Financial Performance - The company reported a profit attributable to owners of HKD 4,000,000 for the six months ended June 30, 2021, compared to a loss of HKD 77,000,000 for the same period in 2020, an increase of HKD 81,000,000 [8]. - The profit attributable to the owners of Huada Hotel was 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, an increase of HKD 163,000,000 [14]. - The net profit for the period was HKD 12,994,000, a turnaround from a net loss of HKD 190,447,000 in the same period of 2020 [56]. - The company reported a total comprehensive income of HKD 32,966,000 for the six months ended June 30, 2021, compared to a loss of HKD 268,277,000 in the same period of 2020 [56]. - The pre-tax profit for the six months ended June 30, 2021, was HKD 27,820,000, a substantial recovery from a loss of HKD 187,046,000 in the same period of 2020 [94]. - Basic earnings per share for the first half of 2021 was HKD 1.78, compared to a loss per share of HKD 31.67 in the previous year [54]. - The company reported a total of HKD 1,882,000 in other income and expenses for the six months ended June 30, 2021, compared to HKD 10,179,000 in the previous year, indicating a decrease of 81.5% [94]. Revenue and Income Sources - Hotel business revenue increased by 71% to HKD 145,000,000 for the six months ended June 30, 2021, up from HKD 85,000,000 in the same period last year [11]. - The group’s total revenue increased by 45% to HKD 144,705,000, driven by an increase in hotel occupancy and rental income [17]. - Total revenue for the six months ended June 30, 2021, was HKD 232,345,000, a significant increase from HKD 170,677,000 for the same period in 2020, representing a growth of approximately 36.1% [54]. - Hotel operating income reached HKD 145,436,000, up 70.5% from HKD 85,355,000 in the previous year [89]. - Property rental income was HKD 86,909,000 for the six months ended June 30, 2021, slightly increasing from HKD 85,269,000 in the prior year [94]. - The rental income from commercial properties was HKD 87,000,000 for the six months ended June 30, 2021, slightly up from HKD 85,000,000 in the same period last year [20]. Debt and Financial Position - The overall debt of the group decreased to HKD 837,000,000 as of June 30, 2021, from HKD 870,000,000 as of December 31, 2020, due to loan repayments [21]. - The group’s capital debt ratio remained stable at 11% as of June 30, 2021, consistent with the previous reporting period [21]. - Current liabilities increased to HKD 559,758,000 as of June 30, 2021, compared to HKD 309,755,000 at the end of 2020, indicating a rise in short-term obligations [60]. - The company’s total equity as of June 30, 2021, was HKD 7,970,694,000, compared to HKD 7,929,766,000 at the end of 2020, showing a slight increase in shareholder equity [60]. - The total bank loans amounted to HKD 787,857,000 as of June 30, 2021, down from HKD 816,185,000 as of December 31, 2020 [132]. Corporate Governance - The company has complied with all corporate governance codes except for the deviation where the Chairman and CEO roles are held by the same individual, which is believed to provide consistent leadership and cost savings [39]. - The company has adopted a nomination committee framework that complies with the governance code, with most members being independent non-executive directors [41]. - The remuneration committee's responsibilities have been revised to fully comply with the governance code, ensuring independent oversight of management compensation [43]. - The company has confirmed compliance with the standard code for securities trading by all directors during the reporting period [44]. - The company experienced a change in its board composition, with the number of independent non-executive directors dropping to two, which temporarily affected compliance with listing rules [45]. - The company has appointed new members to its audit and remuneration committees to restore compliance with listing rules [49]. Operational Challenges - The tourism market in Hong Kong was severely impacted by COVID-19, with most hotels and retailers experiencing a revenue decline of over 90% [23]. - Management anticipates low occupancy rates and high operational costs for Hong Kong hotels and retail sectors to continue, with a significant likelihood of overseas and Chinese tourists returning being low for the remainder of 2021 [25]. - The company expects a rapid increase in office vacancy rates due to economic challenges faced by international trade companies as a result of the US-China trade war and retail sector closures [25]. - The company operates nine revenue-generating hotels, with seven located in Hong Kong, one in Shanghai, and one in London, facing challenges due to the ongoing effects of COVID-19 and the US-China trade war [25]. Investments and Acquisitions - The company acquired the Wood Street Police Station in London for £40 million, with plans to renovate it into a luxury hotel with approximately 216 rooms [24]. - The company participated in a designated quarantine hotel program with six hotels, which is expected to positively impact revenue [75]. Cash Flow and Liquidity - The company’s cash and cash equivalents increased to HKD 260,395,000 from HKD 178,469,000, reflecting improved liquidity [58]. - The net cash generated from operating activities was HKD 114,674,000, compared to HKD 10,574,000 in the previous year [67]. - The company recorded a net increase in cash and cash equivalents of HKD 80,463,000, compared to HKD 357,698,000 in the same period last year [68]. - The total unused bank financing available to the company as of June 30, 2021, was HKD 910,500,000 [74]. Asset Management - Non-current assets as of June 30, 2021, totaled HKD 8,803,934,000, slightly down from HKD 8,862,345,000 at the end of 2020 [58]. - The carrying amount of hotel properties was approximately HKD 3,380,912,000 as of June 30, 2021, with no impairment loss recognized due to the recoverable amount being higher than the carrying value [118]. - The total carrying value of investment properties was approximately HKD 4,496,051,000 as of June 30, 2021, down from HKD 5,021,780,000 as of December 31, 2020, with a loss of HKD 34,470,000 recognized in the income statement for the period [120].
顺豪控股(00253) - 2021 - 中期财报