REGAL INT'L(HK:00078)2023-03-27 13:36Financial Performance - The company reported a consolidated loss attributable to shareholders of HKD 358.3 million for the year ended December 31, 2022, a decrease of 27.5% from a loss of HKD 494.4 million in the previous fiscal year [3]. - Revenue for the year was HKD 1,831.1 million, representing an increase of 85.6% compared to HKD 986.6 million in 2021 [2]. - Gross profit for the year reached HKD 857.8 million, a significant increase of 264.2% from HKD 235.5 million in the previous year [2]. - Operating profit before depreciation, financing costs, and tax was HKD 636.0 million, up 178.9% from HKD 228.0 million in 2021 [2]. - The total distributable income for the year was HKD 204.8 million, down from HKD 310.8 million in 2021, primarily due to increased financing costs from rising HIBOR [10]. - The group recorded a consolidated profit of HKD 929.9 million for the year ending December 31, 2022, compared to HKD 577.1 million in the previous fiscal year, with fair value gains of HKD 754.7 million from investment properties [10]. - The company reported a total comprehensive loss of HKD 549.9 million for 2022, compared to a loss of HKD 790.6 million in 2021, indicating an improvement of about 30.5% [56]. - The basic and diluted loss per share for 2022 was HKD 0.53, compared to HKD 0.68 in 2021, reflecting a decrease in loss per share of approximately 22.1% [55]. Hotel Operations - The average occupancy rate and average room rates for the company's hotels showed significant improvement year-on-year [3]. - In 2022, the average hotel occupancy rate in Hong Kong was 66.0%, an increase of 3.0 percentage points year-on-year, while the average room rate rose by 23.8%, leading to a 29.7% increase in RevPAR [8]. - The group’s hotel operations saw significant improvement, with all five Royal Hotels showing substantial year-on-year growth in occupancy and average room rates [12]. - Revenue from hotel operations and management was HKD 1,647.0 million in 2022, up from HKD 875.5 million in 2021, marking an increase of about 88% [68]. - Hotel operation and management services revenue rose to HKD 1,580.1 million in 2022, compared to HKD 812.3 million in 2021, marking a growth of 94.3% [74]. Market Conditions and Future Outlook - The company expects a strong recovery in Hong Kong's tourism industry in 2023, driven by pent-up travel demand [5]. - Despite rising financing costs due to increased HIBOR rates, the company believes the worst period has passed and is prepared for business recovery as the economic situation normalizes [5]. - The group is preparing for a business recovery as normal travel between Hong Kong and mainland China resumed in early January 2023, with significant pent-up demand for tourism [18]. - The Hong Kong government is actively promoting the "Hello, Hong Kong" campaign, including the distribution of 500,000 free tickets to attract tourists [18]. - The group anticipates a rapid recovery in business travel as over 30 major international conferences and events are planned to be held in Hong Kong in 2023 [18]. Property Development and Sales - The company plans to resume sales of residential units at The Queens project when market conditions are favorable [4]. - The average price of residential units in Hong Kong dropped by over 15% during the year, ending a decade-long upward trend [14]. - As of December 31, 2022, a total of 17 garden houses and 52 apartment units at the luxury residential project 富豪‧山峯 were sold or contracted at satisfactory prices, with 14 houses and 39 apartments completed [14]. - The Queens project, a commercial/residential development, received its occupancy permit in August 2022, with the first batch of units sold by the end of 2022 [21]. Financial Position and Assets - The adjusted net asset value per share is HKD 22.61, reflecting the fair value of hotel properties as of December 31, 2022 [7]. - As of December 31, 2022, the net asset value attributable to equity holders of the parent company was HKD 11,326.6 million, a decrease from HKD 12,600 million in the previous year [44]. - The group's cash and bank deposits, including time deposits, amounted to HKD 1,744.5 million as of December 31, 2022, down from HKD 2,233.7 million in the previous year [47]. - The group's debt, after deducting cash and bank deposits, was HKD 13,831.2 million as of December 31, 2022, an increase from HKD 12,979.5 million in the previous year [47]. - The debt-to-asset ratio as of December 31, 2022, was 45.7%, up from 42.1% in the previous year [47]. Governance and Compliance - The audit committee has reviewed the consolidated financial statements for the year ended December 31, 2022, in accordance with the adopted accounting standards and practices [86]. - The company has complied with the corporate governance code as per the Stock Exchange Listing Rules, except for the non-separation of the roles of Chairman and CEO due to operational needs [86]. - The board of directors includes a mix of executive and non-executive members, ensuring diverse governance [87].