According to the Zhitong Finance App, Huada Hotel (00201), Shunhao Property (00219), and Shunhao Holdings (00253) jointly announced that compared to the six months ending June 30, 2022, the changes in net profit of Huada Hotel, Shunhao Property and Shunhao Holdings for the mid-term period of 2023 will be roughly as follows:
Huada Hotel expects company owners to account for no more than HK$18 million in net loss after tax and after revaluation and depreciation in mid-2023, while achieving net profit of HK$106 million in the same period in 2022; company owners are expected to account for net profit of not less than HK$17 million after tax, while net profit of HK$145 million for the same period in 2022 will be obtained.
Shunhao Properties expects that in mid-2023, company owners should account for no less than HK$9 million after tax and net profit after revaluation and depreciation, while net profit of HK$61 million for the same period in 2022; company owners are expected to account for net profit of not less than HK$49 million after tax, while net profit of HK$157 million for the same period in 2022 will be obtained.
Shunhao Holdings expects that in mid-2023, company owners should account for no less than HK$3 million after tax and net profit after revaluation and depreciation, while obtaining net profit of HK$3,100 in the same period in 2022; company owners are expected to account for net profit of not less than HK$24 million after tax, while net profit of HK$84 million for the same period in 2022 will be obtained.
According to reports, compared to the mid-2022 period, the decrease in profit due to group owners is expected to be mainly due to reduced hotel revenue due to lower room prices (Huada Hotel, Shunhao Property and Shunhao Holdings each decreased by about 30%-40%); increased hotel operating costs; reduced office rental income (only applicable to Shunhao Property and Shunhao Holdings); maintenance costs for hotels provided after quarantine services; and increased interest expenses.
In mid-2023, the Group's hotels in Hong Kong, China maintained a high occupancy rate, while average room prices declined, mainly due to the slow recovery of the tourism industry.