世纪城市国际(00355) - 2023 - 中期业绩

Financial and Business Highlights Financial Highlights for the Six Months Ended June 30, 2023 | Financial Metric | Six Months Ended June 30, 2023 (Unaudited) | Six Months Ended June 30, 2022 (Unaudited) | % Change | | :--- | :--- | :--- | :--- | | Revenue | HK$1,602.7 million | HK$2,915.0 million | -45.0% | | Gross Profit | HK$642.5 million | HK$1,341.8 million | -52.1% | | Profit/(Loss) from Core Business | HK$(70.5) million | HK$307.7 million | N/A | | Profit/(Loss) Attributable to Shareholders | HK$(243.7) million | HK$137.3 million | N/A | | Basic EPS/(LPS) | HK$(8.66) cents | HK$3.64 cents | N/A | | As of | June 30, 2023 (Unaudited) | December 31, 2022 (Audited) | % Change | | Book NAV per Share | HK$2.35 | HK$2.47 | -4.9% | | Adjusted NAV per Share | HK$3.48 | HK$3.51 | -0.9% | - The Group reported a consolidated loss attributable to shareholders of HK$243.7 million for the first six months of 2023, a significant downturn from the HK$137.3 million profit recorded in the same period of 2022[12][35] - The loss was primarily attributed to lower revenue from property and hotel segments, a substantial increase in financing costs, and significant non-cash depreciation charges[12][14] - Excluding non-cash items, the Group's core business recorded a net loss attributable to shareholders of HK$70.5 million[12][37] Management's Discussion and Analysis Business Review The Group operates as a conglomerate of five listed companies, with core businesses in property and hotels managed through its main subsidiary, Paliburg Holdings Limited - The Group is composed of five listed companies, with Century City holding approximately 62.3% of Paliburg Holdings, which manages the core property and hotel businesses[2][1] - In February 2023, the Group acquired a local securities brokerage, renamed CityLink Securities Limited, to diversify its business and leverage its existing client network[12][19] Performance of Listed Subsidiaries (H1 2023 vs H1 2022) | Company | H1 2023 Attributable Profit/(Loss) | H1 2022 Attributable Profit/(Loss) | | :--- | :--- | :--- | | Paliburg Holdings Limited | HK$(383.1) million | HK$230.9 million | | Regal Hotels International Holdings Limited | HK$(762.6) million | HK$138.3 million | | Regal REIT | HK$105.2 million | HK$613.1 million | | Cosmopolitan International Holdings Limited | HK$(98.3) million | HK$87.8 million | Property Business The Group's property business includes luxury residential sales in Hong Kong and ongoing commercial and residential developments in Mainland China P&R Holdings Limited - The Summit, Sha Tin: Sales transactions for 2 houses and 8 apartment units were completed, generating revenue of HK$597.9 million during the period[71][72] - We Go MALL, Ma On Shan: The shopping mall's business remained stable, with leasing conditions expected to improve gradually[56] - iclub Mong Kok Hotel: This 288-room hotel project is operated by P&R and managed by the Regal Group[57] - Cheung Sha Wan Projects: The Group is undergoing legal procedures for compulsory sale to consolidate 100% ownership for a comprehensive redevelopment[5][58] Regal Hotels International Holdings Limited - Regal Skycity Hotel, Hong Kong International Airport: The new hotel, featuring 1,208 rooms and suites, officially opened in April 2023[60][80][81] - The QUEENS, Queen's Road West: Due to changing market conditions, some residential units in this 130-unit development are being converted for rental purposes[61][77][82] - Regal Crest, Stanley: The Group retains 9 houses in this development, which will be put up for sale if attractive offers are received[62][84] Cosmopolitan International Holdings Limited (China Projects) - Chengdu Project - Regal International New Town: Nearly all residential units in Phase 3 have been sold, with construction of the remaining commercial complex progressing steadily[117][129][131] - Tianjin Project - Regal Xinkaimen: The superstructure of two office towers and a commercial podium is completed, but the new sales launch has been deferred due to market conditions[120][121][133] - Xinjiang Project: The Group is communicating with government authorities to resolve illegal occupation issues to proceed with land development[122][134][151] Other Investments The Group's other investments include an edutainment associate, a financial assets portfolio, and overseas properties in Europe - The Group holds a 48% interest in its associate, Century Innovative Technology Group, which is developing ESG-themed bilingual children's educational books[28][44][52] - The financial assets investment business was adversely affected by volatile global capital markets, resulting in a net loss for this segment[123][151] - The Group owns overseas properties in London, Lisbon, and Barcelona at various stages of planning, renovation, or leasing[9][78][86] Financial Review The Group's financial position is characterized by an adjusted NAV of HK$3.48 per share, an adjusted gearing ratio of 34.0%, and a significant increase in net interest expenses Net Asset Value (NAV) per Share as of June 30, 2023 | Metric | Amount (HK$ million) | Per Share (HK$) | | :--- | :--- | :--- | | Book NAV Attributable to Shareholders | 7,268.6 | 2.35 | | Adjustment for HK Hotel Portfolio at Market Value | 3,480.2 | 1.13 | | Adjusted NAV Attributable to Shareholders | 10,748.8 | 3.48 | Debt and Gearing Ratio | Metric | As at June 30, 2023 | As at Dec 31, 2022 | | :--- | :--- | :--- | | Net Debt | HK$17,391.6 M | HK$17,132.5 M | | Gearing Ratio (Book Total Assets) | 42.2% | 40.7% | | Gearing Ratio (Adjusted Total Assets) | 34.0% | 33.3% | - Net interest expense for the period increased significantly to HK$469.4 million, compared to HK$157.4 million in the same period last year[154] - The Board of Directors resolved not to declare an interim dividend for the financial year ending December 31, 2023[141][160] Condensed Consolidated Financial Statements Condensed Consolidated Income Statement The Group's revenue fell 45.0%, leading to a loss attributable to shareholders of HK$243.7 million, driven by lower gross profit and higher finance costs Key Income Statement Figures (Six Months Ended June 30) | Item | 2023 (Unaudited HK$M) | 2022 (Unaudited HK$M) | | :--- | :--- | :--- | | Revenue | 1,602.7 | 2,915.0 | | Gross Profit | 642.5 | 1,341.8 | | Operating Profit/(Loss) | (84.1) | 637.9 | | Finance Costs | (523.6) | (193.4) | | Loss Before Tax | (615.5) | 440.9 (Profit) | | Loss for the Period | (651.7) | 298.9 (Profit) | | Loss Attributable to Shareholders | (243.7) | 137.3 (Profit) | Condensed Consolidated Balance Sheet As of June 30, 2023, the Group's total assets stood at HK$41,165.1 million, with total equity of HK$17,783.0 million and total bank borrowings of HK$19,358.9 million Key Balance Sheet Figures | Item | As at June 30, 2023 (Unaudited HK$M) | As at Dec 31, 2022 (Audited HK$M) | | :--- | :--- | :--- | | Total Non-current Assets | 28,937.2 | 29,302.1 | | Total Current Assets | 12,227.9 | 12,792.6 | | Total Assets | 41,165.1 | 42,094.7 | | Total Current Liabilities | (7,743.1) | (9,946.0) | | Total Non-current Liabilities | (15,639.0) | (13,467.1) | | Total Liabilities | (23,382.1) | (23,413.1) | | Net Assets / Total Equity | 17,783.0 | 18,681.6 | Notes to the Financial Statements Segment information shows revenue declines in Property and Hotel businesses, with the latter swinging to a loss, while finance costs more than doubled Segment Revenue (External Sales) | Business Segment | H1 2023 (HK$M) | H1 2022 (HK$M) | | :--- | :--- | :--- | | Property Development & Investment | 794.3 | 1,849.8 | | Hotel Operation, Management & Ownership | 744.2 | 1,012.0 | | Aircraft Owning & Leasing | 13.0 | 12.0 | | Financial Asset Investment | 9.4 | 11.6 | | Others | 41.8 | 29.6 | Segment Results | Business Segment | H1 2023 (HK$M) | H1 2022 (HK$M) | | :--- | :--- | :--- | | Property Development & Investment | 211.0 | 538.1 | | Hotel Operation, Management & Ownership | (192.8) | 181.8 | | Aircraft Owning & Leasing | 7.2 | 7.1 | | Financial Asset Investment | (32.8) | (30.4) | - Total finance costs rose to HK$523.6 million for the period, compared to HK$193.4 million in H1 2022, mainly driven by higher interest on bank loans[103][195] - No dividend was paid or declared during the six months ended June 30, 2023, and no dividend has been proposed since the end of the reporting period[106][198] Corporate Governance and Other Information Corporate Governance The Group complied with the Corporate Governance Code, with the exception of the non-segregation of the Chairman and CEO roles, and the interim financials were reviewed by the Audit Committee - The Audit Committee has reviewed the Group's condensed consolidated financial statements for the six months ended June 30, 2023, with the company's external auditors[110] - The company complied with the Corporate Governance Code, except for the deviation that the roles of the Chairman and the Chief Executive Officer are not separate[115][206] - Neither the company nor any of its subsidiaries repurchased, sold, or redeemed any of the company's listed securities during the period[109][201]