Financial Performance - Revenue for the six months ended June 30, 2024, was HK$19,104,000, a decrease of 37.5% compared to HK$30,524,000 in 2023[87]. - The Group recorded revenue of HK$19,104,000 for the period, a decrease of approximately 37.41% compared to HK$30,524,000 in the same period last year[34]. - The Group's accommodation operations revenue for the period was HK$17,978,000, representing a decrease of approximately 38.90% compared to the same period last financial year due to reduced occupancy rates and contract expirations for long-stay customers in Huizhou[11]. - The average occupancy rate decreased to 51.81% from 74.74%, a decline of 22.93%[38][40]. - Average room revenue (ARR) fell to RMB 255.1, down RMB 31.3 or approximately 10.93% from the previous year[40]. - RevPAR decreased to RMB 132.2, a drop of RMB 81.8 or approximately 38.22% compared to the same period last year[40]. - The Group recorded a profit attributable to owners of the Company of HK$3,211,000, a turnaround from a loss of HK$5,348,000 in the corresponding period last year[34]. - Total comprehensive income for the period was HK$2,442,000, compared to a loss of HK$8,053,000 in 2023[87]. - Basic and diluted earnings per share for the period were 0.72 Hong Kong cents, compared to a loss of 1.19 Hong Kong cents in 2023[88]. Operational Challenges - The hotel business experienced a rebound in 2023 due to the reopening of the PRC borders, but faced challenges in the current period due to global economic instability and geopolitical conflicts[9]. - The overall hotel business in China is facing challenges due to economic instability and cautious consumer sentiment, impacting occupancy rates[11]. - The PRC's economy has been significantly impacted by a slowdown in property development, leading to reduced consumer spending and increased caution among consumers[9]. - The Wuhan Branch, with a total GFA of approximately 9,000 sq.m, is focusing on operational upgrades and cost optimization in response to decreased demand for commercial activities and events[19]. - The Group is exploring business diversification opportunities in the healthcare and beauty industry in the PRC[33]. Strategic Initiatives - The Group aims to enhance its core competitiveness and adapt to macro-environmental trends by adjusting business strategies and expanding personalized accommodation products and management services[9]. - The Group is focused on upgrading brands and products, optimizing member benefits, and enhancing customer experience and efficiency[9]. - The strategic objectives include forming a well-structured and distinctive hotel brand matrix to achieve steady performance amidst challenging market conditions[9]. - The Group is implementing flexible sales and marketing plans, including cooperation agreements with new tourism intermediaries and updating existing sales strategies to enhance customer loyalty and service quality[12]. - The Group aims to expand property facilities management services to residential property management to optimize its business portfolio[32]. Cost Management - The Group is committed to controlling costs and reducing expenses to promote sustainable and high-quality development[9]. - The Group is maintaining cost-saving measures and reviewing human resource efficiency to control back office expenses and maximize benefits[13]. - Total operating costs decreased by HK$7,359,000 or approximately 21.18%, from HK$34,744,000 to HK$27,385,000[40]. - Employee benefit expenses decreased by HK$2,490,000 or approximately 23.01% due to effective employee management[41]. - The Baoan Branch maintained stable performance through effective cost control and sales strategies despite adverse conditions[28]. Financial Position - The Group had net current liabilities of HK$66,941,000 and net liabilities of HK$80,299,000 as of June 30, 2024[48]. - The Group's controlling shareholder has agreed to provide continuing financial support to meet liabilities and ensure ongoing operations[48]. - The Group's total assets decreased to HK$111,296,000 from HK$127,319,000 as of December 31, 2023[89]. - The accumulated losses as of June 30, 2024, were HK$ (310,599,000), a decrease from HK$ (313,810,000) at the beginning of the year, indicating a reduction in overall losses[91]. - The total capital deficiency as of June 30, 2024, was HK$ (80,299,000), a slight improvement from HK$ (82,741,000) at the end of 2023, reflecting ongoing efforts to stabilize the financial structure[90]. Employee and Shareholder Information - The Group had 115 employees as of June 30, 2024, an increase from 94 employees as of December 31, 2023[56]. - The total number of issued shares remained unchanged at 448,363,708 shares as of June 30, 2024[53]. - The Directors did not recommend the payment of an interim dividend for the period, consistent with the previous year[54]. - Yuan Fuer holds 269,564,510 shares, representing a 60.12% shareholding in the company[75]. - Chen Hui has an interest in 35,740,071 shares, accounting for 7.97% of the total shares[75]. Compliance and Reporting - The company is required to comply with Hong Kong Accounting Standard 34 for interim financial reporting[80]. - The review of the condensed consolidated financial statements was conducted in accordance with Hong Kong Standard on Review Engagements 2410[81]. - The interim financial statements were approved and authorized for publication by the board on August 30, 2024[148].
朸浚国际(01355) - 2024 - 中期业绩