恒泰裕集团(08081) - 2024 - 中期财报

Revenue and Income - Revenue for the six months ended 30 June 2024 increased to HK$38.072 million, up from HK$34.270 million in the same period in 2023[6] - Total revenue for the six months ended 30 June 2024 was HK$38.072 million, compared to HK$34.270 million in the same period in 2023, representing an increase of 11.1%[21][23] - Revenue from the hospitality and related services segment increased to HK$32.958 million in 2024 from HK$31.562 million in 2023, a growth of 4.4%[21][23] - Loan interest income from the money lending business rose significantly to HK$5.113 million in 2024, up from HK$2.665 million in 2023, a 91.8% increase[21][23] - Revenue from food and beverage sales in the hotel business grew to HK$19.433 million in 2024 from HK$18.254 million in 2023, a 6.5% increase[24] - Revenue from hospitality and related services in Australia increased by approximately HK$1,396,000 (4$32,958,000 for the six months ended 30 June 2024[70] - The Group recorded interest income of approximately HK$5,113,000 from its money lending business, a significant increase from HK$2,665,000 in 2023[74] Costs and Expenses - Cost of sales for the six months ended 30 June 2024 was HK$5.577 million, compared to HK$4.835 million in 2023[6] - Administrative expenses decreased to HK$41.342 million in 2024 from HK$45.905 million in 2023[6] - Finance costs decreased to HK$3.157 million in 2024 from HK$3.933 million in 2023[6] - Total depreciation and amortization expenses increased to HK$6.408 million in 2024 from HK$5.796 million in 2023, a 10.6% rise[21][23] - Staff costs, including directors' emoluments, increased to HK$19.830 million in 2024 from HK$20.322 million in 2023, a 2.4% decrease[26] - The impairment loss on contract assets, accounts receivable, loan, and interest receivables rose to HK$6.408 million in 2024 from HK$5.796 million in 2023, a 10.6% increase[26] - Staff costs, including Directors' salaries, allowances, and bonuses, totaled approximately HK$19,831,000 for the period under review, compared to HK$20,322,000 in 2023[110] Profit and Loss - The company reported a loss before tax of HK$23.712 million for the six months ended 30 June 2024, compared to a profit of HK$46.664 million in 2023[6] - Total comprehensive income for the period was a loss of HK$25.582 million in 2024, compared to a profit of HK$75.260 million in 2023[7] - Loss per share for the six months ended 30 June 2024 was HK$0.46, compared to earnings per share of HK$0.87 in 2023[7] - The company reported a loss before tax of HK$23.712 million for the six months ended 30 June 2024, compared to a profit before tax of HK$46.664 million in the same period in 2023[21][23] - The company reported a loss attributable to shareholders of HK$23,672,000 for the six months ended 30 June 2024, compared to a profit of HK$46,743,000 in the same period in 2023[31] - The company reported a loss of approximately HKD 23,712,000 for the six months ended June 30, 2024, compared to a profit of HKD 46,664,000 in the same period in 2023, primarily due to the absence of a gain from the deemed disposal of a subsidiary in 2023[63] Assets and Liabilities - Total non-current assets decreased to HK$291,268,000 from HK$296,752,000, a decline of 1.8%[8] - Current assets decreased to HK$136,856,000 from HK$144,750,000, a decline of 5.5%[8] - Cash and cash equivalents decreased to HK$26,469,000 from HK$32,507,000, a decline of 18.6%[8] - Total current liabilities decreased to HK$86,742,000 from HK$95,958,000, a decline of 9.6%[9] - Net current assets increased to HK$50,114,000 from HK$48,792,000, an increase of 2.7%[9] - Total equity decreased to HK$291,398,000 from HK$316,980,000, a decline of 8.1%[9] - Accumulated losses increased to HK$945,428,000 from HK$882,939,000, an increase of 7.1%[10] - Consolidated reserves decreased to HK$240,402,000 from HK$297,428,000, a decline of 19.2%[11] - Total assets of the Group as of 30 June 2024 were approximately HK$428,124,000, with cash and cash equivalents of HK$1,435,000[90] - Shareholders' equity as of 30 June 2024 was approximately HK$291,962,000[91] - The Group's borrowings as of 30 June 2024 were approximately HK$74,759,000, with 60,853,000 secured and 13,906,000 unsecured[91] Cash Flow - Net cash flow from operating activities for the six months ended 30 June 2024 was HK$6,361 thousand, compared to a net cash outflow of HK$23,962 thousand in the same period in 2023[12] - Net cash flow used in investing activities for the six months ended 30 June 2024 was HK$15,298 thousand, compared to a net cash inflow of HK$34,669 thousand in the same period in 2023[12] - Net cash flow from financing activities for the six months ended 30 June 2024 was HK$3,832 thousand, compared to a net cash outflow of HK$19,313 thousand in the same period in 2023[12] - Cash and cash equivalents at the end of the period were HK$1,435 thousand, a decrease from HK$5,713 thousand at the end of the same period in 2023[12] Segment Performance - The Group has four reportable operating segments: hospitality and related services in Australia, services through network media, money lending business, and assets investments business[18] - Revenue and expenses are allocated to the reportable segments based on sales generated and expenses incurred by those segments[18] - Assets and liabilities are allocated to the reportable segments, excluding unallocated corporate assets and liabilities[18] - Segment profit/(loss) is measured using adjusted profit/(loss) before tax, which excludes bank interest income, non-lease-related finance costs, dividend income, net gains on disposals of subsidiaries, and head office and corporate expenses[18] Investments and Fair Value - Share of results of associates showed a loss of HK$9.951 million in 2024, compared to a loss of HK$7.129 million in 2023[6] - Fair value loss on financial assets at FVTPL was HK$3.714 million in 2024, compared to a loss of HK$1.027 million in 2023[6] - The fair value loss on financial assets at FVTPL increased to HK$3.714 million in 2024 from HK$1.027 million in 2023, a 261.6% increase[21][23] - The Group recorded a fair value loss on financial assets at FVTPL of approximately HK$3,714,000 for the six months ended 30 June 2024, primarily due to the decrease in the fair value of investments in listed equity securities in Hong Kong[78] - The Group recorded a fair value loss on financial assets at FVTOCI of approximately HK$503,000 for the six months ended 30 June 2024, compared to a fair value gain of approximately HK$28,466,000 in 2023[78] - World Biotech Regenerative Medical Group Limited, a significant securities investment, accounted for 6.8$29,190,000[79] - The Group's investment in World Biotech, representing 3.32% equity interest, had an investment cost of HK$28,697,000 and recorded no unrealised gain or dividend income for the six months ended 30 June 2024[79] - World Biotech, founded in 2020, operates a biopharmaceutical drug development centre, a production facility, and a clinical centre under the brand BioCreatrix[80] - The Group's subsidiary, Absolutely Talent Technology Limited, invested HK$40,000,000 in World Biotech in October 2021, acquiring a 4.65% equity interest[81] - World Biotech's net profit guarantee for the two financial years ending 30 September 2025 or its valuation by 31 December 2025 must not be less than agreed amounts, or compensation will be paid to Absolutely Talent Technology Limited[82] - The Group recorded a gain of approximately HK$335,000 from the disposal of 25,000 shares of World Biotech during the six months ended 30 June 2023[82] - As of 30 June 2024, the Group's 35,650 shares (3.32$29,190,000, representing 6.8% of the Group's total assets[82] - World Biotech completed the construction of a GMP-compliant production plant in 2023, enabling it to manufacture clinical trial products and distribute bi-products globally[82] - The Group held 10,650 ordinary shares (48.33% equity) in Luck Key Investment Limited as of 30 June 2024, with a carrying amount of approximately HK$60,740,000, representing 14.2$94,879,000, with a loss attributable to shareholders of approximately HK$19,821,000[84] - Luck Key Group operates 11 health check centers and 2 laboratories in Hong Kong, providing a wide range of medical diagnostic and health check services[83] - The Group plans to continue holding its investments unless changes in strategy or opportunities to realize existing investments arise, aiming to optimize returns and create value for shareholders[85] Borrowings and Financial Instruments - Total interest-bearing borrowings increased to HK$74,759,000 as of 30 June 2024 from HK$65,959,000 as of 31 December 2023[51] - Fixed-rate borrowings increased to HK$13,906,000 as of 30 June 2024 from HK$10,188,000 as of 31 December 2023[51] - Variable-rate borrowings increased to HK$60,853,000 as of 30 June 2024 from HK$55,771,000 as of 31 December 2023[51] - Effective interest rates for fixed-rate borrowings ranged from 10.00$24,799,000, with interest rates ranging from 7.23% to 11.00%[90] - The Group's gearing ratio as of 30 June 2024 was 0.32 times, and its net debt-to-equity capital ratio was 0.43 times[90] - Effective interest rates on fixed-rate borrowings ranged from 10.00% to 11.00%, and on variable-rate borrowings from 7.23% to 7.40% as of 30 June 2024[94] - The Group's borrowing facilities as of 30 June 2024 were approximately HK$93,452,000, with HK$74,759,000 utilized[90] - Certain borrowing facilities were secured by freehold land and buildings valued at approximately HK$82,373,000 as of 30 June 2024[96] - Subsidiary EFL issued convertible loan notes totaling HKD 7.6 million for general working capital, with an extended maturity date of September 30, 2024[124] - As of June 30, 2024, HKD 300,000 of the convertible loan notes were redeemed, and no conversions occurred[124] - The outstanding principal amount of convertible notes as of 30 June 2024 was HK$7,300,000, down from HK$7,600,000 as of 31 December 2023[121] - The convertible notes issued by EFL have a maturity date of 30 September 2024 and can be converted into ordinary shares of EFL[121] - The full exercise of the conversion right for the outstanding convertible notes would not result in the issuance of more than 5$129,000,000 loan and a HK$67,574,473 margin loan[100] - Ever Robust fully repaid the HK$129,000,000 loan and HK$67,574,473 margin loan by 19 December 2017 and no longer holds shares in Convoy[100] - On 6 March 2018, a case management conference was held for the Convoy Proceedings, with amended claims seeking declarations of nullity for share allotments and orders for damages and equitable compensation[101][103] - On 27 July 2018, Ever Robust received a sealed order allowing the Plaintiffs to file and serve an amended statement of claim, with 11 additional parties ordered to join the proceedings[102] - Ever Robust filed its defense on 10 December 2018, asserting that the Plaintiffs are not entitled to any relief in the Convoy Proceedings[104] - On 2 January 2018, Ever Robust received a petition from Zhu Xiao Yan seeking orders to declare share placements void and claim damages for shareholding dilution, with Ever Robust holding no shares in Convoy as of that date[105] - The Zhu Proceedings were stayed on 6 March 2018 pending the outcome of the Convoy Proceedings[106] - The Group did not have any material contingent liabilities as of 30 June 2024, the same as in 2023[109][113] - The Group has not made any provisions for legal proceedings due to the inability to reliably assess potential liabilities[108][112] Corporate Governance and Shareholder Information - The company's authorized share capital is 20,000,000,000 ordinary shares with a nominal value of HKD 0.01 each, and the issued and fully paid shares as of June 30, 2024, were 5,156,035,108 shares[55] - Ng Ting Kit holds a 9.64% beneficial interest in the company's shares, totaling 497,180,000 shares[120] - King's Group Capital Limited, wholly owned by Ng Ting Kit, holds a 5.06% interest in the company's shares, totaling 260,800,000 shares[120] - The total issued shares of the company as of 30 June 2024 were 5,156,035,108[120] - No share options were outstanding as of 30 June 2024, compared to none as of 31 December 2023[119] - The maximum entitlement for each participant under the share option scheme does not exceed 1% of the aggregate number of shares issued and issuable in any 12-month period[126][129] - The share option scheme allows for a nominal consideration of HKD 1 upon acceptance of the grant[126][129] - The exercise price of options cannot be less than the highest of the closing price on the grant date, the average closing price for the preceding five trading days, or the nominal value of the shares[127][129] - The share option scheme remains in force for 10 years from its adoption date of June 9, 2020[127][129] - As of January 1, 2024, and June 30, 2024, 533,623,510 shares were available for grant under the scheme, representing approximately 10.35% of the issued share capital[127][129] - No options were granted under the scheme during the six months ended June 30, 2024[127][129] - There were no outstanding, granted, exercised, canceled, or lapsed share options under the scheme as of January 1, 2024, and June 30, 2024[128][129] - Non-executive Director Mr. Ng Ting Ho holds directorships in Way Union Finance Limited and Delight Sky Finance Limited, which are engaged in money lending business in Hong Kong[131] - The company has established an Audit Committee consisting of three independent non-executive directors, with Mr. Wong Siu Keung, Joe serving as the chairman during the review period[135] - The Audit Committee reviewed the Group's unaudited condensed consolidated results for the six months ended 30 June 2024 and confirmed compliance with applicable accounting standards and GEM Listing Rules[135] - The Board of Directors includes one