世纪建业(00079) - 2025 - 中期业绩

Company Information and Report Overview This section provides an overview of the company, the basis for financial statement preparation, and changes in accounting policies Company Profile Century Legend (Holdings) Limited is an investment holding company with diverse subsidiaries engaged in property investment, hair salons, hospitality, property project management, lending, and securities investment - The company primarily engages in investment holding, with diversified subsidiary businesses including property investment, hair salons, hotels, property project management, lending, and securities investment[8] Basis of Preparation The unaudited interim financial statements, reviewed by the Audit Committee, are prepared in accordance with HKFRS and HKAS 34, measured at historical cost, and presented in HKD - The interim financial statements are unaudited but reviewed by the Audit Committee, comply with HKAS 34, and are presented in HKD[9][10] Changes in Accounting Policies and Estimates The Group adopted amendments to HKAS 21 "Lack of Exchangeability" in 2025, which had no impact on performance or financial position, with significant judgments and estimates remaining consistent with 2024 - Amendments to HKAS 21 adopted in 2025 had no impact on the Group's performance or financial position[11] - Significant judgments and estimates used in preparing the statements are consistent with those applied in the 2024 annual financial statements[12] Financial Performance This section details the Group's financial results, including comprehensive income, financial position, profit before tax, earnings per share, and key account balances Condensed Consolidated Statement of Comprehensive Income For the six months ended June 30, 2025, the Group achieved a profit of HKD 2,095,000, a significant improvement from the prior year's net loss, primarily due to fair value gains on financial assets Key Data from Condensed Consolidated Statement of Comprehensive Income (Six Months Ended June 30) | Indicator | 2025 (HKD thousands) | 2024 (HKD thousands) | | :--- | :--- | :--- | | Revenue | 22,151 | 23,767 | | Cost of sales | (15,310) | (15,556) | | Gross profit | 6,841 | 8,211 | | Other income | 366 | 559 | | Fair value gains/(losses) on financial assets at fair value through profit or loss | 16,405 | (11,980) | | Fair value loss on investment properties | (5,800) | (4,000) | | Administrative expenses | (12,967) | (13,998) | | Finance costs | (2,750) | (3,757) | | Profit/(Loss) before income tax | 2,095 | (24,965) | | Income tax credit | – | 384 | | Profit/(Loss) for the period | 2,095 | (24,581) | - Total comprehensive income for the period turned from a loss of HKD 24,553,000 in the same period of 2024 to a profit of HKD 2,095,000 in 2025[5] Condensed Consolidated Statement of Financial Position As of June 30, 2025, the Group's total assets slightly increased, non-current assets slightly decreased, while current assets grew, leading to a narrowed net current liabilities and improved net assets and equity attributable to owners Key Data from Condensed Consolidated Statement of Financial Position (As of June 30) | Indicator | June 30, 2025 (HKD thousands) | December 31, 2024 (HKD thousands) | | :--- | :--- | :--- | | Non-current assets | 309,575 | 315,685 | | Current assets | 70,558 | 64,146 | | Current liabilities | 146,642 | 146,103 | | Net current liabilities | (76,084) | (81,957) | | Net assets | 222,748 | 220,653 | | Equity attributable to owners of the Company | 223,849 | 221,297 | | Total equity | 222,748 | 220,653 | - Net current liabilities narrowed from HKD 81,957,000 as of December 31, 2024, to HKD 76,084,000 as of June 30, 2025[7] Profit/(Loss) Before Income Tax The period's profit before income tax was primarily influenced by a significant increase in fair value gains on financial assets at fair value through profit or loss (HKD 16,405,000), contrasting with a loss in the prior year, alongside a decrease in finance costs Composition of Profit/(Loss) Before Income Tax (Six Months Ended June 30) | Item | 2025 (HKD thousands) | 2024 (HKD thousands) | | :--- | :--- | :--- | | Interest expense on bank loans | 2,447 | 3,508 | | Interest expense on lease liabilities | 303 | 249 | | Total finance costs | 2,750 | 3,757 | | Fair value (gains)/losses on financial assets at fair value through profit or loss | (16,405) | 11,980 | | Depreciation | 5,582 | 6,207 | - Total finance costs decreased by 26.8% year-on-year, from HKD 3,757,000 to HKD 2,750,000[22] Income Tax Credit The Group had no assessable profit during the reporting period, resulting in no Hong Kong profits tax provision, and no deferred tax assets were recognized due to uncertainty regarding their realization - The Group had no assessable profit during the reporting period, and no Hong Kong profits tax provision was made[23] - No deferred tax assets were recognized due to uncertainty regarding their realization[23] Earnings/(Loss) Per Share Basic earnings per share attributable to owners of the Company was 0.78 HK cents, a significant improvement from the prior year's loss of 7.38 HK cents per share, primarily due to the period's profit Earnings/(Loss) Per Share (Six Months Ended June 30) | Indicator | 2025 | 2024 | | :--- | :--- | :--- | | Basic earnings/(loss) per share | 0.78 HK cents | (7.38) HK cents | | Diluted earnings/(loss) per share | 0.78 HK cents | (7.38) HK cents | - Basic earnings per share turned from a loss of HKD 24,079,000 in the same period last year to a profit of HKD 2,552,000 in the current period[25] Loans Receivable and Other Receivables, Deposits and Prepayments As of June 30, 2025, total loans receivable and other receivables, deposits, and prepayments amounted to HKD 8,638,000, slightly lower than HKD 8,896,000 as of December 31, 2024 Loans Receivable and Other Receivables, Deposits and Prepayments (As of June 30) | Item | June 30, 2025 (HKD thousands) | December 31, 2024 (HKD thousands) | | :--- | :--- | :--- | | Loans receivable | 1,942 | 2,642 | | Other receivables | 1,676 | 1,304 | | Prepayments | 667 | 601 | | Deposits | 4,353 | 4,349 | | Total | 8,638 | 8,896 | Trade Payables As of June 30, 2025, the Group's total trade payables were HKD 48,000, a decrease from HKD 76,000 as of December 31, 2024 Aging Analysis of Trade Payables (As of June 30) | Aging | June 30, 2025 (HKD thousands) | December 31, 2024 (HKD thousands) | | :--- | :--- | :--- | | 0-30 days | 37 | 52 | | 31-60 days | 11 | 20 | | 61-90 days | – | 4 | | Total | 48 | 76 | Business Review and Segment Information This section reviews the Group's overall performance, macroeconomic environment, and detailed performance across its six operating segments, including revenue, results, assets, liabilities, and geographical information Overall Performance Review The Group's turnover decreased by 7% to HKD 22,151,000 and gross profit decreased by 17% to HKD 6,841,000 year-on-year, but the period saw a turnaround from net loss to a net profit of HKD 2,095,000, driven by fair value gains from securities investments and reduced administrative and finance costs Overall Performance Overview (Six Months Ended June 30) | Indicator | 2025 (HKD thousands) | 2024 (HKD thousands) | Year-on-Year Change | | :--- | :--- | :--- | :--- | | Turnover | 22,151 | 23,767 | -7% | | Gross profit | 6,841 | 8,211 | -17% | | Profit/(Loss) for the period | 2,095 | (24,581) | Turned from loss to profit | | Fair value gains/(losses) on financial assets at fair value through profit or loss | 16,405 | (11,980) | Significant improvement | | Reduction in administrative expenses and finance costs | 2,038 | - | - | Macroeconomic Environment The first half of 2025 presented a challenging global economic landscape with geopolitical tensions and US trade policies impacting the outlook, while Hong Kong and Macau faced retail and real estate challenges, but saw moderate GDP growth and a rebound in Macau's GDP, respectively, with strong securities market performance and declining finance costs - The global economic environment remains challenging, with ongoing geopolitical tensions and impacts from US trade policies[29] - Hong Kong's GDP grew by 3% and 3.1% year-on-year in Q1 and Q2 respectively; Macau's GDP decreased by 1.3% in Q1 but rebounded to 5.1% in Q2[29] - Securities investments showed significant valuation gains, with strong trading volumes in Hong Kong's capital market and outstanding performance in the US stock market[30] - Finance costs decreased by approximately 27%, mainly due to the federal funds rate stabilizing from 5.25%-5.5% to 4.25%-4.5%[30] Revenue and Segment Information The Group's business is divided into six operating segments: hair salons, hotel and hospitality services, property investment, securities investment, property project management, and lending, with significant variations in revenue and performance, notably the securities investment segment turning from loss to profit and contributing most to overall Group performance - The Group identifies six operating segments: hair salons, hotel and hospitality services, property investment, securities investment, property project management, and lending[14] Segment Revenue and Results The Group's total revenue for the period was HKD 22,151,000, a 7% year-on-year decrease, with the securities investment segment's performance turning from a loss of HKD 10,544,000 in the prior year to a profit of HKD 17,431,000, serving as the primary driver for the Group's overall positive performance Segment Revenue and Results (Six Months Ended June 30) | Segment | 2025 Revenue (HKD thousands) | 2024 Revenue (HKD thousands) | 2025 Results (HKD thousands) | 2024 Results (HKD thousands) | | :--- | :--- | :--- | :--- | :--- | | Hair Salon | 6,174 | 6,520 | 34 | 8 | | Hotel and Hospitality Services | 13,439 | 14,200 | (204) | (547) | | Property Investment | 1,473 | 1,578 | (8,512) | (6,609) | | Securities Investment | 1,027 | 1,428 | 17,431 | (10,544) | | Property Project Management | – | – | (3) | (5) | | Lending | 38 | 41 | (8) | (6) | | Total | 22,151 | 23,767 | 8,738 | (17,703) | - The securities investment segment's performance turned from a loss of HKD 10,544,000 in the first half of 2024 to a profit of HKD 17,431,000 in the first half of 2025[15] Segment Assets and Liabilities As of June 30, 2025, the Group's total consolidated assets slightly increased to HKD 380,133,000, with hotel and hospitality services and property investment segments accounting for a significant portion of assets, while total consolidated liabilities slightly decreased Segment Assets and Liabilities (As of June 30) | Item | June 30, 2025 (HKD thousands) | December 31, 2024 (HKD thousands) | | :--- | :--- | :--- | | Total segment assets | 372,867 | 369,316 | | Total consolidated assets | 380,133 | 379,831 | | Total segment liabilities | 51,700 | 52,156 | | Total consolidated liabilities | 157,385 | 159,178 | - Assets for the hotel and hospitality services segment were HKD 226,180,000, and for the property investment segment were HKD 85,363,000, together accounting for the majority of total segment assets[17] Other Segment Information For the period, total interest income was HKD 36,000, fair value loss on investment properties was HKD 5,800,000, total finance costs were HKD 2,750,000, and total depreciation was HKD 5,582,000 Other Segment Information (Six Months Ended June 30) | Item | 2025 (HKD thousands) | 2024 (HKD thousands) | | :--- | :--- | :--- | | Interest income | 36 | 56 | | Fair value loss on investment properties | 5,800 | 4,000 | | Finance costs | 2,750 | 3,757 | | Additions to specified non-current assets | 9 | 64 | | Depreciation | 5,582 | 6,207 | Geographical Information The Group's specified non-current assets are primarily located in Hong Kong (HKD 235,088,000) and Macau (HKD 73,521,000), with revenue from external customers also mainly derived from Hong Kong (HKD 20,933,000) and Macau (HKD 1,218,000) Specified Non-Current Assets and Revenue from External Customers (By Geographical Area) | Region | Specified Non-Current Assets as of June 30, 2025 (HKD thousands) | Revenue from External Customers in 2025 (HKD thousands) | | :--- | :--- | :--- | | Hong Kong | 235,088 | 20,933 | | Macau | 73,521 | 1,218 | | Total | 308,609 | 22,151 | Performance of Each Business Segment The Group's business segments showed varied performance: property investment saw decreased rental income and valuation losses; hair salon business had lower turnover but increased segment profit; hotel and hospitality services experienced reduced turnover but narrowed losses; securities investment recorded significant fair value gains due to favorable market conditions; property project management had no revenue; and lending business saw slight decreases in interest income and operating loss Property Investment Business The property investment business contributed HKD 1,473,000 in rental income for the first half, a 7% year-on-year decrease primarily due to the sale of a Taikoo Shing property, while investment properties in Hong Kong and Macau recorded a valuation loss of HKD 5,800,000, with retail shops accounting for approximately 70% of the loss, and Macau's residential leasing market showing positive performance - Rental income was HKD 1,473,000, a 7% year-on-year decrease, mainly due to the sale of a Taikoo Shing property[31] - Investment properties recorded a valuation loss of HKD 5,800,000, with retail shop losses accounting for approximately 70%[31] - Macau's residential leasing market performed positively, with new lease rents increasing by approximately 5%[33] Hair Salon Business The hair salon business generated HKD 6,174,000 in turnover, a 5% year-on-year decrease, but segment profit increased to HKD 34,000, mainly due to reduced interest expenses and staff long service payment provisions, as the business addresses talent outflow, northbound consumption, and emigration impacts through digital marketing and expanding hair extension and scalp care services Hair Salon Business Performance (Six Months Ended June 30) | Indicator | 2025 (HKD thousands) | 2024 (HKD thousands) | | :--- | :--- | :--- | | Turnover | 6,174 | 6,520 | | Segment profit | 34 | 8 | - Segment profit increased by approximately three times year-on-year, primarily due to reduced revenue, lower interest expenses on right-of-use assets, and decreased provisions for staff long service payments[34] - Addressing declining turnover through digital marketing, social media promotion, and expanding hair extension and scalp care services[35][36] Hotel and Hospitality Services Business The hotel and hospitality services business recorded HKD 13,439,000 in turnover, a 5% year-on-year decrease, but net loss narrowed by 63% to HKD 204,000, mainly due to reduced depreciation of right-of-use assets for the North Point hostel, as Hong Kong's tourism recovers amidst challenges of declining average room rates and increased accommodation tax Hotel and Hospitality Services Business Performance (Six Months Ended June 30) | Indicator | 2025 (HKD thousands) | 2024 (HKD thousands) | | :--- | :--- | :--- | | Turnover | 13,439 | 14,200 | | Net loss | (204) | (547) | - Net loss narrowed by 63%, primarily due to a significant reduction in depreciation of right-of-use assets for the North Point hostel[38] - Hong Kong's tourism industry shows strong momentum, receiving approximately 23.6 million visitors in the first half, a 11.7% year-on-year increase[39] - The hotel industry faces challenges of increased occupancy rates but declining average room rates, with the re-imposition of hotel accommodation tax adding cost pressure[40] Securities Investment Business As of June 30, 2025, the securities investment business held financial assets of approximately HKD 53,635,000, recording a fair value gain of HKD 16,405,000 for the period, a significant improvement from the prior year's loss of HKD 11,980,000, primarily driven by substantial increases in the market value of Hong Kong and US listed securities, with the Group divesting underperforming securities and investing in high-growth US technology and innovation stocks for diversification Key Data from Securities Investment Business (Six Months Ended June 30) | Indicator | 2025 (HKD thousands) | 2024 (HKD thousands) | | :--- | :--- | :--- | | Fair value gains/(losses) on financial assets at fair value through profit or loss | 16,405 | (11,980) | | Total dividend income from this segment | 1,473 | - | | Fair value of Link Real Estate Investment Trust | 29,377 | - | | Fair value of Palantir Technologies Inc. | 24,084 | - | - The Hong Kong Hang Seng Index rose over 20% from the beginning of the year, reaching a three-and-a-half-year high, with Hong Kong becoming one of the world's largest IPO markets[43] - The Group divested some underperforming securities and invested in US stocks in high-growth sectors like technology and innovation to diversify its investment portfolio[43][44] Property Project Management Business The property project management business generated no revenue for the period, incurring a segment loss of HKD 3,000, with the Group planning to revitalize this business by collaborating with local renowned architects/interior designers to explore new projects - No revenue for the period, with a segment loss of HKD 3,000[46] - Plans to revitalize this business segment by seeking collaborations with local renowned architects/interior designers to explore more new projects[46] Other Business Segment (Lending) The lending business generated HKD 38,000 in interest income and incurred an operating loss of HKD 8,000, with a new short-term loan initiated and completed during the period, and no impairment recognized on outstanding loans receivable, as the Group adopts a prudent approach to managing its loan portfolio and diversifying credit risk Lending Business Performance (Six Months Ended June 30) | Indicator | 2025 (HKD thousands) | 2024 (HKD thousands) | | :--- | :--- | :--- | | Interest income | 38 | 41 | | Operating loss | (8) | (6) | - A new short-term loan was initiated and completed during the period, with no impairment recognized on outstanding loans receivable[47] Financial Position and Management This section covers the Group's liquidity, financial resources, treasury policies, foreign exchange risk, asset pledges, contingent liabilities, capital commitments, material investments, capital structure, and employee remuneration policies Liquidity and Financial Resources As of June 30, 2025, the Group's cash and bank balances were HKD 8,417,000, with net current liabilities of HKD 76,084,000, and the current ratio improved to approximately 0.48 from the end of last year Liquidity and Financial Resources (As of June 30) | Indicator | June 30, 2025 (HKD thousands) | December 31, 2024 (HKD thousands) | | :--- | :--- | :--- | | Cash and bank balances | 8,417 | 12,410 | | Net current liabilities | (76,084) | (81,957) | | Current ratio | 0.48 | 0.44 | - The current ratio improved from 0.44 as of December 31, 2024, to 0.48 as of June 30, 2025, indicating improved liquidity[50] Financial Management, Treasury Policy and Foreign Exchange Risk There were no significant changes in the Group's financial management, treasury policies, and foreign exchange risk compared to the information disclosed in the 2024 annual report - No significant changes in financial management, treasury policy, and foreign exchange risk compared to the 2024 annual report[51] Pledge of Assets During the period, certain investment properties of the Group were pledged to banks to secure bank borrowings of approximately HKD 118,543,000, which bear interest at floating rates - Certain investment properties were pledged to banks to secure bank borrowings of approximately HKD 118,543,000[52] Contingent Liabilities and Capital Commitments As of June 30, 2025, neither the Company nor the Group had any significant contingent liabilities or material capital commitments - As of June 30, 2025, neither the Company nor the Group had any significant contingent liabilities or capital commitments[53] Material Investments Apart from the securities investments disclosed in this announcement, the Group had no other material investments or future plans for material investments or capital assets as of June 30, 2025 - No other material investments or future plans apart from the disclosed securities investments[54] Capital Structure The Group's total equity was HKD 222,748,000, with fixed-rate liabilities, floating-rate liabilities, and interest-free liabilities accounting for 5%, 53%, and 12% of total equity, respectively, and the debt-to-asset ratio decreased to approximately 4% from the end of last year Capital Structure (As of June 30) | Liability Type | Amount (HKD thousands) | Percentage of Total Equity | | :--- | :--- | :--- | | Fixed-rate liabilities | 11,614 | 5% | | Floating-rate liabilities | 118,543 | 53% | | Interest-free liabilities | 27,228 | 12% | | Debt-to-asset ratio | - | 4% | - The debt-to-asset ratio decreased from 5% as of December 31, 2024, to 4% as of June 30, 2025[55] Employees and Remuneration Policy As of the period end, the Group employed approximately 46 employees, with staff costs of HKD 6,580,000, and its remuneration policy is market-competitive, reviewed annually based on employee and Group performance, with a share option scheme available for directors and employees Employee and Remuneration Information (As of June 30) | Indicator | 2025 | 2024 | | :--- | :--- | :--- | | Number of employees | 46 | 48 | | Staff costs (HKD thousands) | 6,580 | 6,453 | - Remuneration policy is market-competitive and determined based on individual employee performance[56] Future Outlook This section outlines the Group's overall outlook for the remainder of 2025, including specific prospects for the hotel and hospitality services and hair salon businesses, emphasizing continuous improvement, financial strengthening, debt reduction, and strategic asset realization Overall Outlook The outlook for the remainder of 2025 is uncertain, influenced by the global economic environment, geopolitical risks, and US trade policies, prompting the Group to continuously improve, strengthen its financial position, explore debt reduction plans, and strategically realize underperforming assets to increase revenue, reduce costs, and enhance efficiency - Future outlook is affected by global economic uncertainty, geopolitical tensions, and US trade policies[57] - The Group will strengthen its financial position, explore debt reduction plans, and strategically realize underperforming assets to generate cash inflows[57] Hotel and Hospitality Services Business Outlook The short-term outlook for the hotel industry is mixed, but the Group remains cautiously optimistic about the long-term prospects for Hong Kong's tourism and hotel sector, with the HKSAR Government's "Hong Kong Tourism Development Blueprint 2.0" and the opening of Kai Tak Sports Park expected to solidify Hong Kong's position as a world-class tourist destination, offering recovery potential for the Group's mid-range hostels - The Group remains cautiously optimistic about the long-term prospects for Hong Kong's tourism and hotel industry[58] - The HKSAR Government's "Hong Kong Tourism Development Blueprint 2.0" and the opening of Kai Tak Sports Park are expected to boost tourism development[58] - The Group's mid-range hostel brands' recognition and customer base are expected to provide resilience and recovery potential[58] Hair Salon Business Outlook The hair salon business will continue to focus on customer service standards and seek growth opportunities by understanding customer needs and embracing technological innovation, with AI-driven personalized hair care recommendations and digital consultation platforms expected to reshape the salon experience and enhance customer engagement and retention - The hair salon business will continue to focus on customer service standards and embrace technological innovation[59] - Introducing technological innovations such as AI-driven personalized hair care recommendations and digital consultation platforms is expected to reshape the salon experience, increasing customer engagement and retention[59] Corporate Governance and Others This section covers the Group's corporate social responsibility initiatives, interim dividend policy, share transactions, corporate governance practices, audit committee review, directors' securities trading, publication of results, and board composition Corporate Social Responsibility The Group has received the "Caring Company" award for seventeen consecutive years from The Hong Kong Council of Social Service, along with other recognitions like "Good MPF Employer" and "Manpower Developer," demonstrating its firm commitment to social responsibility - Received the "Caring Company" award for seventeen consecutive years and multiple other corporate social responsibility recognitions[49] Interim Dividend The Directors do not recommend the payment of an interim dividend for the six months ended June 30, 2025 - The Directors do not recommend the payment of an interim dividend for the six months ended June 30, 2025[24] Purchase, Sale or Redemption of Listed Securities Neither the Company nor any of its subsidiaries purchased, sold, or redeemed any of the Company's shares during the period - Neither the Company nor its subsidiaries purchased, sold, or redeemed any of the Company's shares during the period[61] Corporate Governance The Company generally complied with the Corporate Governance Code in Appendix C1 Part 2 of the Listing Rules during the review period, with the Board believing the combined roles of Chairman and Chief Executive Officer serve the best interests of the Company and its shareholders, and the Audit Committee has reviewed the interim financial statements, with all directors confirming compliance with the standard code for securities transactions Compliance with Listing Rules Best Practice Guide The Company generally complied with the Corporate Governance Code, although the roles of Chairman and Chief Executive Officer are held by Mr. Tsang Chiu Wu, an arrangement the Board believes is in the best overall interests of the Company and its shareholders - The Company generally complied with the Corporate Governance Code, but the roles of Chairman and Chief Executive Officer are held by Mr. Tsang Chiu Wu[62] Audit Committee and Review of Interim Financial Statements The Audit Committee, comprising all independent non-executive directors, has discussed with management and reviewed the Group's unaudited condensed consolidated financial statements for the six months ended June 30, 2025 - The Audit Committee has reviewed the Group's unaudited condensed consolidated financial statements for the six months ended June 30, 2025[63] Standard Code for Directors' Securities Transactions The Company has adopted the Standard Code as set out in Appendix C3 of the Listing Rules, and all Directors confirmed compliance with this code during the review period - All Directors confirmed compliance with the Standard Code as set out in Appendix C3 of the Listing Rules during the review period[64] Publication of Unaudited Interim Results and Interim Report This interim results announcement has been published on the HKEXnews website and the Company's website, with the interim report to be dispatched to shareholders and made available for inspection in due course - The interim results announcement has been published on the HKEXnews website and the Company's website[65] Board of Directors As of the date of this announcement, the Company's Board of Directors comprises seven directors, including three executive directors (Mr. Tsang Chiu Wu, Ms. Tsang Chiu Wun, and Ms. Chu Ming Tak) and four independent non-executive directors (Mr. Hui Yan Kit, Mr. Lau Pui Wing, Ms. Ho Ting Mei, and Mr. Ng Bun Kuen) - The Board of Directors consists of three executive directors and four independent non-executive directors[66]