ALLIED GROUP(00373)2023-04-26 09:38Financial Performance - The company's revenue for the year ended December 31, 2022, was HKD 10,079.4 million, an increase from HKD 5,973.2 million in 2021, primarily due to the inclusion of revenue from Tianan China Investment Co., Ltd. since October 2021[5] - The loss attributable to shareholders for the year was HKD 1,220.5 million, compared to a profit of HKD 6,688.9 million in 2021, with a loss per share of HKD 0.35 versus earnings of HKD 1.90 per share in the previous year[5] - The company's revenue for the year was HKD 10,079.4 million, an increase of 68.5% compared to HKD 5,973.2 million in the previous year[14] - The attributable annual loss to shareholders was HKD 1,220.5 million, a significant decline from a profit of HKD 6,688.9 million in the previous year[14] - The return on equity for shareholders was (2.8)%, down from 14.5% in the previous year[14] - Basic loss per share for the year was HKD (0.35), compared to earnings of HKD 1.90 per share in the previous year[15] Asset and Equity Management - The company's net asset value per share decreased to HKD 12.27 from HKD 13.15 in the previous year, indicating a decline in shareholder equity[11] - The capital-to-debt ratio improved to 19.9% from 39.1% in the previous year, reflecting a stronger balance sheet position[11] - The company's cash and bank balances as of December 31, 2022, were approximately HKD 15,538.4 million, up from HKD 10,952.9 million in the previous year[17] - Total bank and other borrowings amounted to HKD 24,137.1 million, a decrease from HKD 29,033.3 million in the previous year[17] - The current ratio (current assets/current liabilities) improved to 1.80 times, compared to 1.67 times in the previous year[17] - The capital debt ratio (net borrowings/attributable equity) decreased to 19.9% from 39.1% in the previous year[17] Dividend Policy - The board declared a second interim dividend of HKD 0.1175 per share for the year, down from HKD 0.1250 per share in 2021, resulting in a total annual dividend of HKD 0.1250 per share compared to HKD 0.1325 per share in the previous year[6] - The board declared a second interim dividend of HKD 0.1175 per share for the year ended December 31, 2022, compared to HKD 0.1250 per share for the previous year, resulting in a total annual dividend of HKD 0.1250 per share for 2022, down from HKD 0.1325 per share in 2021[137] Strategic Focus and Future Plans - The company plans to adopt prudent strategies to navigate challenges in 2023, emphasizing employee loyalty and professionalism as key factors for future success[9] - The company aims to leverage its management and financial resources to enhance its core business operations in property and financial services[12] - The group aims to enhance liquidity across all business segments to prepare for new opportunities amid a challenging macroeconomic environment[51] - The introduction of a new credit card business is expected to generate additional revenue streams and drive medium to long-term profit growth[51] - The group plans to focus on improving occupancy rates and leasing potential of its property portfolio in response to downward pressure from rising interest rates and residual impacts of the COVID-19 pandemic[51] Risk Management - The company has established a comprehensive risk management framework, regularly reviewing and updating policies to address market changes and business strategies[37] - Key risks identified include strategic risk, credit risk, and market risk, with ongoing monitoring and mitigation strategies in place[39] - The company has adopted a strong credit management policy, maintaining prudent underwriting standards in response to the ongoing COVID-19 pandemic and market pressures[42] - Market risk has been influenced by prolonged COVID-19 impacts, geopolitical tensions, and inflationary pressures, leading to increased financial market volatility in 2022[42] - The company maintains a strategy of liquidity reserves to navigate periods of market volatility, ensuring investment discipline[42] Corporate Governance - The board consists of ten directors, including three executive directors, three non-executive directors, and four independent non-executive directors[108] - The board held four meetings during the year, with all directors actively participating in discussions regarding the group's strategy and performance[111] - The company has adopted a board diversity policy since November 2013, aiming for a balanced strategy in board member diversity[115] - The board regularly reviews its governance practices and has implemented improved procedures as per the corporate governance code[111] - The company emphasizes high levels of corporate governance, focusing on transparency, accountability, and independence[107] Human Resources - The total employee count decreased to 3,930 as of December 31, 2022, down from 4,177 in 2021, due to branch consolidation and online business transition[33] - The total employee costs amounted to HKD 1,224.3 million, a decrease from HKD 1,298.7 million in the previous year[33] - The group focuses on improving human resource management by providing attractive compensation and benefits to employees, addressing post-pandemic labor market challenges[46] Environmental, Social, and Governance (ESG) - The group aims to enhance its environmental, social, and governance (ESG) performance through sustainable development policies established since 2016[30] - The company has established a climate policy to monitor and adapt to climate-related regulations and risks[40] Investment and Development Projects - The group's property development revenue for the year was HKD 4,413.3 million, a significant increase from HKD 651.4 million in the previous year, representing a growth of approximately 577%[53] - The group's property leasing income reached HKD 728.3 million, up from HKD 326.8 million in the previous year, indicating a growth of about 123%[53] - The total floor area of the group's land reserves is approximately 23,957,000 square meters, with the attributable area being about 16,941,300 square meters[56] - The group has ongoing and planned development properties totaling 2,278,400 square meters, with significant areas in South China and East China[57] Financial Assets and Liabilities - The group has loans and advances to consumer finance customers amounting to HKD 11,025.9 million, after recognizing an impairment allowance of HKD 604.4 million, as of December 31, 2022[185] - The term loans amounted to HKD 1,699.2 million, with an impairment allowance of HKD 835.2 million recognized as of December 31, 2022[185] - As of December 31, 2022, the impairment provision for consumer finance customer loans and advances was HKD 604.4 million, resulting in a net loan balance of HKD 11,025.9 million[186] Shareholder Communication - The board emphasizes the importance of maintaining good communication with shareholders, with annual general meetings held to directly engage with them[134] - The company encourages shareholders to provide feedback to improve transparency and governance practices[136]