香港中旅(00308) - 2022 - 中期财报

Company Information Company Overview This section outlines the company's organizational structure, board and committee members, and key professional advisors - The company's Board of Directors is chaired by Mr. Jiang Hong, with Mr. Lu Rui'an as Vice Chairman. Key committees such as the Audit Committee and Remuneration Committee are led by independent non-executive directors[5][6] - The company's auditor is KPMG, and its legal counsel is Messrs. Mak & Co. Solicitors[5] Financial Calendar and Shareholder Information Financial Calendar and Shareholder Information This section provides key financial event dates, dividend information, and basic shareholder details including the company website, stock code, and shares in issue - The company announced its interim results on August 31, 2022[8] Shareholder Information | Item | Content | | :--- | :--- | | Company Website | www.irasia.com/listco/hk/ctii | | Stock Code | 308 | | Listing Date | November 11, 1992 | | Shares in Issue (as of 2022/6/30) | 5,536,633,709 shares | Interim Results Review Report on Interim Financial Information Independent auditor KPMG has reviewed this interim financial report, concluding no material non-compliance with Hong Kong Accounting Standard 34 - The scope of review is significantly narrower than an audit, thus the auditor does not express an audit opinion[11] - The review concluded no material issues, and the report complies with Hong Kong Accounting Standard 34 'Interim Financial Reporting'[12] Consolidated Statement of Profit or Loss For the six months ended June 30, 2022, group revenue decreased by 14% to HKD 885 million, resulting in a loss of HKD 462 million and a loss attributable to shareholders of HKD 285 million due to increased cost of sales and reduced other net income Key Financial Indicators (Six Months Ended June 30) | Indicator (Six Months Ended June 30) | 2022 (Thousand HKD) | 2021 (Thousand HKD) | YoY Change | | :--- | :--- | :--- | :--- | | Revenue | 885,326 | 1,031,622 | -14.2% | | Operating Loss | (507,676) | (185,301) | Loss widened by 173.9% | | Loss for the Period | (462,285) | (111,523) | Loss widened by 314.5% | | (Loss)/Profit Attributable to Owners of the Company | (285,102) | 5,219 | Turned from profit to loss | | Basic (Loss)/Earnings Per Share (HK cents) | (5.15) | 0.09 | Turned from profit to loss | Consolidated Statement of Comprehensive Income The group reported a total comprehensive loss of HKD 934 million for the period, a significant shift from last year's HKD 775 million comprehensive income, primarily due to current period loss and HKD 473 million exchange losses from overseas operations - Total comprehensive income for the period turned from a profit of HKD 775 million in the prior year to a loss of HKD 934 million[14] - Key factors contributing to the comprehensive loss include a loss for the period of HKD 462 million and exchange differences on translation of overseas operations of HKD 473 million[14] Consolidated Statement of Financial Position As of June 30, 2022, total assets were HKD 25.039 billion, a 3% decrease from year-end, with total equity at HKD 18.250 billion, down 4.6%, and total liabilities slightly up to HKD 6.790 billion, maintaining overall financial stability Consolidated Statement of Financial Position (Thousand HKD) | Indicator (Thousand HKD) | June 30, 2022 | December 31, 2021 | | :--- | :--- | :--- | | Total Non-current Assets | 16,304,067 | 16,520,744 | | Total Current Assets | 8,735,275 | 9,287,654 | | Total Assets | 25,039,342 | 25,808,398 | | Total Non-current Liabilities | 1,784,061 | 1,817,816 | | Total Current Liabilities | 5,005,576 | 4,869,342 | | Total Liabilities | 6,789,637 | 6,687,158 | | Total Equity | 18,249,705 | 19,121,240 | Condensed Consolidated Statement of Changes in Equity As of June 30, 2022, total shareholders' equity decreased from HKD 19.121 billion to HKD 18.250 billion, primarily due to a total comprehensive loss of HKD 934 million for the period, including HKD 285 million attributable to shareholders and other comprehensive losses - Total shareholders' equity decreased from HKD 19.121 billion to HKD 18.250 billion, primarily impacted by a total comprehensive loss of HKD 934 million for the period[17] Condensed Consolidated Statement of Cash Flows Operating cash flow turned from net inflow to a net outflow of HKD 365 million, investment activities resulted in a net outflow of HKD 307 million, while financing activities saw a net inflow of HKD 562 million, mainly from HKD 489 million advances from the controlling company, with cash and cash equivalents decreasing to HKD 2.795 billion at period-end Cash Flow Activities (Six Months Ended June 30) | Cash Flow Activities (Six Months Ended June 30) | 2022 (Thousand HKD) | 2021 (Thousand HKD) | | :--- | :--- | :--- | | Net Cash (Used in)/Generated from Operating Activities | (364,889) | 764,010 | | Net Cash Used in Investing Activities | (306,771) | (755,635) | | Net Cash Generated from/(Used in) Financing Activities | 561,686 | (46,507) | - Cash and cash equivalents at period-end were HKD 2.795 billion, a decrease from HKD 3.062 billion at the beginning of the year[20] Notes to the Unaudited Interim Financial Information This section details the basis of financial statement preparation, accounting policies, financial risk management, segment operations, revenue composition, and related party transactions, noting no significant changes in accounting policies or risk management strategies, and that all segments except hotel business recorded losses Operating Segment Information The group operates four segments: tourist attractions, travel documents, hotels, and passenger transportation; in H1 2022, tourist attractions had the highest revenue but an operating loss, passenger transportation incurred the largest loss, and only the hotel business was profitable Segment Performance (H1 2022) | Segment (H1 2022) | Segment Revenue (Thousand HKD) | Segment Result (Thousand HKD) | | :--- | :--- | :--- | | Tourist Attractions and Related Businesses | 582,818 | (69,064) | | Travel Document and Related Businesses | 40,401 | (26,780) | | Hotel Business | 223,131 | 6,108 | | Passenger Transportation Business | 25,498 | (100,261) | Revenue Analysis Total revenue for H1 2022 was HKD 885 million, a 14% year-on-year decrease, primarily due to a significant decline in tourist attraction revenue, partially offset by HKD 298 million in real estate sales, while hotel revenue saw an increase Revenue by Source (Thousand HKD) | Revenue Source (Thousand HKD) | H1 2022 | H1 2021 | | :--- | :--- | :--- | | Tourist Attractions and Related Revenue | 249,684 | 699,859 | | Real Estate Sales Revenue | 297,581 | – | | Hotel Revenue | 210,380 | 168,441 | | Passenger Transportation Revenue | 25,502 | 41,115 | | Total Revenue | 885,326 | 1,031,622 | Dividends The Board of Directors does not recommend the payment of an interim dividend for the six months ended June 30, 2022 - The company does not recommend an interim dividend for 2022, consistent with the policy in the same period of 2021[50] Related Party Transactions The group engages in significant related party transactions with its controlling shareholder China Travel Group and its subsidiaries, including financial services, loans, and leases; notably, subsidiary CTS Property Investment secured a RMB 400 million one-year loan from parent CTS (Group) at 3.59% annual interest during the period - The financial services framework agreement between the group and related party CTS Finance has been extended to December 31, 2024[69] - In January 2022, subsidiary CTS Property Investment entered into a RMB 400 million loan agreement with parent company CTS (Group) to support business development[71] Management Discussion and Analysis Performance Overview In H1 2022, the group faced challenges due to the pandemic in Hong Kong and mainland China, with consolidated revenue down 14% to HKD 885 million and a loss attributable to shareholders of HKD 285 million, compared to a HKD 5.22 million profit last year, primarily due to a one-off gain from travel agency disposal in the prior period and ongoing pandemic impact, yet maintaining a sound financial position Financial Performance Summary (H1 2022) | Financial Indicator (H1 2022) | Amount | YoY Change | | :--- | :--- | :--- | | Consolidated Revenue | HKD 885 million | -14% | | Loss Before Tax | HKD 466 million | Loss increased by 233% | | Loss Attributable to Shareholders | HKD 285 million | Turned from profit to loss | - Key reasons for performance decline: (i) a non-recurring gain of approximately HKD 216 million from the disposal of travel agency business in the same period of 2021; (ii) the negative impact of the fifth wave of the COVID-19 pandemic in H1 2022[74] - The Board of Directors does not recommend an interim dividend[74] Business Review This section reviews the performance of four core business segments: tourist attractions severely impacted by the pandemic but partially offset by real estate sales, travel document business remaining sluggish due to border restrictions, hotel business turning profitable benefiting from quarantine hotel policies, and passenger transportation business continuing to suffer significantly from suspended cross-border services Tourist Attractions and Related Businesses This segment's total revenue decreased 19% to HKD 583 million, with an attributable loss of HKD 69 million; theme parks and natural scenic areas saw revenue drops of 52% and 78% respectively due to reduced visitors, while leisure resorts' revenue surged 147% and became profitable, driven by nearly HKD 300 million in real estate sales - Theme parks (Window of the World, Splendid China) revenue decreased by 52% year-on-year, and attributable loss widened[76] - Natural and cultural scenic area destinations' revenue decreased by 78% year-on-year, turning from profit to loss[76] - Leisure and resort scenic area destinations' revenue increased by 147% year-on-year, primarily due to real estate sales revenue of approximately HKD 298 million from Xianyang Haiquanwan, Zhuhai Haiquanwan, and Anji Company[79] Travel Document and Related Businesses Due to ongoing border restrictions between Hong Kong and mainland China and the sale of travel agency business in 2021, this segment's revenue decreased 34% to HKD 40 million, though its attributable loss narrowed to HKD 7 million - Revenue decline primarily due to unrecovered document processing volume and the disposal of travel agency business in May 2021[81] Hotel Business The hotel business performed strongly, with revenue growing 9% to HKD 223 million and successfully turning profitable with an attributable profit of HKD 6 million, primarily driven by two Hong Kong hotels serving as government-designated quarantine facilities - Metropark Hotel Causeway Bay and Metropark Hotel Kowloon, serving as government-designated quarantine hotels, drove overall hotel business revenue growth and profitability[81] Passenger Transportation Business Passenger transportation business remains severely impacted by the pandemic, with all cross-border bus and ferry services suspended; revenue decreased 38% to HKD 26 million, incurring an attributable loss of HKD 100 million, though the loss narrowed by 18% year-on-year, as the company actively explores local charter services to mitigate losses - Cross-border bus services and passenger ferry services were fully suspended, severely impacting the business[82] - The company is expanding local charter and green tourism businesses to mitigate the challenges from the suspension of core operations[82] Development Strategies The group's strategic positioning is to become a 'first-class tourism destination investment and operation service provider,' focusing on integrating scenic area and real estate businesses through upgrading existing operations, advancing 'tourism + real estate' models, exploring overseas expansion like the Maldives project, revitalizing existing assets such as the Hong Kong Hung Hom hotel project, and accelerating digital transformation - Strategic positioning: to build a 'first-class tourism destination investment and operation service provider,' promoting the integrated development of scenic area and real estate businesses[83] - Overseas expansion: acquired 50% equity in the Maldives Ambala Island project, planning to develop a mid-to-high-end resort, with the acquisition completed on August 31, 2022[86] - Asset optimization: progressing with the Hong Kong Hung Hom hotel project construction, expected to be completed by November 2023. To this end, subsidiary CTS Property Investment raised RMB 400 million through a targeted issuance to parent company CTS (Group)[87] - Digital transformation: 15 scenic areas have launched digital platforms, and digital collectibles have been issued for 4 scenic areas, exploring metaverse opportunities[87] Outlook Looking ahead, global economic and tourism recovery faces uncertainties from geopolitics, inflation, and recurring pandemics; the group's future performance hinges on border reopening and easing travel restrictions, yet it remains confident in its strong business fundamentals and ample liquidity, committed to prudent financial management and pursuing long-term growth opportunities for shareholders - Future business performance primarily depends on the development trend of COVID-19 and the timing of border reopening[89] - The group believes its overall business fundamentals are sound and robust, with ample liquidity, possessing the strength and capability for investment and development[89] Other Information Liquidity, Financial Resources and Capital Structure As of June 30, 2022, the group maintained a strong financial position with cash and bank balances of HKD 2.799 billion, total bank and other borrowings plus controlling company loans of HKD 1.178 billion, and a debt-to-capital ratio of 32%, indicating a robust capital structure Liquidity and Capital Structure (As of June 30, 2022) | Indicator (As of June 30, 2022) | Amount (HKD) | | :--- | :--- | | Cash and Bank Balances | 2.799 Billion | | Bank and Other Borrowings and Controlling Company Loans | 1.178 Billion | | Debt-to-Capital Ratio | 32% | Interests of Major Shareholders As of June 30, 2022, China Travel Group is the ultimate controlling shareholder, indirectly holding 3,385,492,610 shares, representing 61.15% of the company's issued share capital, through its wholly-owned subsidiary CTS (Group) - China Travel Group holds 61.15% of the company's shares through CTS (Group), serving as the controlling shareholder[103] Corporate Governance During the reporting period, the company complied with the Listing Rules' Corporate Governance Code provisions, with one deviation: formal appointment letters were not issued to some non-executive directors, though they are still subject to retirement by rotation as per the Articles of Association - The company has complied with the Corporate Governance Code, with one deviation: formal appointment letters were not issued to some directors[110]