Financial Performance - For the year ending December 31, 2023, the net cash flow from investing activities was HKD 85.5 million, an increase from HKD 44.0 million in 2022[13]. - The company reported a total of HKD 4,234.1 million in new bank loans, compared to HKD 5,129.8 million in 2022, while the repayment of bank loans was HKD (4,136.2) million[13]. - The net cash flow from financing activities was HKD (1,328.1) million, slightly improved from HKD (1,342.8) million in 2022[13]. - The company received interest income of HKD 55.4 million, up from HKD 35.2 million in the previous year[13]. - The company reported a decrease in cash and cash equivalents of HKD (3.6) million, compared to an increase of HKD 89.8 million in 2022[13]. Investment Activities - The company acquired a subsidiary for HKD 1.0 million during the year, while the purchase of financial assets at amortized cost was HKD (30.0) million, down from HKD (184.8) million in the previous year[13]. - The issuance of unsecured notes amounted to HKD 312.0 million, an increase from HKD 156.0 million in the previous year[13]. - The company is focused on expanding its investment portfolio and enhancing asset management services[16]. Equity Interests - The company reported a 62.3% equity interest in Shenzhen Chuangxian Intelligent Technology Co., Ltd. and its main business includes security systems and software design, development, and distribution[21]. - The company holds a 52.7% equity interest in Yieldtop Holdings Limited, which focuses on investment holding[21]. - The company has a 54.2% equity interest in Kunming China-US Friendship Park, primarily engaged in project management[21]. - The company has a 43.1% equity interest in R.H.I. Licensing B.V., which is involved in trademark holding[31]. - The company reported a 32.3% equity interest in Regal REIT, which focuses on property investment[32]. - The company has a 43.1% equity interest in Wealthy Path Investments, which is engaged in investment holding[32]. - The company has a 43.1% equity interest in Will Smart Investments Limited, which focuses on property investment[32]. - The company has a 43.1% equity interest in Unicorn Star Limited, which is involved in financial asset investment[32]. - The company reported a registered capital of 140,000 USD for 富豪酒店投資管理（上海）有限公司, which is engaged in hotel management[32]. - The company has issued 3,257,431,189 fund units for Regal REIT, reflecting its significant market presence in property investment[32]. Financial Reporting Standards - The group has adopted new and revised Hong Kong Financial Reporting Standards in the current year's consolidated financial statements[66]. - The amendments to HKAS 8 clarify the distinction between changes in accounting estimates and changes in accounting policies, with no impact on the group's financial statements[39]. - The amendments to HKAS 21 require entities to assess the exchangeability of currencies and disclose the impact of non-exchangeable currencies, but are not expected to have a significant impact on the group's financial statements[43]. - The amendments to HKAS 1 require entities to disclose significant accounting policy information, which the group has done in its financial statement notes[67]. - The group has maintained consistent accounting policies across its subsidiaries, ensuring that their financial statements are prepared using the same reporting period and accounting policies[64]. - The group is currently evaluating the impact of the amendments to the Hong Kong Financial Reporting Standards, particularly regarding the classification of a loan agreement amounting to HKD 851,800,000[72]. - The amendments clarify the classification of liabilities as current or non-current, which will not significantly impact the group's financial statements[72]. Risk Management and Internal Control - The board has conducted an annual review of the effectiveness of the group's risk management and internal control systems[130]. - The management has implemented a comprehensive risk management and internal control system to identify and monitor significant operational risks[171]. - The board of directors is responsible for the company's risk management and internal control systems, with regular reviews conducted to assess their effectiveness[190]. Governance and Compliance - The company has adopted a code of conduct for directors' securities transactions, ensuring compliance with the standards set forth in the Listing Rules[170]. - The company has established policies to ensure insider information is disclosed fairly and timely according to applicable laws and regulations[190]. - The company emphasizes the importance of confidentiality regarding insider information until it is publicly disclosed[190]. - The company has a structured approach to compliance, with the company secretary providing updates on legal and regulatory responsibilities to new directors[191]. - The company has implemented a training program for directors to enhance their knowledge and skills, ensuring they contribute effectively to the board[191]. - The company has a comprehensive governance report included in its annual report, detailing its corporate governance practices[194]. Board Committees - The group has established three board committees: the Audit Committee, the Remuneration Committee, and the Nomination Committee to fulfill different functions authorized by the board[48]. - The audit committee reviewed the accounting standards and internal controls, holding two meetings in 2023 with full attendance from its members[183]. - The remuneration committee held one meeting in 2023 to review the remuneration policies for directors and senior management, with full attendance from its members[186]. - The board has established a nomination committee to ensure fair and transparent nomination and selection processes for directors[165]. - The company emphasizes the importance of a diverse board to achieve strategic and business objectives, adopting a board diversity policy[166]. Financial Statements - The financial statements include a consolidated income statement, comprehensive income statement, and cash flow statement, providing a clear view of the company's financial performance[194]. - The company confirmed its responsibility for preparing financial statements that accurately reflect its financial position and comply with applicable accounting standards[168]. - The external auditor, Ernst & Young, has provided a statement regarding its reporting responsibilities, included in the independent auditor's report of the annual report[169]. - The company reported a financial statement review for the six months ending June 30, 2023, with a total of HKD 1.8 million[189]. Asset Management - The group conducts annual impairment tests for goodwill, with the most recent test performed on December 31[75]. - Any impairment loss is recognized when the carrying amount of an asset exceeds its recoverable amount, which is determined based on the higher of its fair value less costs to sell and its value in use[86]. - The group recognizes gains or losses from changes in the fair value of investment properties in the income statement for the year they occur[87]. - The group assesses whether a contract contains a lease at the inception of the contract, classifying it accordingly[88]. - The group recognizes expected credit losses based on the difference between contractual cash flows and expected cash flows[133]. - The group has established a provision matrix based on historical credit loss experience and adjusts for specific forward-looking factors[136]. - The group’s intangible assets are tested for impairment at the cash-generating unit level annually[120]. - The group adopts a single method for recognizing and measuring all leases, excluding short-term leases and low-value asset leases[139]. - Lease liabilities are recognized at the present value of lease payments made during the lease term, including fixed payments and variable lease payments based on an index or rate[141].
世纪城市国际(00355) - 2023 - 年度财报