Financial Performance - The Group's revenue for the year ended December 31, 2019, was HK$55,944,000, a decrease of HK$2,510,000 or 4.29% compared to HK$58,454,000 in 2018[6] - Profit attributable to the owners of the Company amounted to HK$58,014,000, a decrease of HK$54,733,000 or 48.54% from HK$112,747,000 in 2018[6] - Share of profit of associates decreased from HK$56,302,000 in the previous year to HK$8,967,000 in the current year[6] - Fair value gain of investment properties decreased from HK$25,631,000 in the previous year to HK$9,128,000 in the current year[6] - Earnings per share amounted to HK4.67 cents, down from HK9.08 cents in 2018[6] - Net asset value per share attributable to the owners of the Company was HK$3.57 as of December 31, 2019, compared to HK$3.63 in 2018[6] - The board declared an interim dividend of HK2.5 cents per share for the year ended December 31, 2019, compared to HK10 cents per share in 2018[6] - Distributable reserves of the Company as at December 31, 2019, amounted to HK$92,776,000, down from HK$157,706,000 in 2018[190] Assets and Liabilities - For the year ended 31st December, 2019, the Group's total assets decreased from HK$4,714,880,000 to HK$4,658,964,000[19] - The net assets of the Group decreased from HK$4,509,150,000 to HK$4,436,589,000 as of 31st December, 2019[19] - The total liabilities increased from HK$205,730,000 to HK$222,375,000 as of 31st December, 2019, with a total liabilities to total assets ratio of approximately 4.77%[19] - As of 31st December, 2019, the current assets of the Group were HK$365,512,000, exceeding current liabilities by HK$313,230,000[20] - The Group had no bank loans as of 31st December, 2019, and will discuss the renewal of banking facilities if necessary[19] Market Conditions and Strategy - The residential property market, particularly in the luxury segment, has stagnated since the latter part of 2019 due to ongoing social unrest and the coronavirus outbreak, leading to weak demand for luxury houses in the Redhill Peninsula joint venture project[26] - The rental market for retail space is expected to remain extremely weak, with negative impacts on turnover and future rents at Harbour Crystal Centre due to the decline in customers during the health crisis[26] - The company plans to improve its investment portfolio by acquiring quality properties at attractive valuations and disposing of under-performing properties to balance short-term returns and long-term capital appreciation[26] - The Group aims to maintain the same total rental income from self-operated investment properties as the previous year[24] - The Group's target for the sale of The Redhill Peninsula Project is to sell one house quarterly[24] Corporate Governance - The Board consists of seven directors, including four Executive Directors and three Independent Non-Executive Directors (INEDs) [66] - The Company held four Board meetings during the year, with all directors actively participating [72] - The INEDs provided a wide range of expertise and experience, contributing to independent judgment on the Group's strategy and performance [70] - The Board has delegated day-to-day responsibilities to executive management under the supervision of the Executive Committee [76] - The Company has received annual confirmations of independence from all INEDs, ensuring compliance with the Listing Rules [71] - The Board's decision-making covers overall strategy, annual operating budget, and significant policy and financial matters [76] - The Company has adopted a board diversity policy in August 2017 to achieve balanced diversity at the Board[83] - The roles of Chairman and Chief Executive are separated, with Mr. Patrick Lee Seng Wei as Chairman and Mr. Lee Shu Yin as Chief Executive, ensuring clear responsibilities[83] Risk Management - The Audit Committee was established in September 1998 and consists of three INEDs, ensuring independence and objectivity[93] - The Audit Committee's responsibilities include ensuring effective risk management and internal control systems are established by management[93] - The internal audit function conducted an independent appraisal of the adequacy and effectiveness of the Group's risk management and internal control systems[111] - The Group's risk management systems are designed to provide reasonable assurance against material misstatement or loss[109] - The annual assessment of risks is performed by relevant business units and department heads, coordinated by the internal audit function[109] Sustainability and Environmental Impact - The Company is committed to contributing to sustainable development and has adopted a Sustainability Policy covering employment, business integrity, and environmental principles since August 2017[136] - The Group's sustainability policy includes compliance with laws and regulations, aiming to exceed minimum requirements in environmental matters[140] - The Group's total electricity consumption in 2019 was 21,960 kWh, representing a 20% reduction compared to 27,300 kWh in 2018[143] - The Group promotes the use of electronic board paper systems since March 2017, allowing Directors to access meeting papers online, improving efficiency and saving paper[144] - The Group is committed to environmental sustainability and aims to reduce its operational impact on the environment[188] Employee and Social Responsibility - The Group employed a total of 30 staff in Hong Kong as of December 31, 2019, compared to 31 in 2018[155] - Staff training hours totaled 99 in 2019, an increase from 80.5 hours in 2018[160] - The Group's compensation and benefits exceed the minimum requirements set by relevant regulations, ensuring competitiveness within the industry[155] - The Group promotes a good work-life balance through well-being programs offered to staff[155] - In 2019, the Group organized three staff charity events, raising funds to support various humanitarian efforts[176] Shareholder Communication - The Company ensures that information is disseminated to Shareholders in a timely manner through various formal channels, including interim and annual reports, announcements, and circulars[119] - The Company recognizes the importance of good communication with Shareholders and actively engages with them during the AGM[119] - Shareholders representing at least 5% of the total voting rights can request the Directors to convene an extraordinary general meeting (EGM) by sending a written request[127]
亚证地产(00271) - 2019 - 年度财报