Company Overview - Pokfulam Development Company Limited has over 40 years of experience in property development and management, focusing on high-quality luxury residential and commercial properties in prestigious locations in Hong Kong [4]. - The company aims to create ideal living and working environments for tenants by integrating technology, social environment, and sustainable development principles, positioning itself as a leading property management company in Hong Kong [5]. - The company has three main business segments: property investment, development, and management; trading of goods, primarily audiovisual equipment; and securities investment and holding [5]. Property Development and Management - The company completed the development of 151 residential units at Mei King Court in 1977, with 59 units retained for long-term investment [9]. - The company owns 44 rental units at Mei King Court, which features practical four-bedroom units with large balconies and views of the South Lantau Strait [19]. - The company’s office building, Li Lam Tower, is located in the commercial core of Wanchai, offering office units ranging from approximately 400 square feet to 6,500 square feet [22]. - The company has undergone significant renovations at He Lan Road 3 and 4, enhancing the value and appeal of its properties [11]. - The company has taken proactive measures to enhance property attractiveness and service quality, including renovations and the integration of smart building technologies [45]. Financial Performance - The consolidated net loss after tax and non-controlling interests for the year ended September 30, 2020, was approximately HKD 59.5 million, compared to a profit of HKD 136.9 million in the previous year [28]. - Rental income from investment properties in Hong Kong decreased by 2% year-on-year, with residential property income down by 1% and commercial and industrial property income down by 4% [33]. - The acquisition of 47.84% equity in Elephant Holdings Limited was completed on January 24, 2020, increasing the company's ownership to 99.8%, contributing approximately 23.7% to the group's revenue during the review period [35]. - The company reported a significant increase in revenue, with a year-on-year growth of 15% in 2020 compared to 2019 [58]. - Earnings per share (EPS) for the fiscal year 2020 was HKD 2.50, reflecting a 10% increase from the previous year [58]. - The debt ratio stood at 45% as of the end of 2020, indicating a stable financial position despite market fluctuations [58]. - The company reported a total borrowing of HKD 1.2 billion, which is a 5% decrease from the previous fiscal year, reflecting improved cash flow management [58]. Investment Strategy - The company has invested in Adams Street Private Income Fund LP in 2020, indicating a strategy to diversify its investment portfolio [11]. - The company invested HKD 39 million in the TKO Fund, which targets properties in Tseung Kwan O, with an expected holding period of about five years [36]. - The company plans to continue exploring growth opportunities in the high-end audio and visual product market in China, which is seen as having significant growth potential [35]. - The company has fully paid its commitment of USD 5 million to the Adams Street Private Income Fund LP, which aims to generate current income with strong downside protection [39]. - A strategic acquisition of a local competitor is expected to be finalized by Q2 2021, which is projected to increase overall revenue by 25% [66]. Environmental, Social, and Governance (ESG) Practices - The company aims to enhance its environmental, social, and governance (ESG) practices, committing to a 30% reduction in carbon emissions by 2025 [67]. - Total greenhouse gas emissions for the reporting period were 25.66 tons of CO2 equivalent, an increase from 17.23 tons in the previous year, representing a 48.5% rise [83]. - The density of greenhouse gas emissions per working day was 0.10 tons of CO2 equivalent, up from 0.07 tons in the previous year, indicating a 42.9% increase [83]. - The company implemented energy efficiency measures, including maintaining office temperature at 25.5 degrees Celsius and using energy-efficient appliances [88]. - The company aims to reduce carbon emissions from business travel by prioritizing local suppliers and utilizing modern communication tools [88]. - The report emphasizes the importance of stakeholder engagement to improve environmental, social, and governance performance [77]. - The company has established operational procedures to ensure effective vehicle usage to minimize emissions [83]. - The report covers the company's commitment to comply with local environmental laws and regulations while enhancing energy efficiency [80]. Employee and Workplace Practices - As of September 30, 2020, the total number of employees was 18, an increase from 17 in the previous year, with approximately 94% being full-time employees [106]. - The gender distribution of employees was 61% female and 39% male, with 6% of employees being part-time [112]. - Employee turnover rate for females is 100.0% in 2019/2020, compared to 0% in 2018/2019 [118]. - Employee training rate for males is 100.0% in 2019/2020, up from 14.3% in 2018/2019 [130]. - Employee training rate for females is 91.0% in 2019/2020, compared to 20.0% in 2018/2019 [130]. - The company has established a training fund to support employee education expenses [129]. - The company maintains a strict recruitment policy to comply with local labor laws, prohibiting child and forced labor [133]. - The company implemented safety measures in response to the COVID-19 pandemic, including providing hand sanitizers and masks [126]. - There were no work-related deaths or injuries reported during the reporting period [127]. Corporate Governance - The board consists of six members, including three executive directors and three independent non-executive directors, complying with the requirement that independent non-executive directors make up at least half of the board [173]. - The company is committed to high standards of corporate governance and regularly reviews its organizational structure to ensure compliance with governance codes [167]. - The board has established various committees, including the nomination committee and audit committee, to oversee different responsibilities and ensure compliance with applicable laws and regulations [168]. - The company has adopted a board diversity policy, recognizing the benefits of diversity in maintaining competitive advantage, considering factors such as gender, age, cultural background, and professional experience [177]. - The board has accepted the nomination committee's recommendation to reappoint retiring directors willing to stand for re-election at the upcoming annual general meeting [184]. - The company has implemented a nomination policy to ensure a balanced representation of skills and experiences on the board, considering diversity benefits [179]. - The board has established a written framework for the roles and responsibilities of the managing director and senior management, subject to regular review by the board [169]. - The company has arranged suitable insurance coverage for its directors against legal actions faced during the year [188]. - The board believes that having the same individual serve as both chairman and CEO provides strong and effective leadership for the company [191]. - The company will continue to review its corporate governance structure and consider necessary changes, including the separation of the roles of chairman and CEO [191].
博富临置业(00225) - 2020 - 年度财报