Financial Performance - The Group recorded an operating profit before valuation changes in investment properties of HK$323.0 million for the year ended March 31, 2021, down from HK$482.0 million in 2020[7]. - The loss attributable to equity shareholders was HK$777.6 million, compared to a loss of HK$460.1 million in 2020, primarily due to valuation losses on investment properties of HK$1,809.2 million[7]. - The valuation losses on investment properties increased from HK$1,314.1 million in 2020 to HK$1,809.2 million in 2021[7]. - The total distribution for the year will be HK$0.18 per share, compared to HK$0.31 per share in 2020[8]. Corporate Governance - The Company complied with all applicable provisions of the Corporate Governance Code during the financial year ended 31 March 2021, except for certain disclosed deviations[18]. - The roles of Chairman and Chief Executive are held by the same individual, Mr. Cheong Hooi Hong, with day-to-day management shared among Executive Directors to avoid concentration of power[20]. - The Company does not disclose senior management remuneration details by band in the annual report, considering that such disclosure may lead to undue comparisons among staff and provide sensitive information to competitors[20]. - The Board reviewed the need for an internal audit function in March 2021 and determined that there was no immediate need due to the Group's simple operating structure and effective management oversight[22]. Risk Management - The Company conducts group-wide risk assessment exercises biannually to enhance risk management and internal control systems despite the absence of an internal audit function[22]. - The Board is responsible for the Group's risk management and internal control systems, ensuring they are maintained effectively[85]. - The Group conducts a half-yearly risk assessment exercise, with the last one completed for the financial year ended March 31, 2021[91]. - The management provides annual confirmation to the Board regarding the effectiveness of risk management and internal control systems[100]. Environmental Initiatives - The Group reviewed and revised its environmental policy during the reporting year, focusing on compliance with applicable legislation and setting long-term carbon emission reduction targets[155]. - The total amount of purchased electricity decreased to 9,352.44 MWh in the year ended March 31, 2021, down from 12,133.39 MWh in 2020, representing a reduction of approximately 22.9%[163]. - The Group's environmental initiatives include reducing waste and reusing and recycling materials[155]. - The Group encourages tenants to adopt environmentally friendly practices and provides guidance through iSQUARE publications[159]. Employee Management - The company has a total of 34 full-time employees based in Hong Kong, an increase from 32 in 2020[198]. - The turnover rate for the company is 0%, a significant decrease from 9.38% in 2020[199]. - The company emphasizes ethical and responsible business practices through a general code of conduct applicable to all employees[188]. - Performance appraisals are conducted annually, serving as the basis for salary adjustments, discretionary bonuses, and promotions[188]. Shareholder Engagement - The Company holds its Annual General Meeting (AGM) every year, typically in September[130]. - The AGM provides a platform for shareholders to communicate directly with the Board and ask questions[130]. - The Company encourages shareholder participation and provides various channels for inquiries[130]. - Shareholders representing at least 2.5% of total voting rights or 50 shareholders can request to circulate a resolution for the AGM[132]. Remuneration Policies - The remuneration committee comprises three independent non-executive directors, focusing on competitive remuneration to retain suitable directors and senior management[54]. - The remuneration committee reviews and approves management's remuneration proposals and compensation arrangements for executive directors and senior management[54]. - The remuneration of individual executive directors is determined annually by the remuneration committee based on various factors, including market conditions and the group's results[56]. - The company considers market conditions, individual performance, and job responsibilities when determining remuneration for senior management and employees[58]. Property Management - iSQUARE, a key property, offers 56,000 square meters of space, including a shopping podium and five grand cineplexes[16]. - iSQUARE has faced downward pressure on rental levels and occupancy rates due to increased retail supply in Tsim Sha Tsui and the impact of COVID-19 on tourism and retail sectors[106]. - The company has implemented short-term relief measures for tenants to alleviate business pressures and maintain sustainable partnerships[111]. - The Group aims to build a more diversified tenant mix to maintain a sustainable tenant portfolio[123].
天德地产(00266) - 2021 - 年度财报