Financial Performance - For the six months ended June 30, 2022, the Group recorded a turnover of approximately HK$7.43 million, representing a decrease of approximately 44% compared to HK$13.34 million in the corresponding period last year[16]. - Net loss attributable to shareholders was approximately HK$3.04 million for the reporting period, compared to a net profit of approximately HK$2.84 million in the same period last year[17]. - Loss per share was approximately 0.27 HK cents for the six months ended June 30, 2022, compared to a profit per share of approximately 0.25 HK cents in the previous year[18]. - Revenue from hotel operations decreased by approximately 53% to HK$5.03 million for the six months ended June 30, 2022, down from HK$10.68 million in the corresponding period of 2021[32]. - The Group recorded a share of loss from its interest in Fuzhou Harmony Piano of approximately HK$0.67 million due to declining market sales and rising manufacturing costs[39]. - The loss for the period was HKD 3,042,230, compared to a profit of HKD 2,838,600 in the previous year[188]. - Total comprehensive expense for the period was HKD 4,842,312, compared to a total comprehensive income of HKD 4,927,092 in the same period last year[191]. Asset and Liquidity Management - Net assets decreased by approximately HK$4.85 million to approximately HK$424.82 million as of June 30, 2022, compared with HK$429.67 million as of December 31, 2021[17]. - As of June 30, 2022, the Group had a net cash balance of approximately HK$43.78 million, down from HK$49.52 million as of December 31, 2021[44]. - The liquidity ratio as of June 30, 2022, was 4.26, down from 4.83 as of December 31, 2021[44]. - Cash and cash equivalents at the end of the period were HKD 43,782,805, down from HKD 49,520,268 at the beginning of the period[194]. - Current liabilities totaled HKD 10,697,963, compared to HKD 10,693,113 at the end of the previous year[190]. Hotel Operations and Market Conditions - The hotel occupancy rate dropped to 17% from 44% in the previous year, indicating a significant decline in demand[11]. - The average daily rate of hotel decreased to HK$287 from HK$326 year-on-year[11]. - The average occupancy rate for the Group's hotels was approximately 17%, representing a decrease of 61% compared to 44% in the same period last year[33]. - The average daily rate (ADR) for hotel rooms was approximately RMB287, which is a decrease of 12% from RMB326 in the corresponding period of 2021[33]. - Accommodation revenue from star-rated hotels was approximately HK$2.06 million, representing a decrease of approximately 67% over the corresponding period of 2021[35]. - Catering revenue generated approximately HK$2.16 million, representing 43% of hotel business turnover, an increase of 10 percentage points from 33% in the same period last year[37]. - The hotel operating income has declined periodically due to the local spread of the epidemic, with customer source accounting for 46% of the total, down 5 percentage points from 51% in the same period last year[37]. - The outlook for the commercial property market remains uncertain due to weak demand and ongoing pressure on rental rates[39]. Strategic Initiatives and Future Outlook - The Group aims to leverage its advantages in Fujian Province to enhance its long-term competitiveness in the tourism-related industries[20]. - The overall situation of the hotel industry is improving as the ability to respond to the epidemic enhances with the normalization of epidemic prevention and control in China[20]. - The Group plans to actively promote reform and integration to improve its internal impetus and long-term competitiveness for sustainable development[20]. - The Group aims to revitalize and optimize its asset management in Hong Kong to improve efficiency and release value[22]. - The Group is focusing on integrating hotel resources, cultural tourism, and equity investment to establish a core business industry chain and enhance competitiveness[22]. - The Group aims to improve operational efficiency through strict cost control measures to minimize adverse impacts from the epidemic[37]. - The Group plans to adopt a market-oriented incentive mechanism to seek new breakthroughs in cultural and tourism-related industries[47]. Corporate Governance and Management - The Company has adopted the Model Code for Securities Transactions as its code of conduct for Directors[78]. - The Company has a strong management team with extensive experience in finance and operational management[88]. - The Board comprises a total of nine Directors, including three Executive Directors, three Non-executive Directors, and three Independent Non-executive Directors[105]. - The Company has fully complied with the Corporate Governance Code provisions throughout the six months ended 30 June 2022[105]. - The internal audit team monitors compliance with policies and procedures, ensuring the effectiveness of risk management and internal control systems[129]. - The Audit Committee has reviewed the interim results and the interim report for the six months ended June 30, 2022[133]. - The Company has established measurable objectives for implementing the Board Diversity Policy and monitors progress towards these objectives[139]. Employee and Shareholder Information - As of June 30, 2022, the Group employed approximately 126 employees in Hong Kong and Xiamen, with remuneration based on performance and market rates[75]. - The Group operates a Mandatory Provident Fund (MPF) Scheme for all its employees in Hong Kong, with contributions based on a percentage of employees' salaries[181]. - As of June 30, 2022, at least 25% of the Company's total issued share capital was held by the public[182]. - The total contributions made by the Group to the retirement benefit plans during the review period are charged to the consolidated income statement[181].
闽港控股(00181) - 2022 - 中期财报