Financial Performance - The company recorded a consolidated revenue of HKD 561 million for the fiscal year ending December 31, 2022, representing a 20% increase from approximately HKD 467 million in the previous fiscal year[18]. - The consolidated operating loss for 2022 was HKD 215 million, an improvement from a loss of HKD 358 million in 2021[18]. - The net loss attributable to shareholders for 2022 was HKD 598 million, compared to a loss of HKD 825 million in 2021, with a basic loss per share of HKD 0.2934[18]. - The group's consolidated gross profit for the year was HKD 333 million, up 8% from HKD 307 million in 2021, with a gross margin of 59% compared to 66% in the previous year[42]. - The group reported a consolidated net loss of HKD 598 million for the year, an improvement from a net loss of HKD 825 million in 2021, with basic loss per share decreasing from HKD 0.4246 to HKD 0.2934[43]. - The company’s income tax expense for the year ended December 31, 2022, was HKD 54 million, an increase from HKD 42 million in 2021[54]. - The company reported a comprehensive income statement for the year ending December 31, 2022, with significant financial data included in the annual report[141]. Operational Highlights - The occupancy rate of the Niseko Hanazono Resort increased to 62% in December 2022, up from 38% in 2021, benefiting from the easing of border restrictions[20]. - The rental rate for Pacific Century Place, Jakarta, was 81% as of December 31, 2022, compared to 80% in 2021, reflecting positive impacts from the gradual easing of pandemic restrictions in Indonesia[20]. - The hotel business in Japan generated revenue of HKD 150 million in 2022, a substantial increase from HKD 74 million in 2021, with occupancy rising from 38% to 62%[36]. - The group's golf business in Thailand recorded revenue of HKD 5 million in 2022, up from HKD 2 million in 2021, due to a significant increase in visitor numbers[33]. - Revenue from property development in Thailand was HKD 24 million in 2022, significantly up from HKD 8 million in 2021, with 33% of Phase 1A villas sold or reserved[33]. Strategic Plans and Market Outlook - The company plans to continue focusing on market opportunities and is cautiously optimistic about the long-term prospects of the real estate sectors in Hong Kong, Japan, Thailand, and Indonesia[15]. - The company has established long-term property development plans in Hokkaido, Japan, and Phang-Nga, Thailand, aiming to create world-class luxury resort developments[7]. - The group plans to focus on developing existing land reserves in Japan and Thailand, as well as the Hong Kong project at 3-6 Gilman Road, to maintain long-term growth and profitability[28]. - Yingda Real Estate has outlined a future outlook with a projected revenue growth of 10% for the next fiscal year, driven by new market expansions and product offerings[65]. - Yingda Real Estate plans to expand its market presence in Southeast Asia, targeting a 20% increase in market share by 2025[67]. Corporate Governance - The company emphasizes good corporate governance, integrating key elements into its management structure and internal procedures[76]. - The board consists of two executive directors, two non-executive directors, and three independent non-executive directors, responsible for overall strategy and management oversight[80]. - The board has established a systematic procedure for annual self-evaluation of its performance and contributions[83]. - The company confirms that its financial statements reflect a true and fair view of its financial position and performance for the year ended December 31, 2022[84]. - Independent non-executive directors constitute at least one-third of the board, complying with the listing rules[84]. Risk Management - The company has established a risk management and internal control system, which is reviewed at least annually by the audit committee to ensure its effectiveness[114]. - The risk management framework follows a "three lines of defense" model, with business units identifying and managing risks, the risk management and compliance department providing oversight, and internal audit offering independent assurance[115][116]. - The internal audit department adopts a risk-based audit approach and reports its findings to senior management and the audit committee regularly[118]. - The company integrates its risk management system into daily operations, continuously assessing potential risks that may impact business objectives[121]. - A whistleblowing policy has been established to allow employees and stakeholders to report misconduct, ensuring independent investigations and confidentiality[122]. Sustainability Initiatives - The company is focusing on sustainability initiatives, aiming for a 30% reduction in carbon emissions by 2025[71]. - The PCP Jakarta office has received multiple prestigious certifications, including LEED Platinum and Greenship Platinum, highlighting its commitment to sustainability[155]. - The company has received various environmental accolades, including the Hong Kong Green Organization Certification, demonstrating its commitment to sustainable practices[157]. - The company is committed to achieving green building certifications for all new development projects and reducing energy consumption across its properties[154]. - The group has saved over 290,000 kWh of electricity in 2022 through energy-saving initiatives in its property management division[156]. Shareholder Communication and Dividends - The board does not recommend the distribution of a final dividend for the year ending December 31, 2022, reflecting the ongoing recovery phase post-pandemic[19]. - The company has adopted a dividend policy aimed at providing stable and sustainable returns to shareholders, considering various factors such as financial condition and operational performance when proposing dividends[129]. - The company encourages two-way communication with institutional and private investors, maintaining regular contact with institutional investors and welcoming inquiries from individual investors[130]. - The company conducted a review of its shareholder communication policy in 2022, finding it to be appropriately implemented and effective[129]. - The company reported no interim dividends for the year ended December 31, 2022, consistent with 2021 results[175].

Financial Performance - For the six months ended June 30, 2022, the group recorded consolidated revenue of HKD 271 million, compared to HKD 212 million for the same period in 2021[11]. - The consolidated operating loss for the group was HKD 108 million, an improvement from an operating loss of HKD 209 million in the first half of 2021[11]. - The net loss attributable to shareholders for the six months ended June 30, 2022, was HKD 336 million, compared to a net loss of HKD 417 million for the same period in 2021[11]. - The basic loss per share for the six months ended June 30, 2022, was HKD 0.1649, compared to HKD 0.2255 for the same period in 2021[11]. - The consolidated gross profit for the same period was HKD 133 million, a decrease of 8% from HKD 145 million in 2021, resulting in a gross margin of 49% compared to 68% in 2021[22]. - Financing costs increased to HKD 216 million for the six months ended June 30, 2022, compared to HKD 192 million in the same period of 2021[27]. - The group reported a consolidated net loss of HKD 336 million for the six months ended June 30, 2022, an improvement from a net loss of HKD 417 million in 2021[27]. - Basic loss per share was HKD 16.49 for the six months ended June 30, 2022, compared to HKD 22.55 in the same period of 2021[27]. - Total comprehensive loss for the period was HKD 864 million, compared to HKD 712 million in the same period last year[55]. - The comprehensive loss for the period was HKD 864 million, compared to a loss of HKD 712 million for the same period in 2021[60]. Revenue Sources - The occupancy rate of the Pacific Century Place, Jakarta, was approximately 80% as of June 30, 2022, with total rental income of HKD 122 million, slightly down from HKD 124 million in the same period of 2021[15]. - The group recorded no revenue from property development in Japan for the six months ended June 30, 2022, compared to HKD 21 million for the same period in 2021[16]. - Revenue from property development in Thailand for the six months ended June 30, 2022, was HKD 24 million[17]. - Revenue from the golf business in Thailand for the six months ended June 30, 2022, was HKD 3 million[18]. - Revenue from the hotel business in Japan for the six months ended June 30, 2022, was HKD 60 million, an increase from HKD 21 million in the same period in 2021[20]. - Revenue from property management services in Hong Kong was HKD 15 million for the six months ended June 30, 2022, unchanged from the same period in 2021[22]. - Revenue from other businesses, including property management services in Japan, was HKD 14 million for the six months ended June 30, 2022, compared to HKD 12 million in 2021[23]. - The group recognized land sale income of HKD 113 million from a property in Japan, contributing to the overall revenue[81]. - Revenue for the six months ended June 30, 2022, was HKD 271 million, an increase of 27.8% compared to HKD 212 million in the same period of 2021[75]. - Revenue from the Japanese hotel business reached HKD 60 million, up from HKD 21 million in 2021, representing a 185.7% increase[75]. Assets and Liabilities - The group’s total borrowings amounted to HKD 89.26 billion as of June 30, 2022, down from HKD 113.07 billion as of December 31, 2021[27]. - As of June 30, 2022, the group's total assets amounted to HKD 79.54 billion, a decrease from HKD 82.45 billion as of December 31, 2021[33]. - The company has a loan balance of HKD 11.70 billion as of June 30, 2022, unchanged from December 31, 2021, after deducting deferred loan arrangement fees of HKD 8 million[33]. - Current liabilities decreased to HKD 14.00 billion as of June 30, 2022, from HKD 33.63 billion as of December 31, 2021[27]. - The company’s total non-current liabilities were HKD 8,499 million, a decrease from HKD 9,139 million at the end of 2021[66]. - The group’s liabilities totaled HKD 9,899 million as of June 30, 2022, compared to HKD 12,502 million at the end of 2021, a reduction of 20.9%[77]. - The company reported a decrease in cash and cash equivalents to HKD 911 million as of June 30, 2022, down from HKD 1,516 million at the beginning of the year[68]. - The company’s retained earnings showed a cumulative loss of HKD 312 million as of June 30, 2022, compared to a profit of HKD 432 million at the end of 2021[66]. Corporate Governance and Compliance - The company maintains high standards of corporate governance, ensuring compliance with applicable laws and regulations[165]. - The audit committee reviewed the unaudited condensed consolidated interim financial information for the six months ending June 30, 2022[164]. - The company has adopted its own securities trading code applicable to all directors and employees, ensuring adherence to ethical standards[167]. - The company has not violated any financial covenants related to its borrowings as of June 30, 2022[113]. Strategic Initiatives and Outlook - The company remains optimistic about the real estate markets in Hong Kong, Japan, Indonesia, and Thailand despite global economic uncertainties[36]. - The company is actively developing a strategic blueprint for future growth and sustainable development, integrating sustainability elements into projects[36]. - The company is focused on prudent investment and resource optimization to drive sustainable growth[36]. - The company is adapting to the new normal by leveraging opportunities arising from the gradual easing of travel restrictions in various countries[36]. - The company is committed to strict cost control to enhance the performance of its property portfolio[36]. - The company is exploring strategic acquisitions to enhance its portfolio, with a focus on companies that align with its growth strategy[173]. - Sustainability initiatives are being prioritized, with plans to reduce carbon emissions by I% over the next five years[173].

Financial Performance - The company recorded a consolidated revenue of approximately HKD 467 million for the fiscal year ending December 31, 2021, a decrease of about 75% compared to HKD 1.843 billion in 2020[21]. - The consolidated operating loss for 2021 was approximately HKD 358 million, compared to a loss of HKD 462 million in 2020[21]. - The net loss attributable to shareholders for 2021 was approximately HKD 825 million, compared to a loss of HKD 749 million in 2020, with a basic loss per share of HKD 0.4246[21]. - For the year ended December 31, 2021, the group recorded a consolidated net loss of approximately HKD 825 million, compared to a net loss of approximately HKD 749 million in 2020[49]. - The consolidated revenue for the year ended December 31, 2021, was approximately HKD 467 million, a decrease of 75% from approximately HKD 1.843 billion in 2020[49]. - The consolidated gross profit for the year ended December 31, 2021, was approximately HKD 307 million, a decrease of 32% from approximately HKD 449 million in 2020, resulting in a gross margin of 66% compared to 24% in 2020[49]. - General and administrative expenses for the year ended December 31, 2021, were approximately HKD 652 million, a decrease of 5% from approximately HKD 687 million in 2020[49]. - Financing costs for the year ended December 31, 2021, were approximately HKD 432 million, an increase from approximately HKD 246 million in 2020[49]. - The company reported an income tax of approximately HKD 42 million for the year ended December 31, 2021, down from approximately HKD 50 million in 2020, primarily due to a one-time withholding tax provision related to property sales in Japan[56]. Property Development and Operations - The occupancy rate of the Pacific Century Place in Jakarta, Indonesia, was approximately 80% as of December 31, 2021[22]. - The company plans to commence foundation work for its property development project at 3-6 Gilman Road, Central, Hong Kong, in the first quarter of 2022[22]. - The first batch of villas in the project in Phang Nga, Thailand, began delivery in December 2021, with the golf course and clubhouse having commenced operations in the third quarter of 2021[22]. - Revenue from property development in Japan was approximately HKD 42 million for the year ended December 31, 2021, a significant decrease from HKD 1.364 billion in 2020 due to most income from the Hanazono Resort being recognized in 2020[37]. - In Thailand, 40% of the Phase 1A villas have been sold or reserved, with revenue from property development recorded at approximately HKD 8 million for the year ended December 31, 2021[38]. - The golf club and 18-hole golf course in Thailand commenced operations in August 2021, generating revenue of approximately HKD 2 million for the year ended December 31, 2021, impacted by COVID-19 on tourism[38]. - The company aims to focus on developing and investing in premium properties to maintain long-term growth and profitability, with a strategy to explore suitable development projects and joint ventures[29]. - The company plans to leverage its past success and brand reputation to enhance opportunities in the global real estate market through new projects and potential acquisitions[29]. Challenges and Market Outlook - The company remains optimistic about the real estate markets in Hong Kong, Japan, and Thailand despite ongoing challenges from the pandemic and inflationary pressures[24]. - The company continues to face challenges in its tourism business in Hokkaido, Japan, due to travel restrictions and social distancing measures[22]. - The company is committed to a cautious approach in navigating current challenges and uncertainties while looking for opportunities in the post-pandemic era[18]. - The company is optimistic about the real estate markets in Hong Kong, Japan, Indonesia, and Thailand, and is actively planning for future developments in these regions[61]. Corporate Governance and Compliance - The company continues to integrate good corporate governance elements into its management structure and internal procedures[73]. - The board consists of two executive directors, two non-executive directors, and three independent non-executive directors, ensuring a balanced governance structure[77]. - The company has adopted its own securities trading code applicable to all directors and employees, ensuring compliance with the relevant regulations[75]. - The company has confirmed compliance with its securities trading code throughout the year ending December 31, 2021[76]. - The board is responsible for overall strategy formulation, management goal setting, and monitoring management performance[77]. - The company emphasizes ethical conduct, transparency, accountability, and integrity in all business operations[74]. - The non-executive chairman ensures effective board operations and leads the board in establishing the company's purpose and objectives[79]. - The company has a clear division of responsibilities between the non-executive chairman and the group managing director[79]. - The company provides all directors with timely access to relevant information, including monthly updates and reports from board committees[79]. - The company requires directors to disclose their public company positions and significant commitments upon appointment and to report any changes promptly[79]. - The board of directors conducted a self-evaluation process to assess their performance and contributions, which was deemed satisfactory for the year ending December 31, 2021[80]. Risk Management - The company has established a risk management and internal control system, which is reviewed at least annually by the audit committee to ensure its effectiveness[107]. - The risk management framework follows a "three lines of defense" model, with the first line being business units responsible for risk identification and management[108]. - The second line, comprising the group risk management and compliance department, provides policies and tools to ensure effective risk monitoring and compliance[111]. - The internal audit department adopts a risk-based audit approach, reporting directly to the board and providing independent assurance on governance and risk management effectiveness[112]. - The company integrates its risk management system into daily operations, continuously assessing potential risks that may impact business objectives[117]. - A whistleblowing policy has been established to allow employees and stakeholders to report misconduct, ensuring transparency and confidentiality[117]. - The company utilizes the principles of ISO 31000:2018 for managing operational risks, which includes risk identification, assessment, and treatment processes[114]. - Regular evaluations of the internal control system are conducted to ensure it meets business needs and effectively addresses potential risks[117]. - The audit committee monitors the implementation of risk reduction measures and reports significant findings to the board[111]. Sustainability and Community Engagement - The company has established a sustainability committee and adopted a sustainability policy aimed at achieving green building certifications for all new development projects[153]. - The main office building in Jakarta, PCP Jakarta, has received multiple prestigious green building certifications, including LEED Platinum and Greenship Platinum[155]. - Since 2005, the property management division has achieved ISO 14001 certification, implementing energy-saving measures that saved over 270,000 kWh of electricity in 2021[156]. - The company has received various environmental accolades, including the "Waste Reduction Certificate" and "Energy Saving Certificate," demonstrating its dedication to maintaining environmental efficiency[160]. - The company has been actively supporting community initiatives during the COVID-19 pandemic, including distributing resources to affected individuals[169]. - The company has committed to continuous improvement in service standards through regular tenant satisfaction surveys[165]. Shareholder Information - The company has not declared any interim dividends for the year ended December 31, 2021, similar to 2020[180]. - As of December 31, 2021, the company's distributable reserves amounted to HKD 4.541 billion, an increase from HKD 4.414 billion in 2020[190]. - Revenue from the top five customers accounted for approximately 34.28% of total revenue for the year ended December 31, 2021[191]. - The company issued 450,980,764 rights shares at a subscription price of HKD 0.82 per share, completing the rights issue on March 24, 2021[186]. - The company raised approximately USD 793.3 million from the issuance of guaranteed notes due in 2026, with net proceeds used for general corporate purposes[189]. - The company has maintained compliance with applicable laws and regulations in its property management operations in Hong Kong, Japan, Indonesia, and Thailand[173][174]. - The company has not recommended any final dividends for the year ended December 31, 2021, consistent with the previous year[180]. - The company’s total issued shares as of December 31, 2021, amounted to 2,038,236,743 shares[186].

Financial Performance - For the six months ended June 30, 2021, the group recorded consolidated revenue of approximately HKD 2.12 billion, compared to approximately HKD 16.02 billion for the same period in 2020[10] - The group reported a consolidated operating loss of approximately HKD 2.09 billion for the first half of 2021, compared to an operating loss of approximately HKD 1.14 billion for the same period in 2020[10] - The loss attributable to shareholders for the six months ended June 30, 2021, was approximately HKD 4.17 billion, compared to a net loss of approximately HKD 2.53 billion for the same period in 2020[10] - The basic loss per share for the six months ended June 30, 2021, was approximately HKD 22.55, compared to a loss per share of approximately HKD 15.91 for the same period in 2020[10] - The group's consolidated revenue for the six months ended June 30, 2021, was approximately HKD 2.12 billion, a decrease of about 87% compared to HKD 16.02 billion in the same period of 2020[22] - The group recorded a net loss attributable to shareholders of approximately HKD 4.17 billion for the six months ended June 30, 2021, compared to a net loss of approximately HKD 2.53 billion in the same period of 2020[20] - The gross profit for the six months ended June 30, 2021, was approximately HKD 1.45 billion, a decrease of about 48% from HKD 2.77 billion in the same period of 2020, resulting in a gross margin of 68%[22] - Financing costs for the six months ended June 30, 2021, were approximately HKD 1.92 billion, an increase from HKD 1.18 billion in the same period of 2020[20] - The group’s administrative expenses for the six months ended June 30, 2021, were approximately HKD 3.55 billion, a decrease of 9% compared to HKD 3.91 billion in the same period of 2020[22] - The company reported a total comprehensive loss of HKD 712 million for the period, compared to a loss of HKD 335 million in the same period of 2020[58] Assets and Liabilities - The group's current assets as of June 30, 2021, were approximately HKD 54.51 billion, compared to HKD 25.99 billion as of December 31, 2020[22] - The total borrowings of the group as of June 30, 2021, amounted to approximately HKD 113.46 billion, up from HKD 82.03 billion as of December 31, 2020[24] - The current liabilities of the group as of June 30, 2021, were approximately HKD 34.09 billion, compared to HKD 20.03 billion as of December 31, 2020[22] - As of June 30, 2021, the total value of assets pledged as collateral for loans was approximately HKD 8.144 billion[34] - The total liabilities as of June 30, 2021, were HKD 12,555 million, compared to HKD 9,646 million at the end of 2020, indicating an increase in financial obligations[72] Cash Flow and Financing - Cash used in operating activities for the six months ended June 30, 2021, was approximately HKD 298 million, a decrease from HKD 997 million in the same period of 2020 due to significant property sales in 2020[32] - The net cash generated from financing activities was HKD 3,265 million, a significant increase compared to a net cash outflow of HKD 426 million in the same period of 2020[63] - The company reported a net cash outflow from operating activities of HKD 298 million for the first half of 2021, compared to a cash inflow of HKD 997 million in the same period of 2020[63] - The company completed the repurchase of approximately USD 384 million of its guaranteed notes on June 18, 2021[25] - The group issued USD 800 million bonds due in 2026 at a rate of 5.125%, part of which will be used to redeem USD 700 million bonds maturing in March 2022[10] Market Outlook and Strategy - The group anticipates that the tourism and consumption demand in Japan will gradually improve in the coming months as vaccination rates increase and government relief measures are implemented[5] - The company remains optimistic about future performance despite uncertainties due to the COVID-19 pandemic and variants like Delta[38] - The management team will continue to monitor market conditions closely and plan cautiously in a challenging and rapidly changing environment[38] - The company provided a positive outlook for the second half of 2021, projecting a revenue growth of 10% to 12%[42] - New product launches are expected to contribute an additional HKD 300 million in revenue by the end of the fiscal year[42] Shareholder Information - The company’s shareholding by PCCW Limited decreased to approximately 31.17% as of June 30, 2021, down from 40.03% as of December 31, 2020[125] - The company reported a total of 2,038,236,743 issued and fully paid ordinary shares as of June 30, 2021[114] - Major shareholder PCCW holds 635,354,407 shares, accounting for 31.17% of the total issued shares[166] Corporate Governance - The audit committee reviewed the unaudited condensed consolidated interim financial information for the six months ending June 30, 2021[176] - The company maintains high standards of corporate governance, adhering to applicable laws and regulations[177] - No significant risks or internal control deficiencies were identified during the risk management and internal control system assessment[178] - All directors confirmed compliance with the company's securities trading code during the six months ending June 30, 2021[180]

Financial Performance - The company reported a consolidated revenue of approximately HKD 1.843 billion for the fiscal year ending December 31, 2020, an increase of approximately 82% compared to HKD 1.015 billion in 2019[13]. - The consolidated operating loss for 2020 was approximately HKD 462 million, compared to a loss of HKD 74 million in 2019[14]. - The net loss attributable to shareholders for 2020 was approximately HKD 749 million, compared to a loss of HKD 295 million in 2019, with a basic loss per share of HKD 0.4719[14]. - The group recorded a total rental income of approximately HKD 240 million for the year ended December 31, 2020, compared to HKD 217 million in 2019[24]. - The group achieved property development revenue of approximately HKD 1.364 billion from Japan for the year ended December 31, 2020, compared to HKD 618 million in 2019[24]. - The group’s gross profit for the year ended December 31, 2020, was approximately HKD 449 million, a decrease of about 18% from HKD 546 million in 2019, with a gross profit margin of 24%[31]. - The group’s financing costs increased to approximately HKD 246 million for the year ended December 31, 2020, compared to HKD 176 million in 2019[29]. - The group’s net loss attributable to shareholders for the year ended December 31, 2020, was approximately HKD 749 million, compared to HKD 295 million in 2019, with a basic loss per share of HKD 0.4719[29]. - The income tax expense for the year ended December 31, 2020, was approximately HKD 50 million, a decrease from HKD 65 million in 2019, primarily due to reduced withholding tax on internal loan interest[37]. Business Strategy and Development - The company plans to continue focusing on investment, development, and management of premium properties and resorts in Asia despite the challenges posed by the pandemic[11]. - The company has completed the construction of the golf course and clubhouse in Phang Nga, Thailand, with the golf course expected to be operational by mid-2021[14]. - The company is planning to redevelop the site at 3-6 Connaught Road Central into luxury residences[14]. - The company has initiated a long-term property development plan, including world-class luxury resort projects in Hokkaido, Japan, and Phang Nga, Thailand[6]. - The company has shifted its focus to the domestic market and travelers in Japan due to the impact of travel restrictions and social distancing measures[14]. - The company remains optimistic about the long-term economic prospects in Hong Kong, Japan, and Thailand despite the ongoing challenges[11]. - The company plans to focus on high-end property investments, developments, and management in Asia, with ongoing discussions for new projects in Japan and Hong Kong[40]. Corporate Governance - The board of directors emphasized the importance of corporate governance and sustainability in future business strategies[51]. - The company aims to integrate good corporate governance elements into its management and operational procedures[61]. - The company has adopted its own securities trading code applicable to all directors and employees, ensuring compliance with the listing rules[63]. - The board of directors confirmed their responsibility for preparing the financial statements, ensuring they reflect the company's financial position and performance accurately according to Hong Kong Financial Reporting Standards[73]. - The company has maintained compliance with the corporate governance code as per the Hong Kong Stock Exchange's requirements[62]. - The company has established formal procedures for appointing new board members, ensuring a transparent selection process[85]. - The company has adopted a board diversity policy to enhance the effectiveness of the board and corporate governance standards[86]. - The company has established a reporting policy and comprehensive procedures for handling and disclosing insider information to ensure confidentiality before appropriate approval[123]. Risk Management - The company has established a risk management framework based on a "three lines of defense" model to identify and manage risks effectively[112]. - The internal audit department reports to the audit committee on the effectiveness of internal controls and identifies any significant weaknesses[120]. - The company conducts regular assessments of its risk management and internal control systems to enhance corporate governance[122]. - The audit committee and risk management department regularly review risk management procedures and report any significant findings to the board[112]. - The company has integrated its risk management system into daily operations, continuously reviewing and assessing potential risks that may impact business objectives[123]. - The company is subject to various regulatory compliance risks across its operating markets, which require adherence to local laws and regulations[165]. Employee and Community Engagement - The company provides comprehensive employee benefits, including medical insurance and training programs, aligning with industry practices[38]. - The company emphasizes employee safety and development, offering training and performance evaluation systems to support sustainable growth[180]. - The company has established various communication channels to enhance customer experience, including a hotline and mobile app for residents[182]. - The company has shifted its community engagement strategy by donating cash and purchasing supplies for social enterprises due to social distancing restrictions[190]. - The company donated cash to the Hospital Authority in 2020 to support frontline healthcare workers combating COVID-19[187]. Sustainability Initiatives - The company has established a sustainable development committee and adopted a self-developed sustainability policy aimed at achieving green building certifications for all new development projects[171]. - The company’s main office building in Jakarta has received multiple prestigious green building certifications, including LEED Platinum and Greenship Platinum, highlighting its commitment to sustainable development[176]. - The company has saved over HKD 1.28 million through energy-saving initiatives implemented by its property management division in Hong Kong[176]. - The company has signed multiple environmental protection charters to promote waste reduction and recycling initiatives[178]. - The company has committed to sustainable development and has disclosed its carbon footprint data since 2017 for entry into the Environmental Protection Department's database[193].

Financial Performance - For the six months ended June 30, 2020, the group recorded a consolidated revenue of approximately HKD 1.602 billion, compared to approximately HKD 2.07 billion for the same period in 2019[11]. - The consolidated operating loss for the group was approximately HKD 114 million, while the operating loss for the same period in 2019 was approximately HKD 56 million[17]. - The total consolidated loss attributable to shareholders for the first half of 2020 was HKD 253 million, compared to a net loss of approximately HKD 156 million for the same period last year[17]. - The basic loss per share for the six months ended June 30, 2020, was approximately HKD 15.91 cents, compared to HKD 9.82 cents for the same period in 2019[17]. - The total comprehensive loss for the period was HKD 335 million, compared to a gain of HKD 62 million in the same period last year, highlighting significant financial challenges[66]. - The company reported a pre-tax loss of HKD 224 million for the six months ended June 30, 2020, compared to a loss of HKD 141 million in the same period of 2019[90]. - The company reported a loss of HKD 253 million for the six months ended June 30, 2020, compared to a loss of HKD 156 million in the same period of 2019[104]. Operational Challenges - The occupancy rate of the group's luxury hotel in Hokkaido, Japan, has been low since February, leading to the closure of some dining and entertainment services in April to reduce operational costs[17]. - The group anticipates that the impacts of the pandemic will gradually diminish, supported by government economic stimulus measures and strong demand in the long term[18]. - The group's projects in Indonesia, Thailand, and Japan are facing challenges such as decreased consumer spending and supply chain disruptions due to the pandemic[4]. - The impact of the COVID-19 pandemic has been significant, particularly in the second quarter, affecting tourism and export-dependent Asian countries[36]. - The company is focusing on the development and investment in its tourism and resort project in Niseko, Hokkaido, which has been impacted by the pandemic[36]. Revenue and Income - The gross profit for the same period was approximately HKD 277 million, up about 57% from HKD 176 million in 2019, with a gross margin of 17%[23]. - The company achieved rental income of approximately HKD 118 million from its properties in Japan for the six months ended June 30, 2020, compared to HKD 95 million in the same period of 2019[20]. - The company reported income of approximately HKD 71 million from its seasonal recreational activities in Japan for the six months ended June 30, 2020, compared to HKD 79 million in the same period of 2019[20]. - The total rental income from investment properties for the six months ended June 30, 2020, was HKD 118 million, with expenses amounting to HKD 30 million[99]. Debt and Liabilities - As of June 30, 2020, the company had total borrowings of approximately HKD 8.177 billion, down from HKD 8.900 billion as of December 31, 2019[23]. - The net capital debt ratio was 172.02%, a decrease from 188.28% on December 31, 2019[28]. - Total borrowings amounted to HKD 8.219 billion, with cash and cash equivalents totaling HKD 1.873 billion[28]. - The company’s short-term borrowings decreased to HKD 805 million as of June 30, 2020, from HKD 1,517 million as of December 31, 2019, indicating a reduction of about 47%[75]. - The total liabilities as of June 30, 2020, were HKD 10,001 million, down from HKD 12,782 million as of December 31, 2019, representing a reduction of about 21.9%[95]. Tax and Legal Matters - The group is currently involved in ongoing legal proceedings regarding a tax assessment in Indonesia, with a total tax and penalty amounting to approximately HKD 200 million[30]. - The company faced a tax assessment resulting in a total tax and penalty amount of IDR 3,676.688 billion (approximately HKD 200 million) due to the disallowance of land value-added tax deductions[142]. - The company reported a tax expense of HKD 29 million for the six months ended June 30, 2020, compared to HKD 15 million in the same period of 2019, indicating an increase of 93.3%[102]. Corporate Governance and Shareholder Information - The company is committed to maintaining high standards of corporate governance, emphasizing integrity, transparency, accountability, and compliance with applicable laws and regulations[200]. - The company’s ultimate holding company, PCCW Limited, holds 70.88% of the shares as of June 30, 2020[143]. - The major shareholder, PCCW, holds a total of 1,470,155,332 shares, which includes 285,088,666 shares and 1,185,066,666 related shares held by its wholly-owned subsidiary, Asian Motion Limited[194]. - No share options have been granted under the company's share option plan since its adoption on May 7, 2015, up to June 30, 2020[189]. Employment and Staff - The company employs 842 staff members as of June 30, 2020, including property management staff and seasonal employees[35]. - The company reported a total of HKD 16 million in key management personnel compensation, which includes salaries, bonuses, and retirement plan contributions, compared to HKD 14 million in the same period of 2019[147].

Financial Performance - The company reported a consolidated revenue of approximately HKD 1.015 billion for the fiscal year ending December 31, 2019, representing an increase of approximately 238% compared to HKD 300 million in 2018[14]. - The consolidated operating loss for 2019 was approximately HKD 74 million, compared to a loss of approximately HKD 228 million in 2018[15]. - The net loss attributable to shareholders for 2019 was approximately HKD 295 million, an improvement from a loss of approximately HKD 437 million in 2018, with a basic loss per share of HKD 18.61 compared to HKD 27.55 in 2018[15]. - The company recorded a consolidated revenue of approximately HKD 10.15 billion for the year ended December 31, 2019, an increase of about 238% compared to HKD 3.00 billion in 2018[24]. - The total rental income for 2019 was approximately HKD 217 million, compared to HKD 138 million in 2018, reflecting a significant growth[24]. - The company achieved a gross profit of approximately HKD 546 million for the year ended December 31, 2019, up from HKD 250 million in 2018, representing an increase of about 118%[24]. - The gross profit margin for 2019 was 54%, down from 83% in 2018, indicating a shift in profitability[24]. - General and administrative expenses increased by 27% to approximately HKD 620 million in 2019, compared to HKD 489 million in 2018, primarily due to increased operational costs[24]. - The company recorded a net loss of approximately HKD 295 million for the year ended December 31, 2019, an improvement from a net loss of HKD 437 million in 2018[24]. - The group generated cash from operations amounting to HKD 82 million for the year ended December 31, 2019, an increase from HKD 300.6 million in 2018[26]. - The group’s net debt was calculated at HKD 89.5 billion, with cash and cash equivalents amounting to HKD 13.78 billion[26]. - The group’s income tax for the year ended December 31, 2019, was approximately HKD 65 million, an increase from HKD 48 million in 2018[26]. - As of December 31, 2019, the group's total assets amounted to approximately HKD 103.23 billion, an increase from HKD 40.89 billion in 2018[28]. - As of December 31, 2019, the company's distributable reserves amounted to HKD 4.423 billion, slightly down from HKD 4.431 billion in 2018[166]. Property Development and Projects - The company has sold over 90% of the units in the Niseko Park Hyatt Residences as of the report date, with the first guests arriving at the Park Hyatt Hotel in January 2020[15]. - Infrastructure works and initial designs for the project in Phang Nga, Thailand, are progressing as planned, with expectations to commence operations by the end of 2020[15]. - The company has applied for redevelopment of prime commercial land in Hong Kong, indicating a strategic move to enhance its property portfolio[15]. - The company aims to leverage its experience in developing luxury residential and resort properties to enhance its success in the global real estate market[19]. - The company is exploring opportunities for joint ventures or real estate funds to participate in large-scale projects and enhance existing properties for investment or sale[19]. - The company’s property development in Japan generated revenue of approximately HKD 620 million for the year ended December 31, 2019[24]. - The company has completed over 90% of the units in its residential project in Niseko, Japan, with plans to sell remaining units at an appropriate time[24]. - The golf course and clubhouse in Thailand are expected to be completed in the fourth quarter of 2020, with the first batch of villas launched in 2019[22]. - The commercial property in Jakarta recorded favorable performance amid market competition, indicating a strong outlook for Indonesia[32]. - The construction and sales activities for the project in Phang Nga, Thailand, are proceeding smoothly, contributing to the group's positive performance in the region[32]. Corporate Governance - The board of directors includes three executive directors, two non-executive directors, and three independent non-executive directors, responsible for overall strategy and management oversight[52]. - The company emphasizes good corporate governance, integrating ethical practices and compliance with laws and regulations into its operations[48]. - The company has adopted its own securities trading code applicable to all directors and employees, ensuring compliance with the listing rules[50]. - The independent non-executive directors bring extensive experience in private equity and investment management, enhancing the board's expertise[46]. - The company is committed to maintaining high levels of corporate governance, adhering to the principles outlined in the Corporate Governance Code[49]. - The board has established an executive committee to consider and implement policy decisions made by the board[54]. - The company ensures that all directors receive timely and relevant information to make informed decisions[54]. - The non-executive chairman and the group managing director have clearly defined roles to ensure effective board operation[54]. - The board is responsible for considering and approving financial statements and announcements related to interim and annual performance[52]. - The board has a systematic procedure to evaluate its performance and contributions annually, ensuring effective operation and identifying areas for improvement[55]. - The remuneration committee reviewed and approved the 2018 bonuses and 2019 performance rewards for several executive directors[66]. - The nomination committee ensures a fair and transparent process for appointing and reappointing directors, focusing on diversity in skills, knowledge, and experience[68]. - The company adopted a board diversity policy in February 2013 to enhance board effectiveness and corporate governance[69]. - Independent non-executive directors make up at least one-third of the board, complying with listing rules[57]. - The remuneration committee consists of a majority of independent non-executive directors, ensuring transparency in compensation policies[62]. - The executive committee is responsible for strategy formulation and performance review, enabling quick decision-making in a fast-paced business environment[61]. - The company has received written confirmations from independent non-executive directors regarding their independence, affirming compliance with listing rules[57]. - The Nomination Committee reviewed and assessed the independence of all independent non-executive directors and recommended the list of directors for re-election at the 2019 Annual General Meeting[73]. - The Audit Committee reviewed the financial statements for the year ended December 31, 2018, and recommended their approval to the Board[79]. - The Audit Committee also reviewed the external auditor's report and recommended the reappointment of the external auditor at the 2019 Annual General Meeting[79]. - The Audit Committee conducted a review of the risk management and internal control systems, assessing their effectiveness[79]. - The Audit Committee held two meetings during the year ended December 31, 2019, ensuring adequate resources to fulfill its responsibilities[78]. - The Sustainability Committee is responsible for ensuring the company's operations positively contribute to society and the environment[82]. - The Sustainability Committee reviews the company's sustainability strategies, principles, and policies, and monitors progress in related activities[82]. Risk Management - The company has established a risk management and internal control system, which is reviewed annually by the audit committee[86]. - The risk management framework follows a "three lines of defense" model, ensuring effective risk identification and management[88]. - The group risk management and compliance department coordinates risk management activities and reports major risks to the audit committee regularly[90]. - The internal audit department adopts a risk-based audit approach and reports on the effectiveness of internal controls to the audit committee[91]. - The company utilizes ISO 31000:2018 as a guideline for managing business and operational risks[94]. - The risk assessment process includes identifying risks that may affect business objectives and evaluating their significance[94]. - The company has implemented various policies to enhance the effectiveness of its risk management and internal control systems[94]. - The company has integrated its risk management system into core business operations, continuously reviewing potential risks that may impact business objectives[95]. - The audit committee has established a reporting policy allowing employees, customers, and suppliers to report any misconduct related to the company, ensuring transparent investigations[95]. - The company’s internal audit department conducted a review of the effectiveness of the risk management and internal control systems, focusing on financial, operational, and compliance monitoring[98]. - The audit committee and board believe that the risk management and internal control systems are overall sufficient and effective, including resources and training programs[98]. - The company faces various risks and uncertainties that could adversely affect its overall business performance and financial condition if not effectively managed[126]. - The group emphasizes the importance of attracting and retaining skilled management and technical talent for business growth, with potential risks from key personnel turnover[129]. - The group faces regulatory compliance risks across various aspects, including competition law, personal data security, and property management, which could impact operations[130]. - Project completion timelines and costs may be adversely affected by factors such as material shortages and labor disputes, potentially leading to delays and cost overruns[131]. Sustainability and Community Engagement - The group has established a sustainability committee and aims for green building certifications for new developments, reflecting its commitment to environmental performance[135]. - The property management division has achieved ISO 14001 certification and continues to receive recognition for its environmental management efforts[136]. - The group has implemented various environmental measures and signed agreements to promote waste reduction and energy efficiency[138]. - The group prioritizes employee safety and development, offering training and support for personal growth, which is crucial for sustainable business growth[140]. - The group received multiple awards for its family-friendly employment policies, highlighting its commitment to creating a better work environment[140]. - The company actively participates in community service activities, including charity events and volunteer services[148]. - The company has won multiple awards for creating a family-friendly workplace, including the "Outstanding Family-Friendly Employer Award" and "Special Recognition (Gold Award)"[151]. - The company ensures compliance with applicable laws and regulations in property management, including personal data protection[152]. - The company adheres to local laws and regulations in its property investments in Indonesia and Thailand[153]. Shareholder and Investor Relations - The company encourages two-way communication with institutional and private investors, providing timely information through various reports and its website[110]. - The company has a dividend policy aimed at providing stable and sustainable returns to shareholders, with dividends typically paid semi-annually[110]. - The board has approved a policy to consider various factors, including financial condition and operational performance, when recommending dividends[110]. - The company is committed to effective communication with stakeholders, ensuring that shareholders can exercise their rights with informed decisions[110]. - The company’s annual report includes a comprehensive review of business performance and future development discussions[125]. Share Capital and Securities - The company issued guaranteed notes with a principal amount of USD 130 million at a price equivalent to 101.5% of the principal, netting USD 130.8 million for general corporate purposes[165]. - As of December 31, 2019, the company had no new shares issued during the year[162]. - The company has a stock option plan effective from May 7, 2015, allowing the board to grant options to eligible participants, with a total of 40,266,831 shares available for issuance under this plan, representing approximately 10% of the issued shares at that time[196]. - The maximum number of shares that can be issued to any eligible participant in a 12-month period is capped at 1% of the company's issued shares, while for major shareholders or independent non-executive directors, the limit is reduced to 0.1% and a total value of HKD 5 million[198]. - As of December 31, 2019, no stock options had been granted under the 2015 plan since its adoption[198]. - The company has outstanding convertible bonds issued in 2012 with a total value of HKD 592,572,154.40, convertible into 1,185,144,308 shares at a conversion price of HKD 0.50 per share[200]. - As of December 31, 2019, the total value of unexercised convertible bonds was HKD 592,553,354.40, which can be converted into 1,185,106,708 shares[200].

Financial Performance - The group recorded consolidated revenue of approximately HKD 207 million for the six months ended June 30, 2019, compared to approximately HKD 165 million for the same period in 2018, representing a growth of 25.5%[13] - The consolidated operating loss for the period was approximately HKD 56 million, an improvement from an operating loss of approximately HKD 107 million in the first half of 2018[13] - The group reported a loss attributable to shareholders of approximately HKD 156 million, compared to a net loss of approximately HKD 198 million in the same period last year, reflecting a reduction of 21.3%[13] - Gross profit for the six months ended June 30, 2019, was approximately HKD 176 million, an increase of about 28% from approximately HKD 138 million in the same period of 2018[31] - The gross profit margin improved to 85% for the six months ended June 30, 2019, compared to 84% for the same period in 2018[31] - The company reported a pre-tax profit of HKD 36 million for the six months ended June 30, 2019, compared to HKD 25 million in the previous year, showing an improvement in profitability[83] - The company reported a pre-tax loss of HKD 156 million for the six months ended June 30, 2019, compared to a loss of HKD 198 million in the same period of 2018, indicating a 21.2% improvement[99] Revenue Sources - The total rental income from PCP Jakarta was approximately HKD 95 million for the six months ended June 30, 2019, up from approximately HKD 59 million in the same period of 2018, indicating a year-on-year increase of 61%[20] - Revenue from property and facility management services in Hong Kong and Japan was approximately HKD 30 million, compared to approximately HKD 29 million in the same period of 2018[27] - The seasonal leisure business in Japan recorded revenue of approximately HKD 79 million for the six months ended June 30, 2019, compared to approximately HKD 75 million in the same period of 2018, reflecting a growth of 5.3%[26] - The revenue from the Japanese leisure activities business increased to HKD 79 million from HKD 75 million, while Indonesian property investment revenue rose to HKD 95 million from HKD 59 million[83] Assets and Liabilities - As of June 30, 2019, the group had total assets of approximately HKD 85.57 billion, an increase from HKD 40.89 billion as of December 31, 2018[33] - Current liabilities totaled approximately HKD 2.542 billion as of June 30, 2019, compared to approximately HKD 1.039 billion as of December 31, 2018[31] - The total assets as of June 30, 2019, were HKD 11,216 million, an increase from HKD 10,160 million as of December 31, 2018, indicating growth in the company's asset base[86] - The total liabilities as of June 30, 2019, were HKD 8,183 million, compared to HKD 7,466 million at the end of 2018, reflecting an increase in financial obligations[86] Cash Flow and Financing - The group has a cash utilization of approximately HKD 26 million for the six months ended June 30, 2019, compared to HKD 26 million for the same period in 2018[34] - The net cash used in operating activities was HKD (26 million), compared to HKD (2,225 million) in 2018, indicating a significant improvement[76] - The cash used in investing activities amounted to HKD (413 million), a decrease from HKD 871 million in the same period last year, reflecting a reduction in capital expenditures[76] - The net cash generated from financing activities was HKD 275 million, down from HKD 704 million in 2018, primarily due to increased borrowing costs[76] - The group’s borrowings amounted to approximately HKD 6.646 billion as of June 30, 2019, compared to approximately HKD 6.094 billion as of December 31, 2018[31] Strategic Initiatives - The group plans to redevelop the Central Hong Kong site into luxury residential or commercial use, pending government approval[24] - The group anticipates an increase in office supply in Jakarta over the next two years but maintains a strategic leasing plan to sustain the performance of PCP Jakarta[15] - The group plans to adjust its sales strategy and development plans in response to macroeconomic uncertainties[38] - The group is exploring potential projects globally, including in Hong Kong and Southeast Asia, while maintaining a cautious approach[38] Tax and Legal Matters - The group incurred a tax liability of IDR 1,838.344 billion (approximately HKD 1.015 billion) due to a tax assessment from the Indonesian tax authority[35] - The group has prepared to appeal against the tax assessment, believing the Indonesian tax authority's evaluation lacks basis[35] - The company reported a contingent liability of approximately HKD 2.03 million related to a tax assessment from the Indonesian tax authority[133] Market Outlook - The company provided an optimistic outlook for the second half of 2019, projecting a revenue growth of 10% to 12%[48] - The company is expanding its market presence in Southeast Asia, targeting a 25% increase in market share by 2021[48] - The company plans to enhance its digital marketing strategies, expecting a 40% increase in online sales channels[48] Management and Governance - The board did not declare an interim dividend for the six months ended June 30, 2019, consistent with the previous year[37] - The management team emphasized the importance of sustainability initiatives, aiming for a 30% reduction in carbon footprint by 2025[48] - The audit committee reviewed the unaudited condensed consolidated interim financial information for the six months ended June 30, 2019, and held one meeting during the review period[186]

Overseas Projects and Developments - The company reported steady progress in all overseas projects despite challenges in the past year[10]. - Approximately 84% of the office space at Pacific Century Place, Jakarta has been reserved or leased[13]. - The company plans to continue selling remaining units of the Park Hyatt Niseko Hanazono Residences, expected to be completed by the end of 2019[11]. - The company has initiated infrastructure works and the first phase of development projects in Phang Nga, Thailand[11]. - The company acquired a site in Central Jakarta, Indonesia, to develop a premium Grade A office building[7]. - The company aims to expand its property portfolio by redeveloping the site at 3-6 Gilman Road, Central, Hong Kong into luxury residential or commercial properties[7]. - The company has established a long-term property development plan to build world-class resort developments in Hokkaido, Japan, and Phang Nga, Thailand[6]. - The group successfully sold or reserved 98 out of 114 units in the Japan Hokkaido project, with completion expected by the end of 2019[21]. - The group is currently in the design phase for a project in Phang Nga, Thailand, and has commenced infrastructure works[22]. - The group plans to redevelop the property at 3-6 Gilman Hennessy Road in Central, Hong Kong, into luxury residential or commercial use, pending government approval[23]. Financial Performance - The group recorded consolidated revenue of approximately HKD 300 million for the financial year ending December 31, 2018, an increase of about 83% compared to HKD 164 million in 2017[27]. - The total rental income for the group was approximately HKD 138 million in 2018, compared to HKD 3 million in 2017[19]. - The group reported a consolidated operating loss of approximately HKD 228 million in 2018, down from a loss of HKD 286 million in 2017[27]. - The consolidated net loss attributable to shareholders was approximately HKD 437 million in 2018, compared to HKD 339 million in 2017[27]. - The group’s gross profit for the year was approximately HKD 250 million, an increase of about 97% from HKD 127 million in 2017, with a gross margin of 83%[27]. - The group’s financing costs for the year were approximately HKD 201 million, an increase from HKD 86 million in 2017[29]. - The net capital debt ratio as of December 31, 2018, was 128.8%, up from 18.4% on December 31, 2017[32]. - The net cash used in operating activities for the year was approximately HKD 3.006 billion, compared to HKD 274 million in 2017, largely due to a cash payment of HKD 2.164 billion for the acquisition of interests in a Hong Kong property company[33]. - The group’s income tax for the year was approximately HKD 48 million, an increase from HKD 26 million in 2017, mainly due to tax expenses from income earned by a prime Grade A office building in Jakarta[34]. - As of December 31, 2018, the group's total asset value was approximately HKD 4.089 billion, a significant increase from HKD 89 million as of December 31, 2017[35]. Market Outlook and Strategy - The group anticipates continued moderate global economic expansion, with potential interest rate hikes by the US Federal Reserve in the coming year[41]. - The Jakarta office leasing market is expected to remain competitive, with record supply of premium office space anticipated to ease over the next two years[41]. - The group's first luxury hotel in Japan, Park Hyatt Niseko, Hanazono, is expected to be completed by the end of 2019, benefiting from an increase in tourist arrivals[41]. - Management will continue to seek potential projects globally, including in Hong Kong, Southeast Asia, and London[41]. - The company reported a significant increase in property sales, achieving a total revenue of HKD 1.2 billion, representing a 15% year-over-year growth[45]. - The company has outlined a positive outlook for the next fiscal year, projecting a revenue growth of 10% to 12%[45]. - The company is expanding its market presence in Southeast Asia, targeting a 25% increase in market share within the next two years[45]. - A strategic acquisition of a local competitor is in progress, which is anticipated to enhance the company's portfolio and increase overall market competitiveness[45]. Corporate Governance - The company reported a commitment to effective corporate governance, integrating rigorous integrity and ethical standards into its management structure and internal control processes[55]. - The board of directors consists of four executive directors, one non-executive director, and three independent non-executive directors, ensuring a diverse governance structure[59]. - The board is responsible for overall strategy formulation, management goal setting, and monitoring management performance, with specific powers retained for key decisions[61]. - The company has adopted its own securities trading code, ensuring compliance with the standards set forth in the Listing Rules[57]. - The company confirmed compliance with its securities trading code throughout the fiscal year ending December 31, 2018[58]. - The chairman of the board, Mr. Li Ze Kai, and the CEO, Mr. Li Zhi Kang, have clearly defined roles to ensure effective governance and operational management[62]. - The company emphasizes transparency, accountability, and integrity in all business operations, aligning with applicable laws and regulations[56]. - The board has the authority to consider and approve financial statements and announcements related to interim and annual performance[61]. - The company is committed to maintaining an effective risk management and internal control system to ensure compliance with applicable rules and regulations[61]. Risk Management - The group has established a risk management framework based on a "three lines of defense" model to enhance its internal controls and risk management effectiveness[100]. - The audit committee reviews the effectiveness of the risk management and internal control systems at least annually, ensuring compliance with relevant regulations and accounting standards[98]. - The group has implemented various policies and procedures to assess and improve the effectiveness of its risk management and internal control systems, including regular evaluations by senior management[105]. - The internal audit department adopts a risk-based audit approach and reports its findings to the audit committee, ensuring independent assurance on the effectiveness of risk management functions[103]. - The group primarily engages in the development and management of quality properties and infrastructure projects, as well as investing in premium properties[128]. - The group faces various risks, including market risks related to economic conditions and government policies in Indonesia, Japan, and Hong Kong, which could significantly impact operational performance and financial condition[134]. - Human resource risks are critical, as the group's success relies on attracting, nurturing, and retaining skilled management and technical talent, with potential turnover posing a significant threat to future performance[135]. - Regulatory and operational compliance risks are present, requiring adherence to local laws and regulations, including competition law and data protection[136]. - Geopolitical risks, such as foreign currency fluctuations and regional disputes, may adversely affect the group's business operations[137]. Sustainability Initiatives - The company has established a sustainability committee and adopted a self-developed sustainability policy aimed at achieving green building certification for all new development projects[142]. - Since 2005, the group's property management division in Hong Kong has obtained ISO 14001 certification, successfully transitioning to the latest version of the standard[144]. - The main office building in Jakarta received the LEED Platinum certification from the US Green Building Council, highlighting its outstanding contributions to sustainability[142]. - The company has voluntarily disclosed its carbon footprint data since 2017, contributing to environmental protection efforts[157]. - The group aims to reduce operational waste and ensure responsible disposal of any residual waste, promoting recycling initiatives[145]. Employee and Community Engagement - The group is committed to providing a safe and harassment-free work environment for employees, emphasizing health and safety measures[147]. - The group has received recognition for its family-friendly employment policies, including three awards in the 2017/18 Family-Friendly Employer Award Scheme[147]. - The company actively participates in community service activities, including various charitable events and volunteer services[155]. - Annual customer satisfaction surveys are conducted to gather feedback and improve service quality in property management[150]. Shareholder Information - As of December 31, 2018, the company's distributable reserves amounted to HKD 4.431 billion, slightly down from HKD 4.437 billion in 2017[170]. - The board did not declare any interim dividends for the year ended December 31, 2018, nor recommend any final dividends for shareholders[162]. - The company has not issued any new shares during the year ended December 31, 2018[168]. - The company has a stock option plan approved on May 7, 2015, which is valid for ten years[200]. - The stock option plan aims to encourage eligible participants to enhance the company's value and benefit shareholders[200].