顺豪控股(00253) - 2022 - 中期财报

Company Information Directors and Company Particulars This section details Shun Ho Holdings Limited's key corporate information, including its board of directors, company secretary, auditor, and registered office - The Board of Directors comprises five executive directors, including Mr. Cheng Kai Man (Chairman), and three independent non-executive directors[2] - The company's registered office is located on the 3rd Floor, Shun Ho Tower, Ice House Street, Central, Hong Kong, with Deloitte Touche Tohmatsu as its auditor[2] Management Discussion and Analysis Interim Results Overview Profit attributable to owners of the company significantly increased for the six months ended June 30, 2022, but no interim dividend is recommended due to the COVID-19 crisis and future investment needs Profit Attributable to Owners of the Company Comparison | Metric | As at June 30, 2022 for the six months ended (HKD) | As at June 30, 2021 for the six months ended (HKD) | | :--- | :--- | :--- | | Profit Attributable to Owners of the Company | 31.00 million | 4.00 million | - The Board does not recommend distributing an interim dividend for the six months ended June 30, 2022, to safeguard the Group's reserves against pandemic impacts and support potential hotel acquisition projects[5] Business Performance The Group primarily engages in commercial property investment, leasing, development, and hotel investment and management, with hotel revenue significantly increasing while commercial property rental income slightly decreased Hotel Business The hotel business segment experienced substantial revenue growth, largely driven by designated quarantine hotel operations in Hong Kong Hotel Business Revenue Comparison | Metric | As at June 30, 2022 for the six months ended (HKD) | As at June 30, 2021 for the six months ended (HKD) | Change (%) | | :--- | :--- | :--- | :--- | | Hotel Business Revenue | 286.00 million | 145.00 million | +97% | Grand Hotel Group Key Financial Indicators Comparison | Metric | As at June 30, 2022 for the six months ended (HKD Thousand) | As at June 30, 2021 for the six months ended (HKD Thousand) | Change (%) | | :--- | :--- | :--- | :--- | | Operating Profit from Hotels | 126,031 | 373 | +33,688% | | Profit After Tax | 106,005 | 8,763 | +1,110% | - Grand Hotel Group's total revenue grew by 93%, primarily because five of its six local hotels served as designated quarantine hotels, with four becoming 'Community Isolation Facility' hotels from February to May 2022[12] - The valuation of London's Royal Scot Hotel remained unchanged at GBP 88.5 million, with optimistic rental prospects as its rent increases are linked to the UK Retail Price Index, which reached a 40-year high of 12.3% in July 2022[12] Commercial Property Rental Income Commercial property rental income saw a slight decrease, while administrative expenses increased due to new acquisition costs Commercial Property Rental Income Comparison | Metric | As at June 30, 2022 for the six months ended (HKD) | As at June 30, 2021 for the six months ended (HKD) | | :--- | :--- | :--- | | Commercial Property Rental Income | 77.00 million | 87.00 million | Administrative Expenses Comparison | Metric | As at June 30, 2022 for the six months ended (HKD) | As at June 30, 2021 for the six months ended (HKD) | | :--- | :--- | :--- | | Administrative Expenses (excluding depreciation) | 25.80 million | 20.60 million | - The increase in administrative expenses was primarily due to new acquisition costs incurred during the period[14] Liquidity and Employees Overall debt slightly increased, but the gearing ratio remained stable, while the total number of employees marginally decreased with remuneration based on market rates Overall Debt and Gearing Ratio Comparison | Metric | As at June 30, 2022 (HKD) | As at December 31, 2021 (HKD) | | :--- | :--- | :--- | | Overall Debt | 808.00 million | 784.00 million | | Gearing Ratio | 10% | 10% | - The increase in overall debt was due to new bank borrowings during the period[15] Number of Employees Comparison | Metric | As at June 30, 2022 | As at December 31, 2021 | | :--- | :--- | :--- | | Total Employees | 475 | 486 | Key Business Achievements and Outlook Hong Kong's tourism market was severely impacted by the pandemic, while the London Royal Scot Hotel shows optimistic rental prospects, and the Group is actively pursuing a luxury hotel renovation project in London - Hong Kong's tourism market was severely disrupted by COVID-19, with only 76,000 overseas and Chinese visitors, a year-on-year decrease of 99%[16] - The London Wood Street Police Station headquarters has been approved for renovation into a luxury hotel with approximately 216 rooms, restaurants, bars, and other facilities; management is further applying to increase room numbers and preparing for renovation works[18] - Management believes that due to the ongoing impact of COVID-19, the likelihood of a large number of overseas and Chinese tourists returning to Hong Kong in the remainder of 2022 is low, and Hong Kong's hotel and retail sectors will continue to suffer from low occupancy rates and high operating costs[19] - The Group's six hotels in Hong Kong and Shanghai have signed short-term contracts with the government to operate as quarantine hotels, but it is expected that the government may shorten the quarantine period for inbound travelers, and hotels may resume competition with local hotels[19] Significant Acquisitions, Disposals, and Major Investments The Group plans to sell Grand City Hotel for HKD 900 million and acquire Rambler Crest Hotel for HKD 1.42 billion, expecting improved operational cost efficiency and long-term profit potential from the acquisition - The Group has agreed to sell Grand City Hotel for HKD 900 million (adjustable), which was approved by shareholders at the EGM but not yet completed as of the reporting date[21] - The Group has agreed to acquire Rambler Crest Hotel for HKD 1.42 billion (adjustable), which is subject to shareholder approval and not yet completed as of the reporting date[22] - The proceeds from the sale of Grand City Hotel will facilitate the acquisition of Rambler Crest Hotel, which is expected to significantly improve operational cost efficiency for this large hotel and offer long-term potential for increased operating profit and capital gains[22] Purchase, Sale, or Redemption of Listed Securities Neither the Company nor its subsidiaries purchased, sold, or redeemed any of the Company's listed securities during the six months ended June 30, 2022 - Neither the Company nor its subsidiaries purchased, sold, or redeemed any of the Company's listed securities during the six months ended June 30, 2022[23] Directors' and Major Shareholders' Interests Directors' Interests in Listed Securities As of June 30, 2022, Chairman Mr. Cheng Kai Man held a 74.40% equity interest in the Company and controlling interests in Shun Ho Property and Grand Hotel Group through his controlled entities Mr. Cheng Kai Man's Shareholding in the Company | Director Name | Capacity | Nature of Interest | Number of Shares/Relevant Shares Held | Approximate Percentage of Shareholding | | :--- | :--- | :--- | :--- | :--- | | 郑啓文 | Beneficial Owner and Interests of Corporations Controlled by Him | Individual and Corporate | 226,454,825 | 74.40% | Mr. Cheng Kai Man's Shareholding in Associated Corporations | Name of Associated Corporation | Capacity | Nature of Interest | Number of Shares/Relevant Shares Held | Approximate Percentage of Shareholding | | :--- | :--- | :--- | :--- | :--- | | 顺豪物业投资有限公司 | Beneficial Owner and Interests of Corporations Controlled by Him | Individual and Corporate | 385,395,999 | 66.48% | | 华大酒店投资有限公司 | Interests of Corporations Controlled by Him | Corporate | 6,360,585,437 | 71.09% | Major Shareholders As of June 30, 2022, Trillion Resources (BVI) was the ultimate holding company with a 71.20% equity interest, and Ms. Li Pui Ling was deemed to hold 74.40% due to her spouse Mr. Cheng Kai Man's interests Major Shareholders' Shareholding | Shareholder Name | Capacity | Number of Shares/Relevant Shares Held | Approximate Percentage of Shareholding | | :--- | :--- | :--- | :--- | | Trillion Resources (BVI) | Beneficial Owner and Interests of Corporations Controlled by Him | 216,608,825 | 71.20% | | 李佩玲 | Spouse's Interest | 226,454,825 | 74.40% | Corporate Governance Independent Review The interim results for the six months ended June 30, 2022, were not audited but reviewed by Deloitte Touche Tohmatsu in accordance with HKSRS 2410 and by the Group's audit committee - The interim results for the six months ended June 30, 2022, were unaudited but reviewed by Deloitte Touche Tohmatsu in accordance with Hong Kong Standard on Review Engagements 2410 issued by the Hong Kong Institute of Certified Public Accountants[35] - The interim results and the 2022 interim report have been reviewed by the Group's audit committee[35] Compliance with Corporate Governance Code The Company complied with all code provisions of the Corporate Governance Code, with the exception of the Chairman and Chief Executive Officer roles being combined by Mr. Cheng Kai Man, which the Board believes provides strong leadership and cost savings - The Company complied with all code provisions of the Corporate Governance Code, with one deviation: code provision C.2.1 stipulates that the roles of Chairman and Chief Executive Officer should not be performed by the same individual, whereas Mr. Cheng Kai Man holds both positions in the Company[36] - The Board believes that combining the roles of Chairman and Chief Executive Officer provides robust and consistent leadership for the Company, facilitating effective strategic planning and implementation, and achieving significant cost savings[36] Compliance with Model Code The Company adopted the Model Code for Securities Transactions by Directors of Listed Issuers, and all directors confirmed compliance during the period - The Company adopted the Model Code for Securities Transactions by Directors of Listed Issuers as set out in Appendix 10 of the Listing Rules, and all directors confirmed compliance with the standards stipulated in the Model Code during the period[38] Review Report on Condensed Consolidated Financial Statements Deloitte Touche Tohmatsu reviewed the condensed consolidated financial statements in accordance with HKSRS 2410 and found no material non-compliance with HKAS 34 - Deloitte Touche Tohmatsu reviewed the condensed consolidated financial statements in accordance with Hong Kong Standard on Review Engagements 2410, 'Review of Interim Financial Information Performed by the Independent Auditor of the Entity,' issued by the Hong Kong Institute of Certified Public Accountants[41] - Based on the review, we have not become aware of any matter that causes us to believe that the condensed consolidated financial statements are not prepared, in all material respects, in accordance with Hong Kong Accounting Standard 34[42] Condensed Consolidated Financial Statements Condensed Consolidated Statement of Profit or Loss For the six months ended June 30, 2022, the Company's revenue and profit for the period significantly increased, primarily due to a substantial rise in hotel services revenue, leading to a significant increase in basic earnings per share Key Data from Condensed Consolidated Statement of Profit or Loss | Metric | As at June 30, 2022 for the six months ended (HKD Thousand) | As at June 30, 2021 for the six months ended (HKD Thousand) | | :--- | :--- | :--- | | Revenue | 363,594 | 232,345 | | Profit for the Period | 89,035 | 12,994 | | Profit Attributable to Owners of the Company | 31,150 | 4,293 | | Basic Earnings Per Share (HK cents) | 12.88 | 1.78 | - Revenue growth was primarily driven by customer contracts (hotel services) and rental income, with hotel services revenue increasing from HKD 145,436 thousand to HKD 286,391 thousand[43] Condensed Consolidated Statement of Comprehensive Income Despite a significant increase in profit for the period, total comprehensive expense for the period was negative due to exchange differences arising from the translation of foreign operations Key Data from Condensed Consolidated Statement of Comprehensive Income | Metric | As at June 30, 2022 for the six months ended (HKD Thousand) | As at June 30, 2021 for the six months ended (HKD Thousand) | | :--- | :--- | :--- | | Profit for the Period | 89,035 | 12,994 | | Exchange Differences Arising from Translation of Foreign Operations | (131,077) | 20,034 | | Total Comprehensive (Expense) Income for the Period | (41,855) | 32,966 | | Total Comprehensive (Expense) Income Attributable to Owners of the Company | (19,495) | 11,777 | - Despite a significant increase in profit for the period, a large exchange difference (expense of HKD 131,077 thousand) arising from the translation of foreign operations resulted in the total comprehensive income for the period turning negative[49][51] Condensed Consolidated Statement of Financial Position As of June 30, 2022, non-current assets slightly decreased, while current assets significantly grew from increased receivables and assets held for sale, expanding net current liabilities Key Data from Condensed Consolidated Statement of Financial Position | Metric | As at June 30, 2022 (HKD Thousand) | As at December 31, 2021 (HKD Thousand) | | :--- | :--- | :--- | | Non-current Assets | 8,346,658 | 8,766,717 | | Current Assets | 762,064 | 300,611 | | Current Liabilities | 978,791 | 882,391 | | Net Current Liabilities | (216,727) | (581,780) | | Equity Attributable to Owners of the Company | 4,022,262 | 4,036,257 | - Current assets significantly increased, primarily due to trade and other receivables rising from HKD 11,961 thousand to HKD 58,342 thousand, and new assets classified as held for sale totaling HKD 380,526 thousand[55] - Net current liabilities decreased from HKD 581,780 thousand at the beginning of the period to HKD 216,727 thousand, indicating an improvement in liquidity[57] Condensed Consolidated Statement of Changes in Equity The statement of changes in equity shows a negative total comprehensive expense attributable to owners of the Company, primarily influenced by changes in the exchange reserve - Changes in equity were primarily influenced by movements in the exchange reserve, resulting in a negative total comprehensive expense attributable to owners of the Company of HKD 19,495 thousand[52][59] - The securities revaluation reserve includes a decrease of HKD 12,252 thousand in the value of securities attributable to the Group held by a former associate as at December 31, 2001, and a cumulative fair value loss of HKD 1,530 thousand on equity investments at fair value through other comprehensive income attributable to the Group[61] Condensed Consolidated Statement of Cash Flows Net cash from operating activities significantly increased, net cash used in investing activities was an outflow, and net cash from financing activities shifted to an inflow, leading to a substantial increase in cash and cash equivalents at period-end Key Data from Condensed Consolidated Statement of Cash Flows | Metric | As at June 30, 2022 for the six months ended (HKD Thousand) | As at June 30, 2021 for the six months ended (HKD Thousand) | | :--- | :--- | :--- | | Net Cash from Operating Activities | 211,634 | 114,674 | | Net Cash Used in Investing Activities | (184,868) | (441) | | Net Cash from (Used in) Financing Activities | 41,879 | (33,770) | | Net Increase in Cash and Cash Equivalents | 68,645 | 80,463 | | Cash and Cash Equivalents at End of Period | 312,444 | 260,395 | - Net cash from operating activities significantly increased, primarily benefiting from higher profit before tax and net impairment adjustments for investment properties at fair value[63] - Net cash used in investing activities significantly increased, mainly due to HKD 142,070 thousand paid for deposits for acquisition of a subsidiary and HKD 49,500 thousand for the purchase of investment properties[63] - Net cash from financing activities shifted from an outflow last year to an inflow, primarily due to new bank borrowings of HKD 999,500 thousand, offsetting bank loan repayments of HKD 948,780 thousand[65] Notes to the Condensed Consolidated Financial Statements 1. Basis of Preparation The condensed consolidated financial statements are prepared on a going concern basis, despite current liabilities exceeding current assets, as management assesses sufficient financial resources, unused bank facilities, and ultimate holding company funding commitments - The condensed consolidated financial statements are prepared on a going concern basis, given that the Group's current liabilities exceeded its current assets by HKD 216,727,000 as at June 30, 2022[70] - The Group possesses internal resources, unused bank facilities (totaling HKD 2.12 billion), and funding support commitments from its ultimate holding company, Trillion Resources Limited, to ensure fulfillment of financial obligations[70] - Management has conducted a going concern assessment, including the ongoing impact of COVID-19, and prepared cash flow forecasts and covenant calculations[70] 1A. Significant Events During the Interim Period The COVID-19 pandemic and related restrictions negatively impacted the global economy and the Group's business, causing revenue and investment property fair value fluctuations, though participation in designated quarantine hotel schemes positively impacted revenue - The outbreak of COVID-19 and subsequent quarantine measures and travel restrictions implemented by various countries negatively impacted the global economy and business environment, directly or indirectly affecting the Group's operations, including fluctuations in revenue and fair value of investment properties[71] - During the interim period, six of the Group's hotels participated in the Designated Quarantine Hotel Scheme, and three also joined the Community Isolation Facility Hotel Scheme, which management believes will positively impact the Group's revenue[71] 2. Principal Accounting Policies The condensed consolidated financial statements are prepared on a historical cost basis, with investment properties and certain financial instruments measured at fair value. Amendments to HKFRS were first applied this period but had no significant impact on financial position or performance - The condensed consolidated financial statements are prepared on a historical cost basis, except for investment properties and certain financial instruments measured at fair value (where applicable)[73] - The application of amendments to Hong Kong Financial Reporting Standards during the period had no significant impact on the financial position and performance and/or disclosures in the Group's condensed consolidated financial statements for the current and prior periods[74] 3. Revenue Total Group revenue significantly increased, primarily driven by operating hotel revenue, with room rental and ancillary services being the largest contributors. Hong Kong contributed the vast majority of hotel services revenue Revenue Composition Comparison | Revenue Source | As at June 30, 2022 for the six months ended (HKD Thousand) | As at June 30, 2021 for the six months ended (HKD Thousand) | | :--- | :--- | :--- | | Operating Hotel Revenue | 286,391 | 145,436 | | Property Rental Income | 77,161 | 86,909 | | Dividend Income | 42 | – | | Total Revenue | 363,594 | 232,345 | Hotel Services Revenue Breakdown | Type of Goods or Services | As at June 30, 2022 for the six months ended (HKD Thousand) | As at June 30, 2021 for the six months ended (HKD Thousand) | | :--- | :--- | :--- | | Room Rental Income and Other Ancillary Services | 264,179 | 144,204 | | Food and Beverages | 22,212 | 1,232 | - Hong Kong contributed HKD 276,521 thousand in hotel services revenue, significantly exceeding Mainland China's HKD 9,870 thousand[78] 4. Segment Information The Group reports by hotel services, property investment, and securities investment segments. Hotel services revenue and performance significantly increased, while property investment revenue and performance declined. Grand City Hotel's assets and liabilities are classified as held for sale Segment Revenue and Performance Comparison | Segment | H1 2022 Revenue (HKD Thousand) | H1 2021 Revenue (HKD Thousand) | H1 2022 Performance (HKD Thousand) | H1 2021 Performance (HKD Thousand) | | :--- | :--- | :--- | :--- | :--- | | Hotel Services | 286,391 | 145,436 | 125,953 | 1,574 | | Property Investment | 77,161 | 86,909 | 22,682 | 52,010 | | Securities Investment | 42 | – | 42 | – | - Hotel services segment performance significantly increased from HKD 1,574 thousand to HKD 125,953 thousand, primarily benefiting from the significant contributions of Ramada Hong Kong Harbour View and Grand View Hotel Causeway Bay[82] - The respective segment assets and liabilities of Grand City Hotel are presented in the condensed consolidated statement of financial position as assets classified as held for sale and liabilities associated with assets classified as held for sale[88] 5. Finance Costs Finance costs, primarily comprising interest on bank borrowings and amounts due to the ultimate holding company, slightly increased during the period Finance Costs Composition Comparison | Cost Source | As at June 30, 2022 for the six months ended (HKD Thousand) | As at June 30, 2021 for the six months ended (HKD Thousand) | | :--- | :--- | :--- | | Interest on Bank Borrowings | 4,825 | 3,949 | | Interest on Amounts Due to Ultimate Holding Company | 820 | 1,104 | | Total Finance Costs | 5,645 | 5,053 | 6. Income Tax Expense Income tax expense significantly increased, mainly due to a substantial rise in current tax in Hong Kong and an increase in deferred tax Income Tax Expense Composition Comparison | Tax Source | As at June 30, 2022 for the six months ended (HKD Thousand) | As at June 30, 2021 for the six months ended (HKD Thousand) | | :--- | :--- | :--- | | Hong Kong Current Tax | 24,501 | 8,774 | | China Current Tax | 209 | – | | UK Current Tax | 3,108 | 4,029 | | Deferred Tax | 4,006 | 1,765 | | Total Income Tax Expense | 31,784 | 14,826 | - Hong Kong profits tax is recognized based on management's estimated weighted average annual income tax rate of 16.5% for the entire financial year[98] 7. Profit for the Period Profit for the period is stated after deducting or including depreciation expenses, interest income from bank deposits, and loss (gain) on disposal of property Profit for the Period Adjustment Items | Item | As at June 30, 2022 for the six months ended (HKD Thousand) | As at June 30, 2021 for the six months ended (HKD Thousand) | | :--- | :--- | :--- | | Depreciation of Right-of-Use Assets | 419 | 427 | | Depreciation of Property, Plant and Equipment | 53,275 | 52,840 | | Interest Income from Bank Deposits | (204) | (136) | | Loss (Gain) on Disposal of Property, Plant and Equipment | 449 | (709) | 8. Dividends No dividends were declared or paid during the reporting period or the prior year. The Board resolved not to declare or recommend an interim dividend for the current period - No dividends were declared or paid to shareholders for the six months ended June 30, 2022 and 2021, nor for the years ended December 31, 2021 and 2020[100] - The Board resolved not to declare or recommend an interim dividend for the six months ended June 30, 2022 and 2021[100] 9. Earnings Per Share Basic earnings per share significantly increased, calculated based on profit attributable to owners of the Company and the number of shares in issue. No diluted earnings per share are presented for the current or prior period due to the absence of potential ordinary shares Basic Earnings Per Share Comparison | Metric | As at June 30, 2022 for the six months ended | As at June 30, 2021 for the six months ended | | :--- | :--- | :--- | | Profit for the Period Attributable to Owners of the Company (HKD) | 31.15 million | 4.29 million | | Number of Shares in Issue (Shares) | 241,766,000 | 241,766,000 | | Basic Earnings Per Share (HK cents) | 12.88 | 1.78 | - The number of shares adopted in calculating earnings per share excludes shares of the Company held by a subsidiary[102] 10. Property, Plant and Equipment During the reporting period, the Group's additions to property, plant and equipment decreased, and some property was disposed of Property, Plant and Equipment Changes | Item | As at June 30, 2022 for the six months ended (HKD) | As at June 30, 2021 for the six months ended (HKD) | | :--- | :--- | :--- | | Additions | 6.27 million | 7.40 million | | Disposals (carrying amount) | 638,000 | 1.34 million | 11. Investment Properties Investment properties are stated at fair value, with a loss arising from fair value changes during the period. Valuation is based on the income approach, considering term yields, reversionary yields, and market rents - Investment properties are stated at fair value based on valuations performed by independent professional valuers and the Company's directors, with the fair value assessed using the income approach to determine the market value of investment properties[104] Loss from Fair Value Changes of Investment Properties | Metric | As at June 30, 2022 for the six months ended (HKD) | As at June 30, 2021 for the six months ended (HKD) | | :--- | :--- | :--- | | Loss from Fair Value Changes | 53.70 million | 34.47 million | - The income approach considers current rents from existing leases and market levels of future reversionary income, capitalizing rents for fully leased properties to estimate their value on an open market basis[105] 12. Trade and Other Receivables Trade and other receivables significantly increased, primarily driven by trade receivables from customer contracts. The Group typically grants 30 to 60 days credit to hotel travel agents and certain customers Trade and Other Receivables Comparison | Item | As at June 30, 2022 (HKD Thousand) | As at December 31, 2021 (HKD Thousand) | | :--- | :--- | :--- | | Trade Receivables (from customer contracts) | 48,307 | 4,660 | | Lease Receivables | 2,434 | 3,073 | | Other Receivables | 7,601 | 4,228 | | Total | 58,342 | 11,961 | - Except for credit terms of 30 to 60 days granted to hotel travel agents and certain customers, the Group does not grant any credit period to customers[109] 13. Deposits Paid for Acquisition of a Subsidiary The Group paid an initial deposit of HKD 142.07 million for the acquisition of the entire issued share capital and related indebtedness of Haili Investment Limited - On May 11, 2022, an indirect wholly-owned subsidiary of the Group entered into a sale and purchase agreement with an independent third party of the Group to acquire the entire issued share capital of Haili Investment Limited and accept the assignment of the sale loan, being the total outstanding loan of Haili, for a consideration of HKD 1.42 billion, with an initial deposit of HKD 142.07 million paid[111] 14. Assets Classified as Held for Sale / Liabilities Associated with Assets Classified as Held for Sale The assets and liabilities of Grand City Hotel have been resolved by the Board for sale and classified as a disposal group held for sale, expected to be completed within twelve months - On May 11, 2022, the Company's directors resolved to dispose of the Group's subsidiary, Wah Choi Investment Limited (which holds a hotel named Grand City Hotel), and the assets and liabilities attributable to this subsidiary are expected to be sold within twelve months, thus classified as a disposal group held for sale[112] Assets and Liabilities Classified as Held for Sale | Item | As at June 30, 2022 (HKD Thousand) | | :--- | :--- | | Property, Plant and Equipment | 373,561 | | Bank Balances and Cash | 5,191 | | Total Assets Classified as Held for Sale | 380,526 | | Trade and Other Payables and Accruals | 1,524 | | Contract Liabilities | 5,147 | | Total Liabilities Associated with Assets Classified as Held for Sale | 8,371 | 15. Trade and Other Payables and Accruals Trade and other payables and accruals slightly decreased, primarily driven by a reduction in other payables and accruals Trade and Other Payables and Accruals Comparison | Item | As at June 30, 2022 (HKD Thousand) | As at December 31, 2021 (HKD Thousand) | | :--- | :--- | :--- | | Trade Payables | 4,814 | 5,351 | | Other Payables and Accruals | 33,221 | 35,490 | | Total | 38,035 | 40,841 | - An aging analysis of trade payables shows that the vast majority of amounts (HKD 4,756 thousand) are within 0-30 days[115] 16. Bank Borrowings Total bank borrowings slightly increased, with all loans being floating-rate and secured by certain Group assets Total Bank Borrowings Comparison | Metric | As at June 30, 2022 (HKD Thousand) | As at December 31, 2021 (HKD Thousand) | | :--- | :--- | :--- | | Secured Bank Borrowings | 765,297 | 738,408 | - All of the Group's bank borrowings are floating-rate loans, with an effective annual interest rate of 1.28% (December 31, 2021: 1.29%)[119] - Bank borrowings are secured by certain assets of the Group, including investment properties, hotel properties, pledged shares of certain subsidiaries, assignments of property rental income, and assignments of insurance policies for certain hotel properties[135] 17. Share Capital At the end of the reporting period, the number and amount of ordinary