顺豪控股(00253) - 2024 - 中期业绩

Financial Results Results Highlights The Group's net profit before revaluation and depreciation increased, but after fair value losses, it recorded a net loss attributable to owners, reversing from a prior period profit - Net profit attributable to owners before revaluation and depreciation of land, property, and equipment was HKD 30 million, an increase of HKD 6 million (25%) from HKD 24 million in the prior period[1][20] Key Performance Indicators | Indicator | Six Months Ended June 30, 2024 | Six Months Ended June 30, 2023 | | :--- | :--- | :--- | | Profit (Loss) Attributable to Owners of the Company | (HKD 54.034 million) | HKD 3.069 million | | Basic (Loss) Earnings Per Share | (22.35 HK cents) | 1.27 HK cents | Condensed Consolidated Financial Statements This section presents the unaudited condensed consolidated financial statements for the six months ended June 30, 2024, showing increased total revenue but a net loss due to investment property fair value changes, with a shift to a net current liability position Condensed Consolidated Income Statement Total revenue increased by 27.3% to HKD 319.6 million, driven by hotel operations, but a net fair value loss on investment properties led to a current period loss of HKD 106.5 million, reversing from a prior period profit Summary of Consolidated Income Statement (HKD thousands) | Item | 1H 2024 | 1H 2023 | | :--- | :--- | :--- | | Total Revenue | 319,575 | 251,033 | | Gross Profit | 56,890 | 89,637 | | Net Fair Value Loss on Investment Properties | (92,232) | - | | Profit (Loss) Before Tax | (98,835) | 6,983 | | Profit (Loss) for the Period | (106,520) | 1,488 | Condensed Consolidated Statement of Comprehensive Income The period recorded a total comprehensive expense of HKD 120.5 million, a significant contrast to the prior period's total comprehensive income of HKD 54.57 million, primarily due to the net loss and foreign exchange losses from overseas operations - Total comprehensive (expense) income for the period was (HKD 120.5 million), compared to an income of HKD 54.57 million in the prior period, primarily due to the current period's loss and a shift from positive to negative exchange differences on overseas operations[3] Condensed Consolidated Statement of Financial Position As of June 30, 2024, total assets were HKD 9.736 billion, stable from the period start, but liquidity shifted from net current assets to net current liabilities of HKD 92.99 million, primarily due to reduced bank balances and increased current bank loans, with total equity slightly decreasing to HKD 8.358 billion Summary of Statement of Financial Position (HKD thousands) | Item | June 30, 2024 | December 31, 2023 | | :--- | :--- | :--- | | Total Assets | 9,735,651 | 9,858,882 | | Total Liabilities | 1,377,087 | 1,380,854 | | Total Equity | 8,357,564 | 8,478,028 | | Net Current (Liabilities) Assets | (92,988) | 85,107 | Notes to the Financial Statements This section details the basis of preparation, significant accounting policies, and disclosures for key items such as revenue, segment information, finance costs, taxation, and earnings per share, noting consistency with prior year policies and no material impact from new standard amendments Basis of Preparation and Significant Accounting Policies The interim financial statements are prepared in accordance with HKAS 34, with consistent accounting policies and methods as the 2023 annual financial statements, and new HKFRS amendments applied during the period had no material impact on financial position - These condensed consolidated financial statements are prepared in accordance with Hong Kong Accounting Standard 34 "Interim Financial Reporting"[5] - The accounting policies adopted for the current period are consistent with those presented in the 2023 annual financial statements, and newly issued amendments to standards had no material impact on the Group[6][7] Revenue and Segment Information The Group's total revenue is primarily from hotel operations and property rentals, with hotel operating revenue growing 36% to HKD 260 million, driving overall revenue growth; however, the hotel services segment recorded an operating loss, and property investment segment performance significantly declined due to fair value losses on investment properties Analysis of Revenue Sources (HKD thousands) | Revenue Source | 1H 2024 | 1H 2023 | | :--- | :--- | :--- | | Hotel Operating Revenue | 259,757 | 190,509 | | Property Rental Income | 59,818 | 60,479 | | Dividend Income | - | 45 | | Total | 319,575 | 251,033 | Segment Results (HKD thousands) | Segment | 1H 2024 Results | 1H 2023 Results | | :--- | :--- | :--- | | Hotel Services | (1,066) | 30,674 | | Property Investment | (34,276) | 58,918 | | Securities Investment | - | 45 | Notes on Key Financial Items This section provides detailed breakdowns of finance costs, income tax, and earnings per share, noting that finance costs increased to HKD 33.5 million due to higher bank loan interest, resulting in a basic loss per share of 22.35 HK cents for the period - Finance costs increased to HKD 33.5 million from HKD 28.01 million in the prior period, primarily due to higher interest on bank loans[11] - Basic loss per share was 22.35 HK cents, calculated based on the loss attributable to owners of HKD 54.034 million and 241.8 million issued shares[15] Management Discussion and Analysis Management reviewed the period's business performance, highlighting strong hotel revenue growth and over 90% occupancy, while maintaining a robust financial position and low gearing despite economic challenges, and will continue to focus on cost control and revenue enhancement amidst a cautious market outlook Business Review and Performance Hotel business performed strongly with revenue up 36% to HKD 260 million and average occupancy over 90%, while commercial property rental income remained stable at HKD 60 million, and the annual rent for Royal Scot Hotel in London was successfully increased by 34%, expected to contribute in the second half - The Group's hotel operating revenue was HKD 260 million, a 36% increase compared to the prior period[21] - The Group's average hotel occupancy rate consistently exceeded 90%+[28] - The annual rent for the Royal Scot Hotel in London was successfully increased by 34% from GBP 3,546,000 to GBP 4,737,000, with the new rental income to be reflected in the second half of 2024[24][28] Liquidity and Gearing The Group maintains a robust financial structure with total debt of HKD 1.078 billion, and both the gearing ratio (relative to capital employed) at 13% and the gearing ratio (relative to fully revalued net assets) at 7% remained stable from the period start Gearing Ratios | Indicator | June 30, 2024 | December 31, 2023 | | :--- | :--- | :--- | | Total Debt | HKD 1.078 billion | HKD 1.075 billion | | Gearing Ratio (relative to capital employed) | 13% | 13% | | Gearing Ratio (relative to fully revalued net assets) | 7% | 7% | Significant Acquisitions and Outlook During the period, the Group acquired Jessville Manor in Pok Fu Lam, Hong Kong, for HKD 207 million; looking ahead, management anticipates ongoing challenges from a weak Chinese economy, strong Hong Kong dollar, and US-China trade tensions, particularly impacting office property occupancy, and will continue efforts to increase revenue and control costs - On April 15, 2024, the Group acquired Jessville Manor at 128 Pok Fu Lam Road, Hong Kong, for a consideration of HKD 207 million[29] - The future prospects for hotel operations and rental income continue to face challenges, primarily from a weak Chinese economy, the strong Hong Kong dollar, and the impact of the US-China trade war on trade company tenants[30] Other Disclosures This section covers dividend policy, securities transactions, and corporate governance practices, noting the Board's decision not to declare an interim dividend to conserve cash, and the company's compliance with most corporate governance code provisions, despite the Chairman and CEO roles being combined for consistent leadership and cost savings Interim Dividend Given the challenging economic environment, market instability, and high operating costs, the Board decided not to recommend an interim dividend for the six months ended June 30, 2024, to conserve funds and safeguard the Group's cash flow - The Board does not recommend an interim dividend for the six months ended June 30, 2024, consistent with the prior period[19] Corporate Governance The Audit Committee reviewed the unaudited financial results for the period, and the company complied with all Corporate Governance Code provisions, except for the combined roles of Chairman and CEO (held by Mr. Cheng Kai Man), which the Board believes provides strong leadership and cost savings - The Audit Committee has reviewed the Group's unaudited financial results for the six months ended June 30, 2024[34] - The company deviated from Corporate Governance Code provision C.2.1, which states that the roles of Chairman and Chief Executive should not be performed by the same individual; Mr. Cheng Kai Man currently holds both positions, which the Board believes provides strong and consistent leadership[35]