海港企业(00051) - 2025 - 中期业绩

Performance Summary Group Performance Summary For the six months ended June 30, 2025, the Group turned from profit to loss, recorded an underlying net loss of HKD 86 million, primarily due to increased impairment provisions for development properties. After accounting for revaluation losses on investment properties, loss attributable to shareholders expanded to HKD 199 million. The Board decided not to declare an interim dividend Key Interim Performance Indicators | Indicator | 2025 H1 | 2024 H1 | | :--- | :--- | :--- | | Underlying Net (Loss)/Profit | Loss HKD 86 million | Profit HKD 74 million | | Group Loss Attributable to Shareholders | HKD 199 million | HKD 8 million | | Basic Loss Per Share | HKD 0.28 | HKD 0.01 | | Interim Dividend | Nil | Nil | - The primary reason for the performance decline was a doubling of the share of impairment provisions for development properties to HKD 211 million, compared to the same period last year's HKD 103 million[2] - Net revaluation losses on investment properties expanded to HKD 113 million, further exacerbating the Group's loss[2] Business Review Market Environment During the period, Hong Kong's consumer market remained sluggish, with pressure on retail and hospitality sectors, though visitor arrivals increased by 12% year-on-year and retail sales showed signs of stabilization. The Mainland China market faced continued adversity and intense competition in the hotel sector due to weak economic growth and subdued consumer sentiment - Hong Kong's consumer market remained sluggish, coupled with the trend of Hong Kong residents traveling abroad, posing significant pressure on the local retail and hotel industries[5] - Despite the weak market, Hong Kong's visitor arrivals increased by 12% year-on-year in the first half, and retail sales in May also grew by 2.4% year-on-year, showing initial signs of stabilization[5] - Weak economic growth and subdued consumer sentiment in Mainland China, coupled with intense competition among regional attractions, intensified operational pressure on the hotel industry[6] Segment Business Performance All business segments faced challenges. Hong Kong hotel operations, despite higher occupancy, performed poorly. Investment properties saw declines in both revenue and profit due to cautious spending. Mainland China hotel operations experienced revenue decreases due to market weakness and increased competition. Development property sales were slow, leading to significant impairment provisions - Hong Kong hotel operations (The Murray, Marco Polo Hotels) recorded higher occupancy rates but overall underperformed, requiring capital investment to enhance competitiveness[7] - Investment property revenue and operating profit decreased by 22% and 23% respectively, with a revaluation loss of HKD 113 million recorded[8] - Mainland China hotel (Niccolo Suzhou) experienced declines in both room and non-room revenue due to market weakness and pricing pressure[9] - Development property sales were slow, with only RMB 19 million in contracted sales recorded during the period, and an impairment provision of HKD 211 million made[10] Outlook Market Outlook and Group Strategy The Group anticipates that while Hong Kong's retail and tourism sectors show signs of recovery, their foundation remains fragile, and Mainland China's luxury hotel industry will continue to be affected by economic downturn and cautious consumer spending. To address these challenges, the Group's strategic focus is on enhancing operational efficiency, service quality, and optimizing its asset portfolio, leveraging a robust balance sheet to navigate market changes - Hong Kong's consumer sentiment is expected to remain fragile, with competition from surrounding regions continuing to lead to consumer outflow[11] - Mainland China's economic growth is projected to remain sluggish, and the hotel industry will face intense domestic competition and challenges from consumer outflow to outbound tourism[11] - The Group's strategic focus is on enhancing operational efficiency, service quality, and optimizing its asset portfolio, leveraging a robust balance sheet to seek long-term growth opportunities[11] Financial Review Review of 2025 Interim Results The Group's total revenue increased by 5% year-on-year to HKD 654 million, but operating profit significantly decreased by 40% to HKD 125 million. The results turned from profit to loss, recording a net loss attributable to shareholders of HKD 199 million, primarily due to increased impairment provisions for development properties and revaluation losses on investment properties Group Revenue and Operating Profit Overview (HKD Million) | Indicator | 2025 H1 | 2024 H1 | YoY Change | | :--- | :--- | :--- | :--- | | Total Revenue | 654 | 623 | +5% | | Operating Profit | 125 | 209 | -40% | Performance by Business Segment (HKD Million) | Business Segment | Item | 2025 H1 | 2024 H1 | | :--- | :--- | :--- | :--- | | Hotels | Revenue | 426 | 422 | | | Operating Loss | (29) | (43) | | Investment Properties | Revenue | 96 | 123 | | | Operating Profit | 85 | 111 | | Development Properties | Revenue | 58 | 8 | | | Operating (Loss)/Profit | (1) | 74 | - Loss attributable to associates expanded to HKD 155 million, primarily due to impairment provisions of HKD 178 million for their development properties[18] Reconciliation of Underlying Net Profit to Loss Attributable to Shareholders (HKD Million) | Item | 2025 H1 | 2024 H1 | | :--- | :--- | :--- | | Underlying Net (Loss)/Profit | (86) | 74 | | Share of Net Revaluation Loss on Investment Properties | (113) | (82) | | Loss Attributable to Shareholders | (199) | (8) | Financial Position and Liquidity Despite recording a loss, the Group's financial position remains robust. Shareholders' equity increased to HKD 14.6 billion due to investment revaluation surplus. The Group's total assets are approximately HKD 16.1 billion, with 80% located in Hong Kong. At period-end, the Group held net cash of HKD 167 million and possessed sufficient standby credit facilities and a liquid equity investment portfolio - As at June 30, 2025, shareholders' equity increased to HKD 14.597 billion, primarily due to an investment revaluation surplus of HKD 596 million[21] - The Group's total assets were HKD 16.09 billion, with Hong Kong assets accounting for 80% and Mainland China assets for 12%[22] Equity Investment Portfolio (HKD Million) | Item | June 30, 2025 | December 31, 2024 | | :--- | :--- | :--- | | By Industry | | | | Property | 2,633 | 2,171 | | Others | 418 | 334 | | By Geography | | | | Hong Kong | 1,745 | 1,498 | | Overseas | 1,306 | 1,007 | | Total | 3,051 | 2,505 | - At period-end, the Group held net cash of HKD 167 million and had total standby credit facilities of HKD 1.333 billion, of which HKD 429 million had been utilized[28][29] - Net cash inflow from operating activities was HKD 94 million, and net cash inflow from investing activities was HKD 44 million[30] Human Resources As at June 30, 2025, the Group employed approximately 1,100 staff. Remuneration policy is based on job responsibilities and market trends, with discretionary performance bonuses linked to individual and Group performance - As at June 30, 2025, the Group employed approximately 1,100 staff[32] Consolidated Financial Statements Consolidated Statement of Profit or Loss For the six months ended June 30, 2025, the Group's revenue was HKD 654 million, a year-on-year increase. However, due to fair value changes in investment properties, increased other net expenses, and expanded losses from associates, a pre-tax loss of HKD 189 million was recorded, with loss attributable to shareholders at HKD 199 million Consolidated Statement of Profit or Loss Summary (HKD Million) | Item | 2025 H1 | 2024 H1 | | :--- | :--- | :--- | | Revenue | 654 | 623 | | Operating Profit | 125 | 209 | | Fair Value Changes of Investment Properties | (113) | (82) | | Share of Post-tax Results of Associates | (155) | (113) | | (Loss)/Profit Before Tax | (189) | 3 | | Loss Attributable to Company Shareholders | (199) | (8) | Consolidated Statement of Comprehensive Income During the period, despite an operating loss of HKD 211 million, other comprehensive income recorded a positive value due to a HKD 596 million gain from fair value changes in equity investments, resulting in a total comprehensive income of HKD 405 million for the period Consolidated Statement of Comprehensive Income Summary (HKD Million) | Item | 2025 H1 | 2024 H1 | | :--- | :--- | :--- | | Loss for the Period | (211) | (17) | | Fair Value Changes of Equity Investments | 596 | (421) | | Other Comprehensive Income for the Period | 616 | (430) | | Total Comprehensive Income for the Period | 405 | (447) | Consolidated Statement of Financial Position As at June 30, 2025, the Group's total assets were HKD 16.09 billion, total liabilities were HKD 1.39 billion, and net assets were HKD 14.7 billion. Shareholders' equity increased from end-2024 to HKD 14.597 billion Consolidated Statement of Financial Position Summary (HKD Million) | Item | June 30, 2025 | December 31, 2024 | | :--- | :--- | :--- | | Non-current Assets | 14,530 | 14,325 | | Investment Properties | 4,833 | 4,946 | | Hotel Properties, Plant and Equipment | 6,425 | 6,504 | | Equity Investments | 3,051 | 2,505 | | Current Assets | 1,560 | 1,476 | | Total Assets | 16,090 | 15,801 | | Total Liabilities | (1,390) | (1,471) | | Net Assets | 14,700 | 14,330 | | Shareholders' Equity | 14,597 | 14,217 | Notes to Interim Financial Information Principal Accounting Policies and Basis of Preparation This interim financial information is prepared in accordance with Hong Kong Accounting Standard 34, with accounting policies consistent with the 2024 annual financial statements. The Group adopted amendments to Accounting Standard 21 during the period, but assessed no significant impact on its financial position - The interim financial information is prepared in accordance with Hong Kong Accounting Standard 34 "Interim Financial Reporting"[36] - Except for the adoption of Accounting Standard 21 (Revised), the accounting policies used are consistent with the 2024 annual financial statements, and this revision has no significant impact on the Group[36][37] Segment Information The Group's operating segments are classified into four sectors: Hotels, Investment Properties, Development Properties, and Investments. During the period, the Development Properties segment recorded the largest loss of HKD 202 million, while the Investments segment contributed a profit of HKD 70 million. Hotel business losses narrowed, and investment property profits declined - The Group identified four reportable operating segments: Hotels, Investment Properties, Development Properties, and Investments[39] Segment Performance Analysis (For the six months ended June 30, 2025, HKD Million) | Segment | Revenue | Operating Profit/(Loss) | Profit/(Loss) Before Tax | | :--- | :--- | :--- | :--- | | Hotels | 426 | (29) | (29) | | Investment Properties | 96 | 85 | (28) | | Development Properties | 58 | (1) | (202) | | Investments | 70 | 70 | 70 | | Group Total | 654 | 125 | (189) | Other Disclosures Corporate Governance and Securities Transactions During the reporting period, the Company complied with all applicable provisions of the Corporate Governance Code, with the sole exception of the roles of Chairman and Chief Executive Officer being held by the same individual, which the Board believes contributes to efficient execution of long-term strategies. Furthermore, neither the Company nor any of its subsidiaries purchased, sold, or redeemed any of the Company's listed securities during the period - The Company complied with the Corporate Governance Code, with a deviation where the Chairman and Chief Executive Officer roles are held by the same person, an arrangement the Board considers more effective[56] - During the financial period under review, neither the Company nor its subsidiaries purchased, sold, or redeemed any of the Company's listed securities[57]