顺豪控股(00253) - 2025 - 中期财报

Company Information This section provides essential company details, including board members, management, auditors, and principal bankers Board of Directors and Management This chapter details key company information including executive and independent non-executive directors, company secretary, auditor, and principal bankers - Executive Directors include Mr. Cheng Kai Man (Chairman), Mr. Hui Wing Ho, Ms. Lau Kam Mei, and Ms. Ng Yuet Ying[3] - The auditor is Deloitte Touche Tohmatsu, and principal bankers are The Hongkong and Shanghai Banking Corporation Limited and Bank of China (Hong Kong) Limited[3] Interim Results This section presents the company's financial performance and dividend policy for the interim period Financial Performance Overview Net profit attributable to company owners, excluding revaluation and depreciation, increased by 30% to HK$39 million for the six months ended June 30, 2025 Net Profit Attributable to Company Owners (Excluding Revaluation and Depreciation) | Indicator | Six Months Ended June 30, 2025 (HK$ Thousand) | Six Months Ended June 30, 2024 (HK$ Thousand) | Change (%) | | :--- | :--- | :--- | :--- | | Net Profit Attributable to Company Owners | 39,000 | 30,000 | +30% | Interim Dividend Policy The Board decided not to declare an interim dividend for the six months ended June 30, 2025, primarily due to the absence of cash dividend income from its major subsidiary - No interim dividend is recommended for the six months ended June 30, 2025 (2024: Nil)[5] - The primary reason is that the company did not receive cash dividend income from its major subsidiary, Magnificent Hotel Investments Limited[5] Management Discussion and Analysis This section provides an in-depth analysis of the group's business operations, financial performance, and future outlook Business Overview and Overall Performance The Group's core businesses include commercial property investment, property leasing and development, and hotel investment and management, with net profit attributable to owners (excluding revaluation and depreciation) increasing by 30% to HK$39 million - The Group's core businesses include commercial property investment, property leasing and development, and hotel investment and management[6] Net Profit Attributable to Company Owners (Excluding Revaluation and Depreciation) | Indicator | Six Months Ended June 30, 2025 (HK$ Thousand) | Six Months Ended June 30, 2024 (HK$ Thousand) | Change (%) | | :--- | :--- | :--- | :--- | | Net Profit Attributable to Company Owners | 39,000 | 30,000 | +30% | Hotel Business Performance Hotel business revenue increased by 3% to HK$268 million, with Magnificent Hotel Investments Limited's net profit (excluding revaluation and depreciation) surging by 43% to HK$59.3 million, driven by increased revenue and reduced costs Hotel Business Revenue | Indicator | Six Months Ended June 30, 2025 (HK$ Thousand) | Six Months Ended June 30, 2024 (HK$ Thousand) | Change (%) | | :--- | :--- | :--- | :--- | | Hotel Business Revenue | 268,000 | 260,000 | +3% | - The Group owns nine hotels with approximately 3,042 rooms, making it one of the largest hotel groups in Hong Kong[7] Net Profit Attributable to Magnificent Hotel Investments Limited Owners (Excluding Revaluation and Depreciation) | Indicator | Six Months Ended June 30, 2025 (HK$ Thousand) | Six Months Ended June 30, 2024 (HK$ Thousand) | Change (%) | | :--- | :--- | :--- | :--- | | Net Profit Attributable to Magnificent Hotel Investments Limited Owners | 59,300 | 41,600 | +43% | Key Financial Indicators of Magnificent Hotel Investments Limited Group | Indicator | Six Months Ended June 30, 2025 (HK$ Thousand) | Six Months Ended June 30, 2024 (HK$ Thousand) | Change (%) | | :--- | :--- | :--- | :--- | | Operating Hotel Profit | 8,631 | 712 | +1,112% | | Property Investment Profit | 20,380 | 14,010 | +45% | | Securities Investment Income | 25 | – | Not Applicable | | Other Income and Gains and Losses | 1,615 | 2,182 | -26% | | Administrative Expenses | (22,205) | (23,159) | -4% | | Finance Costs | (17,177) | (23,228) | -26% | | Income Tax Expense | (6,654) | (3,063) | +117% | | Loss After Tax | (15,385) | (32,546) | -53% | | Net Profit Attributable to Company Owners After Tax and Excluding Revaluation and Depreciation of Land, Property and Equipment | 59,295 | 41,562 | +43% | - The annual rent for the Royal Scot Hotel in London successfully increased by 34% to GBP4,737,000[11] Commercial Property Rental Income Commercial property rental income increased by 10% to HK$66 million, primarily from UK hotel properties, Magnificent Commercial Building, 633 King's Road, and some hotel shops, with occupancy rates of 91% and 77% for Magnificent Commercial Building and 633 King's Road respectively Commercial Property Rental Income | Indicator | Six Months Ended June 30, 2025 (HK$ Thousand) | Six Months Ended June 30, 2024 (HK$ Thousand) | Change (%) | | :--- | :--- | :--- | :--- | | Commercial Property Rental Income | 66,000 | 60,000 | +10% | Hong Kong Commercial Property Occupancy Rate (as of June 30, 2025) | Property Name | Occupancy Rate | | :--- | :--- | | Magnificent Commercial Building | 91% | | 633 King's Road | 77% | Cash Flow and Debt As of June 30, 2025, the Group's total debt decreased to HK$955 million, with the gearing ratio falling to 12%, primarily exposing the Group to foreign exchange risk from HKD and GBP floating-rate bank loans Group Total Debt and Gearing Ratio | Indicator | June 30, 2025 (HK$ Thousand) | December 31, 2024 (HK$ Thousand) | Change (%) | | :--- | :--- | :--- | :--- | | Total Debt | 955,000 | 1,060,000 | -10% | | Gearing Ratio | 12% | 13% | -1% | - The Group's bank loans are primarily denominated in HKD and GBP with floating interest rates, exposing it to foreign exchange risk[14] Key Business Achievements During the period, Hong Kong recorded approximately 11.3 million overnight visitor arrivals, with 75% from mainland China, though per capita spending remained below pre-pandemic levels, while the Group's average hotel occupancy rate consistently exceeded 90%, hotel revenue grew by 3%, and total revenue increased by 5% Overnight Visitor Arrivals in Hong Kong | Indicator | Six Months Ended June 30, 2025 (Ten Thousand Visits) | Six Months Ended June 30, 2024 (Ten Thousand Visits) | Same Period in 2019 (Ten Thousand Visits) | | :--- | :--- | :--- | :--- | | Overnight Visitor Arrivals | 1,130 | 1,060 | 1,500 | | Per Capita Spending by Mainland Chinese Visitors | <HK$5,100 | - | HK$6,000 | - The Group's average hotel occupancy rate consistently exceeded 90%[15] Group Revenue Growth | Indicator | Six Months Ended June 30, 2025 (HK$ Thousand) | Change (%) | | :--- | :--- | :--- | | Hotel Revenue | 268,000 | +3% | | Total Revenue | 334,000 | +5% | - The renovation project for the Wood Street Hotel in London has been approved, transforming it into a luxury hotel with approximately 216 rooms[16] Future Outlook The Group holds nine hotels and the Wood Street Hotel renovation project in London, but future hotel business and rental income face challenges from a weak Chinese economy, expensive HKD against RMB, and the US-China trade war, prompting management to focus on increasing revenue and controlling costs - The Group holds nine income-generating hotels (seven in Hong Kong, one in Shanghai, and one in London) and the Wood Street Hotel renovation project in London[17] - Tourism recovery is affected by the weak Chinese economy and the expensive HKD against RMB, leading Chinese tourists to prefer day trips to the Greater Bay Area[17] - Commercial property occupancy rates are impacted by the US-China trade war and declining import/export volumes in Hong Kong[17] - Management will continue efforts to increase revenue and control costs to address these challenges[17] Listed Securities Transactions Neither the company nor its subsidiaries purchased, sold, or redeemed any of the company's listed securities during the six months ended June 30, 2025 - During the period, neither the company nor its subsidiaries engaged in any purchase, sale, or redemption of listed securities[18] Directors' Interests in Listed Securities This section details the interests of the company's directors in its shares and those of its associated corporations Interests in Company Shares As of June 30, 2025, Executive Director Mr. Cheng Kai Man held 226,454,825 shares in the company, representing 74.40% of the total share capital, including personal holdings and shares held through his controlled corporations Mr. Cheng Kai Man's Interests in Company Shares | Director Name | Capacity | Nature of Interest | Number of Shares / Related Shares | Approximate Percentage of Shareholding | | :--- | :--- | :--- | :--- | :--- | | Cheng Kai Man | Beneficial Owner and Interest of Corporation Controlled by Him | Personal and Corporate | 226,454,825 | 74.40 | - Mr. Cheng Kai Man holds controlling interests through Magnificent Assets Holdings Limited and Mercury Fast Limited, in addition to personal shareholdings[19] Interests in Shares of Associated Corporations Mr. Cheng Kai Man holds significant interests in associated corporations such as Magnificent Hotel Investments Limited and Magnificent Hotel Investments Limited, with 66.48% and 71.09% interests respectively Mr. Cheng Kai Man's Interests in Shares of Associated Corporations | Director Name | Name of Associated Corporation | Capacity | Nature of Interest | Number of Shares / Related Shares | Approximate Percentage of Shareholding | | :--- | :--- | :--- | :--- | :--- | :--- | | Cheng Kai Man | Magnificent Hotel Investments Limited | Beneficial Owner and Interest of Corporation Controlled by Him | Personal and Corporate | 385,395,999 | 66.48 | | Cheng Kai Man | Magnificent Hotel Investments Limited | Interest of Corporation Controlled by Him | Corporate | 6,360,585,437 | 71.09 | | Cheng Kai Man | Magnificent Assets Holdings (BVI) | Beneficial Owner | Personal | 2 | 100.00 | Major Shareholders This section identifies the company's major shareholders who are not directors Non-Director Major Shareholders As of June 30, 2025, Mercury Fast, Magnificent Hotel Investments Limited, Magnificent Hotel Investments Limited, and Magnificent Assets Holdings (BVI) are major shareholders, with Magnificent Assets Holdings (BVI) holding a 71.17% interest, and Ms. Li Pui Ling deemed to have a 74.40% interest due to her spouse Mr. Cheng Kai Man's holdings Major Shareholder Interests | Shareholder Name | Capacity | Number of Shares / Related Shares | Approximate Percentage of Shareholding | | :--- | :--- | :--- | :--- | | Mercury Fast | Beneficial Owner | 62,602,700 | 20.60 | | Magnificent Hotel Investments Limited | Interest of Corporation Controlled by Him | 62,602,700 | 20.60 | | Magnificent Hotel Investments Limited | Interest of Corporation Controlled by Him | 62,602,700 | 20.60 | | Magnificent Assets Holdings (BVI) | Beneficial Owner and Interest of Corporation Controlled by Him | 216,608,825 | 71.17 | | Li Pui Ling | Spouse's Interest | 226,454,825 | 74.40 | - Magnificent Assets Holdings (BVI) beneficially owns 50.60% of shares and is deemed to own the 20.60% of shares held by Mercury Fast[24] - Ms. Li Pui Ling is deemed to have a 74.40% interest in shares due to her spouse Mr. Cheng Kai Man's interests[24] Independent Review This section outlines the independent review process for the interim results Interim Results Review The interim results for the six months ended June 30, 2025, were unaudited but reviewed by Deloitte Touche Tohmatsu in accordance with Hong Kong Standard on Review Engagements 2410 and by the Group's Audit Committee - The interim results were unaudited but reviewed by Deloitte Touche Tohmatsu in accordance with Hong Kong Standard on Review Engagements 2410[25] - The interim results and interim report have been reviewed by the Group's Audit Committee[25] Corporate Governance This section details the company's adherence to corporate governance codes and standards Compliance with Corporate Governance Code For the six months ended June 30, 2025, the company complied with all applicable code provisions of the Corporate Governance Code in Appendix C1 of the Listing Rules, with one deviation where the Chairman and Chief Executive Officer roles are combined, which the Board believes facilitates effective strategy implementation and cost savings - The company has complied with all applicable code provisions of the Corporate Governance Code set out in Appendix C1 of the Listing Rules, except for one deviation[26] - Deviation: Code Provision C.2.1 (the roles of chairman and chief executive officer should be separate), Mr. Cheng Kai Man holds both positions, which the Board believes provides strong and consistent leadership and saves costs[26] Compliance with Model Code The company has adopted the Model Code set out in Appendix C3 of the Listing Rules as the code of conduct for directors' securities transactions, and all directors have confirmed their compliance throughout the period - The company has adopted the Model Code set out in Appendix C3 of the Listing Rules, and all directors have confirmed their compliance throughout the period[27] Review Report on Condensed Consolidated Financial Statements This section presents the independent review report on the condensed consolidated financial statements Introduction and Responsibilities Deloitte Touche Tohmatsu has reviewed Shun Ho Holdings Limited's condensed consolidated financial statements for the six months ended June 30, 2025, with the Board responsible for preparing and presenting the statements in accordance with HKAS 34, and the auditor's responsibility to conclude based on the review - Deloitte Touche Tohmatsu has reviewed the condensed consolidated financial statements, including the statement of financial position, statement of profit or loss, statement of comprehensive income, statement of changes in equity, and statement of cash flows[30] - The company's directors are responsible for preparing and presenting the condensed consolidated financial statements in accordance with Hong Kong Accounting Standard 34[30] Scope of Review and Conclusion The review was conducted in accordance with Hong Kong Standard on Review Engagements 2410, which is less extensive than an audit, thus no audit opinion is expressed, and based on the review, the auditor found no matters indicating that the condensed consolidated financial statements were not prepared in accordance with HKAS 34 - The scope of the review is less extensive than an audit, therefore no audit opinion is expressed[31] - The auditor has not become aware of any matter that causes them to believe that the condensed consolidated financial statements are not prepared, in all material respects, in accordance with Hong Kong Accounting Standard 34[32] Condensed Consolidated Financial Statements This section presents the condensed consolidated financial statements of the Group Condensed Consolidated Statement of Profit or Loss For the six months ended June 30, 2025, the Group reported total revenue of HK$334,338,000, a loss for the period of HK$147,561,000, with a loss attributable to company owners of HK$79,376,000, resulting in a basic loss per share of 32.83 HK cents Summary of Condensed Consolidated Statement of Profit or Loss | Indicator | Six Months Ended June 30, 2025 (HK$ Thousand) | Six Months Ended June 30, 2024 (HK$ Thousand) | | :--- | :--- | :--- | | Total Revenue | 334,338 | 319,575 | | Gross Profit | 73,691 | 56,890 | | Impairment of Investment Properties at Fair Value | (154,800) | (92,232) | | Loss Before Tax | (135,077) | (98,835) | | Loss for the Period | (147,561) | (106,520) | | Loss Attributable to Company Owners | (79,376) | (54,034) | | Basic Loss Per Share (HK Cents) | (32.83) | (22.35) | Condensed Consolidated Statement of Comprehensive Income For the six months ended June 30, 2025, the loss for the period was HK$147,561,000, but other comprehensive income from exchange differences on translating foreign operations amounted to HK$121,222,000, reducing the total comprehensive expense for the period to HK$26,238,000 Summary of Condensed Consolidated Statement of Comprehensive Income | Indicator | Six Months Ended June 30, 2025 (HK$ Thousand) | Six Months Ended June 30, 2024 (HK$ Thousand) | | :--- | :--- | :--- | | Loss for the Period | (147,561) | (106,520) | | Exchange Differences Arising from Translating Foreign Operations | 121,222 | (13,773) | | Other Comprehensive Income (Expense) for the Period | 121,323 | (13,944) | | Total Comprehensive Expense for the Period | (26,238) | (120,464) | | Total Comprehensive (Expense) Income Attributable to Company Owners | (32,433) | (59,430) | Condensed Consolidated Statement of Financial Position As of June 30, 2025, the Group's total assets were HK$9,344,070,000, total liabilities were HK$1,235,097,000, and equity attributable to company owners was HK$4,013,125,000, with property, plant and equipment and investment properties being the main components of non-current assets Summary of Condensed Consolidated Statement of Financial Position | Indicator | June 30, 2025 (HK$ Thousand) | December 31, 2024 (HK$ Thousand) | | :--- | :--- | :--- | | Non-Current Assets | 9,115,643 | 9,213,584 | | Current Assets | 228,427 | 266,941 | | Current Liabilities | 482,579 | 528,467 | | Net Current Liabilities | (254,152) | (261,526) | | Equity Attributable to Company Owners | 4,013,125 | 4,045,558 | | Non-Controlling Interests | 4,095,848 | 4,089,653 | | Total Equity | 8,108,973 | 8,135,211 | | Non-Current Liabilities | 752,518 | 816,847 | | Consolidated Assets | 9,344,070 | 9,480,525 | | Consolidated Liabilities | 1,235,097 | 1,345,314 | Condensed Consolidated Statement of Changes in Equity For the six months ended June 30, 2025, equity attributable to company owners decreased from HK$4,045,558,000 at the beginning of the period to HK$4,013,125,000 at the end, primarily due to a loss for the period of HK$79,376,000, partially offset by an increase in exchange reserves Summary of Condensed Consolidated Statement of Changes in Equity | Indicator | January 1, 2025 (HK$ Thousand) | Loss for the Period (HK$ Thousand) | Exchange Differences (HK$ Thousand) | Fair Value Gain (HK$ Thousand) | June 30, 2025 (HK$ Thousand) | | :--- | :--- | :--- | :--- | :--- | :--- | | Equity Attributable to Company Owners | 4,045,558 | (79,376) | 46,904 | 39 | 4,013,125 | | Non-Controlling Interests | 4,089,653 | (68,185) | 74,318 | 62 | 4,095,848 | | Total Equity | 8,135,211 | (147,561) | 121,222 | 101 | 8,108,973 | Condensed Consolidated Statement of Cash Flows For the six months ended June 30, 2025, net cash generated from operating activities was HK$112,407,000, net cash used in investing activities was HK$1,621,000, and net cash used in financing activities was HK$155,723,000, resulting in a decrease in cash and cash equivalents at period-end compared to the beginning Summary of Condensed Consolidated Statement of Cash Flows | Indicator | Six Months Ended June 30, 2025 (HK$ Thousand) | Six Months Ended June 30, 2024 (HK$ Thousand) | | :--- | :--- | :--- | | Net Cash from Operating Activities | 112,407 | 106,642 | | Net Cash Used in Investing Activities | (1,621) | (226,013) | | Net Cash Used in Financing Activities | (155,723) | (28,727) | | Net Decrease in Cash and Cash Equivalents | (44,937) | (148,098) | | Cash and Cash Equivalents at End of Period | 198,515 | 184,817 | Notes to the Condensed Consolidated Financial Statements This section provides detailed notes explaining the basis of preparation, accounting policies, and specific financial items within the condensed consolidated financial statements 1. Basis of Preparation These condensed consolidated financial statements are presented in Hong Kong Dollars, with the Group's principal activities being hotel investment and operation, property investment, and securities investment, prepared in accordance with HKAS 34 and on a going concern basis, supported by internal financial resources and bank loan refinancing despite current liabilities exceeding current assets - The company is a public listed company incorporated in Hong Kong, with Magnificent Assets Holdings Limited as its ultimate holding company[42] - Principal activities include investing in and operating hotels, property investment, and securities investment[42] - The statements are prepared in accordance with Hong Kong Accounting Standard 34 and on a going concern basis, as the Group has sufficient financial resources to support operations[43] 2. Principal Accounting Policies These condensed consolidated financial statements are prepared on a historical cost basis, with certain investment properties and financial instruments measured at fair value, and the accounting policies applied this period are consistent with the prior year, with no significant impact from the application of HKFRS amendments on financial position and performance - The statements are prepared on a historical cost basis, except for investment properties and certain financial instruments[44] - The accounting policies and methods of computation applied this period are consistent with those in the prior year's financial statements[44] - The application of amendments to Hong Kong Financial Reporting Standards had no significant impact on the financial position and performance for the current and prior periods[46] 3. Revenue The Group's total revenue was HK$334,338,000, primarily comprising hotel operating income of HK$268,032,000 and property rental income of HK$66,281,000, with hotel service revenue mainly derived from the Hong Kong market, predominantly from room rentals and ancillary services Revenue Composition | Revenue Source | Six Months Ended June 30, 2025 (HK$ Thousand) | Six Months Ended June 30, 2024 (HK$ Thousand) | | :--- | :--- | :--- | | Hotel Operating Income | 268,032 | 259,757 | | Property Rental Income | 66,281 | 59,818 | | Dividend Income | 25 | – | | Total Revenue | 334,338 | 319,575 | Hotel Service Revenue by Category | Revenue Type | Six Months Ended June 30, 2025 (HK$ Thousand) | Six Months Ended June 30, 2024 (HK$ Thousand) | | :--- | :--- | :--- | | Room Rental Income and Other Ancillary Services | 259,352 | 252,270 | | Food and Beverages | 8,680 | 7,487 | | Total | 268,032 | 259,757 | Hotel Service Market Geographical Distribution | Region | Six Months Ended June 30, 2025 (HK$ Thousand) | Six Months Ended June 30, 2024 (HK$ Thousand) | | :--- | :--- | :--- | | Hong Kong | 255,673 | 249,234 | | China | 12,359 | 10,523 | | Total | 268,032 | 259,757 | 4. Segment Information The Group's operating and reportable segments include hotel services, property investment, and securities investment, with hotel services revenue at HK$268,032,000 and property investment revenue at HK$66,281,000, showing a shift from loss to profit for hotel services and an expanded loss for property investment, while total segment assets were HK$9,011,650,000 and total segment liabilities were HK$82,134,000 - The Group's principal operating and reportable segments include hotel services, property investment, and securities investment[48][49] Segment Revenue and Results | Segment | Six Months Ended June 30, 2025 Revenue (HK$ Thousand) | Six Months Ended June 30, 2024 Revenue (HK$ Thousand) | Six Months Ended June 30, 2025 Results (HK$ Thousand) | Six Months Ended June 30, 2024 Results (HK$ Thousand) | | :--- | :--- | :--- | :--- | :--- | | 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) | Segment Assets and Liabilities | Segment | June 30, 2025 Assets (HK$ Thousand) | December 31, 2024 Assets (HK$ Thousand) | June 30, 2025 Liabilities (HK$ Thousand) | December 31, 2024 Liabilities (HK$ Thousand) | | :--- | :--- | :--- | :--- | :--- | | Hotel Services | 4,498,937 | 4,536,933 | 34,797 | 47,497 | | Property Investment | 4,511,873 | 4,575,240 | 47,336 | 47,956 | | Securities Investment | 840 | 739 | 1 | 1 | | Total Segments | 9,011,650 | 9,112,912 | 82,134 | 95,454 | 5. Finance Costs For the six months ended June 30, 2025, the Group's finance costs totaled HK$25,542,000, primarily comprising interest on bank loans (HK$23,819,000) and interest on amounts due to a fellow subsidiary (HK$1,723,000), representing a decrease from the prior year Finance Costs Composition | Cost Type | Six Months Ended June 30, 2025 (HK$ Thousand) | Six Months Ended June 30, 2024 (HK$ Thousand) | | :--- | :--- | :--- | | Interest on Bank Loans | 23,819 | 31,657 | | Interest on Amounts Due to a Fellow Subsidiary | 1,723 | 1,846 | | Total Finance Costs | 25,542 | 33,503 | 6. Income Tax Expense For the six months ended June 30, 2025, income tax expense was HK$12,484,000, mainly consisting of Hong Kong profits tax and UK profits tax, and the Group expects its consolidated annual revenue to be below EUR750,000,000, thus not requiring supplementary tax under Pillar Two rules Income Tax Expense Composition | Tax Type | Six Months Ended June 30, 2025 (HK$ Thousand) | Six Months Ended June 30, 2024 (HK$ Thousand) | | :--- | :--- | :--- | | Hong Kong Current Tax | 9,410 | 7,070 | | UK Current Tax | 4,231 | 2,459 | | Underprovision in Prior Years (Hong Kong) | 111 | – | | Deferred Tax | (1,268) | (1,844) | | Total Income Tax Expense | 12,484 | 7,685 | - Hong Kong profits tax rate remains at 16.5%[56] - The Group expects its consolidated annual revenue to be below EUR750,000,000, thus not requiring supplementary tax under Pillar Two rules[56] 7. Loss for the Period For the six months ended June 30, 2025, the loss for the period was determined after deducting depreciation of right-of-use assets of HK$384,000 and depreciation of property, plant and equipment of HK$83,192,000, and including bank deposit interest income and loss on disposal of property, plant and equipment Loss for the Period Adjustment Items | Item | Six Months Ended June 30, 2025 (HK$ Thousand) | Six Months Ended June 30, 2024 (HK$ Thousand) | | :--- | :--- | :--- | | 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 | 8. Dividends The Board resolved not to declare or recommend an interim dividend for the six months ended June 30, 2025, consistent with the prior year - The Board resolved not to declare or recommend an interim dividend for the six months ended June 30, 2025[58] 9. Loss Per Share For the six months ended June 30, 2025, the basic loss per share was 32.83 HK cents, calculated based on a loss attributable to company owners of HK$79,376,000 and 241,766,000 issued shares, with no diluted loss per share as no potential ordinary shares were outstanding during the period Basic Loss Per Share | Indicator | Six Months Ended June 30, 2025 | Six Months Ended June 30, 2024 | | :--- | :--- | :--- | | Loss Attributable to Company Owners for the Period (HK$ Thousand) | 79,376 | 54,034 | | Issued Shares During the Period (Thousand Shares) | 241,766 | 241,766 | | Basic Loss Per Share (HK Cents) | (32.83) | (22.35) | - No potential ordinary shares were outstanding during the period, hence no diluted loss per share is presented[59] 10. Property, Plant and Equipment and Investment Properties For the six months ended June 30, 2025, the Group acquired property, plant and equipment of HK$3,123,000, and the fair value of investment properties decreased by HK$154,800,000, recognized directly in the statement of profit or loss, with investment properties carried at fair value based on independent professional valuations using the income approach Changes in Property, Plant and Equipment and Investment Properties | Item | Six Months Ended June 30, 2025 (HK$ Thousand) | Six Months Ended June 30, 2024 (HK$ Thousand) | | :--- | :--- | :--- | | Acquisition of Property, Plant and Equipment | 3,123 | 12,985 | | Loss on Disposal of Property, Plant and Equipment | 82 | 2,497 | | Decrease in Fair Value of Investment Properties | 154,800 | 92,232 | - Investment properties are carried at fair value based on independent professional valuations using the income approach to assess market value[60] - The total carrying amount of investment properties of approximately HK$3,781,074,000 was leased out under operating leases at the end of the period[61] 11. Trade and Other Receivables As of June 30, 2025, total trade and other receivables amounted to HK$13,022,000, comprising trade receivables (customer contracts) of HK$6,999,000 and lease receivables of HK$2,534,000, with the Group typically granting hotel customers credit terms of 30 to 60 days Composition of Trade and Other Receivables | Item | June 30, 2025 (HK$ Thousand) | December 31, 2024 (HK$ Thousand) | | :--- | :--- | :--- | | Trade Receivables (Customer Contracts) | 6,999 | 10,088 | | Lease Receivables | 2,534 | 2,250 | | Other Receivables | 3,489 | 3,116 | | Total | 13,022 | 15,454 | Ageing Analysis of Trade and Lease Receivables (as of June 30, 2025) | Ageing | Amount (HK$ Thousand) | | :--- | :--- | | Not Yet Due | 9,280 | | 0－30 Days | 80 | | 31－60 Days | 173 | | 61－90 Days | – | | Total | 9,533 | 12. Trade and Other Payables and Accruals As of June 30, 2025, total trade and other payables and accruals amounted to HK$49,498,000, a decrease from the year-end, including trade payables of HK$4,748,000 and accrued staff costs of HK$6,615,000 Composition of Trade and Other Payables and Accruals | Item | June 30, 2025 (HK$ Thousand) | December 31, 2024 (HK$ Thousand) | | :--- | :--- | :--- | | Trade Payables | 4,748 | 5,288 | | Accrued Interest | 1,045 | 2,047 | | Other Payables | 6,756 | 3,304 | | Rental Received in Advance | 12,069 | 10,716 | | Accrued Staff Costs | 6,615 | 17,953 | | Total | 49,498 | 60,590 | Ageing Analysis of Trade Payables (as of June 30, 2025) | Ageing | Amount (HK$ Thousand) | | :--- | :--- | | 0－30 Days | 4,740 | | 31－60 Days | 7 | | 61－90 Days | 1 | | Total | 4,748 | 13. Bank Loans As of June 30, 2025, the Group's total secured bank loans amounted to HK$900,619,000, with HK$334,498,000 classified as current liabilities and HK$566,121,000 as non-current liabilities, all bearing floating interest rates with an effective annual interest rate of 4.54% Bank Loan Composition | Item | June 30, 2025 (HK$ Thousand) | December 31, 2024 (HK$ Thousand) | | :--- | :--- | :--- | | Total Secured Bank Loans | 900,619 | 1,005,073 | | Classified Under Current Liabilities | 334,498 | 378,352 | | Classified Under Non-Current Liabilities | 566,121 | 626,721 | | Effective Annual Interest Rate | 4.54% | 6.05% | - All bank loans are floating-rate loans and are secured by certain assets of the Group[65] 14. Share Capital As of June 30, 2025, the company had 304,369,000 issued and fully paid ordinary shares with a nominal value of HK$172,252,000, of which 62,603,000 shares were held by a subsidiary and carried no voting rights at company meetings Share Capital Information | Item | Number of Shares (Thousand Shares) | Nominal Value (HK$ Thousand) | | :--- | :--- | :--- | | Issued and Fully Paid Ordinary Shares | 304,369 | 172,252 | - 62,603,000 shares of the company are held by a subsidiary and carry no voting rights at company meetings[67] 15. Related Party Transactions and Balances During the period, key related party transactions included interest expense of HK$1,723,000 due to Saola Enterprises Inc., rental income of HK$420,000 from Mr. Cheng Kai Man, and key management personnel remuneration of HK$10,759,000, with period-end balances showing HK$48,940,000 due to Saola and HK$5,088,000 due to Mr. Cheng Kai Man Related Party Transactions | Transaction Type | Six Months Ended June 30, 2025 (HK$ Thousand) | Six Months Ended June 30, 2024 (HK$ Thousand) | | :--- | :--- | :--- | | Interest Expense on Amounts Due to Saola Enterprises Inc. | 1,723 | 1,846 | | Rental Income from Mr. Cheng Kai Man | 420 | 420 | | Remuneration of Key Management Personnel | 10,759 | 10,871 | Related Party Balances | Balance Type | June 30, 2025 (HK$ Thousand) | December 31, 2024 (HK$ Thousand) | | :--- | :--- | :--- | | Amounts Due to Saola Enterprises Inc. | 48,940 | 47,238 | | Amounts Due to Mr. Cheng Kai Man | 5,088 | 7,487 | - Amounts due to Saola Enterprises Inc. bear interest at prime rate plus 2%, are unsecured, and repayable on demand[69] - Amounts due to Mr. Cheng Kai Man are non-trade related, unsecured, interest-free, and repayable on demand[69] 16. Pledges of Assets As of the reporting period end, the Group's bank loan facilities were secured by investment properties, hotel properties, pledged shares of certain subsidiaries, and assignments of certain property rental income and insurance policies for investment properties - Bank loan facilities are secured by investment properties (carrying amount approximately HK$3,583,000,000) and hotel properties (carrying amount approximately HK$1,468,000,000)[69] - Pledged shares of certain subsidiaries have a total net asset value of approximately HK$3,819,000,000[69] - Other pledges include assignments of property rental income from certain subsidiaries and insurance policies for certain investment properties[69] 17. Fair Value Measurement of Financial Instruments The Group's financial assets measured at fair value on a recurring basis primarily include equity investments presented at fair value through other comprehensive income, which amounted to HK$840,000 as of June 30, 2025, classified as Level 1 fair value measurements, while the carrying amounts of other financial assets and liabilities approximate their fair values Financial Assets Measured at Fair Value | Financial Asset | June 30, 2025 Fair Value (HK$ Thousand) | December 31, 2024 Fair Value (HK$ Thousand) | Fair Value Hierarchy Level | | :--- | :--- | :--- | :--- | | Equity Investments at Fair Value Through Other Comprehensive Income | 840 | 739 | Level 1 | - Level 1 fair value measurements are derived from unadjusted quoted prices for identical assets or liabilities in active markets[72] - The carrying amounts of other financial assets and financial liabilities approximate their fair values[71]