Financial Performance - The group's revenue for the year ended March 31, 2024, was approximately HKD 110,500,000, a significant increase from HKD 63,000,000 in 2023[5] - The loss attributable to equity holders was HKD 320,700,000, compared to a loss of HKD 328,700,000 in 2023, with a loss per share of HKD 0.1367[9] - Cash reserves totaled HKD 938,800,000, including HKD 18,700,000 from bond and securities investments, while bank borrowings amounted to HKD 652,300,000[5] - Property sales for the year reached approximately HKD 49,700,000, a substantial increase from HKD 1,400,000 in 2023[6] - Rental and management fee income was approximately HKD 19,600,000, down from HKD 23,400,000 in 2023, primarily due to the sale of properties in Dongguan, China[6] - The group recorded a gross loss of HKD 97,100,000 due to impairment provisions for properties in Ap Lei Chau, compared to a gross loss of HKD 41,100,000 in 2023[7] - Selling and promotional expenses increased by approximately 97.7% to HKD 25,300,000, while administrative expenses remained stable at around HKD 82,700,000[8] - The fair value loss from investment properties was HKD 76,100,000, slightly improved from HKD 78,900,000 in 2023[7] - The board decided not to recommend a final dividend for the year ended March 31, 2024, maintaining a prudent cash position[10] Property Valuation and Development - The valuation of the group's property in Anshan, China, decreased to approximately RMB 541,700,000 (approximately HKD 584,000,000) as of March 31, 2024[18] - The hotel and resort villas in Xiamen have a total estimated value of RMB 383,200,000, with the hotel valued at RMB 171,200,000 and the 30 villas valued at RMB 212,000,000[22] - The annual rental income from the hotel and resort villas is approximately RMB 18,700,000, equivalent to about HKD 20,200,000[25] - The commercial property in Dongguan has an estimated value of RMB 36,300,000, with recorded rental income of approximately RMB 700,000 during the review period[29] - The valuation of the office building in Kuala Lumpur has decreased to MYR 158,800,000, with an average rental price of MYR 814 per square foot[31] - The property development project in Ap Lei Chau has a total floor area of approximately 40,000 square feet, with 4 units pre-sold generating total sales of approximately HKD 15,400,000[34] - The company has incurred an impairment provision of approximately HKD 154,800,000 for the property development project due to market downturn and high interest rates[34] - The company is seeking suitable opportunities to sell its investment properties to strengthen its financial position[32] - The company holds a 69% interest in a property development project in Changsha, with total historical investment costs of approximately HKD 23,300,000[42] - The group holds a 51% interest in a project in Chengdu, with a book cost of approximately RMB 126 million (about HKD 135.8 million), including a provision of HKD 7.9 million for slow progress on a court judgment[43] Employee and Management Information - The group employed 89 staff members as of March 31, 2024, and provides various benefits including discretionary bonuses and medical insurance[62] - The company emphasizes talent training and development to create a vibrant work atmosphere[62] - The board expressed gratitude to all employees for their dedication and contributions during the year[63] - The chairman, Chuang Ka Fung, has over 20 years of experience in property business and corporate management[71] - The vice-chairman, Li Mei Sin, has over 38 years of experience in finance, corporate finance, and management[71] - The managing director, Chuang Ka Fung, has over 14 years of experience in construction and interior design[72] - The executive director, Chuang Ka Gan, has accumulated 15 years of experience in finance and corporate management[72] - The company is committed to providing employee training programs as needed[62] Corporate Governance - The company is focused on maintaining high levels of corporate governance to protect and enhance shareholder interests[86] - The company has independent non-executive directors with extensive experience across various sectors, contributing to strategic decision-making[78] - The financial director has over 19 years of experience in finance, accounting, and auditing, ensuring sound financial management[81] - The company has implemented a new board diversity policy to promote a varied and inclusive leadership structure[87] - The company is committed to continuous improvement in corporate governance practices in line with the Hong Kong Stock Exchange's guidelines[86] - The board consists of 8 members, including the Chairman, Vice Chairman, and Managing Director, with a balanced composition reflecting diverse knowledge and experience relevant to the company's business[95] - The nomination committee has established a formal and transparent process for the appointment and removal of directors, ensuring that all newly appointed directors are elected at the first shareholder meeting following their appointment[98] - The company has adopted the standard code of conduct for securities trading by directors as per the listing rules, confirming compliance from all directors[105] Risk Management - The company has implemented a robust risk management process to identify, assess, and manage significant risks, including a risk register that is reviewed annually[118] - The risk management framework includes daily operational management, compliance oversight, and independent assurance to safeguard shareholder interests[116] - The company conducts continuous and regular risk monitoring to ensure the effectiveness of risk management strategies[119] - The board believes that the risk management and internal control systems are operating effectively and adequately[123] Environmental, Social, and Governance (ESG) Initiatives - Chuang's China Investments Limited focuses on property development, investment, hotel management, cemetery development, and securities trading[156] - The company emphasizes sustainable development as a key factor in its growth strategy, integrating environmental, social, and governance (ESG) considerations into its business operations[158] - The board of directors reviews and approves the company's ESG goals annually, ensuring effective risk management and internal control systems are in place[159] - The company is committed to green building development and green financing, with plans to obtain green building certifications for its projects[165] - Employee welfare and occupational health and safety are prioritized to attract and retain talent, ensuring a safe working environment[165] - The company actively engages stakeholders through various communication channels to understand their expectations and improve operations[161] - The company has implemented measures to optimize resource efficiency and address climate change, aiming to build sustainable cities and communities[165] - The company has established a robust corporate governance strategy to mitigate corruption risks and ensure compliance with anti-corruption laws[165] Community Engagement and Social Responsibility - The company donated approximately HKD 959,000 to various organizations, including HKD 423,000 to support the Hong Kong Customs Youth Development Program[198] - The company actively promotes volunteerism as part of its corporate culture to give back to the community[198] - The company has established a whistleblowing system for reporting misconduct, with cases reviewed by the audit committee[197] Environmental Impact and Sustainability Metrics - Nitrogen oxides emissions decreased to 13.70 kg in 2024 from 16.17 kg in 2023, representing a reduction of approximately 15.5%[200] - Total greenhouse gas emissions (Scope 1 and 2) reduced to 1,565 metric tons CO2 equivalent in 2024 from 1,614 metric tons in 2023, a decrease of about 3.0%[200] - Total energy consumption decreased to 2,315 MWh in 2024 from 3,043 MWh in 2023, a reduction of around 23.9%[200] - Total paper consumption decreased to 519 kg in 2024 from 673 kg in 2023, reflecting a decline of approximately 22.9%[200] - Total water consumption decreased to 44,614 cubic meters in 2024 from 49,290 cubic meters in 2023, a reduction of about 9.3%[200] - Total floor area per square meter greenhouse gas emissions improved to 11.54 kg CO2 equivalent/sqm in 2024 from 11.91 kg in 2023, showing an improvement of approximately 3.1%[200] - Total floor area per square meter total energy consumption remained stable at 0.02 MWh/sqm in both 2024 and 2023[200] - Sulfur oxides emissions slightly decreased to 0.26 kg in 2024 from 0.27 kg in 2023, a minor reduction of about 3.7%[200] - Particulate matter emissions decreased to 0.90 kg in 2024 from 0.96 kg in 2023, representing a reduction of approximately 6.3%[200]
庄士中国(00298) - 2024 - 年度财报