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LET GROUP(01383) - 2022 - 中期财报
LET GROUPLET GROUP(HK:01383)2022-09-29 11:07

Financial Performance - For the six months ended June 30, 2022, LET Group Holdings Limited reported a loss attributable to equity holders of HKD 253.0 million, a significant decrease from a profit of HKD 384.3 million in the same period of 2021[34]. - The adjusted EBITDA from continuing operations for the first half of 2022 was approximately HKD 50.6 million, compared to a negative HKD 8.1 million for the same period in 2021[34]. - Total revenue from continuing operations for the first half of 2022 was approximately HKD 190.4 million, an increase of about HKD 45.8 million or 31.7% compared to HKD 144.6 million in the first half of 2021[40]. - The loss from discontinued operations for the first half of 2022 was approximately HKD 52.7 million, compared to a profit of HKD 114.4 million in the same period of 2021[35]. - The company recognized a net foreign exchange gain of approximately HKD 81.9 million in the first half of 2022, compared to a net gain of HKD 10.0 million in the same period of 2021[46]. - The company reported an impairment loss of approximately HKD 287.1 million related to the fair value reassessment of the Crystal Tiger Palace's property, plant, and equipment as of December 31, 2021[77]. - The company recorded a tax credit of approximately HKD 7.0 million in the first half of 2022 due to excess provisions for Philippine withholding tax from prior periods[100]. - The company recorded a net loss of approximately HKD 234,014,000 for the six months ended June 30, 2022[200]. - The operating cash outflow for the same period was approximately HKD 65,752,000[200]. Revenue and Gaming Operations - The total gaming revenue in Manila has recovered to approximately 79% of the levels reported in the same period of 2019[28]. - Revenue from gaming and hotel operations in Russia accounted for 93.4% of the group's total revenue for continuing operations in the first half of 2022, up from 89.5% in the same period of 2021[101]. - Net gaming revenue from the Crystal Tiger Palace reached approximately 168 million HKD in the first half of 2022, an increase of about 46 million HKD or 37.7% year-on-year[142]. - Net gaming revenue rose by 54.5% from approximately HK$55 million in the first half of 2021 to approximately HK$85 million in the first half of 2022[146]. - The total amount of gaming bets in the mid-market increased by 49.4% from HK$237 million in the first half of 2021 to HK$354 million in the first half of 2022[147]. - The total amount of slot machine bets increased by 39.5% from approximately HK$1,563 million in the first half of 2021 to approximately HK$2,181 million in the first half of 2022[147]. - The net gaming revenue from slot machines increased by 22.1% from approximately HK$68 million in the first half of 2021 to approximately HK$83 million in the first half of 2022[147]. Project Developments - The Westside City project is the first project built from scratch by the company, aimed at becoming a stylish integrated resort in the Philippines[28]. - The company is developing a five-star hotel and entertainment complex in Manila, Philippines, with operations expected to commence in 2024[41]. - The group has completed the foundation work for the Westside City project, with multiple cranes now operational for further construction[170]. - The Westside City project will feature approximately 300 gaming tables, over 1,300 slot machines, and more than 450 five-star hotel rooms upon completion[171]. - The first phase of the Hoi An South Integrated Resort, including a golf club and hotel, is now operational[172]. - The group is developing the second phase of the Hoi An South Integrated Resort, with land development currently underway[173]. - The group plans to open the second phase of the Crystal Tiger Palace no earlier than 2025 due to ongoing adverse effects from the pandemic and economic uncertainty[169]. Market Conditions and Strategic Focus - The company is closely monitoring market conditions, including geopolitical restructuring and supply chain disruptions, which may impact its financial situation and operations[29]. - The company aims to establish a strong presence in the Asian entertainment market, leveraging the potential of Manila as a key entertainment hub[28]. - The company is adapting to the "living with the virus" strategy in Vietnam, which has positively impacted business performance[30]. - The group remains cautiously optimistic about its long-term strategic positioning in the Asian entertainment sector despite ongoing challenges in the gaming industry[175]. - The group views the Philippines as the country with the lowest international business risk and the highest potential returns among its investments[183]. - The global economic recovery remains uncertain, with potential risks including ongoing pandemic waves, corporate bankruptcies, and financial pressures, which could hinder recovery efforts[78]. Employment and Costs - The group employed approximately 1,116 employees as of June 30, 2022, an increase from 1,103 employees as of December 31, 2021, with total employee costs for the six months amounting to approximately HKD 78.3 million, down from HKD 112.5 million for the same period in 2021[122]. - Financing costs for the first half of 2022 were approximately HKD 111.0 million, compared to HKD 123.2 million in the same period of 2021[39]. - The group's financing costs in the first half of 2022 slightly decreased due to interest capitalization related to the construction of a hotel and entertainment complex[99]. Impairments and Losses - The expected credit loss for loans and receivables to joint ventures increased significantly, shifting from a 12-month expected credit loss to a lifetime expected credit loss as of December 31, 2021, and June 30, 2022[72]. - As of December 31, 2021, the company recognized impairment losses of approximately HKD 119.7 million, HKD 194.2 million, and HKD 22.9 million for loans and receivables to joint ventures[73]. - For the six months ended June 30, 2022, the company recognized impairment losses of approximately HKD 18.2 million, HKD 9.8 million, and HKD 19.3 million for loans and receivables to joint ventures, compared to zero for the same period in 2021[74]. Asset Management and Sales - The group plans to continue selling assets to focus on the most profitable business segments, including potential land sales in Japan[182]. - The group completed the sale of its entire equity interest in certain subsidiaries in July 2022, which will no longer be consolidated in the group's financial statements[98]. - The group completed the sale of its wholly-owned subsidiary on July 22, 2022, for a total cash consideration of HKD 1, with conditions of the sale agreement being met[117]. Economic Indicators - In the Philippines, the GDP grew by 8.2% in Q1 2022, and the total gaming revenue of licensed casinos reached approximately 63.9 billion pesos (about 1.15 billion USD), recovering to nearly 79% of pre-pandemic levels[164]. - Vietnam's GDP grew by 6.4% in the first half of 2022, with only 602,000 foreign visitors entering the country, which is 7.1% of the total in 2019[165].