LET GROUP(01383) - 2025 - 中期业绩

Company Announcements and Financial Highlights The company announced its unaudited interim results for the six months ended June 30, 2025, showing significant revenue and profit growth, a narrowed loss per share, and continued share suspension Interim Results Announcement LET Group Holdings Limited announced its unaudited condensed consolidated interim results for the six months ended June 30, 2025, highlighting significant growth in key financial metrics while its shares remain suspended - The Board of Directors announced the unaudited condensed consolidated interim results for the six months ended June 30, 2025[4] - The company's shares will remain suspended from trading[3] Financial Highlights For the six months ended June 30, 2025, the company's total revenue increased by 65% to approximately HK$313 million, gross profit rose by 14%, profit attributable to equity holders significantly increased, and basic loss per share narrowed Financial Highlights for the Six Months Ended June 30, 2025 | Metric | June 30, 2025 (Thousand HKD) | June 30, 2024 (Thousand HKD) | Change (%) | | :--- | :--- | :--- | :--- | | Total Revenue | 312,855 | 189,910 | +65% | | Gross Profit | 116,141 | 102,267 | +14% | | Profit Attributable to Equity Holders | 99,540 | 58,883 | +69% | | Basic Loss Per Share Attributable to Equity Holders (HK cents) | (0.49) | (1.09) | Loss narrowed | - Total revenue increased by 65% to approximately HK$312.86 million[4] - Gross profit increased by 14% to approximately HK$116.14 million[4] - Profit attributable to equity holders was approximately HK$99.54 million, a significant increase from the same period last year[4] Condensed Consolidated Financial Statements This section presents the condensed consolidated financial statements, including the statement of profit or loss and other comprehensive income, and the statement of financial position, for the reporting period Condensed Consolidated Statement of Profit or Loss and Other Comprehensive Income For the six months ended June 30, 2025, the company reported significant revenue growth and a substantial increase in profit for the period, primarily driven by a positive shift in other income, gains, and losses, despite higher finance costs Condensed Consolidated Statement of Profit or Loss and Other Comprehensive Income (Extract) | Metric | June 30, 2025 (Thousand HKD) | June 30, 2024 (Thousand HKD) | | :--- | :--- | :--- | | Revenue | 312,855 | 189,910 | | Cost of Sales | (196,714) | (87,643) | | Gross Profit | 116,141 | 102,267 | | Other Income, Gains and Losses | 227,011 | (169,837) | | Finance Costs | (15,439) | (3,234) | | Profit Before Tax | 183,759 | 25,630 | | Profit for the Period | 173,161 | 18,569 | | Basic Loss Per Share Attributable to Equity Holders (HK cents) | (0.49) | (1.09) | - Profit for the period significantly increased from HK$18.57 million in the same period of 2024 to HK$173.16 million in 2025[5] - Total other comprehensive income (expense) shifted from a HK$97.15 million expense in 2024 to an HK$88.34 million income in 2025, primarily due to exchange differences[5] Condensed Consolidated Statement of Financial Position As of June 30, 2025, the company's total non-current assets increased, mainly driven by growth in property, operating rights, and equipment, while net current assets decreased, but total equity continued to grow Condensed Consolidated Statement of Financial Position (Extract) | Metric | June 30, 2025 (Thousand HKD) | December 31, 2024 (Thousand HKD) | | :--- | :--- | :--- | | Total Non-Current Assets | 7,125,264 | 6,337,536 | | Total Current Assets | 1,164,816 | 1,304,796 | | Total Current Liabilities | 904,484 | 588,412 | | Net Current Assets | 260,332 | 716,384 | | Total Equity | 4,764,655 | 4,503,154 | | Total Equity | 4,764,655 | 4,503,154 | - Property, operating rights, and equipment increased from HK$4.63 billion as of December 31, 2024, to HK$5.41 billion as of June 30, 2025[7] - Net current assets decreased from HK$716.38 million as of December 31, 2024, to HK$260.33 million as of June 30, 2025[8] Notes to the Financial Statements This section provides detailed notes to the condensed consolidated financial statements, covering general information, accounting policies, segment reporting, and other financial items General Information The company, incorporated in the Cayman Islands and listed on the Hong Kong Stock Exchange, primarily engages in investment holding, hotel and casino operations in the Philippines and Russia, trade in Russia, and property development in Japan - The company's principal activities include investment holding and operations in the Philippines, Russia, and Japan[10] - Mr. Lo Yan Yee is the ultimate controlling party of the company[9] Basis of Preparation and Going Concern The condensed consolidated financial statements are prepared in accordance with HKAS 34, with significant going concern uncertainties identified, including net cash outflows from operations, loan defaults, and funding shortfalls for the main hotel and casino project, which the Board is actively addressing - The Group generated net cash outflows from operating activities of approximately HK$165.76 million for the six months ended June 30, 2025[11] - The company defaulted on the repayment of other borrowings totaling HK$137.5 million, which remained unpaid after the reporting period[11] - The main hotel and casino project is expected to be completed in the third quarter of 2026, but the remaining available bank financing may be insufficient for completion, requiring additional funds[12] - The Group has implemented several plans and measures to mitigate liquidity risks, including negotiating with lenders, disposing of non-core assets, enhancing non-current assets, controlling operating expenses, and seeking alternative financing[15] Basis of Preparation The condensed consolidated financial statements are 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 to the Listing Rules - The condensed consolidated financial statements are prepared in accordance with Hong Kong Accounting Standard 34 'Interim Financial Reporting'[11] Going Concern Uncertainties and Mitigation Measures The company faces significant uncertainties regarding operating cash outflows, loan defaults, and insufficient funding for capital commitments; management is actively negotiating with lenders, planning non-core asset disposals, controlling expenses, and seeking new financing to ensure going concern - The Group generated net cash outflows from operating activities of approximately HK$165.76 million for the six months ended June 30, 2025[11] - The company defaulted on the repayment of other borrowings totaling HK$137.5 million[11] - The main hotel and casino project is expected to be completed in the third quarter of 2026, but the remaining available bank financing may be insufficient for completion, requiring additional funds[12] - The Board has considered future liquidity and funding sources, implementing measures such as negotiating with lenders, disposing of non-core assets, controlling operating expenses, and identifying other debt and/or equity financing[14][15] Significant Accounting Policies The Group first applied revised HKFRSs, effective January 1, 2025, during this interim period, which had no material impact on the financial position or performance of current and prior periods - The Group first applied revised Hong Kong Financial Reporting Standards, including amendments to HKAS 21 'Lack of Exchangeability', for the six months ended June 30, 2025[16] - The application of revised HKFRSs had no material impact on the Group's financial position or performance for the current and prior periods[16] Revenue and Segment Information The Group's operating segments include integrated resorts in the Philippines and Russia, Russian trade business, and Japanese property development; total revenue significantly increased for the six months ended June 30, 2025, primarily from Russian integrated resorts and trade, with no revenue from Philippine and Japanese segments - The Group's operating segments include integrated resorts in the Philippines and Russian Federation, trade business in the Russian Federation, and property development[18] Operating Segments The Group's operating segments primarily focus on integrated resort development and operation in the Philippines, hotel gaming and trade business in the Russian Federation, and property development in Japan - Key operating segments include integrated resorts in the Philippines, hotel and gaming operations in the Russian Federation, trade business in the Russian Federation, and property development in Japan[18] Revenue Breakdown For the six months ended June 30, 2025, total revenue was HK$312.86 million, a 64.8% increase year-on-year, with Russian Federation integrated resorts contributing HK$212.73 million and Russian Federation trade business contributing HK$100.13 million, while Philippine and property development segments generated no revenue Revenue by Operating Segment | Segment | June 30, 2025 (Thousand HKD) | June 30, 2024 (Thousand HKD) | | :--- | :--- | :--- | | Integrated Resorts in the Philippines | – | – | | Integrated Resorts in the Russian Federation | 212,725 | 189,910 | | Trade Business in the Russian Federation | 100,130 | – | | Property Development | – | – | | Total Revenue | 312,855 | 189,910 | - Trade business in the Russian Federation contributed HK$100.13 million in revenue during the first half of 2025, compared to zero in the same period last year[20] Segment Results For the six months ended June 30, 2025, the Russian Federation integrated resorts segment reported a profit of HK$62.17 million, while the Philippine integrated resorts segment recorded a loss of HK$54.25 million, and the trade business segment incurred a loss of HK$3.09 million Results by Operating Segment | Segment | June 30, 2025 (Thousand HKD) | June 30, 2024 (Thousand HKD) | | :--- | :--- | :--- | | Integrated Resorts in the Philippines | (54,247) | (43,044) | | Integrated Resorts in the Russian Federation | 62,166 | 41,745 | | Trade Business in the Russian Federation | (3,092) | – | | Property Development | (119) | (436) | | Profit Before Tax | 183,759 | 25,630 | - The Russian Federation integrated resorts segment's results increased from HK$41.75 million in the same period of 2024 to HK$62.17 million in 2025[24] Segment Assets and Liabilities As of June 30, 2025, the Philippine integrated resorts segment held the highest total assets at HK$6.72 billion and the largest segment liabilities at HK$3.15 billion, while assets in the Russian trade business segment significantly increased Assets and Liabilities by Operating Segment | Segment | June 30, 2025 (Thousand HKD) | December 31, 2024 (Thousand HKD) | | :--- | :--- | :--- | | Segment Assets | | | | Integrated Resorts in the Philippines | 6,717,056 | 6,162,413 | | Integrated Resorts in the Russian Federation | 1,121,228 | 1,098,352 | | Trade Business in the Russian Federation | 33,773 | – | | Property Development | 409,819 | 372,327 | | Segment Liabilities | | | | Integrated Resorts in the Philippines | 3,154,053 | 2,757,038 | | Integrated Resorts in the Russian Federation | 140,314 | 136,723 | | Trade Business in the Russian Federation | – | – | | Property Development | 83 | 80 | - Segment assets for trade business in the Russian Federation increased from zero as of December 31, 2024, to HK$33.77 million as of June 30, 2025[25] Other Income, Gains and Losses For the six months ended June 30, 2025, other income, gains, and losses significantly shifted from a loss to a substantial gain, primarily driven by a large increase in net exchange gains Other Income, Gains and Losses | Metric | June 30, 2025 (Thousand HKD) | June 30, 2024 (Thousand HKD) | | :--- | :--- | :--- | | Bank Interest Income | 28,609 | 15,175 | | Net Exchange Gains (Losses) | 197,929 | (185,325) | | Total | 227,011 | (169,837) | - Net exchange gains shifted from a HK$185.33 million loss in the same period of 2024 to a HK$197.93 million gain in 2025, primarily contributing to the positive change in other income, gains, and losses[27] Finance Costs For the six months ended June 30, 2025, total finance costs significantly increased, mainly due to higher interest on bank and other borrowings, with a portion of these costs capitalized Finance Costs | Metric | June 30, 2025 (Thousand HKD) | June 30, 2024 (Thousand HKD) | | :--- | :--- | :--- | | Interest on Bank Borrowings | 66,141 | 51,850 | | Interest on Other Borrowings | 13,721 | 588 | | Interest on Lease Liabilities | 17,960 | 18,058 | | Total Finance Costs | 100,335 | 74,114 | | Less: Capitalized in Property, Operating Rights and Equipment under Construction | (84,896) | (70,880) | | Finance Costs Expensed | 15,439 | 3,234 | - Interest on bank borrowings increased from HK$51.85 million in the same period of 2024 to HK$66.14 million in 2025[29] - Interest on other borrowings significantly increased from HK$0.59 million in the same period of 2024 to HK$13.72 million in 2025[29] Profit for the Period Items For the six months ended June 30, 2025, profit for the period was achieved after deducting items such as depreciation, directors' emoluments, staff costs, and cost of sales, with total staff costs and operating expenses for trade business showing significant increases Profit for the Period After Charging (Crediting) Items | Metric | June 30, 2025 (Thousand HKD) | June 30, 2024 (Thousand HKD) | | :--- | :--- | :--- | | Total Depreciation | 78,840 | 79,518 | | Total Depreciation Expensed | 31,246 | 30,481 | | Directors' Emoluments | 6,689 | 6,227 | | Total Staff Costs | 132,480 | 107,842 | | Total Staff Costs Expensed | 121,632 | 101,927 | | Cost of Sales – Operating Expenses for Gaming and Hotel Operations | 93,492 | 87,643 | | Cost of Sales – Operating Expenses for Trade Business | 103,222 | – | - Total staff costs increased from HK$107.84 million in the same period of 2024 to HK$132.48 million in 2025[30] - Operating expenses for trade business were HK$103.22 million in the first half of 2025, compared to zero in the same period last year[30] Income Tax Expense For the six months ended June 30, 2025, income tax expense increased, primarily due to a significant rise in Russian withholding tax; the company's tax policies vary across jurisdictions, with no provisions made in some regions due to the absence of taxable profits or losses Income Tax Expense | Tax Type | June 30, 2025 (Thousand HKD) | June 30, 2024 (Thousand HKD) | | :--- | :--- | :--- | | Philippine Withholding Tax | 614 | 2,938 | | Russian Withholding Tax | 9,859 | 4,044 | | Russian Corporate Tax | 125 | 79 | | Total | 10,598 | 7,061 | - Russian withholding tax increased from HK$4.04 million in the same period of 2024 to HK$9.86 million in 2025[31] - No corporate income tax provision was made for subsidiaries incorporated in the Philippines and Japan, as they did not earn taxable profits or incur losses[35][37] Dividends No dividends were proposed, declared, or paid by the company for the six-month periods ended June 30, 2025, and 2024 - No dividends were proposed, declared, or paid for the six-month periods ended June 30, 2025, and 2024[40] Loss Per Share For the six months ended June 30, 2025, basic loss per share attributable to equity holders narrowed to 0.49 HK cents, down from 1.09 HK cents in the prior year, with diluted loss per share also decreasing accordingly Loss Per Share Calculation | Metric | June 30, 2025 (Thousand HKD) | June 30, 2024 (Thousand HKD) | | :--- | :--- | :--- | | Loss for Basic Loss Per Share Attributable to Equity Holders | (34,252) | (75,280) | | Loss for Diluted Loss Per Share | (38,168) | (99,421) | | Weighted Average Number of Ordinary Shares | 6,936,972,746 | 6,936,972,746 | | Basic Loss Per Share (HK cents) | (0.49) | (1.09) | | Diluted Loss Per Share (HK cents) | (0.55) | (1.43) | - Basic loss per share attributable to equity holders narrowed from 1.09 HK cents in the same period of 2024 to 0.49 HK cents in 2025[41] Prepayments and Deposits for Non-Current Assets As of June 30, 2025, total prepayments and deposits for non-current assets increased to HK$369.65 million, primarily due to deposits for the construction of the main hotel and casino Prepayments and Deposits for Non-Current Assets | Metric | June 30, 2025 (Thousand HKD) | December 31, 2024 (Thousand HKD) | | :--- | :--- | :--- | | Deposits for Construction of Main Hotel and Casino | 365,228 | 297,905 | | Deposits for Purchase of Property, Operating Rights and Equipment | 13,270 | 15,675 | | Less: Impairment Provision | (8,847) | (8,847) | | Total | 369,651 | 304,733 | - Deposits for the construction of the main hotel and casino increased from HK$297.91 million as of December 31, 2024, to HK$365.23 million as of June 30, 2025[43] Other Receivables and Prepayments As of June 30, 2025, total other receivables and prepayments increased to HK$524.80 million, primarily due to an increase in recoverable indirect taxes and other deposits Other Receivables and Prepayments | Metric | June 30, 2025 (Thousand HKD) | December 31, 2024 (Thousand HKD) | | :--- | :--- | :--- | | Other Receivables | 9,057 | 4,955 | | Recoverable Indirect Taxes | 345,790 | 314,397 | | Other Deposits | 70,340 | 2,118 | | Prepayments | 99,743 | 73,690 | | Less: Impairment Provision | (135) | (135) | | Total | 524,795 | 395,025 | - Recoverable indirect taxes (primarily input VAT paid by Suntrust for the main hotel and casino construction) increased from HK$314.40 million as of December 31, 2024, to HK$345.79 million as of June 30, 2025[44] Trade and Other Payables As of June 30, 2025, total trade and other payables significantly increased to HK$883.71 million, primarily due to substantial increases in construction costs payable and interest payable Trade and Other Payables | Metric | June 30, 2025 (Thousand HKD) | December 31, 2024 (Thousand HKD) | | :--- | :--- | :--- | | Trade Payables | 1