大生地产(00089) - 2022 - 年度业绩

Financial Highlights Financial Highlights For the year ended December 31, 2022, the Group reported an 8.1% revenue increase, but annual profit significantly declined, with underlying profit (excluding property revaluation) down 31.1% due to higher interest expenses Financial Performance Summary | Metric | 2022 | 2021 | Change | | :--- | :--- | :--- | :--- | | Revenue | HKD 439.9 Million | HKD 407.0 Million | +8.1% | | Annual Profit | HKD 385.5 Million | HKD 654.4 Million | -41.1% | | Underlying Profit (Excluding Property Revaluation) | HKD 36.5 Million | HKD 53.0 Million | -31.1% | | Proposed Final Dividend | HKD 6 Cents per Share | HKD 12 Cents per Share | -50.0% | - Annual profit includes fair value gains on investment properties (net of deferred tax) of HKD 349 Million, a significant decrease from HKD 601.4 Million in 2021[2][47][49] Consolidated Financial Statements Consolidated Statement of Profit or Loss In 2022, Group revenue grew to HKD 440 Million, but profit for the year decreased 41.1% to HKD 386 Million due to reduced fair value gains on investment properties and significantly increased finance costs, with basic earnings per share at HKD 1.25 Consolidated Statement of Profit or Loss Summary | Item | 2022 (HKD Thousand) | 2021 (HKD Thousand) | | :--- | :--- | :--- | | Revenue | 439,858 | 407,024 | | Gross Profit | 291,704 | 270,586 | | Fair Value Gains on Investment Properties | 286,179 | 617,126 | | Operating Profit | 402,439 | 719,645 | | Net Finance Costs | (70,187) | (36,204) | | Profit Before Income Tax | 332,252 | 683,441 | | Profit for the Year | 385,510 | 654,426 | | Profit Attributable to Equity Holders of the Company | 360,115 | 633,618 | | Earnings Per Share (Basic and Diluted) | HKD 1.25 | HKD 2.20 | Consolidated Statement of Comprehensive Income Total comprehensive income for 2022 significantly decreased to HKD 384 Million from HKD 741 Million in 2021, primarily due to lower annual profit and a shift from positive to negative other comprehensive income, including fair value losses on financial assets Consolidated Statement of Comprehensive Income Summary | Item | 2022 (HKD Thousand) | 2021 (HKD Thousand) | | :--- | :--- | :--- | | Profit for the Year | 385,510 | 654,426 | | Other Comprehensive Income for the Year | (1,958) | 86,963 | | Total Comprehensive Income for the Year | 383,552 | 741,389 | Consolidated Statement of Financial Position As of year-end 2022, total assets increased to HKD 12.134 Billion and total equity to HKD 9.115 Billion, though the Group reported net current liabilities of HKD 820.403 Million mainly from short-term bank loans and current portions of long-term loans, yet management believes sufficient financial resources are available for ongoing operations Consolidated Statement of Financial Position - Assets | Asset | Dec 31, 2022 (HKD Thousand) | Dec 31, 2021 (HKD Thousand) | | :--- | :--- | :--- | | Non-current Assets | 11,839,719 | 11,572,995 | | Current Assets | 294,130 | 259,929 | | Total Assets | 12,133,849 | 11,832,924 | Consolidated Statement of Financial Position - Equity and Liabilities | Equity and Liabilities | Dec 31, 2022 (HKD Thousand) | Dec 31, 2021 (HKD Thousand) | | :--- | :--- | :--- | | Total Equity | 9,115,120 | 8,809,572 | | Non-current Liabilities | 1,904,196 | 2,305,337 | | Current Liabilities | 1,114,533 | 718,015 | | Total Equity and Liabilities | 12,133,849 | 11,832,924 | - The Group's net current liabilities as of December 31, 2022, amounted to HKD 820,403 Thousand, primarily comprising short-term bank loans and current portions of long-term bank loans, though directors believe the Group has sufficient financial resources for its operations[7] Notes to the Consolidated Financial Statements Basis of Preparation and Accounting Policies These consolidated financial statements are prepared in accordance with Hong Kong Financial Reporting Standards and the Hong Kong Companies Ordinance, with the adoption of annual improvements and revised standards effective January 1, 2022, having no significant impact on the Group's results or financial position - Financial statements are prepared on a historical cost basis, except for investment properties and financial assets measured at fair value through other comprehensive income[14] - The Group adopted annual improvements and revised standards mandatory for fiscal years beginning on or after January 1, 2022, with no significant impact on the Group's results or financial position[15][117] Revenue and Segment Information Group total revenue increased by 8.1% to HKD 440 Million, primarily driven by significant growth in hotel operations, with the Hong Kong segment contributing the majority of revenue and profit, while the North America segment recorded a loss mainly due to fair value losses on investment properties Revenue by Source | Revenue Source | 2022 (HKD Thousand) | 2021 (HKD Thousand) | YoY Change | | :--- | :--- | :--- | :--- | | Property Leasing | 340,537 | 342,549 | -0.6% | | Property Related Services | 27,588 | 27,918 | -1.2% | | Hotel Operations | 57,819 | 29,783 | +94.1% | | Food and Beverage Operations | 13,914 | 6,774 | +105.4% | | Total | 439,858 | 407,024 | +8.1% | 2022 Segment Results | Item | Hong Kong (HKD Thousand) | North America (HKD Thousand) | Total (HKD Thousand) | | :--- | :--- | :--- | :--- | | Segment Revenue | 366,394 | 73,464 | 439,858 | | Profit/(Loss) for the Year | 546,708 | (161,198) | 385,510 | - The Group's operating segments are geographically divided into Hong Kong and North America, with the chief operating decision maker (Executive Directors) assessing performance based on segment underlying profit (excluding fair value changes of investment properties)[19][32] Income Tax, Finance Costs and Earnings Per Share In 2022, the Group recorded an income tax credit of HKD 53.258 Million, mainly from deferred income tax credit in the US, while net finance costs significantly increased by 93.9% to HKD 70.187 Million due to rising interest rates, and basic earnings per share decreased from HKD 2.20 to HKD 1.25 Net Finance Costs | Item | 2022 (HKD Thousand) | 2021 (HKD Thousand) | | :--- | :--- | :--- | | Finance Income | 1,038 | 406 | | Finance Costs | (71,225) | (36,610) | | Net Finance Costs | (70,187) | (36,204) | Income Tax (Credit)/Expense | Item | 2022 (HKD Thousand) | 2021 (HKD Thousand) | | :--- | :--- | :--- | | Current Income Tax | 4,750 | 11,149 | | Deferred Income Tax (Credit)/Expense | (58,008) | 17,866 | | Total Income Tax (Credit)/Expense | (53,258) | 29,015 | - Basic earnings per share were HKD 1.25, calculated based on profit attributable to equity holders of the Company of HKD 360 Million and 287.7 million ordinary shares in issue (2021: HKD 2.20 per share), with no potential dilutive effect[62][41] Dividends The Board proposed a final dividend of HKD 6 Cents per ordinary share, a 50% reduction from HKD 12 Cents last year, bringing the total full-year dividend to HKD 20 Cents per share including the interim dividend of HKD 14 Cents Dividends Declared | Dividend | 2022 | 2021 | | :--- | :--- | :--- | | Interim Dividend (per Share) | HKD 14 Cents | HKD 10 Cents | | Proposed Final Dividend (per Share) | HKD 6 Cents | HKD 12 Cents | | Full Year Dividend (per Share) | HKD 20 Cents | HKD 22 Cents | Trade and Other Receivables and Payables As of year-end 2022, net trade receivables increased to HKD 3.527 Million, with a notable rise in receivables over 90 days, and total trade payables also increased to HKD 13.817 Million Trade Receivables Ageing | Trade Receivables Ageing | 2022 (HKD Thousand) | 2021 (HKD Thousand) | | :--- | :--- | :--- | | 0-30 Days | 1,584 | 1,446 | | 31-60 Days | 147 | 137 | | 61-90 Days | 110 | 131 | | Over 90 Days | 1,686 | 91 | | Total | 3,527 | 1,805 | Trade Payables Ageing | Trade Payables Ageing | 2022 (HKD Thousand) | 2021 (HKD Thousand) | | :--- | :--- | :--- | | 0-30 Days | 11,540 | 9,159 | | 31-60 Days | 1,167 | 182 | | 61-90 Days | 379 | 7 | | Over 90 Days | 731 | 332 | | Total | 13,817 | 9,680 | Management Discussion and Analysis Chairman's Statement The Chairman's Statement highlights a 41.1% decrease in 2022 consolidated profit to HKD 386 Million, mainly due to reduced fair value gains on investment properties, with underlying profit also down 31.1% due to increased interest expenses, anticipating continued pressure from rising interest rates but improved business conditions in 2023 as pandemic effects wane and tourism recovers, while the Group plans to enhance its property portfolio and explore Greater Bay Area investment opportunities - Core property leasing business remained stable, while hotel and food and beverage operations recorded significant revenue growth due to full-year operations of two hotels, driving the Group's total revenue growth of 8.1%[67] - Looking ahead, rising interest rates in the US and Europe will significantly increase the Group's interest expenses, negatively impacting profits in the coming years[50] - The Group's strategy will continue to focus on investing in upgrading and modernizing its existing property portfolio to enhance rental growth potential, and may explore investment opportunities in the Greater Bay Area[71] Business Review The Group's hotel operations showed strong performance in 2022 with a 95.9% revenue increase due to full-year operations of two hotels, while Hong Kong property leasing saw slight growth, and the San Francisco office leasing market remained sluggish with decreased occupancy and a 7.2% reduction in rental income - Hotel business revenue significantly increased by 95.9% to HKD 71.7 Million, with The Figo and The Arca hotels achieving average occupancy rates of 92.4% and 76.5%, and average daily room rates of HKD 806 and HKD 869 respectively[53] - In Hong Kong, gross rental income increased by 1.4% to HKD 267.1 Million, primarily from the contribution of new commercial spaces[74] - In the US, gross rental income from Montgomery Plaza decreased by 7.2% to HKD 73.5 Million, with office occupancy at 70% by year-end, reflecting a persistent sluggish market[75] Liquidity and Financial Resources The Group maintains a sound financial position with a gearing ratio (total debt to total equity) of 28.2%, consistent with the prior year, and total bank borrowings slightly increased to HKD 2.574 Billion, possessing sufficient bank credit facilities and relying on operating cash flow and bank borrowings for funding needs Key Financial Metrics | Financial Metric | Dec 31, 2022 | Dec 31, 2021 | | :--- | :--- | :--- | | Total Bank Borrowings | HKD 2.574 Billion | HKD 2.511 Billion | | Total Equity | HKD 9.115 Billion | HKD 8.810 Billion | | Gearing Ratio | 28.2% | 28.5% | - The Group's borrowings and cash are primarily denominated in HKD and USD, thus posing no significant foreign exchange fluctuation risk[94] - As of year-end, the Group's long-term bank loans maturing within one year amounted to HKD 692 Million, with HKD 1.223 Billion maturing in the second year[95] Corporate Governance and Other Information Corporate Governance During the reporting period, the company complied with the Corporate Governance Code under the Listing Rules, with the only deviation being the combined roles of Chairman and Chief Executive Officer held by Mr. Ma Ching Wai, which the Board believes provides strong and consistent leadership beneficial to the company and shareholders - The company complied with the code provisions of the Corporate Governance Code, except for the provision where the roles of Chairman and Chief Executive Officer are held by the same individual[87][100] - The Board believes that combining the roles of Chairman and Chief Executive Officer provides strong and consistent leadership for the company, facilitating effective strategic planning and implementation[100] Shareholder Information The company plans to hold its Annual General Meeting on May 22, 2023, with share transfer registration suspended from May 17 to May 22, 2023, to determine eligibility for attendance - The Annual General Meeting is scheduled for May 22, 2023[88][102] - To ensure shareholders' eligibility to attend the Annual General Meeting, share transfer registration will be suspended from May 17 to May 22, 2023 (both dates inclusive)[104]