Project Developments - The completed project "Le Paysage" in Shenzhen has a site area of 42,233 m², with a total saleable area of 138,123 m² and an attributable interest of 100%[8]. - The ongoing project "The Landale" in Chaohu has a site area of 122,363 m², with a total saleable area of 85,756 m² and an attributable interest of 100%[9]. - The Group is in preliminary planning stages for parcels of land located at Miyako Island, Okinawa, Japan, intended for 40 villas and a hotel with more than 100 rooms, with a 51% attributable interest[10]. - The Group's total saleable area for completed and ongoing projects is significant, contributing to its overall portfolio value[8][9]. - The Group's financial position is supported by its diverse property portfolio, which includes both completed and under-development projects[8][9]. - The Landale project is currently suspended due to changes in China's scenic area regulations[76]. Financial Performance - The Group recorded a loss attributable to owners of the Company of RMB118.6 million for the six months ended 30 June 2020, representing a significant reduction of loss by 90.5% compared to RMB1,254.2 million for the same period in 2019[28]. - Revenue for the period was approximately RMB93.7 million, a decrease of approximately RMB213.3 million or 69.5% compared to RMB307.0 million for the corresponding period in 2019[28]. - Revenue from property leasing decreased from RMB23.4 million for the six months ended 30 June 2019 to approximately RMB19.1 million due to a decline in occupancy rate from 66% to 59%[28]. - The Group's financial performance was impacted by a loss of approximately RMB333.2 million in fair value of investment properties and finance costs of approximately RMB192.6 million[28]. - The Group's total current liabilities were approximately RMB3,571.5 million as of June 30, 2020, down from RMB4,231.6 million as of December 31, 2019[53]. - Total revenue for the six months ended June 30, 2020, was RMB 93,748, a decrease of 69.5% compared to RMB 307,043 for the same period in 2019[115]. - The company reported a loss for the period of RMB 123,208, a decrease from RMB 1,254,366 in the prior year[117]. - Total liabilities exceeded total assets by approximately RMB 540,037,000[137]. Operational Impact of COVID-19 - The outbreak of COVID-19 significantly impacted the Group's operations, leading to a temporary closure of its associate's casino operations from late March 2020 to July 2020[138]. - The pandemic has significantly impacted the global economy and market demand, making it difficult to estimate the full recovery of the tourism market[108]. - The Group's flagship integrated resort Hoiana successfully welcomed its first customers during a preview on June 28, 2020, despite the challenges posed by the COVID-19 pandemic[19]. - Hoiana was never mandated to suspend operations, and the Westside City Project in Manila faced no operational impact[23]. - The Group implemented a stringent cost-control program to manage operations effectively during challenging times[25]. - The Group's approach to treasury and funding policies focuses on risk management and transactions directly related to its underlying business[68]. Strategic Initiatives - The Group remains committed to international integrated resort development projects, including Hoiana in Vietnam and Westside City Project in the Philippines[25]. - The Group has been exploring opportunities in other Asian countries such as Vietnam, Japan, and Myanmar[77]. - The Group aims to enrich travel-related products to cover more Asian countries in the near future[84]. - The Group plans to offer charter flight services and relevant travel products following the acquisition of an aircraft in January 2020[84]. - The Group is progressing on various projects, including the Phase 1 upgrade in Tigre de Cristal and architectural design work for the Westside City Project in the Philippines, positioning itself for growth in entertainment demand post-pandemic[110]. Stakeholder Engagement - The Group's investor relations are managed by Ms. Winnie Lei, Senior Director, indicating a structured approach to stakeholder communication[6]. - The Chairman expressed confidence in the long-term development of the Group and emphasized the importance of supporting employees and the community[25]. - The Group's strategy includes focusing on employee welfare and community support during difficult times, alongside maintaining customer experience[25]. Market Conditions - The number of visitor arrivals in Macau was approximately 3.3 million during the six months ended June 30, 2020, representing a decline of 83.9% compared to the same period in 2019[84]. - The average occupancy rate of hotels and guesthouses in Macau decreased by 63.9% year-on-year to 27.2% for the six months ended June 30, 2020[84]. - In Vietnam, international tourist arrivals decreased by 55.8% year-on-year to 3.74 million from January to June 2020[104]. - Macau's gross gaming revenue for the first half of 2020 was MOP33.7 billion, down by 77.4% year-on-year, with total tourism arrivals decreasing by 83.9% to 3.2 million[104]. Financial Management - The Group's cash and cash equivalents at 30 June 2020 amounted to RMB 1,659,774,000, compared to RMB 87,037,000 at the same date in 2019[133]. - Loans from a related company surged from RMB 729,589,000 to RMB 1,714,903,000, an increase of approximately 134.0%[123]. - The Group's total liabilities from convertible bonds and derivative financial instruments were approximately RMB621.2 million as of June 30, 2020, compared to RMB581.7 million as of December 31, 2019[53]. - The Group's total current liabilities were approximately RMB3,571.5 million as of June 30, 2020, down from RMB4,231.6 million as of December 31, 2019[53]. Regulatory Compliance - The Group's financial statements for the six months ended June 30, 2020, included disclosures regarding the impact of COVID-19 on lease agreements[150]. - The Group early adopted the amendment to HKFRS 16 "Covid-19-Related Rent Concessions" on January 1, 2020, resulting in a reduction of lease payments by RMB 354,000 during the six months ended June 30, 2020[151]. - The amendments to HKFRS 3 clarified the definition of a business, which may impact future acquisitions and business combinations[149].
LET GROUP(01383) - 2020 - 中期财报