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The Group recorded a net loss attributable to the equity shareholders of the Company of HK$57.6 million for FY2016 as compared with a net loss attributable to the equity shareholders of the Company of HK$55.1 million in the previous corresponding year. The higher loss was due mainly to the impairment loss on available-for-sale financial assets and higher net realised and unrealised foreign exchange loss which was partially offset by a lower valuation loss on trading securities recognised in the current year and the Group’s share of net gain arising from the disposal of a hotel by a jointly-controlled entity.

The Group’s Investment Holding segment recorded impairment loss on available-for-sale financial assets of HK$14.8 million and net realised and unrealised valuation loss of HK$1.2 million from the Group’s trading securities as at 31 December 2016. Net realised and unrealised foreign exchange loss of HK$14.7 million was also recorded, which mainly arose from the conversion of Sterling Pound denominated securities holdings and Renminbi denominated cash deposits into the functional currency of the company. Overall, the total other net loss of HK$30.7 million was recorded for FY2016 as compared with the total other net loss of HK$25.3 million in the previous corresponding year. During the previous corresponding period, one-off foreign exchange gain of HK$2.8 million was realised as a result of striking off a Group’s dormant subsidiary. Consequently, the Group’s Investment Holding segment reported a loss before tax of HK$54.2 million for FY2016 as compared with a loss before tax of HK$31.2 million in the previous corresponding year.

On the Group’s Hospitality segment, the Group’s U.S. hotel management arm, Richfield Hospitality, lnc. recorded lower management fee income of HK$9.0 million for FY2016, down by HK$1.3 million or 12.6% from HK$10.3 million in the previous corresponding year. The decrease in revenue was offset by lower administrative expenses and resulted in a loss before tax of HK$12.2 million for FY2016 as compared with a loss before tax of HK$15.3 million in the previous corresponding year.

The Sheraton Chapel Hill Hotel, North Carolina, U.S. contributed total revenue of HK$24.4 million as compared with HK$24.9 million from the previous corresponding year. The decrease in revenue with higher administrative expenses and resulted in a lower profit contribution of HK$2.0 million as compared to HK$2.3 million in the previous corresponding year.

The Group’s 51% equity interest in Sceptre Hospitality Resources, LLC (“SHR”), the hospitality industry’s leading expert for reservations connectivity, online channel marketing and revenue/channel-management services, recorded higher revenue of HK$61.8 million, up by HK$12.2 million or 24.6% from HK$49.6 million in the previous corresponding year. However, SHR incurred higher administrative expenses during FY2016 to support the revenue growth, resulting in an operating loss of HK$6.4 million as compared with an operating loss of HK$5.3 million in the previous corresponding year.

The Group’s jointly-controlled entity, Richfield Syracuse Hotel Partners, LLC (“Syracuse”), which owns the Crowne Plaza Syracuse Hotel (“Hotel”), reported a share of operating loss of HK$0.1 million for FY2016 as compared with a share of profit of HK$1.0 million in the previous corresponding year. Following the successful completion of the disposal of the Hotel on 16 May 2016, Syracuse contributed an additional share of profit net of tax arising from the disposal of the Hotel amounting to HK$19.6 million for the year.

The Group recognised share of profit from its associates, S-R Burlington Partners, LLC. and Cosmic Hospitality China Limited, of HK$0.5 million for FY2016, as compared to a share of profit of HK$0.2 million in the previous corresponding year.

Consequently, the Group’s Hospitality segment reported a profit before tax of HK$3.5 million for FY2016 as compared with a loss before tax of HK$17.2 million in the previous corresponding year.

As at 31 December 2016, the Group assessed the availability of future taxable profit against which the tax losses can be utilised and recognised a reduction of the deferred tax assets by HK$10.2 million. This resulted in an income tax expense of HK$10.6 million in FY2016, as compared to an income tax expense of HK$13.6 million in the previous corresponding year.

Basic losses per share for FY2016 was HK15.05 cents, calculated on the weighted average number of ordinary shares of the Company in issue during the year of 382,449,524. The Group’s net tangible assets per share decreased to HK$1.10 as at 31 December 2016, down from HK$1.24 as at 31 December 2015. The board did not propose a final dividend for FY2016.