开源控股(01215) - 2024 - 中期财报

Corporate Information This section provides fundamental company details, including board composition, key personnel, and auditor information - The report provides basic company information, including board members, committee structures, company secretary, stock code (1215), principal registered office, and auditor (Ernst & Young)[2][3] Report on Review of Interim Condensed Consolidated Financial Information Ernst & Young reviewed the interim financial information for the six months ended June 30, 2024, without expressing an audit opinion, concluding no material misstatements - Auditor Ernst & Young reviewed the company's interim financial information for the six months ended June 30, 2024, in accordance with Hong Kong Standard on Review Engagements 2410, without expressing an audit opinion[4][6] - The auditor found no matters suggesting the interim financial information was not prepared in all material respects in accordance with Hong Kong Accounting Standard 34[7] Interim Condensed Consolidated Financial Statements This section presents the company's interim condensed consolidated financial statements, detailing its financial performance and position Interim Condensed Consolidated Statement of Profit or Loss The company achieved a turnaround in the first half of 2024, reporting a profit of approximately HKD 7.9 million, driven by increased hotel revenue and reduced finance costs Interim Condensed Consolidated Statement of Profit or Loss (HKD thousands) | Indicator | H1 2024 (HKD thousands) | H1 2023 (HKD thousands) | YoY Change | | :--- | :--- | :--- | :--- | | Revenue | 143,797 | 135,076 | +6.5% | | Gross Profit | 30,849 | 30,767 | +0.3% | | Profit/(Loss) Before Tax | 9,544 | (1,402) | Turnaround to profit | | Profit/(Loss) for the Period | 7,925 | (1,169) | Turnaround to profit | | Basic Earnings/(Loss) Per Share | 0.06 HK cents | (0.01) HK cents | Turnaround to profit | Interim Condensed Consolidated Statement of Comprehensive Income The company reported a total comprehensive loss of approximately HKD 38.3 million in the first half of 2024, primarily due to other comprehensive losses Interim Condensed Consolidated Statement of Comprehensive Income (HKD thousands) | Indicator | H1 2024 (HKD thousands) | H1 2023 (HKD thousands) | | :--- | :--- | :--- | | Profit/(Loss) for the Period | 7,925 | (1,169) | | Other Comprehensive (Loss)/Income for the Period | (46,272) | 5,522 | | Total Comprehensive (Loss)/Income for the Period | (38,347) | 4,353 | Interim Condensed Consolidated Statement of Financial Position As of June 30, 2024, total assets were approximately HKD 3.6 billion and net assets were approximately HKD 1.89 billion, with a net current liability position of HKD 332 million Interim Condensed Consolidated Statement of Financial Position (HKD thousands) | Indicator | June 30, 2024 (HKD thousands) | December 31, 2023 (HKD thousands) | | :--- | :--- | :--- | | Total Non-Current Assets | 2,360,873 | 2,449,946 | | Total Current Assets | 1,239,134 | 1,218,100 | | Total Assets | 3,600,007 | 3,668,046 | | Total Current Liabilities | 1,570,731 | 1,594,944 | | Net Current Liabilities | (331,597) | (376,884) | | Net Assets | 1,889,475 | 1,927,822 | | Total Equity | 1,889,475 | 1,927,822 | Interim Condensed Consolidated Statement of Changes in Equity Total equity decreased to HKD 1.89 billion by June 30, 2024, primarily due to other comprehensive losses from cash flow hedges and foreign currency translation - Total equity decreased by HKD 38.3 million in the first half of 2024, primarily due to a HKD 17.6 million cash flow hedge loss and a HKD 28.6 million exchange difference loss, partially offset by a HKD 7.9 million profit for the period[16] Interim Condensed Consolidated Statement of Cash Flows The company generated HKD 59.1 million in net cash from operating activities in H1 2024, with cash and cash equivalents increasing to HKD 938 million Interim Condensed Consolidated Statement of Cash Flows (HKD thousands) | Indicator | H1 2024 (HKD thousands) | H1 2023 (HKD thousands) | | :--- | :--- | :--- | | Net Cash Flows from Operating Activities | 59,109 | 53,385 | | Net Cash Flows from Investing Activities | 21,078 | 126,966 | | Net Cash Flows Used in Financing Activities | (17,433) | (34,788) | | Net Increase in Cash and Cash Equivalents | 62,754 | 145,563 | | Cash and Cash Equivalents at End of Period | 938,253 | 853,232 | Notes to the Interim Condensed Consolidated Financial Information This section provides detailed notes on the financial statements, covering preparation basis, segment data, revenue, borrowings, and related party transactions 2.1 Basis of Preparation Despite HKD 332 million in net current liabilities, management believes the company can continue as a going concern due to sufficient cash, shareholder support, and expected loan renewal - Despite HKD 331.6 million in net current liabilities, management believes the company can prepare financial statements on a going concern basis, supported by HKD 938 million in cash, a major shareholder's financial support commitment, and expected renewal of a EUR 175 million bank loan due in October 2024[20][21][23] 3. Segment Information The company operates two main segments: hotel operations and financing business, with all revenue from the hotel segment, which turned profitable in H1 2024 Segment Performance (HKD thousands) | Segment | H1 2024 Revenue (HKD thousands) | H1 2024 Segment Profit/(Loss) (HKD thousands) | H1 2023 Segment Profit/(Loss) (HKD thousands) | | :--- | :--- | :--- | :--- | | Hotel Operations | 143,797 | 3,801 | (2,609) | | Financing Business | – | (467) | (504) | | Total | 143,797 | 3,334 | (3,113) | 4. Revenue, Other Income and Gains Total revenue for H1 2024 was HKD 143.8 million, entirely from French hotel services, with accommodation contributing HKD 123.5 million and F&B HKD 17.4 million Revenue Breakdown (HKD thousands) | Revenue Type | H1 2024 (HKD thousands) | H1 2023 (HKD thousands) | | :--- | :--- | :--- | | Provision of Accommodation Services | 123,481 | 117,288 | | Provision of Food and Beverage Services | 17,392 | 15,136 | | Other Services | 2,924 | 2,652 | | Total Revenue from Contracts with Customers | 143,797 | 135,076 | 12. Interest-Bearing Bank Borrowings A EUR 175 million bank loan, secured by hotel properties, is due on October 14, 2024, with its floating interest rate hedged to fixed via swap contracts - A critical bank loan of EUR 175 million, secured by the Group's hotel properties, is due on October 14, 2024[42] - The company uses interest rate swap contracts to hedge the loan's interest rate risk, converting the floating rate (EURIBOR + 2.2%) to a fixed rate (0.19% + 2.2%)[42][43] 16. Related Party Transactions and Balances The company provided a loan to an associate, with a net balance of approximately HKD 107 million after impairment, and recognized an impairment loss of HKD 1.5 million this period - As of June 30, 2024, the outstanding loan balance to an associate was HKD 106.8 million (after an impairment provision of HKD 105 million)[54] - An impairment loss of HKD 1.544 million was recognized on this loan during the period, compared to HKD 3.515 million in the prior period[53] Management Discussion and Analysis This section provides management's review of business performance, future outlook, and liquidity, highlighting key operational and financial developments Business Review In H1 2024, the Group's total revenue grew by 6.5% to HKD 143.8 million, achieving a net profit of HKD 7.9 million due to improved hotel performance and reduced costs - The Group turned from a HKD 1.2 million loss in the prior period to a HKD 7.9 million profit this period, primarily due to increased other income and gains, reduced finance costs from HKD 24.9 million to HKD 20.8 million, and lower expected credit loss provisions on associate loans from HKD 3.5 million to HKD 1.5 million[60] Hotel Operation Hotel operations revenue increased by 6.5% to HKD 143.8 million, turning a HKD 2.6 million loss into a HKD 3.8 million profit, driven by Paris tourism recovery and Olympic effects Hotel Operating Metrics | Operating Metric | H1 2024 | H1 2023 | | :--- | :--- | :--- | | Occupancy | 78.9% | 72.9% | | Average Room Rate | €545 | €559 | | RevPAR | €430 | €408 | Equity Investment and Other Investment The company is managing two investment recovery matters, including a loan to an associate in pre-restructuring and a HKD 97.8 million convertible bond with HKD 35 million already recovered - The pledged assets related to the loan to an associate are undergoing court-approved pre-restructuring procedures, with the company awaiting further developments[69] - A settlement agreement has been reached for the matured convertible bonds (HKD 97.8 million principal), with HKD 35 million recovered to date and HKD 62.8 million outstanding[71][72] Prospects The company faces challenges from inflation and geopolitics while planning hotel renovations, negotiating the EUR 175 million loan renewal, and exploring new business investment opportunities - A core task involves negotiating the renewal of the EUR 175 million bank loan due in October 2024[73] - The Board is reviewing a proposal for Phase II renovation of the remaining hotel rooms and internal facilities at the Paris Marriott Hotel[73] - The Board will continue to review its asset portfolio and explore investment opportunities in new business segments to enhance shareholder returns[73] Liquidity and Financial Resources As of June 30, 2024, the Group held HKD 938 million in cash, with HKD 332 million in net current liabilities and a debt-to-asset ratio of 40.4% Liquidity and Financial Resources | Indicator | June 30, 2024 | December 31, 2023 | | :--- | :--- | :--- | | Cash and Bank Balances | Approx. HKD 938 million | Approx. HKD 884 million | | Net Current Liabilities | Approx. HKD 332 million | Approx. HKD 377 million | | Debt-to-Asset Ratio | 40.4% | 41.0% | Shareholding and Corporate Governance This section details major shareholder interests, the share option scheme, and the company's corporate governance practices and compliance Persons Holding 5% or More Interests in Shares and Underlying Shares The report lists major shareholders holding 5% or more of the company's shares, including Mr. Sun Yongfeng, Jia Liang Investment, and Mr. Zhang Heyi Major Shareholder Interests | Shareholder Name | Shareholding Percentage | | :--- | :--- | | Mr. Sun Yongfeng and his spouse Ms. Meng Ya | 15.65% | | Jia Liang Investment Limited | 14.61% | | Mr. Zhang Heyi | 10.96% | | Mr. Hu Yishi | 10.17% | | Ms. Lu Xiaomei | 5.89% | | Mr. Du Shuanghua | 5.54% | Share Option Scheme A new 10-year share option scheme was adopted in 2022, with no options granted or exercised to date, and 10% of issued shares available for issuance - No share options have been granted since the 2022 share option scheme became effective, with the total number of shares available for issuance under the scheme representing 10% of the company's issued shares[51][52][83] Corporate Governance Report The company generally complies with corporate governance codes, with a noted deviation being the absence of a Chairman, whose duties are shared by executive directors - The company deviated from Corporate Governance Code provisions C.2.1 and F.2.2 during the reporting period, primarily due to the absence of a Chairman position[84]