Financial Performance - The hotel operating revenue for the group was approximately HKD 42.2 million, an increase of about 111.50% compared to HKD 19.9 million in the same period last year[6]. - The loss attributable to the owners of the company was approximately HKD 69.7 million, compared to HKD 31.6 million in the previous year[6]. - The basic loss per share was approximately HKD 1.715, compared to HKD 0.907 in the same period last year[9]. - The total comprehensive expenses for the nine months ended September 30, 2023, amounted to HKD 70.2 million, compared to HKD 49.6 million in the previous year[9]. - The group reported a gross profit of HKD 28.8 million for the nine months ended September 30, 2023, compared to HKD 8.7 million in the previous year[7]. - Administrative expenses for the nine months were HKD 69.5 million, significantly higher than HKD 24.9 million in the previous year[7]. - The group incurred financial costs of HKD 26.1 million for the nine months, compared to HKD 16.7 million in the previous year[7]. - Other income, gains, and losses for the nine months were HKD 932.5 million, down from HKD 2.1 million in the previous year[7]. - The group experienced a foreign exchange loss of HKD 444.1 million for the nine months, compared to a loss of HKD 22.6 million in the previous year[7]. - The total comprehensive loss for the nine months ended September 30, 2023, was HKD 70,173,058, compared to a loss of HKD 49,410,558 in the same period of 2022, indicating a deterioration of approximately 42%[13]. - The company reported a loss attributable to owners of the company of HKD 69,715,774 for the nine months ended September 30, 2023, compared to a loss of HKD 31,646,004 in the same period of 2022, which is an increase of about 120%[13]. - The company’s total equity as of September 30, 2023, was HKD 83,242,756, compared to HKD 171,072,414 as of September 30, 2022, reflecting a decrease of about 51.3%[13]. Revenue Sources - The company’s revenue for the three months ended September 30, 2023, was HKD 16.1 million, compared to HKD 10.7 million in the previous year[7]. - Hotel room revenue for the third quarter of 2023 was HKD 13,704,118, compared to HKD 8,414,561 in the same quarter of 2022, reflecting a growth of about 62.5%[17]. - The rental income from hotel properties for the nine months ended September 30, 2023, was HKD 4,056,718, up from HKD 3,716,393 in the same period of 2022, showing an increase of approximately 9.2%[17]. - Room revenue for the review period was approximately HKD 35.1 million, accounting for about 83.2% of total hotel operating revenue, compared to 67.0% in 2022[29]. - Revenue from food and beverage was approximately HKD 2.6 million, representing 6.3% of total hotel operating revenue, down from 10.0% in 2022[31]. - Rental income from hotel tenants was approximately HKD 4.0 million, accounting for 9.6% of hotel business total revenue, up from 3.7% in 2022[31]. Operational Developments - The company plans to continue expanding its hotel operations and exploring new markets to enhance revenue streams in the upcoming quarters[12]. - The company is focusing on new product development and technology enhancements to improve operational efficiency and customer experience in the hospitality sector[12]. - The company reopened its Japanese onsen hotel in Q3 2023 after a temporary closure due to COVID-19, aiming to enhance operational cash flow[29]. - The company anticipates completing its resort project within 18 months, contingent on sufficient funding and the recovery of the tourism industry[32]. - The company is evaluating the potential sustainability of the Bintan resort development project to cater to the increasing demand for luxury accommodations[43]. - The group successfully signed contracts with local authorities to use part of the hotel as isolation facilities, providing a stable income source during the review period[25]. - The group has paused the development of a resort hotel in Bintan, Indonesia, since early 2020 due to the COVID-19 pandemic[25]. Financial Management - The company is actively seeking refinancing to stabilize its financial position amid current liquidity challenges[43]. - The company is negotiating with contractors to extend repayment terms to alleviate liquidity pressure and improve cash flow[36]. - The company has entered into a deferral agreement with convertible bondholders regarding overdue payments, with the deferral period ending on December 31, 2023[37]. - The company issued zero-coupon convertible bonds with a principal amount of HKD 25.128 million, which could lead to the issuance of approximately 698 million shares, representing about 20% of the existing share capital[38]. - The company completed the conversion of HKD 25,128,000 of 2020 convertible bonds into 200,000,000 shares at a conversion price of HKD 0.036 per share[40]. - The company secured a financing agreement for SGD 55 million at an annual fixed interest rate of 11% to support its operations[55]. - A loan of SGD 55 million was provided to HHI at a fixed annual interest rate of 11%, with the funds used to repay outstanding debts and support working capital[61]. Shareholder Information - As of September 30, 2023, Ace Kingdom holds 2,610,680,001 shares, representing approximately 62.34% of the company's equity[72]. - China Minmetals Investment Co., Ltd. owns 690,000,000 shares, accounting for 16.48% of the total equity[74]. - The total number of issued shares of the company is 4,188,000,000[75]. - CMI Hong Kong holds convertible bonds with a principal amount of HKD 25,278,000, which corresponds to 76,600,000 shares, representing about 1.83% of the total issued share capital[75]. - Boomerang Investment Limited, Guo Yiche, and Billion Supreme Holdings Limited collectively own 62.34% of the company through Ace Kingdom[72]. - The ownership structure indicates significant control by a few major shareholders, with Ace Kingdom being the largest[72]. - The company has a clear structure of beneficial ownership, with multiple layers of control among its major shareholders[74]. - The board of directors is aware of no other individuals holding significant stakes in the company as of September 30, 2023[76]. - The company continues to comply with the Securities and Futures Ordinance regarding the disclosure of shareholdings[76]. Compliance and Regulatory Matters - The company must comply with the GEM listing rules and achieve all resumption guidance before its shares can resume trading[64]. - The company has until April 2, 2024, to remedy the issues that led to the suspension of trading, or it may face delisting[64]. - The company was appointed a receiver and manager for its assets, including the Hang Huo Investment Pte Ltd. properties[60]. - The company is required to publish all outstanding financial performance as per GEM listing rules[65]. - The company received additional resumption guidance to restore the minimum public float as per GEM listing rules[66]. - The company will issue further announcements to keep shareholders and the public informed of progress[67]. - The company has received temporary exemptions from the GEM listing rules regarding public float requirements to ensure compliance[53]. Future Outlook - The company is cautiously optimistic about future prospects, anticipating a strong recovery in the tourism industry as global vaccination efforts continue and travel restrictions ease[41]. - The company aims to enhance property value and strategically invest in special assets and restructuring opportunities, contingent on timely refinancing[44]. - The company is excited about future opportunities, including the potential development of the Bintan resort, while focusing on becoming a leading hotel service provider in the region[44].
华星控股(08237) - 2023 Q3 - 季度财报