Financial Performance - The company reported revenue of HKD 159,547,000 for 2020, a decrease of 24.6% from HKD 211,818,000 in 2019, and incurred a loss of HKD 35,713,000 compared to a profit of HKD 76,439,000 in the previous year[9]. - The group recorded revenue of approximately HKD 159,547,000 for the fiscal year ending June 30, 2020, a decrease of about 24.7% compared to HKD 211,818,000 in 2019[33]. - The gross profit margin for the fiscal year ending June 30, 2020, was approximately 60.1%, down from 69.9% in 2019[34]. - The group incurred a loss of approximately HKD 35,713,000 for the fiscal year ending June 30, 2020, compared to a profit of HKD 76,439,000 in 2019, resulting in a loss margin of 22.4%[35]. - Other income for the fiscal year ending June 30, 2020, was approximately HKD 14,764,000, a decrease from HKD 16,066,000 in 2019, primarily due to reduced parking usage[36]. - Administrative expenses increased by approximately 12.1% to HKD 29,946,000, accounting for about 18.8% of revenue for the fiscal year ending June 30, 2020[37]. - Financial expenses rose significantly to approximately HKD 61,942,000, representing about 38.8% of revenue, due to higher interest rates on new bank loans[37]. - The fair value of investment properties decreased by approximately HKD 77,778,000, reflecting a slowdown in rental growth[38]. - The board did not recommend a final dividend for the fiscal year ending June 30, 2020[39]. - The total equity of the group as of June 30, 2020, was approximately HKD 1,748,402,000, down from HKD 1,856,626,000 in 2019, with a total debt ratio of approximately 52.6%, up from 28.5% in 2019[49]. - The group plans to invest approximately HKD 6,463,000 in property, plant, and equipment for the year ending June 30, 2020, compared to HKD 1,241,000 in 2019[56]. Tenant and Property Management - The company has a shopping mall in Zhengzhou, China, with a total registered construction area of approximately 125,188 square meters, fully leased to over 140 tenants[10]. - A new shopping center (Zone C) with a total construction area of approximately 80,118 square meters has been leased, with around 120 tenants providing various services and products[11]. - The company provided rental and management fee reductions totaling approximately HKD 17,705,000 to over 280 tenants during the first half of 2020 due to COVID-19[15]. - The company provided rent relief totaling approximately HKD 17,705,000 to over 280 tenants during the first half of 2020 due to the impact of COVID-19[26]. - The company holds a 75% stake in Jiachao Property Services Co., which operates the Jiachao Shopping Center in Zhengzhou, China[24]. - The group plans to enhance tenant quality at the Jiachao Shopping Center and diversify tenant types to meet various customer needs[40]. - The company plans to enhance tenant diversity and upgrade tenant categories to meet the needs of various customer demographics[18]. - The company is focused on expanding its property operations market and enhancing tenant satisfaction[117]. Biotechnology Sector - The company is exploring the biotechnology sector, having established subsidiaries in Yunnan Province for the production of cannabidiol (CBD) and has secured an industrial hemp planting license[16]. - The company has entered the biotechnology sector, holding a 60% stake in Qianlin Biotechnology, which is expected to produce approximately 2,000 kg of CBD annually[27]. - A factory of approximately 2,904 square meters has been leased for production, with a total land area of about 1,028,133 square meters for raw material cultivation[16]. - The company plans to start trial operations in early 2021 once it receives the necessary production permits and completes equipment installation[16]. - The group aims to diversify its business and expand into the biotechnology market, leveraging the optimistic future prospects of cannabidiol due to regulatory approvals in Australia, Europe, and North America[47]. - The group has installed machinery for distillation and extraction processes in its newly leased factory in Yunnan, China[27]. Financial Position and Assets - As of June 30, 2020, the group's net current assets were approximately HKD 290,629,000, compared to HKD 124,948,000 in 2019, and total assets minus current liabilities were approximately HKD 2,978,960,000, up from HKD 2,721,116,000 in 2019[48]. - The group's cash and bank deposits as of June 30, 2020, were approximately HKD 419,095,000, significantly increased from HKD 32,377,000 in 2019, resulting in a current ratio of approximately 274.1% compared to 71.3% in 2019[48]. - The group has a total borrowing of approximately HKD 874,523,000 as of June 30, 2020, compared to HKD 494,318,000 in 2019, with all financing fully utilized[50]. Corporate Governance - The company has adopted corporate governance practices in line with the Hong Kong Stock Exchange's guidelines, ensuring transparency and accountability[109]. - The company’s board of directors includes four independent non-executive directors, ensuring diverse oversight[75]. - The board consists of at least one-third independent non-executive directors, ensuring independence in decision-making[111]. - The board held eight meetings during the fiscal year ending June 30, 2020, with all directors attending most meetings[114]. - The company encourages directors to participate in training courses to enhance their knowledge and performance[115]. - The company has arranged appropriate liability insurance for directors to cover responsibilities arising from corporate activities[117]. - The audit committee is composed of four independent non-executive directors, ensuring oversight of financial reporting[125]. - The Audit Committee reviewed the independence of external auditors and their provision of non-audit services[132]. Environmental and Social Responsibility - The group reported an electricity consumption of approximately 32,243,000 kWh during the reporting period, with an energy consumption density of 157.05 kWh/sqm[169]. - The group achieved a reduction in electricity costs of over 18.9% due to a power sales agreement and government initiatives, primarily impacted by the pandemic-related closure of shopping centers[169]. - The group generated a total of 1.095 million cubic meters of non-hazardous waste during the reporting period, with a density of 5.33 cubic meters/sqm[166]. - The group monitored emissions from its underground parking facilities, with total carbon monoxide emissions reaching 1.61 tons[162]. - The group installed oil fume purification facilities in its dining tenants to comply with the "Air Pollution Prevention Law" and related standards[164]. - The group constructed seven sewage outlets for wastewater discharge, ensuring compliance with the "Comprehensive Wastewater Discharge Standards" and "Urban Sewage Discharge Standards"[165]. - The group has implemented waste classification systems in its managed shopping centers to ensure proper waste disposal and recycling[166]. - The group’s pollution prevention measures strictly adhere to relevant Chinese government regulations and standards during construction and operation[162]. - The group has a green area of 2,550 square meters to improve the ecological environment[176]. - The group has implemented a training card system for employees, requiring at least 12 points of training within a year to meet assessment standards[181]. - The group adheres to labor laws and regulations, ensuring no violations related to employment practices[179]. - The opening of Jiachao Shopping Center has created over 7,000 job opportunities, significantly contributing to the local community, especially in areas such as children's entertainment, education, and culture[187]. - The company has complied with health and safety regulations regarding the products and services offered, with no complaints received from tenants during the reporting period[185]. - The company has implemented measures to prevent bribery among employees, suppliers, and tenants, with no corruption lawsuits reported during the reporting period[186].
锦艺集团控股(00565) - 2020 - 年度财报