Financial Performance - The hotel operating revenue for the group was approximately HKD 14.0 million, an increase of about 351.6% compared to HKD 3.1 million in the same period last year[7]. - The loss attributable to the owners of the company was approximately HKD 11.1 million, compared to a loss of approximately HKD 14.6 million in the previous year[7]. - Basic loss per share was approximately HKD 0.29, improved from HKD 0.42 in the same period last year[10]. - The gross profit for the quarter was HKD 9.74 million, compared to a gross loss of HKD 0.33 million in the previous year[8]. - The group reported a pre-tax loss of HKD 10.71 million, down from HKD 14.62 million in the previous year[8]. - Other comprehensive income included a foreign exchange gain of HKD 7.84 million, compared to a loss of HKD 2.46 million in the previous year[10]. - Total comprehensive loss for the period was HKD 3.26 million, compared to HKD 13.92 million in the previous year[10]. - The group’s financial costs were HKD 6.24 million, compared to HKD 5.53 million in the previous year[8]. - The group’s other income and gains amounted to HKD 0.29 million, down from HKD 0.64 million in the previous year[8]. - The company reported a total comprehensive loss of HKD 13,918,254 for the period, compared to a loss of HKD 14,622,650 in the previous year, showing a slight improvement[12]. - The company recorded a loss of HKD 11,085,712 during the period, which is an improvement from the loss of HKD 14,605,530 in the same quarter of the previous year[12]. Revenue Breakdown - For the three months ended March 31, 2023, total revenue from hotel operations was HKD 14,043,811, a significant increase from HKD 3,078,633 in the same period of 2022, representing a growth of approximately 356%[18]. - Hotel room revenue reached HKD 11,734,286, compared to HKD 1,088,284 in the previous year, indicating an increase of about 980%[18]. - Rental income from hotel properties was HKD 1,599,011, up from HKD 1,163,497, reflecting a growth of approximately 37.5%[18]. - Room revenue for the review period was approximately HKD 11.7 million, accounting for about 83.6% of total hotel operating revenue, compared to 35.3% in 2022[34]. - Rental income from hotel tenants was approximately HKD 1.6 million, representing about 11.4% of total hotel business revenue, up from 1.2% in 2022[37]. Expenses and Costs - Administrative expenses increased to HKD 14.21 million from HKD 9.01 million year-on-year[8]. - The group’s employee costs increased to HKD 6,819,460 for the quarter ended March 31, 2023, compared to HKD 4,112,853 in the same period last year[21]. - The depreciation of property, plant, and equipment was HKD 2,768,266 for the quarter ended March 31, 2023, down from HKD 3,483,150 in the previous year[21]. - The group has not made any provisions for Hong Kong profits tax as there were no taxable profits generated in Hong Kong for the quarter ended March 31, 2023[22]. - The group’s Singapore corporate income tax provision for the quarter was estimated at HKD 382,528, reflecting a tax rate of 17%[23]. Liquidity and Financial Challenges - The Singapore hotel business is currently facing liquidity challenges, and the company is engaged in refinancing efforts to stabilize its financial foundation[43]. - The company is actively seeking refinancing to stabilize its financial situation due to significant liquidity challenges, which have led to the takeover of its Singapore hotel operations[46]. - The company is negotiating a moderate repayment schedule with convertible bondholders due to a default on HKD 25.3 million in convertible bonds[42]. - The group incurred a penalty interest of approximately HKD 2.5 million due to the failure to redeem convertible bonds that matured in November 2020, consistent with the previous year's amount[31]. Future Outlook and Strategic Plans - The company plans to continue expanding its hotel operations and exploring new markets to enhance revenue growth in the upcoming quarters[19]. - The company anticipates the completion of its resort project within 18 months, contingent on sufficient funding and recovery in the tourism sector[38]. - The company is actively seeking potential buyers for its Japanese hot spring hotel to generate operating capital and improve liquidity[42]. - The company maintains a cautiously optimistic outlook for future growth, expecting a strong recovery in the tourism industry as travel restrictions ease[43]. - The company plans to reassess its hotel portfolio and consider expansion or adjustment plans based on current market conditions[43]. - The Japanese hot spring resort is positioned to meet increasing interest in health tourism, pending timely refinancing[44]. - The development of the Bintan resort is seen as a strategic opportunity to expand the company's regional footprint, contingent on successful and timely refinancing[46]. - The company aims to enhance property value and strategically invest in special assets and restructuring opportunities, with a positive outlook for future prospects[46]. Share Capital and Ownership - A sale agreement was completed on February 15, 2023, involving the sale of 1,900,000,000 shares for HKD 37,000,000, equating to approximately HKD 0.01947 per share[52]. - As of March 31, 2023, the company received a payment notice from DBS Bank for an outstanding amount of SGD 50,010,570.88, leading to a payment default by Hang Huo Investment Pte Ltd[54]. - Silverine Pacific Ltd., a wholly-owned subsidiary, is facing a winding-up petition due to an outstanding debt of SGD 1,800,000 related to a financing agreement[56]. - The company issued zero-coupon convertible bonds with a principal amount of HKD 25,128,000, which can be converted into 698,000,000 shares, representing 20% of the existing issued share capital[59]. - The company completed the conversion of 25,128,000 HKD of convertible bonds, resulting in the issuance of 200,000,000 shares to Mr. Wu, 178,000,000 shares to Ng Sam Meng, and 160,000,000 shares each to Ao Leong Fan and Lao Sao Chan[61]. - After the conversion, the total issued share capital of the company increased to approximately 4,188,000,000 shares[66]. - Major shareholder Ace Kingdom Enterprises holds 1,902,434,000 shares, representing 45.43% of the company's total issued shares[64]. - CMI Financial Holding Company Limited owns 690,000,000 shares, accounting for 16.48% of the total issued shares[64]. - The company has a total of 76,600,000 shares related to convertible bonds held by CMI Hong Kong, which represents approximately 1.83% of the total issued share capital[66]. - The company’s board of directors is aware of no other individuals holding or deemed to hold interests in the company's shares or related securities as of March 31, 2023[67]. - The conversion of the 2020 convertible bonds was completed on February 17, 2023, with all remaining bonds fully converted[61]. - The company’s major shareholders include controlled entities with significant stakes, such as Boomerang Investment Limited and Billion Supreme Holdings Limited, each holding 45.43%[64]. - The company’s total issued share capital after the bond conversion reflects a significant increase in equity[66]. - The company is committed to transparency regarding shareholder interests and compliance with securities regulations[67].
华星控股(08237) - 2023 Q1 - 季度财报