朗廷(01270) - 2025 - 中期业绩

Report Cover and Company Information This section provides an overview of Langham Hospitality Investments (Stock Code: 1270) and its interim results for H1 2025 Company Overview This report presents the 2025 interim results for Langham Hospitality Investments (Stock Code: 1270), announced by Langham Hospitality Investments Management Limited as the Trustee-Manager and the Board of Directors of Langham Hospitality Investments Limited - Langham Hospitality Investments (Stock Code: 1270) announces its 2025 interim results[2] Financial Highlights This section presents key financial indicators for H1 2025, including revenue, operating gross profit, distributable income, and balance sheet metrics Key Financial Indicators for H1 2025 In H1 2025, the Trust Group experienced decreased hotel portfolio revenue and operating gross profit, while profit attributable to stapled security holders (excluding non-cash items) significantly increased, leading to a decline in distributable income and no interim distribution, alongside a slight decrease in hotel portfolio value and a marginal rise in gearing ratio 2025 H1 Key Financial Data (HKD million) | Indicator | H1 2025 | H1 2024 | Change | | :--- | :--- | :--- | :--- | | Hotel Portfolio Revenue | 737.5 | 772.9 | -4.6% | | Total Hotel Portfolio Gross Operating Profit | 217.0 | 232.5 | -6.7% | | Trust Group Total Rental Income after Service Fees | 184.8 | 191.1 | -3.3% | | Profit Attributable to Stapled Security Holders (excluding fair value changes of investment properties, derivative financial instruments, and changes related to hotel manager fee arrangements) | 28.4 | 4.3 | 560.5% | | Distributable Income | 28.0 | 34.0 | -17.6% | | Interim Distribution per Stapled Security (HK cents) | - | - | - | | At Period End | June 30, 2025 | December 31, 2024 | June 30, 2024 | | Total Hotel Portfolio Value | 15,764 | 15,895 | 15,725 | | Net Asset Value per Stapled Security | HKD 2.70 | HKD 2.77 | HKD 2.75 | | Gearing Ratio | 38.5% | 38.2% | 38.1% | - No interim distribution is declared for this period, reflecting the company's prudent capital management strategy[8] Management Discussion and Analysis This section discusses market conditions, operational performance of the hotel portfolio, and the financial impact of various business segments Market Overview and Industry Challenges In H1 2025, Hong Kong saw an 11.7% increase in visitor arrivals, though overnight stays remained below pre-pandemic levels, with the hotel sector facing structural challenges from changing traveler behavior, heightened price sensitivity, and the HKD's appreciation against the RMB - Visitor arrivals to Hong Kong reached 23.6 million in H1 2025, a 11.7% year-on-year increase[5] - Overnight visitors accounted for 47.7% (approximately 11.3 million), a 7.0% year-on-year increase, but still below 2018/2019 levels[5] - Mainland China visitors comprised 65.0% of overnight visitors, with short-haul markets (excluding Mainland) growing by 13.5% and long-haul markets rebounding by 17.3%[5] - The hotel industry faces challenges such as shorter booking windows, increased price sensitivity, preference for experiential travel, and the HKD's appreciation against the RMB weakening Mainland visitors' purchasing power[5] Hotel Portfolio Operating Performance The hotel portfolio maintained an average room rate of HKD 1,561, but a slight dip in occupancy to 88.4% led to a 1.5% decrease in revenue per available room, compounded by an 8.2% drop in F&B revenue due to shifting consumer preferences, resulting in a 6.7% decline in total gross operating profit and a slight reduction in portfolio valuation - The hotel portfolio maintained an average room rate of HKD 1,561 per night, with occupancy slightly decreasing by 1.4 percentage points year-on-year to 88.4%[6] - Revenue per available room decreased by 1.5% year-on-year to HKD 1,379 per night[6] - Food and beverage segment revenue decreased by 8.2% year-on-year, primarily due to changing consumer dining preferences and a structural reduction in banquet events[7] - Total gross operating profit (before global marketing fees) decreased by 6.7% to HKD 217.0 million[7] - The hotel investment portfolio valuation decreased to HKD 15,764 million, a reduction from December 31, 2024[7] - Net loss attributable to stapled security holders was HKD 142.2 million, mainly impacted by fair value losses on investment properties and derivative financial instruments[7] Operating Review and Financial Impact The Trust Group's total rental income (before service fees) decreased by 3.5% year-on-year, with service fees down 4.7% but property expenses up 6.9%; total finance costs fell 15.4% despite interest rate swaps shifting to net expense, while fair value losses led to a net loss attributable to stapled security holders, though profit after tax (excluding fair value changes) surged 560.5%, resulting in a 17.6% drop in distributable income and no interim distribution Rental Income Composition and Changes The Trust Group's rental income, comprising stable fixed rent (HKD 225.0 million annually) and variable rent (50% of hotels' total gross operating profit), saw a 3.5% year-on-year decrease in total rental income (before service fees) in H1 2025 due to declining variable rent - The Trust Group's rental income comprises fixed rent (HKD 225.0 million annually) and variable rent (calculated as 50% of the hotels' total gross operating profit)[9] Rental Income Details (HKD million) | Indicator | H1 2025 | H1 2024 | Change | | :--- | :--- | :--- | :--- | | Fixed Rental Income | 111.6 | 111.9 | -0.3% | | Variable Rental Income | 108.5 | 116.2 | -6.6% | | Retail Shop Rental Income | 0.8 | 0.9 | -11.1% | | Total Rental Income before Service Fees | 220.9 | 229.0 | -3.5% | | Service Fee Expenses | (36.1) | (37.9) | -4.7% | | Trust Group Total Rental Income | 184.8 | 191.1 | -3.3% | Service Fees and Property Expenses Total service fees decreased by 4.7% year-on-year due to weaker hotel performance, while hotel property-related expenses rose by 6.9% from increased insurance and government rates, leading to a 3.9% decline in net property income - The Hotel Manager has opted to receive the full hotel manager fee for the year ending December 31, 2025, in cash[13] Total Service Fees Details (HKD million) | Indicator | H1 2025 | H1 2024 | Change | | :--- | :--- | :--- | :--- | | Hotel Management Fees | 20.6 | 21.9 | -5.9% | | License Fees | 7.4 | 7.7 | -3.9% | | Global Marketing Fees | 8.1 | 8.3 | -2.4% | | Total Service Fees | 36.1 | 37.9 | -4.7% | - Hotel property-related expenses increased by 6.9% year-on-year to HKD 10.9 million, primarily due to higher insurance premiums and increased government rates and rent[15] - Net property income decreased to HKD 173.9 million, a 3.9% reduction from the same period last year[15] Finance Costs and Interest Rate Risk Management Total finance costs decreased by 15.4% to HKD 137.7 million, primarily due to lower bank borrowing interest, despite interest rate swaps shifting to net expense, as the Trust Group increased its total notional swap amount to HKD 2,600.0 million, hedging 41.9% of outstanding bank borrowings to manage interest rate risk - Total finance costs decreased to HKD 137.7 million, a 15.4% year-on-year reduction, primarily due to a 24.6% decrease in interest expenses on bank borrowings[16] - Interest rate swaps shifted from recording net interest income in H1 2024 to recording a net interest expense of HKD 8.3 million in H1 2025[16][19] - The Trust Group added HKD 1,100.0 million in new swaps, increasing the total notional amount to HKD 2,600.0 million, hedging 41.9% of outstanding bank borrowings[18] Finance Costs Details (HKD million) | Indicator | H1 2025 | H1 2024 | Change | | :--- | :--- | :--- | :--- | | Interest Expense on Bank Borrowings | (122.2) | (162.1) | -24.6% | | Net Interest on Interest Rate Swaps | (8.3) | 4.2 | Not Applicable | | Amortization of Underwriting/Loan Extension Fees | (6.8) | (4.7) | 44.7% | | Other Borrowing Costs | (0.4) | (0.2) | 100.0% | | Total Finance Costs | (137.7) | (162.8) | -15.4% | Fair Value Changes and Net Profit The Trust Group recorded fair value losses of HKD 143.3 million on investment properties and HKD 27.3 million on derivative financial instruments, resulting in a net loss attributable to stapled security holders of HKD 142.2 million, though net profit after tax (excluding fair value changes) significantly increased by 560.5% to HKD 28.4 million - Recorded fair value losses of HKD 143.3 million on hotel investment properties and HKD 27.3 million on derivative financial instruments[19] - Net loss attributable to stapled security holders was HKD 142.2 million[19] - Excluding the impact of fair value changes, net profit after tax was HKD 28.4 million, a significant year-on-year increase of 560.5%[20] Key Income Statement Items (HKD million) | Indicator | H1 2025 | H1 2024 | Change | | :--- | :--- | :--- | :--- | | Net Property Income | 173.9 | 180.9 | -3.9% | | Fair Value (Decrease)/Increase in Investment Properties | (143.3) | 37.4 | Not Applicable | | Fair Value Changes in Derivative Financial Instruments | (27.3) | 15.9 | Not Applicable | | Finance Costs | (137.7) | (162.8) | -15.4% | | (Loss)/Profit Before Tax | (136.6) | 50.7 | Not Applicable | | (Loss)/Profit Attributable to Stapled Security Holders | (142.2) | 43.0 | Not Applicable | | Profit Attributable to Stapled Security Holders (excluding fair value changes, etc.) | 28.4 | 4.3 | 560.5% | Distributable Income and Distribution Policy Total distributable income for H1 2025 decreased by 17.6% to HKD 28.0 million after adjusting for non-cash items and cash contributions, leading the Board to decide against an interim distribution due to an uncertain hotel operating outlook and volatile interest rate environment - Total distributable income for H1 2025 was HKD 28.0 million, a 17.6% decrease from the same period last year[8][23] - The Board decided not to declare an interim distribution for this period, adopting a prudent capital management and working capital strategy[8][24] Distributable Income Calculation (HKD million) | Indicator | H1 2025 | H1 2024 | Change | | :--- | :--- | :--- | :--- | | (Loss)/Profit Attributable to Stapled Security Holders | (142.2) | 43.0 | Not Applicable | | Adjustment: Fair Value Decrease/(Increase) in Investment Properties | 143.3 | (37.4) | Not Applicable | | Adjustment: Fair Value Changes in Derivative Financial Instruments | 27.3 | (15.9) | Not Applicable | | Adjustment: Amortization of Underwriting/Loan Extension Fees | 6.8 | 4.7 | 44.7% | | Distributable Income | 28.0 | 34.0 | -17.6% | Hotel Operating Performance This section details the overall performance of the hotel portfolio, compares it to the Hong Kong market, and analyzes individual hotel performance Overall Hotel Portfolio Performance In H1 2025, the hotel portfolio's total revenue decreased by 4.6% to HKD 737.5 million, driven by declines in room (1.9%) and F&B (8.2%) income, while a slight 1.4 percentage point drop in occupancy to 88.4% and stable average room rates resulted in a 1.5% decrease in revenue per available room Hotel Portfolio Revenue Details (HKD million) | Revenue Details | The Langham Hong Kong | Cordis Hong Kong | Eaton HK | Total | | :--- | :--- | :--- | :--- | :--- | | Rooms | 150.4 | 172.4 | 84.5 | 407.3 | | Food & Beverage | 94.8 | 125.4 | 90.7 | 310.9 | | Other | 2.4 | 8.1 | 8.8 | 19.3 | | Total Revenue | 247.6 | 305.9 | 184.0 | 737.5 | | Year-on-Year Change | | | | | | Rooms | -2.8% | -3.6% | 3.2% | -1.9% | | Food & Beverage | -7.5% | -10.4% | -5.9% | -8.2% | | Total Revenue | -5.3% | -5.8% | -1.4% | -4.6% | Key Hotel Portfolio Operating Indicators | Indicator | H1 2025 | H1 2024 | Change | | :--- | :--- | :--- | :--- | | Occupancy Rate | 88.4% | 89.8% | -1.4 percentage points | | Average Room Rate (HKD) | 1,561 | 1,559 | +0.1% | | Revenue Per Available Room (HKD) | 1,379 | 1,400 | -1.5% | Comparison with Hong Kong Market The Langham Hong Kong and Cordis Hong Kong demonstrated robust performance in the upscale hotel market, with smaller RevPAR declines and higher occupancy rates than the market average, while Eaton HK surpassed the mid-scale market with a 3.7% RevPAR growth, showcasing its effective positioning and operational agility - The Langham Hong Kong and Cordis Hong Kong saw revenue per available room decrease by 2.2% and 3.3% respectively, outperforming the 7.9% decline in the upscale hotel market[26] - Both hotels' average occupancy rate reached 87.7%, significantly higher than the market average of 77.0%[26] - Eaton HK's revenue per available room increased by 3.7% year-on-year, surpassing the 6.6% decline in the mid-scale hotel market[27] Hong Kong Hotel Market Comparison (H1 2025) | Hotel Category | Occupancy Rate | Average Room Rate (HKD) | Revenue Per Available Room (HKD) | | :--- | :--- | :--- | :--- | | Upscale Hotels | 77.0% | 2,111 | 1,625 | | Mid-scale Hotels | 87.0% | 974 | 847 | | All Hotels | 85.0% | 1,220 | 1,037 | Individual Hotel Performance Analysis The Langham Hong Kong's total revenue decreased by 5.3% due to Mainland visitor market competition and declining F&B income, Cordis Hong Kong's total revenue fell by 5.8% from fewer banquet events, while Eaton HK benefited from diverse activities and prime location, achieving growth in occupancy and average room rate, with RevPAR up 3.7%, despite a drop in F&B revenue due to changing consumer behavior The Langham Hong Kong The Langham Hong Kong, with 48% of room revenue from Mainland visitors, maintained its average room rate and achieved 85.6% occupancy, but saw a 2.2% drop in RevPAR and a 7.5% decline in F&B revenue due to changing consumption patterns and fewer banquets, resulting in a 5.3% total revenue decrease - Approximately 48% of room revenue was generated from Mainland visitors[28] - Occupancy rate was 85.6%, average room rate remained stable, and revenue per available room decreased by 2.2% to HKD 1,669 per night[28] - Food and beverage revenue decreased by 7.5% year-on-year, with total revenue down 5.3% from the same period last year[28] Cordis Hong Kong Cordis Hong Kong, primarily serving local and Mainland visitors, maintained its average room rate but experienced a 3.1 percentage point decrease in occupancy, leading to a 3.3% decline in RevPAR, while F&B revenue fell by 10.4% due to fewer banquet events, resulting in a 5.8% total revenue reduction - Average room rate remained unchanged, occupancy decreased by 3.1 percentage points year-on-year, and revenue per available room decreased by 3.3% to HKD 1,424 per night[29] - Food and beverage revenue decreased by 10.4% year-on-year, primarily due to fewer banquet events[29] - Total revenue decreased by 5.8% from the same period last year[29] Eaton HK Eaton HK achieved a 90.1% occupancy rate and a 1.9% increase in average room rate, with RevPAR growing 3.7% to HKD 1,003 per night, benefiting from diverse events and its prime location, though overall F&B revenue still declined by 5.9%, leading to a slight 1.4% decrease in total revenue - Occupancy rate reached 90.1%, average room rate increased by 1.9% to HKD 1,114 per night[29] - Revenue per available room increased by 3.7% year-on-year to HKD 1,003 per night[29] - Overall food and beverage revenue decreased by 5.9%, mainly due to changing consumer behavior and the trend of local residents dining in Greater Bay Area cities[30] - Total revenue slightly decreased by 1.4% year-on-year[30] Outlook This section outlines market prospects, industry challenges, and the company's strategies for navigating the uncertain economic and interest rate environment Market Outlook and Response Strategies The macroeconomic environment, marked by geopolitical tensions and changing consumer behavior, continues to pressure the hotel industry's profitability with stagnant room rates, prompting the company to optimize pricing and enhance value-added services, while management monitors uncertain interest rates, maintaining a long-term optimistic outlook for Hong Kong's hotel sector despite mixed short-term prospects - The macroeconomic environment is influenced by geopolitical tensions, global trade uncertainties, and changing consumer behavior[31] - The hotel industry is performing weakly, with room rates difficult to increase, and H2 2025 performance is expected to be similar to H1, with profitability under pressure[31] - Hotels will optimize dynamic pricing strategies and strengthen their value-added service portfolio to seize new opportunities[32] - Management will continue to closely monitor interest rate changes and be prepared to take timely measures to mitigate interest rate risks[33] - The long-term outlook for Hong Kong's hotel industry remains optimistic, benefiting from limited new hotel supply, prime locations, and resilient tourism infrastructure[33] Financial Review This section provides a review of the Trust Group's net asset value, debt status, liquidity, and asset pledges Net Asset Value Attributable to Stapled Security Holders As of June 30, 2025, the net asset value attributable to stapled security holders was HKD 9,310.0 million, or HKD 2.70 per stapled security, a decrease from December 31, 2024, but still representing a 400.0% premium over the closing price - As of June 30, 2025, the net asset value attributable to stapled security holders was HKD 9,310.0 million, or HKD 2.70 per stapled security[34] - This represents a decrease from HKD 2.77 as of December 31, 2024, but still a 400.0% premium over the closing price of HKD 0.54[34] Debt Status and Interest Rate Hedging The Trust Group's total outstanding borrowings slightly decreased to HKD 6,201.6 million, with secured term loans unchanged, while new interest rate swaps totaling HKD 1,100.0 million increased the total notional amount to HKD 2,600.0 million, hedging 41.9% of outstanding bank borrowings to effectively manage interest rate risk - Total outstanding borrowings (before underwriting fees) were HKD 6,201.6 million, a slight decrease from December 31, 2024[35] - New interest rate swaps totaling HKD 1,100.0 million were added, increasing the total notional amount to HKD 2,600.0 million[36] - 41.9% of outstanding bank borrowings were hedged at a weighted average fixed interest swap rate of 3.59% per annum (compared to 24.2% hedged at 3.99% as of December 31, 2024)[36] Cash Position and Liquidity As of June 30, 2025, the Trust Group held HKD 241.2 million in cash balances, a decrease from December 31, 2024, including HKD 51.0 million in restricted bank deposits, complemented by HKD 598.4 million in undrawn revolving loan facilities to enhance liquidity flexibility - Held cash balances of HKD 241.2 million (December 31, 2024: HKD 293.4 million), including HKD 51.0 million in restricted bank deposits[38] - Undrawn revolving loan facilities of HKD 598.4 million further enhanced liquidity flexibility[38] Asset Pledges and Commitments The Trust Group's restricted bank deposits and all investment properties, along with related income, are pledged to secure loan facilities, with no significant commitments as of the reporting period end - Restricted bank deposits and all investment properties, along with proceeds from sales, insurance proceeds, rental income, etc., have been pledged to secure loan facilities[39] - As of June 30, 2025, the Trust Group had no significant commitments[40] Corporate Governance and Stapled Securities This section covers the Trust Group's compliance with corporate governance codes and details regarding stapled securities buybacks and issuances Compliance with Corporate Governance Code The Trust Group complied with all applicable corporate governance code provisions and adopted some recommended best practices during the reporting period, with all directors and relevant employees fully adhering to the Securities Dealing Code - The Trust Group complied with all applicable corporate governance code provisions during the reporting period and adopted some recommended best practices[41] - The Board of Directors of the Trustee-Manager is identical to the Board of Directors of the Company, and directors receive no remuneration, thus nomination and remuneration committee requirements are not applicable[41] - All directors and relevant employees have fully complied with the Securities Dealing Code[42] Stapled Securities Buyback and Issuance The Trust and Company are prohibited from repurchasing or redeeming stapled securities, with 3,444,141,132 units in issue as of June 30, 2025, reflecting an increase of 10,594,487 new units issued as partial payment for the H2 2024 hotel manager fee - The Trust and the Company are prohibited from repurchasing or redeeming their stapled securities[43] - As of June 30, 2025, the total number of stapled securities in issue was 3,444,141,132[44] - During the reporting period, 10,594,487 new stapled securities were issued, representing approximately 0.31% of the total issued stapled securities, as partial payment for the hotel manager fee for H2 2024[44][45] Changes in Issued Stapled Securities | Date | Details | Number of Issued Stapled Securities | | :--- | :--- | :--- | | December 31, 2024 | Total number of stapled securities in issue | 3,433,546,645 | | February 28, 2025 | Issuance of new stapled securities as partial payment for H2 2024 hotel manager fee | 10,594,487 | | June 30, 2025 | Total number of stapled securities in issue | 3,444,141,132 | Notes to Financial Statements This section includes the review of interim results, board information, and detailed notes on the condensed consolidated financial statements Interim Results Review and Board Information The Trust Group's unaudited condensed consolidated financial statements were reviewed by the Trustee-Manager, the Company's Audit Committee, and independent auditor Deloitte Touche Tohmatsu in accordance with HK Standard on Review Engagements 2410, with board member information also provided - The interim results have been reviewed by the Audit Committee and by independent auditor Deloitte Touche Tohmatsu in accordance with Hong Kong Standard on Review Engagements 2410[46] - Board members include Dr. Lo Ka Shui (Chairman), Mr. Brett Stephen BUTCHER (Chief Executive Officer), and several Non-executive Directors and Independent Non-executive Directors[47][48] Condensed Consolidated Statement of Profit or Loss and Other Comprehensive Income In H1 2025, the Trust Group reported HKD 184,823 thousand in revenue and HKD 173,916 thousand in net property income, but fair value decreases in investment properties and derivative financial instruments led to a pre-tax loss of HKD 136,617 thousand and a loss attributable to stapled security holders of HKD 142,254 thousand, resulting in a basic and diluted loss of 4 HK cents per stapled security Condensed Consolidated Statement of Profit or Loss and Other Comprehensive Income (HKD thousand) | Indicator | H1 2025 | H1 2024 | | :--- | :--- | :--- | | Revenue | 184,823 | 191,166 | | Net Property Income | 173,916 | 180,956 | | Fair Value (Decrease)/Increase in Investment Properties | (143,327) | 37,373 | | Fair Value Changes in Derivative Financial Instruments | (27,317) | 15,912 | | Finance Costs | (137,726) | (162,843) | | (Loss)/Profit Before Tax | (136,617) | 50,705 | | (Loss)/Profit and Total Comprehensive (Expense)/Income for the Period Attributable to Stapled Security Holders | (142,254) | 43,020 | | (Loss)/Earnings Per Stapled Security (Basic and Diluted) | (4 HK cents) | 1 HK cent | Condensed Consolidated Statement of Financial Position As of June 30, 2025, the Trust Group's total assets were HKD 16,087,429 thousand, with investment properties at HKD 15,764,000 thousand, resulting in net current assets of HKD 210,227 thousand and total liabilities of HKD 6,777,384 thousand (including HKD 6,168,404 thousand in secured bank loans due after one year), leading to net assets of HKD 9,310,045 thousand Condensed Consolidated Statement of Financial Position (HKD thousand) | Indicator | June 30, 2025 | December 31, 2024 | | :--- | :--- | :--- | | Total Non-current Assets | 15,773,150 | 15,904,746 | | Investment Properties | 15,764,000 | 15,895,000 | | Total Current Assets | 314,279 | 333,598 | | Total Current Liabilities | 104,052 | 87,180 | | Net Current Assets | 210,227 | 246,418 | | Total Assets Less Current Liabilities | 15,983,377 | 16,151,164 | | Total Non-current Liabilities | 6,673,332 | 6,648,753 | | Net Assets | 9,310,045 | 9,502,411 | | Total Equity | 9,310,045 | 9,502,411 | Notes: General Information and Basis of Presentation The Trust Group, comprising Langham Hospitality Investments Trust and its Trustee-Manager, Langham Hospitality Investments Management Limited, Langham Hospitality Investments Limited, and its subsidiaries, presents its condensed consolidated financial statements in Hong Kong dollars, prepared under HKAS 34 and Listing Rules, with no significant impact from the first-time application of revised HKFRS accounting standards this period - The Trust Group's principal business activity is property investment, and the condensed consolidated financial statements are presented in Hong Kong dollars[53][54] - The condensed consolidated financial statements are prepared in accordance with Hong Kong Accounting Standard 34 "Interim Financial Reporting" and the applicable disclosure requirements of Appendix 16 to the Listing Rules[57] - Revised Hong Kong Financial Reporting Standards accounting standards were first applied in this interim period, but with no significant impact on the financial position and performance[59] Notes: Revenue The Trust Group's revenue primarily derives from basic and variable rental income from master lessee GE (LHIL) Lessee Limited, alongside retail shop rental income from Eaton HK, totaling HKD 184,823 thousand in H1 2025, a decrease from the prior year Revenue Details (HKD thousand) | Revenue Source | H1 2025 | H1 2024 | | :--- | :--- | :--- | | Basic Rent from Master Lessee | 111,575 | 111,885 | | Variable Rent from Master Lessee | 108,520 | 116,226 | | Service Fee Expenses | (36,106) | (37,871) | | Rental Income from Retail Shops at Eaton HK | 834 | 926 | | Total Revenue | 184,823 | 191,166 | Notes: Segment Information The Group's operating segments focus on the leasing performance of The Langham Hong Kong, Cordis Hong Kong, and Eaton HK, all of which experienced decreased revenue and performance in H1 2025, with Cordis Hong Kong generating the highest revenue, and all hotels seeing a slight decline in fair value by the period end - The Group's operating segments focus on the operating results of leasing The Langham Hong Kong, Cordis Hong Kong, and Eaton HK[62] Segment Revenue and Performance (H1 2025, HKD thousand) | Hotel | Segment Revenue | Segment Performance | | :--- | :--- | :--- | | The Langham Hong Kong | 77,631 | 62,316 | | Cordis Hong Kong | 97,100 | 75,866 | | Eaton HK | 46,198 | 35,734 | | Total Segments | 220,929 | 173,916 | - As of the end of the reporting period, the fair values of The Langham Hong Kong, Cordis Hong Kong, and Eaton HK were HKD 5,410 million, HKD 6,770 million, and HKD 3,584 million respectively, all showing a decrease from December 31, 2024[66] Notes: Finance Costs Total finance costs for H1 2025 decreased by 15.4% to HKD 137,726 thousand, primarily due to reduced bank borrowing interest, despite interest rate swaps shifting from net income to net expense Finance Costs Details (HKD thousand) | Item | H1 2025 | H1 2024 | | :--- | :--- | :--- | | Interest on Bank Borrowings | 122,155 | 162,063 | | Net Interest on Interest Rate Swaps | 8,346 | (4,151) | | Amortization of Underwriting/Loan Extension Fees | 6,800 | 4,685 | | Interest on Lease Liabilities | 23 | 11 | | Other Borrowing Costs | 402 | 235 | | Total Finance Costs | 137,726 | 162,843 | Notes: Income Tax Expense Income tax expense for H1 2025 was HKD 5,637 thousand, a 27.3% decrease from the same period last year, primarily comprising current tax and deferred tax Income Tax Expense (HKD thousand) | Item | H1 2025 | H1 2024 | | :--- | :--- | :--- | | Hong Kong Profits Tax: Current Tax | 2,185 | 1,246 | | Deferred Tax: For the Period | 3,452 | 6,430 | | Total Income Tax Expense | 5,637 | 7,685 | Notes: Total Distributable Income Total distributable income for H1 2025 was HKD 28,027 thousand, a 17.6% decrease from the same period last year, calculated by adjusting non-cash items (such as fair value changes, depreciation, amortization, etc.) from the loss/profit attributable to stapled security holders Total Distributable Income Calculation (HKD thousand) | Item | H1 2025 | H1 2024 | | :--- | :--- | :--- | | (Loss)/Profit for the Period Attributable to Stapled Security Holders | (142,254) | 43,020 | | Adjustment: Fair Value Decrease/(Increase) in Investment Properties | 143,327 | (37,373) | | Adjustment: Fair Value Changes in Derivative Financial Instruments | 27,317 | (15,912) | | Adjustment: Amortization of Underwriting/Loan Extension Fees | 6,800 | 4,685 | | Total Distributable Income | 28,027 | 34,022 | Notes: Distribution Table The Board decided not to declare an interim distribution for H1 2025, while the 2024 final distribution of 1.6 HK cents per stapled security was paid to holders on June 4, 2025 - The Board decided not to declare any total distributable income for the six months ended June 30, 2025[72] - For the financial year ended December 31, 2024, 48% of the total distributable income was distributed, with a final distribution of 1.6 HK cents per stapled security[72] - The total 2024 final distribution of HKD 55,106 thousand was paid to stapled security holders on June 4, 2025[72] Distribution Table Summary (HKD thousand) | Item | H1 2025 | H1 2024 | | :--- | :--- | :--- | | Total Distributable Income for Interim Distribution Period | 28,027 | 34,022 | | Interim Distribution | - | - | | Total Distributable Income for Financial Year Ended December 31, 2024 | 113,022 | 297,613 | | Distributable Income for Final Distribution Period | 54,251 | - | | Interim Distribution Per Stapled Security (HK cents) | - | - | | Final Distribution Per Stapled Security (HK cents) | 1.6 | - | Notes: (Loss)/Earnings Per Stapled Security In H1 2025, basic and diluted loss per stapled security was 4 HK cents, calculated from a period loss of HKD 142,254 thousand and a weighted average of 3,440,746 thousand stapled securities, with basic and diluted losses being equal due to the loss (Loss)/Earnings Per Stapled Security Calculation | Item | H1 2025 | H1 2024 | | :--- | :--- | :--- | | (Loss)/Profit for the Period (HKD thousand) | (142,254) | 43,020 | | Weighted Average Number of Stapled Securities (thousand) | 3,440,746 | 3,361,407 | | Basic and Diluted (Loss)/Earnings Per Stapled Security | (4 HK cents) | 1 HK cent | - In H1 2025, basic and diluted loss per stapled security are equal as they are anti-dilutive[75] Notes: Trade and Other Receivables and Payables As of June 30, 2025, total trade and other receivables, deposits, and prepayments amounted to HKD 22,801 thousand, including HKD 13,314 thousand due from the master lessee, while trade and other payables increased to HKD 50,895 thousand, including HKD 21,772 thousand payable to a fellow subsidiary to be settled by issuing deferred stapled securities Trade and Other Receivables, Deposits and Prepayments (HKD thousand) | Item | June 30, 2025 | December 31, 2024 | | :--- | :--- | :--- | | Amounts Due from Master Lessee | 13,314 | 29,417 | | Deposits and Prepayments | 8,989 | 11,299 | | Trade and Other Receivables, Deposits and Prepayments Classified as Current Assets | 14,579 | 32,678 | Trade and Other Payables, Deposits and Accruals (HKD thousand) | Item | June 30, 2025 | December 31, 2024 | | :--- | :--- | :--- | | Trade Payables | 50,895 | 34,498 | | Accruals and Other Payables | 13,461 | 23,440 | | Amounts Due for Works | 911 | 2,616 | | Deposits Received | 577 | 577 | | Total | 65,844 | 61,131 | - Trade payables include an amount of HKD 21,772 thousand payable to a fellow subsidiary, relating to unpaid hotel management fees and license fees for H2 2024, which will be settled by the allotment and issue of 46,320,885 stapled securities[79] Financial Statements of Langham Hospitality Investments Management Limited This section presents the condensed income statement and statement of financial position for Langham Hospitality Investments Management Limited, along with general information and accounting policies Condensed Statement of Profit or Loss and Other Comprehensive Income Langham Hospitality Investments Management Limited recorded no revenue in both H1 2025 and H1 2024. Administrative expenses are borne by fellow subsidiaries and the Trust estate, resulting in zero profit or loss and total comprehensive income/expense for the period Condensed Statement of Profit or Loss and Other Comprehensive Income of Langham Hospitality Investments Management Limited (HKD) | Indicator | H1 2025 | H1 2024 | | :--- | :--- | :--- | | Revenue | - | - | | Administrative Expenses | 11,857 | 11,857 | | Less: Amounts Borne by Fellow Subsidiaries and the Trust Estate | (11,857) | (11,857) | | Profit or Loss and Total Comprehensive Income/Expense for the Period | - | - | Condensed Statement of Financial Position The condensed statement of financial position for Langham Hospitality Investments Management Limited shows that as of June 30, 2025, and December 31, 2024, its cash, net assets, share capital, and total equity all amounted to HKD 1 Condensed Statement of Financial Position of Langham Hospitality Investments Management Limited (HKD) | Indicator | June 30, 2025 | December 31, 2024 | | :--- | :--- | :--- | | Cash | 1 | 1 | | Net Assets | 1 | 1 | | Share Capital | 1 | 1 | | Total Equity | 1 | 1 | Notes: General Information and Accounting Policies Langham Hospitality Investments Management Limited's principal business is managing the Trust as its Trustee-Manager, with management costs and expenses deducted from the Trust estate and no management fees charged, and its condensed financial statements are presented in Hong Kong dollars, prepared under HKAS 34 with consistent accounting policies, showing no significant impact from the first-time application of revised HKFRS accounting standards this period - Langham Hospitality Investments Management Limited's principal business is acting as the Trustee-Manager for Langham Hospitality Investments, managing the Trust[84] - The costs and expenses of managing the Trust are deductible from the Trust estate, and the Company does not charge any management fees[84] - The condensed financial statements are prepared in accordance with Hong Kong Accounting Standard 34 "Interim Financial Reporting", with accounting policies consistent with the annual financial statements[87][88] - The revised Hong Kong Financial Reporting Standards accounting standards adopted in this interim period had no significant impact on the amounts reported and/or disclosures contained in these condensed financial statements[90]