HKR INT'L(00480)2024-12-04 09:04Financial Performance - For the six months ended September 30, 2024, the company's revenue was HKD 852.5 million, a decrease of 73.0% compared to HKD 3,157.1 million in the same period last year[10]. - The company recorded a loss attributable to shareholders of HKD 474.3 million, a decline of HKD 592.0 million from a profit of HKD 117.7 million in the previous year[10]. - Gross profit for the same period was HKD 299.4 million, down 73.1% from HKD 1,110.7 million year-on-year[113]. - The group reported a loss before tax of HKD 490.3 million, compared to a profit of HKD 461.5 million in the previous year[113]. - The net loss for the period was HKD 540.0 million, a significant decline from a profit of HKD 115.6 million in the prior year[113]. - Basic and diluted loss per share was HKD 31.9 cents, compared to earnings of HKD 7.9 cents per share in the same period last year[113]. - The group experienced a significant increase in financial expenses, totaling HKD 210.4 million, compared to HKD 189.9 million in the previous year[113]. - The group reported a net loss of HKD 152.7 million after excluding unrealized gains or losses from investment properties, compared to a profit of HKD 192.2 million in the same period last year[160]. - The group's attributable profit for the period was HKD (474.3) million, a significant decrease from HKD 117.7 million in the previous year, indicating a decline of 503%[160]. Revenue Breakdown - The revenue from property development was HKD 187.1 million, while property investment generated HKD 269.7 million, and hotel operations contributed HKD 99.3 million[141]. - The revenue from customer contracts totaled HKD 628.7 million, with HKD 187.1 million from property development and HKD 269.7 million from property investment[141]. - The group's performance in the Hong Kong market accounted for HKD 705.2 million of the total revenue, while the mainland China market contributed HKD 106.9 million[141]. - The total segment revenue from property development, property investment, transportation services, hotel operations, and leisure activities was HKD 2,077.1 million[147]. - The total rental income reported was HKD 223.8 million, with HKD 220.6 million coming from property investment[141]. Asset and Liability Management - Total assets increased to HKD 43,029.2 million from HKD 42,126.8 million year-on-year, while total liabilities rose to HKD 17,097.1 million from HKD 15,508.0 million[7]. - As of September 30, 2024, the group held total bank balances and cash of HKD 2,228.2 million, up from HKD 1,605.8 million as of March 31, 2024, while net debt stood at HKD 9,343.8 million, compared to HKD 9,021.4 million previously[55]. - The capital debt ratio as of September 30, 2024, was 40.3%, an increase from 38.6% on March 31, 2024, indicating a rise in leverage[59]. - The average financing cost for the period was 5.7%, compared to 5.5% in the same period last year, reflecting a slight increase in borrowing costs[60]. - The group’s shareholder equity decreased by HKD 149.1 million to HKD 23,209.2 million as of September 30, 2024, from HKD 23,358.3 million as of March 31, 2024[58]. - The total amount of standby loans as of September 30, 2024, was HKD 16,611.0 million, down from HKD 17,611.0 million as of March 31, 2024, with 81.9% being committed credit[59]. Property Development and Investment - The property development and investment business generated revenue of HKD 1,030 million, including HKD 573 million from joint ventures and associates[12]. - The property development segment recorded a loss of HKD 240.3 million, a significant decline from a profit of HKD 214.5 million in the same period last year, attributed to a lack of new development projects and a cautious market sentiment[50]. - The property investment segment's performance decreased by 5.7% to HKD 285.1 million, down from HKD 302.2 million, due to a decline in rental income from lower occupancy rates and rental renewals[51]. - The company is advancing the "Discovery Bay 2.0 Blueprint," which will add over 1.3 million square feet of gross floor area and over 1,400 residential units by Q1 2026[13]. - The company plans to develop a new high-end apartment project in Jiaxing, China, with a plot ratio of 2.1, having obtained planning and construction permits in March 2024[18]. Market and Sales Strategies - The company is implementing targeted sales strategies for residential projects in Shanghai and Hangzhou amid a recovering market environment[18]. - 71% of units in Xing Yun Jian, Shanghai, were sold by September 30, 2024, after sales commenced in January 2024[19][23]. - All sold units in Yao Xian Li, Hangzhou, began delivery to buyers in April 2024[19]. - In Tai Po Lin Hai Shan Cheng, 72 out of 262 units were sold, resulting in sales revenue of HKD 402.8 million, with 16 units sold during the period[20]. Occupancy Rates and Property Management - The average occupancy rate for Yujing Plaza and Yujing North Mall was 78.8% during the period, reflecting a slight impact from market conditions[24]. - The average occupancy rate for Tsuen Wan Chung Yip Building was approximately 91.6% during the period, despite challenging market conditions[24]. - The average occupancy rate for Hong Kong Industrial Centre was 81.7% during the period, indicating a competitive leasing environment[29]. - The group is enhancing its property management services, receiving recognition for sustainable development and safety initiatives[32]. Hotel Operations - The hotel business segment reported an overall loss of HKD 30.7 million, compared to a loss of HKD 15.2 million in the same period last year, with occupancy rates affected by changing consumer behavior and increased competition[53]. - The Hong Kong Discovery Bay Hotel actively participated in trade fairs and overseas sales roadshows, expanding its wedding business and enhancing family accommodation experiences[36]. - The Shanghai Sukothai Hotel achieved high occupancy rates and strong price growth by establishing strategic market positioning and offering personalized accommodation experiences[37]. - The Sukhothai Bangkok's occupancy and revenue growth slowed due to oversupply in the Bangkok hotel market, despite significant upgrades to guest rooms and pool facilities[38]. - The new luxury spa facility, The Sukhothai Spa, is set to officially open in August 2024, marking an important milestone for luxury hotels in Bangkok[39]. Corporate Governance and Compliance - The company is committed to good corporate governance, adhering to the principles of the corporate governance code[89]. - The company has adopted the standard code of conduct for securities trading as per the listing rules, ensuring compliance by all directors[94]. Future Outlook and Strategic Initiatives - The group plans to focus on sustainable business development and strategic growth initiatives, including future residential projects and enhancing surrounding commercial and leisure facilities[46]. - The group aims to maintain a prudent approach to market monitoring and seek value-added opportunities while adhering to strict risk management strategies[47]. - Future outlook includes potential market expansion and new product development strategies[126].