Financial Performance - The company's revenue for the year reached HKD 64.5 million, a decrease of 11.8% compared to the previous year, primarily due to lower rental rates and a decrease in the occupancy rate of leased properties[6]. - The loss attributable to shareholders for the year was HKD 134.2 million, with a loss per share of HKD 0.484[6][14]. - The occupancy rate of the company's leased properties decreased by 5.3% to 87.1% from 92.4% in the previous year[15]. - The fair value of investment properties decreased compared to the previous year, impacting the overall financial performance[6]. - The loss attributable to shareholders for the year was HKD 134,200,000, a significant decrease from HKD 531,200,000, primarily due to lower fair value losses on investment properties[18]. - The group recorded a fair value loss on investment properties of HKD 182,900,000, down from HKD 543,000,000 in the previous year[18]. - Financial investment income decreased to HKD 35,000,000 from HKD 38,100,000, a reduction of HKD 3,100,000 due to a decrease in the average carrying value of debt securities[16]. - The net asset value per share decreased to HKD 10.4 from HKD 10.7, reflecting a reduction in shareholder equity to HKD 2,882,400,000 from HKD 2,963,500,000[22]. - The total bank borrowings amounted to HKD 744,000,000, down from HKD 1,026,400,000, with a capital debt ratio of 2.9%[21]. - The group’s financial costs decreased by 33.8% to HKD 4,500,000 from HKD 6,800,000 due to the repayment of bank borrowings[21]. Corporate Governance - The company has adopted the corporate governance code as per the Hong Kong Stock Exchange listing rules and complied with all applicable provisions during the fiscal year[43]. - The board of directors consists of seven members, including three executive directors and three independent non-executive directors, ensuring compliance with listing rules[44]. - The chairman and CEO roles are held by the same individual, which deviates from the corporate governance code, but the board believes this structure ensures effective leadership[47]. - The company emphasizes high standards of corporate governance to enhance transparency and accountability to shareholders and creditors[43]. - The board includes independent non-executive directors with appropriate professional qualifications, ensuring a balance of power and expertise[44]. - The company is committed to continuous improvement of its corporate governance policies and practices[43]. - The board is responsible for reviewing corporate governance policies and compliance with legal and regulatory requirements[54]. - The company ensures that no director determines their own remuneration, maintaining governance standards[57]. - All directors have received continuous professional development training, including updates on regulations and corporate governance[51]. Risk Management - The company has established a risk management framework since 2017, including risk management policies and procedures[70]. - The audit committee reviewed the effectiveness of the risk management system and reported satisfaction to the board[71]. - The company has a comprehensive risk management framework in place to address financial risks as outlined in the financial statements[34]. - Financial risks include market risk, credit risk, and liquidity risk, with market risk further divided into equity risk, interest rate risk, and foreign exchange risk[34]. - The risk management committee is responsible for overseeing and reviewing the company's risk management policies and systems, including environmental, social, and governance risks[92]. Environmental, Social, and Governance (ESG) Initiatives - The company recognizes the importance of environmental, social, and governance (ESG) factors in its business operations and aims to integrate these into its growth strategy[90]. - The company has established an environmental, social, and governance (ESG) executive committee to integrate ESG initiatives into business operations and corporate goals[95]. - The board of directors plays a significant role in advising on the company's ESG strategy and performance[95]. - The company aims to enhance its properties with new green technologies to achieve energy-saving and emission reduction goals[91]. - The company aims to attract more tenants by promoting the sustainability of its property portfolio amid the COVID-19 pandemic[97]. - The company has implemented a framework to execute ESG plans across various departments and property management teams[95]. - The company conducted a materiality assessment of 13 environmental, social, and governance issues, identifying tenant health and safety, financial performance, and service quality as high-impact areas[113]. Employee and Workplace Safety - The company has implemented daily temperature checks and weekly COVID-19 tests for employees during the pandemic[142]. - The company achieved zero employee accidents and zero lost workdays due to injuries during the reporting period[145]. - The average training hours per trained employee is 16 hours, with 40% of employees being trained in management roles[149]. - The company promotes equal opportunity and has implemented policies to prevent discrimination based on race, age, gender, disability, pregnancy, religion, or marital status[136]. - The company employs a total of 16 local employees, with 59% being female and 41% male[137]. Shareholder Communication and Dividends - The company aims to provide shareholders with detailed information to enable informed decision-making regarding their rights[76]. - The company has established a dividend policy to allow shareholders to share in profits while retaining sufficient reserves for future growth[84]. - The company plans to distribute dividends semi-annually, with the total amount depending on cumulative and future profits, cash flow, and capital reserves[84]. - The interim dividend of HKD 0.015 per share, totaling HKD 4,990,000, was distributed on December 28, 2020, and a proposed final dividend of HKD 0.021 per share, totaling HKD 7,485,000, is to be distributed to shareholders on the register as of August 27, 2021[194]. Tenant Relations and Satisfaction - The company conducts tenant satisfaction surveys to gather feedback and improve health and safety standards[106]. - The company aims to increase tenant satisfaction rate to 70% through annual surveys[126]. - In the recent tenant satisfaction survey, 83% of tenants rated the service as excellent, while 17% rated it as satisfactory[128]. - The company emphasizes open communication with tenants to gather feedback and improve service quality, utilizing various channels for tenant input[119]. - The company aims to provide sustainable solutions and excellent service levels to meet the rising expectations of its tenants[106]. Environmental Impact and Sustainability - The company has made significant progress in reducing operational emissions, marking the fifth year of substantial reductions[153]. - The total greenhouse gas emissions from the company's self-used office amounted to approximately 113.03 tons of CO2 equivalent during the reporting period[161]. - The company reported direct greenhouse gas emissions (Scope 1) of 13.36 tons of CO2 equivalent and indirect emissions (Scope 2) of 99.67 tons of CO2 equivalent[161]. - The company has implemented various waste reduction initiatives, including encouraging double-sided printing and the reuse of waste paper[172]. - The company has not incurred any significant fines or penalties for environmental law violations during the year[156]. - The company has established emergency plans to address potential environmental impacts and ensure compliance with local environmental regulations[156]. - The company aims to improve energy efficiency as a fundamental strategy to reduce greenhouse gas emissions associated with energy use[176]. - The company has implemented energy-saving measures, including upgrading chillers and installing LED lighting to reduce energy consumption[177].
太兴置业(00277) - 2021 - 年度财报