Financial Performance - The company's revenue increased by HKD 37 million to HKD 6,416 million for the year ended December 31, 2019[24]. - Net profit decreased by 63% to HKD 121 million, primarily due to a decline in property and securities investment valuations[24]. - Total assets increased by 11% to HKD 9,329 million[25]. - Net asset value per share rose from HKD 13.9 to HKD 14.3[25]. - Rental income from real estate investment increased by 6% to HKD 279,400,000, generating a profit of HKD 145,500,000 compared to HKD 130,400,000 last year[26]. - The total market value of investment properties in Hong Kong, Singapore, and Thailand was HKD 1,793,000,000, with a fair value gain of HKD 10,700,000, down from HKD 158,900,000 last year[26]. - The group's securities investment portfolio had a book value of HKD 282,000,000, with a fair value loss of HKD 31,000,000 compared to a gain of HKD 7,000,000 last year[32]. - As of December 31, 2019, the total assets were HKD 9,329,183,000, with a current ratio of approximately 0.93, up from 0.87 in 2018[38]. - The group had a cash deficit of HKD 2,860,715,000 as of December 31, 2019, compared to HKD 2,335,406,000 in 2018[38]. - The company proposed a final dividend of HKD 0.02 per share, totaling HKD 5,559,000 for shareholders registered by July 3, 2020[130]. - The company’s ability to declare dividends is contingent upon its operating performance, capital requirements, and overall financial condition[137]. Investments and Acquisitions - The company acquired a hotel property in Okinawa and a hostel in Kyoto in 2019[20]. - The company rebranded the Rinku Space Tower to SiS Rinku Tower and opened a hotel with 258 rooms[20]. - The company holds additional equity in SiS Thailand, making it a subsidiary[20]. - The company has expanded its hotel portfolio in Japan, acquiring multiple properties from 2012 to 2019[20]. - The company established a hotel group to manage all Japanese properties[21]. - The company invested HKD 406,855,000 in investment properties and HKD 25,068,000 in property, plant, and equipment during the year[133]. - The company reported a fair value loss of HKD 13,115,000 from the revaluation of investment properties, which was directly deducted from the consolidated income statement[133]. Corporate Governance - The board consists of four executive directors and three independent non-executive directors, ensuring a diverse range of business experience and expertise[48]. - The company has adopted a board diversity policy, recognizing the importance of diverse skills, backgrounds, and experiences among board members to maintain competitive advantage[56]. - The chairman and CEO positions are held by the same individual, Mr. Lin Ka-fung, who is responsible for formulating the group's corporate strategy and development direction[51]. - The company has implemented a director nomination policy effective from January 1, 2019, which includes criteria such as character, integrity, qualifications, and industry knowledge[52]. - The company believes that its corporate governance practices meet or exceed the standards set by the relevant codes[49]. - The board is committed to ensuring that one-third of the directors retire and seek re-election at each annual general meeting, promoting accountability[49]. - The Audit Committee held four meetings during the year ending December 31, 2019, reviewing the group's financial performance and internal controls[60]. - The external auditor, Deloitte, provided audit services for a fee of HKD 2,638,000, tax advisory services for HKD 14,000, and other services for HKD 890,000, totaling HKD 3,542,000 for the year[73]. - The Nomination Committee met once in 2019 to review the board's structure and assess the independence of non-executive directors[63]. - The Remuneration Committee held one meeting during the year to review the remuneration policies for directors and senior management[64]. - The board of directors has a high attendance rate, with all executive directors attending 100% of board meetings[74]. - The company has established an internal audit function to regularly assess the effectiveness of its risk management and internal control systems[76]. - The company has implemented a code of conduct for directors regarding securities trading, ensuring compliance with regulatory standards[70]. - Independent non-executive directors are required to submit annual confirmations of their independence, ensuring compliance with listing rules[48]. Environmental Impact - The total energy consumption for the year 2019 was 8,500,000,000 kWh, an increase from 8,476,000,000 kWh in 2018[93]. - The total water consumption for 2019 was 166,022 cubic meters, slightly down from 166,311 cubic meters in 2018[93]. - The company generated 4,738 kg of non-hazardous waste in 2019, compared to 3,015 kg in 2018[91]. - Indirect energy emissions amounted to 4,547,015 tons of CO2 in 2019, a slight increase from 4,532,526 tons in 2018[90]. - Other indirect emissions reached 51 tons of CO2 in 2019, up from 48 tons in 2018[90]. - The company has implemented measures to monitor and reduce the environmental impact of its hotel operations[87]. Employee and Workforce - The employee count increased to 700 from 652, with total salaries and benefits amounting to HKD 179,333,000, up from HKD 153,042,000 in the previous year[41]. - As of December 31, 2019, the company employed a total of 163 full-time employees, an increase from 158 in 2018, with 71% located in Hong Kong[97]. - The company provided training to 74% of its employees in 2019, totaling 576 hours, an increase from 445 hours in 2018, averaging 5 hours of training per employee[103]. - The company has a diverse workforce, with 54% of employees being female and 46% male, and a significant portion of employees aged 30 and below[99]. - The company has a low employee turnover rate and has not reported any days lost due to work-related injuries[102]. - The company encourages employees to balance work and life, promoting a healthy lifestyle[97]. Community Engagement and Social Responsibility - The company has a strong focus on community engagement through donations and contributions, although no donations were made in the past year[116]. - Due to an uncertain business environment, the company did not make any charitable donations in 2019[117]. - The company is committed to strict confidentiality regarding personal data and has policies in place to protect such information[113]. Risk Management and Compliance - The company does not currently have a comprehensive currency hedging policy but monitors currency fluctuation risks and has established foreign currency forward contracts[45]. - The company has a clear code of conduct regarding conflicts of interest, intellectual property, and anti-corruption measures[114]. - There were no reports of corruption incidents received by the company during the year[115]. - The company has not encountered any intellectual property infringement cases related to its distributed products during the year[113]. Shareholder Information - The company’s directors hold a combined total of 185,973,108 shares, representing 66.90% of the issued share capital[145]. - Major shareholders as of December 31, 2019, included Yang Shengcong and Lin Meihua, each holding 5.06% of the issued share capital[175]. - The top five customers accounted for less than 30% of the total revenue, while the top five suppliers accounted for approximately 46% of the total purchase value, with the largest supplier contributing 15%[178]. - The company has established a remuneration committee since September 2005 to oversee compensation policies[179].
SIS INT'L(00529) - 2019 - 年度财报