Financial Performance - The Group reported a profit from operations before valuation changes in investment properties of HK$477.0 million for the year ended 31 March 2020, a decrease of 4.5% from HK$499.8 million in 2019[5]. - The loss attributable to equity shareholders was HK$912.9 million, compared to a profit of HK$148.5 million in 2019, primarily due to net valuation losses on investment properties of HK$1,306.3 million, which increased significantly from HK$266.0 million in 2019[5]. - The valuation losses on investment properties will affect accounting profit or loss but will not impact the Group's cash flows[5]. - The Group faced downward pressure on rental levels and increased vacancies at iSQUARE, exacerbated by the rise in online shopping and social unrest[93]. - The pandemic has led to a grim outlook for the retail and catering industries, significantly affecting tenant businesses[93]. - The outbreak of COVID-19 has significantly impacted the Group's operations, particularly in the travel and tourism sectors, leading to a drastic drop in visitor arrivals and retail sales in Hong Kong[95]. - The Group is maintaining a solid financial position with strong cash flow and a low gearing level to cope with unforeseen circumstances arising from the pandemic[95]. Dividends - The Board recommended a final dividend of HK$0.25 per share for the year ended 31 March 2020, down from HK$0.57 per share in 2019, resulting in a total distribution of HK$0.81 per share for the year, compared to HK$1.15 per share in 2019[6]. - An interim dividend of HK$0.56 per share was paid, down from HK$0.58 per share in 2019[200]. - The final dividend is subject to approval at the upcoming annual general meeting scheduled for 10 September 2020[200]. - The proposed final dividend will be paid on 5 October 2020 to members listed on the register as of 18 September 2020[200]. Corporate Governance - The Company has maintained compliance with all applicable code provisions set out in the Corporate Governance Code during the financial year[19]. - The Group's commitment to high standards of corporate governance is reflected in its review of practices and procedures[17]. - The roles of the Chairman and Chief Executive are held by Mr. Cheong Hooi Hong, with day-to-day management shared among Executive Directors to avoid concentration of power[21]. - All Independent Non-Executive Directors (INEDs) attended 100% of the Company's meetings during the year under review, ensuring active participation and a balanced understanding of shareholder views[22]. - The Board reviewed the need for an internal audit function in March 2020 and determined that, given the Group's size and structure, there was no immediate need for one[26]. - The Company has established a control environment to enhance risk management and internal control systems, including regular group-wide risk assessments[26]. - The Board is responsible for the leadership and control of the Group, overseeing financial performance and corporate governance[35]. - The Board has established three committees: remuneration, nomination, and audit, to focus on specific areas of governance[36]. Risk Management - The Board is responsible for the Group's risk management and internal control systems, which are evaluated and reviewed on an ongoing basis[73]. - Risk assessments are conducted biannually, with department heads required to maintain and update a risk register[78]. - The Group's risk management and internal control systems were reviewed for effectiveness, confirming that resources and staff qualifications were adequate for the financial year ended March 31, 2020[87]. - The Board identified principal risks, including increased default risk among tenants due to the COVID-19 pandemic and local social incidents, impacting the business outlook[92]. - The effectiveness of risk management strategies was evaluated based on the actual operation and performance of the Group[88]. Environmental and Social Responsibility - The Corporate Social Responsibility Report reviews the Group's performance in environmental and social responsibilities for the financial year ended 31 March 2020[127]. - The Company aims to integrate socially responsible practices into daily operations to contribute positively to sustainability development[126]. - The Group reduced electricity purchased by approximately 10.42% to 12,133.39 MWh compared to the baseline year ended March 31, 2015[141]. - The Group's environmental policy includes promoting environmental awareness among staff and adopting eco-friendly practices in daily operations[138]. - The Group has adopted measures such as using water-saving fittings and recycling waste paper, plastics, and metals[140]. Employee Relations - The Group emphasizes maintaining a quality workplace and has adopted a general code of conduct that covers data privacy, copyright protection, prevention of bribery, and equal opportunities[163]. - The Group provides job-related training subsidies to all full-time employees, with additional funding for senior management for outside training[169]. - Employee satisfaction surveys are conducted to gather staff opinions about their work environment, with results shared by management for further improvement[173]. - Over 83% of employees reported satisfaction with the Group, an increase from 77% in 2019, while approximately 80% were satisfied with workforce-management relationships, up from 71% in 2019[177]. - The Group has not been aware of any non-compliance with environmental-related laws and regulations that had a significant impact during the year under review[165]. Shareholder Communication - The Company is committed to maintaining communication channels with shareholders to enhance accountability and transparency[106]. - Corporate communications are prepared in both English and Chinese to ensure understandability for shareholders[107]. - Shareholders can submit inquiries to the Board through designated email, correspondence address, fax, and telephone number available on the Company's website[109]. - The Company holds an Annual General Meeting (AGM) every year, typically in September, to facilitate face-to-face communication between shareholders and the Board[110].
凯联国际酒店(00105) - 2020 - 年度财报