Financial Performance - The net profit attributable to shareholders for the six months ended June 30, 2023, was HKD 24 million, a decrease of HKD 60 million or 71.4% compared to HKD 84 million for the same period in 2022[4]. - Revenue from hotel operations decreased by 33% to HKD 191 million for the six months ended June 30, 2023, down from HKD 286 million in the same period last year[6]. - The operating profit from hotel operations plummeted by 87% to HKD 16.5 million, compared to HKD 126 million for the same period in 2022[9]. - Total revenue for the Huada Hotel Group decreased by 35% from HKD 279 million to HKD 182 million[10]. - Total revenue for the six months ended June 30, 2023, was HKD 251,033,000, a decrease of 30.9% compared to HKD 363,594,000 for the same period in 2022[31]. - Customer contracts revenue decreased to HKD 190,509,000, down 33.5% from HKD 286,391,000 year-on-year[31]. - Net profit for the period was HKD 1,488,000, a significant decline of 98.3% from HKD 89,035,000 in the previous year[31]. - Basic earnings per share dropped to HKD 1.27, compared to HKD 12.88 for the same period last year[31]. - The company reported a gross profit of HKD 89,637,000, down 56.0% from HKD 203,503,000 year-on-year[31]. - The company reported a pre-tax profit of HKD 6,983 thousand for the six months ended June 30, 2023, a significant decrease of 94.2% compared to HKD 120,819 thousand for the same period in 2022[40]. - The group reported a profit attributable to owners of HKD 3,069,000 for the six months ended June 30, 2023, compared to HKD 31,150,000 for the same period in 2022, showing a decline of approximately 90.2%[66]. - Basic earnings per share for the six months ended June 30, 2023, were HKD 0.0127, a decrease from HKD 0.1290 for the same period in 2022[66]. Expenses and Liabilities - Administrative expenses (excluding depreciation) increased by 115% to HKD 55.7 million, up from HKD 25.8 million in the previous year[11]. - The company incurred interest expenses of HKD 27,036 thousand, a substantial increase from HKD 4,674 thousand in the prior year[41]. - The group incurred interest expenses of HKD 28,010,000 for the six months ended June 30, 2023, compared to HKD 5,645,000 for the same period in 2022, indicating a significant increase[61]. - Current liabilities decreased to HKD 168,954,000 from HKD 229,351,000 at the end of the previous period[34]. - Non-current liabilities decreased slightly to HKD 1,168,961 thousand from HKD 1,173,747 thousand, indicating a reduction of approximately 0.4%[35]. - Total liabilities decreased to HKD 1,337,915,000 as of June 30, 2023, from HKD 1,403,098,000 as of December 31, 2022, representing a reduction of approximately 4.66%[59]. Assets and Equity - Non-current assets totaled HKD 9,589,013,000 as of June 30, 2023, slightly up from HKD 9,579,244,000 at the end of 2022[34]. - As of June 30, 2023, total equity increased to HKD 8,558,518 thousand from HKD 8,503,944 thousand at the end of 2022, reflecting a growth of approximately 0.64%[35]. - Total assets as of June 30, 2023, amounted to HKD 9,896,433,000, a slight decrease from HKD 9,907,042,000 as of December 31, 2022[56]. - The total carrying value of investment properties was approximately HKD 3,597,115,000 as of June 30, 2023, down from HKD 3,999,692,000 as of December 31, 2022[68]. Operational Highlights - Approximately 13 million visitors traveled to Hong Kong in the first half of 2023, with about 10 million coming from China, compared to 35 million visitors in the same period of 2019[13]. - The newly acquired Glamour Bay Hotel, with 435 rooms and a total area of 216,314 square feet, commenced operations on August 1, 2023[13]. - The occupancy rate of the Glamour Bay Hotel has remained high since its opening, and other hotels in Hong Kong are also expected to maintain high occupancy rates[14]. - The future outlook for hotel operations and rental income remains challenging due to the impact of the US-China trade war and declining import/export volumes in Hong Kong[14]. - The group operates nine revenue-generating hotels, with seven in Hong Kong, one in Shanghai, and one in London, while the Wood Street Hotel renovation project is ongoing[14]. Shareholder Information - The company’s director, Zheng Kaiwen, holds 226,454,825 shares, representing 74.40% of the total shareholding[16]. - Major shareholders include Mercury Fast with 62,602,700 shares (20.60%) and Trillion Resources (BVI) with 216,608,825 shares (71.20%) as of June 30, 2023[20]. Compliance and Governance - The interim results for the six months ended June 30, 2023, were reviewed by Deloitte, in accordance with the Hong Kong Institute of Certified Public Accountants' standards[23]. - The company maintained compliance with the corporate governance code, although the roles of Chairman and CEO are held by the same individual, which the board believes provides consistent leadership[24]. Cash Flow and Investments - Cash generated from operating activities decreased to HKD 49,669 thousand, down 76.8% from HKD 214,808 thousand in the previous year[41]. - The company recorded a net cash outflow from investing activities of HKD 1,300 thousand, compared to a much larger outflow of HKD 184,868 thousand in the previous year[41]. - The company’s cash and cash equivalents at the end of the period were HKD 281,317 thousand, down from HKD 312,444 thousand, representing a decrease of 9.95%[41]. Property and Investment Valuation - The fair value of investment properties did not change during the six months ended June 30, 2023, indicating stability in the property market[68]. - The carrying value of investment properties increased from HKD 3,907,000,000 to HKD 3,947,000,000, an increase of approximately 1%[80]. - The carrying value of hotel properties decreased from HKD 1,596,000,000 to HKD 1,570,000,000, a decrease of approximately 1.6%[80]. Fair Value Measurement - The fair value measurement is categorized into three levels: Level 1 based on quoted prices in active markets for identical assets or liabilities[83]. - Level 2 fair value measurement is derived from observable inputs other than quoted prices, including both direct and indirect data[83]. - Level 3 fair value measurement relies on valuation techniques using inputs that are not based on observable market data[83].
顺豪控股(00253) - 2023 - 中期财报