Financial Performance - For the six months ended June 30, 2023, the group recorded a loss attributable to shareholders of HKD 243.7 million, compared to a profit of HKD 137.3 million in the same period of 2022[9]. - For the six months ended June 30, 2023, the company recorded a consolidated loss attributable to shareholders of HKD 762.6 million, compared to a profit of HKD 138.3 million in the same period of 2022[47]. - The group recorded a net loss attributable to shareholders of HKD 651.7 million for the six months ended June 30, 2023, compared to a profit of HKD 298.9 million in the same period last year[93]. - The group’s net loss attributable to shareholders, excluding fair value changes and depreciation, was HKD 234.4 million during the review period[20]. - The core business of the company recorded a loss of HKD 14.8 million during the period, primarily due to a significant increase in financing costs from bank loans linked to the Hong Kong Interbank Offered Rate (HIBOR) which surged since the second quarter of this year[51]. - The company reported a significant increase in dividends received from non-listed investments to HKD 4.7 million from HKD 0.8 million, a rise of 487.5%[126]. - The total revenue for the six months ended June 30, 2023, was HKD 1,602.7 million, a decrease of 45.0% compared to HKD 2,915.0 million for the same period in 2022[184]. Hotel Operations - The average hotel occupancy rate in Hong Kong increased from 63.0% in 2022 to 80.0% in 2023, with average room rates rising by 25.3%, leading to a 59.1% increase in RevPAR year-on-year[22]. - The hotel business underperformed expectations due to the slow recovery of flight numbers and overall commercial activity around the airport, impacting the performance of the hotel operated by the company[50]. - The hotel property in Mong Kok has officially opened in April 2023, featuring 1,208 rooms and sustainable design certifications[102]. - Rental income from hotel properties was HKD 23.6 million, slightly up from HKD 22.2 million year-on-year[184]. Property Development and Sales - The company sold or contracted to sell a total of 20 garden houses and 53 apartment units, with total sales amounting to HKD 4,299.3 million, including 17 garden houses and 47 apartment units sold during the review period[42]. - The company plans to continue gradually launching the sale of remaining properties, including 3 garden houses and 83 apartment units, which hold significant sales value[42]. - The group has sold nearly all residential units in the Chengdu project, but the sales progress for the commercial complex is relatively slow[109]. - Revenue from property development and investment reached HKD 764.7 million, while hotel operations generated HKD 708.1 million, contributing to a total customer contract revenue of HKD 1,514.3 million[162]. Financial Position - The total asset value adjusted for the hotel property portfolio in Hong Kong was HKD 51.15 billion, with a debt-to-asset ratio of 34.0%[88]. - The group’s total liabilities as of June 30, 2023, amounted to HKD 17,391.6 million, compared to HKD 17,132.5 million at the end of 2022[115]. - The total equity attributable to shareholders was HKD 18,681.6 million, down from HKD 17,783.0 million, reflecting a decrease of approximately 4.8%[122]. - The retained earnings as of June 30, 2023, were HKD 4,333.3 million, down from HKD 4,065.5 million, indicating a decrease of about 6.2%[122]. - The company’s bank borrowings decreased from HKD 7,929.2 million to HKD 5,906.4 million, a reduction of approximately 25.6%[144]. Cash Flow and Financing - The group reported a net cash flow of HKD 367.2 million for the period, compared to HKD 360.8 million in the previous year[87]. - The net cash flow from operating activities for the six months ended June 30, 2023, was HKD 367.2 million, compared to HKD 360.8 million for the same period in 2022, reflecting a slight increase of 1.1%[126]. - The net cash flow used in investing activities was HKD (32.2) million for the six months ended June 30, 2023, compared to HKD 5.8 million for the same period in 2022, indicating a significant decrease in cash flow from investments[126]. - The net cash flow used in financing activities was HKD (678.6) million for the six months ended June 30, 2023, compared to HKD (1,226.2) million for the same period in 2022, showing an improvement in cash flow management[126]. Market Conditions - The economic activity in China rebounded in early 2023, with GDP growth estimated at 5.5% year-on-year for the first half of the year[21]. - The property market in China showed a moderate rebound in the first quarter of 2023, benefiting from the government's supportive policies, but the momentum did not sustain into the second quarter due to weak export trade and domestic consumption[57]. - The company remains optimistic about the future outlook, supported by a solid business foundation established over the years[35]. - The company is optimistic about the recovery of the Hong Kong tourism and hotel market, expecting its hotel operations to continue contributing stable income[60]. Other Developments - The group is currently undertaking a commercial/residential redevelopment project in Hong Kong, indicating ongoing market expansion efforts[55]. - The group is exploring alternative business and redevelopment plans for a historical heritage property due to recent market changes[105]. - The group is in discussions with government departments regarding a proposal that combines development and conservation of historical heritage[73]. - The group has initiated the pre-sale of residential units, with some units being converted for rental purposes due to changing market conditions[75]. - The group employs approximately 1,810 staff, with overall compensation levels in line with market standards[119].
世纪城市国际(00355) - 2023 - 中期财报