Financial Performance - Revenue increased by 531% to HKD 6,379,000,000 for the year ended December 31, 2018[19] - Net profit decreased by 11.0% to HKD 329,500,000 for the same period[19] - Total asset value increased by 11.5% to HKD 8,369,000,000, with property revaluation gains of HKD 220,800,000 recorded[19] - Net asset value per share rose from HKD 12.7 to HKD 13.9[19] - Real estate investment segment revenue increased by 7.4% to HKD 262,600,000, generating a profit of HKD 130,400,000[20] - Revenue from Japanese real estate grew by 7.0% compared to the previous year[20] - Revenue from the Hong Kong distribution business increased by 11.6% to HKD 854,900,000, with a reduction in classified losses compared to the previous year[23] - SiS Distribution (Thailand) contributed revenue of HKD 5,261,600,000 and reported a profit of HKD 140,700,000 in 2018, driven by increased demand in Thailand for business, smartphones, and consumer goods[23] Assets and Liabilities - As of December 31, 2018, the total assets of the group were HKD 8,369,132,000, with total liabilities of HKD 4,513,968,000, resulting in a current ratio of approximately 0.87[32] - The debt-to-equity ratio was 87% as of December 31, 2018, compared to 82% in the previous year[33] - The group had a cash deficit of HKD 2,335,406,000 at the end of 2018, an increase from HKD 1,782,219,000 in 2017[32] Corporate Governance - The board consists of four executive directors and three independent non-executive directors, ensuring diverse business experience and knowledge[45] - The independent non-executive directors have confirmed their independence according to the listing rules, with one having over 20 years of experience in corporate banking and finance[45] - The company has adopted a board diversity policy, considering various factors such as gender, age, and professional experience in board member selection[54] - The audit committee is composed entirely of independent non-executive directors, with Ms. Wang Wei Ling serving as the chair[56] - The company has established a nomination policy effective from January 1, 2019, to guide the nomination and reappointment of directors[49] - The board is responsible for formulating business strategies and monitoring performance, with most decisions made by the board rather than management[45] - The company recognizes the importance of a diverse board as a competitive advantage and aims to balance various differences among board members[54] - The chairman and CEO roles are held by the same individual, Mr. Lin Jia Feng, who is responsible for the company's strategic direction[48] - The company has measures in place to ensure corporate governance standards meet or exceed those set by the listing rules[46] Environmental Impact - The total energy consumption for 2018 was 8,476,000,000 kWh, an increase from 8,390,000,000 kWh in 2017, representing a rise of approximately 1.03%[83] - The total water consumption in 2018 was 166,311 cubic meters, slightly down from 167,644 cubic meters in 2017, indicating a decrease of about 0.79%[83] - The carbon dioxide emissions for 2018 were 4,532,574 tons, a slight increase of 0.9% from 4,490,823 tons in 2017[82] - The company generated 3,015 kg of non-hazardous waste in 2018, up from 2,833 kg in 2017, reflecting an increase of approximately 6.4%[82] - The company has implemented measures to monitor and minimize the environmental impact of its hotel operations[79] Employee and Workforce - The number of employees decreased to 652 from 702 in the previous year, with total employee compensation and benefits amounting to HKD 153,042,000[37] - The company employed a total of 158 full-time employees as of December 31, 2018, an increase from 147 in 2017, with 69% located in Hong Kong[87] - The company provided training to 65% of its employees in 2018, totaling 445 hours, averaging 4 hours per employee, a decrease from 692 hours in 2017[94] - The employee turnover rate is low, with no reported days lost due to work-related injuries[92] - The company encourages employees to balance work and life, promoting a healthy lifestyle[87] Investment and Growth Strategy - The company has established three core businesses: real estate investment, distribution, and IT investment, which are expected to drive future growth[19] - The company aims to continue building a large property portfolio with long-term capital appreciation potential[22] - The group plans to continue evaluating and selecting investments in promising securities and companies[26] - The management remains cautiously optimistic about growth opportunities in the real estate and hotel sectors in Japan and the electronic payment market in Bangladesh[27] Shareholder Information - The group proposed a final dividend of HKD 0.07 per share, totaling HKD 19,458,000 for shareholders registered on July 5, 2019[122] - The company's distributable reserves as of December 31, 2018, amounted to HKD 1,091,322,000, a decrease from HKD 1,103,638,000 at the beginning of the year, reflecting a reduction of approximately 1.1%[131] - The retained earnings as of December 31, 2018, were HKD 1,062,136,000, down from HKD 1,074,452,000 at the start of the year, indicating a decline of about 3.6%[131] - The company has a dividend policy that depends on its operating performance, capital requirements, and overall financial condition, with no dividends declared if it cannot meet its liabilities[133] - The company’s ability to declare dividends is contingent upon its profitability and the economic environment, which may affect shareholder interests[133] Audit and Financial Reporting - The board is responsible for preparing true and fair consolidated financial statements according to Hong Kong Financial Reporting Standards and the Companies Ordinance[195] - The management is tasked with overseeing the financial reporting process of the group[196] - The independent auditor aims to obtain reasonable assurance that the consolidated financial statements are free from material misstatement due to fraud or error[199] - The audit process involves identifying and assessing risks of material misstatement and designing audit procedures to address these risks[200] - The auditor's report is issued solely to the shareholders and cannot be used for other purposes[199]
SIS INT'L(00529) - 2018 - 年度财报