Financial Highlights Consolidated Statement of Profit or Loss For H1 2024, revenue grew 23% to HKD 210,743 thousand, operating profit declined 13.6%, and net profit remained stable | Indicator | For the six months ended June 30, 2024 (thousand HKD) | For the six months ended June 30, 2023 (thousand HKD) | Change (%) | | :--- | :--- | :--- | :--- | | Revenue | 210,743 | 171,269 | +23.0% | | Direct Costs | (130,787) | (106,181) | +23.2% | | Gross Profit | 79,956 | 65,088 | +22.8% | | Other Income | 34,824 | 36,906 | -5.6% | | Other Net Income | 6,318 | 3,773 | +67.5% | | Fair Value Gain on Investment Properties | 2,020 | 21,196 | -90.5% | | Distribution and Selling Expenses | (3,877) | (5,297) | -26.8% | | Administrative Expenses | (45,115) | (35,917) | +25.6% | | Other Operating Expenses | (1,690) | (1,864) | -9.4% | | Operating Profit | 72,436 | 83,885 | -13.6% | | Profit Before Tax | 95,617 | 101,131 | -5.4% | | Taxation | (8,137) | (13,140) | -38.1% | | Profit for the Period | 87,480 | 87,991 | -0.6% | | Profit Attributable to Equity Holders of the Company | 89,596 | 90,027 | -0.5% | | Earnings Per Share (HKD) | 0.25 | 0.25 | 0.0% | Consolidated Statement of Profit or Loss and Other Comprehensive Income For H1 2024, total comprehensive income rose 5.5% to HKD 97,750 thousand, mainly from increased revaluation reserves for financial assets | Indicator | For the six months ended June 30, 2024 (thousand HKD) | For the six months ended June 30, 2023 (thousand HKD) | Change (%) | | :--- | :--- | :--- | :--- | | Profit for the Period | 87,480 | 87,991 | -0.6% | | Net Change in Revaluation Reserve for Securities | 10,270 | 4,686 | +119.2% | | Total Comprehensive Income for the Period | 97,750 | 92,677 | +5.5% | | Total Comprehensive Income Attributable to Equity Holders of the Company | 99,866 | 94,713 | +5.4% | Consolidated Statement of Financial Position As of June 30, 2024, total assets less current liabilities, net assets, and total equity all showed modest growth | Indicator | June 30, 2024 (thousand HKD) | December 31, 2023 (thousand HKD) | Change (%) | | :--- | :--- | :--- | :--- | | Non-current Assets | | | | | Investment Properties | 2,490,790 | 2,488,690 | +0.1% | | Interests in Associates | 5,150 | 6,370 | -19.1% | | Interests in Joint Ventures | 673,429 | 700,385 | -3.9% | | Other Financial Assets | 120,853 | 107,189 | +12.7% | | Current Assets | | | | | Inventories | 1,803,028 | 1,802,140 | +0.05% | | Trade and Other Receivables | 183,222 | 164,130 | +11.6% | | Cash and Bank Balances | 1,860,554 | 1,825,434 | +1.9% | | Current Liabilities | | | | | Trade and Other Payables | (198,302) | (212,823) | -6.9% | | Net Assets | 7,008,949 | 6,964,640 | +0.6% | | Total Equity Attributable to Equity Holders of the Company | 7,017,002 | 6,970,577 | +0.7% | Notes to the Financial Statements Basis of Preparation and Changes in Accounting Policies The interim financial report follows HKAS 34 and HKFRS amendments, with no material impact on the Group's financial position - The interim financial report is prepared in accordance with HKAS 34 and complies with the disclosure requirements of the Rules Governing the Listing of Securities on The Stock Exchange of Hong Kong Limited5 - The Group has applied several amendments to HKFRS, including HKAS 1 (Amendments) and HKFRS 16 (Amendments), which had no material impact on the results or financial position for the current or prior accounting periods6 Segment Reporting The Group operates five segments: property development, property investment, ferry/shipyard, healthcare, and securities investment, primarily in Hong Kong - The Group has five reportable segments: property development, property investment, ferry, shipyard and related businesses, healthcare, medical aesthetics and beauty services, and securities investment7 - No geographical segment information is provided as substantially all business revenue and operating profit are derived from Hong Kong7 Overview of Operating Segments - Operating segments include property development (developing and selling properties), property investment (rental income from properties), ferry, shipyard and related businesses (dangerous goods vehicle ferry services, vessel repair, sightseeing cruise sales), healthcare, medical aesthetics and beauty services, and securities investment (dividends, interest, and other income from listed securities)7 Segment Revenue Analysis | Segment | For the six months ended June 30, 2024 (Revenue from external customers, thousand HKD) | For the six months ended June 30, 2023 (Revenue from external customers, thousand HKD) | Change (%) | | :--- | :--- | :--- | :--- | | Property Development | – | 32 | -100% | | Property Investment | 87,045 | 83,773 | +3.9% | | Ferry, Shipyard and Related Businesses | 88,923 | 69,159 | +28.6% | | Healthcare, Medical Aesthetics and Beauty Services | 18,954 | 4,258 | +345.1% | | Securities Investment | 4,185 | 7,719 | -45.8% | | Others | 46,460 | 43,234 | +7.5% | | Total | 245,567 | 208,175 | +17.9% | - Revenue from the healthcare, medical aesthetics and beauty services segment grew significantly by 345.1%, while ferry, shipyard and related businesses revenue increased by 28.6%10 Segment Results Analysis | Segment | For the six months ended June 30, 2024 (Reported segment profit/(loss), thousand HKD) | For the six months ended June 30, 2023 (Reported segment profit/(loss), thousand HKD) | Change (%) | | :--- | :--- | :--- | :--- | | Property Development | (2,966) | 1,833 | -261.8% | | Property Investment | 45,416 | 61,175 | -25.8% | | Ferry, Shipyard and Related Businesses | (2,975) | (3,865) | +23.0% | | Healthcare, Medical Aesthetics and Beauty Services | (17,087) | (17,537) | +2.6% | | Securities Investment | 4,500 | (3,374) | +233.5% | | Total | 26,888 | 38,232 | -29.7% | - The securities investment segment turned from loss to profit, recording a HKD 4,500 thousand profit, an increase of 233.5%12 - Property investment segment profit decreased by 25.8%, mainly due to lower fair value gains on investment properties1213 - Losses from ferry, shipyard and related businesses decreased by 23.0%, and losses from healthcare, medical aesthetics and beauty services also slightly narrowed12 Reconciliation of Reported Segment Profit | Indicator | For the six months ended June 30, 2024 (thousand HKD) | For the six months ended June 30, 2023 (thousand HKD) | | :--- | :--- | :--- | | Reported segment profit from external customers | 26,888 | 38,232 | | Other profit from external customers | 45,548 | 45,653 | | Interest on lease liabilities | (218) | (149) | | Share of profits of associates and joint ventures (net) | 23,399 | 17,395 | | Profit Before Tax in Consolidated Statement of Profit or Loss | 95,617 | 101,131 | - Share of profits of associates and joint ventures (net) significantly increased from HKD 17,395 thousand to HKD 23,399 thousand, a 34.5% increase13 Other Financial Information This section details other net income, profit before tax components, taxation, dividend policy, EPS, and trade receivables/payables Other Net Income | Item | For the six months ended June 30, 2024 (thousand HKD) | For the six months ended June 30, 2023 (thousand HKD) | Change (%) | | :--- | :--- | :--- | :--- | | Fair value changes of other financial assets designated at FVTPL | 3,394 | (4,408) | +177.0% | | Miscellaneous income | 2,632 | 1,962 | +34.1% | | Income from sale of parts | 296 | 481 | -38.4% | | Net (loss)/gain on exchange | (4) | 5 | -180.0% | | Construction cost adjustment | – | 5,239 | -100% | | Gain on lease modification | – | 494 | -100% | | Total | 6,318 | 3,773 | +67.5% | - The fair value change of other financial assets designated at fair value through profit or loss turned from a loss to a gain, which is the primary reason for the significant increase in other net income14 Components of Profit Before Tax | Item | For the six months ended June 30, 2024 (thousand HKD) | For the six months ended June 30, 2023 (thousand HKD) | | :--- | :--- | :--- | | Amortisation of land lease premiums | 685 | 685 | | Cost of inventories | 10,287 | 9,383 | | Depreciation – owned property, plant and equipment | 5,463 | 5,174 | | Depreciation – right-of-use assets | 3,474 | 4,456 | | Dividend income from listed investments | (1,329) | (1,229) | | Interest income | (48,418) | (48,774) | - Interest income and dividend income from listed investments are significant positive contributors to profit before tax15 Taxation | Item | For the six months ended June 30, 2024 (thousand HKD) | For the six months ended June 30, 2023 (thousand HKD) | | :--- | :--- | :--- | | Current tax – Hong Kong Profits Tax provision for the period | 3,427 | 5,479 | | Deferred tax – origination and reversal of temporary differences | 4,710 | 7,661 | | Total Taxation | 8,137 | 13,140 | - Total tax expense decreased by 38.1% year-on-year, mainly due to reductions in Hong Kong Profits Tax provision and deferred tax17 - Hong Kong Profits Tax provision is calculated at an estimated annual effective tax rate of 16.5%, with some subsidiaries applying a two-tiered tax rate (8.25% for the first HKD 2 million of assessable profits)19 Dividends | Dividend Type | For the six months ended June 30, 2024 (thousand HKD) | For the six months ended June 30, 2023 (thousand HKD) | | :--- | :--- | :--- | | Final dividend in respect of prior financial year approved and paid during the interim period (HKD 0.15 per share) | 53,441 | 53,441 | | Interim dividend declared and paid after the interim period (HKD 0.10 per share) | 35,627 | 35,627 | | Special dividend in respect of prior financial year approved and paid during the interim period (HKD 0.00 per share) | – | 356,274 | | Total | 89,068 | 445,342 | - No special dividend was distributed this period, whereas a special dividend of HKD 1.00 per share was distributed in the prior period, leading to a significant decrease in total dividends paid19 Earnings Per Share | Indicator | For the six months ended June 30, 2024 | For the six months ended June 30, 2023 | | :--- | :--- | :--- | | Profit attributable to equity holders (thousand HKD) | 89,596 | 90,027 | | Number of ordinary shares in issue | 356,273,883 | 356,273,883 | | Basic and Diluted Earnings Per Share (HKD) | 0.25 | 0.25 | - Basic and diluted earnings per share remained consistent with the prior period at HKD 0.25, as there were no potentially dilutive ordinary shares during the period19 Trade and Other Receivables | Item | June 30, 2024 (thousand HKD) | December 31, 2023 (thousand HKD) | | :--- | :--- | :--- | | Non-current | | | | Instalment receivables | 84,700 | 88,489 | | Other receivables and prepayments | 2,481 | 2,481 | | Current | | | | Trade receivables (net of loss allowance) | 68,450 | 57,669 | | Instalment receivables | 2,447 | 2,480 | | Other receivables and prepayments | 82,861 | 77,426 | | Amounts due from joint ventures | 31,911 | 29,035 | | Total Current Trade and Other Receivables | 183,222 | 164,130 | | Ageing of Trade Receivables (net of loss allowance) | June 30, 2024 (thousand HKD) | December 31, 2023 (thousand HKD) | | :--- | :--- | :--- | | Current | 39,976 | 30,397 | | Overdue 1 to 3 months | 26,278 | 26,082 | | Overdue over 3 months but less than 12 months | 1,957 | 1,173 | | Overdue over 12 months | 239 | 17 | | Total | 68,450 | 57,669 | - Total current trade receivables increased by 11.6%, with current trade receivables growing by 31.5%2022 - Amounts due from related companies totaled HKD 66,947 thousand, which are unsecured, interest-free, and repayable on demand20 Trade and Other Payables | Ageing of Trade Payables | June 30, 2024 (thousand HKD) | December 31, 2023 (thousand HKD) | | :--- | :--- | :--- | | Current or due within one month | 111,503 | 131,004 | | Due after one month but within three months | 1,002 | 1,265 | | Due after three months but within twelve months | – | – | | Over twelve months | 16 | 2 | | Total | 112,521 | 132,271 | - Total trade payables decreased by 14.9%, primarily due to a reduction in amounts due within one month23 - Amounts due to related companies totaled HKD 23,600 thousand, which are unsecured, interest-free, and repayable within 30-45 days or on demand23 Management Discussion and Analysis Interim Results and Dividends For H1 2024, consolidated net profit after tax and EPS remained stable, with an interim dividend of HKD 0.10 per share | Indicator | For the six months ended June 30, 2024 | For the six months ended June 30, 2023 | | :--- | :--- | :--- | | Consolidated Net Profit After Tax | HKD 87.5 million | HKD 87.5 million | | Earnings Per Share | HKD 0.25 | HKD 0.25 | | Underlying Profit Attributable to Shareholders (excluding fair value changes of investment properties) | HKD 85.5 million | HKD 66.8 million (estimated) | | Interim Dividend (per share) | HKD 0.10 | HKD 0.10 | - Excluding fair value changes of investment properties, the Group's underlying profit attributable to shareholders increased by approximately 28% compared to the prior period24 Business Review Operating profit was driven by property rentals and bank interest, with growth in property investment and healthcare, and reduced ferry losses - The Group's operating profit primarily stems from shop and mall rental income and bank deposit interest, with no borrowings25 Property Development and Investment Business - Gross rental income from shops and malls was HKD 63 million, a 6% year-on-year increase, with high occupancy rates for major shops, including "The Reach," "The Vantage," and "The Avenue," which are fully leased26 - Two residential units were sold in "The Regent" joint venture development, with remaining units and car parking spaces continuing to be offered for sale27 - The "The Shore" redevelopment project has obtained its occupation permit, interior decoration is largely complete, and some units may be converted to rental properties to increase recurring income28 Ferry, Shipyard and Related Businesses - The ferry, shipyard and related businesses recorded a HKD 3 million loss, a 23% year-on-year reduction, benefiting from increased fares for dangerous goods vehicle ferry services and the recovery of the "Bauhinia Victoria Harbour Cruise" business29 Healthcare, Medical Aesthetics and Beauty Services - Revenue for the medical aesthetics brand AMOUR medical aesthetics clinic increased by approximately 280% year-on-year, with prepaid package receipts reaching HKD 12 million30 - The Group is actively expanding its medical specialist business, establishing a cancer center in collaboration with ICON, and operating its own "Comprehensive Medical Specialist Centre," with steadily improving performance30 - Pain management medical services have been launched, introducing advanced medical equipment and a professional team, which has been well-received by customers30 Outlook Global economic uncertainty persists, impacting Hong Kong's residential market, though the rental market remains robust, with government initiatives expected to boost tourism - Global economic uncertainty is heightened by central bank interest rate policy adjustments (ECB, BoE rate cuts; BoJ rate hike) and the US presidential election31 - Hong Kong's residential property market saw increased transactions after demand-side management measures were lifted but has recently softened due to high interest rates; the residential rental index rose approximately 4% year-on-year, expected to continue in H232 - The Hong Kong government's promotion of event economy, increased Individual Visit Scheme cities for mainland visitors, and talent schemes are expected to boost tourism, hotel, catering, and retail sectors, though local catering and retail face challenges from cross-border consumption32 - The Group anticipates that major revenue in H2 will continue to come from shop and mall rentals and bank deposit interest32 Financial Review Group revenue increased 23% to HKD 211 million, driven by ferry and healthcare, with stable net profit, growing shareholder equity, and a strong liquidity ratio Performance Review - For the six months ended June 30, 2024, the Group's revenue was HKD 211 million, a 23% increase from the prior period, primarily due to increased revenue from ferry, shipyard and related businesses and healthcare, medical aesthetics and beauty services32 - The Group's consolidated net profit after tax was HKD 87.5 million, consistent with the prior period32 Liquidity, Financial Resources and Capital Structure - As of June 30, 2024, the Group's shareholder equity increased by approximately 1% to HKD 7 billion from December 31, 2023, mainly due to recognized property lease profits and deducted dividends paid33 - Current assets were HKD 3.847 billion, current liabilities were HKD 227 million, and the liquidity ratio increased to 16.9 times, primarily due to increased trade and other receivables and decreased payables33 Capital and Gearing Ratios and Financial Management - The Group has no bank borrowings, thus no capital and gearing ratios are presented; financing and treasury matters are centrally managed, primarily denominated in HKD34 Employees and Remuneration Policy The Group employed approximately 300 staff as of June 30, 2024, with market-based remuneration and comprehensive benefits - The Group employs approximately 300 staff, with remuneration determined by market trends and industry salary levels35 - Employee benefits include medical insurance, retirement protection schemes, staff training, and education allowances35 Other Information Share Registrar Share transfer registration will be suspended from September 11-12, 2024, to ensure interim dividend entitlement - The company will temporarily suspend share transfer registration on September 11 and September 12, 202436 - To ensure entitlement to the interim dividend, all share transfer documents must be lodged with the share registrar by 4:30 p.m. on September 10, 202436 Dealings in Listed Securities Neither the company nor its subsidiaries engaged in listed securities transactions, and no directors or associates benefited from dealing in shares - Neither the company nor any of its subsidiaries purchased, sold, or redeemed any of the company's listed securities during the review period36 - No directors, chief executives, or their spouses or children under 18 years of age obtained any benefits from purchasing shares, share options, bonds, or warrants of the company or any other body corporate during the period37 Corporate Governance The company upholds high corporate governance, complying with the Listing Rules' Code, with all directors meeting securities transaction standards - The company has complied with the provisions of the Corporate Governance Code as set out in Appendix C1 of the Listing Rules38 - All directors met the required standards set out in the Model Code for Securities Transactions by Directors of Listed Issuers for the six months ended June 30, 202439 - The company has also adopted written guidelines, no less exacting than the Model Code, for relevant employees regarding their dealings in the company's securities39 Committee Reports The Audit Committee reviewed the interim financial report without objection, confirmed by KPMG, and the Remuneration Committee met in May - The Audit Committee has reviewed the unaudited interim financial report for the six months ended June 30, 2024, and has no disagreement40 - The interim financial report was reviewed by KPMG in accordance with Hong Kong Standard on Review Engagements 2410, and an unmodified review report was issued40 - The Remuneration Committee held a meeting in May 2024, comprising three independent non-executive directors and two executive directors41 Forward-Looking Statements and Report Publication This announcement contains forward-looking statements, with actual results potentially differing due to risks, and interim results are published online - Forward-looking statements in this announcement are based on the Board's current beliefs, assumptions, and expectations, and actual results may differ materially due to risks, uncertainties, and other uncontrollable factors43 - The interim results announcement has been published on the company's website (www.hkf.com) and the HKEXnews website (www.hkexnews.hk)[44](index=44&type=chunk) - The company's 2024 interim financial report will be dispatched to shareholders and published on the aforementioned websites in due course44
香港小轮(集团)(00050) - 2024 - 中期业绩