Financial Performance - The total revenue for the first half of 2021 was HKD 129,500,000, a 35% increase from HKD 96,000,000 in the first half of 2020[7] - The adjusted EBITDA for the first half of 2021 was HKD 17,200,000, compared to a negative adjusted EBITDA of HKD 22,100,000 in the first half of 2020[7] - The loss attributable to owners of the company for the first half of 2021 was approximately HKD 131,000, significantly improved from HKD 47,000,000 in the same period of 2020[7] - The total revenue from the gaming and hotel business was HKD 129,452,000 in 2021, up from HKD 95,967,000 in 2020, representing an increase of approximately 35%[27] - The company recorded a net loss attributable to shareholders of HKD 131,000 for the first half of 2021, a significant improvement from a loss of HKD 46,975,000 in the same period of 2020[30] - The total loss for the period was HKD 8,064,000, a substantial improvement from a loss of HKD 89,157,000 in the previous year, representing a reduction of 91%[81] - Basic and diluted loss per share improved to HKD (0.003) from HKD (2.33) year-on-year[81] Cash and Liquidity - As of June 30, 2021, the company had cash and bank balances of HKD 635,300,000, with no bank borrowings[7] - Cash and cash equivalents decreased to HKD 635,300,000 as of June 30, 2021, down from HKD 1,562,300,000 on December 31, 2020, primarily due to loan disbursements[60] - The net cash generated from operating activities for the first half of 2021 was HKD 8,896,000, compared to a cash outflow of HKD 8,419,000 in the same period of 2020[61] - The net cash generated from operating activities for the six months ended June 30, 2021, was HKD 8,896,000, compared to HKD 8,419,000 for the same period in 2020, representing an increase of approximately 5.7%[94] - The total decrease in cash and cash equivalents was HKD 926,198,000, compared to a decrease of HKD 33,767,000 in the previous year, reflecting a substantial cash outflow[96] Operational Highlights - The company continues to focus on the local market in the Russian Federation, where it operates the Tigre de Cristal integrated resort[9] - The first phase of the Tigre de Cristal resort opened in Q4 2015 and features a gaming area of approximately 36,000 square meters[10] - The expansion plan for the Crystal Tiger Palace is progressing, with the number of rooms expected to triple and gaming equipment to double upon the opening of the second phase in 2023[20] - The new VIP lounge and hot pot restaurant at the Crystal Tiger Palace are now fully operational, ready to serve customers once borders reopen[21] - The company has been monitoring the potential impacts of COVID-19 on its business operations and assessing its working capital needs[14] Gaming and Hotel Performance - The net gaming revenue from the mass market segment increased by 62% to HKD 55,000,000 in the first half of 2021, up from HKD 34,000,000 in the same period of 2020[41] - The gaming turnover for the mass market segment rose significantly by 68% to HKD 237,000,000 in the first half of 2021, compared to HKD 141,000,000 in the first half of 2020[41] - The slot machine gaming turnover reached HKD 1,563,000,000 in the first half of 2021, a substantial increase of 93% from HKD 810,000,000 in the first half of 2020[46] - The net gaming revenue from the slot machine segment increased by 66% to HKD 68,000,000 in the first half of 2021, compared to HKD 41,000,000 in the same period of 2020[46] - Hotel business revenue increased by 82% to HKD 6,700,000 in the first half of 2021, compared to the same period in 2020[47] - The average hotel occupancy rate on weekends rose to 44% in the first half of 2021, up from 15% in the first half of 2020[47] Debt and Financing - The company has a strong balance sheet with no debt and sufficient cash reserves to navigate through the pandemic[20] - The company currently relies entirely on equity financing and has no bank borrowings, indicating a strong capital structure[99] - The company provided a short-term loan of USD 120,000,000 to its subsidiary Suntrust Home Developers, Inc., with an interest rate of 6%[15] - Financing costs decreased by 60% to HKD 5,900,000 in the first half of 2021, compared to HKD 14,800,000 in the same period of 2020[50] Shareholder Information - As of June 30, 2021, the total number of issued shares of the company was 4,509,444,590 shares[196] - Mr. Zhou Zhuohua holds a controlling interest of 69.66% in the company, representing 3,141,561,811 shares[177] - Major shareholder Tai Yang Cheng held 123,255,000 shares, representing 2.73% of the total issued shares[195] - Tai Yang Cheng, through its subsidiary Sheng Tian, owned 3,018,306,811 shares, accounting for 66.93% of the total issued shares[196] Corporate Governance - The company has complied with the corporate governance code as of June 30, 2021, except for the attendance of the chairman at the annual general meeting[200] - The board of directors has arranged for an executive director to represent the chairman at the annual general meeting due to scheduling conflicts[200]
凯升控股(00102) - 2021 - 中期财报