远东酒店实业(00037) - 2025 - 年度业绩

Performance Announcement Summary Financial Performance For FY2025, Far East Hotels and Entertainment Limited's revenue decreased to HKD 18.54 million, with net loss widening to HKD 35.36 million due to investment property fair value losses, maintaining low financial leverage Consolidated Statement of Profit or Loss and Other Comprehensive Income In FY2025, total revenue from continuing operations decreased by 21.0% to HKD 18.54 million, with pre-tax loss widening to HKD 28.66 million due to investment property fair value reduction, resulting in a total annual loss of HKD 35.36 million and basic loss per share of HKD 4.70 cents Consolidated Statement of Profit or Loss Key Metrics (HKD) | Metric | 2025 | 2024 (Restated) | YoY Change | | :--- | :--- | :--- | :--- | | Revenue from Continuing Operations | 18,535,454 | 23,470,485 | -21.0% | | Gross Profit | 4,243,085 | 6,866,562 | -38.2% | | Net Decrease in Fair Value of Investment Properties | (24,397,892) | (10,481,854) | -132.8% | | Loss Before Tax | (28,656,709) | (28,147,444) | +1.8% | | Loss for the Year (including Discontinued Operations) | (35,358,842) | (33,017,227) | +7.1% | | Basic Loss Per Share (HK cents) | (4.70) | (4.39) | +7.1% | Consolidated Statement of Financial Position As of March 31, 2025, the Group's total assets decreased from HKD 364 million to HKD 323 million, primarily due to reduced investment property values, while total liabilities decreased from HKD 26.79 million to HKD 23.00 million, with shareholders' equity decreasing to HKD 300 million, maintaining a robust overall financial structure Consolidated Statement of Financial Position Key Metrics (HKD) | Metric | March 31, 2025 | March 31, 2024 | | :--- | :--- | :--- | | Non-current Assets | 284,486,986 | 315,497,371 | | Current Assets | 38,519,809 | 48,807,081 | | Total Assets | 323,006,795 | 364,304,452 | | Current Liabilities | 21,347,878 | 24,557,751 | | Non-current Liabilities | 1,654,574 | 2,233,891 | | Total Liabilities | 23,002,452 | 26,791,642 | | Equity Attributable to Owners of the Company | 300,004,343 | 337,512,810 | Segment Performance and Business Review This fiscal year, the Group faced business challenges with total revenue declining by 20.3%, as continuing operations saw hotel revenue decline and significant losses from investment property fair value changes, while securities investment turned profitable, and the discontinued serviced apartment rental business in mainland China also recorded a loss FY2025 Overall Performance Overview (HKD) | Metric | 2025 | 2024 | YoY Change | | :--- | :--- | :--- | :--- | | Total Revenue | 23,600,000 | 29,600,000 | -20.3% | | Gross Profit | 2,600,000 | 5,300,000 | -50.9% | | Loss Attributable to Owners of the Company | 35,400,000 | 33,000,000 | +7.3% | Continuing Operations Revenue from continuing operations decreased by 21.3% year-on-year to HKD 18.50 million, with gross profit down 39.1%, as hotel business revenue declined and property investments incurred losses due to fair value decreases, while securities investment business performed strongly, turning profitable Segment Profit (Loss) (HKD) | Business Segment | 2025 | 2024 (Restated) | | :--- | :--- | :--- | | Hotels Operated in Hong Kong | 34,317 | 1,232,790 | | Property Investments in Hong Kong | (25,243,509) | (15,450,138) | | Property Investments Overseas | (797,922) | 1,833,501 | | Securities Investment and Trading | 6,060,394 | (1,817,495) | - Warwick Hotel's total revenue was approximately HKD 16 million, a 24.2% year-on-year decrease, with both room and food and beverage revenues declining by over 22%[48] - Losses in the investment property segments in Hong Kong and Fiji were primarily due to fair value decreases of HKD 22.30 million and HKD 2.10 million respectively[49] - The securities investment and trading segment recorded a net profit of approximately HKD 6.10 million, compared to a net loss of HKD 1.80 million in the prior year, mainly benefiting from a HKD 5.40 million increase in the fair value of financial assets[50] Discontinued Operations The Group terminated its serviced apartment rental business in mainland China this year, which recorded revenue of HKD 5.10 million and a net loss of HKD 5.40 million, primarily due to reduced income from lease expiry and increased legal fees related to the Beijing property - During the year, the Group returned the leased property to the landlord, thus terminating the serviced apartment rental business operated in mainland China[42] Discontinued Operations Performance (HKD) | Metric | 2025 | 2024 | | :--- | :--- | :--- | | Revenue | 5,065,986 | 6,168,336 | | Loss Before Tax | (5,419,868) | (4,905,308) | | Loss for the Year | (6,284,875) | (4,431,253) | Significant Events and Outlook The Group is actively advancing the large-scale residential development project in Kau Wa Keng, Hong Kong, with an expanded revised application submitted, while also managing ongoing legal disputes related to the terminated Beijing serviced property, anticipating a challenging business environment and adopting prudent financial and operational strategies Kau Wa Keng Project The Group is actively progressing the Kau Wa Keng integrated development project in Kwai Chung, Hong Kong, having submitted a revised application in April 2025 to increase the total gross floor area to approximately 314,000 square meters and provide around 7,052 residential units, along with retail and social welfare facilities, to optimize project value - The Town Planning Board approved the preliminary scheme in July 2023, allowing for 5,973 residential units[56][57] - In April 2025, the company submitted a revised application proposing to increase residential units to approximately 7,052 and expand non-residential areas for retail, heritage building revitalization, and social welfare facilities[58][59] Beijing Serviced Property Legal Dispute The Group is involved in ongoing legal disputes with the landlord regarding the terminated Beijing serviced property, which was returned in March 2025, as the Group seeks compensation for non-renewal losses while the landlord has raised new rent claims, with legal proceedings continuing - The dispute arose from disagreements over rent adjustments and renewal rights, with the property lease expiring in September 2024[52] - The property was returned to the landlord on March 17, 2025, which does not affect the Group's compensation claims against the landlord, who subsequently raised new claims against the Group[54][67] Liquidity and Financial Resources The Group maintains a prudent financial management strategy, with cash and bank balances of HKD 7.90 million and bank borrowings of HKD 8.40 million as of March 31, 2025, resulting in a low debt-to-capital ratio of approximately 2.8% Financial Resources Overview (HKD) | Metric | March 31, 2025 | March 31, 2024 | | :--- | :--- | :--- | | Bank Balances and Cash | 7,900,000 | 22,200,000 | | Bank Borrowings Balance | 8,400,000 | 8,400,000 | | Total Shareholders' Funds | 300,000,000 | 337,500,000 | | Debt-to-Capital Ratio | 2.8% | 2.5% | Outlook The Group anticipates the business environment in the coming year will remain complex due to geopolitical developments, evolving consumer trends, and global economic conditions, focusing on maintaining adaptability and flexibility while managing operations prudently with a long-term perspective - The Group expects geopolitical developments, evolving consumer trends, and global economic conditions may continue to impact the business environment in the coming year[60] - The Group will focus on maintaining adaptability and flexibility, continuing to manage its business prudently, preparedly, and with a long-term perspective[60] Corporate Governance and Other Information The Group largely complied with corporate governance codes, though the Chairman and CEO roles are held by the same individual, which the Board believes enhances decision-making efficiency, and no dividends were declared for the fiscal year Dividend Policy The Board resolved not to recommend a final dividend for the fiscal year ended March 31, 2025, consistent with the previous fiscal year's policy - The Company neither paid nor proposed any dividends to its ordinary shareholders for the years ended March 31, 2025, and 2024[40][44] Corporate Governance During the reporting period, the company complied with most corporate governance code provisions, with one deviation where Mr. David Chiu serves as both Chairman and CEO, an arrangement the Board believes ensures strong unified leadership and enhances efficiency in business decisions and strategy execution, with sufficient checks and balances - The company deviated from Corporate Governance Code provision C.2.1, which stipulates that the roles of Chairman and Chief Executive should be separate[74] - The Board believes that vesting the responsibilities of Chairman, Managing Director, and Chief Executive in the same individual ensures strong and consistent leadership for the Group, enhancing the effectiveness and efficiency of business decisions and strategy planning and execution[76]