Financial Performance - The net profit attributable to shareholders for the year ended December 31, 2023, was HKD 97 million, a decrease of 23% from HKD 225 million in 2022[5]. - The operating profit from hotel operations decreased by 39% to HKD 80.9 million, down from HKD 132.4 million in the previous year[5]. - The net profit from property investments dropped significantly by 86% to HKD 19.1 million, compared to HKD 134.1 million in 2022[5]. - Total revenue for the year ended December 31, 2023, was HKD 606,035,000, a slight decrease from HKD 612,687,000 in 2022[74]. - The company reported a loss before tax of HKD 11,822,000 in 2023 compared to a profit of HKD 692,561,000 in 2022[74]. - The group reported a loss attributable to owners of HKD 72,968,000 for the year ended December 31, 2023, compared to a profit of HKD 482,146,000 for the year ended December 31, 2022[137]. Revenue Breakdown - Total revenue from hotel operations for 2023 was HKD 488,325,000, an increase from HKD 462,692,000 in 2022, representing a growth of approximately 5.3%[57]. - Rental income from properties decreased to HKD 117,665,000 in 2023 from HKD 149,953,000 in 2022, a decline of about 21.5%[57]. - Food and beverage revenue recognized at a point in time was HKD 7,450,000, down from HKD 38,936,000[37]. - The majority of hotel service revenue came from Hong Kong, totaling HKD 482,931,000, compared to HKD 443,515,000 in the previous year, reflecting a growth of about 8.9%[59]. - Revenue from the Chinese market significantly decreased to HKD 5,394,000 in 2023 from HKD 19,177,000 in 2022, a drop of approximately 71.8%[59]. Expenses and Costs - Administrative expenses rose by 47% to HKD 85.98 million, compared to HKD 58.36 million in the previous year[5]. - Financial costs surged by 142% to HKD 60.04 million, up from HKD 24.8 million in 2022[5]. - The total tax expense incurred by the company was HKD 73,040,000 in 2023, compared to HKD 41,227,000 in 2022, which is an increase of approximately 77.5%[117]. - The depreciation expense for property, plant, and equipment was HKD 124,235,000 in 2023, up from HKD 104,012,000 in 2022, representing an increase of about 19.4%[110]. Cash Flow and Financing - Cash and cash equivalents at the end of the year increased to HKD 334.48 million from HKD 286.68 million in 2022[13]. - The company experienced a net cash outflow from financing activities of HKD 103.79 million, compared to an inflow of HKD 316.92 million in 2022[13]. - New bank loans added during the year amounted to HKD 98.25 million, a significant decrease from HKD 2.06 billion in the previous year[13]. Investment Properties - As of December 31, 2023, the carrying value of investment properties is HKD 4,685,260,000, a decrease from HKD 4,732,940,000 in 2022[35]. - The fair value of investment properties was assessed by independent valuers, with the valuation methodology based on the income approach, considering current rental income and potential future income[133]. - The fair value of investment properties at the end of 2023 was HKD 4,685,260,000, down from HKD 4,732,940,000 in 2022, reflecting a decrease of 1.0%[150]. - The group recognized a fair value loss of HKD 93,700,000 for investment properties in 2023, compared to a loss of HKD 13,324,000 in 2022, indicating a significant increase in losses[150]. Dividends - The company did not recommend the payment of a final dividend for the year ended December 31, 2023, due to various operational challenges[5]. - The company did not declare or propose any dividends to ordinary shareholders for the years ended December 31, 2023, and December 31, 2022[118]. Employee Compensation - The total compensation for executive directors amounted to HKD 25,306,000 for the year ended December 31, 2023[91]. - Total employee compensation, including directors' remuneration, increased to HKD 178,916,000 in 2023 from HKD 146,840,000 in 2022, reflecting a rise of approximately 21.9%[110]. Tax and Deferred Tax - Deferred tax liabilities increased to HKD 21,177,000 from HKD 5,374,000, indicating a significant rise in tax obligations[97]. - The group confirmed a deferred tax liability of HKD 0 for undistributed profits from its Chinese subsidiaries, a decrease from HKD 328,000 in 2022[116]. - Deferred tax assets and liabilities are calculated based on the expected tax rates applicable at the time of asset realization or liability settlement[49]. Stock Options and Governance - The granting of stock options to directors, senior executives, or major shareholders requires approval from independent non-executive directors[200]. - If the board proposes to grant stock options that result in the issuance of shares exceeding 0.1% of the issued shares, shareholder approval is required[200]. - The total value of stock options granted must exceed HKD 5,000,000 based on the closing price on the grant date, necessitating further shareholder approval[200]. - All related parties must abstain from voting on the stock option grants at the shareholders' meeting[200].
顺豪物业(00219) - 2023 - 年度财报