Energy and Environmental Goals - The group aims to reduce its overall energy consumption density, fuel consumption total density, and overall energy consumption density by 10% over the next ten years, starting from 2023/2024[1]. - The overall water generation density decreased by 96.27%, from 1.34 cubic meters per hectare to 0.05 cubic meters per hectare[3]. - The group recognizes climate change as a significant risk, with all climate-related risks assessed as medium or high risk levels[12]. - The group anticipates that climate change will increase drought risks, adversely affecting rice and soybean crop yields as well as cattle production[14]. - The group monitors greenhouse gas emissions across Scope 1, Scope 2, and Scope 3, ensuring effective and quantifiable assessments[15]. - The group has implemented a series of measures to protect soil health, recognizing it as a critical aspect of its agricultural operations[4]. Workforce and Employment - The total number of employees as of 2024 is 130, with 84 full-time and 10 part-time employees[28]. - The agricultural business employs 75% of the workforce, while the hotel business employs 27%[28]. - The employee turnover rate for the reporting period was 10.6%, with 10 employees leaving the company[58]. - The turnover rate in mainland China was 23.5%, while the overall turnover rate for the agricultural business was 7.8%[59]. - The group has established policies to ensure employee rights are protected and respected, with a focus on fair treatment in hiring, training, and promotion[22]. - The group has no significant violations related to providing a safe working environment or protecting employees from occupational hazards during the reporting period[34]. - The company emphasizes occupational health and safety, adhering to relevant laws to avoid health risks for employees[60]. Supplier and Procurement Practices - The company employed 338 suppliers in Bolivia and mainland China for agricultural resources and services[70]. - Over 80% of the company's approved suppliers are local suppliers, supporting the local economy[72]. - The company has developed a rating and scoring system for selecting suppliers, ensuring compliance with 20 predefined standards[73]. - The company does not use contractors for its agricultural business, directly hiring all employees to minimize the risk of child or forced labor[68]. Financial Performance and Revenue - The agricultural business generated revenue of approximately HKD 73,901,000, a decrease of 17.7% compared to HKD 89,749,000 in the previous year, accounting for 72.1% of the total revenue[146]. - The average selling price of soybeans decreased by 21.7% to approximately USD 360 per ton, leading to a loss of about HKD 10,967,000 in this segment, compared to a profit of HKD 21,780,000 in the previous year[146]. - The group’s revenue from continuing operations for the year ended March 31, 2024, was approximately HKD 102,484,000, a decrease of about 13% compared to HKD 117,777,000 in 2023[156]. - The total loss for the year, including both continuing and discontinued operations, was approximately HKD 322,522,000, an increase of about 63.4% from HKD 197,419,000 in the previous year[156]. - The basic loss per share for the year was HKD 4.385, compared to HKD 2.694 in the previous year[156]. Corporate Governance and Ethics - The company emphasized a zero-tolerance policy towards bribery and corruption, maintaining high ethical standards[106]. - A whistleblowing policy has been implemented to address concerns regarding misconduct, including financial reporting and ethical behavior, ensuring confidentiality for whistleblowers[133]. - The company maintains a zero-tolerance stance towards bribery and corruption, committing to ethical business practices across all operations[133]. Community Engagement and Social Responsibility - The company is committed to community support and will seek future opportunities for local investment and collaboration[108]. - The company has not held any community events or donations during the reporting period but plans to invest in local communities in the future[108]. Sustainability and ESG Initiatives - The board is committed to environmental, social, and governance (ESG) issues, ensuring compliance with legal regulations and promoting sustainable agricultural practices to reduce carbon emissions[122]. - The company has established key performance indicators (KPIs) for effective measurement and comparison of its ESG performance, adhering to the standards set by the Hong Kong Stock Exchange[124]. - A review of the sustainability strategy is conducted annually, with adjustments made as necessary to align with the company's long-term business strategy[127]. - The company has identified six major ESG aspects, including climate change, energy, environmental measures, data protection, and anti-corruption[130]. - The company is committed to sustainable development and will consider it more in future investment decisions[140]. Property and Investment Performance - The investment properties in Beijing and Shanghai had a fair value loss of approximately HKD 151,648,000, primarily due to the continued decline in demand for commercial properties in China[148]. - The group’s hotel property in Shanghai has been closed since January 8, 2023, resulting in no revenue for the year, compared to HKD 28,615,000 in 2023, and a pre-tax loss of approximately HKD 22,069,000[168]. - Rental income from property investment slightly increased by 2% to approximately HKD 28,583,000, accounting for 27.9% of total revenue[188]. - Average occupancy rates for Beijing and Shanghai properties were 80% and 54% respectively, with the latter remaining unchanged from the previous year[188]. - Segment loss decreased to approximately HKD 135,549,000, down from HKD 152,064,000 in the previous year, primarily due to reduced losses from changes in fair value of investment properties[188]. Mining Operations and Future Plans - The company has not commenced production activities in its mining operations in Indonesia, resulting in a segment loss of approximately HKD 53,675,000 for the year[149]. - The company adopted the income approach for valuation of mining rights, with the manganese ore benchmark price decreasing by approximately 10.4% to USD 133.15 per ton[191]. - The first-year production of ore is estimated at 19,000 tons, with a projected increase to 1,556,000 tons by the fifth year[191]. - Capital expenditure for the mining project is estimated at USD 9,777,000[191]. - The group plans to enhance rental income levels and may liquidate part of its Shanghai properties to increase operational funds if necessary[160]. - The group will adopt a conservative approach and closely monitor market conditions, considering partnerships with experienced parties in resource development and investment[165].
润中国际控股(00202) - 2024 - 年度财报