国浩集团(00053) - 2023 - 年度业绩

Financial Highlights The Group achieved significant financial growth for the year ended June 30, 2023, with turnover and revenue increasing by 40% and 31% respectively, and profit attributable to equity holders surging by 73% to HKD 3.4 billion, alongside corresponding increases in EPS and dividends per share FY2023 Financial Highlights | Metric | 2023 (HKD Million) | 2022 (HKD Million) | Increase / (Decrease) | | :----------------------------------------- | :----------------- | :----------------- | :-------------------- | | Turnover | 22,023 | 15,758 | 40% | | Revenue | 19,508 | 14,905 | 31% | | Operating Profit | 1,719 | 1,153 | 49% | | Profit Attributable to Equity Holders of the Company | 3,400 | 1,960 | 73% | | Earnings Per Share (HKD) | 10.46 | 6.03 | 73% | | Dividend Per Share (HKD) | | | | | - Interim | 0.50 | 0.50 | 0% | | - Proposed Final | 2.50 | 1.50 | 67% | | - Total | 3.00 | 2.00 | 50% | | Equity Per Share Attributable to Equity Holders of the Company | 180.33 | 175.41 | 3% | - The Group's financial performance for the year ended June 30, 2023, showed significant growth, with turnover and revenue increasing by 40% and 31% respectively[2] - Profit attributable to equity holders substantially increased by 73% to HKD 3.4 billion, with corresponding improvements in earnings per share and dividends per share[2] Results The Group achieved significant annual profit growth in FY2023, driven by strong turnover and revenue performance and a substantial increase in profit attributable to equity holders, with total comprehensive income turning positive despite net losses from exchange differences and fair value changes in equity investments Consolidated Statement of Profit or Loss The Group achieved substantial growth in both turnover and revenue in FY2023, with significant increases in operating profit and profit attributable to equity holders, and basic and diluted earnings per share reaching HKD 10.46 Key Data from FY2023 Consolidated Statement of Profit or Loss | Metric | 2023 (HKD Thousand) | 2022 (HKD Thousand) | | :----------------------------------------- | :------------------ | :------------------ | | Turnover | 22,022,812 | 15,758,258 | | Revenue | 19,508,239 | 14,904,912 | | Operating Profit | 1,719,358 | 1,152,767 | | Profit Before Tax for the Year | 3,830,314 | 3,629,982 | | Profit for the Year | 3,667,004 | 3,300,521 | | Profit Attributable to Equity Holders of the Company | 3,400,274 | 1,960,186 | | Basic Earnings Per Share (HKD) | 10.46 | 6.03 | | Diluted Earnings Per Share (HKD) | 10.46 | 6.03 | - The Group's turnover and revenue both saw substantial increases in FY2023, alongside significant growth in operating profit and profit attributable to equity holders[4] - Basic and diluted earnings per share reached HKD 10.46 for the year[4] Consolidated Statement of Comprehensive Income The Group's profit for the year increased in FY2023, but other comprehensive income recorded a net loss due to fair value changes in equity investments and exchange differences on translating foreign operations, resulting in total comprehensive income of HKD 2.700 billion, a positive shift from the prior year Key Data from FY2023 Consolidated Statement of Comprehensive Income | Metric | 2023 (HKD Thousand) | 2022 (HKD Thousand) | | :--------------------------------------------------------- | :------------------ | :------------------ | | Profit for the Year | 3,667,004 | 3,300,521 | | Other Comprehensive Income for the Year, Net of Tax | (967,394) | (4,888,533) | | Total Comprehensive Income for the Year | 2,699,610 | (1,588,012) | | Total Comprehensive Income for the Year Attributable to Equity Holders of the Company | 2,401,129 | (1,924,392) | - The Group's profit for the year increased, but other comprehensive income recorded a net loss due to fair value changes in equity investments and exchange differences on translating foreign operations[5][6] - Total comprehensive income for the year was HKD 2.69961 billion, representing a positive turnaround from the prior year's negative figure[5][6] Consolidated Statement of Financial Position As of June 30, 2023, the Group's total assets and total equity both increased, with stable non-current and current asset structures and a significant rise in net current assets, indicating a robust financial position Key Data from FY2023 Consolidated Statement of Financial Position | Metric | 2023 (HKD Thousand) | 2022 (HKD Thousand) | | :----------------------------------------- | :------------------ | :------------------ | | Non-current Assets | 84,909,612 | 82,640,996 | | Current Assets | 47,714,289 | 47,605,090 | | Current Liabilities | 15,614,115 | 18,600,597 | | Net Current Assets | 32,100,174 | 29,004,493 | | Total Assets Less Current Liabilities | 117,009,786 | 111,645,489 | | Non-current Liabilities | 39,675,393 | 36,317,154 | | Net Assets | 77,334,393 | 75,328,335 | | Total Equity Attributable to Equity Holders of the Company | 59,338,243 | 57,717,594 | | Total Equity | 77,334,393 | 75,328,335 | - As of June 30, 2023, the Group's total assets and total equity both increased, with net current assets showing a significant rise, reflecting a strong financial position[7] Notes This section details the Group's accounting policies, financial statement preparation basis, segment performance, revenue composition, profit before tax breakdown, taxation, dividends, earnings per share, and trade and other receivables/payables, providing supplementary information for understanding the Group's financial position and operating results 1. Accounting Policies and Basis of Preparation The Group's financial statements comply with Hong Kong Financial Reporting Standards and Companies Ordinance disclosure requirements, prepared on a historical cost basis with revaluation or fair value measurement for investment properties and certain financial instruments, involving key management judgments, estimates, and assumptions (a) Statement of Compliance - Financial statements are prepared in accordance with all applicable Hong Kong Financial Reporting Standards and the disclosure requirements of the Hong Kong Companies Ordinance, and comply with the applicable disclosure provisions of the Rules Governing the Listing of Securities on The Stock Exchange of Hong Kong Limited[8] (b) Basis of Preparation of Financial Statements - Financial statements are prepared on a historical cost basis, except for investment properties measured at revalued amounts and certain financial instruments measured at fair value[9] - Management is required to make judgments, estimates, and assumptions in preparing the financial statements, and actual results may differ from these estimates[9] (c) HKD Amounts - The Group's consolidated financial statements are presented in USD, with HKD figures in the financial highlights and results translated at the applicable exchange rate at the financial year-end solely for presentation purposes[10] 2. Amendments to Accounting Policies The Group adopted amendments to Hong Kong Financial Reporting Standards issued by the Hong Kong Institute of Certified Public Accountants during the current accounting period, with no significant impact on the Group's current or prior period results and financial position - The Group has adopted amendments to HKAS 16 (Revised) and HKAS 37 (Revised), which had no significant impact on the results and financial position for the current or prior periods[11] 3. Segment Reporting The Group operates four main reportable segments: Principal Investments, Property Development and Investment, Hotel and Leisure, and Financial Services, each independently managed; FY2023 saw significant changes in segment revenue and profit before tax, with Property Development and Investment and Hotel and Leisure being the largest contributors Overview of Segment Operations - The Group has four main reportable segments: Principal Investments (debt, equity, direct investments, and treasury operations), Property Development and Investment (residential and commercial property development, rental income), Hotel and Leisure (hotel ownership/management, gaming and leisure operations), and Financial Services (commercial and retail banking, insurance, fund management, etc)[12] - Other segments include investments in Bass Strait oil and gas production concessions and Manuka Health health product manufacturing, promotion, and distribution, which do not meet the quantitative thresholds for reportable segments[12] (a) Reported Segment Revenue and Profit or Loss FY2023 Reported Segment Turnover and Profit/(Loss) Before Tax | Segment | Turnover (HKD Thousand) | Profit/(Loss) Before Tax (HKD Thousand) | | :------------------------- | :---------------------- | :-------------------------------------- | | Principal Investments | 3,555,946 | 1,553,503 | | Property Development and Investment | 8,691,033 | 1,503,234 | | Hotel and Leisure | 9,188,564 | (786,178) | | Financial Services | - | 1,231,968 | | Others | 587,269 | 327,787 | | Total | 22,022,812 | 3,830,314 | - In FY2023, Principal Investments and Property Development and Investment segments were significant contributors to profit before tax, while the Hotel and Leisure segment recorded a loss before tax[15][16] FY2022 Reported Segment Turnover and Profit/(Loss) Before Tax | Segment | Turnover (HKD Thousand) | Profit/(Loss) Before Tax (HKD Thousand) | | :------------------------- | :---------------------- | :-------------------------------------- | | Principal Investments | 1,469,276 | (430,662) | | Property Development and Investment | 5,578,482 | 3,207,299 | | Hotel and Leisure | 8,168,886 | 143,823 | | Financial Services | - | 1,151,449 | | Others | 541,614 | (441,927) | | Total | 15,758,258 | 3,629,982 | - In FY2022, Property Development and Investment and Financial Services were the primary profit drivers, with Principal Investments and Others segments reporting losses before tax[17][18] (b) Reconciliation of Reported Segment Revenue, Finance Costs and Interest Income FY2023 Reconciliation of Segment Revenue, Finance Costs and Interest Income | Metric | 2023 (HKD Thousand) | 2022 (HKD Thousand) | | :--------------------------------- | :------------------ | :------------------ | | Reported Segment Revenue | 19,591,982 | 14,954,806 | | Elimination of Inter-segment Revenue | (83,743) | (49,894) | | Consolidated Revenue | 19,508,239 | 14,904,912 | | Reported Finance Costs | 1,605,675 | 1,161,012 | | Elimination of Inter-segment Finance Costs | (59,922) | (24,570) | | Consolidated Finance Costs | 1,545,753 | 1,136,442 | | Reported Interest Income | 454,135 | 173,713 | | Elimination of Inter-segment Interest Income | (59,922) | (24,571) | | Consolidated Interest Income | 394,213 | 149,142 | - The reconciliation shows the adjustments for inter-segment transactions to arrive at the consolidated revenue, finance costs, and interest income for the Group[19] 4. Turnover and Revenue The Group's FY2023 turnover and revenue both achieved significant growth, primarily driven by strong property sales, hotel and leisure operations, and increased interest and dividend income - The company's principal activities include investment holding and investment management, with subsidiaries primarily engaged in principal investments, property development and investment, and hotel and leisure operations[20] FY2023 Turnover and Revenue by Key Category | Category | 2023 (HKD Thousand) | 2022 (HKD Thousand) | | :------------------------------------- | :------------------ | :------------------ | | Revenue from Property Sales | 7,495,753 | 4,666,887 | | Revenue from Hotel and Leisure | 9,173,394 | 8,159,848 | | Interest Income | 394,213 | 149,142 | | Dividend Income | 820,719 | 584,919 | | Rental Income from Properties | 962,222 | 727,856 | | Revenue from Sales of Goods | 587,198 | 541,614 | | Others | 74,740 | 74,646 | | Revenue | 19,508,239 | 14,904,912 | | Proceeds from Disposal of Securities Investments | 2,514,573 | 853,346 | | Turnover | 22,022,812 | 15,758,258 | - Revenue from property sales and hotel and leisure were the largest contributors to the Group's revenue in FY2023, showing substantial increases from the prior year[21] 5. Other Income / (Losses) Net The Group's net other income in FY2023 turned profitable from a prior year loss, primarily driven by net realized and unrealized gains from trading financial assets and foreign exchange contracts, offsetting net losses from derivative financial instruments FY2023 Other Income / (Losses) Net | Category | 2023 (HKD Thousand) | 2022 (HKD Thousand) | | :--------------------------------------------------------- | :------------------ | :------------------ | | Net Realized and Unrealized Gains / (Losses) from Trading Financial Assets | 689,388 | (844,174) | | Net Realized and Unrealized (Losses) / Gains from Derivative Financial Instruments | (1,285) | 355,098 | | Net Gains from Foreign Exchange Contracts | 172,878 | 95,631 | | Other Exchange Gains / (Losses) | 10,735 | (178,820) | | Net Loss on Disposal of Property, Plant and Equipment | (8,338) | (34,322) | | Loss on Disposal of Intangible Assets | (447) | (7,876) | | Provision Reversed in Prior Year | - | 44,819 | | Gain on Disposal of Subsidiaries | - | 104,473 | | Net Gain on Liquidation of Subsidiaries | 60,784 | - | | Additional Consideration from Disposal of a Subsidiary in Prior Year | - | 91,520 | | Remeasurement Gain on Existing Interest in Other Investments | - | 13,415 | | Others | 53,450 | 44,449 | | Total | 977,165 | (315,787) | - The Group's net other income turned into a gain of HKD 977.165 million in FY2023, a significant improvement from the prior year's net loss, primarily driven by gains from trading financial assets and foreign exchange contracts[22] 6. Profit Before Tax for the Year Profit before tax for the year was influenced by finance costs, staff costs, depreciation, amortization, and significant net impairment losses, particularly in hotel and leisure operations, Manuka Health, and joint ventures due to market conditions and underperformance Finance Costs FY2023 Finance Costs | Category | 2023 (HKD Thousand) | 2022 (HKD Thousand) | | :--------------------------------- | :------------------ | :------------------ | | Interest on Bank Loans and Other Borrowings | 1,555,258 | 1,149,433 | | Interest on Lease Liabilities | 365,205 | 384,902 | | Other Borrowing Costs | 71,668 | 71,092 | | Total Borrowing Costs | 1,992,131 | 1,605,427 | | Less: Borrowing Costs Capitalized | (446,378) | (468,985) | | Consolidated Finance Costs | 1,545,753 | 1,136,442 | - Consolidated finance costs increased to HKD 1.546 billion in FY2023, with capitalized borrowing costs ranging from 1.90% to 5.63% annual interest rate[23] Staff Costs FY2023 Staff Costs | Category | 2023 (HKD Thousand) | 2022 (HKD Thousand) | | :----------------------------------------- | :------------------ | :------------------ | | Salaries, Wages and Other Benefits | 2,701,500 | 2,414,604 | | Contributions to Defined Contribution Retirement Plans | 105,512 | 97,208 | | Recognized Expense in Respect of Defined Benefit Retirement Plans | 1,340 | 4,362 | | Share-based Payment Expense / (Reversal) | 7,946 | (3,585) | | Total | 2,816,298 | 2,512,589 | - Total staff costs increased to HKD 2.816 billion in FY2023, primarily driven by higher salaries, wages, and other benefits[24] Other Items FY2023 Other Items Key Data | Category | 2023 (HKD Thousand) | 2022 (HKD Thousand) | | :--------------------------------------------------------- | :------------------ | :------------------ | | Depreciation — Other Property, Plant and Equipment | 518,289 | 596,600 | | Depreciation — Right-of-use Assets | 285,708 | 393,366 | | Net Impairment Loss Recognized — Other Property, Plant and Equipment | 446,958 | 74,795 | | Net Impairment Loss Recognized — Intangible Assets | 262,224 | 48,977 | | Net Impairment Loss Recognized — Right-of-use Assets | 353,850 | 284,297 | | Net Impairment Loss Recognized — Goodwill | 58,590 | 486,817 | | Net Impairment Loss Recognized — Interests in Joint Ventures | 252,883 | - | | Amortization — Customer Relationships, Licenses and Brands | 39,258 | 106,026 | | Amortization — Gaming Licenses and Brands | 956 | 659 | | Amortization — Bass Strait Oil and Gas Concession | 45,214 | 24,359 | | Amortization — Other Intangible Assets | 196,582 | 226,965 | | Net Impairment of Properties Under Development and Properties Held for Sale | 281,242 | - | | Cost of Inventories Recognized in Cost of Sales | 328,783 | 314,320 | | Cost of Properties Under Development and Properties Held for Sale Recognized in Cost of Sales | 5,791,595 | 2,864,730 | | Auditor's Remuneration — Audit Services | 29,683 | 28,352 | | Net Rental Income | (725,590) | (548,440) | | Share of (Profit) / Loss of Associates and Joint Ventures | (1,288,889) | (1,104,167) | - Significant impairment expenses were recognized in hotel and gaming premises, including HKD 375.3 million for right-of-use assets and HKD 487.8 million for other property, plant, and equipment, due to underperformance and closure decisions[26] - Manuka Health recognized a goodwill impairment loss of HKD 58.6 million due to global transport, logistics, supply chain disruptions, and negative impacts on the global economy[28] - The Group recognized an impairment loss of HKD 252.9 million on an investment in a joint venture, reflecting a cautious outlook and market conditions in the UK[28] 7. Taxation The Group's total taxation significantly decreased in FY2023, primarily due to the origination and reversal of deferred tax temporary differences and the impact of tax rate changes on deferred tax balances FY2023 Taxation Details | Category | 2023 (HKD Thousand) | 2022 (HKD Thousand) | | :----------------------------- | :------------------ | :------------------ | | Current Tax — Hong Kong Profits Tax | 525 | 3,240 | | Current Tax — Overseas | 529,479 | 494,623 | | Deferred Tax | (366,694) | (168,402) | | Total | 163,310 | 329,461 | - Hong Kong Profits Tax is calculated at a rate of 16.5%, while overseas subsidiary taxes are based on applicable local tax rates[29] - The Group is subject to progressive land appreciation tax ranging from 30% to 60% on the appreciation of land value from the sale of developed properties[30] 8. Dividends The Group's total dividends payable/paid significantly increased in FY2023, mainly due to the proposed final dividend rising from HKD 1.50 to HKD 2.50 per share FY2023 Dividend Details | Category | 2023 (HKD Thousand) | 2022 (HKD Thousand) | | :----------------------------------------- | :------------------ | :------------------ | | Interim Dividend (HKD 0.50 per share) | 162,331 | 162,989 | | Proposed Final Dividend (HKD 2.50 / HKD 1.50 per share) | 822,631 | 493,579 | | Total Payable/Paid for the Year | 984,962 | 656,568 | | Final Dividend Paid in Prior Year | 487,532 | 490,802 | - The total dividends payable/paid for the year increased to HKD 984.962 million, primarily driven by a higher proposed final dividend[31] 9. Earnings Per Share The Group's basic and diluted earnings per share both significantly increased to HKD 10.46 in FY2023, consistent with the growth in profit attributable to equity holders of the Company (a) Basic Earnings Per Share - Basic earnings per share was HKD 10.46 (2022: HKD 6.03), calculated based on profit attributable to equity holders of the Company of HKD 3.4003 billion and a weighted average of 325.2 million ordinary shares outstanding[32] (b) Diluted Earnings Per Share - There were no potential dilutive ordinary shares outstanding during the year, thus diluted earnings per share was equal to basic earnings per share[33] 10. Trade and Other Receivables As of June 30, 2023, the Group's total trade and other receivables slightly decreased, with an increase in trade receivables offset by reductions in other receivables and fair value derivative financial instruments FY2023 Trade and Other Receivables | Category | 2023 (HKD Thousand) | 2022 (HKD Thousand) | | :----------------------------------------- | :------------------ | :------------------ | | Trade Receivables | 742,712 | 714,543 | | Other Receivables, Deposits and Prepayments | 813,784 | 844,331 | | Derivative Financial Instruments (at fair value) | 106,805 | 218,375 | | Interest Receivable | 62,100 | 10,199 | | Total | 1,725,401 | 1,787,448 | - Total trade and other receivables slightly decreased to HKD 1.725 billion as of June 30, 2023, with an increase in trade receivables partially offset by a decrease in derivative financial instruments[34] FY2023 Ageing Analysis of Trade Receivables | Ageing | 2023 (HKD Thousand) | 2022 (HKD Thousand) | | :----------------- | :------------------ | :------------------ | | Within One Month | 642,952 | 673,200 | | One to Three Months | 46,107 | 23,229 | | Over Three Months | 53,653 | 18,114 | | Total | 742,712 | 714,543 | - The majority of trade receivables were within one month as of June 30, 2023, indicating healthy collection cycles[35] 11. Trade and Other Payables As of June 30, 2023, the Group's total trade and other payables slightly increased, primarily due to higher other payables and accrued operating expenses, while trade payables remained stable FY2023 Trade and Other Payables | Category | 2023 (HKD Thousand) | 2022 (HKD Thousand) | | :----------------------------------------- | :------------------ | :------------------ | | Trade Payables | 998,369 | 978,387 | | Other Payables and Accrued Operating Expenses | 3,915,461 | 3,767,821 | | Derivative Financial Instruments (at fair value) | 41,507 | 30,141 | | Amounts Due to Fellow Subsidiaries | 67,343 | 37,264 | | Amounts Due to Associates and Joint Ventures | - | 243 | | Total | 5,022,680 | 4,813,856 | - Total trade and other payables increased to HKD 5.023 billion as of June 30, 2023, mainly driven by an increase in other payables and accrued operating expenses[36] FY2023 Trade Payables Ageing Analysis | Ageing | 2023 (HKD Thousand) | 2022 (HKD Thousand) | | :----------------- | :------------------ | :------------------ | | Within One Month | 475,277 | 676,266 | | One to Three Months | 416,186 | 189,709 | | Over Three Months | 106,906 | 112,412 | | Total | 998,369 | 978,387 | - The ageing analysis of trade payables shows a shift, with a decrease in payables within one month and an increase in payables due in one to three months[37] Dividends The Board of Directors recommends a final dividend of HKD 2.50 per share for the financial year ended June 30, 2023, totaling HKD 823 million, payable on December 5, 2023, subject to shareholder approval - The Board recommends a final dividend of HKD 2.50 per share for FY2023, totaling HKD 823 million, to be paid on December 5, 2023[38] Management Discussion and Analysis The Group's profit attributable to equity holders surged by 73% in FY2023, primarily due to strong performance in Principal Investments, Property Development and Investment, Financial Services, and Other segments, though partially offset by impairment losses in Hotel and Leisure; Group revenue grew by 31%, driven by property sales and hotel business recovery Financial Performance The Group's consolidated profit attributable to equity holders increased by 73% to HKD 3.4003 billion in FY2023, with basic earnings per share at HKD 10.46, and most major segments achieving profit before tax growth, except for the Hotel and Leisure segment which recorded a loss due to impairment expenses - The Group's consolidated profit attributable to equity holders increased by 73% to HKD 3.4003 billion in FY2023[39] - Basic earnings per share was HKD 10.46, up from HKD 6.03 in the prior year[39] FY2023 Profit/(Loss) Before Tax by Segment | Segment | Profit/(Loss) Before Tax (HKD Billion) | | :------------------------- | :------------------------------------- | | Principal Investments | 1.5535 | | Property Development and Investment | 1.5032 | | Financial Services | 1.232 | | Others | 0.3278 | | Hotel and Leisure | (0.7862) | | Consolidated Profit Before Tax | 3.8303 | - Group revenue grew by 31% to HKD 19.5 billion, primarily driven by the Property Development and Investment segment (Singapore residential project sales) and the Hotel and Leisure segment (improved performance and industry recovery)[39] Business Review The Group's business segments showed varied performance in FY2023: Principal Investments benefited from valuations and dividend income, Property Development and Investment saw increased sales and rental income from Singapore projects, The Clermont Hotel Group achieved a turnaround, while The Rank Group Plc recorded a loss due to impairment; Financial Services continued to grow, and Other businesses also performed well Principal Investments - The Principal Investments segment recorded a profit before tax of HKD 1.5535 billion in FY2023, primarily from unrealized mark-to-market valuations and dividend income[40] - The investment strategy prioritizes fundamental business levels, focusing on investing in quality companies expected to create long-term shareholder value[40] - The Group formed a joint venture, GuoLine Advisory Pte. Ltd. (GAPL), with its parent company to manage discretionary investment portfolios and expand investment capabilities[41] Property Development and Investment GuocoLand Limited's revenue surged by 60% in FY2023, driven by Singapore residential project sales and increased investment property rental income; however, finance costs significantly rose due to Singapore interest rate hikes, leading to a 47% decrease in profit attributable to equity holders, while market outlook indicates increased residential supply in Singapore, a shrinking Chinese property market, and slower Malaysian economic growth GuocoLand Limited - GuocoLand's revenue increased by 60% year-on-year to SGD 1.5444 billion (approximately HKD 8.8706 billion), mainly due to higher sales from Singapore residential projects (Meyer Mansion, Midtown Modern, Lentor Modern) and delivery of Chongqing projects[42] - Investment property revenue increased by 35% to SGD 169.6 million (approximately HKD 974.1 million), benefiting from rental income from Guoco Tower, Guoco Changfeng City South Tower in Shanghai, and Guoco Midtown offices[42] - Finance costs increased by 59% to SGD 149.7 million (approximately HKD 859.8 million), primarily due to consecutive interest rate hikes in Singapore[42] - Profit attributable to equity holders decreased by 47% to SGD 207.1 million (approximately HKD 1.1895 billion), mainly impacted by rising finance costs and reduced fair value gains on investment properties[42] - The Singapore non-landed private residential market faces increased unsold units and future supply, with high interest rates expected to curb demand and price appreciation, while the Chinese property market is contracting and Malaysian economic growth is slowing[42][43] Hotel and Leisure Hotel and leisure businesses showed mixed performance: The Clermont Hotel Group achieved a turnaround, benefiting from rebranding, strong market demand, and cost control, while The Rank Group Plc swung to a loss due to energy costs, wage inflation, and impairment charges, despite strong digital business and Enracha casino performance The Clermont Hotel Group (formerly GLH Hotels Group Limited) - Clermont Hotel Group reversed last year's loss, recording a profit after tax of GBP 36.5 million (approximately HKD 345.5 million), benefiting from rebranding, premium positioning, and a streamlined portfolio[44] - Strong local and international demand drove room sales growth, with total revenue surpassing pre-pandemic levels[44] - Ongoing cost control and energy hedging measures partially offset the impact of high inflation and labor costs[44] - The business outlook is positive, with demand expected to remain strong, and continued investment in infrastructure upgrades and hotel repositioning will drive future growth[45] The Rank Group Plc ("Rank") - Rank's gaming net revenue increased by 6% to GBP 681.9 million (approximately HKD 6.4549 billion), but recorded a loss after tax of GBP 95.3 million (approximately HKD 902.1 million) due to energy costs, wage inflation, and GBP 118.9 million (approximately HKD 1.1255 billion) in impairment charges[46] - Digital business and Enracha casinos performed strongly, growing by 10% and 19% respectively, with Grosvenor and Mecca casinos seeing accelerated revenue recovery in the second half[46] - The company continues to improve safer gambling player journeys and prepares for regulatory reforms stemming from the UK government's gambling law review[46][47] Financial Services Hong Leong Financial Group's profit before tax grew by 5% in FY2023, primarily driven by its commercial banking and insurance segments, with Hong Leong Bank Group and HLA Holdings Group showing increased profits, while Hong Leong Capital Group's profit declined by 37% due to reduced contributions from investment banking and stockbroking Hong Leong Financial Group Berhad - Hong Leong Financial Group's profit before tax increased by 5% to MYR 5.1024 billion (approximately HKD 8.8768 billion), mainly from its commercial banking and insurance segments[47] - Hong Leong Bank Group's profit before tax increased by 6% to MYR 4.6266 billion (approximately HKD 8.0491 billion), benefiting from higher revenue, reduced impairment loss provisions, and increased share of associates' profits[48] - HLA Holdings Group's profit before tax increased by 12% to MYR 441 million (approximately HKD 767.2 million), primarily due to increased revenue[48] - Hong Leong Capital Group's profit before tax decreased by 37% to MYR 61.4 million (approximately HKD 106.8 million), due to reduced contributions from its investment banking, stockbroking, and fund management segments[48] Others - Manuka Health New Zealand Limited (MHNZ) saw improved sales revenue across all major markets, but adverse weather conditions led to a reduction in the fair value of agricultural produce, negatively impacting financial results[49] - The Bass Strait oil and gas business experienced increased performance due to higher average crude oil and gas prices[49] Discussion on Group Financial Position The Group maintains a robust financial position, with total equity attributable to equity holders of HKD 59.3 billion and net debt of HKD 14.4 billion as of June 30, 2023, resulting in an equity-to-debt ratio of 80:20; the Group possesses ample cash and short-term funds, actively manages interest rate and foreign exchange risks, and prioritizes human resource development Capital Management As of June 30, 2023, the Group's consolidated total equity attributable to equity holders was HKD 59.3 billion, with net debt of HKD 14.4 billion, resulting in an 80:20 equity-to-debt ratio, demonstrating a sound capital structure - As of June 30, 2023, the consolidated total equity attributable to equity holders of the Company was HKD 59.3 billion[50] - Net debt stood at HKD 14.4 billion, with an equity-to-debt ratio of 80:20[50] Liquidity and Financial Resources The Group possesses ample cash and short-term funds, primarily denominated in HKD, USD, and SGD; total bank loans and other borrowings amount to HKD 36.9 billion, mostly in SGD, with HKD 52.9 billion in assets pledged as collateral, and approximately HKD 12.5 billion in undrawn borrowing facilities - As of June 30, 2023, cash and short-term funds and trading financial assets were primarily denominated in HKD (33%), USD (30%), SGD (14%), RMB (9%), and GBP (7%)[51] - Total bank loans and other borrowings amounted to HKD 36.9 billion, mainly denominated in SGD (71%), with HKD 8 billion repayable within one year or on demand[51] - Certain Group bank loans and other borrowings are secured by properties, fixed assets, trading financial assets, and bank deposits with a total carrying value of HKD 52.9 billion[52] - The Group has undrawn committed borrowing facilities of approximately HKD 12.5 billion[52] Interest Rate Risk The Group manages interest rate risk by reducing overall debt costs and exposure to interest rate fluctuations, utilizing interest rate contracts as appropriate; approximately 89% of bank loans and other borrowings are at floating rates, with outstanding interest rate contracts having a notional amount of HKD 6.2 billion - The Group manages interest rate risk by reducing overall debt costs and exposure to interest rate fluctuations, utilizing interest rate contracts as appropriate[53] - Approximately 89% of bank loans and other borrowings are at floating rates, with 11% at fixed rates; outstanding interest rate contracts have a notional amount of HKD 6.2 billion[53] Foreign Exchange Risk The Group periodically enters into foreign exchange contracts, primarily over-the-counter derivatives, for hedging foreign exchange risk and investment purposes; as of June 30, 2023, the total notional amount of outstanding foreign exchange contracts was HKD 4.6 billion, used to hedge foreign currency equity investments - The Group periodically enters into foreign exchange contracts (primarily over-the-counter derivatives) for hedging foreign exchange risk and investment purposes[54] - The total notional amount of outstanding foreign exchange contracts was HKD 4.6 billion, used to hedge foreign currency equity investments[54] Equity Price Risk The Group maintains an investment portfolio primarily consisting of publicly listed equities and adheres to asset allocation limits to manage equity price risk - The Group maintains an investment portfolio primarily consisting of publicly listed equities and adheres to asset allocation limits to manage equity price risk[55] Human Resources and Training The Group employed approximately 10,500 staff at year-end, committed to providing continuous training programs to enhance employee capabilities and quality; remuneration policies are regularly reviewed, with bonuses and incentives linked to performance, and an equity award scheme in place to motivate and retain talent - The Group employed approximately 10,500 staff at year-end, committed to providing continuous training programs to enhance employee capabilities and quality[55] - Employee remuneration policies are regularly reviewed, with bonuses and other incentives linked to Group and individual performance, and an equity award scheme in place to motivate and retain talent[55] Group Outlook Despite a global economic outlook fraught with uncertainty, including inflation, high interest rates, geopolitical tensions, and weak growth in key markets, the Group remains cautiously optimistic, prioritizing risk management, cost control, and cash flow to enhance resilience and achieve sustainable long-term business growth - The global economic outlook is characterized by uncertainty, facing challenges such as inflation, high interest rates, geopolitical tensions, and weak growth in major economies[56] - The Group maintains a cautiously optimistic outlook, prioritizing risk management, cost control, and cash flow to enhance resilience[56] - The objective is to achieve sustainable long-term compound annual business growth[56] Other Information This section covers the Group's non-purchase, sale, or redemption of listed securities during the reporting period, compliance with corporate governance codes, the Board's review of financial information, and arrangements for the closure of the register of members to determine shareholder rights Purchase, Sale or Redemption of the Company's Listed Securities For the year ended June 30, 2023, neither the Company nor any of its subsidiaries purchased, sold, or redeemed any of the Company's listed securities - For the year ended June 30, 2023, neither the Company nor any of its subsidiaries purchased, sold, or redeemed any of the Company's listed securities[57] Compliance with Corporate Governance Code The Company has complied with the applicable provisions of the Corporate Governance Code set out in Appendix 14 to the Rules Governing the Listing of Securities on The Stock Exchange of Hong Kong Limited throughout the current financial year - The Company has complied with the applicable provisions of the Corporate Governance Code set out in Appendix 14 to the Rules Governing the Listing of Securities on The Stock Exchange of Hong Kong Limited throughout the current financial year[57] Review of Financial Information The Board's Audit and Risk Management Committee has reviewed the Company's accounting principles, risk management, internal controls, and financial reporting matters, discussing them with the auditors and management; the financial information in the annual results announcement has been agreed by external auditor KPMG to be consistent with the audited financial statements - The Board's Audit and Risk Management Committee has reviewed the Company's accounting principles, risk management, internal controls, and financial reporting matters, discussing them with the auditors and management[58] - The financial information in the annual results announcement has been agreed by external auditor KPMG to be consistent with the audited financial statements[58] Closure of Register of Members To determine shareholders' entitlement to attend and vote at the upcoming Annual General Meeting and to receive the proposed final dividend, the Company will temporarily close its register of members, with specific cut-off times and record dates announced Share Register Closure Arrangements | Item | Date/Time | | :----------------------------------------- | :----------------------------------------- | | To determine shareholders' entitlement to attend and vote at the Annual General Meeting | | | Closure of Register of Members | November 13, 2023 (Monday) to November 16, 2023 (Thursday) | | Latest time for lodging transfer forms | 4:30 p.m. on November 10, 2023 (Friday) | | Annual General Meeting | November 16, 2023 (Thursday) | | To determine shareholders' entitlement to the proposed final dividend | | | Closure of Register of Members | November 23, 2023 (Thursday) | | Latest time for lodging transfer forms | 4:30 p.m. on November 22, 2023 (Wednesday) | | Record Date | November 23, 2023 (Thursday) | | Proposed Final Dividend Payment Date | December 5, 2023 (Tuesday) | - The register of members will be closed from November 13 to November 16, 2023, to determine shareholders' entitlement to attend and vote at the Annual General Meeting on November 16, 2023[59] - The register will also be closed on November 23, 2023, with a record date of November 23, 2023, to determine shareholders' entitlement to the proposed final dividend payable on December 5, 2023[60] Board of Directors The Company's Board of Directors includes Mr. Kwek Leng Hai as Executive Chairman, Mr. Chew Gek Khim as Executive Director, Mr. Kwek Leng San as Non-executive Director, and independent non-executive directors Mr. David M. NORMAN, Mr. Wong Kwai Huen, and Mr. Paul J. BROUGH - The Board of Directors comprises Executive Chairman Mr. Kwek Leng Hai, Executive Director Mr. Chew Gek Khim, Non-executive Director Mr. Kwek Leng San, and Independent Non-executive Directors Mr. David M. NORMAN, Mr. Wong Kwai Huen, and Mr. Paul J. BROUGH[61]