廖创兴企业(00194) - 2025 - 中期业绩

Company Information and Announcements Company Profile and Interim Results Announcement The Board of Directors of Liu Chong Hing Investment Limited (Stock Code: 00194) announces the unaudited interim results of the Company and its subsidiaries for the six months ended June 30, 2025 - Company name: Liu Chong Hing Investment Limited, Stock Code: 00194[2] - The announcement covers the unaudited interim results for the six months ended June 30, 2025[2] Condensed Consolidated Financial Statements Condensed Consolidated Statement of Profit or Loss and Other Comprehensive Income The Group achieved significant performance improvement for the six months ended June 30, 2025, turning a substantial loss in the prior period into a profit, driven by revenue growth and enhanced comprehensive income Key Data from Condensed Consolidated Statement of Profit or Loss (Six Months Ended June 30) | Indicator | 2025 (HK$ thousand) | 2024 (HK$ thousand) | | :--- | :--- | :--- | | Revenue | 551,917 | 363,686 | | Direct costs | (266,177) | (126,828) | | Administrative and operating expenses | (216,029) | (171,639) | | Other losses and gains | (66,309) | (362,123) | | Finance costs | (70,966) | (98,229) | | Share of results of joint ventures | 65,059 | (47,052) | | Profit (Loss) before tax | 1,637 | (439,061) | | Income tax credit | 12,080 | 20,575 | | Profit (Loss) for the period | 13,717 | (418,486) | | Profit (Loss) attributable to owners of the Company | 16,600 | (416,720) | | Profit (Loss) attributable to non-controlling interests | (2,883) | (1,766) | Key Data from Condensed Consolidated Statement of Other Comprehensive Income (Six Months Ended June 30) | Indicator | 2025 (HK$ thousand) | 2024 (HK$ thousand) | | :--- | :--- | :--- | | Profit (Loss) for the period | 13,717 | (418,486) | | Fair value loss on equity instruments at fair value through other comprehensive income | (5,894) | (2,633) | | Exchange differences arising from translation of overseas operations | 78,600 | (45,154) | | Share of other comprehensive income (after tax) of joint ventures | 4,406 | (1,464) | | Other comprehensive income (expense) for the period (after tax) | 77,112 | (49,251) | | Total comprehensive income (expense) for the period | 90,829 | (467,737) | | Total comprehensive income (expense) attributable to owners of the Company | 84,898 | (464,725) | | Total comprehensive income (expense) attributable to non-controlling interests | 5,931 | (3,012) | - Profit for the period significantly improved from a loss of HK$418,486 thousand in 2024 to a profit of HK$13,717 thousand in 2025[3][5] - Total comprehensive income shifted from an expense of HK$467,737 thousand in 2024 to an income of HK$90,829 thousand in 2025[5] Condensed Consolidated Statement of Financial Position As of June 30, 2025, the Group's financial position remained stable, with slight increases in total assets and equity, and a reduction in current liabilities Key Data from Condensed Consolidated Statement of Financial Position (As of June 30) | Indicator | 2025 (HK$ thousand) | 2024 (HK$ thousand) | | :--- | :--- | :--- | | Non-current assets | | | | Investment properties | 9,812,953 | 9,828,109 | | Property, plant and equipment | 660,261 | 653,163 | | Investments in joint ventures | 578,934 | 534,545 | | Total non-current assets | 11,332,516 | 11,313,017 | | Current assets | | | | Properties under development for sale | 465,444 | 462,177 | | Properties held for sale | 465,950 | 644,947 | | Bank balances and cash | 1,919,202 | 2,034,271 | | Total current assets | 3,333,765 | 3,578,557 | | Current liabilities | | | | Trade and other payables | 363,391 | 442,744 | | Borrowings—due within one year | 1,134,514 | 1,225,123 | | Total current liabilities | 1,635,901 | 1,862,116 | | Non-current liabilities | | | | Borrowings—due after one year | 2,132,870 | 2,136,444 | | Total non-current liabilities | 2,466,296 | 2,491,844 | | Equity and reserves | | | | Equity attributable to owners of the Company | 10,527,063 | 10,506,524 | | Non-controlling interests | 37,021 | 31,090 | | Total equity | 10,564,084 | 10,537,614 | - Total assets less current liabilities slightly increased from HK$13,029,458 thousand as of December 31, 2024, to HK$13,030,380 thousand as of June 30, 2025[6] - Net current assets slightly decreased from HK$1,716,441 thousand as of December 31, 2024, to HK$1,697,864 thousand as of June 30, 2025[6] - Equity attributable to owners of the Company increased from HK$10,506,524 thousand as of December 31, 2024, to HK$10,527,063 thousand as of June 30, 2025[7] Notes to the Condensed Consolidated Financial Statements Basis of Preparation and Accounting Policies The condensed consolidated financial statements are prepared in accordance with HKAS 34 and the HKEX Listing Rules, presented in HK$. Accounting policies and methods remain consistent with the prior year, with no significant impact from new HKFRS amendments - The financial statements are prepared in accordance with HKAS 34 and the Listing Rules, with the functional currency being HK$[8][9] - Accounting policies for the current period are consistent with the prior year, and new HKFRS amendments (e.g., HKAS 21 amendments) have no significant impact on financial performance or position[10][11] Segment Information The Group's operations are divided into six reportable segments: property investment, property development, property management, financial investments, trading and manufacturing, and hotel operations. For the six months ended June 30, 2025, property development and financial investments segments saw significant revenue and profit growth, while property investment recorded a loss due to fair value changes - The Group's six reportable segments are: property investment, property development, property management, financial investments, trading and manufacturing, and hotel operations[13] Segment Revenue and Profit (Loss) Analysis (Six Months Ended June 30) | Segment | 2025 Revenue (HK$ thousand) | 2025 Segment Profit (Loss) (HK$ thousand) | 2024 Revenue (HK$ thousand) | 2024 Segment Profit (Loss) (HK$ thousand) | | :--- | :--- | :--- | :--- | :--- | | Property investment | 159,952 | (5,477) | 156,099 | (258,753) | | Property development | 215,096 | (31,480) | 8,978 | (16,074) | | Property management | 24,412 | 4,881 | 24,278 | 7,334 | | Financial investments | 42,735 | 35,746 | 38,148 | (6,517) | | Trading and manufacturing | 40,179 | 2,631 | 43,637 | 2,821 | | Hotel operations | 77,795 | 1,243 | 101,271 | (22,591) | | Total segments | 560,169 | 7,544 | 372,411 | (293,780) | - Property development segment revenue significantly increased from HK$8,978 thousand in 2024 to HK$215,096 thousand in 2025[15][16] - Financial investments segment shifted from a loss of HK$6,517 thousand in 2024 to a profit of HK$35,746 thousand in 2025[15][16] - Fair value loss on property investment segment significantly decreased from HK$334,301 thousand in 2024 to HK$77,320 thousand in 2025[15][16] Income Tax Credit Total income tax credit for the period was HK$12,080 thousand, a decrease from the prior period, mainly due to reduced deferred tax credits. Hong Kong profits tax is 16.5%, China corporate income tax is 25%, and UK statutory tax rate is 25% Income Tax Credit (Six Months Ended June 30) | Indicator | 2025 (HK$ thousand) | 2024 (HK$ thousand) | | :--- | :--- | :--- | | Hong Kong profits tax for the period | 3,313 | 3,350 | | China corporate income tax | 920 | 339 | | UK corporation tax | – | 1,207 | | Over-provision in prior years: Hong Kong profits tax | (6) | (3) | | China land appreciation tax | 3,682 | 630 | | Deferred tax | (19,989) | (26,098) | | Total income tax credit | (12,080) | (20,575) | - Total income tax credit decreased from HK$20,575 thousand in 2024 to HK$12,080 thousand in 2025[18] - Hong Kong profits tax is calculated at 16.5%, China corporate income tax rate is 25%, and the UK statutory tax rate is 25%[18] Basic Earnings (Loss) Per Share For the six months ended June 30, 2025, basic earnings per share attributable to owners of the Company was HK$0.04, a significant improvement from a loss of HK$1.10 per share in the prior period. The number of ordinary shares outstanding remained unchanged, with no potential ordinary shares, thus no diluted EPS was presented Basic Earnings (Loss) Per Share | Indicator | 2025 | 2024 | | :--- | :--- | :--- | | Profit (Loss) attributable to owners of the Company | HK$16,600,000 | HK$(416,720,000) | | Number of ordinary shares outstanding | 378,583,440 shares | 378,583,440 shares | | Basic earnings (loss) per share | HK$0.04 | HK$(1.10) | - Basic earnings per share improved from a loss of HK$1.10 in 2024 to a profit of HK$0.04 in 2025[3][19] - No potential ordinary shares existed in either period, thus no diluted earnings per share was presented[20] Dividends The Company recognized and paid a final dividend of HK$0.17 per share for 2024 and declared an interim dividend of HK$0.11 per share for 2025, consistent with the prior period Dividends Declared and Payable (Six Months Ended June 30) | Dividend Type | 2025 (HK$ thousand) | 2024 (HK$ thousand) | | :--- | :--- | :--- | | Final dividend declared and paid for 2024 (HK$0.17 per share) | 64,359 | 64,359 | | Interim dividend declared for 2025 (HK$0.11 per share) | 41,644 | 41,644 | - The Board has approved an interim cash dividend of HK$0.11 per share, payable on September 12, 2025[22][27] - Share transfer registration will be suspended from September 2 to September 4, 2025[28] Trade and Other Receivables As of June 30, 2025, the Group's total trade and other receivables amounted to HK$226,015 thousand, with HK$196,022 thousand classified as current. The aging analysis of trade receivables indicates most are due within 90 days Trade and Other Receivables (As of June 30) | Indicator | 2025 (HK$ thousand) | 2024 (HK$ thousand) | | :--- | :--- | :--- | | Trade receivables | 27,690 | 34,115 | | Lease receivables | 7,871 | 4,902 | | Deposits paid | 4,237 | 5,271 | | Prepayments and other receivables | 134,856 | 126,993 | | Value-added tax recoverable | 51,361 | 50,053 | | Total | 226,015 | 221,334 | | Current portion | 196,022 | 194,098 | | Non-current portion | 29,993 | 27,236 | Aging Analysis of Trade and Lease Receivables (As of June 30) | Aging | 2025 (HK$ thousand) | 2024 (HK$ thousand) | | :--- | :--- | :--- | | Within 30 days | 14,366 | 13,445 | | 31 to 90 days | 15,886 | 17,086 | | Over 90 days | 5,309 | 8,486 | | Total | 35,561 | 39,017 | - The average credit period granted to trade customers or tenants is 30-90 days[23] Trade and Other Payables As of June 30, 2025, the Group's total trade and other payables were HK$456,624 thousand, with current liabilities amounting to HK$363,391 thousand. The aging analysis of trade payables shows all amounts are due within 30 days Trade and Other Payables (As of June 30) | Indicator | 2025 (HK$ thousand) | 2024 (HK$ thousand) | | :--- | :--- | :--- | | Trade payables | 8,810 | 9,158 | | Construction costs payable and retention money | 82,358 | 143,607 | | Deposits received for investment properties | 118,908 | 121,321 | | Rental received in advance | 8,502 | 9,351 | | Deposits received | 148,486 | 147,444 | | Other payables | 89,560 | 107,016 | | Total | 456,624 | 537,897 | | Less: Current liabilities due within twelve months | (363,391) | (442,744) | | Non-current liabilities due after twelve months | 93,233 | 95,153 | Aging Analysis of Trade Payables (As of June 30) | Aging | 2025 (HK$ thousand) | 2024 (HK$ thousand) | | :--- | :--- | :--- | | Within 30 days | 8,810 | 9,158 | - Construction costs payable and retention money decreased from HK$143,607 thousand in 2024 to HK$82,358 thousand in 2025[25] Management Discussion and Analysis Overall Performance Review The Group achieved significant performance improvement for the period ended June 30, 2025, shifting from a loss of approximately HK$418.5 million in the prior period to a profit of approximately HK$13.7 million, primarily due to reduced fair value losses on investment properties and increased share of results of joint ventures - The Group's unaudited consolidated profit was approximately HK$13.7 million, an increase of approximately HK$432.2 million compared to a loss of approximately HK$418.5 million in the prior period[29] - The performance change primarily resulted from reduced fair value losses on investment properties and an increased share of results of joint ventures[29] - Revenue primarily derived from property investment, property development, property management, financial investments, trading and manufacturing, and hotel operations[29] Property Investment The Group's property investment portfolio performed steadily during the reporting period, with overall rental income growing by 3% to HK$159.1 million. Hong Kong properties showed mixed performance, China Shanghai property rental income decreased, while UK London property rental income increased - Overall gross rental income was approximately HK$159.1 million, an increase of approximately HK$4.1 million (3%) compared to the prior period[32] - The overall occupancy rate of major investment properties remained at 83.6%[33] Overall Rental Income and Occupancy Rate For the period ended June 30, 2025, the Group recorded gross rental income of approximately HK$159.1 million, a 3% year-on-year increase, with an overall occupancy rate maintained at 83.6% - Gross rental income was approximately HK$159.1 million, a year-on-year increase of 3%[32] - Overall occupancy rate remained at 83.6%[33] Hong Kong Property Investment Hong Kong's major investment properties showed mixed performance: Chong Hing Square rental income grew 3.8% with 100% occupancy; Chong Hing Bank Centre rental income decreased 7.8% due to renewal rent adjustments; Sheung Wan Square rental income decreased 16% but achieved 89% occupancy; Fook Wai Court rental income grew 25% with 100% occupancy; and the hotel property at 181-183 Connaught Road West secured a new ten-year lease, generating HK$13.2 million in rental income Rental Income of Major Hong Kong Properties (Six Months Ended June 30) | Property Name | 2025 Rental Income (HK$ thousand) | 2024 Rental Income (HK$ thousand) | Year-on-Year Change | | :--- | :--- | :--- | :--- | | Chong Hing Square | 30,400 | 29,300 | +3.8% | | Chong Hing Bank Centre | 36,500 | 39,600 | -7.8% | | Sheung Wan Square | 6,800 | 8,100 | -16.0% | | Fook Wai Court | 2,000 | 1,600 | +25.0% | | 181-183 Connaught Road West | 13,200 | N/A | New | - Chong Hing Square achieved 100% occupancy[34] - Sheung Wan Square shopping arcade occupancy rate was 89%, with all car park spaces leased out[36] - Fook Wai Court property achieved 100% occupancy[37] - The property at 181-183 Connaught Road West has entered into a ten-year hotel lease agreement with an associate of Guangdong Yuehai Holdings Limited[38] China Property Investment Shanghai Chong Hing Financial Centre recorded rental income of approximately HK$50.8 million, a 12% year-on-year decrease, with office occupancy at approximately 75% and retail occupancy at 83%. Management is implementing strategies to address abundant office supply and slow economic recovery - Shanghai Chong Hing Financial Centre rental income was approximately HK$50.8 million, a year-on-year decrease of 12%[39] - Office occupancy rate was approximately 75%, and retail unit occupancy rate was 83%[39] - Management has implemented various strategies to retain existing and attract potential tenants, aiming to improve occupancy and rental income[39] UK Property Investment Barratt House on Oxford Street, London, recorded rental income of approximately HK$13 million, an increase of approximately HK$0.6 million year-on-year, with an occupancy rate of 86% - Barratt House rental income was approximately HK$13 million, a year-on-year increase of approximately HK$0.6 million[40] - The property's occupancy rate was 86%[40] Property Development The Group's property development business achieved strong growth during the reporting period, with a significant increase in sales revenue, primarily driven by new project recognition in China. The Thailand hotel property also performed well, exceeding budget for revenue and operating profit - The Group recorded sales revenue of approximately HK$215.1 million, a 2,290% increase compared to the prior period[41] - The significant increase in sales revenue was primarily due to new sales recognized from Sanshui Xuanlong Yayuan[41] China Property Development China property development sales revenue surged by 2,290% to HK$215.1 million, primarily driven by new sales contributions from Sanshui Xuanlong Yayuan. Both residential units and parking spaces sold at Foshan Cuihu Green Oasis Garden increased, with cumulative sales revenue reaching HK$6 billion - China property sales revenue was approximately HK$215.1 million, a year-on-year increase of 2,290%[41] - The number of residential units recognized from Foshan Cuihu Green Oasis Garden sales increased from 3 in 2024 to 6 in 2025, and parking spaces sold increased from 18 to 140[44] - As of June 30, 2025, Foshan Cuihu Green Oasis Garden had sold all 5,264 residential units (100%) and 2,457 out of 4,670 parking spaces (53%), with cumulative sales revenue of approximately HK$6 billion[45] - Sanshui Xuanlong Yayuan had launched 600 residential units for sale, with 483 units (81%) sold as of June 30, 2025, generating total sales revenue of approximately RMB497.2 million[48] Thailand Hotel Property Investment Kimpton Kitalay Samui in Koh Samui, Thailand, recorded total revenue of approximately HK$72.3 million, a 23.8% year-on-year increase, with EBITDA of approximately HK$24.7 million, exceeding budget, driven by marketing activities and enhanced customer experience - Kimpton Kitalay Samui hotel total revenue was approximately HK$72.3 million, a year-on-year increase of approximately HK$13.9 million (23.8%)[51] - Earnings before interest, tax, depreciation, and amortization (EBITDA) was approximately HK$24.7 million, exceeding budget[51] - The hotel's success is attributed to InterContinental Hotels Group's marketing activities and enhanced guest experience, making it the highest-rated Kimpton hotel in Asia Pacific[51] Share of Results of Joint Ventures Share of results of joint ventures shifted from a loss of approximately HK$47.1 million in 2024 to a profit of approximately HK$65.1 million in 2025, primarily due to the successful disposal of warehouses in Japan and partial beneficial interests in an Australian property trust - Share of results of joint ventures improved from a loss of approximately HK$47.1 million in 2024 to a profit of approximately HK$65.1 million in 2025[53] - The turnaround to profit was primarily due to the disposal of warehouses in Japan (including Hokkaido, Higashimatsuyama, and Hadano) and partial beneficial interests in an Australian property trust[52][53] - The disposal of the Japanese property portfolio generated total proceeds of JPY9.66 billion (approximately HK$511 million)[52] Outlook Management acknowledges the challenging global economic environment and will maintain a cautious and disciplined strategy, focusing on operational resilience, risk management, and long-term value creation to strengthen the Group's competitive position in future recovery - The global economic environment remains challenging, despite some interest rate reductions[54] - Management will maintain a cautious and disciplined strategy, focusing on operational resilience, risk management, and long-term value creation[54] Corporate Governance and Other Information Compliance with Corporate Governance Code The Company generally complied with Appendix C1 of the Listing Rules' Corporate Governance Code during the review period, though the roles of Chairman and Chief Executive were not segregated. The Board believes this arrangement is in the Company's best interest, given Mr. Liu Lit Chi's extensive experience in the property and banking sectors - The Company generally complied with the Corporate Governance Code, but the roles of Chairman and Chief Executive were not segregated[55][56] - The Board believes Mr. Liu Lit Chi's dual role as Chairman and Chief Executive is in the Company's best interest, given his extensive market experience[56] Changes in Directors' Information and Standard Securities Dealing Code Dr. Cheng Mo Chi, an Independent Non-executive Director, was appointed Chairman of the Hong Kong Maritime and Port Board. All Directors confirmed compliance with the Standard Securities Dealing Code for Directors of Listed Issuers as set out in Appendix C3 of the Listing Rules - Independent Non-executive Director Dr. Cheng Mo Chi was appointed Chairman of the Hong Kong Maritime and Port Board on July 1, 2025[57] - All Directors confirmed compliance with the Standard Securities Dealing Code for Directors of Listed Issuers as set out in Appendix C3 of the Listing Rules[58] Purchase, Sale or Redemption of Shares For the six months ended June 30, 2025, neither the Company nor its subsidiaries purchased, sold, or redeemed any of the Company's shares - Neither the Company nor its subsidiaries conducted any purchase, sale, or redemption of shares during the reporting period[59] Review of Unaudited Interim Financial Report The Audit Committee reviewed the Group's accounting policies and standards, and discussed audit, internal controls, and financial reporting. The Company's auditor, Deloitte Touche Tohmatsu, reviewed the condensed consolidated financial statements in accordance with HKSRE 2410 and issued an unmodified review report - The Audit Committee reviewed the Group's accounting policies, standards, audit, internal controls, and financial reporting[60] - The Company's auditor, Deloitte Touche Tohmatsu, issued an unmodified review report[60] Results Announcement and Board of Directors The results announcement has been published on the HKEXnews website and the Company's website, with the interim results report to be dispatched to shareholders on August 29, 2025. The announcement lists the Board of Directors as of the announcement date - The results announcement has been published on the HKEXnews website (www.hkexnews.hk) and the Company's website (www.lchi.com.hk)[61](index=61&type=chunk) - The Company's 2025 interim results report will be dispatched to shareholders on August 29, 2025[61] - The Board of Directors includes Executive Director Mr. Liu Lit Chi (Chairman and Chief Executive), Non-executive Director Mr. Hui Wing Chuen, and Independent Non-executive Directors Dr. Cheng Mo Chi, among others[62]