顺豪物业(00219) - 2025 - 中期业绩

Performance Overview Interim Results Summary For the six months ended June 30, 2025, net profit attributable to owners, before revaluation and depreciation, increased by 29% year-on-year to HK$79 million Interim Results Summary | Metric | For the six months ended June 30, 2025 (in thousands of HKD) | For the six months ended June 30, 2024 (in thousands of HKD) | Change | | :--- | :--- | :--- | :--- | | Loss after tax and non-controlling interests | (138,175) | (92,837) | | | Add: Revaluation loss | 153,355 | 90,787 | | | Add: Depreciation of property, plant and equipment | 63,486 | 62,914 | | | Net profit attributable to owners before revaluation and depreciation | 78,666 | 60,864 | +29% | Interim Dividend The Board does not recommend an interim dividend for the six months ended June 30, 2025, consistent with the prior year period - The Board does not recommend the payment of an interim dividend for the six months ended June 30, 2025 (Six months ended June 30, 2024: Nil)[4] Condensed Consolidated Financial Statements Condensed Consolidated Statement of Profit or Loss For the six months ended June 30, 2025, the Group's total revenue grew to HK$334,338 thousand, but the period's loss widened to HK$145,255 thousand due to fair value impairment of investment properties Key Data from Condensed Consolidated Statement of Profit or Loss | Metric | For the six months ended June 30, 2025 (in thousands of HKD) | For the six months ended June 30, 2024 (in thousands of HKD) | | :--- | :--- | :--- | | Revenue | 334,338 | 319,575 | | Cost of sales | (2,234) | (1,750) | | Other service costs | (176,964) | (180,129) | | Gross profit | 73,691 | 56,890 | | Fair value impairment of investment properties | (154,800) | (92,232) | | Administrative expenses | (30,223) | (30,573) | | Finance costs | (23,855) | (31,732) | | Loss before tax | (132,771) | (96,368) | | Income tax expense | (12,484) | (7,685) | | Loss for the period | (145,255) | (104,053) | | Loss attributable to owners of the Company | (138,175) | (92,837) | | Basic loss per share (HK cents) | (27.01) | (18.15) | Condensed Consolidated Statement of Comprehensive Income The loss for the period was HK$145,255 thousand, but other comprehensive income of HK$121,222 thousand from exchange differences on translating foreign operations significantly reduced the total comprehensive expense to HK$30,192 thousand Key Data from Condensed Consolidated Statement of Comprehensive Income | Metric | For the six months ended June 30, 2025 (in thousands of HKD) | For the six months ended June 30, 2024 (in thousands of HKD) | | :--- | :--- | :--- | | Loss for the period | (145,255) | (104,053) | | Fair value (loss) gain on equity investments | (6,159) | 455 | | Exchange differences on translation of foreign operations | 121,222 | (13,773) | | Other comprehensive income (expense) for the period | 115,063 | (13,318) | | Total comprehensive expense for the period | (30,192) | (117,371) | | Total comprehensive (expense) income attributable to owners of the Company | (56,378) | (102,306) | Condensed Consolidated Statement of Financial Position As of June 30, 2025, the Group's total assets slightly decreased, non-current assets remained stable, and a reduction in current liabilities narrowed the net current liabilities Key Data from Condensed Consolidated Statement of Financial Position | Metric | As of June 30, 2025 (in thousands of HKD) | As of December 31, 2024 (in thousands of HKD) | | :--- | :--- | :--- | | Property, plant and equipment | 4,585,743 | 4,619,901 | | Investment properties | 4,507,845 | 4,571,490 | | Total non-current assets | 9,153,831 | 9,258,032 | | Bank balances and cash | 198,476 | 234,982 | | Total current assets | 227,866 | 266,347 | | Total current liabilities | 436,583 | 484,744 | | Net current liabilities | (208,717) | (218,397) | | Equity attributable to owners of the Company | 6,970,034 | 7,026,412 | | Bank loans (non-current) | 566,121 | 626,721 | Notes to the Financial Statements Basis of Preparation The condensed consolidated financial statements are prepared in accordance with HKAS 34 issued by the HKICPA and the disclosure requirements of Appendix D2 of the HKEX Listing Rules - These condensed consolidated financial statements have been prepared in accordance with Hong Kong Accounting Standard 34 ("Interim Financial Reporting") issued by the Hong Kong Institute of Certified Public Accountants and the applicable disclosure requirements of Appendix D2 of the Rules Governing the Listing of Securities on The Stock Exchange of Hong Kong Limited[8] Principal Accounting Policies The financial statements are prepared on a historical cost basis, except for investment properties and certain financial instruments, with no material impact from new HKFRS amendments - The condensed consolidated financial statements have been prepared on the historical cost basis, except for investment properties and certain financial instruments which are measured at fair values[9] - The application of the amendments to Hong Kong Financial Reporting Standards in the current period has had no material effect on the amounts reported in these condensed consolidated financial statements and/or disclosures set out in these condensed consolidated financial statements[11] Revenue Composition The Group's revenue, primarily from hotel operations, property rental, and dividends, grew by 4.6% year-on-year to HK$334,338 thousand Breakdown of Revenue | Revenue Source | For the six months ended June 30, 2025 (in thousands of HKD) | For the six months ended June 30, 2024 (in thousands of HKD) | | :--- | :--- | :--- | | Income from hotel operations | 268,032 | 259,757 | | Property rental income | 66,281 | 59,818 | | Dividend income | 25 | - | | Total Revenue | 334,338 | 319,575 | Segment Information The Group's operating segments include hotel services, property investment, and securities investment, with the hotel segment achieving profitability while property investment incurred losses due to revaluation - The Group’s operating and reportable segments are determined based on information reported to the chief operating decision-maker (the Chairman of the Company) for the purposes of resource allocation and performance assessment, and are categorised as follows: hotel services, property investment, and securities investment[13][14] Segment Revenue and Results | Segment | 2025 Revenue (in thousands of HKD) | 2024 Revenue (in thousands of HKD) | 2025 Results (in thousands of HKD) | 2024 Results (in thousands of HKD) | | :--- | :--- | :--- | :--- | :--- | | Hotel services | 268,032 | 259,757 | 9,353 | (1,066) | | Property investment | 66,281 | 59,818 | (90,487) | (34,276) | | Securities investment | 25 | - | 25 | - | | Total | 334,338 | 319,575 | (81,109) | (35,342) | Finance Costs Finance costs for the period, mainly comprising interest on bank loans, decreased to HK$23,855 thousand Breakdown of Finance Costs | Cost Item | For the six months ended June 30, 2025 (in thousands of HKD) | For the six months ended June 30, 2024 (in thousands of HKD) | | :--- | :--- | :--- | | Interest on bank loans | 23,819 | 31,657 | | Interest on amount due to an intermediate holding company | 36 | 75 | | Total Finance Costs | 23,855 | 31,732 | Income Tax Expense The income tax expense for the period was HK$12,484 thousand, primarily from current taxes in Hong Kong and the UK, with the Hong Kong profits tax rate at 16.5% Breakdown of Income Tax Expense | Tax Type | For the six months ended June 30, 2025 (in thousands of HKD) | For the six months ended June 30, 2024 (in thousands of HKD) | | :--- | :--- | :--- | | Current tax: Hong Kong | 9,410 | 7,070 | | Current tax: United Kingdom | 4,231 | 2,459 | | Under-provision in prior years: Hong Kong | 111 | - | | Deferred tax | (1,268) | (1,844) | | Total Income Tax Expense | 12,484 | 7,685 | - The annual tax rate used for the six months ended June 30, 2025 (Hong Kong Profits Tax) was 16.5% (Six months ended June 30, 2024: 16.5%)[16] Loss for the Period Has Been Arrived at After Charging/Crediting The loss for the period was arrived at after charging depreciation of property, plant and equipment of HK$83,192 thousand and crediting bank interest income of HK$1,487 thousand Items Charged/Credited to Loss for the Period | Item | For the six months ended June 30, 2025 (in thousands of HKD) | For the six months ended June 30, 2024 (in thousands of HKD) | | :--- | :--- | :--- | | Depreciation of right-of-use assets | 384 | 381 | | Depreciation of property, plant and equipment | 83,192 | 82,458 | | Interest income from bank deposits | (1,487) | (2,981) | | Loss on disposal of property, plant and equipment | 82 | 2,497 | Dividend Policy The Board resolved not to declare or recommend an interim dividend for the six months ended June 30, 2025, consistent with the prior year period - The Board of Directors has resolved not to declare or recommend the payment of an interim dividend for the six months ended June 30, 2025 and June 30, 2024[20] Loss Per Share Basic loss per share for the six months ended June 30, 2025, widened to 27.01 HK cents from 18.15 HK cents in the prior year period, due to an increased loss for the period - The calculation of basic loss per share is based on the loss for the period attributable to owners of the Company of HK$138,175,000 (Six months ended June 30, 2024: HK$92,837,000) and 511,613,000 shares in issue during the period[21] Loss Per Share | Metric | For the six months ended June 30, 2025 (HK cents) | For the six months ended June 30, 2024 (HK cents) | | :--- | :--- | :--- | | Basic loss per share | (27.01) | (18.15) | Trade and Other Receivables As of June 30, 2025, total trade and other receivables decreased to HK$12,760 thousand from December 31, 2024, with the majority of receivables not yet due Breakdown of Trade and Other Receivables | Item | As of June 30, 2025 (in thousands of HKD) | As of December 31, 2024 (in thousands of HKD) | | :--- | :--- | :--- | | Trade receivables (from contracts with customers) | 6,999 | 10,088 | | Lease receivables | 2,534 | 2,250 | | Other receivables | 3,227 | 2,859 | | Total | 12,760 | 15,197 | Ageing Analysis of Trade and Lease Receivables | Ageing | As of June 30, 2025 (in thousands of HKD) | As of December 31, 2024 (in thousands of HKD) | | :--- | :--- | :--- | | Not yet due | 9,280 | 12,139 | | Overdue 0 – 30 days | 80 | 104 | | Overdue 31 – 60 days | 173 | 94 | | Overdue 61 – 90 days | - | 1 | | Total | 9,533 | 12,338 | Trade and Other Payables and Accruals As of June 30, 2025, total trade and other payables and accruals decreased to HK$49,209 thousand, with the vast majority of trade payables due within 30 days Breakdown of Trade and Other Payables and Accruals | Item | As of June 30, 2025 (in thousands of HKD) | As of December 31, 2024 (in thousands of HKD) | | :--- | :--- | :--- | | Trade payables | 4,748 | 5,288 | | Other payables and accruals | 44,461 | 54,899 | | Total | 49,209 | 60,187 | Ageing Analysis of Trade Payables | Ageing | As of June 30, 2025 (in thousands of HKD) | As of December 31, 2024 (in thousands of HKD) | | :--- | :--- | :--- | | 0 – 30 days | 4,740 | 5,281 | | 31 – 60 days | 7 | 6 | | 61 – 90 days | 1 | 1 | | Total | 4,748 | 5,288 | Management Discussion and Analysis Overall Performance Review Net profit attributable to owners, before revaluation and depreciation, grew 29% to HK$78.7 million, driven by higher revenue and lower costs, while the Board withheld dividends to preserve cash - The Company's net profit attributable to owners, after tax and before revaluation and depreciation, was HK$78,700,000, an increase of HK$18,000,000 (+29%) from HK$60,900,000 for the six months ended June 30, 2024[24] - The increase in overall profit was mainly due to a 5% increase in revenue and a decrease in hotel operating costs and finance costs[27] - The decision not to recommend an interim dividend was to ensure higher cash flow for the challenging market, reduce bank debt, and fund the renovation of the Wood Street Hotel in London[26] Business Performance The Group's hotel business revenue grew by 3%, with a significant 43% increase in net profit for the Magnificent Hotel Group, alongside growth in commercial property rental income Hotel Business Hotel operating revenue increased by 3% to HK$268 million, while Magnificent Hotel Group's net profit, before revaluation and depreciation, surged 43% to HK$59.3 million - The Group's revenue from hotel operations was HK$268,000,000, an increase of 3% from HK$260,000,000 for the six months ended June 30, 2024[28] - Net profit attributable to owners of Magnificent Hotel, before revaluation and depreciation, was HK$59,300,000, an increase of HK$17,700,000 (+43%) from HK$41,600,000 for the six months ended June 30, 2024[28] - Management successfully increased the annual rent of the Royal Scot Hotel in London by 34% from £3,546,000 to £4,737,000[30] Commercial Property Rental Income Commercial property rental income totaled HK$66 million, showing year-on-year growth, with Shun Ho Tower and 633 King's Road achieving occupancy rates of 91% and 77% respectively - Commercial property rental income, derived from properties in the UK and Hong Kong, totaled HK$66,000,000 (Six months ended June 30, 2024: HK$60,000,000)[31] Hong Kong Commercial Property Occupancy Rates | Property | Occupancy Rate | | :--- | :--- | | Shun Ho Tower | 91% | | 633 King's Road | 77% | Liquidity and Capital Resources As of June 30, 2025, the Group's total debt decreased to HK$909 million, improving the gearing ratio to 11%, while the Group actively manages its foreign exchange risk exposure - As at June 30, 2025, the Group's (including Magnificent Hotel and its subsidiaries) total debt was HK$909,000,000 (December 31, 2024: HK$1,016,000,000)[33] - The Group's (including Magnificent Hotel and its subsidiaries) gearing ratio improved to 11% from 12% as at December 31, 2024[33] - The Group's bank loans are primarily denominated in Hong Kong dollars and Pound Sterling at floating interest rates, exposing the Group to foreign exchange risk which management actively monitors and manages[33] Key Business Achievements The Group maintained an average hotel occupancy rate above 90% amid 11.3 million overnight visitor arrivals to Hong Kong, successfully increased rent for a London hotel, and advanced a new hotel renovation project - For the six months ended June 30, 2025, overnight visitor arrivals to Hong Kong were approximately 11.3 million (Six months ended June 30, 2024: 10.6 million)[34] - During the period, the Group's average hotel occupancy rate consistently exceeded 90%[34] - The Group's hotel revenue increased by 3% to HK$268,000,000, and total revenue increased by 5% to HK$334,000,000[34] - Management successfully increased the annual rent of the Royal Scot Hotel in London by 34% from £3,546,000 to £4,737,000[35] - The Group acquired the Wood Street Police Station headquarters in central London for £40,000,000 and has received approval to renovate it into a luxury hotel with approximately 216 guest rooms[35] Future Outlook The outlook for hotel and rental income remains challenging due to economic headwinds, though the expansion of the "multi-entry visa" policy may provide a positive catalyst - The future prospects for the hotel business and rental income remain challenging, and management will continue to focus on increasing revenue and controlling costs[37] - A weak Chinese economy and a strong Hong Kong dollar against the Renminbi have led more Chinese tourists to opt for day trips to Hong Kong while staying in the Greater Bay Area[36] - The expansion of the multi-entry visa policy to other major Chinese cities like Beijing and Shanghai is expected to be a significant positive development[36] - Occupancy rates at 633 King's Road and Shun Ho Tower are affected by the US-China trade war and declining Hong Kong import/export volumes, as most tenants are international trading companies[36] Dealings in Listed Securities Dealings in Listed Securities Neither the Company nor any of its subsidiaries purchased, sold, or redeemed any of the Company's listed securities during the six months ended June 30, 2025 - During the six months ended June 30, 2025, neither the Company nor any of its subsidiaries purchased, sold or redeemed any of the Company's listed securities[38] Corporate Governance Compliance with the Corporate Governance Code The Company complied with the Corporate Governance Code, except for the deviation where the roles of Chairman and Chief Executive Officer are held by the same individual - For the six months ended June 30, 2025, the Company has complied with all applicable code provisions of the Corporate Governance Code as set out in Appendix C1 to the Listing Rules, except for the following deviation: Code Provision C.2.1 stipulates that the roles of chairman and chief executive should not be performed by the same individual[39] - The Board believes that vesting the roles of both Chairman and Chief Executive Officer in the same person, Mr. William Cheng Kai Man, provides the Company with strong and consistent leadership and facilitates effective planning and implementation of the Company's strategies[39] Compliance with the Model Code The Company has adopted the Model Code for securities transactions by directors, and all directors have confirmed their compliance throughout the period - The Company has adopted the Model Code for Securities Transactions by Directors of Listed Issuers ("Model Code") as set out in Appendix C3 to the Listing Rules as its own code of conduct regarding securities transactions by the Directors, and all Directors have confirmed their compliance with the required standard set out in the Model Code throughout the period[40] Audit Committee Review Audit Committee Review The Audit Committee has reviewed the Group's unaudited financial results for the six months ended June 30, 2025 - The Audit Committee has reviewed the unaudited financial results of the Group for the six months ended June 30, 2025[41] Board of Directors Information Board Composition As of the date of this announcement, the Board of Directors comprises four executive directors, one non-executive director, and three independent non-executive directors - As at the date of this announcement, the Board of Directors of the Company comprises four Executive Directors, namely Mr. William Cheng Kai Man (Chairman), Mr. Alexander Hui Wing Ho, Ms. Kimmy Lau Kam May and Ms. Wendy Ngan Mui Ying; one Non-executive Director, namely Mrs. Lo Fong Mei Yee, Anita; and three Independent Non-executive Directors, namely Mr. Chan Kim Fai, Mr. Lam Kwai Cheung and Mr. Liu Yue Chu[43]