Financial Performance - The group's hotel operating revenue was approximately HKD 9.3 million, a significant decrease of about 58.5% compared to HKD 22.4 million in the same period last year[11]. - The loss attributable to the owners of the company was approximately HKD 24.9 million, compared to a loss of about HKD 20.5 million in the previous year[12]. - The basic loss per share was approximately HKD 0.712, compared to HKD 0.587 in the previous year[13]. - Revenue for the six months ended June 30, 2022, was HKD 9,281,393, a decrease of 58.6% compared to HKD 22,368,247 for the same period in 2021[15]. - Gross profit for the six months ended June 30, 2022, was HKD 2,340,351, down 78.7% from HKD 11,019,002 in the previous year[15]. - The net loss for the six months ended June 30, 2022, was HKD 24,891,250, compared to a net loss of HKD 20,546,502 for the same period in 2021, representing a 20.5% increase in losses[17]. - Total comprehensive loss for the six months ended June 30, 2022, was HKD 38,593,147, compared to HKD 35,941,587 in the previous year, indicating a 7.4% increase in total losses[17]. - Basic and diluted loss per share for the six months ended June 30, 2022, was HKD 0.712, compared to HKD 0.587 for the same period in 2021, reflecting a 21.3% increase in loss per share[17]. - The group reported a loss before tax of HKD 24,854,605 for the six months ended June 30, 2022, compared to a loss of HKD 20,499,713 for the same period in 2021, indicating an increase in losses of approximately 11.5%[45]. Assets and Liabilities - Non-current assets decreased to HKD 565,672,843 as of June 30, 2022, from HKD 596,731,059 as of December 31, 2021, a decline of 5.2%[19]. - Current liabilities increased to HKD 398,473,383 as of June 30, 2022, compared to HKD 318,065,056 as of December 31, 2021, representing a 25.3% increase[20]. - Cash and bank balances decreased significantly to HKD 6,721,851 as of June 30, 2022, from HKD 26,360,451 as of December 31, 2021, a decline of 74.5%[19]. - The total equity attributable to the owners of the company decreased to HKD 179,589,110 as of June 30, 2022, from HKD 218,041,239 as of December 31, 2021, a decrease of 17.6%[20]. - Trade receivables as of June 30, 2022, were HKD 1,128,795, significantly lower than HKD 3,824,756 as of December 31, 2021, indicating a decrease of about 70.5%[49]. - Trade payables increased to HKD 873,049 as of June 30, 2022, compared to HKD 726,522 as of December 31, 2021, representing an increase of approximately 20.2%[53]. - As of June 30, 2022, the group's net current liabilities amounted to approximately HKD 338.9 million, including cash and bank balances of about HKD 6.7 million[69]. - The debt-to-equity ratio as of June 30, 2022, was approximately 189%, an increase from 149% as of December 31, 2021[70]. - The total outstanding principal of convertible bonds was maintained at approximately HKD 58.0 million as of June 30, 2022, unchanged from December 31, 2021[70]. Cash Flow and Financing - The net cash flow from operating activities for the six months ended June 30, 2022, was a cash outflow of HKD 10,201,048, compared to a cash inflow of HKD 8,182,612 in the same period of 2021[27]. - The total cash and cash equivalents at the end of the period were HKD 5,196,684, down from HKD 29,470,303 at the end of June 30, 2021, reflecting a decrease of approximately 82.4%[27]. - The company’s financing activities resulted in a cash outflow of HKD 10,114,749 for the six months ended June 30, 2022, compared to an outflow of HKD 28,920,356 in the same period of 2021[27]. - The company is seeking external debt financing to avoid cash losses for at least 12 months from January 1, 2022[73]. - The company has taken measures to alleviate liquidity pressure, including discussions with banks and contractors for repayment extensions[73]. - The company is negotiating a moderate repayment schedule with convertible bondholders for the HKD 25.3 million principal amount due on November 30, 2020, which has not been redeemed[85]. Operational Highlights - The company plans to focus on expanding its hotel operations in key markets, particularly in Singapore and Japan, to drive future revenue growth[33]. - The company is actively exploring new strategies for market expansion and potential acquisitions to enhance its portfolio and operational efficiency[33]. - Employee costs for the six months ended June 30, 2022, amounted to HKD 6,526,497, a decrease of 37.5% compared to HKD 10,424,146 for the same period in 2021[38]. - Depreciation of property, plant, and equipment was HKD 6,215,735 for the six months ended June 30, 2022, down from HKD 6,628,453 in the previous year, reflecting a reduction of approximately 6.2%[38]. - The company reported a significant decrease in hotel inventory, which fell to HKD 235,582 as of June 30, 2022, from HKD 576,388 as of December 31, 2021, a decline of 59.1%[19]. - The company temporarily closed its Japanese onsen hotel in May 2022 due to ongoing COVID-19 challenges and financial constraints[61]. - The development of the resort hotel in Bintan, Indonesia, has been postponed until the end of 2023 due to financial resource constraints and COVID-19 impacts[66]. - The company recorded a loss of approximately HKD 0.4 million from bad debt asset management, an improvement from a loss of HKD 3.9 million in the previous year[67]. Market Conditions and Future Outlook - The impact of COVID-19 continues to pose challenges, affecting financial performance, including hotel room rates and occupancy, with potential further negative impacts anticipated[55]. - The group maintains strict control over its receivables, with management regularly reviewing overdue balances to mitigate credit risk[49]. - The group has not recognized any tax provisions in Hong Kong due to no taxable profits generated, while Singapore corporate tax was estimated at 17% on taxable profits[40]. - The group maintains an optimistic outlook for future business growth, focusing on attracting new guests and developing the Bintan land to contribute to revenue and enhance asset returns and corporate value[86]. - Since the outbreak of COVID-19 in January 2020, the group's hotel business in Asia has been impacted, but the board believes that the adverse market conditions will gradually ease with global vaccination efforts, without affecting the long-term hotel business[86]. - The group plans to leverage opportunities from the "Belt and Road" initiative and continue identifying potential acquisition opportunities in China to broaden revenue sources[86]. - The group will adopt a prudent strategy when seeking potential acquisitions to maximize shareholder value[86]. - The group aims to expand its business footprint in Greater China and other Asian countries to capitalize on growth opportunities in the tourism sector[86]. Shareholder Information - As of June 30, 2022, the total number of issued shares of the company was 3,490,000,000 shares[105]. - CMI Hong Kong holds 76,600,000 shares, representing approximately 2.19% of the company's total issued share capital[105]. - Wu Mingzhe holds 698,000,000 shares, accounting for 20.00% of the company's total issued share capital[105]. - CMI Hong Kong is wholly owned by Zhongmin Investment Asia, which in turn is wholly owned by China Minsheng Investment[106]. - The company has disclosed that as of June 30, 2022, there are no other persons known to the board holding interests in the company's shares or related securities that require disclosure[109].
华星控股(08237) - 2022 - 中期财报