Financial Performance - The group recorded an unaudited profit attributable to shareholders of HKD 6.4 million for the six months ended December 31, 2019, down from HKD 9.68 million in the same period of 2018, representing a decline of 33.3%[7]. - The group's revenue for the interim period was HKD 108.9 million, a decrease of 31.5% compared to HKD 158.9 million in 2018[7]. - The earnings per share for the interim period were HKD 0.0058, down from HKD 0.0887 in 2018, reflecting a significant drop in profitability[7]. - The net profit attributable to shareholders for the same period was HKD 6.46 million, down from HKD 96.86 million in 2018, indicating a decrease of about 93.35%[15]. - The basic earnings per share for the six months ended December 31, 2019, was HKD 0.58 cents, compared to HKD 8.87 cents in the previous year[15]. - The group reported a pre-tax profit of HKD 8.54 million for the six months ended December 31, 2019, significantly lower than HKD 102.78 million in the same period of 2018[15]. - The profit before tax for the six months ended December 31, 2019, was HKD 6,462,389, a significant decrease from HKD 96,862,273 for the same period in 2018, representing a decline of approximately 93.35%[55]. - The total tax expense for the six months ended December 31, 2019, was HKD 2,074,325, down from HKD 5,917,859 in the same period of 2018, reflecting a decrease of approximately 64.92%[53]. Hotel Performance - The number of visitors to Hong Kong decreased by 39.1% to 21 million from 34.5 million in the same period of 2018, impacting hotel business performance[8]. - The occupancy rates for City Garden Hotel, Royal Pacific Hotel, and Kowloon Hotel were 65.1%, 68.8%, and 55.5% respectively, compared to 83.4%, 92.4%, and 90.7% in 2018[8]. - Revenue for City Garden Hotel, Royal Pacific Hotel, and Kowloon Hotel was HKD 93 million, HKD 127 million, and HKD 250.4 million respectively, down from HKD 147 million, HKD 235.6 million, and HKD 411.1 million in 2018[8]. - Room revenue decreased to HKD 51,447,961 from HKD 100,480,000, representing a decline of 48.9% year-over-year[44]. - Food and beverage revenue was HKD 40,876,838, down 10.0% from HKD 45,702,898 in the previous year[44]. - The operating profit for the hotel segment, specifically City Garden Hotel, was HKD 14,262,748, a significant decrease from HKD 52,234,367 in the prior period[47]. - The company did not recognize any impairment for hotel properties as of December 31, 2019, consistent with the previous period[43]. Dividend and Shareholder Information - The board declared an interim dividend of HKD 0.01 per share, payable on April 20, 2020, to shareholders on the register as of March 16, 2020[7]. - The interim dividend declared for the six months ended December 31, 2019, was HKD 1.0 per share, totaling HKD 11,385,031, compared to HKD 4.5 per share and HKD 49,759,479 for the same period in 2018[54]. - The company plans to offer shareholders the option to receive new shares instead of cash for the interim dividend, pending approval from the Hong Kong Stock Exchange[7]. - As of December 31, 2019, major shareholder Huang Zhidai held 550,085,966 shares, accounting for 48.31% of the issued shares[70]. - Huang Zhiqiang, another major shareholder, owned 548,081,635 shares, representing 48.14% of the issued shares[66]. - The company’s weighted average number of shares issued increased to 1,122,651,121 for the six months ended December 31, 2019, from 1,091,614,295 in the same period of 2018, indicating a growth in share capital[55]. Financial Position - As of December 31, 2019, the group had cash and bank deposits of HKD 1.034 billion and no outstanding debts[9]. - The group has maintained a strong financial position with net cash of HKD 1.034 billion, providing a buffer against current adversities[13]. - As of December 31, 2019, total assets decreased to HKD 4,606,357,728 from HKD 4,755,743,091 as of June 30, 2019, representing a decline of approximately 3.13%[17]. - Total equity attributable to shareholders as of December 31, 2019, was HKD 4,600,528,862, down from HKD 4,752,110,639 as of June 30, 2019, reflecting a decrease of approximately 3.19%[18]. - The company’s current liabilities increased to HKD 67,936,987 as of December 31, 2019, compared to HKD 52,166,879 as of June 30, 2019, marking an increase of about 30.3%[17]. - The company’s total liabilities increased to HKD 1,005,374,626 as of December 31, 2019, compared to HKD 1,052,888,511 as of June 30, 2019, reflecting a decrease of about 4.5%[19]. - The company’s retained earnings increased to HKD 2,217,500,537 as of December 31, 2019, from HKD 2,211,038,148 as of June 30, 2019, showing a slight growth[18]. Compliance and Governance - The company has established a Remuneration Committee to formulate and recommend remuneration policies for all directors and senior management, ensuring transparency and regular meetings[74]. - The Nomination Committee is responsible for reviewing the board's structure and composition, ensuring alignment with the company's corporate strategy, and evaluating the independence of non-executive directors[75]. - The Audit Committee has reviewed the company's accounting policies and practices, ensuring effective financial reporting and risk management[76]. - The company has complied with all provisions of the Corporate Governance Code during the six months ending December 31, 2019, although the roles of Chairman and CEO are currently held by the same individual[79]. - The company has adopted a customized Securities Trading Code for directors, ensuring compliance with standards that meet or exceed the benchmark code[78]. - The company has established a Compliance Committee to enhance corporate governance, meeting bi-monthly to review compliance with ongoing connected transactions[77]. - The company has appointed independent non-executive directors to various committees, ensuring diverse perspectives in decision-making[75]. Environmental and Social Responsibility - The group has actively engaged in corporate social responsibility initiatives, including food donation programs and support for underprivileged communities[11]. - The group has focused on environmental management, including the installation of 72 solar panels at the City Garden Hotel to promote renewable energy[10]. - The group has implemented various employee training programs to enhance service quality and maintain competitiveness in the industry[9]. Accounting Standards and Financial Reporting - The group continues to adopt the Hong Kong Financial Reporting Standards applicable to its operations, ensuring compliance and accuracy in financial reporting[7]. - The company has adopted new and revised Hong Kong Financial Reporting Standards, including HKFRS 16 "Leases," which has replaced HKAS 17 "Leases" and related interpretations[22]. - The application of HKFRS 16 has resulted in significant changes in accounting policies, particularly in the definition and recognition of leases[23]. - The company recognizes right-of-use assets at the lease commencement date, measured at cost less any accumulated depreciation and impairment losses[25]. - Lease liabilities are recognized at the present value of unpaid lease payments at the lease commencement date, using the incremental borrowing rate if the implicit rate is not determinable[28]. - The company applies exemptions for short-term leases and low-value asset leases, recognizing lease payments on a straight-line basis over the lease term[24]. - The company has not identified any significant impact on its financial performance or position from the application of the new standards during the reporting period[22]. - The company’s financial position as of July 1, 2019, reflected adjustments due to the application of HKFRS 16, impacting both non-current and current assets and liabilities[40].
SINO HOTELS(01221) - 2020 - 中期财报