Revenue and Profit Performance - Revenue for the six months ended September 30, 2023, was HKD 125,427 thousand, compared to HKD 118,089 thousand in the same period last year[16] - Net profit attributable to shareholders was HKD 18,098 thousand, a significant increase from HKD 2,821 thousand in the prior year[16] - Net profit for the six months ended September 30, 2023, was HK$27,579 thousand, compared to HK$11,818 thousand in the same period last year, representing a significant increase[38] - The group's revenue for the six months ended September 30, 2023, increased by 6.2% to HKD 125,400,000 compared to HKD 118,100,000 in the same period last year[112] - The group's net profit for the six months ended September 30, 2023, was HKD 27,600,000, compared to HKD 11,800,000 in the same period last year[112] - Total revenue for the period was HKD 125,427 thousand in 2023, up from HKD 118,089 thousand in 2022[80] - Profit before tax decreased to HKD 8,705 thousand in 2023 from HKD 19,473 thousand in 2022[80] Operating Profit and Earnings - Operating profit for the period was HKD 86,602 thousand, up from HKD 81,247 thousand in the previous year[16] - Earnings per share for the period were HKD 1.57, compared to HKD 0.24 in the same period last year[16] - The group's operating profit for the six months ended September 30, 2023, increased by 6.7% to HKD 86,600,000 compared to HKD 81,200,000 in the same period last year[112] Assets and Liabilities - Total assets as of September 30, 2023, were HKD 11,116,561 thousand, slightly down from HKD 11,140,635 thousand as of March 31, 2023[19] - Total liabilities decreased to HKD 2,441,898 thousand from HKD 2,469,122 thousand as of March 31, 2023[19] - The company's total equity and liabilities stood at HKD 11,116,561 thousand as of September 30, 2023[19] - The company's total assets as of September 30, 2023, were HK$11,116,561 thousand, slightly lower than HK$11,140,635 thousand as of March 31, 2023[47] - The company's total liabilities as of September 30, 2023, were HK$2,441,898 thousand, compared to HK$2,467,075 thousand as of March 31, 2023[47] - Total assets decreased slightly from HKD 11,140,635 thousand in 2022 to HKD 11,116,561 thousand in 2023[53] - The company's equity attributable to shareholders was HK$8,668 thousand as of September 30, 2023[38] - The company's equity in associates decreased to HKD 861,752 thousand as of September 30, 2023, from HKD 917,744 thousand as of March 31, 2023[92] - Supreme Key Limited's net asset value decreased to HKD 740,451 thousand as of September 30, 2023, from HKD 896,814 thousand as of March 31, 2023[97] - The company's investment in associates had a carrying amount of HKD 1,873,580 as of September 30, 2023[190] Cash Flow and Financial Activities - Cash and bank balances dropped from HKD 262,773 thousand in 2022 to HKD 214,873 thousand in 2023, a decrease of 18.2%[53] - Net cash used in financing activities increased significantly from HKD 29,343 thousand in 2022 to HKD 56,773 thousand in 2023[59] - Operating cash flow from business activities decreased to HKD 69,454 thousand in 2023 from HKD 81,870 thousand in 2022[78] - Net cash used in investing activities was HKD 61,432 thousand in 2023, compared to a net cash inflow of HKD 11,492 thousand in 2022[78] - The group's cash and bank balances as of September 30, 2023, were HKD 214,900,000, compared to HKD 262,800,000 as of March 31, 2023[115] - Cash and cash equivalents decreased to HKD 205,926 thousand as of September 30, 2023, from HKD 254,706 thousand as of March 31, 2023[94] Investments and Associates - The company's equity in associates was HKD 222,135 thousand, representing 30.0% of the associates' net assets[11] - The company's investment in associates was HK$2,594,524 thousand as of September 30, 2023, slightly higher than HK$2,584,702 thousand as of March 31, 2023[47] - The group's investment in Supreme Key Limited had a total investment cost of HKD 1,784,449,000 as of September 30, 2023, compared to HKD 1,718,656,000 as of March 31, 2023[105] - The group's investment in the Shanghai Xianle Plaza property recorded a fair value loss of HKD 2,900,000 as of September 30, 2023, compared to a loss of HKD 19,700,000 in the same period last year[113] - The company's hotel investments are made entirely through associates[192] Financial Instruments and Risk Management - The company's financial instruments are classified into three levels based on the observability of fair value measurement parameters[23] - The company's financial risk management policies and procedures remained unchanged from the previous year[46] - The company's financial liabilities are denominated in HKD, with investments in Thailand, China, and Japan valued at HKD 350,700,000, HKD 217,600,000, and HKD 99,600,000 respectively as of September 30, 2023[141] Dividends and Shareholder Equity - The company did not recommend any interim dividend for the period ended September 30, 2023[2] - The company's board of directors does not recommend the payment of any interim dividend for the six months ended September 30, 2023[197] - The company's total equity interests held by directors and their families amounted to 45.81% for Wu Wang Jingyi, 10.17% for Wu Jitai, and 1.79% for Wu Yanan[145] Interest and Financing - Interest paid more than doubled from HKD 21,169 thousand in 2022 to HKD 56,590 thousand in 2023[59] - Bank loan interest expenses rose significantly to HKD 56,761 thousand in 2023 from HKD 21,922 thousand in 2022[87] - The group's bank loans as of September 30, 2023, were HKD 2,281,000,000, with HKD 300,000,000 at fixed interest rates and the remainder at floating rates[116] - The group's actual annual interest rate on bank loans as of September 30, 2023, was 5.80%, compared to 4.10% as of March 31, 2023[109] - Total bank borrowings as of September 30, 2023, amounted to HKD 2,281,000,000, with HKD 1,263,500,000 due within one year[174] - The company's total debt to total assets ratio was 20.5%, and the net debt to total assets ratio was 18.6% as of September 30, 2023[174] Property and Rental Income - Investment properties increased marginally from HKD 7,903,300 thousand in 2022 to HKD 7,928,400 thousand in 2023[54] - Rental income from property leases increased from HKD 94,135 thousand in 2022 to HKD 96,020 thousand in 2023[76] - Revenue from property management services increased to HKD 20,153 thousand in 2023 from HKD 16,773 thousand in 2022[87] - The occupancy rate of Kin Sang Plaza in Hong Kong increased to 76% in September 2023 from 58% in September 2022, contributing rental and related income of HKD 24,000,000 and a fair value increase of HKD 10,000,000[125] - The property at 68 Yee Wo Street, Causeway Bay, Hong Kong, with a 60% stake, achieved an occupancy rate of 86% in September 2023, up from 81% in September 2022, generating rental and related income of HKD 49,800,000 and a fair value increase of HKD 3,000,000[125] - The commercial platform at 115-119 Queen's Road West, Sai Ying Pun, Hong Kong, maintained a 100% occupancy rate, contributing rental and related income of HKD 10,600,000 and a fair value increase of HKD 4,000,000[126] - The company's investment property in Central Hong Kong, the Western Club Building (80,100 sq. ft.), maintained a stable occupancy rate of 96%, contributing rental and related income of HKD 30,700,000 and a fair value increase of HKD 10,000,000 for the six months ended September 30, 2023[191] - The company's investment in Taikoo Shing Centre Phase 3 (half) and Phase 4, with a total gross floor area of 792,780 sq. ft., recorded a fair value loss of HKD 4,000,000 due to the decline in valuations in the Hong Kong office sector[195] Comprehensive Income and Expenses - Other comprehensive expenses for the period were HK$24,429 thousand, a decrease from HK$104,912 thousand in the previous year[38] - Total comprehensive income for the period was HK$3,150 thousand, a significant improvement from a loss of HK$93,094 thousand in the same period last year[38] - The company's total tax expense for the six months ended September 30, 2023, was HKD 18,874,000, compared to HKD 7,655,000 for the same period in 2022[188] - The company's total deferred tax liabilities decreased by HKD 20,835,000 for the six months ended September 30, 2023, compared to an increase of HKD 1,883,000 for the same period in 2022[188] Employee Costs and Compensation - Employee costs (including directors' remuneration) rose from HKD 6,162 thousand in 2022 to HKD 6,799 thousand in 2023, an increase of 10.3%[76] - The company's salary and bonus policies ensure competitive compensation for its 18 employees as of September 30, 2023[175] Guarantees and Commitments - The company guaranteed HKD 1,879,800,000 in bank financing for a subsidiary as of September 30, 2023[156] - The company's total guarantees and commitments amounted to HKD 1,910,445 as of September 30, 2023, including guarantees for utilized bank financing of subsidiaries and future minimum lease payments for land and buildings[200] - The company's total guarantees for utilized bank financing of subsidiaries remained unchanged at HKD 1,879,800 as of September 30, 2023[200] International Operations and Investments - The Shanghai Jia Hua Center in China, with a 7.7% stake, had a 94% occupancy rate and recorded a profit of HKD 4,900,000 before exchange differences[127] - The three commercial buildings in Tokyo, Japan, with a 5.1% stake, had occupancy rates of 78%, 91%, and 100%, and recorded a loss of HKD 11,100,000 due to yen depreciation[127] - The Pullman Bangkok Hotel G in Thailand, with a 49.5% stake, recorded revenue of THB 237,600,000 (HKD 51,700,000) and operating profit of THB 63,600,000 (HKD 13,800,000), with an average occupancy rate of 71%[128] - The Pullman Pattaya Hotel G in Thailand, with a 49.5% stake, recorded revenue of THB 186,300,000 (HKD 40,500,000) and operating profit of THB 58,300,000 (HKD 12,700,000), with an average occupancy rate of 77%[128] - The Regent Hong Kong, with a 30% stake, achieved an average occupancy rate of 55% and an average daily room rate of HKD 4,485, generating revenue of HKD 197,200,000 and an operating loss of HKD 60,700,000[139] - The company's two hotels in Thailand (Bangkok and Pattaya) returned to operating profit and continued to grow, with Thailand's tourism recovering to over 18 million visitors in the first eight months of 2023[151] Market and Economic Outlook - The company is optimistic about the recovery of the luxury hotel industry and expects the Regent Hong Kong's revenue to reach or exceed pre-COVID levels soon, with continued improvement in the performance of Thai hotels[140] - The company's financial performance is influenced by global economic uncertainties, geopolitical challenges, and high-interest rates, with no immediate growth drivers replacing the financial sector in Hong Kong[173] Shareholdings and Subsidiaries - The company's total number of ordinary shares outstanding is not explicitly stated, but significant shareholdings include Eternity Rich Investments Ltd. with 20,699,216 shares and Prosperous Island Limited with 97,324,936 shares[178][181] - The company's subsidiary, Supreme Key Limited, invested in the renovation of The Regent Hong Kong (formerly The InterContinental Hong Kong), which partially reopened in December 2022[163] Accounts Receivable and Payables - The company's accounts receivable, advances, and prepayments totaled HKD 26,477,000 as of September 30, 2023, primarily consisting of rental income[150] - The group's total payable accounts and other payables as of September 30, 2023, were HKD 46,686 thousand, compared to HKD 57,905 thousand as of March 31, 2023[101] Capital Expenditures and Investments - Capital expenditures decreased significantly from HKD 7,897 thousand in 2022 to HKD 719 thousand in 2023[73] - Investment properties with a carrying value of HKD 7,852,100,000 were pledged as collateral for bank loans of HKD 2,281,000,000[155] Interest Income and Expenses - Interest income surged from HKD 1,326 thousand in 2022 to HKD 4,566 thousand in 2023, a 244.3% increase[76] - Interest income from financial assets measured at amortized cost increased to HKD 4,566 thousand in 2023 from HKD 1,305 thousand in 2022[87] Hong Kong and Overseas Revenue - Hong Kong revenue increased to HKD 120,722 thousand in 2023 from HKD 116,734 thousand in 2022, while overseas revenue rose to HKD 4,705 thousand from HKD 1,355 thousand[81]
建生国际(00224) - 2024 - 中期财报