Financial Performance - Revenue for the six months ended June 30, 2023, was HK$29,295,000, representing an increase of 7.0% compared to HK$27,375,000 for the same period in 2022[7]. - Gross profit for the same period was HK$15,460,000, slightly down by 0.6% from HK$15,559,000 in 2022[7]. - Loss before tax improved to HK$11,418,000, a reduction of 58.8% from a loss of HK$27,732,000 in the previous year[7]. - Loss for the period was HK$8,789,000, compared to HK$27,541,000 in 2022, indicating a significant improvement[7]. - Basic and diluted loss per share for the period was HK$0.01, compared to HK$0.03 in the same period last year[9]. - The company reported a loss for the period of HK$7,661,000 for the six months ended June 30, 2023, compared to a loss of HK$25,136,000 in the previous period[30]. - The Group reported a loss of HK$8.8 million for the six months ended June 30, 2023, compared to a loss of HK$27.5 million for the same period in 2022, primarily due to no fair value loss on investment properties recognized during the period[104]. Assets and Liabilities - Non-current assets increased to HK$294,515,000 as of June 30, 2023, up from HK$181,789,000 at the end of 2022[12]. - Current assets decreased to HK$1,535,540,000 from HK$1,743,583,000 at the end of 2022[12]. - Net assets as of June 30, 2023, were HK$1,766,728,000, down from HK$1,858,909,000 at the end of 2022[13]. - The company’s accumulated losses increased to HK$255,020,000 as of June 30, 2023, from HK$249,040,000 at the end of 2022[30]. - Interest-bearing borrowings remained unchanged at HK$22,000,000 as of June 30, 2023, with a fixed interest rate of 15% per annum[85]. Cash Flow - Net cash used in operating activities improved to HK$2,002,000, significantly better than HK$13,956,000 in the prior year[18]. - The net cash from investing activities was a negative HK$125,063,000, compared to a positive HK$9,350,000 in 2022[18]. - Cash and cash equivalents at June 30, 2023, were HK$1,498,857,000, down from HK$1,777,143,000 at the same time last year[18]. - As of June 30, 2023, the Group's cash and bank balances amounted to HK$1,498.9 million, down from HK$1,702.8 million as of December 31, 2022[111]. Revenue Sources - Revenue from hotel operations rose to HK$14,402,000, a 21% increase compared to HK$11,855,000 in 2022[30]. - Rental income from leases decreased slightly to HK$14,893,000, down 4% from HK$15,520,000 in 2022[30]. - Interest income on bank deposits decreased to HK$8,246,000 in 2023 from HK$9,941,000 in 2022, reflecting a decline of about 17.0%[36]. - The company reported total other income, gains, and losses of HK$8,859,000 for the six months ended June 30, 2023, compared to HK$13,650,000 in 2022, a decrease of about 35.5%[36]. Operational Metrics - The average occupancy rate of the Group's hotels increased by 8.0% to 25.6% for the six months ended June 30, 2023, compared to 24.5% for the same period in 2022[110]. - The gross margin decreased to 52.8%, down 4.1% from 56.9% in the corresponding period in 2022, attributed to increased operational costs[110]. Corporate Governance - The financial statements for the six months ended June 30, 2023, have not been audited but were reviewed by the company's audit committee[21]. - The auditor issued a qualified opinion on the consolidated financial statements for the year ended December 31, 2022, which is expected to be removed for the year ending December 31, 2023[131][132]. - The company has complied with the Corporate Governance Code provisions during the six months ended June 30, 2023, except for the absence of the chairman at the annual general meeting[152][154]. - The company confirmed compliance with the Model Code for Directors' Securities Transactions during the six months ended June 30, 2023[155]. Future Outlook - The business environment remains challenging due to ongoing geopolitical issues and economic uncertainties, impacting future prospects[121]. - The hotel occupancy is expected to progressively improve as the tourism industry revives post-COVID-19 pandemic[102]. - The company anticipates both opportunities and challenges in the near term and will adopt a prudent approach to business development, including seeking high-quality investment opportunities and suitable acquisitions, particularly in the Greater Bay Area[130][134].
大湾区聚变力量(01189) - 2023 - 中期财报