Financial Performance - The revenue for the year ended December 31, 2020, was HK$51,251,000, a decrease of HK$4,693,000 or 8.39% compared to HK$55,944,000 in 2019[9]. - The loss for the year amounted to HK$56,650,000, representing a decrease of HK$114,664,000 from a profit of HK$58,014,000 in 2019[9]. - A share of loss from associates was HK$69,029,000 in the current year, compared to a profit of HK$8,967,000 in the previous year[9]. - A fair value loss of investment properties was HK$32,635,000, compared to a fair value gain of HK$9,128,000 in the previous year[9]. - Loss per share amounted to HK4.57 cents, while the net asset value per share was HK$3.50 as of December 31, 2020[9]. - No dividend was recommended for the year ended December 31, 2020, compared to an interim dividend of HK2.5 cents per share in 2019[9]. - The Group's total assets decreased from HK$4,658,964,000 to HK$4,544,502,000[12]. - The net assets of the Group decreased from HK$4,436,589,000 to HK$4,345,919,000[12]. - The total liabilities of the Group decreased from HK$222,375,000 to HK$198,583,000[12]. - The Group had cash and bank balances of HK$186,175,000 as at 31st December, 2020, down from HK$217,031,000[12]. - The ratio of total liabilities to total assets was approximately 4.37% as at 31st December, 2020, compared to 4.77% in 2019[12]. - The Group's current assets amounted to HK$445,823,000, exceeding current liabilities by HK$414,089,000[12]. Property Management and Operations - The average occupancy level of commercial properties at Harbour Crystal Centre was approximately 98%[11]. - Rent concessions granted to some tenants averaged around 50% of original rents due to the pandemic[11]. - The associate company sold 2 houses and completed transactions for 5 houses at The Redhill Peninsula[11]. - The average occupancy level of industrial properties at Ap Lei Chau was approximately 58% with reasonable rental income performance[11]. - The Group aims to maintain total rental income from investment properties at the same level as last year[15]. - The target for the sale of The Redhill Peninsula Project is to sell one house quarterly, with a 33.33% ownership stake[15]. - The Group's objectives for 2021 include improving the investment portfolio through acquisitions of quality properties and disposals of under-performing properties[15]. - The Group plans to be more proactive in forming strategies for the sale and leasing of remaining houses in The Redhill Peninsula[15]. - The Group expects significant dampening of demand for retail space in Harbour Crystal Centre due to COVID-19 travel restrictions[21]. - The roll-out of the vaccine program is anticipated to stabilize retail business by summer, with hopes for relaxation of travel restrictions[21]. - Early signs of recovery in the residential market are noted, driven by pent-up demand and expectations of economic recovery post-COVID[21]. - The Group is actively evaluating attractive investment opportunities arising from the current difficult trading environment for potential long-term acquisitions[21]. Corporate Governance - The company has a total of three Independent Non-Executive Directors (INEDs), representing not less than one-third of the Board, ensuring compliance with corporate governance standards[30]. - The Board has held four meetings during the year to discuss the Group's overall strategy and financial performance[29]. - The company has adopted enhanced corporate governance procedures as detailed in its annual report, ensuring transparency and accountability[27]. - The company has confirmed the independence of all INEDs under the guidelines set out in the Listing Rules[31]. - The Board's responsibilities include overall strategy, annual operating budget, and approval of significant contracts and transactions[37]. - Directors have access to Company Secretary services and can seek independent professional advice at the Company's expense[41]. - Continuous professional development activities for Directors include attending relevant training and seminars[42]. - The Company has adopted a board diversity policy to achieve balanced diversity at the Board, considering criteria such as gender, age, and professional experience[44]. - The roles of Chairman and Chief Executive are clearly separated, with Mr. Patrick Lee Seng Wei leading the Board and Mr. Lee Shu Yin managing day-to-day operations[44]. - The Board is responsible for corporate governance duties, including developing and reviewing policies and practices on corporate governance[47]. - The Nomination Committee specifies the process and criteria for the selection and recommendation of candidates for directorship[46]. - The Company ensures compliance with legal and regulatory requirements through regular reviews and monitoring of its policies[47]. - The Company updates Directors on any major developments of the Listing Rules to maintain good corporate governance practices[46]. - The Company’s governance practices include a code of conduct applicable to employees and Directors[47]. Remuneration and Compensation - The Remuneration Committee reviewed and recommended the existing policy and structure for the remuneration of Directors[55]. - The remuneration packages of all Executive Directors and Independent Non-Executive Directors (INEDs) for the year ended December 31, 2019, were reviewed[55]. - The Committee recommended the bonus for the year ended December 31, 2019, and the salary for the year 2020 of the Chief Executive[55]. - The Directors' fee for the year 2020 was reviewed and recommended for Board approval[55]. - The services fees and renewal of terms of appointment of the INEDs were reviewed and recommended for Board approval[55]. - The Remuneration Committee met at least once a year, with one meeting held in 2020[54]. - The attendance of each member at the Remuneration Committee meeting is documented in the report[54]. - The terms of reference of the Remuneration Committee are in compliance with the code provision B.1.2 of the Corporate Governance Code[54]. - The Remuneration Committee is provided with sufficient resources to discharge its duties[54]. Audit and Risk Management - The Audit Committee consists of three independent non-executive directors (INEDs) and is chaired by Mr. Li Chak Hung, ensuring independence and objectivity[57]. - The Audit Committee reviewed and approved the audit scope and fees for the interim results review for the six months ended June 30, 2020, and the final audit for the year ended December 31, 2020[60]. - Two Audit Committee meetings were held in 2020, with attendance details provided in the report[60]. - The Audit Committee reviewed the financial reports for the year ended December 31, 2019, the six months ended June 30, 2020, and the year ended December 31, 2020, along with relevant management representation letters[60]. - The Audit Committee conducted an annual review of the Group's risk management and internal control systems[60]. - The Audit Committee ensured coordination between internal and external auditors, promoting effective collaboration[58]. - The Audit Committee reviewed the internal audit plan and reports prepared by the Internal Audit Function of the Group[60]. - The Audit Committee recommended updates on resources, qualifications, and training for the Group's accounting, internal audit, and financial reporting functions[60]. - The Audit Committee reviewed policies related to whistleblowing, connected transactions, and risk management for annual assessment[60]. - The Group's risk management and internal control systems are designed to provide reasonable assurance against material misstatement or loss, supporting the achievement of the Group's objectives[68]. - The Board reviewed the effectiveness of the Group's risk management and internal control systems in 2020, which were considered effective and adequate[68]. Environmental, Social, and Governance (ESG) - The Company adopted a Sustainability Policy in August 2017, focusing on employment practices, business integrity, and environmental sustainability[90]. - The Board has overall responsibility for the Company's Environmental, Social, and Governance (ESG) strategy and reporting, ensuring effective risk management and internal control systems[90]. - The report outlines significant ESG issues and selected Key Performance Indicators (KPIs) relevant to the Group and its stakeholders for the year ended December 31, 2020[91]. - Key material issues identified include anti-corruption, emissions, resource usage, and community investment, with specific KPIs set for each area[91]. - The Company engages key stakeholders regularly through meetings and feedback channels to assess and prioritize ESG issues[91]. - The effectiveness of the Group's risk management systems was evaluated by senior management and external auditors, concluding that they are adequate[90]. - The Company is committed to contributing positively to the sustainable development of society and the environment[90]. - The Group's total electricity consumption in 2020 was approximately 18,705 kWh, a 15% reduction compared to 21,960 kWh in 2019[96]. - The Group has adopted internal control policies to enhance resource consumption efficiency, with only 29 employees consuming minimal amounts of electricity and paper[96]. - The Group promotes energy-saving and paper reduction guidelines among all staff, encouraging practices such as switching off lights and equipment when not in use[96]. - The Group has implemented electronic board paper systems since March 2017, allowing directors to access meeting papers online, improving efficiency while saving paper[96]. - The Group plans to replace compact fluorescent lamps with LED lighting to enhance energy efficiency[98]. - The Group intends to replace traditional electrical lift systems with water-saving systems to improve resource efficiency[98]. - The Group will use environmentally friendly refrigerant gases for air-conditioning units to minimize environmental impact[98]. - The Group aims to install water-efficient taps in washrooms and promote water conservation concepts to customers[98]. Community Engagement - The Group organized two staff charity events in 2020, raising funds to support World Vision and local welfare agencies in Hong Kong[132]. - The Group's commitment to community investment includes encouraging staff participation in charity and social services[132]. Shareholder Communication - The Company ensures effective communication with Shareholders through various formal channels, including interim and annual reports[74]. - The Company encourages Shareholders to provide feedback to enhance transparency[84]. - The 2020 AGM was held on May 20, 2020, with attendance records documented in the report[74]. - The Company emphasizes the importance of good communication with Shareholders to maintain effective governance[74]. Future Outlook - The company has set a future outlook with a revenue growth target of 10-15% for the next fiscal year, driven by new product launches and market expansion strategies[151]. - The company plans to expand its market presence in Southeast Asia, targeting a 30% increase in market share within the next two years[151]. - A strategic acquisition of a local competitor was completed, valued at HKD 500 million, expected to enhance the company's service offerings and customer base[152]. - The company introduced two new products in Q4 2020, which are projected to contribute an additional HKD 200 million in revenue over the next year[151]. - The management emphasized a focus on sustainability initiatives, allocating HKD 50 million towards green technology projects in 2021[152].
亚证地产(00271) - 2020 - 年度财报