Hotel Royal Ltd.SGX: H12

Financial Statements And Related Announcement: : Full Yearly Results

Feb 28, 2025 at 9:56 AM UTC · Issued by Hotel Royal Ltd.

TABLE OF CONTENTS

	Page
Statements of Financial Position (Group and Company)	1
Consolidated Statement of Profit or Loss	3
Consolidated Statement of Other Comprehensive Income	4
Statements of Changes in Equity (Group and Company)	5
Consolidated Statement of Cash Flows	7
Notes to the Condensed Interim Financial Statements	9
Other Information Required by Listing Rule Appendix 7.2
Audit	27
Review of Group Performance	27
Variance from a Forecast or Prospect Statement	29
Outlook	29
Dividends	30
- Disclosure Pursuant to Rule 706A of the Listing Manual	31
Interested Person Transactions	31
Confirmation of Undertakings from Directors and	31
Executive Officers

Persons occupying managerial positions who are related
to the Directors, Chief Executive Officer or Substantial	31
Shareholders

INTERIM FINANCIAL INFORMATION

FOR THE SECOND HALF AND FINANCIAL YEAR ENDED 31 DECEMBER 2024

STATEMENTS OF FINANCIAL POSITION

For the financial year ended 31 December

			The Group			The Company
		31 December	31 December	1 January	31 December	31 December	1 January
		2024	2023	2023	2024	2023	2023
	Note		(Restated)*	(Restated)*		(Restated)*	(Restated)*
ASSETS
Current assets
Cash and bank balances		19,559	22,658	47,023	3,583	6,813	33,444
Financial assets at fair value
through profit or loss	4	6,493	5,294	3,834	3,900	2,057	1,866
Financial assets at fair value
through other comprehensive
income	5	5,166	5,239	6,190	178	839	777
Trade receivables	6	2,308	2,443	1,826	292	548	356
Other receivables, deposits
and prepaid expenses	7	1,920	1,940	1,758	425	131	154
Inventories		885	974	716	93	124	95
Income tax recoverable		69	53	83	-	-	-
Total current assets		36,400	38,601	61,430	8,471	10,512	36,692
Non-current assets
Subsidiaries		-	-	-	283,018	259,343	227,769
Financial assets at fair value
through other comprehensive
income	5	19,424	18,804	18,581	15,386	15,553	15,500
Other assets		916	901	127	226	708	53
Property, plant and equipment	8	711,161	672,412	644,157	261,869	252,721	239,863
Investment properties	9	130,424	133,362	136,210	37,367	37,367	35,003
Total non-current assets		861,925	825,479	799,075	597,866	565,692	518,188
Total assets		898,325	864,080	860,505	606,337	576,204	554,880
LIABILITIES AND
EQUITY
Current liabilities
Bank loans	10	5,234	8,759	21,375	460	720	720
Trade payables		5,018	4,310	4,074	2,468	2,180	2,188
Other payables	11	5,319	6,033	4,723	641	3,508	2,708
Income tax payable		2,189	2,563	1,195	950	1,363	842
Total current liabilities		17,760	21,665	31,367	4,519	7,771	6,458
Non-current liabilities
Other payables	11	37	36	35	10,896	8,442	14,602
Retirement benefit obligations		398	259	359	-	-	-
Long-term bank loans	10	157,461	149,971	152,930	80,455	71,860	70,947
Deferred tax liabilities		12,213	10,657	10,362	879	832	723
Total non-current liabilities		170,109	160,923	163,686	92,230	81,134	86,272

* Certain comparative figures have been restated. Please refer to Note 23 (pages 24 to 26) for further details.

INTERIM FINANCIAL INFORMATION

FOR THE SECOND HALF AND FINANCIAL YEAR ENDED 31 DECEMBER 2024

STATEMENTS OF FINANCIAL POSITION (Continued)

For the financial year ended 31 December

			The Group			The Company
		31 December	31 December	1 January	31 December	31 December	1 January
		2024	2023	2023	2024	2023		2023
	Note		(Restated)*	(Restated)*		(Restated)*	(Restated)*
Capital and reserves
Share capital	12	190,836	190,836	190,836	190,836	190,836	190,836
Asset revaluation reserve		414,415	395,489	372,300	234,708	227,608	214,508
Employee benefit reserve		57	66	15	-	-		-
Fair value reserve		18,120	16,995	16,217	14,411	14,660		14,540
Foreign currency translation
reserve		(19,152)	(24,146)	(14,115)	-	-		-
Retained earnings		106,180	102,252	100,199	69,633	54,195		42,266
Total equity		710,456	681,492	665,452	509,588	487,299	462,150
Total liabilities and equity		898,325	864,080	860,505	606,337	576,204	554,880

* Certain comparative figures have been restated. Please refer to Note 23 (Pages 24 to 26) for further details.

CONSOLIDATED STATEMENT OF PROFIT OR LOSS

For the second half and financial year ended 31 December

				The Group
		6 months ended		12 months ended
		31 December		31 December
		2024	2023	+/(-)	2024	2023	+/(-)
			(Restated)*			(Restated)*
	Note			%			%
Revenue	13	34,210	30,799	11.1	66,753	58,340	14.4
Cost of sales		(15,679)	(14,548)	7.8	(30,979)	(28,243)	9.7
Gross profit		18,531	16,251	14.0	35,774	30,097	18.9
Other income	14	1,305	2,741	(52.4)	3,279	4,994	(34.3)
Distribution costs		(572)	(634)	(9.8)	(1,193)	(1,184)	0.8
Administrative expenses		(10,430)	(8,993)	16.0	(20,356)	(16,811)	21.1
Other expenses		(96)	(645)	(85.1)	(106)	(705)	(85.0)
Finance costs	15	(3,703)	(4,126)	(10.3)	(7,538)	(8,356)	(9.8)
Profit before income tax	16	5,035	4,594	9.6	9,860	8,035	22.7
Income tax expense	17	(1,810)	(1,885)	(4.0)	(3,174)	(3,021)	5.1
Profit for the
period, attributable to
owners of the Company		3,225	2,709	19.0	6,686	5,014	33.3
Earnings per ordinary
share (cents):
Basic	19	2.67	2.24	19.2	5.53	4.15	33.3
Diluted	19	2.67	2.24	19.2	5.53	4.15	33.3

n.m. : not meaningful

* Certain comparative figures have been restated. Please refer to Note 23 (Pages 24 to 26) for further details.

CONSOLIDATED STATEMENT OF OTHER COMPREHENSIVE INCOME For the second half and financial year ended 31 December

			The Group
	6 months ended		12 months ended
		31 December		31 December
	2024	2023	+/(-)	2024	2023	+/(-)
		(Restated)*			(Restated)*
			%			%
Profit for the period	3,225	2,709	19.0	6,686	5,014	33.3
Other comprehensive
income (loss):
Items that will not be
reclassified subsequently
to profit or loss
Net fair value gain on
investments in equity
instruments designated as at
fair value through other
comprehensive income	573	285	100	1,391	841	65.4
Re-measurement of defined
benefit obligations	(9)	8	n.m	(9)	51	n.m
Increase in valuation of
freehold land - hotels	18,926	23,189	(18.4)	18,926	23,189	(18.4)
Total	19,490	23,482	(17.0)	20,308	24,081	(15.7)
Items that may be reclassified
subsequently to profit or loss
Exchange differences on
translation of foreign
operations	9,797	838	100	4,994	(10,031)	n.m
Other comprehensive
income for the period	29,287	24,320	20.4	25,302	14,050	80.1
Total comprehensive income
for the period,
attributable to owners of	32,512	27,029	20.3	31,988	19,064	67.8
the Company

n.m. : not meaningful

* Certain comparative figures have been restated. Please refer to Note 23 (Pages 24 to 26) for further details.

STATEMENTS OF CHANGES IN EQUITY

For the financial year ended 31 December

					Foreign
		Asset	Employee	Fair	currency
	Share	revaluation	benefit	value	translation	Retained
The Group	capital	reserve	reserve	reserve	reserve	earnings	Total

Balance as at 1 January 2023 (as
reported previously)	190,836	372,300	15	16,217	(14,133)	65,884	631,119
Restatement (Note 23)	-	-	-	-	18	34,315	34,333
Balance as at 1 January 2023
(restated)	190,836	372,300	15	16,217	(14,115)	100,199	665,452
Total comprehensive
loss for the year:
Profit for the year	-	-	-	-	-	5,014	5,014
Other comprehensive
income (loss) for
the year	-	23,189	51	778	(10,031)	63	14,050
Total	-	23,189	51	778	(10,031)	5,077	19,064
Transactions with owners,
recognised directly
in equity:
Final dividend (Note 18)	-	-	-	-	-	(3,024)	(3,024)
Balance as at 31 December 2023	190,836	395,489	66	16,995	(24,146)	102,252	681,492
Balance at 1 January 2024
(as reported previously)	190,836	395,489	66	16,995	(23,513)	65,478	645,351
Restatement (Note 23)	-	-	-	-	(633)	36,774	36,141
Balance as at 1 January 2024
(restated)	190,836	395,489	66	16,995	(24,146)	102,252	681,492
Total comprehensive
loss for the year:
Profit for the year	-	-	-	-	-	6,686	6,686
Other comprehensive
income (loss) for
the year	-	18,926	(9)	1,125	4,994	266	25,302
Total	-	18,926	(9)	1,125	4,994	6,952	31,988
Transactions with owners,
recognised directly
in equity:
Final dividend (Note 18)	-	-	-	-	-	(3,024)	(3,024)
Balance as at 31 December
2024	190,836	414,415	57	18,120	(19,152)	106,180	710,456

STATEMENTS OF CHANGES IN EQUITY (Continued)

For the financial year ended 31 December

		Asset	Fair
	Share	revaluation	value	Retained
	capital	reserve	reserve	earnings	Total
The Company
Balance as at 1 January 2023 (as reported
previously)	190,836	214,508	14,540	29,290	449,174
Restatement (Note 23)	-	-	-	12,976	12,976
Balance as at 1 January 2023 (restated)	190,836	214,508	14,540	42,266	462,150
Total comprehensive income
for the year:

Profit for the year	-
Other comprehensive income (loss)
for the year	-
Total	-
Transactions with owners,
recognised directly in equity:
Final dividend (Note 18)	-
Balance as at 31 December 2023	190,836
Balance as at 1 January 2024 (as reported
previously)	190,836
Restatement (Note 23)	-
Balance as at 1 January 2024 (restated)	190,836
Total comprehensive income
for the year:
Profit for the year	-
Other comprehensive income (loss)
for the year	-
Total	-
Transactions with owners,
recognised directly in equity:

-	-	14,975	14,975
13,100	120	(22)	13,198
13,100	120	14,953	28,173
-	-	(3,024)	(3,024)
227,608	14,660	54,195	487,299
227,608	14,660	38,761	471,865
-	-	15,434	15,434
227,608	14,660	54,195	487,299
-	-	18,128	18,128
7,100	(249)	334	7,185
7,100	(249)	18,462	25,313

Final dividend (Note 18)	-	-	-	(3,024)	(3,024)
Balance as at 31 December 2024	190,836	234,708	14,411	69,633	509,588

CONSOLIDATED STATEMENT OF CASH FLOWS

For the financial year ended 31 December

	The Group
	2024	2023
		(Restated)
Operating activities
Profit before income tax	9,860	8,035
Adjustments for:
Allowance for doubtful receivables	3	18
Depreciation expense	7,079	5,962
Dividend income	(477)	(544)
Net fair value gain on financial assets at fair value through profit or loss	(71)	(160)
Loss on disposal of property, plant and equipment	102	30
Write back of impairment loss on property, plant and equipment	(1,267)	(2,933)
Net foreign exchange adjustment gain	(391)	(633)
Fair value (gain) loss on investment properties	(659)	618
Recognition of rental income on a straight-line basis over the lease term	24	27
Interest expense	7,538	8,356
Interest income	(327)	(932)
Recovery of bad debts	-	(11)
Write back of allowance for doubtful receivables	-	(29)
Operating cash flows before movements in working capital	21,414	17,804
Financial assets at fair value through profit or loss	(1,043)	(1,353)
Trade and other receivables	143	(1,656)
Inventories	119	(276)
Trade and other payables	(128)	1,689
Cash generated from operations	20,505	16,208
Dividend received	477	544
Interest paid	(7,538)	(8,356)
Interest received	327	932
Income tax paid	(2,417)	(1,090)
Net cash from operating activities	11,354	8,238
Investing activities
Additions to investment properties	(275)	(396)
Additions to property, plant and equipment	(13,666)	(18,002)
Proceeds from disposal of financial assets held at fair value
through other comprehensive income	1,514	1,895
Proceeds from disposal of property, plant and equipment	53	-
Purchase of financial assets held at fair value through other
comprehensive income	(670)	(269)
Net cash used in investing activities	(13,044)	(16,772)

CONSOLIDATED STATEMENT OF CASH FLOWS (continued)

For the financial year ended 31 December

	The Group
	2024	2023
		(Restated)
Financing activities
Dividends paid	(3,024)	(3,024)
Proceeds from bank loans	12,035	11,073
Repayment of bank loans	(11,092)	(23,274)
Fixed deposits pledged to banks	287	189
Net cash used in financing activities	(1,794)	(15,036)
Net decrease in cash and cash equivalents	(3,484)	(23,570)
Cash and cash equivalents at beginning of year	20,724	44,772
Effect of currency exchange adjustment	569	(478)
Cash and cash equivalents at end of year	17,809	20,724

Cash and cash equivalents consist of :

	The Group
	2024	2023
Cash on hand	136	174
Cash at bank	15,710	15,124
Fixed deposits	3,713	7,360
	19,559	22,658
Less: Fixed deposits pledged	(1,750)	(1,934)
Total	17,809	20,724

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