爪哇控股(00251) - 2025 - 中期业绩

Interim Results Announcement Summary Financial Summary Revenue slightly increased by 0.4% and operating profit before fair value changes of investment properties rose by 7.0%, but loss attributable to shareholders significantly increased by 121.4% due to fair value losses and finance costs, with an interim dividend of HK 2 cents per share Key Financial Data for H1 2025 | Metric | 2025 (HKD thousands) | 2024 (HKD thousands) | Change (%) | | :--- | :--- | :--- | :--- | | Revenue | 204,300 | 203,500 | +0.4% | | Operating Profit Before Fair Value Changes of Investment Properties | 103,700 | 96,900 | +7.0% | | Loss Attributable to Company Shareholders | (159,400) | (72,000) | +121.4% | | Net Asset Value Per Share (as at June 30) | HKD 13.4 | N/A | N/A | | Interim Dividend (Per Share) | HK 2 cents | HK 2 cents | 0% | - The loss attributable to company shareholders was primarily due to fair value losses on investment properties and finance costs from bank borrowings, with fair value losses being a non-cash item[103] Unaudited Results Condensed Consolidated Income Statement The Group's total revenue slightly increased, but a net loss for the period significantly expanded from the prior year, mainly due to fair value changes of investment properties and higher finance costs Condensed Consolidated Income Statement Summary (HKD thousands) | Metric | 2025 | 2024 | | :--- | :--- | :--- | | Total Revenue | 204,329 | 203,545 | | Operating Profit Before Fair Value Changes of Investment Properties | 103,719 | 96,853 | | Fair Value Changes of Investment Properties | (102,665) | – | | Finance Costs | (150,568) | (187,324) | | Loss for the Period | (159,388) | (72,046) | | Basic and Diluted Loss Per Share (HK cents) | (26.5) | (12.0) | - Fair value changes of investment properties shifted from no change in the prior period to a loss of HKD 102,665 thousands in the current period, a key factor contributing to the expanded loss[8] - Finance costs decreased by 19.6% year-on-year, from HKD 187,324 thousands to HKD 150,568 thousands[8] Condensed Consolidated Statement of Profit or Loss and Other Comprehensive Income The Group recorded a total comprehensive expense for the period, despite improvements in other comprehensive income items, which could not fully offset the loss for the period Condensed Consolidated Statement of Profit or Loss and Other Comprehensive Income Summary (HKD thousands) | Metric | 2025 | 2024 | | :--- | :--- | :--- | | Loss for the Period | (159,388) | (72,046) | | Other Comprehensive Income (Expense) | 140,179 | (6,687) | | Total Comprehensive Expense Attributable to Company Shareholders for the Period | (19,209) | (78,733) | - Exchange differences arising from translation of foreign operations shifted from a loss of HKD 7,706 thousands in 2024 to a gain of HKD 119,193 thousands in 2025, significantly impacting other comprehensive income positively[20] Condensed Consolidated Statement of Financial Position As of June 30, 2025, investment properties increased, but cash and cash equivalents significantly decreased, while total equity slightly declined and non-current bank borrowings reduced Condensed Consolidated Statement of Financial Position Summary (HKD thousands) | Metric | 2025年6月30日 | 2024年12月31日 | | :--- | :--- | :--- | | Investment Properties | 6,838,350 | 6,682,012 | | Cash and Cash Equivalents | 1,785,066 | 2,447,750 | | Net Current Assets | 1,015,749 | 1,517,395 | | Total Equity | 3,886,181 | 3,923,454 | | Non-current Bank Borrowings | 5,225,852 | 5,600,815 | - Net current assets decreased from HKD 1,517,395 thousands as of December 31, 2024, to HKD 1,015,749 thousands as of June 30, 2025[26] - Non-current bank borrowings decreased by HKD 374,963 thousands, contributing to capital structure optimization[32] Notes Basis of Preparation These condensed consolidated financial statements are prepared in accordance with HKAS 34 'Interim Financial Reporting' and Listing Rules disclosure requirements - The financial statements comply with Hong Kong Accounting Standard 34 issued by the Hong Kong Institute of Certified Public Accountants and the Rules Governing the Listing of Securities on The Stock Exchange of Hong Kong Limited[38] Accounting Policies These condensed consolidated financial statements are primarily prepared on a historical cost basis, with investment properties and certain financial instruments measured at fair value, and new HKFRS amendments had no significant impact - Accounting policies are consistent with the 2024 annual financial statements, except for the first-time application of HKAS 21 (Amendment) 'Lack of Exchangeability', which had no significant impact[39][40] Segment Information The Group's main operating segments include property development, property investment, hotel operations, and financial investments, with property investment recording a loss due to fair value decrease, and financial investments achieving significant profit growth Segment Revenue and Results Summary (HKD thousands) | Segment | 2025 Revenue | 2025 Results | 2024 Revenue | 2024 Results | | :--- | :--- | :--- | :--- | :--- | | Property Development | – | (13,076) | – | 18,735 | | Property Investment | 108,296 | (478) | 100,905 | 96,408 | | Hotel Operations | 82,165 | 7,308 | 90,897 | 10,189 | | Financial Investments | 13,868 | 26,486 | 11,743 | 9,675 | | Consolidated Total | 204,329 | 20,240 | 203,545 | 135,007 | - Property investment segment results include a fair value decrease of investment properties by HKD 103,693 thousands, with no such change in the prior period[48] - Financial investments segment results significantly increased from HKD 9,675 thousands in 2024 to HKD 26,486 thousands in 2025[48] Revenue The Group's revenue primarily derives from investment property rentals, hotel operations, and financial investment returns, with rental income increasing and hotel revenue decreasing Revenue Sources Summary (HKD thousands) | Revenue Source | 2025 | 2024 | | :--- | :--- | :--- | | Investment Property Rentals | 108,296 | 100,905 | | Hotel Operations | 82,165 | 90,897 | | Financial Investment Returns (Interest Income and Others) | 13,868 | 11,743 | | Total Revenue | 204,329 | 203,545 | - Hotel operations revenue decreased, primarily due to a decline in hotel room revenue from HKD 75,055 thousands to HKD 66,248 thousands[60] - Interest income and other financial investment returns increased from HKD 11,743 thousands to HKD 13,868 thousands, mainly driven by higher interest income from listed debt securities and fixed deposits[56][60] Other Income The Group's other income, including bank deposit interest, management fees, and miscellaneous items, slightly decreased in total for the period Other Income Summary (HKD thousands) | Item | 2025 | 2024 | | :--- | :--- | :--- | | Interest Income from Bank Deposits | 3,899 | 5,702 | | Management Fee Income | 7,917 | 7,917 | | Others | 2,341 | 2,189 | | Total | 14,157 | 15,808 | - Interest income from bank deposits decreased by approximately 31.6% year-on-year[61] Property and Related Costs Property and related costs, comprising selling and marketing expenses and direct operating expenses for investment properties, slightly decreased in total for the period Property and Related Costs Summary (HKD thousands) | Item | 2025 | 2024 | | :--- | :--- | :--- | | Selling and Marketing Expenses | 260 | 270 | | Direct Operating Expenses for Investment Properties | 1,962 | 1,992 | | Total | 2,222 | 2,262 | Other Gains and Losses Other gains and losses for the period shifted from a loss to a gain, primarily due to gains on disposal of financial assets measured at fair value through profit or loss, offsetting exchange losses Other Gains and Losses Summary (HKD thousands) | Item | 2025 | 2024 | | :--- | :--- | :--- | | Net Exchange (Loss) Gain | (9,979) | 791 | | Gain on Disposal of Financial Assets Measured at Fair Value Through Profit or Loss | 11,822 | – | | Gain (Loss) on Disposal/Derecognition of Debt Instruments Measured at Fair Value Through Other Comprehensive Income | 1,059 | (1,908) | | Total | 2,902 | (1,117) | - A net exchange loss of HKD 9,979 thousands was recorded for the period, compared to a gain of HKD 791 thousands in the prior period[63] - Gains of HKD 11,822 thousands were generated from the disposal of financial assets measured at fair value through profit or loss, with no such gains in the prior period[63] Finance Costs The Group's finance costs, mainly from bank borrowing interest and upfront fee amortization, significantly decreased year-on-year in the current period Finance Costs Summary (HKD thousands) | Item | 2025 | 2024 | | :--- | :--- | :--- | | Interest on Bank Borrowings | 135,768 | 171,753 | | Amortization of Upfront Fees for Bank Borrowings | 8,035 | 8,520 | | Interest on Lease Liabilities | 2,601 | 2,666 | | Other Fees | 4,164 | 4,385 | | Total | 150,568 | 187,324 | - Interest on bank borrowings decreased by approximately 20.9% year-on-year, being the primary reason for the decline in total finance costs[69] Income Tax Expense The Group incurred no income tax expense in the current period, compared to a small tax expense in the prior period Income Tax Expense Summary (HKD thousands) | Item | 2025 | 2024 | | :--- | :--- | :--- | | Current Year Tax | – | 18 | | Deferred Tax | – | 501 | | Total | – | 519 | Dividends The Board declared an interim dividend of HK 2 cents per share, consistent with the prior period, and confirmed the payment of last year's final dividend Dividend Distribution Summary (HKD thousands) | Item | 2025 | 2024 | | :--- | :--- | :--- | | Final Dividend for the Year Ended December 31, 2024 (HK 3 cents per share) | 18,064 | 18,064 | | Interim Dividend Declared (HK 2 cents per share) | 12,042 | 12,042 | - The interim dividend will be dispatched on or before October 14, 2025, to shareholders whose names appear on the register of members on September 26, 2025[71] Loss Per Share Basic loss per share for the period was HK 26.5 cents, an increase from the prior period, with diluted loss per share being identical due to the Group's overall loss Loss Per Share Summary (HK cents) | Metric | 2025 | 2024 | | :--- | :--- | :--- | | Basic and Diluted Loss Per Share | (26.5) | (12.0) | - The weighted average number of ordinary shares used to calculate basic and diluted loss per share was 602,122,726 shares, remaining unchanged for both periods[78] Trade and Other Receivables, Deposits and Prepayments The Group's total trade and other receivables, deposits, and prepayments decreased, mainly due to reduced prepaid upfront fees, with trade receivables having a 0 to 30-day credit period Trade and Other Receivables, Deposits and Prepayments Summary (HKD thousands) | Item | 2025年6月30日 | 2024年12月31日 | | :--- | :--- | :--- | | Trade Receivables | 2,864 | 3,303 | | Prepaid Upfront Fees | – | 6,484 | | Deposits, Prepayments and Other Receivables | 25,545 | 29,286 | | Total | 28,409 | 39,073 | Ageing Analysis of Trade Receivables (HKD thousands) | Ageing | 2025年6月30日 | 2024年12月31日 | | :--- | :--- | :--- | | 0 to 30 Days | 2,653 | 3,188 | | 31 to 60 Days | 140 | 115 | | 61 to 90 Days | 71 | – | | Total | 2,864 | 3,303 | Assets Classified as Held for Sale The Group entered into an agreement to sell an investment property in Hong Kong, which has been classified as an asset held for sale - On April 25, 2025, the Group entered into a formal agreement to sell an investment property in Hong Kong to an independent third party for a consideration of approximately HKD 160,000 thousands[87][119] Assets Classified as Held for Sale (HKD thousands) | Item | 2025年6月30日 | | :--- | :--- | | Investment Properties | 128,000 | | Assets Classified as Held for Sale | 128,000 | Payables, Rental Deposits and Accrued Expenses The Group's total payables, rental deposits, and accrued expenses decreased, with changes in both trade payables and interest payables Payables, Rental Deposits and Accrued Expenses Summary (HKD thousands) | Item | 2025年6月30日 | 2024年12月31日 | | :--- | :--- | :--- | | Trade Payables | 717 | 1,280 | | Rental Deposits | 7,905 | 8,944 | | Rental Received in Advance | 48,459 | 43,889 | | Other Payables, Other Deposits and Accrued Expenses | 61,404 | 85,755 | | Interest Payables | 15,412 | 12,444 | | Total | 133,897 | 152,312 | - The average credit period for trade payables is 60 days[95] Management Discussion and Analysis Financial Summary The Group's revenue slightly increased, and operating profit before fair value changes of investment properties rose, but loss attributable to shareholders expanded due to fair value losses and finance costs, though finance costs decreased and fair value losses were non-cash H1 2025 Financial Performance (HKD millions) | Metric | 2025 | 2024 | | :--- | :--- | :--- | | Revenue | 204.3 | 203.5 | | Operating Profit Before Fair Value Changes of Investment Properties | 103.7 | 96.9 | | Loss Attributable to Company Shareholders | (159.4) | (72.0) | | Finance Costs | 150.6 | 187.3 | | Equity Attributable to Company Shareholders (Period-end) | 3,886.2 | 3,923.5 | | Net Asset Value Per Share Attributable to Company Shareholders (Period-end) | HKD 6.5 | HKD 6.5 | - Rental income from investment properties contributed approximately HKD 108.3 millions to revenue, an increase of 7.3% compared to 2024[103] - After adjusting for the market value of hotel properties, the adjusted net asset value per share attributable to company shareholders was HKD 13.4[110] Business Review The Group's business focuses on property investment and development in Hong Kong and the UK, with hotel operations facing challenges and financial investments prudently managed - The Group's strategy is to periodically review and optimize its project portfolio, with current core projects including 1 Shouson Hill Road East, Jardine's Lookout Inland Lot No. 7384, parts of Warwick House, the joint venture residential project 'The Victoria Skye' and Repulse Bay South Bay Road project in Hong Kong, as well as 20 Moorgate and 33 Old Broad Street in London, UK[111] Property Investment and Development The Group continuously optimizes its property portfolio, with core projects including residential and commercial properties in Hong Kong and two investment properties in London, UK Hong Kong Hong Kong property projects are progressing well, with 'The Victoria Skye' completed and largely sold, Warwick House rental income increasing, a detached house sold at Shouson Hill Road East, and other luxury residential projects proceeding as planned - The 'The Victoria Skye' project has sold over 1,370 units, generating total sales proceeds exceeding HKD 23,200 millions, with the Group receiving approximately HKD 152 millions in cash during the period[112] - Warwick House rental income slightly increased, with occupancy rising by 9%[119] - The Group entered into an agreement to sell a detached house at Shouson Hill Road East for approximately HKD 160 millions, with completion expected on or before October 8, 2025[119] United Kingdom The Group's two London investment properties, 20 Moorgate and 33 Old Broad Street, provide stable cash flow through long-term leases and reputable tenants - Almost the entire property at 20 Moorgate has been long-term leased by the UK Prudential Regulation Authority as its headquarters[120] - 33 Old Broad Street is fully leased to the Bank of Scotland, with rents fixed to increase every five years, having already increased by 13% last year[120] Hotel Operations Crowne Plaza Hong Kong Causeway Bay's performance moderately declined due to decreased occupancy and average room rates, with the Group enhancing service quality to address challenges - The hotel's performance decline was mainly due to decreased occupancy and average room rates, leading to a reduction in overall revenue[121] - The Group will continue to enhance hotel service quality to address challenges and capitalize on opportunities[128] Financial Investments The Group prudently manages capital, optimizing its structure and reducing gearing, with financial investment portfolio value slightly decreasing but no debt securities impairment losses Financial Investment Portfolio Value (HKD thousands) | Metric | 2025年6月30日 | 2024年12月31日 | | :--- | :--- | :--- | | Total Financial Investments | 237,700 | 246,200 | - No impairment losses were recorded on debt securities in both the current and prior periods[129] Financial Resources and Liquidity The Group maintains high financial flexibility and liquidity through prudent financial policy, with stable available funds, a slight increase in net debt, and a small rise in the asset-to-liability ratio Financial Policy The Group adheres to a prudent financial policy with non-recourse project borrowings, maintaining high financial flexibility and liquidity, and anticipates no significant refinancing needs until 2026 - All project borrowings are on a non-recourse basis, with no cross-default covenants at the company level[130] - The Group anticipates no significant refinancing needs until 2026[130] Working Capital and Loan Financing The Group's total available funds are stable, but cash and cash equivalents decreased, while total bank borrowings declined, net debt and the asset-to-liability ratio slightly increased, and a HKD 1 billion committed revolving syndicated loan provides ample liquidity Working Capital and Loan Financing Summary (HKD thousands) | Metric | 2025年6月30日 | 2024年12月31日 | | :--- | :--- | :--- | | Total Available Funds | 5,684,200 | 5,642,100 | | Total Bank Balances and Cash | 2,287,700 | 2,645,600 | | Undrawn Facilities | 3,396,500 | 2,996,500 | | Total Bank Borrowings | 6,635,200 | 6,842,100 | | Net Debt | 4,109,800 | 3,950,300 | | Asset-to-Liability Ratio | 33.0% | 31.4% | - The Group has a HKD 1,000,000 thousands committed revolving syndicated loan facility provided by seven financial institutions, with no drawings currently made[131] Outstanding Borrowings Maturity (HKD millions) | Maturity | 2025年6月30日 | 2024年12月31日 | | :--- | :--- | :--- | | Within One Year | 1,426.9 | 1,257.1 | | One to Two Years | 1,588.2 | 1,599.8 | | Three to Five Years | 3,663.9 | 3,529.6 | | Over Five Years | – | 500.2 | | Total | 6,679.0 | 6,886.7 | Pledge of Assets The Group's bank borrowings in Hong Kong and the UK are secured by assets, with Hong Kong's borrowings collateralized by properties and cash, and UK borrowings by investment properties and cash - Hong Kong subsidiaries' secured bank borrowings of HKD 2,703,300 thousands are collateralized by properties with a carrying value of HKD 3,425,200 thousands and cash of HKD 31,000 thousands[140] - UK subsidiaries have pledged investment properties with a total carrying value of HKD 4,010,700 thousands and cash of HKD 121,900 thousands to secure bank borrowings of HKD 2,717,200 thousands[141] Employee Information The Group's total number of employees in Hong Kong slightly decreased, but it maintains good working relationships and offers competitive remuneration, benefits, and training to retain and motivate talent Employee Data Summary | Metric | 2025年6月30日 | 2024 | | :--- | :--- | :--- | | Total Hong Kong Employees | 180 | 190 | | Employee Costs (HKD thousands) | 48,900 | 48,700 | - The Group provides benefits such as medical insurance, further education and training allowances, examination leave, and pension schemes, along with share option and share award schemes to incentivize management and high-performing individuals[147] Outlook The global economic outlook is challenging due to geopolitical tensions and trade uncertainties, with global growth expected to slow, while China's economy slows, Hong Kong's property market faces challenges but rental market improves, and the UK economy recovers with lower interest rates, as the Group prudently manages its balance sheet - The International Monetary Fund forecasts global economic growth to slow from an estimated 3.3% in 2024 to 2.8% in 2025 and 3.0% in 2026[148] - China's economy grew by 5.2% in Q2 2025, with the government stimulating the economy through interest rate cuts, reserve requirement ratio reductions, and increased domestic investment[148] - Hong Kong's property market is experiencing a slow recovery in property prices, but the residential rental market shows signs of improvement due to an influx of professionals and non-local students[149] - The UK economy grew by 0.7% in Q1 2025, with the central bank having lowered interest rates to 4.25% and further reductions anticipated[155] Other Information Purchase, Sale or Redemption of the Company's Listed Securities Neither the Company nor its subsidiaries purchased, sold, or redeemed any of the Company's listed securities for the six months ended June 30, 2025 - The Company and its subsidiaries did not engage in any purchase, sale, or redemption activities of listed securities during the period[157] Corporate Governance Practices The Company has applied the principles and complied with all code provisions of the Corporate Governance Code in Appendix C1 of the Listing Rules during the interim period - The Company has complied with all code provisions of the Corporate Governance Code set out in Appendix C1 of the Listing Rules[158] Review of Interim Financial Statements The Group's unaudited condensed consolidated financial statements for the six months ended June 30, 2025, have been reviewed by the Company's Audit Committee and Deloitte Touche Tohmatsu - The interim financial statements have been reviewed by the Company's Audit Committee and Deloitte Touche Tohmatsu in accordance with Hong Kong Standard on Review Engagements 2410[159] Publication of Interim Report The Company's 2025 interim report will be dispatched to shareholders in September 2025 and published on the HKEX and Company websites - The interim report will be dispatched to shareholders in September 2025 and published on the Hong Kong Exchange and the Company's website[165] Board of Directors The Company's Board of Directors comprises executive directors, including the Chairman, President, and CFO, and independent non-executive directors - Executive Directors include Mr. Lui Wing Cheong (Chairman), Mr. Lui Luen Park (President), and Mr. Yip Sze Lim (Chief Financial Officer)[165] - Independent Non-executive Directors include Mr. Ngan Yi Fo, Mr. Chan Kwok Wai, Mr. Law Wai Tung, and Ms. Chan Pui Kwan[165]