冠忠巴士集团(00306) - 2024 - 中期业绩

Company Profile and Interim Results Announcement Company Profile Kwoon Chung Bus Holdings Limited is a Bermuda-incorporated company primarily engaged in bus and transportation services in Hong Kong and Mainland China - Kwoon Chung Bus Holdings Limited is incorporated in Bermuda with its principal place of business in Chai Wan, Hong Kong[21] - The Group's main activities include non-franchised bus, franchised bus, public light bus, limousine, hotel, and tourism services[22] Interim Results Overview The company announced its unaudited condensed consolidated results for the six months ended September 30, 2023, which have been reviewed by the Audit Committee - The Board of Directors announced the unaudited condensed consolidated results for the six months ended September 30, 2023, with comparative figures for the same period in 2022[2] - The condensed consolidated interim financial information is unaudited but has been reviewed by the Company's Audit Committee[2] Condensed Consolidated Financial Statements Condensed Consolidated Statement of Profit or Loss The Group's revenue grew significantly by 45.7% to HK$893,308 thousand, achieving a turnaround to a profit of HK$9,455 thousand from a prior-period loss Key Financial Performance | Indicator | Six months ended Sep 30, 2023 (in thousands of HKD) | Six months ended Sep 30, 2022 (in thousands of HKD) | | :--- | :--- | :--- | | Revenue | 893,308 | 613,155 | | Cost of services provided | (712,860) | (612,836) | | Gross Profit | 180,448 | 319 | | Other income and gains, net | 54,591 | 125,084 | | Administrative expenses | (139,106) | (119,044) | | Other expenses, net | (10,522) | (7,942) | | Finance costs | (59,829) | (38,218) | | Profit/(Loss) before tax | 19,646 | (40,494) | | Income tax expense | (10,191) | (13,413) | | Profit/(Loss) for the period | 9,455 | (53,907) | | Attributable to owners of the parent | 5,514 | (42,681) | | Non-controlling interests | 3,941 | (11,226) | - For the six months ended September 30, 2023, revenue increased by 45.7% year-over-year to HK$893,308 thousand (2022: HK$613,155 thousand)[6] - The Group recorded a profit for the period of HK$9,455 thousand, a significant turnaround from the loss of HK$53,907 thousand in the prior-year period[6] Condensed Consolidated Statement of Comprehensive Income The Group recorded a total comprehensive loss of HK$6,502 thousand, as the period's profit was offset by exchange differences from translating foreign operations Comprehensive Income Summary | Indicator | Six months ended Sep 30, 2023 (in thousands of HKD) | Six months ended Sep 30, 2022 (in thousands of HKD) | | :--- | :--- | :--- | | Profit/(Loss) for the period | 9,455 | (53,907) | | Other comprehensive loss: | | | | Exchange differences on translation of foreign operations | (15,957) | (66,558) | | Total comprehensive loss for the period | (6,502) | (120,465) | | Attributable to: | | | | Owners of the parent | (6,143) | (100,939) | | Non-controlling interests | (359) | (19,526) | - For the six months ended September 30, 2023, the total comprehensive loss was HK$6,502 thousand, primarily due to exchange differences on the translation of foreign operations[10][20] Condensed Consolidated Statement of Financial Position As of September 30, 2023, the Group had total assets of HK$4,624,848 thousand and net current liabilities of HK$1,323,645 thousand Financial Position Summary | Indicator | As of Sep 30, 2023 (in thousands of HKD) | As of Mar 31, 2023 (in thousands of HKD) | | :--- | :--- | :--- | | Total non-current assets | 3,714,833 | 3,802,790 | | Total current assets | 910,015 | 941,478 | | Total assets | 4,624,848 | 4,744,268 | | Total current liabilities | 2,233,660 | 992,390 | | Total non-current liabilities | 414,592 | 1,764,410 | | Total liabilities | 2,648,252 | 2,756,800 | | Total equity | 1,976,596 | 1,987,468 | | Net current liabilities | (1,323,645) | (50,912) | - As of September 30, 2023, the Group's current liabilities exceeded its current assets by HK$1,323,645 thousand, mainly due to interest-bearing bank borrowings and contract liabilities payable within 12 months[29] - The directors believe the Group has sufficient working capital to continue as a going concern, considering potential refinancing arrangements and future financial performance[29] Notes to the Financial Statements Corporate Information Kwoon Chung Bus Holdings Limited is a Bermuda-incorporated entity whose immediate and ultimate holding companies are based in the British Virgin Islands - Kwoon Chung Bus Holdings Limited is a limited liability company incorporated in Bermuda with its principal place of business in Chai Wan, Hong Kong[21] - The Group is principally engaged in providing non-franchised bus, franchised bus, public light bus, limousine, hotel, tourism, and other transportation services[22] - The Company's immediate holding company is Kee Shing Limited, and its ultimate holding company is Winner Way International Limited, both incorporated in the British Virgin Islands[22] Basis of Preparation and Changes in Accounting Policies Basis of Preparation The interim financial information is prepared in accordance with HKAS 34 and based on historical cost, with certain assets measured at fair value - The interim condensed consolidated financial information for the six months ended September 30, 2023 has been prepared in accordance with HKAS 34 Interim Financial Reporting issued by the HKICPA[23] - The information is prepared under the historical cost convention, except for buildings, investment properties, and certain financial assets which are measured at fair value[23] - The financial information is presented in Hong Kong dollars and all values are rounded to the nearest thousand unless otherwise indicated[23] Changes in Accounting Policies and Disclosures The Group adopted several new and amended HKFRSs, which did not have a significant impact on its financial position or performance - The Group has applied amendments to HKAS 1 regarding the disclosure of accounting policies, which is expected to affect annual disclosures but not the interim financial information[18] - Amendments to HKAS 8 clarifying the distinction between changes in accounting estimates and policies have been applied prospectively without any impact on the financial position or performance[25] - Amendments to HKAS 12 regarding deferred tax related to a single transaction were applied from April 1, 2022, with no material impact[32] - Amendments to HKAS 12 concerning the Pillar Two model rules introduced a temporary exemption for deferred tax recognition, which has no impact as the Group is not within the scope of these rules[26] Operating Segment Information The Group is organized into five reportable segments, with performance assessed based on adjusted profit/(loss) before tax - The Group has five reportable operating segments: Non-franchised bus, Limousine, Franchised bus and public light bus, Mainland China business, and "Others"[28][33] - Management monitors the results of its operating segments separately for resource allocation and performance assessment, based on reportable segment profit/(loss)[33] Segment Performance for the six months ended Sep 30, 2023 | Segment | Segment Revenue (in thousands of HKD) | Segment Results (in thousands of HKD) | | :--- | :--- | :--- | | Non-franchised bus | 688,598 | 84,166 | | Limousine | 106,141 | (12,091) | | Franchised bus and public light bus | 98,141 | 14,935 | | Mainland China business | 81,160 | (8,122) | | Others | 684 | (1,342) | | Total | 947,899 | 77,546 | Segment Performance for the six months ended Sep 30, 2022 | Segment | Segment Revenue (in thousands of HKD) | Segment Results (in thousands of HKD) | | :--- | :--- | :--- | | Non-franchised bus | 589,806 | 49,251 | | Limousine | 42,338 | (19,248) | | Franchised bus and public light bus | 78,743 | (3,015) | | Mainland China business | 52,136 | (28,222) | | Others | 456 | (1,700) | | Total | 738,239 | (2,934) | Revenue Analysis Total revenue for the period was HK$893,308 thousand, a 45.7% increase driven primarily by revenue from contracts with customers Revenue by Source | Revenue Source | Six months ended Sep 30, 2023 (in thousands of HKD) | Six months ended Sep 30, 2022 (in thousands of HKD) | | :--- | :--- | :--- | | Revenue from contracts with customers | 891,349 | 608,886 | | Gross rental income from operating leases of investment properties | 1,959 | 4,269 | | Total revenue | 893,308 | 613,155 | - For the six months ended September 30, 2023, total revenue was HK$893,308 thousand, an increase of 45.7% from HK$613,155 thousand in the prior-year period[38] - Revenue from contracts with customers, accounting for the vast majority of total revenue, grew by 46.4% to HK$891,349 thousand[38] Profit/(Loss) Before Tax The Group achieved a profit before tax of HK$19,646 thousand, reversing a loss of HK$40,494 thousand from the prior year period Key Items Affecting Profit/(Loss) Before Tax | Indicator | Six months ended Sep 30, 2023 (in thousands of HKD) | Six months ended Sep 30, 2022 (in thousands of HKD) | | :--- | :--- | :--- | | Depreciation of property, plant and equipment | 112,225 | 120,566 | | Depreciation of right-of-use assets | 17,031 | 13,791 | | Amortisation of other intangible assets | 6,294 | 7,067 | | Government grants | (19,608) | (107,190) | | Fair value gains on financial assets at FVTPL | (484) | (473) | | Fair value losses on investment properties | 5,968 | – | | Net impairment of trade receivables | 3,277 | 3,947 | | Loss/(gain) on disposal of items of property, plant and equipment, net | (583) | 103 | - For the six months ended September 30, 2023, the Group recorded a profit before tax of HK$19,646 thousand, compared to a loss of HK$40,494 thousand in the prior-year period[6] - Government grants decreased to HK$19,608 thousand from HK$107,190 thousand, while fair value gains on financial assets at FVTPL were HK$484 thousand (negative figures represent income/gains)[47][59] Income Tax The Group's income tax expense for the period was HK$10,191 thousand, a decrease from HK$13,413 thousand in the prior year period Income Tax Expense Breakdown | Indicator | Six months ended Sep 30, 2023 (in thousands of HKD) | Six months ended Sep 30, 2022 (in thousands of HKD) | | :--- | :--- | :--- | | Current tax expense - Hong Kong | 9,979 | 23,232 | | Under/(over)provision in prior periods - Mainland China | 713 | (6,391) | | Deferred tax | (501) | (3,428) | | Total tax charge for the period | 10,191 | 13,413 | - Hong Kong profits tax is provided at a rate of 16.5% on the estimated assessable profits arising in Hong Kong during the period[48] - One subsidiary qualifies for the two-tiered profits tax rates regime, where the first HK$2,000,000 of assessable profits are taxed at 8.25% and the remainder at 16.5%[48] Dividends The Board of Directors has recommended not to declare an interim dividend for the six months ended September 30, 2023 - The Board of Directors recommends that no interim dividend be paid for the six months ended September 30, 2023 (six months ended September 30, 2022: Nil)[41][55] Earnings/(Loss) Per Share The Group reported basic earnings per share of 1.16 HK cents, a significant improvement from a loss per share of 8.95 HK cents in the prior year period EPS Calculation | Indicator | Six months ended Sep 30, 2023 | Six months ended Sep 30, 2022 | | :--- | :--- | :--- | | Profit/(loss) attributable to ordinary equity holders of the parent | HK$5,514 thousand | (HK$42,681) thousand | | Weighted average number of ordinary shares in issue | 476,776,842 shares | 476,776,842 shares | | Basic earnings/(loss) per share | 1.16 HK cents | (8.95) HK cents | - Basic earnings per share is calculated based on the profit attributable to ordinary equity holders of the parent of HK$5,514,000 (2022: loss of HK$42,681,000) and the weighted average number of 476,776,842 ordinary shares in issue[41] - No adjustment has been made to the basic earnings/(loss) per share amounts presented for the periods ended September 30, 2023 and 2022 as the impact of unexercised share options had no dilutive effect[49] Trade Receivables As of September 30, 2023, the Group's total trade receivables increased to HK$201,447 thousand, with the majority aged within 30 days Aging Analysis of Trade Receivables | Aging | As of Sep 30, 2023 (in thousands of HKD) | As of Mar 31, 2023 (in thousands of HKD) | | :--- | :--- | :--- | | Within 30 days | 130,389 | 81,111 | | 31 to 60 days | 33,704 | 61,030 | | 61 to 90 days | 18,414 | 3,302 | | Over 90 days | 18,940 | 16,394 | | Total | 201,447 | 161,837 | - The Group's trade receivables include amounts due from a joint venture of HK$1,648 thousand and associate companies of HK$10,256 thousand, which are repayable within 90 days[50] - The Group grants an average credit period of 30 to 90 days to its trade debtors and maintains strict control over outstanding receivables, with overdue balances reviewed regularly by senior management[61] Trade Payables As of September 30, 2023, the Group's total trade payables increased to HK$63,069 thousand, with the majority aged within 30 days Aging Analysis of Trade Payables | Aging | As of Sep 30, 2023 (in thousands of HKD) | As of Mar 31, 2023 (in thousands of HKD) | | :--- | :--- | :--- | | Within 30 days | 32,409 | 28,030 | | 31 to 60 days | 7,363 | 6,919 | | 61 to 90 days | 1,079 | 1,683 | | Over 90 days | 22,218 | 20,191 | | Total | 63,069 | 56,823 | - Trade payables are non-interest-bearing and are normally settled on 60-day terms[53] Management Discussion and Analysis Performance Review The Group achieved a turnaround to profitability, driven by the recovery of cross-boundary transport services and strong performance in Mainland China's tourism sector - For the six months ended September 30, 2023, the Group achieved a turnaround to an unaudited consolidated profit attributable to owners of the parent of approximately HK$5.5 million, compared to a loss of approximately HK$42.7 million in the prior-year period[62] - The Group's revenue increased by 45.7% to approximately HK$893.3 million from approximately HK$613.2 million in the same period of 2022[62] - The turnaround was mainly attributable to the steady recovery of cross-boundary transport services, waiver of certain payables by suppliers, strong recovery of tourism in Mainland China, and effective cost control measures[62] - Positive impacts were partially offset by high international fuel prices, increased borrowing costs due to rising HIBOR, and higher labor and maintenance costs from inflationary pressures[63] Business Segment Review Non-Franchised Bus Segment The core non-franchised bus segment revenue grew by 29.7%, driven by the resumption of cross-boundary passenger transport services - Non-franchised bus services, including cross-boundary transport between Mainland China and Hong Kong and local transport, remain the Group's core business[80] - For the six months ended September 30, 2023, revenue from non-franchised bus services was approximately HK$631.5 million, a 29.7% increase from HK$486.8 million in the prior-year period[57] - The revenue increase was primarily due to the recovery in passenger volume following the resumption of cross-boundary transport services on January 8, 2023, after a three-year suspension[57] Limousine Segment The limousine service segment experienced a substantial 424.6% revenue increase due to the recovery of cross-boundary travel and a low prior-year base - The limousine segment provides transfer services for hotel guests, corporate clients, and leisure travelers between Mainland China, Hong Kong, and Macau[81] - For the six months ended September 30, 2023, revenue from limousine services was approximately HK$91.8 million, a 424.6% increase from HK$17.5 million in the prior-year period[58] - The revenue surge was mainly due to the recovery in passenger volume after the resumption of cross-boundary transport services and a low base in the comparative period of 2022[58] Franchised Bus and Public Light Bus Segment This segment's revenue grew significantly, boosted by the resumption of cross-boundary routes and the implementation of new bus fares - The Group operates franchised bus services on Lantau Island and cross-boundary routes through NLB, and a green minibus route through Coronet Development Limited[82] - For the six months ended September 30, 2023, NLB's fare revenue was approximately HK$93.0 million, a 51.7% increase from HK$61.3 million in the prior-year period[68] - The revenue increase was mainly due to the recovery in passenger volume on cross-boundary routes since January 8, 2023, and the implementation of new fares from June 18, 2023[68] - Public light bus services resumed on January 29, 2023, generating fare revenue of approximately HK$0.5 million for the period[68] Mainland China Business Segment The Mainland China business segment saw a 60.8% revenue increase, driven by a strong recovery in domestic tourism - For the six months ended September 30, 2023, revenue from the Mainland China business was approximately HK$75.9 million, a 60.8% increase from HK$47.2 million in the prior-year period, driven by a strong recovery in domestic tourism[83] - The Bipenggou scenic spot remains popular, benefiting from the post-pandemic trend towards health and wellness tourism[70] - The Chongqing Grand Hotel has completed renovations and is moving towards automation to enhance competitiveness and operational efficiency[71] - Hubei Shenzhou is exploring business transformation and has replaced its old diesel public buses with electric buses[73] - The agreement to dispose of the equity interest in Hubei Shenzhou was terminated, with a final court judgment in the Group's favor, and the Board believes this will not have a material adverse impact[74] Future Outlook The Group anticipates performance improvement driven by economic recovery, but faces challenges from high interest rates, inflation, and a driver shortage - The full resumption of socio-economic activities in Hong Kong and the recovery of tourism in Mainland China are key drivers for improving the Group's performance[76] - The Group's financial performance remains susceptible to adverse external factors, including persistently high borrowing rates, inflationary pressures, and the expanding railway network[76] - A driver shortage has constrained operational capacity; the Group has applied for the Labour Importation Scheme for the Transport Sector, with imported labor expected to be in place in the first quarter of 2024[76] - The Group will continue to seize opportunities in the Greater Bay Area and enhance its cross-boundary transport services to drive future profit growth[76] Liquidity and Financial Resources The Group's total outstanding debt decreased, and its gearing ratio improved, with operations funded by internal cash flow and bank borrowings - The Group's operations are mainly financed by internally generated cash flow, supplemented by bank borrowings[77] Debt and Gearing Ratio | Indicator | As of Sep 30, 2023 (in thousands of HKD) | As of Mar 31, 2023 (in thousands of HKD) | | :--- | :--- | :--- | | Total outstanding debt | 1,608,200 | 1,745,200 | | Gearing ratio | 81.4% | 87.8% | - Debts primarily consist of term loans from banks in Hong Kong and Mainland China, used mainly for purchasing capital assets and related investments[77] Financing, Treasury Policy, and Financial Risk Management The Group maintains a prudent financing and treasury policy to minimize financial risks, funding major investments through internal cash flow and bank credit - The Group adopts a prudent financing and treasury policy to minimize its financial risks[78] - All future major investment projects or capital assets are funded by internal cash flow from operations, bank credit, or other available financing options in Hong Kong and/or Mainland China[78] - The Group closely monitors the exchange rate between the Hong Kong dollar and Renminbi and will formulate plans to hedge any significant foreign exchange risk when necessary[85] Employee and Remuneration Policy The Group employed approximately 4,150 staff as of September 30, 2023, with a remuneration policy based on merit and market competitiveness - As of September 30, 2023, the Group employed approximately 4,150 employees in Mainland China, Hong Kong, and Macau (March 31, 2023: 3,950 employees)[79] - The Group's policies on recruitment, employment, remuneration, and promotion are based on employees' qualifications, experience, expertise, performance, and contributions, with salaries offered at market levels[79] - Discretionary year-end bonuses and share options are granted to eligible employees based on Group performance and individual contributions, with continuous on-the-job training provided[79] Other Information Compliance with Corporate Governance Code and Model Code The Company has complied with the Corporate Governance Code and the Model Code for Securities Transactions by Directors throughout the period - The Board considers that the Company has complied with the code provisions of the Corporate Governance Code as set out in Appendix 14 to the Listing Rules throughout the six months ended September 30, 2023[94] - The Company has adopted the Model Code for Securities Transactions by Directors as set out in Appendix 10 to the Listing Rules, and all Directors have complied with the required standard throughout the period[94] Purchase, Sale, or Redemption of the Company's Listed Securities Neither the Company nor any of its subsidiaries purchased, sold, or redeemed any of the Company's listed securities during the period - During the six months ended September 30, 2023, neither the Company nor any of its subsidiaries purchased, redeemed, or sold any of the Company's listed securities[88] Audit Committee The Audit Committee, comprising three independent non-executive directors, has reviewed the Group's interim financial information - The Company's Audit Committee was established in compliance with Rule 3.21 of the Listing Rules to review and supervise the Group's financial reporting process and internal controls[89] - The Audit Committee comprises three independent non-executive directors[89] - The Group's interim condensed consolidated financial information has been reviewed by the Audit Committee[89] Publication of Interim Results This announcement is available on the websites of the HKEX and the Company, with the interim report to be dispatched to shareholders in due course - This announcement is published on the websites of the HKEX (www.hkexnews.hk) and the Company (www.kcbh.com.hk)[90](index=90&type=chunk) - The interim report for the six months ended September 30, 2023, containing all information required by the Listing Rules, will be dispatched to shareholders and published on the respective websites in due course[90] Acknowledgement The Chairman expresses gratitude to the Group's business partners, shareholders, and dedicated employees for their support - On behalf of the Board, the Chairman extends sincere thanks to the Group's business partners, shareholders, and loyal and diligent employees[95] Board Composition As of the announcement date, the Board consists of three executive directors and three independent non-executive directors - As at the date of this announcement, the Board of Directors comprises Mr Wong Leung Pak, Mr Wong Cheuk On, and Mr Lo Man Po as executive directors, and Mr Chan Bing Woon, Mr Fong Man Bun, and Mr Chan Fong Kong as independent non-executive directors[96]