Financial Performance - Total interest income for the six months ended 31 December 2023 was HK$6,051,000, an increase of 29.1% compared to HK$4,690,000 for the same period in 2022[15]. - Total finance costs increased significantly to HK$27,252,000 for the six months ended 31 December 2023, compared to HK$11,656,000 in the previous year, representing a rise of 133.5%[15]. - The net foreign exchange loss for the period was HK$12,020,000, indicating a significant impact on financial performance[10]. - The loss attributable to the owners of the Company for the six months ended 31 December 2023 was HK$36,131,000, compared to a loss of HK$6,407,000 for the same period in 2022, indicating a significant increase in losses[43]. - Basic and diluted loss per share for the six months ended 31 December 2023 was (2.64) HK cents, compared to (0.47) HK cents for the same period in 2022, reflecting a deterioration in financial performance[47]. - Revenue for the six months ended 31 December 2023 was HK$2,352,000, a decrease of 41.7% compared to HK$4,027,000 for the same period in 2022[88]. - The company reported a loss of HK$316,000 for the period, compared to a profit of HK$3,311,000 in the previous year[88]. - Total comprehensive loss for the period was HK$316,000, compared to a comprehensive profit of HK$3,311,000 in the previous year[88]. Taxation and Legal Matters - The income tax credit for the six months ended 31 December 2023 was HK$674,000, compared to HK$255,000 for the same period in 2022, showing an increase of 164.7%[24]. - The company's operations in the Philippines had no assessable profits, resulting in no provision for taxation in the financial statements for the current period[31]. - The Group's subsidiary in Macau is subject to a profits tax rate of 12%, but no provision for taxation was made as there were no assessable profits during the current period[37]. - A tax dispute involving Marina Square Properties, Inc. and the Bureau of Internal Revenue in the Philippines pertains to alleged deficiency taxes amounting to approximately Php3,676,000,000 (approximately HK$518,181,000) for the years 2008, 2012, 2014, and 2015[37]. - On 4 May 2022, MSPI received a formal letter of demand for 2018, claiming a tax deficiency of approximately Php767,633,000 (approximately HK$108,196,000)[37]. - MSPI filed an administrative protest with the BIR for the 2018 tax demand on 3 June 2022, and the case is ongoing[37]. - On 13 June 2023, MSPI received a preliminary assessment notice for alleged deficiency taxes for 2019 amounting to approximately Php537,118,000 (approximately HK$75,706,000)[38]. - MSPI submitted supporting documents for reinvestigation of the 2019 tax demand on 10 November 2023, with a 180-day period for resolution[38]. - The estimated contingent liabilities for alleged deficiency taxes for 2018 and 2019 total approximately Php1,304,800,000 (approximately HK$183,902,000) as of 31 December 2023[38]. Assets and Liabilities - The total depreciation expense for the period was HK$30,813,000, which includes depreciation of property, plant, and equipment[21]. - The Group acquired property, plant, and equipment amounting to approximately HK$56,059,000 during the six months ended 31 December 2023, a substantial increase from HK$2,591,000 in the same period of 2022[55]. - The fair value of the Group's investment properties as of 31 December 2023 was approximately HK$991,000,000, up from HK$989,000,000 as of 30 June 2023, indicating stability in property valuations[67]. - Properties valued at approximately HK$106,000,000 are pledged to a bank to secure loans and general banking facilities granted to the Group[56]. - The Group's loan receivables as of December 31, 2023, include a principal loan of Php338,000,000 (equivalent to HK$47,676,000) to Harbor View Properties and Holdings, Inc., with an interest rate of 3.5% per annum[80]. - The Group's interest in associates decreased from HK$42,479,000 as of June 30, 2023, to HK$41,132,000 as of December 31, 2023[82]. - The Group holds a 40% stake in Harbor View Properties and Holdings, Inc., which operates as a property developer in the Philippines[84]. - The fair value measurement of investment properties is classified as Level 3 in the fair value hierarchy, indicating significant unobservable inputs[75]. - The Group's average credit period for customers ranges from 0 to 90 days, with no collateral held as security[115]. - Trade receivables increased to HK$18,369,000 as of December 31, 2023, up from HK$17,293,000 as of June 30, 2023[113]. - The provision for expected credit losses remained relatively stable at HK$2,963,000 as of December 31, 2023, compared to HK$2,953,000 as of June 30, 2023[113]. - The net trade receivables after provision stood at HK$15,406,000 as of December 31, 2023, compared to HK$14,340,000 as of June 30, 2023[113]. - Non-current assets decreased slightly to HK$87,404,000 from HK$88,161,000, a decline of 0.9%[88]. - Net assets attributable to owners of the equity decreased to HK$38,214,000 from HK$38,737,000 as of 30 June 2023, reflecting a decline of 1.4%[88]. - The group's share of the net assets of the associate was HK$15,286,000, down from HK$15,495,000, indicating a decrease of 1.4%[88]. Financial Management and Strategy - The Group did not propose an interim dividend for the six months ended 31 December 2023, consistent with the previous year[48]. - The revenue growth rate for the period was reported at 3.5%, reflecting modest growth in the Group's operations[61]. - No impairment loss was recognized for the Hotel Operation CGU for the six months ended 31 December 2023, similar to the previous year, indicating stable asset performance[58]. - The company completed a capital reduction on August 11, 2023, reducing the par value of each issued share from HK$1.00 to HK$0.01, resulting in a transfer of HK$1,355,465,000 from share capital to accumulated losses[134]. - The number of issued and fully paid shares remained at 1,369,157,235 as of December 31, 2023, following the capital reduction[134]. - The authorized share capital was adjusted to 200,000,000,000 shares after the share subdivision[134]. - The interim report for the six months ended December 31, 2023, indicates ongoing efforts in financial restructuring and capital management[138]. - The company is focusing on improving its financial health by addressing accumulated losses through capital adjustments[134]. - Future strategies may include enhancing collection processes to reduce overdue receivables and improve cash flow[129]. - The company is exploring market expansion opportunities as part of its growth strategy[138]. Debt and Financing - On 30 March 2023, Fortune Growth issued 6 new promissory notes (the "2023 PNs") with a principal amount of HK$69,385,381 each, totaling HK$416,312,285, representing the principal and accrued interest of the 2022 PNs[143]. - The 2023 PNs carry interest at a fixed rate of 6% per annum, accruing on the outstanding principal amount from the issue date until full repayment[143]. - As of 31 December 2023, a banking facility of Php4,320,000,000 (approximately HK$608,896,000) has been utilized, with interest charged at PHP BVAL Reference Rate +2% per annum[146][147]. - The bank loan and facility are secured by the Group's properties, including approximately HK$106,000,000 in properties, plant and equipment, and HK$991,000,000 in investment properties[148]. - The total non-current bank borrowings as of 31 December 2023 amount to HK$608,896,000[146]. - The 2023 PNs are due and payable on the business day immediately preceding the first anniversary of their issue date[143]. - Fortune Growth has not defaulted on the repayment of the 2022 PNs prior to the exchange for the 2023 PNs[143]. - The promissory notes are denominated in HK$, which is the foreign currency of the relevant group entity[144]. - The total amount of the 2023 PNs includes both principal and accrued interest from the previous notes[143]. - As of December 31, 2023, total non-current bank loans scheduled for repayment include approximately HK$106,000,000 for properties, HK$991,000,000 for investment properties, and HK$39,000,000 for certain bank balances[154]. Investments and Fair Value - The fair value of the convertible bond's conversion derivatives as of December 31, 2023 is determined using a binomial option pricing model, with an expected volatility of 69.47% and a risk-free rate of 4.46%[160]. - The total capital expenditure contracted but not yet accounted for at the end of the reporting period is HK$138,806,000, a significant increase from HK$41,984,000 as of June 30, 2023[167]. - Interest income from associates for the six months ended December 31, 2023, was HK$1,109,000, compared to HK$1,073,000 for the same period in 2022[170]. - Lease payments to associates amounted to HK$(2,329,000) for the six months ended December 31, 2023, down from HK$(2,846,000) in the previous year[170]. - The amortized interest for the convertible bond during the period was HK$2,430,000, reflecting an increase from the previous balance[164]. - The total financial liability at amortized cost for the convertible bond as of December 31, 2023, is HK$49,485,000, while the financial liability at fair value through profit and loss is HK$1,463,000[164]. - The fair value adjustments for the convertible bond during the period resulted in a decrease of HK$3,130,000[164]. - Financial assets at fair value through profit or loss decreased from HK$5,302,000 to HK$5,129,000, a decline of approximately 3.26%[182]. - Financial assets at amortised costs increased significantly from HK$584,121,000 to HK$1,135,224,000, representing a growth of approximately 94.3%[182]. - Financial liabilities at fair value through profit or loss decreased from HK$4,593,000 to HK$1,463,000, a reduction of approximately 68.3%[182]. - Financial liabilities at amortised cost rose from HK$539,314,000 to HK$1,155,989,000, an increase of approximately 114.4%[182]. - Total financial assets increased from HK$589,423,000 to HK$1,140,353,000, reflecting a growth of approximately 93.4%[182]. - Total financial liabilities increased from HK$543,907,000 to HK$1,157,452,000, indicating a rise of approximately 112.5%[182]. - The fair value measurement hierarchy includes Level 1, Level 2, and Level 3 inputs for financial instruments[185]. - The company continues to engage in significant transactions with associates, including lease payments related to land and employee accommodations in the Philippines[179].
国际娱乐(一万)(01009) - 2024 - 中期财报