美丽华酒店(00071) - 2024 - 中期财报

Revenue Growth and Financial Performance - Group revenue increased by 22.7% to HKD 1.401 billion compared to HKD 1.142 billion in the same period last year[4] - Net profit for the period rose slightly by 1.8% to HKD 400 million, compared to HKD 393 million in 2023[4] - Basic profit attributable to shareholders decreased by 0.5% to HKD 398 million after deducting a fair value loss of HKD 17.8 million on investment properties[4] - Total revenue for H1 2024 was HKD 1.4 billion, a 22.7% increase from HKD 1.14 billion in H1 2023[18] - Gross profit for H1 2024 was HKD 490.1 million, up from HKD 461.0 million in H1 2023[18] - Profit before tax for H1 2024 was HKD 465.0 million, compared to HKD 453.7 million in H1 2023[18] - Net profit attributable to shareholders for H1 2024 was HKD 373.1 million, slightly down from HKD 380.1 million in H1 2023[18] - Basic and diluted earnings per share for H1 2024 were HKD 0.54, compared to HKD 0.55 in H1 2023[18] - Net profit for the six months ended June 30, 2024, was HK$400.48 million, compared to HK$393.22 million in the same period in 2023[20] - Total comprehensive income for the six months ended June 30, 2024, was HK$414.10 million, up from HK$291.99 million in the same period in 2023[20] - Net profit for the six months ended June 30, 2024, was HKD 373.11 million, compared to HKD 380.13 million in the same period in 2023[23] - Total comprehensive income for the six months ended June 30, 2024, was HKD 391.03 million, a decrease from HKD 287.06 million in the same period in 2023[23] - Total revenue for the six months ended June 30, 2024, was HKD 1,400,837,000, compared to HKD 1,142,095,000 for the same period in 2023, representing a 22.6% increase[31][32] - Adjusted EBITDA for the six months ended June 30, 2024, was HKD 455,891,000, compared to HKD 440,861,000 in 2023, a 3.4% increase[31][32] - Comprehensive profit before tax for the six months ended June 30, 2024, was HKD 465,023,000, compared to HKD 453,698,000 in 2023, a 2.5% increase[31][32] - Pre-tax profit for the six months ended June 30, 2024 was HKD 284,933 thousand, compared to HKD 245,947 thousand in the same period in 2023[35] Business Segment Performance - The Mira Hong Kong and Moon Hotel achieved occupancy rates exceeding 90% during the period[7] - Rental business revenue increased slightly to HKD 401.2 million despite a challenging business environment[7] - Catering business revenue increased by 34% year-on-year, with holiday food sales reaching a record high[8] - Tourism business revenue surged by 66% year-on-year, driven by diversified travel experiences and partnerships with major brands[8] - The Mira Hong Kong and Moonscape Hotel achieved occupancy rates of 91.6% and 94.6% respectively, with average room rates increasing by 8.3% and 2.8%[11] - Hotel and serviced apartment business revenue grew by 11.1% to HKD 296.9 million, with EBITDA increasing by 15.1% to HKD 75.4 million[11] - Rental business revenue remained stable at HKD 401.2 million, with EBITDA at HKD 340.4 million[12] - The company's catering business revenue increased by 3.0% YoY to HKD 142.8 million, with a strong 34% growth in festive food sales to HKD 16.6 million[14] - The travel business revenue surged by 66.0% YoY to HKD 560 million, with EBITDA increasing by 283.2% to HKD 40.1 million[15] - Revenue from the rental business increased to HKD 401,156,000 in 2024 from HKD 398,948,000 in 2023, a 0.6% increase[31][32] - Hotel and serviced apartment business revenue rose to HKD 296,913,000 in 2024 from HKD 267,162,000 in 2023, an 11.1% increase[31][32] - Revenue from the catering business increased to HKD 142,787,000 in 2024 from HKD 138,607,000 in 2023, a 3.0% increase[31][32] - Tourism business revenue surged to HKD 559,981,000 in 2024 from HKD 337,378,000 in 2023, a 66.0% increase[31][32] - Rental business adjusted EBITDA was HKD 340,418,000 in 2024, a slight decrease from HKD 348,979,000 in 2023[31][32] - Hotel and serviced apartment business adjusted EBITDA increased to HKD 75,392,000 in 2024 from HKD 65,510,000 in 2023, a 15.1% increase[31][32] - Tourism business adjusted EBITDA rose significantly to HKD 40,102,000 in 2024 from HKD 10,464,000 in 2023, a 283.3% increase[31][32] Strategic Initiatives and Market Expansion - The company focused on expanding its market share among mainland tourists, particularly along high-speed rail routes[7] - The rental business adjusted its office leasing portfolio to mitigate operational risks and increased the proportion of semi-retail tenants[7] - The company actively organized themed cultural markets and introduced unique brands to attract foot traffic to its malls[7] - The company collaborated with local government and organizations to host large-scale regional events, boosting foot traffic and consumption in the Tsim Sha Tsui area[7] - The company plans to enhance hotel facilities and improve transportation connectivity in the Tsim Sha Tsui area to boost occupancy rates and room prices[9] - The company expects the Hong Kong economy to benefit from potential US interest rate cuts and new measures to attract mainland tourists, including the "Individual Visit Scheme" expansion and the Shenzhen-Zhongshan Bridge[9] - The company will continue to strengthen e-commerce development and diversify its catering and tenant mix to enhance market share and customer experience[9] - The company has adjusted its leasing strategy to reduce operational risks, including diversifying tenant industries and splitting large office spaces into smaller units[12] - The company organized various promotional activities, such as the "Tsim Sha Tsui Night Vibrancy" event, to stimulate regional economy and increase foot traffic at Mira Mall[12] Financial Position and Cash Flow - The fair value of the company's investment properties decreased by HKD 17.8 million, with the total fair value standing at HKD 15.1 billion as of June 30, 2024[13] - The company's overall effective annual interest rate for fixed deposits reached 4.9% in H1 2024, with total cash of HKD 5.8 billion and no loans[17] - Investment properties decreased to HK$15.09 billion as of June 30, 2024, from HK$15.31 billion as of December 31, 2023[21] - Cash and bank balances increased to HK$5.79 billion as of June 30, 2024, from HK$5.57 billion as of December 31, 2023[21] - Total assets minus current liabilities stood at HK$21.44 billion as of June 30, 2024, compared to HK$21.23 billion as of December 31, 2023[21] - Non-current liabilities decreased to HK$577.70 million as of June 30, 2024, from HK$557.33 million as of December 31, 2023[22] - Equity attributable to the company's shareholders increased to HK$20.67 billion as of June 30, 2024, from HK$20.49 billion as of December 31, 2023[22] - Non-controlling interests increased to HK$189.80 million as of June 30, 2024, from HK$186.53 million as of December 31, 2023[22] - Cash generated from operating activities for the six months ended June 30, 2024, was HKD 465.48 million, down from HKD 532.77 million in the same period in 2023[25] - Cash used in investing activities for the six months ended June 30, 2024, was HKD 2.90 billion, a decrease from HKD 3.67 billion in the same period in 2023[25] - Cash and cash equivalents as of June 30, 2024, were HKD 510.04 million, compared to HKD 865.43 million as of June 30, 2023[25] - Total equity as of June 30, 2024, was HKD 20.86 billion, up from HKD 20.21 billion as of June 30, 2023[23] - Retained earnings as of June 30, 2024, were HKD 18.24 billion, compared to HKD 17.63 billion as of June 30, 2023[23] - Dividends paid to non-controlling interests for the six months ended June 30, 2024, were HKD 19.80 million, up from HKD 2.58 million in the same period in 2023[23] - Proceeds from the sale of investment properties for the six months ended June 30, 2024, were HKD 190.05 million, compared to none in the same period in 2023[25] - Interest received for the six months ended June 30, 2024, was HKD 146.38 million, up from HKD 127.49 million in the same period in 2023[25] Dividends and Shareholder Returns - The company declared an interim dividend of HKD 0.23 per share, payable on October 14, 2024[5] - The company declared an interim dividend of HKD 0.23 per share for the six months ended June 30, 2024, totaling HKD 158,921 thousand[40] - Basic and diluted earnings per share for the six months ended June 30, 2024 were HKD 0.6, based on a profit attributable to shareholders of HKD 373,111 thousand and 690,959,695 shares issued[42][44] Operational Expenses and Costs - Operating and other expenses rose by HKD 31.3 million (32.8%) YoY, but the increase was lower than the revenue growth rate[16] - Employee compensation and benefits for the six months ended June 30, 2024 totaled HKD 284,933 thousand, including HKD 273,398 thousand in salaries, wages, and other benefits, and HKD 11,535 thousand in defined contribution retirement plan contributions[35] - Tax expense for the six months ended June 30, 2024 was HKD 64,545 thousand, including HKD 55,320 thousand in current tax and HKD 9,225 thousand in deferred tax[38] Investment Properties and Fair Value Adjustments - The fair value of investment properties decreased by HKD 17,843 thousand in the six months ended June 30, 2024, compared to a decrease of HKD 17,100 thousand in the same period in 2023[45] - The company added HKD 61,067 thousand in right-of-use assets in the six months ended June 30, 2024, compared to HKD 9,179 thousand in the same period in 2023[46] - Total lease payments for operating stores in the six months ended June 30, 2024 were HKD 773 thousand, including HKD 21 thousand in fixed payments and HKD 752 thousand in variable payments[48] Accounts Receivable and Payable - Accounts receivable (net of impairment) as of June 30, 2024 were HKD 97,591 thousand, with HKD 47,407 thousand due within one month, HKD 10,058 thousand due within one to two months, and HKD 40,126 thousand due over two months[49] - Accounts receivable and other receivables expected to be collected within one year, except for HKD 12,988,000 (as of December 31, 2023: HKD 9,527,000) expected to be collected after more than one year[50] - Accounts payable and other payables as of June 30, 2024, include HKD 95,568,000 in accounts payable and HKD 254,767,000 in other payables and accrued expenses[51] - Total accounts payable and other payables as of June 30, 2024, amounted to HKD 632,421,000, compared to HKD 469,564,000 as of December 31, 2023[51] Share Capital and Ownership - Issued and fully paid share capital remained unchanged at HKD 2,227,024,000 as of June 30, 2024, and December 31, 2023[53] - Li Ka-shing holds 345,999,980 shares, representing 50.08% of the total issued shares of Miramar Hotel and Investment Company[70] - Li Ka-shing holds 100% of the ordinary A shares and non-voting B shares of Henderson Land Development Company[71] - Henderson Land Development Company holds 72.50% of the shares of Henderson Land Property Company[71] - Henderson Land Development Company holds 69.27% of the shares of Henderson Land Development Company[71] - Li Ka-shing is deemed to hold 345,999,980 shares of Miramar Hotel and Investment Company through various trusts and subsidiaries[74] - The group has no share option schemes or arrangements for directors to acquire shares or debentures[76] Employee Compensation and Development - The total number of full-time employees in the group is 1,336, with 1,303 in Hong Kong, 19 in Mainland China, and 14 overseas[77] - The group employs an equal pay policy and regularly reviews its compensation and benefits plans to ensure compliance with market practices[77] - The group values teamwork and encourages employees to take responsibility and work professionally to achieve the group's mission and vision[77] - The company has consistently invested in employee training and development since 2011, earning recognition from the Employees Retraining Board for its efforts in promoting lifelong learning and human resource development[78] Corporate Governance and Leadership - The company's Chairman and CEO, Dr. Li Ka-shing, has held the dual role since 2014, with the Board believing this structure ensures consistent leadership and efficient strategy execution[79] - The unaudited interim financial results for the six months ended June 30, 2024, were reviewed by KPMG in accordance with Hong Kong Standard on Review Engagements 2410[80] - The Audit Committee reviewed the financial performance for the six months ended June 30, 2024, and discussed internal controls, risk management, and financial reporting with the Group's audit, risk management, and corporate services director, as well as the independent auditor[81] - The company did not purchase, sell, or redeem any of its listed securities during the reporting period[82] - The interim financial report for the six months ended June 30, 2024, was prepared in accordance with Hong Kong Accounting Standard 34 "Interim Financial Reporting"[84] - KPMG's review of the interim financial report did not identify any material misstatements, confirming compliance with Hong Kong Accounting Standard 34[86] Related Party Transactions - The total amount of forfeited contributions used to offset employer contributions for the six months ended June 30, 2024, was HKD 138,000 (HKD 177,000 for the same period in 2023)[54] - Fair value of Hong Kong-listed equity securities classified as Level 1 was HKD 302,228,000 as of June 30, 2024, compared to HKD 221,059,000 as of December 31, 2023[57] - Fair value of non-listed investment funds classified as Level 2 was HKD 162,341,000 as of June 30, 2024, compared to HKD 13,340,000 as of December 31, 2023[57] - No transfers between Level 1 and Level 2 instruments, and no transfers into or out of Level 3 were recorded during the six months ended June 30, 2024[58] - The fair value of non-listed investment funds classified as Level 3 was HKD 51,885,000 as of June 30, 2024[57] - The fair value of financial assets and liabilities not measured at fair value is assumed to be similar to their carrying amounts due to their short-term maturity[59] - Capital commitments for property-related future expenses as of June 30, 2024, amounted to HKD 18,963 thousand, compared to HKD 6,078 thousand as of December 31, 2023[60] - Property agency service fees payable to a subsidiary of the ultimate holding company amounted to HKD 1,500 thousand for both 2024 and 2023[62] - Management fee income from a subsidiary of the ultimate holding company increased to HKD 458 thousand in 2024 from HKD 400 thousand in 2023[62] - Hotel and catering service income from subsidiaries and associates of the ultimate holding company increased to HKD 709 thousand in 2024 from HKD 443 thousand in 2023[62] - Rental income from a company controlled by a director for office units in Miramar Plaza Tower A amounted to HKD 10,416 thousand in 2024, slightly up from HKD 10,381 thousand in 2023[62] - Rental income from a subsidiary of the ultimate holding company for shops in Miramar Plaza Phase 1 increased to HKD 18,017 thousand in