Financial Performance - Revenue for the six months ended September 30, 2021, was HKD 159,743,000, a decrease of 34.1% compared to HKD 242,414,000 in the same period of 2020[3] - Gross profit for the same period was HKD 2,358,000, down significantly from HKD 187,364,000 in 2020, indicating a substantial decline in profitability[3] - The company reported a loss attributable to equity shareholders of HKD 491,358,000 for the six months ended September 30, 2021, compared to a loss of HKD 636,165,000 in the prior year[3] - Basic and diluted loss per share was HKD 1.36, an improvement from HKD 1.77 in the same period last year[3] - The company incurred a loss before tax of HKD 475,028,000, compared to a loss of HKD 607,783,000 in the same period of 2020[3] - The company reported a pre-tax loss of HKD 491,358,000 for the six months ended September 30, 2021, compared to a loss of HKD 636,165,000 for the same period in 2020[19] - The group's operating profit before investment property valuation changes for the six months ended September 30, 2021, was HKD 99.9 million, a decrease of approximately 43.9% compared to the same period last year[27] - The investment property valuation loss for the six months ended September 30, 2021, was HKD 573.9 million, compared to a valuation loss of HKD 784.1 million in the same period last year[27] Cash Flow and Assets - Cash and cash equivalents increased to HKD 500,303,000 as of September 30, 2021, compared to HKD 373,697,000 at the beginning of the period[7] - Net cash generated from operating activities was HKD 115,046,000, slightly up from HKD 95,893,000 in the previous year[7] - The total assets less current liabilities amounted to HKD 10,319,488,000 as of September 30, 2021, down from HKD 10,675,075,000 at the end of March 2021[5] - Non-current assets, specifically investment properties, decreased to HKD 9,835,970,000 from HKD 10,408,610,000[5] - As of September 30, 2021, the total amount of accounts receivable (net of credit loss provisions) was HKD 156.3 million, down from HKD 181.5 million as of March 31, 2021[21] - The group had bank borrowings of HKD 200 million as of September 30, 2021, unchanged from March 31, 2021[29] Dividends and Financing - The company declared an interim dividend of HKD 0.19 per share for the current period, down from HKD 0.25 per share in the previous year, totaling HKD 68,400,000 compared to HKD 90,000,000 in 2020[17] - Total financing costs for the six months ended September 30, 2021, were HKD 1,038,000, a decrease from HKD 1,818,000 in the same period of 2020[15] Operational Focus and Market Conditions - The company is focusing on improving operational efficiency and exploring new market opportunities to enhance future performance[2] - The management anticipates that the positive impacts from recent favorable factors in the local retail market will be short-term, and expects continued negative effects on rental income and operational performance for the second half of the year[31] Employee and Management Information - As of September 30, 2021, the group employed 37 staff, a decrease from 38 staff in the previous year, with related expenses amounting to approximately HKD 13,300,000, up from HKD 10,700,000 in the previous year, primarily due to the absence of government wage subsidies received in the prior period[30] - The remuneration for Mr. Zhong Hui Huang increased by HKD 167,000 to HKD 937,000, while Mr. Zhong Qiong Lin's remuneration rose by HKD 38,000 to HKD 1,190,000[38] - Mr. Zhong Jiong Hui's remuneration increased significantly by HKD 976,000 to HKD 1,805,000, whereas Mr. Zhong Shen Nan's remuneration decreased by HKD 80,000 to HKD 826,000[38] Corporate Governance and Compliance - The company has complied with all applicable provisions of the Corporate Governance Code during the six months ending September 30, 2021, except for certain disclosures regarding insurance arrangements for directors[39] - The board believes that the current risk management and internal control systems are sufficient, and there is no immediate need to establish an internal audit function[40] - The company has not disclosed the remuneration details of senior management by pay level in the annual report, as it believes such disclosure could lead to inappropriate comparisons among employees[41] - The company has established a monitoring environment that includes a whistleblowing arrangement and defined roles and responsibilities to enhance risk management and internal control effectiveness[40] - All directors confirmed compliance with the standard code of conduct for securities transactions during the six months ending September 30, 2021[42] Accounting and Reporting Standards - The interim financial report as of September 30, 2021, was prepared in accordance with Hong Kong Accounting Standards (HKAS) 34[45] - No significant issues were noted that would lead to a belief that the interim financial report was not prepared in all material respects according to HKAS 34[45] - The review was conducted based on the Hong Kong Institute of Certified Public Accountants' standards, focusing on inquiries and analytical procedures[44]

Financial Performance - The Group recorded an operating profit before valuation changes in investment properties of HK$316.2 million for the year ended March 31, 2021, down from HK$477.0 million in 2020, representing a decrease of 33.7%[4] - The loss attributable to equity shareholders was HK$1,525.5 million, compared to a loss of HK$912.9 million in 2020, indicating an increase in loss of 67.2%[4] - Valuation losses on investment properties amounted to HK$1,788.0 million, up from HK$1,306.3 million in 2020, reflecting a 37% increase in valuation losses[4] - The decrease in profit was primarily due to rental concessions granted to most tenants of iSQUARE throughout the financial year due to the ongoing COVID-19 pandemic[199] - The occupancy rate and rental income from iSQUARE declined, further impacting overall rental income for the year[199] - The Group maintains a solid financial position with strong cash flows and a low gearing ratio as part of its fundamental strategy[198] - The Group's financial performance showed no significant change during the year under review, reflecting the ongoing challenges in the local economic climate[96] Dividends - The total dividend distribution for the year is HK$0.44 per share, down from HK$0.81 per share in 2020, marking a decrease of 45.7%[5] - The interim dividend paid during the year was HK$0.25 per share, compared to HK$0.56 per share in 2020, a reduction of 55.4%[5] - An interim dividend of HK$0.25 per share was paid, and a final dividend of HK$0.19 per share is recommended for the year ended March 31, 2021[195] - The proposed final dividend is subject to approval at the upcoming annual general meeting[195] Corporate Governance - The Company complied with all applicable provisions of the Corporate Governance Code during the financial year ended 31 March 2021, with specific deviations noted[18] - The Board of Directors is responsible for the leadership and control of the Group, including formulating objectives and overseeing financial performance[32] - All Directors confirmed compliance with the Model Code for Securities Transactions during the financial year ended 31 March 2021[27] - The Company organized in-house training courses for Directors on corporate governance and regulatory obligations at the Company's expense during the financial year[40] - The Board has established three committees: remuneration, nomination, and audit, to focus on specific areas[36] Risk Management - The Group's risk management policy includes measures for handling inside information and ensuring compliance with relevant laws[82] - The Board oversees the risk management process, integrating it into daily operations and involving all departments in identifying operational risks[74] - Risk assessments are conducted on a half-yearly basis, with department heads required to maintain a risk register and develop mitigating strategies[74] - The audit committee reviewed the effectiveness of the Group's risk management and internal control systems, assessing the adequacy of mitigating strategies and their impact on the Group[66] - The management is responsible for the design and implementation of risk management systems, while the Board and audit committee oversee the process[83] Environmental Responsibility - The Corporate Social Responsibility Report reviews the Group's performance in environmental and social responsibilities for the financial year ended 31 March 2021[123] - The Group's environmental policy includes setting long-term carbon emission reduction targets and enhancing staff awareness through internal communication[129] - Total greenhouse gas emissions decreased to 3,502.67 tonnes in the year ended March 31, 2021, down from 6,130.59 tonnes in 2020, representing a reduction of approximately 42.5%[140] - iSQUARE reduced electricity purchased from power company by approximately 30.95% compared to the baseline year ended 31 March 2015[132] - The Group recognizes the impact of its business conduct on the environment and society, striving for sustainable development[121] Employee Management - The total number of employees increased to 33 in 2021 from 31 in 2020, all of whom are full-time staff based in Hong Kong[156] - Employee turnover rate remained at 0% in 2021, unchanged from 2020[157] - Overall employee satisfaction increased to 84.38% in 2021 from 83.87% in 2020[163] - The absence rate decreased to 0.87% in 2021 from 1.50% in 2020[163] - The Group provides job-related training subsidies to all full-time employees, including additional funding for senior management[164] Community Engagement - The Group made donations totaling HK$204,000 to various charities during the financial year ended March 31, 2021, supporting community development and helping underprivileged groups[185] - The Group's commitment to community support includes becoming a Diamond Sponsor for Po Leung Kuk, allowing for continuous charitable engagement throughout the year[186] - The Group established a community policy focusing on enhancing community development (97.45%), improving quality of life (2.35%), and helping underprivileged groups (0.20%) through its charitable activities[184] Tenant Relations - The Group continued to offer rent relief to tenants during the financial year ended March 31, 2021, due to the challenging operating environment caused by the COVID-19 pandemic[173] - The management team conducts daily walk-throughs of iSQUARE to maintain communication with shop tenants and address their concerns efficiently[173] - The Group has established a formal complaint-handling mechanism to ensure timely resolution of tenant dissatisfaction[173] - Direct engagement with tenants and close monitoring of their financial performance and payment records are prioritized to manage leasing risks[94]

Financial Performance - Revenue for the six months ended September 30, 2020, was HKD 242.414 million, a decrease of 19.2% compared to HKD 299.935 million in the same period of 2019[2] - Gross profit for the same period was HKD 5.720 million, down from HKD 254.779 million, indicating a significant decline in profitability[2] - The net loss attributable to equity shareholders for the period was HKD 636.165 million, compared to a loss of HKD 369.648 million in the previous year, reflecting a worsening financial position[2] - Basic and diluted loss per share was HKD 1.77, compared to HKD 1.03 in the prior year, indicating increased losses per share[2] - The company incurred a loss before tax of HKD 607.783 million, compared to a loss of HKD 330.759 million in the previous year, highlighting increased operational challenges[2] - The company reported a pre-tax loss of 636,165,000 HKD for the six months ended September 30, 2020, compared to a loss of 369,648,000 HKD in the same period of 2019[19] - Total other income for the six months ended September 30, 2020, was 5,720,000 HKD, a decrease from 6,746,000 HKD in 2019, primarily due to a decline in interest income[13] Assets and Cash Flow - Total assets as of September 30, 2020, were HKD 11.850 billion, down from HKD 12.572 billion as of March 31, 2020[4] - Cash and cash equivalents at the end of the period were HKD 510.207 million, a decrease from HKD 726.162 million at the end of the same period last year[7] - Operating cash flow for the six months was HKD 95.893 million, down from HKD 211.287 million in the previous year, indicating reduced cash generation from operations[7] - The company reported a net cash inflow from operating activities of HKD 95.893 million, despite the overall loss, indicating some resilience in cash management[7] - The group's cash and cash equivalents as of September 30, 2020, amounted to HKD 400.9 million, compared to HKD 421.9 million as of March 31, 2020[22] Expenses and Cost Management - Administrative expenses decreased to HKD 14.916 million from HKD 16.273 million, showing some cost control measures were implemented[2] - Financing costs for the six months ended September 30, 2020, amounted to 1,672,000 HKD, with bank loan interest and other borrowing costs totaling 125,000 HKD[15] Equity and Dividends - The total equity attributable to shareholders as of September 30, 2020, was HKD 11,556.7 million, down from HKD 12,282.9 million as of March 31, 2020[25] - The company declared an interim dividend of 0.25 HKD per share for the current period, down from 0.56 HKD per share in the previous year[17] Rental Income and Property Valuation - Rental income from the International Plaza for the six months ended September 30, 2020, was approximately HKD 242.4 million, a decrease of about 18.6% compared to the same period last year[25] - The occupancy rate of the International Plaza as of September 30, 2020, was approximately 82.8%, down from 92.6% as of September 30, 2019[25] - The investment property valuation loss for the six months ended September 30, 2020, was HKD 784.1 million, compared to a valuation loss of HKD 573.0 million in the same period last year[25] - The group's operating profit before investment property valuation changes for the six months ended September 30, 2020, was HKD 178.2 million, a decrease of approximately 27.4% compared to the same period last year[25] Management and Governance - The company has complied with all applicable provisions of the Corporate Governance Code during the six months ending September 30, 2020, except for certain disclosures regarding insurance arrangements for directors[37] - The board believes that the current risk management and internal control systems are sufficient, and there is no immediate need to establish an internal audit function[38] - The company has established a monitoring environment that includes a whistleblowing arrangement and defined roles and responsibilities to enhance risk management and internal control effectiveness[39] - All directors confirmed compliance with the standard code of conduct for securities transactions during the six months ending September 30, 2020[40] Employee and Director Remuneration - The total remuneration for Mr. Zhong Hui Huang decreased by 361,000 HKD to 770,000 HKD for the six months ended September 30, 2020[35] - Mr. Zhong Qiong Lin's remuneration was 1,152,000 HKD, a decrease of 24,000 HKD compared to the previous year[35] - Mr. Zhong Jiong Hui's remuneration increased by 1,000 HKD to 829,000 HKD[35] - Mr. Zhong Shen Nan's remuneration decreased by 3,000 HKD to 906,000 HKD[35] - Ms. Zhong Cong Ling's remuneration increased by 141,000 HKD to 991,000 HKD[35] - The estimated annual rental value of the residential property provided to directors was 1,485,000 HKD as of September 30, 2020[36] COVID-19 Impact - The management anticipates continued negative impacts on rental income and operating performance for the second half of the fiscal year due to the ongoing COVID-19 pandemic[28] - The group has provided various levels of rent concessions to most tenants since the outbreak of COVID-19, negatively affecting cash flow[25] Accounting and Reporting - The interim financial report as of September 30, 2020, was prepared in accordance with Hong Kong Accounting Standards, specifically HKAS 34[44] - No significant issues were identified during the review that would lead to a belief that the interim financial report was not prepared in all material respects[44] - The review was conducted under the guidelines of the Hong Kong Institute of Certified Public Accountants, specifically under the review standard 2410[43] - The company has not adopted any new accounting standards or interpretations that have not yet come into effect during the current accounting period[10] - The company’s accounting policies remain consistent with those used in the previous financial year, with no significant impact from changes in accounting standards[10]

Financial Performance - The Group reported a profit from operations before valuation changes in investment properties of HK$477.0 million for the year ended 31 March 2020, a decrease of 4.5% from HK$499.8 million in 2019[5]. - The loss attributable to equity shareholders was HK$912.9 million, compared to a profit of HK$148.5 million in 2019, primarily due to net valuation losses on investment properties of HK$1,306.3 million, which increased significantly from HK$266.0 million in 2019[5]. - The valuation losses on investment properties will affect accounting profit or loss but will not impact the Group's cash flows[5]. - The Group faced downward pressure on rental levels and increased vacancies at iSQUARE, exacerbated by the rise in online shopping and social unrest[93]. - The pandemic has led to a grim outlook for the retail and catering industries, significantly affecting tenant businesses[93]. - The outbreak of COVID-19 has significantly impacted the Group's operations, particularly in the travel and tourism sectors, leading to a drastic drop in visitor arrivals and retail sales in Hong Kong[95]. - The Group is maintaining a solid financial position with strong cash flow and a low gearing level to cope with unforeseen circumstances arising from the pandemic[95]. Dividends - The Board recommended a final dividend of HK$0.25 per share for the year ended 31 March 2020, down from HK$0.57 per share in 2019, resulting in a total distribution of HK$0.81 per share for the year, compared to HK$1.15 per share in 2019[6]. - An interim dividend of HK$0.56 per share was paid, down from HK$0.58 per share in 2019[200]. - The final dividend is subject to approval at the upcoming annual general meeting scheduled for 10 September 2020[200]. - The proposed final dividend will be paid on 5 October 2020 to members listed on the register as of 18 September 2020[200]. Corporate Governance - The Company has maintained compliance with all applicable code provisions set out in the Corporate Governance Code during the financial year[19]. - The Group's commitment to high standards of corporate governance is reflected in its review of practices and procedures[17]. - The roles of the Chairman and Chief Executive are held by Mr. Cheong Hooi Hong, with day-to-day management shared among Executive Directors to avoid concentration of power[21]. - All Independent Non-Executive Directors (INEDs) attended 100% of the Company's meetings during the year under review, ensuring active participation and a balanced understanding of shareholder views[22]. - The Board reviewed the need for an internal audit function in March 2020 and determined that, given the Group's size and structure, there was no immediate need for one[26]. - The Company has established a control environment to enhance risk management and internal control systems, including regular group-wide risk assessments[26]. - The Board is responsible for the leadership and control of the Group, overseeing financial performance and corporate governance[35]. - The Board has established three committees: remuneration, nomination, and audit, to focus on specific areas of governance[36]. Risk Management - The Board is responsible for the Group's risk management and internal control systems, which are evaluated and reviewed on an ongoing basis[73]. - Risk assessments are conducted biannually, with department heads required to maintain and update a risk register[78]. - The Group's risk management and internal control systems were reviewed for effectiveness, confirming that resources and staff qualifications were adequate for the financial year ended March 31, 2020[87]. - The Board identified principal risks, including increased default risk among tenants due to the COVID-19 pandemic and local social incidents, impacting the business outlook[92]. - The effectiveness of risk management strategies was evaluated based on the actual operation and performance of the Group[88]. Environmental and Social Responsibility - The Corporate Social Responsibility Report reviews the Group's performance in environmental and social responsibilities for the financial year ended 31 March 2020[127]. - The Company aims to integrate socially responsible practices into daily operations to contribute positively to sustainability development[126]. - The Group reduced electricity purchased by approximately 10.42% to 12,133.39 MWh compared to the baseline year ended March 31, 2015[141]. - The Group's environmental policy includes promoting environmental awareness among staff and adopting eco-friendly practices in daily operations[138]. - The Group has adopted measures such as using water-saving fittings and recycling waste paper, plastics, and metals[140]. Employee Relations - The Group emphasizes maintaining a quality workplace and has adopted a general code of conduct that covers data privacy, copyright protection, prevention of bribery, and equal opportunities[163]. - The Group provides job-related training subsidies to all full-time employees, with additional funding for senior management for outside training[169]. - Employee satisfaction surveys are conducted to gather staff opinions about their work environment, with results shared by management for further improvement[173]. - Over 83% of employees reported satisfaction with the Group, an increase from 77% in 2019, while approximately 80% were satisfied with workforce-management relationships, up from 71% in 2019[177]. - The Group has not been aware of any non-compliance with environmental-related laws and regulations that had a significant impact during the year under review[165]. Shareholder Communication - The Company is committed to maintaining communication channels with shareholders to enhance accountability and transparency[106]. - Corporate communications are prepared in both English and Chinese to ensure understandability for shareholders[107]. - Shareholders can submit inquiries to the Board through designated email, correspondence address, fax, and telephone number available on the Company's website[109]. - The Company holds an Annual General Meeting (AGM) every year, typically in September, to facilitate face-to-face communication between shareholders and the Board[110].

Financial Performance - The company reported a loss attributable to equity shareholders of HKD (369,648) thousand for the six months ended September 30, 2019, compared to a profit of HKD 192,658 thousand in the same period of 2018[1]. - Revenue for the six months ended September 30, 2019, was HKD 299,935 thousand, a decrease of 2.7% from HKD 309,084 thousand in the previous year[2]. - Gross profit decreased to HKD 254,779 thousand, down 3.9% from HKD 265,194 thousand year-on-year[2]. - The company experienced a significant operating loss of HKD (327,775) thousand after property valuation changes, compared to an operating profit of HKD 235,991 thousand in the prior period[2]. - The company reported a pre-tax loss of 369,648,000 HKD for the six months ended September 30, 2019, compared to a profit of 192,658,000 HKD for the same period in 2018[19]. - For the six months ending September 30, 2019, the group's operating profit before investment property valuation changes was HKD 245.3 million, a decrease of approximately 3.7% compared to the same period last year[28]. - The net valuation loss for investment properties was HKD 573 million, compared to a net valuation loss of HKD 18.6 million in the same period last year[28]. Cash Flow and Assets - Cash and cash equivalents increased to HKD 726,162 thousand as of September 30, 2019, compared to HKD 511,325 thousand at the beginning of the period[6]. - The net cash generated from operating activities was HKD 211,287 thousand, down from HKD 239,770 thousand in the same period last year[6]. - Total assets less current liabilities amounted to HKD 13,311,834 thousand, a decrease from HKD 13,882,787 thousand as of March 31, 2019[4]. - The company’s net asset value decreased to HKD 13,027,719 thousand from HKD 13,602,567 thousand at the end of the previous financial year[4]. - The accounts receivable, deposits, and prepayments totaled HKD 33.21 million as of September 30, 2019, compared to HKD 26.51 million as of March 31, 2019[21]. - Cash and cash equivalents amounted to HKD 726.16 million as of September 30, 2019, up from HKD 511.33 million as of March 31, 2019[23]. Dividends and Shareholder Returns - The company declared a dividend of HKD (205,200) thousand for the period, reflecting a commitment to return value to shareholders despite the losses[5]. - The interim dividend declared was 0.56 HKD per share, totaling 201,600,000 HKD, down from 0.58 HKD per share and 208,800,000 HKD in the previous year[17]. - The company declared an interim dividend of HKD 0.56 per share, down from HKD 0.58 per share in the previous year[27]. Financing and Costs - The company incurred financing costs of HKD (2,984) thousand, compared to HKD (2,351) thousand in the previous year[2]. - The company incurred financing costs of 2,838,000 HKD for the six months ended September 30, 2019, compared to 2,351,000 HKD in the previous year[15]. - As of September 30, 2019, the group had bank borrowings of HKD 200 million, with a capital-to-equity ratio of 1.5%[28]. Operational Insights - The company has a single reportable segment, which is "Property Leasing," with all revenue and performance derived from Hong Kong[12]. - The company reported no single customer contributing over 10% of total revenue for the periods ended September 30, 2019, and 2018[11]. - Rental income from the International Plaza was approximately HKD 297.9 million, a decrease of about 3.0% compared to the same period last year, with an occupancy rate of approximately 92.6%[28]. - Management anticipates that rental income from the International Plaza and the group's operating performance will be negatively impacted due to ongoing social unrest in Hong Kong[30]. Governance and Compliance - The company has complied with all applicable provisions of the Corporate Governance Code during the six months ending September 30, 2019, except for certain disclosures regarding insurance arrangements for directors[38]. - The board believes that the current structure, where the roles of chairman and CEO are held by the same person, does not negatively impact the company and allows for efficient decision-making[38]. - Independent non-executive directors attended 100% of the company's meetings during the reporting period, ensuring active participation and contribution[39]. - The company has not disclosed the remuneration details of senior management by salary band in the annual report, believing that such disclosure could lead to inappropriate comparisons among employees[39]. - The board has reviewed the need for an internal audit function and determined that the existing risk management and internal control systems are sufficient, with no immediate need for such a function[40]. - The company secretary reports directly to the vice-chairman instead of the chairman/CEO, which the board believes is appropriate for the company's operational context[41]. - All directors confirmed compliance with the standard code regarding securities trading during the six months ending September 30, 2019[42]. Accounting and Reporting - The interim financial report includes the consolidated financial position of Kai Lian International Hotel Limited as of September 30, 2019, and the consolidated income statement for the six-month period ending on that date[43]. - The report was prepared in accordance with the Hong Kong Accounting Standards (HKAS) No. 34 "Interim Financial Reporting" and relevant provisions of the Listing Rules[43]. - The review did not identify any matters that would lead to a belief that the interim financial report was not prepared in accordance with HKAS No. 34 in all material respects[45].

a t 2017 . A Associated International Hotels Limited 凱聯國際酒店有限公司 Stock Code 股份代號：105 本年報之中文譯本只供參考，如中英文本有任何差異，一概以英文本為準。 The translation into Chinese language of this annual report is for reference only. In case of any inconsistency, the English version shall prevail. 目錄 Contents | --- | --- | --- | |-------|-----------------------------|---------------------------------------------------------------------------| | | | | | 2 | 公司資料 | Corporate Information | | 3 | 主席報告 | Chairman's Statement | | 4 | 物業概覽 | Prop ...