Financial Performance - The total revenue from hotel operations for the year was approximately HKD 41.7 million, a decrease of about 28.6% compared to the previous fiscal year due to renovation works at the Singapore hotel [10]. - The loss attributable to owners for the year was approximately HKD 146.5 million, an increase of about 58.2 million or approximately 66.0% compared to the previous fiscal year [10]. - The increase in loss was primarily due to a revenue decrease of approximately HKD 16.7 million and an increase in gross profit of approximately HKD 19.8 million [10]. - Room revenue for the year was approximately HKD 29.2 million, accounting for about 70.1% of total hotel operating revenue, down from 82.3% in the previous year [18]. - The average room rate increased to HKD 706.5, compared to HKD 599.3 in the previous year, while the occupancy rate decreased to 64% from 70.0% [19]. - The group reported a loss of HKD 150.91 million for the year ending December 31, 2024, with a net current liability of HKD 499.60 million [44]. - The company incurred a loss of approximately HKD 150.9 million for the year ending December 31, 2024, with a net current liability of about HKD 499.6 million [114]. Debt and Financing - Financing costs for interest-bearing other borrowings increased by approximately HKD 27.0 million during the year [10]. - As of December 31, 2024, the total interest-bearing bank and other borrowings amounted to HKD 427.86 million, with an additional HKD 83.93 million in other financial liabilities [44]. - The group’s total interest-bearing bank borrowings and other financial liabilities increased to HKD 520.81 million as of February 28, 2025 [45]. - The company entered into a financing agreement providing a loan of SGD 75 million at an annual interest rate of 9%, with additional terms for interest adjustments [163]. - The company has drawn down SGD 75 million from the financing agreement to repay convertible bonds and fund operational expenses [164]. - HHI is required to repay the loan financing in full one year from the date of drawdown, with a prepayment of SGD 3,025,000 due on December 26, 2023 [170]. - HHI agreed to defer and waive interest payments totaling SGD 4,114,257.67 until February 26, 2024, with an annual interest rate of 11% [171]. Operational Outlook - The company maintains a cautiously optimistic outlook for the future, particularly with the expected completion of renovation works by the end of 2025 [11]. - The tourism industry is anticipated to recover rapidly as global vaccination efforts continue and travel restrictions are gradually eased [11]. - The company aims to enhance overall asset returns and corporate value moving forward [11]. - The group’s Singapore operations are gradually recovering post-COVID-19, with expectations of generating operating profits from the Huaxing Hotel [49]. - The company is actively seeking refinancing to stabilize its financial foundation, with a focus on its hotel portfolio and potential expansion plans based on current market conditions [58]. - The company is excited about future opportunities, including the potential development of the Bintan Resort, while emphasizing the need for timely refinancing [60]. Corporate Governance - The board of directors consists of nine members, including two executive directors and four non-executive directors, reflecting a stable governance structure [67]. - The company is dedicated to high standards of corporate governance to align with shareholder interests [64]. - The board confirmed its responsibility for preparing the consolidated financial statements, ensuring they reflect the group's financial position and performance accurately [90]. - The company has established an enterprise risk management framework to effectively implement risk management, focusing on managing rather than eliminating risks [91]. - The board is responsible for ensuring the effectiveness of the risk management and internal control systems, with annual reviews conducted [92]. - The company has established a written policy regarding conflict of interest management, including examples and action plan guidelines [108]. Employee and Workforce - The total employee cost for the year is approximately HKD 26.9 million, an increase from approximately HKD 17.0 million in 2023, primarily due to an increase in the number of employees from 50 to 60 [30]. - The group has a total of 60 employees as of December 31, 2024, reflecting a commitment to maintaining a competitive workforce [30]. - As of December 31, 2024, approximately 48% of the company's employees, including senior management, are female, achieving gender diversity goals [77]. Risk Management - The group has implemented various risk management measures to mitigate operational and financial risks, including monitoring competitors and macroeconomic conditions [39]. - The company has implemented clear internal control policies and procedures, defining responsibilities and establishing a whistleblowing mechanism [102]. - An independent internal control consultant has been appointed to conduct an annual review of the internal control system [103]. Shareholder Information - The company does not recommend the distribution of a final dividend for the year, consistent with the previous year [36]. - The company has zero distributable reserves as of December 31, 2024, according to the Companies Ordinance [149]. - The company held its annual general meeting on May 31, 2024, with all directors present either in person or electronically [121]. Strategic Initiatives - The group is considering seeking potential investors to fund the completion or acquisition of the Bintan assets, which have faced delays due to financial constraints and COVID-19 [20]. - The company is reviewing its hotel and investment portfolio, considering financing options through debt or equity issuance, and exploring strategic partnerships to enhance project profitability [53]. - The major shareholder has reaffirmed their commitment to provide sufficient financial support to alleviate operational funding pressures [54].
华星控股(08237) - 2024 - 年度财报