Financial Performance - The company reported a profit attributable to owners of HKD 9,000,000 for the six months ended June 30, 2021, compared to a loss of HKD 154,000,000 for the same period in 2020, representing an increase of HKD 163,000,000[5]. - Total revenue increased by 45% to HKD 144,705,000 for the six months ended June 30, 2021, up from HKD 99,787,000 in the same period of 2020, primarily due to increased hotel occupancy and rental income[10]. - The company reported a profit before tax of HKD 13,018,000 for the six months ended June 30, 2021, compared to a loss of HKD 158,725,000 in the same period of 2020[71]. - Basic earnings per share for the six months ended June 30, 2021, was HKD 0.10, a significant improvement from a loss of HKD 1.72 in the same period of 2020[71]. - The total comprehensive income for the six months ended June 30, 2021, was HKD 3,506,000, compared to a loss of HKD 305,880,000 in the same period of 2020[78]. - The company experienced a fair value loss on equity investments of HKD 25,291,000 for the six months ended June 30, 2021, compared to a loss of HKD 75,997,000 in the same period of 2020[75]. - The company reported a foreign exchange gain of HKD 20,034,000 due to the translation of overseas operations for the six months ended June 30, 2021, compared to a loss of HKD 76,024,000 in the same period of 2020[76]. - The company’s gross profit for the six months ended June 30, 2021, was HKD 25,331,000, compared to a gross loss of HKD 28,090,000 in the same period of 2020[71]. Revenue Sources - Hotel operating income rose by 67% to HKD 119,493,000, compared to HKD 71,463,000 for the same period last year, driven by increased room rates and occupancy[10]. - Investment property income increased by 22% to HKD 22,983,000, attributed to rental income from the Royal Scot Hotel and other properties[10]. - The rental income from the Royal Scot Hotel in London increased by 8% compared to the same period last year[33]. - The company’s total income from customer contracts, leases, and dividend income for the six months ended June 30, 2021, was HKD 119,493,000, compared to HKD 71,463,000 in the same period of 2020, indicating a 67.3% increase[71]. Expenses and Costs - Service costs for the period were HKD 79,500,000, a slight decrease from HKD 80,600,000 in the previous year[26]. - Administrative expenses (excluding depreciation) were HKD 14,500,000, down from HKD 15,400,000 in the same period last year[26]. - Depreciation for hotel properties was HKD 37,700,000 for the period, slightly down from HKD 37,800,000 in the previous year[26]. - Financial costs decreased to HKD 3,043,000 for the six months ended June 30, 2021, from HKD 4,582,000 in the same period of 2020[71]. Debt and Financial Position - As of June 30, 2021, the total debt of the group was HKD 531 million, an increase of HKD 50 million from HKD 481 million on December 31, 2020[29]. - The capital-to-debt ratio increased to 14% from 13% as of December 31, 2020, based on total debt relative to the revalued hotel properties[29]. - The total interest expense for the period was HKD 3 million, down from HKD 4.6 million in the same period last year, primarily due to a decrease in interest rates[31]. - The group’s total liabilities included HKD 53,548 million in classified liabilities, up from HKD 47,668 million in the previous year, marking an increase of approximately 12.4%[123]. - The group’s total liabilities increased to HKD 684,563 million as of June 30, 2021, compared to HKD 631,902 million in the previous year, reflecting a growth of approximately 8.3%[123]. Employee and Operational Changes - The group had a total of 436 employees as of June 30, 2021, down from 498 employees on December 31, 2020[31]. - Management anticipates low likelihood of overseas and Chinese tourists returning to Hong Kong for the remainder of 2021, impacting hotel occupancy rates and operational costs[36]. - The company operates seven hotels and leases one hotel in London, with five of the local hotels designated as quarantine hotels since January 2021[10]. Governance and Shareholding - Major shareholder Shun Ho Properties holds 6,360,585,437 shares, representing 71.09% of the total shares[45]. - Credit Suisse Trust Limited and associated entities collectively hold 782,114,500 shares, accounting for 8.74% of the total shares[47]. - FMR LLC holds 469,451,000 shares, which is 5.25% of the total shares[52]. - The company has not appointed separate individuals for the roles of Chairman and CEO, with the current individual holding both positions[56]. - The company has adopted a revised nomination committee charter to fully comply with governance code requirements as of March 19, 2021[58]. Cash Flow and Assets - The company reported a net cash inflow from operating activities of HKD 55,097 thousand, a substantial improvement compared to an outflow of HKD 7,135 thousand in the same period last year[90]. - Current assets increased to HKD 258,271 thousand from HKD 163,429 thousand, with cash and cash equivalents rising significantly to HKD 242,483 thousand from HKD 143,317 thousand[82]. - The group recorded a positive operating cash inflow of HKD 48,627,000 and a net increase in cash and cash equivalents of HKD 97,703,000[97]. - The group has unused bank financing totaling HKD 910,500,000 as of June 30, 2021[97]. Impact of COVID-19 - The company did not declare an interim dividend for the six months ended June 30, 2021, due to the ongoing impact of the COVID-19 pandemic on hotel revenues and cash flow stability[6]. - The majority of hotels and retailers in Hong Kong experienced a revenue decline of over 90% due to the impact of COVID-19[32]. - The group’s financial position and performance have been affected by the COVID-19 pandemic and related travel restrictions[99]. - The group’s management conducted a going concern assessment considering the ongoing impact of the COVID-19 pandemic[97].
华大酒店(00201) - 2021 - 中期财报