Financial Performance - Total revenue from the hotel portfolio increased by 66.7% to HKD 720.9 million in the first half of 2023, compared to HKD 432.4 million in the same period of 2022[6]. - Distributable income for the first half of 2023 was HKD 136.8 million, a 9.8% increase from HKD 124.6 million in the same period of 2022[6]. - The net profit attributable to shareholders for the six months ended June 30, 2023, was HKD 630,966,000, compared to HKD 610,394,000 for the same period in 2022, representing a growth of 1.9%[136]. - The pre-tax profit for the six months ended June 30, 2023, was HKD 650.9 million, compared to HKD 631.1 million for the same period in 2022[83]. - The total distributable income for the six months ended June 30, 2023, was HKD 136,792,000, an increase from HKD 124,601,000 in the previous year, reflecting a growth of 9.4%[136]. Hotel Operations - The average revenue per available room (RevPAR) increased by 25.9% year-on-year in the first half of 2023[22]. - The average occupancy rate for the overall hotel portfolio increased to 86.5% in H1 2023, up from 72.4% in H1 2022, with a 25.9% rise in average revenue per available room[49]. - The Langham Hotel in Hong Kong reported a significant increase in occupancy rate from 70.6% in H1 2022 to 84.5% in H1 2023, with an average room rate rising by 24.3% to HKD 2,044[46]. - The average daily room rate for the Hong Kong hotels was HKD 667 in the first half of 2023, with an occupancy rate of 88.4%[44]. - The average room rate for all hotels in Hong Kong reached HKD 1,299 in H1 2023, reflecting a 25.3% increase compared to H1 2022[56]. Rental Income - The total rental income (net of service fees) rose by 30.2% to HKD 235.8 million in the first half of 2023, up from HKD 181.1 million in the previous year[6]. - Fixed rental income from GE (LHIL) Lessee Limited was HKD 111.6 million, while variable rental income amounted to HKD 158.9 million in the first half of 2023[15]. - Total rental income for the Trust Group increased by 30.2% year-on-year to HKD 235.8 million in the first half of 2023, driven by a 74.8% increase in floating rental income[28]. Financial Position - The total value of the hotel portfolio increased to HKD 15,265.0 million as of June 30, 2023, from HKD 14,685.0 million at the end of December 2022[14]. - The debt ratio decreased to 40.5% as of June 30, 2023, down from 42.0% at the end of December 2022[14]. - As of June 30, 2023, the total assets of the trust group amounted to HKD 15,593.8 million, an increase from HKD 15,022.6 million as of December 31, 2022[65]. - The debt-to-asset ratio was 40.5% as of June 30, 2023, down from 42.0% as of December 31, 2022[65]. - The cash balance stood at HKD 246.6 million as of June 30, 2023, slightly up from HKD 245.1 million as of December 31, 2022[67]. Interest and Financing Costs - The average borrowing interest rate for the Trust Group Bank increased to 4.3% in the first half of 2023, compared to 1.1% in the same period of 2022, leading to a 90.8% year-on-year increase in financing costs to HKD 109.5 million[25]. - Interest expenses surged to HKD 134.3 million in the first half of 2023, marking a 291.5% increase year-on-year due to rising interbank rates[37]. - The financing costs for the six months ended June 30, 2023, amounted to HKD 109,495,000, significantly higher than HKD 57,418,000 in the same period of 2022[128]. Strategic Planning and Future Outlook - The company anticipates significant improvement in hotel performance in the second half of 2023 compared to the same period in 2022, as the latter was influenced by special operational circumstances[86]. - The Trust Group plans to continue its hedging strategy to mitigate the impact of potential interest rate hikes on distributable income[25]. - The company continues to focus on property investment as its primary business activity, maintaining consistency in accounting policies from the previous fiscal year[92]. Changes in Assets and Liabilities - The total number of overnight visitors to Hong Kong in H1 2023 was 6.6 million, significantly lower than the 14.9 million in 2019, indicating ongoing recovery challenges[58]. - Total receivables from tenants amounted to HKD 28,218,000 as of June 30, 2023, significantly up from HKD 9,211,000 as of December 31, 2022, reflecting a substantial increase in receivables[146]. - Trade payables increased to HKD 30,890,000 as of June 30, 2023, compared to HKD 17,446,000 as of December 31, 2022, indicating a rise in liabilities[147]. Compliance and Reporting Standards - The company has applied new and revised Hong Kong Financial Reporting Standards, which may impact the financial statements moving forward[95]. - The group will apply the revised Hong Kong Financial Reporting Standards for the annual consolidated financial statements for the year ending December 31, 2023[117]. - The financial statements were prepared in accordance with the Hong Kong Financial Reporting Standards, with no significant impact from the revised standards adopted during the interim period[167].
朗廷(01270) - 2023 - 中期业绩