Financial Performance - The net profit attributable to shareholders, excluding revaluation and depreciation of land, properties, and equipment, for the six months ended June 30, 2024, was HKD 61,000,000, an increase of HKD 12,000,000 (+25%) compared to HKD 49,000,000 for the same period in 2023[2][4]. - Total revenue for the six months ended June 30, 2024, was HKD 319,575,000, an increase of 27.2% compared to HKD 251,033,000 for the same period in 2023[30]. - The company reported a net loss of HKD 104,053,000 for the six months ended June 30, 2024, compared to a profit of HKD 3,544,000 in the same period last year[30]. - Basic loss per share was HKD (18.15), a significant decline from HKD 1.79 in the previous year[30]. - Total comprehensive loss for the period was HKD 117,371,000, compared to a comprehensive income of HKD 57,256,000 in the prior year[31]. - The group reported a pre-tax loss of HKD 96,368,000 for the six months ended June 30, 2024, compared to a profit of HKD 9,039,000 for the same period in 2023[47]. Revenue Breakdown - Hotel revenue for the group was HKD 260,000,000 for the six months ended June 30, 2024, representing a 36% increase from HKD 191,000,000 for the same period in 2023[7]. - The total revenue of the Huada Hotel Group increased by 36%, from approximately HKD 182,000,000 to approximately HKD 246,000,000 during the reporting period[9]. - Customer contracts revenue reached HKD 259,757,000, up 36.3% from HKD 190,509,000 year-over-year[30]. - The company’s rental income and related services for the six months ended June 30, 2024, amounted to HKD 252,270,000, up from HKD 188,518,000 in the same period last year[45]. - The property investment segment generated revenue of HKD 59,818,000 for the six months ended June 30, 2024, a slight decrease of 1.1% from HKD 60,479,000 in the previous year[47]. Expenses and Costs - The administrative expenses (excluding depreciation) for the period were HKD 28,500,000, a decrease from HKD 55,100,000 for the same period in 2023[10]. - The company reported a depreciation expense of HKD 82,458,000 for property, plant, and equipment, compared to HKD 49,320,000 in the previous year[38]. - The group incurred finance costs of HKD 31,732,000 for the six months ended June 30, 2024, compared to HKD 26,510,000 for the same period in 2023[54]. Assets and Liabilities - As of June 30, 2024, the group's total debt was HKD 1,037,000,000, maintaining a debt-to-equity ratio of 12%[11]. - The group’s total assets were revalued at HKD 14,490,000,000 as of June 30, 2024, down from HKD 14,570,000,000 at the end of 2023[11]. - The total liabilities of the group as of June 30, 2024, were HKD 1,336,765,000, slightly down from HKD 1,342,026,000 as of December 31, 2023[52]. - The company’s total equity as of June 30, 2024, was HKD 8,442,665,000, down from HKD 8,560,036,000 at the end of 2023[34]. Shareholder Information - As of June 30, 2024, major shareholders include Omnico with 350,043,999 shares, representing 60.38% ownership, and Shunhao Holdings with 383,685,999 shares, representing 66.18% ownership[19]. - Mercury Fast, a wholly-owned subsidiary of Huada Hotel, holds 68,139,510 shares, accounting for 11.75% of the total shares[20]. - Li Peiling is deemed to have an interest in 385,395,999 shares, which is 66.48% due to her spouse's holdings[21]. Corporate Governance - The independent review of the interim results for the six months ending June 30, 2024, was conducted by Deloitte, ensuring compliance with Hong Kong accounting standards[22]. - The company has adhered to the corporate governance code, with the chairman also serving as the CEO, which the board believes provides consistent leadership[23]. - The company has adopted the standard code of conduct for securities trading, confirming compliance by all directors during the reporting period[24]. - There were changes in the board of directors, with Zheng Huijun resigning from executive positions after the annual general meeting on May 24, 2024[25]. Market Conditions - Approximately 11 million overnight visitors came to Hong Kong, with 7 million from China, compared to 15 million in the same period in 2019[12]. - The group has nine revenue-generating hotels, facing challenges due to a weak Chinese economy and high exchange rates affecting the recovery of Chinese tourist numbers[13]. - The group is focused on increasing revenue and controlling costs amid challenges in the hotel and rental income sectors[13]. Cash Flow and Investments - The company incurred a net cash outflow from investing activities of HKD 226,013,000, compared to HKD 1,300,000 in the prior period[39]. - The company’s cash and cash equivalents decreased by HKD 148,047,000, resulting in an ending balance of HKD 184,638,000[39]. - The company purchased property, plant, and equipment amounting to HKD 12,985,000 for the six months ended June 30, 2024, compared to HKD 4,424,000 for the same period in 2023[60]. Foreign Exchange and Risks - The company’s bank loans are primarily denominated in HKD and GBP, exposing it to foreign exchange risks[11]. - The company experienced a foreign exchange loss of HKD 13,773,000 due to currency translation differences[31]. Employee Information - The group’s employee count increased to 622 as of June 30, 2024, up from 562 at the end of 2023[11]. - The total compensation for key management personnel increased to 10,649 thousand HKD for the six months ended June 30, 2024, up from 9,666 thousand HKD in the prior period[67].
顺豪物业(00219) - 2024 - 中期财报