Financial Performance - The group's hotel operating revenue was approximately HKD 22.1 million, a decrease of about 15.3% compared to HKD 26.0 million in the same period last year[8]. - The loss attributable to the company's owners was approximately HKD 34.7 million, compared to a loss of HKD 57.1 million in the previous year[8]. - Basic loss per share was approximately HKD 0.829, an improvement from HKD 1.425 in the previous year[12]. - The group's gross profit was HKD 10.8 million, down from HKD 17.9 million year-on-year[9]. - The total comprehensive loss for the period was HKD 48.3 million, compared to HKD 64.7 million in the previous year[12]. - The group reported a pre-tax loss of HKD 33.3 million, compared to HKD 55.3 million in the previous year[9]. - Hotel operating revenue for the six months ended June 30, 2024, was HKD 22,067,238, a decrease of 15.0% compared to HKD 26,042,379 for the same period in 2023[35]. - The group reported a loss before tax of HKD 57,056,335 for the six months ended June 30, 2024, compared to a loss of HKD 34,735,996 for the same period in 2023[42]. - The net loss attributable to owners for the period was approximately HKD 34.7 million, a significant reduction of about 39.1% from HKD 57.1 million in the previous year[54]. Revenue Breakdown - The revenue from hotel rooms was HKD 16,117,193, down 24.7% from HKD 21,381,940 in the previous year[35]. - Food and beverage revenue was approximately HKD 3.2 million, representing about 14.6% of total hotel operating revenue, up from 4.7% in the previous year[56]. - Rental income from hotel properties was HKD 2,364,073, down 24.6% from HKD 3,137,323 in the previous year[35]. - Rental income from hotel tenants was approximately HKD 2.4 million, accounting for about 10.7% of total hotel revenue, down from 12.1% in the previous year[56]. - Room revenue for the period was approximately HKD 16.1 million, accounting for about 73.0% of total hotel operating revenue, down from 82.1% in the previous year[55]. Expenses and Costs - Administrative expenses amounted to HKD 18.8 million, a significant decrease from HKD 55.5 million in the previous year[9]. - Financial costs increased to HKD 25.1 million from HKD 17.7 million year-on-year[9]. - Employee costs for the period were HKD 6,365,357, a decrease of 34.5% from HKD 9,729,474 in the previous year[39]. - The group incurred depreciation expenses of HKD 4,767,368 for property, plant, and equipment, a decrease from HKD 5,475,417 in the previous year[39]. Assets and Liabilities - As of June 30, 2024, total non-current assets decreased to HKD 519,221,547 from HKD 550,629,930 as of December 31, 2023, representing a decline of approximately 5.7%[13]. - Current assets totaled HKD 57,247,451, down from HKD 66,312,651, indicating a decrease of about 13.9%[13]. - The net current liabilities increased to HKD (435,237,901) from HKD (423,017,250), reflecting a rise of approximately 2.9%[14]. - Total liabilities increased to HKD 492,485,352 from HKD 489,329,901, showing a slight increase of about 0.4%[13]. - Cash and cash equivalents decreased to HKD 22,399,833 from HKD 26,040,912, a decline of approximately 13.9%[13]. - The total equity attributable to owners decreased to HKD 23,049,965 from HKD 71,203,991, a significant decline of about 67.6%[14]. - The total assets less current liabilities stood at HKD 83,983,646, down from HKD 127,612,680, a decrease of approximately 34.2%[14]. Strategic Focus and Future Plans - The company is focusing on improving operational efficiency and reducing costs in response to the challenging market conditions[7]. - Future strategies include exploring new market opportunities and potential partnerships to enhance revenue streams[7]. - The company is considering potential investors to fund the completion or acquisition of the Bintan asset due to financial constraints and delays caused by the COVID-19 pandemic[57]. - The company aims to enhance its position in the rapidly growing tourism market in the region through the Bintan Resort project, which will diversify revenue sources[100]. - The company is committed to providing exceptional guest experiences and strategically investing in special assets and restructuring opportunities[101]. Shareholder and Governance Matters - The company did not recommend any dividend for the six months ended June 30, 2024, consistent with the previous year[45]. - The company has maintained compliance with the corporate governance code as per GEM listing rules during the review period[104]. - The audit committee has reviewed the unaudited consolidated performance and believes it complies with applicable accounting standards and GEM listing rules[102]. - The company must comply with all resumption guidelines to avoid delisting, as the Stock Exchange can delist any securities suspended for 12 months[110]. - The company has obligations to disclose all significant information for shareholders and investors to assess its condition[110]. Financing and Debt Management - The company is actively seeking refinancing to stabilize its financial situation due to current liquidity challenges[101]. - The company is negotiating with existing financing institutions and convertible bondholders to extend loan terms and potentially restructure the convertible bonds[61]. - A financing agreement was signed for a loan of SGD 55 million at a fixed annual interest rate of 11%[97]. - HHI is required to repay the loan in full one year from the drawdown date, with a prepayment of SGD 3,025,000 due on December 26, 2023[98]. - The company has entered into a repayment deferral agreement with convertible bondholders, extending the deferral period to February 16, 2024, and plans to repay HKD 16,057,191.78 by that date[96]. Market Outlook - The company maintains a cautiously optimistic outlook for the future, anticipating a strong recovery in the tourism industry as COVID-19 restrictions ease[99]. - The reopening of the Hanazuki Onsen Hotel in Japan in Q3 2023 is expected to meet the growing interest in health tourism, although its performance has not met expectations due to financial and human resource constraints[100]. - The company is considering exploring options for the Hanazuki Onsen Hotel, including potential sale, to alleviate liquidity pressure[100]. - The development of the Bintan Resort is seen as a significant opportunity for regional expansion, contingent on successful refinancing[100]. - The company is excited about future opportunities, including the potential development of the Bintan Resort, while closely monitoring the refinancing process[101]. Share Options and Capital Management - The company has adopted a new share option scheme effective from May 31, 2024, to incentivize and retain eligible participants[71]. - The maximum number of shares available for issuance under the 2024 share option plan is capped at 10% of the total issued shares as of the adoption date[82]. - The share options granted during the review period represent 1.25% of the weighted average number of shares issued during the review period[92]. - The 2024 share option plan will be effective for a period of 10 years from the adoption date, which is May 31, 2024[87]. - The company has a policy that share options must be held for at least 12 months before they can be exercised[80].
华星控股(08237) - 2024 - 中期财报