丽新国际(00191) - 2024 - 中期财报

Revenue and Financial Performance - Revenue attributable to the company's owners decreased to (1,116,646) from (818,604) in the previous period[4] - Total revenue for the six months ended January 31, 2024, was HK$60,952,834 thousand, a decrease of 3.0$62,861,465 thousand for the same period in 2023[18] - Net loss for the period was HK$2,112,685 thousand, compared to a net loss of HK$1,623,937 thousand in the previous year, representing a 30.1% increase in losses[21] - Other comprehensive expenses for the period were HK$153,137 thousand, up 51.1$101,327 thousand in the previous year[22] - Total comprehensive expenses for the period amounted to HK$2,265,822 thousand, a 31.3$1,725,264 thousand in the prior year[22] - The net loss attributable to the company's owners for the six months ended January 31, 2024, was approximately HKD 1.1166 billion, compared to HKD 818.6 million in the same period last year[137] - Reported loss attributable to owners increased to HKD 1,116.6 million, partly due to investment property revaluation adjustments[114] - Group revenue increased by 22.8% to HKD 3,086.9 million, driven by growth in leasing, property sales, hotel, and media businesses[112] - Property development and sales revenue surged by 54.0% to HKD 924.6 million, reflecting strong performance in this segment[113] - Total revenue from customer contracts reached HK$2,534,718,000, with property sales contributing HK$924,597,000 and hotel operations generating HK$622,996,000[58] - Rental income from other sources amounted to HK$552,223,000, bringing the total revenue to HK$3,086,941,000[58] - Total revenue for the six months ended January 31, 2024, was HKD 673.3 million, compared to HKD 608.4 million for the same period in 2023[168] Assets and Liabilities - Non-current assets totaled 58,857,832, a decrease from 60,496,827 in the previous period[7] - Current assets amounted to 15,593,272, down from 16,525,194 in the previous period[7] - Total equity attributable to the company's owners was 17,102,573, compared to 19,455,113 in the previous period[9] - Cash and cash equivalents decreased to 2,987,834 from 3,709,057 in the previous period[7] - Unrestricted cash and bank balances stood at 2,556,168, down from 3,300,036 in the previous period[14] - The company's total assets as of January 31, 2024, were HK$74,451,104 thousand, a decrease of 3.3% from HK$77,022,021 thousand as of July 31, 2023[18] - Total liabilities as of January 31, 2024, were HK$37,893,418 thousand, a slight decrease of 0.8% from HK$38,202,239 thousand as of July 31, 2023[18] - The company's equity attributable to owners decreased by 4.7$10,336,361 thousand as of January 31, 2024, from HK$10,773,356 thousand as of July 31, 2023[18] - Total current liabilities increased to HKD 11,162,495,000 from HKD 6,784,450,000, primarily driven by higher bank loans and lease liabilities[24] - Net current assets decreased to HKD 5,362,699,000 from HKD 8,808,822,000, reflecting a significant rise in current liabilities[24] - Total non-current liabilities rose to HKD 31,108,968,000 from HKD 27,039,744,000, mainly due to increased bank loans and secured notes[24] - The group's total cash and bank deposits as of January 31, 2024, stood at HKD 4.503 billion, with undrawn financing of HKD 5.638 billion[136] - The group's net gearing ratio as of January 31, 2024, was approximately 135$1.58 per share, raising net proceeds of approximately HK$447,100,000[49] - Interest on bank loans increased to HKD 760,754 thousand in the six months ending January 31, 2024, compared to HKD 490,431 thousand in the same period in 2023[62] Taxation and Accounting Standards - Hong Kong profits tax provision is calculated at a rate of 16.5$2,000,000 and 16.5% on the remaining taxable profits[40] - Current period tax expenses in Hong Kong amounted to HK$11,549,000, while in Mainland China, corporate income tax and land value-added tax expenses totaled HK$247,398,000[41] - The company adopted new and revised Hong Kong Financial Reporting Standards, with no significant impact on financial performance or position[17] Property and Leasing Business - Hong Kong office and retail leasing business showed significant growth due to tenant mix optimization and property renovations[83] - Residential projects at 116 Waterloo Road and 1 & 1A Kotewall Road are under pre-construction, with planned total gross floor areas of 46,600 sq. ft. and 55,200 sq. ft. respectively[84] - The Wong Chuk Hang Station Phase 5 residential project is expected to be completed by Q4 2025, with a gross floor area of approximately 71,600 sq. ft.[84] - All 144 residential units at Yat Sing have been sold, with 6 parking spaces remaining unsold as of March 22, 2024[85] - Bal Residence project completed construction in October 2023, with 47 units sold as of March 22, 2024, at an average price of HKD 15,454 per square foot[101] - The entire 209 residential units and 7 commercial units of Xi Zuo have been sold, with parking spaces generating HKD 10.2 million in sales[102] - Lifestyles Group's rental portfolio in China, covering 5.9 million square feet, saw improved rental income despite economic slowdown challenges[105] - The group's leasing business recorded a revenue of HKD 673.3 million during the review period, with contributions from Hong Kong, London, and Mainland China properties amounting to HKD 289 million, HKD 34.1 million, and HKD 350.2 million respectively[120] - 75 parking spaces at Blue Cove were sold, generating total sales proceeds of approximately HKD 204.1 million[125] - The second phase of the Hengqin Innovation Square project is under construction, with planned commercial and experiential entertainment facilities, office spaces, and serviced apartments covering 355,500 sq. ft., 1,585,000 sq. ft., and 578,400 sq. ft. respectively[128] - Approximately 83% of the leasable area in the first phase of Hengqin Innovation Square has been leased, with major tenants including Liongate Entertainment World and National Geographic Explorer Center[128] - The group sold non-residential properties and parking spaces at the second phase of Wellon Centre for HKD 80 million to optimize its capital structure[135] - The group's total attributable gross floor area of properties under development and completed properties is approximately 4.93 million sq. ft., with significant holdings in Hong Kong, Mainland China, and overseas[141] - Hong Kong rental income increased by 10.1% to HKD 289.0 million, with notable growth in Changsha Bay Plaza (+9.2%), Causeway Bay Plaza Phase II (+11.9%), and Lai Sun Commercial Centre (+18.1%)[143] - London rental income decreased by 6.3% to HKD 34.1 million, with significant declines at Leadenhall Street 107 (-35.0%) and Leadenhall Street 106 (-75.9%)[143] - Mainland China rental income rose by 13.1% to HKD 350.2 million, driven by strong performance at Shanghai Hong Kong Plaza (+0.2%) and Guangzhou Mayflower Commercial Plaza (+7.8%)[143] - Total rental income across all regions increased by 10.7% to HKD 673.3 million, reflecting overall growth in the company's property portfolio[143] - Changsha Bay Plaza's rental income grew to HKD 143.2 million, with a 55.60% equity interest and a total gross floor area of 643,703 square feet[145] - Causeway Bay Plaza Phase II rental income increased to HKD 67.9 million, with a 55.60% equity interest and a total gross floor area of 206,038 square feet[145] - Joint venture projects in Hong Kong, including China Construction Bank Tower and Blue Pool Court, contributed HKD 69.0 million in rental income[150] - The company's joint venture with China Construction Bank generated rental income of approximately HKD 114.6 million, with a 50% equity interest[151] - The joint venture with Empire Group for Blue Pool Court generated rental income of approximately HKD 23.4 million, with a 50% equity interest[151] - The company's total rental income in London, when converted to GBP, decreased by 11.6% to GBP 3.461 million[152] - The London property portfolio's rental revenue decreased by 11.6% in GBP terms during the review period, with the average GBP exchange rate appreciating by approximately 5.9%[172] - The Shanghai Hong Kong Plaza generated HKD 134.7 million in revenue, with retail contributing HKD 83.4 million and office space contributing HKD 48.2 million[167] - The Guangzhou Mayflower Commercial Plaza recorded HKD 49.6 million in revenue, with retail contributing HKD 43.0 million and office space contributing HKD 4.9 million[168] - The Shanghai Mayflower Life Plaza generated HKD 20.3 million in revenue, with retail contributing HKD 18.1 million[167] - The Shanghai Kaixin Haoyuan recorded HKD 8.8 million in revenue, with retail contributing HKD 8.5 million[167] - The Shanghai Lifeng Skyline Center generated HKD 23.1 million in revenue, with retail contributing HKD 2.7 million and office space contributing HKD 19.4 million[168] - The Guangzhou Lifeng International Center recorded HKD 17.3 million in revenue, with retail contributing HKD 3.6 million and office space contributing HKD 12.4 million[168] - The Zhongshan Palm Rainbow Garden Rainbow Hui Mall generated HKD 2.6 million in revenue[168] - The total rental revenue from the London investment portfolio was HKD 6.7 million, with the Leadenhall Street 107 property contributing HKD 2.0 million[167] - The 27-story office building in Central, Hong Kong, has a total gross floor area of 229,206 square feet (excluding parking spaces), with 19 office floors and 1 banking hall leased to China Construction Bank for its Hong Kong operations[177] - The Innovation Square project in Hengqin has an 83% occupancy rate for the first phase of the commercial area, with major tenants including Liongate Entertainment World® and Hengqin National Geographic Explorer Center[190] - The London property at Leadenhall Street 100 has a total internal area of 177,700 square feet and is fully leased to Chubb Market Company Limited[196] - The proposed redevelopment of the Leadenhall property in London will include approximately 1,059,525 square feet of office space and 57,827 square feet of new retail space, with a total internal area of 1,296,029 square feet upon completion[198] - The property in Guangzhou has a retail area of approximately 182,300 square feet, fully owned by Lai Fung Group, with tenants including well-known restaurants and local retail brands[186] - The property in Shanghai's Hong Kong Plaza is strategically located in the Huangpu District, with convenient access to public transportation and proximity to Xintiandi[181] - The property in Zhongshan has a total gross floor area of approximately 181,100 square feet, serving as a community retail facility[188] - The property in London at Leadenhall Street 106 has a total internal area of 19,924 square feet and is currently vacant[197] - The property in Hong Kong's Causeway Bay has a total gross floor area of 206,038 square feet, with major tenants including HSBC and prominent restaurants[194] - The property in Hong Kong's Lai Chi Kok has a total gross floor area of 643,703 square feet, serving the local community with major tenants including large banks and well-known chain restaurants[193] Investments and Joint Ventures - Interest income from loans to joint ventures amounted to HK$53,143,000, while film screening income from joint ventures reached HK$1,336,000[51] - The company's joint venture with China Construction Bank generated rental income of approximately HKD 114.6 million, with a 50% equity interest[151] - The joint venture with Empire Group for Blue Pool Court generated rental income of approximately HKD 23.4 million, with a 50% equity interest[151] - The company's joint venture with China Construction Bank generated rental income of approximately HKD 114.6 million, with a 50% equity interest[151] - The joint venture with Empire Group for Blue Pool Court generated rental income of approximately HKD 23.4 million, with a 50% equity interest[151] Market and Economic Conditions - Global GDP growth slowed due to geopolitical tensions, tight financial conditions, and weak trade growth, with high interest rates expected to persist[82] - Office leasing market remains weak due to cautious tenants and reduced demand from multinational and Chinese companies, leading to rising vacancy rates and suppressed rents[99] Management and Personnel - Total remuneration for key management personnel decreased to HKD 32,704 thousand for the six months ending January 31, 2024, from HKD 37,422 thousand in the previous year[90] Fair Value and Financial Instruments - Fair value losses on financial assets increased to HKD 13,385,000 from HKD 9,256,000[36] - Lease modification gains were recorded at HKD 28,959,000, compared to none in the previous period[36] - The fair value of financial assets is determined using significant observable inputs such as spot exchange rates, volatility, and risk-free rates[77] - The fair value of equity interests in other investee companies is determined using the Black-Scholes option pricing model[78] - The capitalization ratio increased to 2.90% as of January 31, 2024, compared to 2.85% as of July 31, 2023[80] - The equity value volatility ranged from 53.74% to 66.83% as of January 31, 2024, compared to 56.21% to 83.40% as of July 31, 2023[80] - The expected exit time for financial assets measured at fair value through profit or loss ranged from 1.8 to 3.5 years as of January 31, 2024[80] - The average monthly market rent per square foot for financial assets measured at fair value through other comprehensive income was HKD 134 as of January 31, 2024[80] - Fair value of financial assets classified as Level 3 increased to HKD 1,953,866 thousand as of January 31, 2024, from HKD 1,915,642 thousand as of July 31, 2023[93] - The fair value of equity in an investment company classified as Level 3 is estimated using the income approach, based on discounted cash flow projections[94] - The fair value of financial assets is influenced by higher market rental rates per square foot and higher equity value volatility[96] Dividends and Shareholder Returns - No interim dividend declared for the fiscal year ending July 31, 2024, consistent with the previous year[82] Media and Entertainment - Two new cinemas opened in Hong Kong, enhancing the company's cinema network and market position[107] - Strategic alliance formed with Alibaba's cultural and entertainment group for co-production and investment in films and TV series[109] Depreciation and Amortization - Depreciation of property, plant, and equipment decreased to HKD 211,478,000 from HKD 183,458,000[36] - Depreciation expenses of approximately HK$335,926,000 were included in the unaudited condensed consolidated income statement under "Other operating expenses"[59] Exchange Rates and Foreign Currency - Net exchange differences improved to a loss of HKD 50,259,000 from a gain of HKD 25,799,000[36] - The London property portfolio's rental revenue decreased by 11.6$334,645,000, with HK$239,348,000 not yet due or overdue for less than 30 days[45] - Trade rece