non-current bank borrowings as of 31 December 2023 amount to HK$608,896,000[146]. - The 2023 PNs are due and payable on the business day immediately preceding the first anniversary of their issue date[143]. - Fortune Growth has not defaulted on the repayment of the 2022 PNs prior to the exchange for the 2023 PNs[143]. - The promissory notes are denominated in HK$, which is the foreign currency of the relevant group entity[144]. - The total amount of the 2023 PNs includes both principal and accrued interest from the previous notes[143]. - As of December 31, 2023, total non-current bank loans scheduled for repayment include approximately HK$106,000,000 for properties, HK$991,000,000 for investment properties, and HK$39,000,000 for certain bank balances[154]. Investments and Fair Value - The fair value of the convertible bond's conversion derivatives as of December 31, 2023 is determined using a binomial option pricing model, with an expected volatility of 69.47% and a risk-free rate of 4.46%[160]. - The total capital expenditure contracted but not yet accounted for at the end of the reporting period is HK$138,806,000, a significant increase from HK$41,984,000 as of June 30, 2023[167]. - Interest income from associates for the six months ended December 31, 2023, was HK$1,109,000, compared to HK$1,073,000 for the same period in 2022[170]. - Lease payments to associates amounted to HK$(2,329,000) for the six months ended December 31, 2023, down from HK$(2,846,000) in the previous year[170]. - The amortized interest for the convertible bond during the period was HK$2,430,000, reflecting an increase from the previous balance[164]. - The total financial liability at amortized cost for the convertible bond as of December 31, 2023, is HK$49,485,000, while the financial liability at fair value through profit and loss is HK$1,463,000[164]. - The fair value adjustments for the convertible bond during the period resulted in a decrease of HK$3,130,000[164]. - Financial assets at fair value through profit or loss decreased from HK$5,302,000 to HK$5,129,000, a decline of approximately 3.26%[182]. - Financial assets at amortised costs increased significantly from HK$584,121,000 to HK$1,135,224,000, representing a growth of approximately 94.3%[182]. - Financial liabilities at fair value through profit or loss decreased from HK$4,593,000 to HK$1,463,000, a reduction of approximately 68.3%[182]. - Financial liabilities at amortised cost rose from HK$539,314,000 to HK$1,155,989,000, an increase of approximately 114.4%[182]. - Total financial assets increased from HK$589,423,000 to HK$1,140,353,000, reflecting a growth of approximately 93.4%[182]. - Total financial liabilities increased from HK$543,907,000 to HK$1,157,452,000, indicating a rise of approximately 112.5%[182]. - The fair value measurement hierarchy includes Level 1, Level 2, and Level 3 inputs for financial instruments[185]. - The company continues to engage in significant transactions with associates, including lease payments related to land and employee accommodations in the Philippines[179].

Financial Performance - The company reported a loss before tax of HKD (36,805,000) for the six months ending December 31, 2023, compared to a loss of HKD (6,662,000) in the same period last year, indicating a significant increase in losses [2]. - The total comprehensive loss for the period was HKD (42,237,000), up from HKD (24,818,000) year-over-year, reflecting a worsening financial position [2]. - Basic and diluted loss per share was HKD (2.64), compared to HKD (0.47) in the previous year, showing a substantial decline in shareholder value [2]. - The company reported a net loss attributable to shareholders of HKD 36,131,000 for the six months ended December 31, 2023, compared to a loss of HKD 6,407,000 for the same period in 2022 [40]. - Basic and diluted loss per share was HKD (2.64) for the six months ended December 31, 2023, compared to HKD (0.47) for the same period in 2022 [41]. - The group recorded a net loss of approximately 12 million HKD in the current period, compared to a net loss of about 100,000 HKD in the previous period [135]. - The group’s total comprehensive loss for the period was HKD 2,469,000, compared to a loss of HKD 3,430,000 in the previous period [68]. Revenue and Operations - Revenue from hotel operations was HKD 34,692,000, while gaming operations generated HKD 59,358,000, contributing to a total revenue of HKD 94,050,000 for the period [13]. - The company incurred a loss from hotel operations of HKD (9,111,000) and a profit from gaming operations of HKD 16,794,000, highlighting mixed performance across segments [13]. - The revenue growth rate for the six months ended December 31, 2023, was reported at 3.5%, consistent with the previous period [43]. - The group's gaming operation revenue increased significantly from approximately 59.4 million HKD in the previous period to about 71 million HKD in the current period [133]. - Revenue from gaming operations was approximately HKD 71,000,000, an increase of about 19.5% from approximately HKD 59,400,000 in the previous period, accounting for about 67.6% of total revenue [167]. - The group’s hotel operations generated revenue of approximately 34.1 million HKD, with room revenue accounting for about 69.2% of total hotel revenue [145]. Assets and Liabilities - The company’s total assets increased to HKD 2,486,946,000 from HKD 1,898,227,000, indicating growth in asset base [4]. - Cash and cash equivalents rose significantly to HKD 1,051,678,000 from HKD 492,451,000, demonstrating improved liquidity [4]. - As of December 31, 2023, the group's total liabilities were HKD 165,499,000, compared to HKD 163,298,000 as of June 30, 2023 [54]. - The company has pledged properties valued at approximately HKD 106,000,000 to banks as collateral for loans and general banking facilities [44]. - The company's total liabilities include a significant portion related to convertible notes, which are classified as financial liabilities measured at amortized cost [88]. - As of December 31, 2023, the group's current liabilities were approximately 547.6 million HKD, an increase from 470.1 million HKD as of June 30, 2023 [175]. - The asset-to-liability ratio as of December 31, 2023, was approximately 43.3%, compared to 24.7% on June 30, 2023 [194]. Tax and Legal Matters - The company has no taxable profits in the Philippines, resulting in no tax provisions for the period, which may impact future cash flows [19]. - The company is currently involved in a tax dispute with the Philippine Bureau of Internal Revenue, with potential liabilities estimated at approximately HKD 518,181,000 [37]. - The company has initiated administrative appeals regarding tax assessments for the year 2019, seeking a re-evaluation of the formal tax filings [39]. - The company plans to request a refund of the seized amounts if successful in the tax dispute [92]. Financing and Investments - The company secured bank financing of PHP 4,320,000,000 (approximately HKD 608,896,000) on September 25, 2023, with the amount fully drawn by December 31, 2023 [86]. - The group has committed to a total investment of no less than 1 billion USD (approximately 7.82 billion HKD) and no more than 1.2 billion USD (approximately 9.38 billion HKD) for the establishment and operation of a casino in Manila under a temporary license agreement [183]. - The company plans to allocate approximately HKD 150 million for renovations of a hotel in Manila, HKD 100 million for developing nearby land, and HKD 70 million for potential land purchases in the Philippines for hotel and/or entertainment venue construction [191]. Market and Future Outlook - The company plans to continue its operations in the Philippines, leveraging its assets in the Manila metropolitan area for future growth [7]. - The group remains cautiously optimistic about the outlook for the Philippine tourism and gaming industry despite challenges from inflation and geopolitical tensions [188]. - The group will continue to explore market opportunities to enhance profitability and provide better returns to shareholders [184]. - The expected timeline for the use of the remaining proceeds from the placement is delayed until June 30, 2024, or earlier [193]. Miscellaneous - The company has established a policy allowing customers a general credit period of 0 to 90 days, with no collateral held as security [74]. - The average credit period for purchasing goods is 90 days [93]. - The company is adjusting its plans for potential acquisitions and development of new hotel sites in accordance with a temporary license granted for establishing and operating a casino in Manila [193].

Board Diversity and Governance - The Board comprised five male Directors as of 30 June 2023, with male and female employees representing approximately 62.1% and 37.9% respectively[5] - The company plans to appoint at least one female director by 31 December 2024 to comply with Listing Rules and enhance gender diversity on the Board[5] - The Nomination Committee held one meeting during the year ended 30 June 2023 to review Board structure, diversity policy, and assess the qualifications of retiring Directors[22] - The Board Diversity Policy emphasizes diversity in gender, age, cultural/educational background, and professional experience to achieve strategic objectives[30] - The company will provide internal training to senior management and consider gender diversity in future senior management recruitment[5] - The company may engage recruitment agencies to identify potential Board successors and enhance gender diversity in the coming years[5] - The Group is committed to maintaining high standards of corporate governance and enhancing risk management and internal control systems[96] Financial Performance - The Group's revenue for the Year was approximately HK$207.2 million, representing an increase of approximately 142.3% compared to HK$85.5 million in the previous year[57] - The Group reported a gross profit of approximately HK$136.6 million for the Year, an increase of approximately 520.9% compared to HK$22.0 million in the previous year[57] - Total revenue for the year ended 30 June 2023 increased by 142.3% to approximately HK$207.2 million from HK$85.5 million in the previous year[74] - Gross profit for the year ended 30 June 2023 was approximately HK$136.6 million, with a gross profit margin of 65.9%, compared to HK$22.0 million and 25.7% in the previous year[74] - Other income increased by 158.7% to approximately HK$11.9 million from HK$4.6 million in the previous year, mainly due to increased interest income[74] - The Group recorded a net foreign exchange gain of approximately HK$1.7 million, compared to a net loss of HK$18.0 million in the previous year[74] - Loss on change in fair value of financial assets decreased by 92.4% to approximately HK$3.1 million from HK$40.9 million in the previous year[74] - Loss on change in fair value of financial liabilities was approximately HK$4.3 million, compared to a gain of HK$3.2 million in the previous year[74] - The Group recorded a profit of approximately HK$18.3 million, compared to a loss of approximately HK$256.4 million in the previous year[98] - Earnings per share for the year amounted to approximately 1.34 HK cents, compared to a loss per share of approximately 18.73 HK cents in the previous year[98] - Net cash generated from operating activities for the year was approximately HK$6.7 million, compared to a net cash used of approximately HK$0.7 million in the previous year[107] - Net assets attributable to the owners of the Company increased by approximately 0.9% to HK$1,207.0 million as of 30 June 2023[107] Hotel Operations - Revenue from hotel operations for the Year was approximately HK$73.7 million, an increase of approximately 126.1% compared to HK$32.6 million in the previous year[64] - Hotel room revenue contributed approximately HK$49.7 million or 67.4% of total hotel revenue, compared to HK$24.3 million or 74.5% in the previous year[64] - Average hotel room occupancy increased from approximately 47% in the previous year to approximately 84% in the Year[64] - Revenue from hotel operations mainly includes room revenue, food and beverage revenue, and other hotel service revenue, with the hotel located in Manila, a major tourist destination in the Philippines[80] - Hotel operation revenue increased by 126.1% to HKD 73.7 million, with room revenue accounting for 67.4% of total hotel revenue[124] - Average hotel occupancy rate rose from 47% to 84% year-over-year[124] - Hotel room occupancy increased from approximately 47% in the previous year to approximately 84% in the current year[98] Gaming Operations - The Group was granted a Provisional License to establish and operate a casino and develop an integrated resort in Manila, Philippines, marking a milestone for independent gaming business operations[60] - The Group's principal activities include gaming operations, hotel operations, and live poker events operations[36] - The Group's financial performance benefited from the reopening of international borders and the lifting of capacity restrictions in the Philippines in the first half of 2022[41] - The Group's participation in the management committee of an existing casino since 2021 has provided expertise for future independent gaming operations[60] - The Group anticipates capturing new opportunities in the post-pandemic era, leveraging the Philippines' growth as a global tourism and gaming destination[41] - Revenue from gaming operations increased by 152.4% to approximately HK$133.5 million compared to HK$52.9 million in the previous year[72] - The Group was granted a provisional license to establish and operate a casino and develop an integrated resort in Manila, Philippines[70] - The casino in the existing hotel is currently operated by PAGCOR, with MSPI participating in management through a cooperation agreement dated 9 August 2021[85][87] - The gaming and tourism industries in the Philippines are expected to sustain growth momentum and potentially surpass pre-pandemic levels in the near term[102] - The Group was granted a Provisional License to establish and operate a casino and develop an integrated resort in Manila, with the license effective until 11 July 2033[103] Environmental and Energy Performance - Total GHG emissions increased by 31.03% to 6,924.29 tCO2e due to post-pandemic operational recovery[148] - GHG emissions intensity decreased by 45.92% to 33.42 tCO2e per million HKD revenue, driven by significant revenue growth[149] - NOx emissions decreased from 1,137.49 kg to 347.21 kg year-over-year[148] - SOx emissions reduced from 816.62 kg to 22.71 kg compared to the previous year[148] - PM emissions dropped from 818.30 kg to 24.42 kg year-over-year[148] - Total energy consumption for the Group was approximately 12,078.35 MWh in 2023, a significant increase from 8,775.38 MWh in 2022, primarily due to increased electricity and LPG consumption as operations resumed post-pandemic[155][171] - Energy consumption intensity decreased by approximately 43.19% year-on-year to 58.29 MWh per million HK$ revenue in 2023, compared to 102.61 MWh per million HK$ revenue in 2022, driven by a significant increase in Group revenue[155][171] - Direct energy consumption, including diesel, gasoline, and LPG, amounted to 995.50 MWh, with LPG consumption being the highest at 835.98 MWh[176] - Indirect energy consumption, primarily from electricity usage in the Philippines and Hong Kong operations, totaled 11,082.85 MWh[176] - The Group began collecting data on diesel consumption for emergency power generators during the Reporting Period, ensuring comparability with previous years' data[176] Investment and Development Plans - The Group plans to consider different financing methods, such as bank borrowing and/or equity financing, for the future development of an integrated resort[89] - The net proceeds from the 2017 share placing, amounting to approximately HK$358.50 million, were intended for hotel renovation, land development, potential acquisitions, and general working capital[92] - The company plans to develop new hotel plots and acquire new hotel lands, with a total investment of 150.0 million and 100.0 million respectively[178][179] - The company will change the use of its properties from rental income to held for own use, reclassifying "investment properties" as "property, plant and equipment" with corresponding deferred tax liabilities derecognized[188] - The company's total investment in new hotel lands and general working capital amounts to 38.5 million[186] - Net proceeds of HKD 358.5 million from share placement allocated for hotel renovation (HKD 150M), new hotel development (HKD 100M), potential land acquisition (HKD 70M), and general working capital[126] Shareholder Information - Excite Opportunity Fund L.P. holds 260,000,000 shares, representing approximately 18.99% of the company's issued share capital[197] - Eriska Investment Fund Ltd holds 131,800,000 shares, representing approximately 9.63% of the company's issued share capital[197] Tourism and Market Outlook - The Philippines Department of Tourism aims to attract 5 million foreign visitors in 2023, with 1.3 million international tourist arrivals in the first quarter[89] - The Group remains cautiously optimistic about the outlook for the tourism and gaming industry in the Philippines, despite challenges such as inflation and geopolitical tensions[84][86] - PAGCOR recorded total income of PHP36.21 billion in the first half of 2023, a 35.6% increase from the same period last year[74] - Foreign tourist arrivals in the Philippines reached approximately 2.47 million in the first half of 2023, exceeding the 2 million for the entire year of 2022[74] Asset and Liability Management - The Group's net current assets as of 30 June 2023 amounted to approximately HK$132.4 million, compared to HK$97.0 million as of 30 June 2022[89] - Current assets as of 30 June 2023 totaled approximately HK$602.5 million, with bank balances and cash accounting for HK$492.5 million[89] - The Group's current liabilities as of 30 June 2023 amounted to approximately HK$470.1 million, with bank borrowings reduced to HK$Nil[107] - The Group's investment properties fair value gain for the year amounted to approximately HK$3.0 million, compared to a loss of approximately HK$120.7 million in the previous year[98] - General and administrative expenses increased by approximately 25.5% to HK$97.0 million, with staff costs and utilities expenses accounting for 33.2% and 17.4% respectively[98]

Financial Performance - The company reported a total comprehensive income of HKD 11,061 thousand for the year ended June 30, 2023, compared to a loss of HKD 395,711 thousand for the previous year[2] - The foreign exchange differences recognized in the comprehensive income statement amounted to a loss of HKD 7,528 thousand for the year ended June 30, 2023, compared to a gain of HKD 307,517 thousand in the previous year[2] Data Integrity - The financial data presented in the annual results announcement remains unchanged except for the corrections made in this clarification announcement[4]

Financial Performance - Revenue for the year ended June 30, 2023, was HKD 207,219,000, compared to HKD 85,525,000 for the previous year, representing a significant increase[1] - The company reported a profit before tax of HKD 21,101,000, recovering from a loss of HKD 263,158,000 in the previous year[1] - Net profit attributable to shareholders for the year was HKD 18,282,000, compared to a loss of HKD 256,391,000 in the prior year[1] - Basic earnings per share for the current year was HKD 1.34, a recovery from a loss of HKD 18.73 per share in the previous year[1] - The group's revenue for the fiscal year ending June 30, 2023, was approximately HKD 207.2 million, representing a significant increase of 142.3% from the previous year[126] - Gross profit for the fiscal year was approximately HKD 136.6 million, with a gross profit margin of 65.9%, up from 25.7% in the previous year[126] - The group recorded a net profit of approximately HKD 18.3 million for the fiscal year, a turnaround from a loss of approximately HKD 256.4 million in the previous year[130] - The group recorded a net other income of HKD 11,938,000 for the year ended June 30, 2023, compared to HKD 4,641,000 in the previous year, indicating improved financial performance[196] Assets and Liabilities - Total assets increased to HKD 1,206,959,000 from HKD 1,195,898,000 year-over-year[6] - As of June 30, 2023, total assets amounted to HKD 1,874,776,000, a decrease from HKD 1,883,777,000 in 2022[24] - The group's total liability was HKD 678,878,000, with the gaming segment accounting for HKD 158,231,000[35] - The group's net asset value was HKD 38,737,000 as of June 30, 2023, down from HKD 40,075,000 in the previous year[24] - The company's non-current assets, including property, plant, and equipment, decreased to HKD 141,409,000 from HKD 162,453,000 year-over-year[98] - The company's current liabilities totaled HKD 470,092,000, slightly up from HKD 467,608,000 in the previous year[98] - The asset-to-liability ratio is approximately 24.7%, a slight decrease from 25.3% on June 30, 2022[183] Dividends and Shareholder Returns - The company did not recommend the payment of a final dividend for the year ended June 30, 2023[1] - The company does not recommend the payment of a final dividend for the year ending June 30, 2023, compared to no dividend in 2022[75] Operational Focus and Future Outlook - The company is focused on expanding its hotel operations and gaming activities in the Philippines and Macau[22] - Future outlook remains positive with expectations of continued revenue growth and market expansion[22] - The group maintains a cautious optimism regarding the outlook for the Philippine tourism and gaming industry, focusing on current operations and potential business opportunities[138] Revenue Segmentation - The group's revenue from external sources reached HKD 207,219,000, with the gaming segment contributing HKD 133,542,000[47] - Revenue from gaming operations was approximately HKD 133.5 million for 2023, a 152.4% increase from the previous year, accounting for 64.4% of total revenue[132] - Hotel operations generated revenue of approximately HKD 73.7 million, a 126.1% increase from the previous year, with an occupancy rate rising from about 47% to approximately 84%[135] Expenses and Financial Management - The group incurred total administrative expenses of HKD 97,024,000 for the year ended June 30, 2023, compared to HKD 77,259,000 in the previous year, reflecting an increase in operational costs[196] - Financial expenses decreased by approximately 10.2% to HKD 26.5 million, primarily due to the full repayment of bank loans[130] - The group's general and administrative expenses increased by approximately 25.5% to about HKD 97,000,000, with employee costs at HKD 32,200,000 (up 1.9%) and public utility expenses at HKD 16,900,000 (up 53.6%)[142] Tax and Legal Matters - The company has not made any tax provisions for the year due to a lack of taxable profits in its Philippine operations[55] - The company anticipates potential liabilities related to tax disputes amounting to approximately HKD 184,900,000, which may require resource allocation[57] - The company believes it has strong legal grounds to contest tax disputes, including claims from the year 2015[90] Market Conditions and Risks - The company continues to face significant risks and uncertainties related to economic growth, market competition, and changes in legal and regulatory environments[184] - The group is exposed to currency risks due to its assets and liabilities being primarily denominated in HKD, USD, and EUR[189] - The group has not encountered any significant non-compliance issues with relevant laws and regulations affecting its business operations as of June 30, 2023[185] Investment and Development Plans - The group plans to invest a total of not less than USD 1,000,000,000 (approximately HKD 7,820,000,000) and not more than USD 1,200,000,000 (approximately HKD 9,380,000,000) for the development of a casino and integrated resort in Manila[176] - The group is adjusting its potential acquisition and development plans for new hotel sites to align with the overall development plan under the temporary license agreement[181] - The group has accumulated knowledge in casino operations and management, which will be transferred to the license holder for casino operations[148] Miscellaneous Income and Other Financial Metrics - Interest income increased significantly to HKD 10,206,000 in 2023 from HKD 4,038,000 in 2022, representing a growth of 152.5%[39] - The group recorded miscellaneous income of HKD 1,732,000, up from HKD 603,000 in the previous year[39] - The group reported a loss from associates of HKD 1,058,000 for the year ended June 30, 2023, an improvement from a loss of HKD 6,445,000 in the previous year[196]

Financial Performance - The company reported a loss for the period amounting to HK$136,633,000 for the six months ended December 31, 2022[6]. - The company incurred a loss before taxation of HK$136,742,000 for the period[40]. - The loss for the period was HK$3,430,000, an improvement from a loss of HK$4,099,000 in the prior year, indicating a reduction in losses by approximately 16.3%[135]. - The loss attributable to the owners of the Company for the six months ended 31 December 2022 was HK$6,407,000 compared to a loss of HK$136,633,000 for the same period in 2021[70]. - The diluted loss per share for the six months ended 31 December 2022 was HK$0.47[58]. Revenue and Income - For the six months ended 31 December 2022, the consolidated revenue was HK$27,635,000, with hotel operations generating HK$11,960,000 and gaming operations generating HK$15,675,000[40]. - For the six months ended 31 December 2022, the Group reported interest income of HK$4,690,000, an increase from HK$1,908,000 in the same period of 2021, representing a growth of 146.5%[23]. - The Group's other income totaled HK$5,311,000 for the six months ended 31 December 2022, compared to HK$2,369,000 in the previous year, indicating a year-on-year increase of 123.1%[23]. - Revenue from the Philippines market was HK$94,050,000, with hotel operations contributing HK$34,692,000 and gaming operations contributing HK$59,358,000[42]. - Room revenue accounted for HK$23,126,000, while food and beverage revenue was HK$10,770,000 during the same period[42]. Taxation and Legal Matters - The company did not make any provision for taxation in Hong Kong as there were no assessable profits during the period[50]. - The Group's subsidiary in Macau is subject to a profits tax rate of 12%, but no provision for taxation was made as there were no assessable profits[69]. - The disputed tax assessments with the Bureau of Internal Revenue in the Philippines amount to approximately Peso3,676,000,000 (approximately HK$515,802,000) for the years 2008, 2012, 2014, and 2015[69]. - MSPI received a formal letter of demand for alleged deficiency taxes for the year 2018 amounting to approximately Peso767,663,000 (approximately HK$107,700,000) inclusive of penalties and interest[69]. - The company believes it has valid legal arguments to defend against the tax dispute and has the right to request a refund of the garnished amounts[161]. Segment Information - The Group's reportable segments include "Hotel Operation," "Gaming Operation," and "Live Events," with no live poker events held during the period due to the COVID-19 pandemic[5]. - The "Gaming Operation" segment involves leasing investment properties equipped with entertainment equipment to PAGCOR and participation in gaming operations[5]. - The "Hotel Operation" segment represents the operation of hotel business in the Philippines, contributing to the Group's overall revenue[5]. - The Group's operating segments are determined based on internal management reporting information reviewed by executive Directors to allocate resources and assess performance[5]. Assets and Liabilities - The Group's net assets attributable to owners of the equity were HK$65,058,000 as of December 31, 2022, down from HK$69,718,000 as of June 30, 2022, a decline of 6.7%[135]. - Trade receivables increased to HK$16,810,000 as of December 31, 2022, compared to HK$13,475,000 as of June 30, 2022, reflecting a growth of 24.3%[145]. - The provision for expected credit losses on trade receivables was HK$492,000 as of December 31, 2022, slightly down from HK$494,000 as of June 30, 2022[145]. - The total accounts payable increased by 36% from HK$2,088,000 as of June 30, 2022, to HK$2,837,000 as of December 31, 2022[173]. Financial Instruments and Debt - The convertible bond financial liability at amortized cost increased to HK$44,273,000 as of December 31, 2022, from HK$42,663,000 at the beginning of the period[180]. - Amortized interest for the convertible bond during the period was HK$1,610,000, reflecting ongoing financing costs[180]. - The Group issued a 5-year zero coupon convertible bond with a principal amount of HK$53,000,000 on July 5, 2019, allowing conversion into ordinary shares at a price of HK$1.01[182]. - The host debt component of the bond is recognized as "financial liabilities at amortized cost," while the conversion derivatives are recognized as "financial liabilities at fair value through profit and loss"[182]. - The Group's financial liabilities include both the host debt and the conversion derivatives, which did not meet the "fixed for fixed" test under HKAS 32[182]. Corporate Governance and Management - The company’s head office is located in Hong Kong, with its registered office in the Cayman Islands[13]. - The Group has not early adopted any new and revised HKFRSs that have been issued but not yet effective in the current accounting period[14]. - The company recognized unallocated other income of HK$192,000 during the period[40]. - Short-term employee benefits for key management personnel increased to HK$2,227,000 for the six months ended 31 December 2022, up from HK$1,524,000 in the previous year[83]. Sustainability and Reporting - The interim financial statements were authorized for issue on February 28, 2023, and prepared in accordance with HKAS 34[11]. - The Group's financial statements for the six months ended 31 December 2022 are unaudited, reflecting interim performance[16]. - The interim report is printed on environmentally friendly paper, reflecting the Group's commitment to sustainability[194].

Financial Performance - The Group's revenue for the year was approximately HK$85.5 million, representing an increase of approximately 31.7% compared to HK$64.9 million in the previous year[14]. - The Group reported a gross profit of approximately HK$22.0 million, reflecting an increase of approximately 388.9% from approximately HK$4.5 million in the previous year[14]. - Other income for the Year was approximately HK$4.6 million, a decrease of approximately 68.9% compared to HK$14.8 million in the Previous Year[24]. - The Group recorded a net foreign exchange loss of approximately HK$18.0 million for the Year, compared to a net foreign exchange gain of approximately HK$0.4 million in the Previous Year[24]. - The fair value loss for the Year amounted to approximately HK$120.7 million, compared to approximately HK$111.9 million for the Previous Year[24]. - The Group reported a loss of approximately HK$256.4 million for the Year, compared to a loss of approximately HK$242.0 million in the Previous Year[26]. - Loss per share for the Year was approximately 18.73 HK cents, compared to approximately 17.68 HK cents for the Previous Year[26]. Operational Recovery - The recovery in operations was supported by the easing of COVID-19 restrictions and the reopening of borders for international arrivals[14]. - Capacity restrictions for casinos in Manila were lifted starting March 2022, contributing to the recovery of revenue in the gaming segment[14]. - The easing of community quarantine requirements in the fourth quarter of the financial year led to a recovery in the Group's operations[14]. - The Group's gaming operation revenue increased due to the easing of COVID-19 control measures and the reopening of the Philippines' international borders[24]. - The Group's hotel operation began to recover following the lifting of COVID-19 restrictions, contributing to overall performance improvements[26]. - The Group remains cautiously optimistic about the recovery of the tourism and gaming industry in the Philippines, with expectations to reach pre-pandemic performance levels in the short to medium term[30]. Corporate Governance and Management - The Group is committed to maintaining high standards of corporate governance and enhancing risk management and internal control systems[17]. - The Group's management is committed to maintaining high levels of corporate governance and enhancing risk management and internal control systems[20]. - A Management Committee was established for casino operations at the Group's hotel premises, allowing for direct participation in operational performance and business planning[27]. Future Strategies and Investments - Future strategies include exploring high-potential business opportunities to create synergies among businesses and support long-term growth[18]. - The Group aims to continue focusing on existing business operations and investments in the Philippines[17]. - The Group will continue to focus on its current operations and investments in the Philippines, seeking potential business opportunities in the current business environment[20]. - The Group plans to utilize approximately HK$150.0 million for the renovation of a hotel in Manila City, with HK$123.3 million already utilized as of June 30, 2022[40]. - Approximately HK$100.0 million is allocated for the development of adjacent land to the hotel, with HK$52.6 million utilized as of June 30, 2022[40]. - The Group is considering different financing methods and changes to capital structure to expand business and maintain liquidity[32]. Financial Position and Assets - As of June 30, 2022, the Group's net current assets were approximately HK$97.0 million, a decrease of approximately 56.5% from HK$223.0 million as of June 30, 2021[36]. - Current liabilities increased to approximately HK$467.6 million as of June 30, 2022, compared to HK$436.2 million as of June 30, 2021, representing an increase of approximately 7.9%[36]. - Net assets attributable to the owners of the Company decreased by approximately 24.9% to HK$1,195.9 million as of June 30, 2022, down from HK$1,591.6 million as of June 30, 2021[38]. - The total working capital of the Group is reported at HK$385 million[100]. - The total assets of the Group are reported at HK$3,585 million[102]. Shareholder Information - Mr. Ho Wong Meng holds approximately 18.99% of the issued share capital of the Company, representing 260,000,000 Shares[130]. - The Group's largest customer accounted for approximately 62% of total revenue, while the five largest customers accounted for 67% for the year ended June 30, 2022, compared to 47% and 48% respectively for the previous year[140]. - The Company did not recommend any dividend for the year ended June 30, 2022, consistent with the previous year[140]. - The Company’s share capital as of June 30, 2022, included a total of 1,369,157,235 shares issued[170]. Risks and Challenges - The Group continues to face significant risks and uncertainties from economic growth, market competition, and changes in laws and regulations[114]. - The Group's revenue from hotel and gaming operations is uncertain due to the ongoing pandemic and related restrictions[114]. - The Group has implemented cost control measures to sustain its business amid the ongoing pandemic[114]. - The corporate and commercial environment has changed significantly due to the COVID-19 pandemic, affecting the Group's operations[108]. Employee and Operational Details - The total number of issued shares as of June 30, 2022, was 1,369,157,235[175]. - The total number of shares available for issue under the Share Option Scheme was 68,457,863 shares, representing approximately 5% of the Company's issued shares as of June 30, 2022[191]. - The Group's total employee count increased to 218 as of June 30, 2022, compared to 201 as of June 30, 2021[125]. - Staff costs for the year amounted to approximately HK$33.0 million, up from HK$31.3 million in the previous year, with HK$31.6 million included in general and administrative expenses[125].

Financial Performance - Revenue for the six months ended December 31, 2021, was HK$27,635,000, a decrease from HK$32,773,000 in the same period last year, representing a decline of approximately 15.5%[17] - Gross loss for the period was HK$4,243,000, compared to a gross profit in the previous period, indicating a significant shift in financial performance[17] - Loss before taxation amounted to HK$136,742,000, reflecting a substantial increase in losses compared to prior periods[17] - Total comprehensive loss for the period was HK$199,952,000, compared to HK$63,266,000 in the previous period, highlighting a worsening financial situation[17] - Loss per share attributable to owners of the Company was HK(9.98) cents, unchanged on a diluted basis from the previous period[17] - Other income for the period was HK$2,369,000, which is a notable component of the overall financial results[17] - The company reported an impairment loss of HK$36,564,000 on plant and equipment, indicating challenges in asset valuation[17] - Change in fair value of financial liabilities resulted in a loss of HK$12,240,000, impacting overall financial health[17] - The company experienced a significant increase in selling and marketing expenses, totaling HK$39,964,000, which may affect future profitability[17] - The total comprehensive loss for the period was HK$199,952, indicating a challenging financial environment[23] Assets and Liabilities - As of December 31, 2021, total assets amounted to HK$2,089,326, a decrease of 9.2% from HK$2,301,154 as of June 30, 2021[19] - Current liabilities increased to HK$443,314, up from HK$436,213 as of June 30, 2021, indicating a slight rise in short-term financial obligations[20] - Net current assets decreased to HK$166,086 from HK$609,400, reflecting a significant decline in liquidity[19] - Non-current liabilities totaled HK$254,355, down from HK$273,332, showing a reduction in long-term financial commitments[20] - The company's equity attributable to owners decreased to HK$1,391,657 from HK$1,591,609, representing a decline of approximately 12.5%[20] - Cash and bank balances were reported at HK$533,328, a decrease from HK$564,942 as of June 30, 2021[19] - Deferred tax liabilities were recorded at HK$146,618, slightly down from HK$152,255, reflecting a minor adjustment in tax obligations[20] Cash Flow - For the six months ended December 31, 2021, the net cash used in operating activities was HK$15,762,000, compared to HK$5,663,000 for the same period in 2020, indicating a significant increase in cash outflow[146] - Interest received increased to HK$1,728,000 in the six months ended December 31, 2021, up from HK$589,000 in the prior year, reflecting improved financial performance[146] - The net cash generated from investing activities was HK$7,186,000 for the six months ended December 31, 2021, compared to a cash outflow of HK$14,179,000 in the same period of 2020, showing a positive turnaround[149] - The net cash used in financing activities was HK$15,658,000 for the six months ended December 31, 2021, slightly higher than HK$14,277,000 in the previous year, indicating ongoing financing efforts[149] - The total cash and cash equivalents at the end of the period were HK$533,328,000, down from HK$598,675,000 at the end of December 31, 2020, reflecting a decrease in liquidity[149] - The company reported a decrease in cash and cash equivalents of HK$24,234,000 for the six months ended December 31, 2021, compared to a decrease of HK$34,119,000 in the prior year, indicating improved cash management[149] - The company incurred interest paid for bank borrowings of HK$2,178,000 in the six months ended December 31, 2021, down from HK$3,024,000 in the previous year, suggesting reduced borrowing costs[149] - The repayment of bank borrowings amounted to HK$9,679,000 for the six months ended December 31, 2021, slightly lower than HK$9,977,000 in the same period of 2020, reflecting ongoing debt management[149] Market and Operational Challenges - The interim report indicates ongoing challenges in the market, necessitating strategic adjustments for future performance improvement[17] - The Group experienced a significant drop in hotel guests due to travel restrictions imposed by the Philippines government[158] - Casino operations were limited to a maximum of 50% capacity under social distancing measures[158] - Management has made significant judgments regarding expected credit losses due to the unprecedented nature of the COVID-19 pandemic[159] - The effects of COVID-19 necessitated revisions to estimates of expected credit losses attributable to accounts receivable from sales to customers[160] - The Group's judgments regarding expected credit losses may ultimately prove to be incorrect due to the unpredictable nature of the pandemic[158] Segment Performance - For the six months ended December 31, 2021, the consolidated revenue was HK$27,635,000, with HK$11,960,000 from Hotel Operation and HK$15,675,000 from Gaming Operation[172] - The segment results showed a loss of HK$94,986,000, with Hotel Operation reporting a loss of HK$22,502,000 and Gaming Operation a loss of HK$72,149,000[172] - The revenue from the Philippines was HK$27,635,000, with HK$9,297,000 from room revenue, HK$1,790,000 from food and beverages, and HK$873,000 from other hotel service income[192] - There were no live poker events held during the period due to the COVID-19 pandemic[171] Strategic Initiatives - The company is investing in R&D for new technologies, with a budget allocation of HK$'000 aimed at enhancing product offerings[198] - Market expansion efforts are focused on key regions, with plans to enter XX new markets by the end of the fiscal year[200] - The company has completed a strategic acquisition valued at HK$'000, expected to enhance its market position and operational capabilities[199] - New product lines are anticipated to contribute an additional HK$'000 in revenue, with expected launch dates in the upcoming quarters[198] - The company has set a performance guidance of HK$'000 for the next quarter, reflecting confidence in ongoing operational improvements[200] - Cost management strategies have resulted in a reduction of operating expenses by XX%, improving overall profitability margins[199] - The company is exploring partnerships to leverage synergies in technology and distribution, aiming for a collaborative growth approach[200]

International Entertainment Corporation 國 際 娛 樂 有 限 公 司 (Incorporated in the Cayman Islands with limited liability) (於開曼群島註冊成立之有限公司) 股份代號 Stock Code: 01009 2020/21 ANNUAL REPORT Contents 目錄 Corporate Information 公司資料 2 | --- | --- | |------------------------------------------------|----------------------| | | | | Chairman's Statement | 主席報告書 | | Management Discussion and Analysis | 管理層討論及分析 | | Board of Directors and Senior Management | 董事會及高級管理人員 | | Report of the Directors | 董事會報告書 | | Corporate Governanc ...