Corporate Information This report outlines Century Sunshine (Group) Holdings Limited's corporate structure, including board members, committee chairs, legal advisors, auditors, and bankers - This report outlines the corporate structure of Century Sunshine (Group) Holdings Limited, including information on board members, chairpersons and members of various committees, principal legal advisors, auditors, and bankers346 - The company's shares are listed on the Stock Exchange of Hong Kong under stock code 000797 Interim Results The interim results highlight the group's financial performance and position, detailing income, financial status, equity changes, and cash flows I. Condensed Consolidated Statement of Comprehensive Income For the six months ended June 30, 2021, group revenue increased by 15% to HKD 18.293 million year-on-year, with loss significantly narrowing by 95% to HKD 1.29 million primarily due to fair value gains on financial assets 2021 Half-Year Key Financial Performance | Metric | 2021 Half-Year (HKD Thousands) | 2020 Half-Year (HKD Thousands) | Year-on-Year Change | | :--- | :--- | :--- | :--- | | Revenue | 18,293 | 15,919 | +15.0% | | Gross Profit | 6,343 | 5,838 | +8.6% | | Fair value gains/(losses) on financial assets at fair value through profit or loss | 5,198 | (17,950) | N/A | | Loss for the period | (1,290) | (27,913) | -95.4% | | Loss for the period attributable to owners of the Company | (337) | (27,514) | -98.8% | | Basic loss per share | (0.10) HK cents | (8.44) HK cents | -98.8% | II. Condensed Consolidated Statement of Financial Position As of June 30, 2021, total group assets were HKD 566 million, a slight decrease from year-end 2020, with net assets remaining relatively stable at HKD 321 million and net current liabilities at HKD 28.3 million Financial Position Summary | Metric | June 30, 2021 (HKD Thousands) | December 31, 2020 (HKD Thousands) | | :--- | :--- | :--- | | Non-current assets | 370,797 | 375,288 | | Current assets | 195,305 | 197,010 | | Current liabilities | 223,606 | 225,266 | | Net current liabilities | (28,301) | (28,256) | | Net assets | 321,467 | 322,012 | | Total equity | 321,467 | 322,012 | III. Condensed Consolidated Statement of Changes in Equity As of June 30, 2021, total group equity slightly decreased to HKD 321 million from HKD 322 million at the beginning of the year, with the loss for the period partially offset by fair value changes in equity instruments - Equity attributable to owners of the company slightly increased from HKD 319.8 million to HKD 320.3 million during the period, primarily due to HKD 0.745 million in other comprehensive income (fair value changes in equity instruments) offsetting a HKD 0.337 million loss for the period22 IV. Condensed Consolidated Statement of Cash Flows In the first half of 2021, the group's net cash and cash equivalents decreased by HKD 9.668 million, ending the period at HKD 16.657 million, with significantly reduced cash outflow from operating activities Cash Flow Summary | Metric | 2021 Half-Year (HKD Thousands) | 2020 Half-Year (HKD Thousands) | | :--- | :--- | :--- | | Net cash used in operating activities | (51) | (7,419) | | Net cash used in investing activities | (2,668) | 9,853 | | Net cash used in financing activities | (6,949) | (7,610) | | Net decrease in cash and cash equivalents | (9,668) | (5,176) | | Cash and cash equivalents at end of period | 16,657 | 16,690 | V. Notes to the Interim Financial Report The notes detail the financial statement preparation basis, accounting policies, and item specifics, highlighting significant growth in hotel services revenue and a turnaround in securities investment, with no interim dividend proposed - The group primarily engages in six main businesses: hair styling, hotel and hospitality services, property investment, securities investment, property project management, and money lending303446 Revenue and Results by Business Segment (Six Months Ended June 30) | Business Segment | 2021 Revenue (HKD Thousands) | 2020 Revenue (HKD Thousands) | 2021 Results (HKD Thousands) | 2020 Results (HKD Thousands) | | :--- | :--- | :--- | :--- | :--- | | Hair Styling | 8,264 | 7,761 | 51 | 162 | | Hotel and Hospitality Services | 5,921 | 2,589 | (1,317) | (1,366) | | Property Investment | 2,141 | 2,182 | (2,156) | (1,916) | | Securities Investment | 1,535 | 1,587 | 6,733 | (16,363) | | Property Project Management | 428 | 1,800 | (35) | (42) | | Money Lending | 4 | – | (11) | (15) | | Total | 18,293 | 15,919 | 3,265 | (19,540) | - The directors do not recommend the payment of any interim dividend for the six months ended June 30, 20217276 Business Review This section provides a detailed review of the group's diverse business segments, highlighting performance drivers and strategic initiatives I. Overall Performance In the first half of 2021, group turnover increased by 15% to HKD 18.293 million, primarily due to the North Point hotel, with net loss significantly narrowing by 95% to HKD 1.29 million driven by fair value gains on financial assets and reduced finance costs - Turnover increased by 15% to HKD 18.293 million, mainly due to the North Point hotel, which commenced operations in May 2020, contributing six months of operating income in this reporting period106108 - Net loss significantly decreased from HKD 27.925 million in the prior period to HKD 1.29 million, primarily due to HKD 5.198 million fair value gains on financial assets at fair value through profit or loss (compared to a HKD 17.95 million loss in the prior period), HKD 1.409 million unrealized exchange gains from RMB deposits (compared to a HKD 1.672 million loss in the prior period), and a 47% reduction in finance costs to HKD 1.75 million due to lower interest rates107109 II. Property Investment Business Rental income from property investment slightly decreased by 2% to HKD 2.141 million, with challenges in Macau's leasing market due to travel restrictions, while Hong Kong's residential market remained resilient - Rental income from the Hong Kong and Macau property portfolio was HKD 2.141 million, a 2% year-on-year decrease110112 - Macau's leasing market faced difficulties with vacant residential and office units due to travel restrictions, while Hong Kong's residential market remained robust due to limited supply and a low-interest rate environment111112 III. Hair Styling Business Hair styling business turnover grew 6% to HKD 8.264 million, but segment profit dropped 69% to HKD 0.051 million due to the absence of prior-period rental concessions and government subsidies - Turnover increased by 6% year-on-year to HKD 8.264 million, but segment profit decreased by 69% to HKD 0.051 million, primarily because of rental concessions and government subsidies in the prior period that were not present in the current period114116 - The group is developing a new e-platform with government funding from the 'Distance Business Programme (D-Biz)' to offer online appointments and product sales, aiming for launch by year-end115117 IV. Hospitality Service Business Hospitality service turnover surged 129% to HKD 5.921 million, driven by the North Point hotel's full-period contribution, with segment loss narrowing 4% to HKD 1.317 million despite reduced government subsidies - Turnover significantly increased by 129% year-on-year to HKD 5.921 million, mainly because the North Point hotel operated for six months in this reporting period compared to only two months in the prior period118121 - The business shifted its focus to the local market, attracting long-stay local customers with attractive packages, and the co-living business received positive market feedback119121 V. Securities Investments Business As of period-end, the group held HKD 76.244 million in financial assets at fair value through profit or loss, primarily Link REIT, generating HKD 1.535 million in interest and dividend income and HKD 5.198 million in fair value gains Details of Significant Investments (As of June 30, 2021) | Company Name / (Stock Code) | Number of Shares Held | Investment Cost (HKD Thousands) | Dividend Income for the Period (HKD Thousands) | Fair Value Gain for the Period (HKD Thousands) | Fair Value at Period-End (HKD Thousands) | Approximate Percentage of Total Assets | | :--- | :--- | :--- | :--- | :--- | :--- | :--- | | Link Real Estate Investment Trust (823) | 704,583 | 66,549 | 1,039 | 3,276 | 53,020 | 9.4% | VI. Property Project Management Business The property project management business generated HKD 0.428 million in revenue from an ongoing office project, resulting in a segment loss of HKD 0.035 million - An ongoing office project generated HKD 0.428 million in revenue during the period, with a segment loss of HKD 0.035 million127130 VII. Other Business Segments The money lending business had minimal activity, recording only one private loan with HKD 4,000 in revenue and a segment loss of HKD 0.011 million - The money lending business recorded one private loan with total revenue of HKD 4,000 and a segment loss of HKD 0.011 million128131 Financial Review This section provides an overview of the group's financial position, liquidity, and capital structure, along with details on employee remuneration I. Liquidity and Financial Resources As of June 30, 2021, the group held HKD 113 million in cash and pledged deposits but had net current liabilities of HKD 28.3 million, with a current ratio of 0.87 and improved gearing ratio of 4% Liquidity and Capital Structure Indicators | Metric | June 30, 2021 | December 31, 2020 | | :--- | :--- | :--- | | Cash and bank balances (including pledged) | HKD 112,988,000 | N/A | | Net current liabilities | HKD 28,301,000 | HKD 28,256,000 | | Current ratio | 0.87 | 0.87 | | Gearing Ratio | 4% | 6% | - The group holds substantial RMB deposits, facing exchange rate fluctuation risks, but the board believes long-term exchange rates will remain stable136138 IV. Employee and Remuneration Policy As of period-end, the group employed 44 staff with total employee costs (excluding directors) of HKD 6.167 million, and 12.548 million unexercised share options were held by an executive director - As of June 30, 2021, the group employed 44 staff, with related employee costs totaling HKD 6.167 million141144 - As of June 30, 2021, all 12.548 million unexercised share options were held by Ms. Tsang Siu Wan, an executive director, with no changes in options granted, exercised, or lapsed during the period148149150 Prospects This section outlines the group's future outlook, strategic responses to market uncertainties, and opportunities for business expansion and asset optimization Prospects Summary Despite global uncertainties, Hong Kong's economic recovery, rising vaccination rates, and government consumption vouchers are expected to stimulate local consumption, with the group adopting prudent strategies to control costs and capitalize on local tourism recovery - Despite global economic uncertainties, Hong Kong's economy shows signs of improvement (GDP growth of 7.8% in H1 2021), with rising vaccination rates and government consumption voucher schemes expected to stimulate local consumption153154 - The hotel business benefited from local long-stay traveler demand and the 'Return2HK Scheme,' with occupancy and room rates recovering, and the group will seize local tourism recovery opportunities by participating in initiatives like 'Green Lifestyle Local Tours'156158 - The group will adopt prudent measures to navigate the 'new normal,' including flexible adjustment of frontline manpower, strict cost control, deferral of non-essential capital expenditures, and consideration of divesting non-core investment properties when attractive offers arise160161 Corporate Governance This section details the group's adherence to corporate governance principles, including board and shareholder interests, and compliance with listing rules Directors' and Shareholders' Interests This section discloses directors' and major shareholders' interests in company shares, with Executive Chairman Mr. Tsang Chiu Wu and his associates holding approximately 33%, and Ms. Szeto Yuk Lin and her associates holding about 15.64% - Executive Chairman Mr. Tsang Chiu Wu and Executive Director Ms. Tsang Siu Wan, through their controlled entity ST Investments Holding Limited, collectively hold 33.00% of the company's shares165178 - Major shareholder Ms. Szeto Yuk Lin holds 15.64% of the company's shares through her controlled entities179 - During the reporting period, neither the company nor any of its subsidiaries purchased, sold, or redeemed any of the company's listed securities183185 Compliance and Committees The company complied with Listing Rules' Corporate Governance Code during the period, with two deviations noted, and all directors confirmed adherence to the standard code for securities transactions - The company had two deviations from the Corporate Governance Code: Executive Chairman Mr. Tsang Chiu Wu concurrently performed the duties of Chief Executive Officer, and Independent Non-executive Director Mr. Hui Yan Kit was unable to attend the Annual General Meeting on May 28, 2021191 - The Audit Committee reviewed the unaudited condensed financial statements for the six months ended June 30, 2021188 - All directors confirmed compliance with the standard code for securities transactions by directors during the reporting period189190
世纪建业(00079) - 2021 - 中期财报