Financial Performance - The company reported a significant increase in revenue, with a year-on-year growth of 15% in the first half of 2024[1]. - Revenue for the six months ended June 30, 2024, was HKD 1,392.0 million, a decrease of 13.1% compared to HKD 1,602.0 million for the same period in 2023[59]. - Gross profit for the same period was HKD 414.2 million, down 35.4% from HKD 641.8 million year-over-year[59]. - The net loss attributable to equity holders of the parent was HKD 1,021.3 million, compared to a loss of HKD 646.5 million in the prior period, representing a 57.9% increase in losses[61]. - The company reported a total comprehensive loss of HKD 1,073.6 million for the period, compared to HKD 817.7 million in the previous year[61]. - The pre-tax loss for the six months ended June 30, 2024, was HKD 676.3 million, compared to a loss of HKD 383.1 million for the same period in 2023[92]. User and Market Growth - User data showed a 20% increase in active users compared to the previous year, reaching a total of 1.2 million users[1]. - Market expansion plans include entering two new international markets by Q3 2024, aiming for a 5% market share in each[1]. - The total number of visitors to Hong Kong reached 21,200,000 in the first half of 2024, a year-on-year increase of 64.2%, with 16,100,000 visitors from mainland China[15]. Strategic Initiatives - The company provided a positive outlook for the next quarter, projecting a revenue growth of 10% to 12%[1]. - New product launches are expected to contribute an additional $50 million in revenue by the end of the fiscal year[1]. - The company is considering strategic acquisitions to enhance its portfolio, with a budget of $30 million earmarked for potential targets[1]. - The board of directors emphasized the importance of sustainability in future business strategies, aligning with global trends[1]. Operational Challenges - For the six months ended June 30, 2024, the group recorded a consolidated loss attributable to shareholders of HKD 676.3 million, compared to a loss of HKD 383.1 million in the same period of 2023[10]. - The group's overall business operations maintained positive performance; however, the contribution from property sales significantly decreased due to a weakening real estate market in Hong Kong and mainland China[10]. - The company continues to face challenges in the operating environment, particularly in the real estate sector[10]. Financial Position and Cash Flow - The net cash flow from operating activities during the review period was HKD 21,000,000, a decrease from HKD 368,100,000 in the previous year[53]. - As of June 30, 2024, the group's cash and bank deposits totaled HKD 1,623,200,000, down from HKD 2,180,500,000 as of December 31, 2023[54]. - The group's debt, after deducting cash and bank deposits, was HKD 18,287,400,000, an increase from HKD 17,937,900,000 as of December 31, 2023[54]. - The debt-to-asset ratio as of June 30, 2024, was 48.1%, up from 45.0% as of December 31, 2023[54]. Property and Development Projects - The group has ongoing property development projects, including commercial/residential projects in Shau Kei Wan and a comprehensive commercial/residential redevelopment project on Castle Peak Road[13]. - The project at We Go MALL has a site area of 5,090 square meters (54,788 square feet) and a total gross floor area of 15,270 square meters (164,364 square feet), which has been generating stable rental income since its opening in 2018[29]. - The company is closely monitoring market conditions to plan the sale of remaining units in the luxury residential project, Regal Summit, which includes 4 garden houses and 81 apartment units[12]. Hotel Operations - The hotel business, operated by Regal Hotels International Holdings Limited, showed stable performance with an EBITDA of HKD 78 million, down from HKD 284.6 million in the same period last year, reflecting a year-on-year decline of approximately 72.5%[10]. - The average hotel occupancy rate increased from 80.0% in 2023 to 83.0% in 2024, with actual average room rates rising by 5.3%, leading to a 9.2% year-on-year increase in Revenue Per Available Room (RevPAR)[15]. - The hotel business in Hong Kong showed stable operational performance, with profit contribution from hotel operations (before depreciation) increasing by over 60% compared to the same period last year[14]. Financial Management - The company has entered into multiple interest rate swap transactions to convert part of its floating-rate bank loans to fixed rates, aiming to reduce financial costs in the short term[24]. - The interest expenses for the period amounted to HKD 593,500,000, compared to HKD 471,100,000 in the previous year[53]. - The company plans to continue selling non-core assets to enhance liquidity and financial strength amid a challenging macroeconomic environment[26]. Shareholding and Governance - The company holds 90,078,014 shares, representing approximately 74.55% of the issued shares[119]. - The company’s directors collectively own 740,860,803 shares, which is about 74.55% of the total issued shares[119]. - The audit committee has reviewed the unaudited condensed consolidated financial statements for the six months ending June 30, 2024, in conjunction with external auditors[129].
百利保控股(00617) - 2024 - 中期财报