Revenue and Financial Performance - Revenue decreased by 5% to HKD 377.6 million in 2024 compared to HKD 396.2 million in 2023 due to a lack of blockbuster films[6] - Group's consolidated revenue decreased by 5% to HKD 377.6 million in 2024 from HKD 396.2 million in 2023, with total attendance decreasing by 6%[13] - Group's gross profit decreased by 11% to HKD 227.6 million in 2024 from HKD 256.6 million in 2023[13] - Group's film distribution and production revenue increased by 143% to HKD 43.2 million in 2024 from HKD 17.8 million in 2023[11] - Group's net loss attributable to equity holders was HKD 81 million in 2024, compared to a loss of HKD 24.4 million in 2023[14] - Revenue from continuing operations for the six months ended June 30, 2024, was HK$396,202 thousand, compared to HK$377,564 thousand in the same period last year[24] - Gross profit for the six months ended June 30, 2024, increased to HK$256,635 thousand from HK$227,634 thousand in the previous year[24] - The company reported a loss from continuing operations of HK$364,021 thousand for the six months ended June 30, 2024, compared to a loss of HK$29,868 thousand in the same period last year[24] - Total loss for the period ended June 30, 2024, was HK$81,048 thousand, compared to a loss of HK$24,350 thousand in the previous year[24] - Basic and diluted loss per share from continuing operations was HK$13.00 for the six months ended June 30, 2024, compared to HK$1.07 in the same period last year[25] - Total comprehensive loss for the six months ended June 30, 2024, was HK$114,404 thousand, compared to a loss of HK$22,215 thousand in the previous year[27] - The company's revenue from continuing operations for the six months ended June 30, 2024, was HKD 410,006,000, compared to HKD 418,265,000 in the same period in 2023[46] - The company's pre-tax loss from continuing operations for the six months ended June 30, 2024, was HKD 30,511,000, compared to a pre-tax profit of HKD 13,104,000 in the same period in 2023[46] - The company's pre-tax comprehensive loss for the six months ended June 30, 2024, was HKD 357,076,000, compared to a loss of HKD 23,309,000 in the same period in 2023[46] - Pre-tax loss for the six months ended June 30, 2024 was HKD 364,021 thousand, compared to HKD 29,868 thousand for the same period in 2023[57] - Total revenue for the period was HKD 1,461,306 thousand[31] Cinema Operations and Market Performance - The company closed one cinema in Hong Kong, reducing the number of screens by 2, resulting in 8 cinemas and 33 screens in Hong Kong as of June 30, 2024[9] - The company's cinema portfolio in Singapore maintained a dominant market share of 52% of the local box office[8] - Box office revenue in Hong Kong decreased by 26.6% to HKD 58 million in 2024 from HKD 79 million in 2023[9] - The average ticket price in Hong Kong decreased from HKD 71 in 2023 to HKD 64 in 2024[9] - The company's 360 theater in Suzhou, which opened in late 2023, underperformed, leading to an impairment loss of HKD 313.3 million[7] - Total admissions in Hong Kong and Singapore decreased by 6% to 3.3 million in 2024 from 3.5 million in 2023[8] - The company's cinema business remains the primary revenue source, contributing 90% of total segment revenue[8] - Hong Kong cinema attendance decreased from 1.1 million in the first half of 2023 to 900,000 in the first half of 2024, leading to a 27% drop in box office revenue from HKD 79 million to HKD 58 million[10] - Average ticket price in Hong Kong decreased from HKD 71 in 2023 to HKD 64 in 2024 to attract customers back to cinemas[10] - Singapore cinema attendance decreased by 3% from 2.44 million in 2023 to 2.36 million in 2024, with net box office revenue dropping 6% from SGD 30.4 million to SGD 28.5 million[11] - Average net ticket price in Singapore decreased by 3% from SGD 12.5 in 2023 to SGD 12.1 in 2024[11] - The company plans to cautiously seek high-quality film distribution projects in Hong Kong and explore opportunities to minimize operating losses in the region[17] - In Singapore, the group aims to transform existing cinemas into integrated lifestyle hubs and introduce creative products such as toy merchandise[17] - In mainland China, the group has signed cooperation agreements with local governments in Suzhou and Xi'an to operate four theaters, combining advanced European stage technology with global talent to present unique live performances[17] - The group believes that cinemas offer a unique immersive experience and plans to develop them into comprehensive lifestyle centers featuring blockbuster movies, trendy cultural products, dining, and live events to enhance future competitiveness[18] - Fixed lease payments for cinemas in Hong Kong for the six months ended June 30, 2024 were HKD 24,886 thousand, with variable payments of HKD 520 thousand[61] - Fixed lease payments for cinemas in Singapore for the six months ended June 30, 2024 were HKD 40,852 thousand, with variable payments of HKD 3,126 thousand[61] Asset and Liability Management - The company sold its 35.69% stake in Vieshow for a total consideration of TWD 1,249,047,485, recognizing a gain of HKD 28.56 million[6] - Group's cash and bank balances increased to HKD 421.6 million in 2024 from HKD 160.3 million in 2023[14] - Group's net assets stood at HKD 1.3382 billion as of June 30, 2024[14] - Cash and cash equivalents increased to HKD 680 million as of June 30, 2024, compared to a net debt of HKD 279.1 million as of December 31, 2023, due to the sale of the group's joint venture shares, generating a non-recurring net income of HKD 285.6 million[15] - The group's asset-liability ratio remained stable at 13.0% (December 31, 2023: 12.8%), and the net asset-liability ratio improved to 0.2% (December 31, 2023: 8.1%)[15] - The cash-to-bank borrowing ratio improved significantly to 101.6% (December 31, 2023: 36.5%), indicating a reasonable financial leverage ratio[15] - The group has no significant contingent liabilities or off-balance sheet debt as of June 30, 2024[16] - The group recorded a net loss of HKD 81.048 million for the six months ended June 30, 2024, with a net current liability of HKD 334.209 million, including immediate bank loans of HKD 414.859 million[23] - The group's cash and cash equivalents, along with pledged deposits, totaled HKD 421.648 million as of June 30, 2024, which may not be sufficient to meet future working capital, capital expenditure, and financing requirements[23] - Non-current assets decreased to HK$2,640,024 thousand as of June 30, 2024, from HK$3,157,276 thousand as of December 31, 2023[28] - Current liabilities increased to HK$886,636 thousand as of June 30, 2024, from HK$554,945 thousand as of December 31, 2023[29] - Total equity attributable to the company's shareholders decreased to HK$1,339,391 thousand as of June 30, 2024, from HK$1,462,552 thousand as of December 31, 2023[30] - Retained earnings stood at HKD 261,790 thousand, with a decrease of HKD 81,048 thousand[31] - Exchange reserve was HKD 50,026 thousand, with a decrease of HKD 33,390 thousand[31] - Reserve fund remained stable at HKD 3,134 thousand[31] - Share premium was HKD 771,749 thousand[31] - Net cash generated from operating activities was HKD 96,221 thousand[35] - Net cash from investing activities was HKD 287,924 thousand, primarily due to proceeds from the sale of a joint venture amounting to HKD 294,250 thousand[35] - Net cash used in financing activities was HKD 117,318 thousand, mainly due to repayment of bank loans and lease payments[35] - Cash and cash equivalents increased by HKD 266,827 thousand, reaching HKD 388,987 thousand as of June 30, 2024[36] - The company's net current liabilities amounted to HKD 334,209,000 as of June 30, 2024, primarily due to the reclassification of HKD 414,859,000 in bank loans as current liabilities[39] - Cash and cash equivalents, along with pledged bank deposits, totaled HKD 421,648,000 as of June 30, 2024[39] - The company sold 35.69% of its equity in a joint venture in Taiwan for a total consideration of NT$1,249,835,000, recognizing a gain of approximately HK$285,575,000 from the sale[63] - The company reclassified the remaining 0.02% equity in the joint venture as other financial assets, and the joint venture's performance is now classified as discontinued operations[63] - Trade receivables as of June 30, 2024, amounted to HK$38,089,000, up from HK$18,562,000 as of December 31, 2023[68] - Cash and cash equivalents increased to HK$388,987,000 as of June 30, 2024, compared to HK$124,773,000 as of December 31, 2023[69] - Bank loans due within one year or on demand amounted to HK$414,859,000 as of June 30, 2024, down from HK$439,384,000 as of December 31, 2023[70] - Trade payables as of June 30, 2024, totaled HK$95,099,000, up from HK$73,582,000 as of December 31, 2023[72] - The company's capital commitments in Mainland China as of June 30, 2024, amounted to HKD 132,328 thousand, compared to HKD 141,720 thousand as of December 31, 2023[80] - The company provided bank guarantees of HKD 454,450,000 as of June 30, 2024, down from HKD 511,110,000 as of December 31, 2023, with HKD 418,210,000 utilized by subsidiaries[82] - The company's contingent liabilities include a remaining consideration of RMB 252,207,000 (USD 37,384,000) from the sale of a subsidiary, which is subject to ongoing legal disputes[84] Corporate Governance and Shareholder Information - The interim financial report was prepared in accordance with Hong Kong Accounting Standards and was reviewed by KPMG[37] - The company recorded a loss of HKD 81,048,000 for the six months ended June 30, 2024[39] - The company's revenue from external customers in Hong Kong, Mainland China, Singapore, and Taiwan is detailed in the segment reporting[42][43] - The company's segment revenue and performance are monitored based on adjusted post-tax operating performance, excluding financial expenses, exchange differences, and non-recurring items[43] - Financial expenses for the six months ended June 30, 2024 were HKD 19,616 thousand, compared to HKD 18,648 thousand for the same period in 2023[48] - Employee costs (excluding director remuneration) for the six months ended June 30, 2024 were HKD 55,765 thousand, compared to HKD 52,768 thousand for the same period in 2023[48] - Impairment loss on fixed assets and development costs related to 360 theaters in mainland China was HKD 313,333 thousand for the six months ended June 30, 2024[52] - Total tax expense for the six months ended June 30, 2024 was HKD 6,945 thousand, compared to HKD 6,559 thousand for the same period in 2023[53] - The company acquired property, plant, and equipment with a cost of HKD 11,100 thousand for the six months ended June 30, 2024, compared to HKD 62,086 thousand for the same period in 2023[62] - The weighted average number of ordinary shares outstanding for the six months ended June 30, 2024 was 2,799,669,050[56] - The company generated additional costs of HK$621,000 for film copyrights during the period, compared to HK$20,022,000 in the same period last year[65] - Film copyright amortization was HK$522,000, down from HK$1,013,000 in the same period last year[65] - The company did not recommend the payment of an interim dividend for the six months ended June 30, 2024[77] - The company's short-term employee benefits and post-employment benefits for key management totaled HKD 7,973 thousand for the six months ended June 30, 2024, compared to HKD 8,313 thousand for the same period in 2023[86] - The company incurred rental and management fees of HKD 1,209 thousand with a related party for the six months ended June 30, 2024[88] - The total number of issued shares as of June 30, 2024, is 2,799,669,050 shares[90] - Mr. Wu Dangbo holds 1,998,578,497 shares, representing 71.39% of the total issued shares[90] - Mainway Enterprises Limited, wholly owned by Mr. Wu, holds 1,432,858,549 shares, representing 51.18% of the total issued shares[93] - Orange Sky Entertainment Group (International) Holdings Limited, in which Mr. Wu holds an 80% stake, holds 565,719,948 shares, representing 20.21% of the total issued shares[93] - No interim dividend was recommended for the six months ended June 30, 2024[97] - The company has 279,966,905 shares available for issuance under the share option plan as of June 30, 2024[92] - The company complied with the Corporate Governance Code except for provisions C1.6 and F2.2[98] - Independent non-executive directors Ms. Huang Siying and Mr. Feng Zhiwen were unable to attend the 2024 Annual General Meeting due to other work commitments[98] - Chairman Mr. Wu Kebo was unable to attend the 2024 Annual General Meeting due to other official duties[98] - The company confirmed that all directors complied with the Model Code for Securities Transactions during the period ended June 30, 2024[99] - The interim report for 2024 was released by Orange Sky Golden Harvest Entertainment (Holdings) Limited on August 29, 2024[101] - The company's registered office is located at Unit 2101, YF Life Tower, 33 Lockhart Road, Wan Chai, Hong Kong[103] - The company's website is accessible at http://www.osgh.com.hk[103]
橙天嘉禾(01132) - 2024 - 中期财报