Century City International (355) H1 2024 earnings summary

Executive summary

• Consolidated loss attributable to shareholders widened to HK$422.6 million for H1 2024, compared to HK$243.7 million in H1 2023, mainly due to lower property sales, higher finance costs, and increased taxation charges.

• Revenue for H1 2024 was HK$1,390.1 million, down 13.3% year-over-year; gross profit declined 35.8% to HK$412.3 million, and EBITDA fell 70% to HK$87.3 million.

• Basic loss per share increased to HK(14.44) cents from HK(8.66) cents year-over-year.

• Hotel business segment achieved nearly 60% year-on-year growth in operating profit before depreciation, despite a challenging environment.

• No interim dividend declared for 2024.

Financial highlights

• Operating loss was HK$279.5 million (H1 2023: HK$84.1 million loss); finance costs rose to HK$652.8 million from HK$523.6 million.

• Net cash flows from operating activities dropped to HK$20.8 million from HK$367.2 million year-over-year.

• Cash and bank balances stood at HK$1,765.8 million as of 30 June 2024, down from HK$2,333.2 million at year-end 2023.

• Net borrowings increased to HK$18,144.8 million from HK$17,785.2 million at year-end 2023.

• Pledged assets totaled HK$29,891.1 million as of 30 June 2024.

Outlook and guidance

• Hong Kong's economy is forecasted to grow 2.5%-3.5% in 2024, with anticipated benefits from expanded tourism initiatives and major events.

• Interest rate cuts in the US are expected to begin in September, which may reduce financial expenses.

• Directors remain optimistic about recovery in Hong Kong and gradual improvement in Mainland China property markets.

• Management remains confident in overcoming macroeconomic challenges due to a diversified asset portfolio.

• No immediate plans for material investments or capital assets beyond current projects.