Financial Performance - Adjusted EBITDA for the integrated resort Tigre de Cristal in the first half of 2019 was HKD 108.5 million, a 62% increase from HKD 66.8 million in the same period of 2018[7]. - The profit attributable to the owners of the company for the first half of 2019 was HKD 42.8 million, compared to HKD 2.6 million in the first half of 2018[7]. - Total revenue for the group in the first half of 2019 was HKD 257.3 million, a 24% increase from HKD 207.8 million in the same period of 2018[7]. - The slot machine business generated revenue of HKD 90.6 million in the first half of 2019, a 37% increase from HKD 66.3 million in the first half of 2018[8]. - The turnover from the gaming business improved significantly, with revenue rising 69% from HKD 40.8 million in the first half of 2018 to HKD 68.8 million in the first half of 2019[8]. - Gaming revenue from Tigre de Cristal increased to HKD 236,900,000 in the first half of 2019, up from HKD 190,700,000 in the same period of 2018, driven by a rebound in the gaming business[25]. - The turnover from the gaming business reached HKD 8,400,000,000 in the first half of 2019, a 28% increase compared to the same period in 2018[29]. - Net win from the gaming business increased by 68% to HKD 69,000,000 in the first half of 2019, compared to HKD 41,000,000 in the same period of 2018[29]. - The total win percentage increased from 2.90% in the first half of 2018 to 3.06% in the first half of 2019[29]. - The company reported a pre-tax profit of HKD 55,445,000, compared to a loss of HKD 10,260,000 in the previous year, indicating a significant turnaround[71]. - The total comprehensive income for the period was HKD 55,364,000, compared to HKD 42,814,000 in the previous year, representing an increase of approximately 29.4%[79]. Operational Highlights - The company is currently refining the design and construction elements for the second phase of the Tigre de Cristal project, located on land plot 10[10]. - Tigre de Cristal is recognized as a five-star hotel and was awarded "Russia's Leading Resort 2018" at the Europe Gala Ceremony 2018[12]. - The integrated resort spans approximately 36,000 square meters and offers a variety of gaming options, luxury accommodations, and dining experiences[11]. - The company plans to expand non-gaming product offerings at Tigre de Cristal to attract more players and enhance the value of the gaming business[30]. - The company plans to enhance its existing integrated resort offerings by adding non-gaming facilities, including a Korean BBQ restaurant and a private club, aiming for completion by Q1 2020[63]. - The group employed 1,133 staff as of June 30, 2019, an increase from 1,050 as of December 31, 2018, with over 97% being local Russian citizens[61]. Shareholder and Management Changes - The company’s major shareholder changed on April 23, 2019, when it sold all its shares to a subsidiary of Suncity Group at HKD 1.94 per share, making Suncity the largest shareholder[15]. - The board of directors saw several changes, including the appointment of Mr. Zhou Zhuohua as a non-executive director and chairman effective June 1, 2019[16]. - The company’s major shareholder, Sun City, holds a 26.40% interest through its controlled entity, Winning Group[181]. Cash Flow and Financial Position - The net cash generated from operating activities for the six months ended June 30, 2019, was HKD 100.24 million, compared to HKD 74.59 million for the same period in 2018[50]. - The net cash used in investing activities for the first half of 2019 was HKD 21 million, primarily due to equipment purchases of HKD 11.3 million and VAT refunds of HKD 9.9 million[52]. - The net cash used in financing activities for the six months ended June 30, 2019, was HKD 58.4 million, down from HKD 69.6 million in the same period of 2018[52]. - The total cash and cash equivalents at the end of June 30, 2019, were HKD 507.2 million, compared to HKD 479.8 million at the end of 2018[50]. - The company anticipates observing the "cluster effect" from its development plans as early as 2021 or 2022[66]. - The company plans to enhance its cash position with net proceeds of approximately HKD 297,000,000 from the placement of 300,000,000 shares, which will be used for the development of the second phase project[65]. Asset and Liability Management - As of June 30, 2019, the group's net current assets amounted to HKD 492 million, an increase from HKD 451.6 million as of December 31, 2018[49]. - Non-current assets as of June 30, 2019, were HKD 1,454,256,000, a slight decrease from HKD 1,477,368,000 as of December 31, 2018[73]. - Current liabilities decreased to HKD 60,395,000 from HKD 76,266,000, indicating improved financial stability[73]. - Non-current liabilities decreased from HKD 302,429,000 in December 2018 to HKD 257,991,000 as of June 30, 2019, representing a reduction of approximately 14.7%[75]. - The company’s total equity as of June 30, 2019, was HKD 1,688,293,000, an increase from HKD 1,626,584,000 in December 2018, indicating a growth of approximately 3.8%[75]. Compliance and Governance - The company has maintained compliance with the corporate governance code, except for the separation of roles between the Chairman and CEO during a transitional period[186]. - The Audit Committee consists of three independent non-executive directors, responsible for reviewing financial reports and risk management[193]. - The company has a commitment to high standards of corporate governance, maintaining relationships with stakeholders[186]. Accounting Standards and Financial Reporting - The group has adopted the new Hong Kong Financial Reporting Standards (HKFRS) No. 16, which replaces HKAS 17, effective from January 1, 2019[85]. - The application of HKFRS No. 16 has not significantly impacted the group's financial position and performance during the reporting period[87]. - The group recognizes right-of-use assets at the commencement date of the lease, measured at cost, less any accumulated depreciation and impairment losses[92]. - Lease liabilities are recognized at the present value of unpaid lease payments at the lease commencement date[97]. - The group applies short-term lease recognition exemptions for leases with a term of 12 months or less and for low-value asset leases[91]. Stock Options and Share Capital - The company has a stock option plan approved on July 7, 2011, which allows the granting of options to directors and employees[171]. - The stock options granted to directors as of June 30, 2019, totaled 78,464,000, with 15,400,000 exercised during the period[174]. - The company’s stock options plan is subject to specific terms and conditions as outlined in the plan[171]. - As of June 30, 2019, the total number of issued shares was 1,503,777,836[168].
凯升控股(00102) - 2019 - 中期财报