Financial Performance - Hotel portfolio revenue for the first half of 2024 was HKD 772.9 million, representing a year-on-year increase of 7.2% compared to HKD 720.9 million in the first half of 2023[16]. - Total rental income after service fees decreased by 19.0% to HKD 191.1 million, down from HKD 235.8 million in the previous year[16]. - Profit attributable to unit holders, excluding changes in investment property and derivative financial instruments, fell by 95.4% to HKD 4.3 million from HKD 94.3 million[16]. - Distributable income decreased by 75.1% to HKD 34.0 million compared to HKD 136.8 million in the same period last year[16]. - Total revenue for the six months ended June 30, 2024, was HKD 191,166, a decrease of 18.9% from HKD 235,745 in the same period of 2023[83]. - Net property income for the same period was HKD 180,956, down 19.9% from HKD 225,954 year-over-year[83]. - The net profit after tax for the first half of 2024 was HKD 43.0 million, a significant decline of 93.2% from HKD 631.0 million in the same period last year[30]. - The total segment profit for the group was HKD 180,956,000 for the six months ended June 30, 2024, down from HKD 225,954,000 in the same period of 2023, reflecting a decrease of approximately 19.9%[134]. Rental and Income Details - Total rental income (before service fees) decreased by 15.7% year-on-year to HKD 229.0 million in the first half of 2024, with fixed rental income stable at HKD 111.9 million and variable rental income down 26.9% to HKD 116.2 million[21]. - The total rental income after deducting service fees was HKD 191.1 million, down 19.0% year-on-year[22]. - Total rental agreements include a fixed base rent of HKD 225.0 million per year and a floating rent based on 50% of total operating profit, reduced from the previous 70% threshold[59]. - Rental income from the main lessee, GE (LHIL) Lessee Limited, was HKD 111,885,000, slightly down from HKD 116,226,000 in the previous year, indicating a decline of about 2.9%[94]. - Total rental income from the main tenant decreased to 228,111 million HKD for the six months ended June 30, 2024, down from 270,509 million HKD in the prior period, a decline of approximately 15.66%[130]. Asset and Valuation - The total value of the hotel portfolio as of June 30, 2024, was HKD 15,725 million, slightly up from HKD 15,662 million at the end of 2023[16]. - The valuation of the hotel investment portfolio increased from HKD 15,662.0 million at the end of December 2023 to HKD 15,725.0 million by June 30, 2024[18]. - The fair value of investment properties (hotel portfolio) increased slightly by HKD 37.4 million, compared to a substantial increase of HKD 552.2 million in the previous year[28]. - The fair value of the Hong Kong Langham Hotel was HKD 5,420,000,000 as of June 30, 2024, compared to HKD 5,460,000,000 at the end of 2023, indicating a slight decrease[99]. - The fair value of the Hong Kong Cordis Hotel was HKD 6,750,000,000 as of June 30, 2024, up from HKD 6,660,000,000 at the end of 2023, reflecting an increase[99]. Debt and Financing - The debt ratio as of June 30, 2024, was 38.1%, a slight improvement from 38.3% at the end of 2023[16]. - The net bank loan repayment of HKD 257.9 million in December 2023 reduced the outstanding loan balance in the first half of 2024 compared to the same period in 2023, despite a 21.2% increase in interest expenses[18]. - The average annual interest rate on bank loans rose to 5.4% in the first half of 2024, an increase of 1.1 percentage points from the first half of 2023[18]. - Financing costs increased by 48.7% to HKD 162.8 million, up from HKD 109.5 million in the previous year, primarily due to a 21.2% rise in bank loan interest expenses[27]. - The group expects to refinance a bank financing amount of HKD 6,247,600,000, ensuring sufficient funds to meet its financial obligations[91]. Visitor and Market Trends - The number of visitors to Hong Kong in the first half of 2024 increased by 64% year-on-year, reaching 21 million, although overnight visitors were only 76% of the levels seen in 2018[17]. - The company anticipates an increase in business demand and visitor numbers, supported by high-quality operations and prime locations[19]. Corporate Governance and Compliance - The trust group has been compliant with all applicable corporate governance codes and has adopted some best practices as per the corporate governance code[53]. - The trust group is committed to maintaining high standards of corporate governance to enhance its image and create value for unit holders[50]. - The trust group is structured as a fixed unit investment trust, only allowed to invest in the securities and other interests of a single entity[51]. - The board of directors of the trust manager is required to consist of the same individuals who serve as directors of the company, ensuring alignment in governance[53]. - The independent non-executive directors will review the performance of the Eagle Point priority contract annually and disclose the results in the annual report[55]. Employee and Operational Insights - The total number of employees at the hotels remained stable compared to December 31, 2023, with competitive salary levels and performance-based bonuses[70]. - The trust group's governance structure includes a competitive compensation package for employees, including salary, bonuses, and retirement benefits[70]. - The company reported a decrease in accrued liabilities to HKD 22,687,000 from HKD 24,701,000, a reduction of 8.2%[116]. - The total compensation for directors and senior management was HKD 1,811,000 for the current period, compared to HKD 1,915,000 for the same period in 2023, reflecting a decrease of about 5.4%[136]. Share and Unit Information - The total number of issued units as of June 30, 2024, is 3,374,301,602, representing an increase of 55,432,596 units or 1.64% compared to December 31, 2023[64]. - The issued share capital as of June 30, 2024, was HKD 1,687,151, with a total of 3,374,301,602 shares issued[122]. - The company issued additional shares to cover hotel management fees, increasing the total number of shares issued[121]. Sustainability and Community Engagement - The trust group is committed to sustainable development through its CONNECT program, focusing on governance, employees, community, and environmental responsibility[71]. - The trust group emphasizes long-term value creation through sustainable practices that enhance community quality of life[71].
朗廷-SS(01270) - 2024 - 中期财报