Staff Costs
Staff costs for the six months ended June 30, 2023 increased by 36.9% as compared to the same period in prior year to US$10.3 million. This was due
to the incremental costs in connection to the post-acquisition operations of AMTD Digital Inc., L’Officiel and AMTD Assets.
Finance Costs
Finance costs for the six months ended June 30, 2023 increased by 1,024.5% as compared to the same period in prior year to
US$3.6 million, primarily due to the increase in the market interest rate and outstanding bank borrowings during the period.
Income Tax Expense
Income tax expense for the six months ended June 30, 2023 decreased by 18.9% as compared to the same period in prior year to
US$7.2 million, primarily due to a decrease in tax assessable income.
Profit For The Period
Profit for the six months ended June 30, 2023 slightly increased by 3.3% as compared to the same period in the prior year to US$105.7 million.
Accounts Receivable
Accounts receivable increased
by 9.6% from US$24.1 million as of December 31, 2022 to US$26.4 million as of June 30, 2023, primarily due to increase in dividend receivable and receivables from hotel and hospitality services of US$1.7 million.
Financial Assets At Fair Value Through Profit or Loss, Including Derivative Financial Assets
Financial assets at fair value through profit or loss decreased by 4.9% from US$380.4 million as of December 31, 2022 to US$361.7 million as of
June 30, 2023, primarily due to decrease in fair value of the financial assets and net disposal of investments during the period.
Accounts
Payable
Accounts payable decreased by 9.6% from US$10.6 million as of December 31, 2022 to US$9.5 million as of June 30, 2023,
largely attributable to a decrease of US$1.2 million in payables to suppliers of fashion and luxury media advertising and marketing services, which was in turn resulting from the optimization of our payment cycle during the period.
Bank Borrowings
Total bank borrowings were
US$96.4 million as of June 30, 2023, representing 4.7 times of the comparative figure. The increase was mainly attributable to the increase in bank borrowings, which were successfully secured during the pandemic times and through the
acquisition of AMTD Assets.
Net Assets
The
net assets increased by 47.4% from US$1.0 billion as of December 31, 2022 to US$1.5 billion as of June 30, 2023, reflecting
| |
(i) |
the successful completion of acquisition of AMTD Assets, of which certain line items, including property, plant
and equipment (hotel properties within the property portfolio), interest in joint ventures (the Company’s stake in a hotel venture project), and amount due from / to non-controlling shareholders (the
outstanding balances with our business partners), recorded a significant change when compared with December 31, 2022, and |
| |
(ii) |
the contribution of our results and comprehensive income from our operations. |
There were other fluctuations in various financial line items, and it was due to the reclassification of certain assets and liabilities (e.g. goodwill)
associated with assets classified as held for sale as a result of Company’s plan to streamline certain operations.
Accounting Changes - Change
in presentation currency
The directors have elected to change the Company’s presentation currency in the financial Information from Hong Kong
dollar to United States dollar to better reflect the economic footprint of our businesses. The directors of the Company believe that the presentation currency change will give investors and other stakeholders a clearer understanding of the AMTD
IDEA’s performance over time. The change in presentation currency is a voluntary change which is accounted for retrospectively in the interim condensed consolidated statement of profit or loss and statements of financial position and all
comparative financial information has been restated accordingly.
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