MIRAMAR HOTEL(HK:00071)2020-04-23 09:07Financial Performance - The total revenue for the year ended December 31, 2019, was HKD 3,062 million, a decrease of 4.3% compared to HKD 3,199 million in 2018[9]. - The profit attributable to shareholders was HKD 1,288 million, down 20.7% from HKD 1,624 million in the previous year[17]. - The basic earnings per share decreased by 5.8% to HKD 1.13, compared to HKD 1.20 in 2018[14]. - The hotel and serviced apartment business recorded revenue of HKD 560 million, a decline of approximately 21.2% year-on-year[26]. - The EBITDA for the hotel and serviced apartment business was HKD 174 million, down about 34.5% compared to the previous year[26]. - Rental income for the group was HKD 913 million, with EBITDA at HKD 798 million, reflecting a slight decrease of 0.1% and 1.1% respectively compared to the previous year[33]. - The travel business generated revenue of HKD 1.345 billion, an increase of 7.1% or HKD 89 million, with EBITDA rising by 57.6% to HKD 94 million[46]. - Overall operating costs decreased by 11% to approximately HKD 211 million, compared to HKD 237 million in the previous year[48]. - The group’s net cash position was approximately HKD 5.2 billion, an increase from HKD 4.7 billion in the previous year, indicating strong financial health[49]. Visitor Trends - The number of visitors to Hong Kong decreased by 14.2% to 55.91 million in 2019, with overnight visitors down 18.8% to 23.75 million[19]. - The group's hotel and serviced apartment business experienced a significant decline in visitor numbers, with overnight visitors to Hong Kong dropping by 57.2% in December compared to the previous year, leading to an overall annual decrease of 18.8% or approximately 5.5 million visitors[30]. Dividend and Shareholder Returns - The company proposed a final dividend of HKD 0.34 per share, totaling an annual dividend of HKD 0.58 per share[18]. - The company reported a final dividend of HKD 0.34 per share for the year ended December 31, 2019, compared to HKD 0.37 per share in 2018[198]. - The interim dividend of HKD 0.24 per share was distributed on October 11, 2019, consistent with the previous year[198]. Business Strategy and Operations - The rental business is expected to be impacted by declining rents due to the economic slowdown[22]. - The company plans to adjust its business strategies in response to the challenging economic environment and seek investment opportunities to enhance profitability[22]. - The group will focus on improving service quality and operational efficiency while maintaining stable rental income and financial resources[22]. Environmental, Social, and Governance (ESG) Initiatives - The group engaged 249 stakeholders in a survey to assess environmental, social, and governance (ESG) issues, which guided its strategic planning[59]. - The group emphasizes sustainable development, aiming to provide financial returns to investors while ensuring sustainable growth for stakeholders and the community[54]. - The group has identified 17 key ESG issues that will guide its business development and operational strategies[61]. - The group has implemented a risk management system that includes risk identification, analysis, response, and monitoring related to ESG factors[56]. - The company has implemented a green environmental program aimed at optimizing environmental facilities and integrating environmental culture into business operations[64]. - The company has reduced electricity consumption by 38.6% in 2019 compared to 2012 through the replacement of old air conditioning units with more energy-efficient systems[70]. - The company actively monitors and recycles materials used in daily operations, such as cooking oil, paper, and plastic bottles[63]. - The company achieved a 167.62% target achievement rate for the central water-cooled chiller system, saving 8.29 million kWh against a goal of 23.95 million kWh over five years[75]. - The group has achieved ISO 14001 certification, confirming the successful implementation of an environmental management system across its properties[88]. Employee and Workforce Management - The group employs 1,507 staff members, with 820 males and 687 females, reflecting a diverse workforce[93]. - Total employee turnover rate is 21.3%, with a higher rate of 24.0% for female employees[94]. - The group provided training to 9,095 employees, achieving a training participation rate of 58%[97]. - Average training hours per employee was 8.8 hours, with professional and technical training accounting for 5,198 participants and 6,682 hours[97]. - Employee training included risk and crisis management training due to frequent social activities in Hong Kong during the year[96]. Corporate Governance - The company complies with the corporate governance code as per the Hong Kong Stock Exchange rules[147]. - The board consists of 13 members, including 5 executive directors, 3 non-executive directors, and 5 independent non-executive directors[148]. - The audit committee includes 3 independent non-executive directors to ensure objectivity in financial oversight[154]. - The company emphasizes the importance of training and professional development for directors and senior management[151]. - The company has established a whistleblowing policy since 2013, encouraging employees to report misconduct confidentially[110]. Risk Management - The company has a comprehensive risk management system to monitor and mitigate various operational risks, including economic downturns and social instability[192]. - The company has established emergency procedures and crisis management plans to mitigate the impact of catastrophic events, rated medium to high risk[180]. - The company closely monitors supplier performance to prevent issues related to product shortages and compliance, ensuring a low risk level[181]. - The company conducts annual risk management workshops to enhance awareness of operational risks and mitigation measures among management and key staff[170]. Community Engagement - The group donated a total of 2,532 kilograms of surplus food to those in need in 2019[120]. - The group collaborated with different charities to support underprivileged communities through donations and events[116]. - The company participated in various environmental activities, including the "Earth Hour" and "Hong Kong No Air Conditioning Night" to promote environmental protection[121].