Financial Performance - The company reported a consolidated loss attributable to shareholders of HKD 24,044,174 for the year ended March 31, 2020, compared to a loss of HKD 9,595,470 in 2019, indicating an increase in losses of approximately 150%[19] - The group recorded total revenue of approximately HKD 48.9 million for the fiscal year ending March 31, 2020, a decrease of about 6.7% compared to HKD 52.4 million in 2019, while gross profit increased significantly by 91.1% to approximately HKD 25.8 million from HKD 13.5 million in 2019[21] - The group reported a loss attributable to shareholders of approximately HKD 24 million for the year, compared to a loss of HKD 9.6 million in 2019[21] - The group's serviced properties in Beijing recorded total revenue of approximately HKD 28.6 million, down from HKD 30.1 million in 2019, resulting in a loss of approximately HKD 10.1 million compared to a profit of HKD 10.2 million in 2019[22] - As of March 31, 2020, the group held cash and bank deposits totaling HKD 9,475,449, down from HKD 14,139,430 in 2019[25] - The group's total equity amounted to approximately HKD 296.6 million as of March 31, 2020, compared to HKD 285 million in 2019, resulting in a debt-to-equity ratio of approximately 8.0% compared to 9.3% in 2019[26] - The group reported a fair value decrease of approximately HKD 3.22 million in investment properties, compared to a fair value gain of approximately HKD 9.3 million in the previous year[21] - The group’s financial assets at fair value through profit or loss were valued at approximately HKD 23.6 million as of March 31, 2020, down from approximately HKD 38.5 million in 2019[34] Dividend Policy - The board of directors decided not to recommend the payment of interim and final dividends for the year ended March 31, 2020, consistent with the previous year[20] - The company did not recommend the distribution of interim and final dividends for the year, consistent with the previous year[43] - As of March 31, 2020, the company had no distributable reserves, similar to the previous year[45] - The company has established a sustainable dividend policy to balance shareholder interests with prudent capital management[196] - The board will review the dividend policy periodically and has the discretion to update or modify it as deemed necessary[196] - The board considers various factors, including actual and expected financial performance, retained earnings, and capital requirements when deciding on dividend declarations[195] Corporate Governance - The company emphasizes maintaining corporate governance standards, ensuring transparency, independence, accountability, and fairness[163] - The board consists of seven directors, including two executive directors, two non-executive directors, and three independent non-executive directors, ensuring a diverse range of expertise[168] - The independent auditor received a fee of HKD 1,180,000 for audit services and HKD 25,000 for non-audit services related to tax advisory[176] - The board held four meetings and one annual general meeting during the year, with the attendance records indicating full participation from executive directors[169] - The company has established a risk management framework to identify and assess risks related to its operations, ensuring compliance with relevant laws and regulations[172] - The company has not established an internal audit function, but the board believes the current risk management and internal control systems are effective[172] - The company confirms compliance with the disclosure requirements under the Securities and Futures Ordinance and has implemented measures for handling insider information[173] - The board is responsible for preparing the financial statements, ensuring they comply with statutory requirements and applicable accounting standards[178] - The company has adopted a communication policy to enhance corporate governance by encouraging transparency and comprehensive disclosure to shareholders[175] - The board believes that the current structure of having the same individual serve as both chairman and CEO does not compromise the balance of power and authority[164] - The company has taken sufficient measures to ensure its corporate governance practices meet the standards set out in the relevant codes[165] Stakeholder Engagement - The company recognizes the critical role of customers and suppliers in its operations and actively communicates to strengthen these relationships[39] - The company has a clear understanding of the importance of stakeholder relationships for long-term business development[38] - Stakeholder engagement is prioritized to ensure understanding of their perspectives and expectations for sustainable development strategies[93] - The company actively communicates with stakeholders through various channels to convey its goals and progress in key areas[96] - Stakeholders' concerns focus on compliance, environmental emissions, and corporate social responsibility[98] Environmental Sustainability - The company is committed to maintaining long-term environmental sustainability and has implemented policies to minimize its environmental impact[38] - The hotel aims to enhance sustainability and reduce energy and resource consumption in its operations[109] - The hotel implemented energy-saving measures, including pausing dining services on Wednesdays to reduce energy consumption and greenhouse gas emissions[115] - The hotel has installed grease traps to minimize harmful waste discharge into the environment, demonstrating a commitment to reducing environmental impact[119] - The hotel replaced its small tractor with a more energy-efficient model to reduce emissions[109] - The hotel monitored resource usage to explore opportunities for conserving natural resources[111] - The hotel has developed a system to record hazardous waste and paper generation, focusing on reducing waste and resource usage to alleviate landfill burdens[118] - The hotel adhered to the Air Pollution Control Ordinance, ensuring strict control over emissions[100] - Greenhouse gas emissions decreased from 1,019.22 tons to 905.69 tons, a reduction of 12.53%[102] - Total energy consumption decreased by 9.60%, from 1,756.31 MWh to 1,587.66 MWh[114] - Water consumption decreased by 5.48%, from 24,188.23 cubic meters to 22,862.00 cubic meters[114] Employee Relations - The hotel maintained a workforce of 15 male and 11 female employees, with a total of 26 employees as of March 31, 2020, compared to 29 employees in the previous year[128] - The hotel has established various incentive measures, including competitive salaries and benefits, to support employee retention and satisfaction[126] - The employee turnover rate is low, with only 4 employees leaving the company during the reporting period[131] - The hotel provides comprehensive medical insurance for full-time employees, including medical, surgical, hospitalization, and employee compensation insurance[132] - The hotel has conducted multiple internal training sessions focused on safety measures and the proper use of fire safety equipment during the reporting period[135] - The hotel has implemented a performance evaluation system, with managers conducting biannual assessments of employee performance[142] - The hotel adheres strictly to the Hong Kong Employment Ordinance and other legal employment requirements, ensuring no child labor or discrimination practices[136] Community Engagement - The group made charitable donations of approximately HKD 101,500 during the year, compared to HKD 37,000 in 2019[76] - The company donated approximately HKD 11,500 to support local community and cultural events, including the Cheung Chau Spring Festival and promotional activities[153] - The company contributed around HKD 10,000 to support a community initiative providing financial aid and masks to local residents during the COVID-19 outbreak[156] - The company donated approximately HKD 80,000 to support the replanting project at the Cheung Chau Kwan Tai Temple[157] - The company continues to support local sports development by organizing summer water sports training camps and sponsoring local marathons and triathlons[158] - The company has created direct employment opportunities for 23 local residents, representing a significant portion of its total workforce[160] Shareholding Structure - As of March 31, 2020, the total shareholding of key executives and directors in the company amounted to 155,465,875 shares, representing approximately 25.46% of the issued shares[57] - Mr. Qiu Dawei holds 52,765,576 personal shares and 78,430,299 shares through Energy Overseas Ltd., totaling 155,465,875 shares[57] - The largest shareholder, Mr. Kiu Tak Kan (deceased), holds 113,726,476 shares, accounting for 18.62% of the issued shares[71] - Achiemax Limited, a company controlled by Mr. Kiu, holds 72,182,400 shares, representing 11.82% of the issued shares[71] - Energy Overseas Ltd., owned by Mr. Kiu Tak Kan, holds 78,430,299 shares, which is 12.84% of the issued shares[71] - The company’s shareholding structure indicates a significant concentration of ownership among key executives[57] Share Options - The new share option plan adopted on September 2, 2016, has a duration of 10 years, following the termination of the old plan[60] - As of March 31, 2020, Mr. Qiu Dawei holds 6,100,000 share options at an exercise price of HKD 0.142, valid until March 24, 2030[60] - The total number of employees with share options is 800,000, with 64,370,000 shares held under the new plan[60] - Ms. Qiu Yongya holds 16,200,000 shares, representing 2.65% of the issued shares[57] - The company has not issued any further share options under the old plan since its termination[60] - The share options held by directors and employees under both plans remain valid and exercisable[60] - The company granted a total of 15,200,000 stock options to several directors on March 25, 2020, with the share price at HKD 0.1320 prior to the grant date[62] - As of the report date, there are 64,370,000 unexercised stock options, representing approximately 10.54% of the issued shares[62]
远东酒店实业(00037) - 2020 - 年度财报