Revenue Performance - For the six months ended June 30, 2023, the revenue from accommodation operations was HK$29,423,000, representing an increase of approximately 15.67% compared to the same period last year[16]. - Revenue for the six months ended June 30, 2023, was HK$30,524,000, a decrease of 4.1% from HK$31,842,000 in the same period of 2022[120]. - Total revenue from contracts with customers for the first half of 2023 was HK$30,524,000, a decline of 4.1% compared to HK$31,842,000 in 2022[166]. - Revenue from accommodation consultation services decreased significantly to HK$1,101,000, down 82.8% from HK$6,404,000 in the same period last year[166]. - Other income for the six months ended June 30, 2023, was HK$443,000, a decrease of 72.0% from HK$1,581,000 in 2022[167]. Operational Improvements - The increase in revenue was primarily driven by the accelerated recovery of various industries and the stabilization of the tourism market, with cross-province travel frequency returning to pre-pandemic levels[16]. - The Group is enhancing its core competitiveness by adjusting business strategies and expanding personalized accommodation products and management services[13]. - A series of operation improvement schemes are being adopted, such as enhancing accommodation ancillary facilities and staff performance programs[17]. - The Group is focused on controlling back office expenses and maintaining cost-saving measures to lower corporate expenses[18]. - The Group aims to achieve performance growth by optimizing member benefits and enhancing customer experience and efficiency[13]. Branch Performance - The Huizhou Branch is expected to benefit from the increasing number of guests due to the recovery of cross-border traffic and the government's commitment to the Greater Bay Area development[23]. - The Nanshan Branch has seen an increase in revenue compared to the same period last year, driven by improved consumer sentiment and demand for commercial activities[28]. - The Baoan Branch has experienced a continuous improvement in occupancy rates due to recent renovations and the rebound in the tourism industry[30]. - The Chengdu Branch is strategically located near Tianfu Square, which is a key economic and cultural hub, and is expected to generate stable income in the future[36]. - The overall recovery of the tourism market is positively impacting the Group's branches, leading to improved operational results across locations[36]. Financial Position - The Group achieved a total comprehensive loss of HK$8,053,000 for the six months ended June 30, 2023, representing a decrease of approximately 42.57% from HK$14,023,000 in the previous year[51]. - The Group incurred a net loss of HK$7,818,000 for the six months ended 30 June 2023[115]. - As of 30 June 2023, the Group had net current liabilities of HK$62,684,000 and net liabilities of HK$28,927,000[115]. - The Group's accumulated losses increased to HK$280,980,000 as of 30 June 2023, compared to HK$275,632,000 at the beginning of the year[138]. - The Group's total equity attributable to owners of the Company decreased to HK$4,024,000 as of 30 June 2023, down from HK$2,178,000 at the beginning of the year[138]. Cost Management - Total operating costs decreased by HK$8,025,000, or approximately 18.76%, from HK$42,769,000 in the corresponding period last year to HK$34,744,000 for the six months ended 30 June 2023[59]. - Employee benefit expenses decreased by HK$590,000 or approximately 5.17% due to effective employee management plans[60]. - Other operating expenses decreased by HK$5,941,000 or approximately 44.71% due to one-off expenses from early contract terminations in the prior period[61]. - Finance costs decreased by HK$550,000 to HK$3,531,000 compared to the six months ended 30 June 2022, mainly due to repayment of lease liabilities[64]. Future Outlook - The hotel business is expected to gradually improve, although it remains affected by the unstable Chinese and global economy and geopolitical situations[13]. - The Group plans to expand property facilities management services to residential property management to optimize its business portfolio and increase revenue sources[46]. - The Group is committed to sustainable and high-quality development through management strengthening and cost control measures[13]. - The Group's management is focused on making further investments in accommodation operations only when sufficient financial resources are available after meeting working capital requirements[140]. Compliance and Governance - The Audit Committee reviewed the unaudited consolidated interim results for the six months ended June 30, 2023, with no disagreements noted regarding accounting treatments[97]. - The company has complied with the corporate governance code provisions throughout the six months ended June 30, 2023[93]. - The company has adopted the Model Code for Securities Transactions and confirmed compliance by all directors and relevant employees during the reporting period[96]. - The financial statements were prepared in accordance with Hong Kong Accounting Standard 34 "Interim Financial Reporting"[114].
朸浚国际(01355) - 2023 - 中期财报