Financial Performance - The profit attributable to the owners for the six months ended June 30, 2022, was HKD 106 million, an increase of HKD 97 million compared to HKD 9 million for the same period in 2021, representing a growth of 1,077.8%[5]. - Total revenue for the group rose by 93% to HKD 278.96 million, compared to HKD 144.71 million in the same period last year, attributed to the operation of quarantine hotels[10]. - Total revenue for the six months ended June 30, 2022, was HKD 275,401,000, a significant increase from HKD 142,476,000 for the same period in 2021, representing an increase of approximately 93.4%[67]. - The net profit for the six months ended June 30, 2022, was HKD 106,005,000, compared to HKD 8,763,000 for the same period in 2021, indicating a substantial increase of approximately 1,107.5%[67]. - Basic earnings per share for the six months ended June 30, 2022, was HKD 1.18, up from HKD 0.10 in the same period of 2021, reflecting a growth of 1,080%[67]. - The total comprehensive income for the six months ended June 30, 2022, was a loss of HKD 32,270,000, compared to a gain of HKD 3,506,000 for the same period in 2021[70]. - The group reported a profit of 105,958,000 HKD for the six months ended June 30, 2022, compared to 8,754,000 HKD for the same period in 2021, indicating a significant increase in profitability[125]. Revenue Sources - Revenue from hotel operations increased by 115% to HKD 256.6 million, up from HKD 119.5 million in the previous year, driven by increased room rates, occupancy, and dining revenue[10]. - Hotel operating revenue reached HKD 256,622,000 for the six months ended June 30, 2022, compared to HKD 119,493,000 in the previous year, marking a growth of 114.5%[103]. - Revenue from room rentals and ancillary services was HKD 238,852,000, up from HKD 118,575,000, reflecting a growth of 101.9%[103]. - The group’s hotel services segment generated an operating profit of HKD 127,506,000 for the six months ended June 30, 2022, compared to HKD 2,348,000 in the same period of 2021, showing a substantial improvement[107]. - The group’s property investment segment reported revenue of HKD 18,737,000, down from HKD 22,983,000 in the previous year, a decrease of 18.8%[107]. - The group’s securities investment segment contributed HKD 42,000 in revenue, unchanged from the previous year[107]. Expenses and Costs - The group’s service costs for the period were HKD 76.3 million, a decrease of HKD 2.9 million from HKD 79.2 million in the previous year[29]. - Administrative expenses increased by 14% to HKD 18.07 million, compared to HKD 15.83 million in the previous year[8]. - Total tax expenses for the six months ended June 30, 2022, amounted to 22,546,000 HKD, a substantial rise from 4,255,000 HKD in the previous year[119]. - The company incurred interest expenses of 4,349,000 HKD for the six months ended June 30, 2022, compared to 3,043,000 HKD for the same period in 2021, reflecting an increase in financial costs[118]. Assets and Liabilities - Non-current assets as of June 30, 2022, totaled HKD 2,426,981,000, down from HKD 2,879,814,000 as of December 31, 2021, representing a decrease of approximately 15.7%[74]. - Current assets as of June 30, 2022, were HKD 3,766,531,000, a decrease from HKD 4,175,608,000 as of December 31, 2021, indicating a decline of about 9.8%[74]. - Current liabilities as of June 30, 2022, were HKD 604,679,000, compared to HKD 572,404,000 as of December 31, 2021, showing an increase of approximately 5.6%[76]. - The total assets of the group as of June 30, 2022, amounted to HKD 4,452,389,000, slightly up from HKD 4,451,001,000 as of December 31, 2021[111]. - The group reported a total liability of HKD 697,420,000 as of June 30, 2022, compared to HKD 663,762,000 at the end of 2021, indicating an increase of 5.4%[114]. - The total equity decreased from 3,787,239 thousand HKD to 3,754,969 thousand HKD, a decline of about 0.9%[82]. Debt and Financing - As of June 30, 2022, the total debt of the group was HKD 492 million, a decrease of HKD 12 million from HKD 504 million as of December 31, 2021[32]. - The bank loans increased by HKD 84 million to HKD 394 million, while shareholder loans decreased by HKD 96 million to HKD 98 million[33]. - New bank loans amounted to 999,500 thousand HKD, indicating a significant increase in financing activities compared to the previous year[92]. - The bank loans secured by the group amounted to HKD 393,863,000 as of June 30, 2022, an increase from HKD 310,299,000 as of December 31, 2021[141][145]. - The effective annual interest rate on bank loans was 1.55% as of June 30, 2022, compared to 1.48% as of December 31, 2021[145]. Corporate Governance - The company has not appointed separate individuals for the roles of Chairman and CEO, with Mr. Zheng concurrently holding both positions, which the board believes provides consistent leadership and cost savings[61]. - The company has complied with the corporate governance code, with the exception of the deviation regarding the dual roles of Chairman and CEO[62]. - The company has adopted the standard code for securities trading by directors and confirmed compliance by all directors during the reporting period[62]. Employee and Shareholder Information - As of June 30, 2022, the company had 412 employees, a decrease from 424 employees as of December 31, 2021[35]. - The company holds 385,395,999 shares in Shun Ho Properties, representing 66.48% of its equity[46]. - The company has 226,454,825 shares in Shun Ho Holdings, accounting for 74.40% of its equity[46]. - The company has not granted any stock options under the employee stock option plan since its adoption in November 2013[48]. - There are no other individuals, apart from directors or senior management, holding interests in the company's shares as per the securities regulations[58]. Acquisitions and Sales - On May 11, 2022, Babenna Limited agreed to sell the entire issued share capital of Huacai Investment Limited for HKD 900 million, pending shareholder approval[39]. - The acquisition of the Tsing Yi Hotel is valued at HKD 1.42 billion, pending shareholder approval[40]. - The sale of the Huacai Investment will assist the group in acquiring the Tsing Yi Hotel at approximately HKD 6,570 per square foot[42]. - The company signed an agreement to acquire all issued shares of Haili for a cash consideration of HKD 1,420,695,000, subject to adjustments based on certain working capital[161]. - The company, through its wholly-owned subsidiary Babenna, entered into a sale agreement to sell all issued shares of Huacai for a cash consideration of HKD 900,000,000, with an adjusted maximum payment expected not to exceed HKD 920,000,000[161]. - Both acquisitions and sales are expected to be completed by September 2022, with the Haili acquisition still pending as of the financial report date[161].
华大酒店(00201) - 2022 - 中期财报