Financial Performance - The company reported revenue of HKD 188,634,000 for the year, an increase of 18.2% from HKD 159,547,000 in 2020, but incurred a loss of HKD 227,892,000 compared to a loss of HKD 35,713,000 in the previous year[9]. - The gross profit margin for the fiscal year ending June 30, 2021, was approximately 56.4%, down from 60.1% in 2020, attributed to increased variable sales costs as shopping centers resumed normal operations[35]. - The group incurred a loss of approximately HKD 227,892,000 for the fiscal year ending June 30, 2021, with a loss rate of 120.8%, significantly higher than 22.4% in 2020, primarily due to a substantial decrease in the fair value of investment properties[35]. - Other income for the fiscal year ending June 30, 2021, was approximately HKD 30,280,000, an increase from HKD 14,764,000 in 2020, driven by increased customer spending and government subsidies[36]. - Administrative expenses were approximately HKD 37,696,000, accounting for about 20.0% of revenue, up from 18.8% in 2020, reflecting costs related to biotechnology trials and the sale of a subsidiary[39]. - Financial expenses amounted to approximately HKD 66,243,000, representing 35.1% of revenue, an increase due to higher interest rates on bank loans[40]. - The group recorded revenue of approximately HKD 188,634,000 for the fiscal year ending June 30, 2021, an increase of about 18.2% compared to HKD 159,547,000 in 2020[34]. Business Strategy and Operations - The company has shifted its business focus towards light asset and service-based property operations after selling a 75% stake in Zhengzhou Jiachao Property Services Co., Ltd[9]. - The group plans to enhance property operations by leasing to more well-known brands and diversifying tenant types to meet various customer needs[18]. - The group plans to expand its property operations by focusing on leasing, management, and operational services to various tenants in shopping centers[40]. - The group aims to diversify tenant types and upgrade shopping centers to meet the needs of different customer demographics through marketing and promotional activities[42]. - The group is committed to exploring investment opportunities in property operations under the Belt and Road Initiative and the dual circulation economic strategy[18]. - The group anticipates stable business development in the future while exploring suitable property operations and biotechnology projects to broaden revenue sources[19]. Biotechnology Sector - The company is exploring the biotechnology sector in Yunnan Province, China, with subsidiaries established for the production of cannabidiol (CBD) and has received necessary licenses for industrial hemp cultivation and trial production[16]. - The group has entered the biotechnology sector, holding a 60% stake in Honghe Qianlin Biotechnology Co., Ltd., which is involved in the production of industrial-grade cannabidiol for overseas markets[30]. - The group aims to diversify its business by developing biotechnology in Yunnan Province, China, with commercial production expected to start upon receiving the industrial hemp production license[43]. - The group anticipates optimistic future prospects for cannabidiol due to its widespread use in various sectors, supported by government initiatives like the Belt and Road Initiative[48]. Tenant and Customer Relations - The company provided rental and operational support to tenants during the COVID-19 pandemic, amounting to approximately HKD 697,000, a significant decrease from HKD 17,705,000 in 2020[15]. - The group has allowed certain tenants to defer rent payments and has reduced costs as a key strategic focus to address uncertainties caused by the COVID-19 pandemic[34]. - The company’s top five customers accounted for 30% of total sales, with the largest customer contributing approximately 18%[96]. - The company’s top five suppliers accounted for 58% of total purchases, with the largest supplier contributing approximately 49%[96]. Financial Position and Assets - As of June 30, 2021, the group's net current assets were approximately HKD 461,834,000, an increase from HKD 290,629,000 in 2020, and total assets were HKD 2,698,285,000, down from HKD 2,978,960,000 in 2020[49]. - The group's cash and bank deposits as of June 30, 2021, were approximately HKD 16,693,000, significantly decreased from HKD 419,095,000 in 2020[49]. - The current ratio as of June 30, 2021, was approximately 396.3%, up from 274.1% in 2020, indicating improved liquidity[49]. - The group has established a loan agreement to provide RMB 250 million at an interest rate of 7.5% to an independent third party, indicating a surplus cash position[31]. Corporate Governance - The board of directors held eight meetings during the fiscal year, with all members attending every meeting[113]. - The board is responsible for monitoring the company's business and financial performance, including expanding property operations and enhancing tenant satisfaction[116]. - The company has received annual confirmations of independence from all independent non-executive directors[96]. - The audit committee reviewed the effectiveness of the internal control system, which was deemed effective and adequate[116]. - The company has implemented corporate governance practices to enhance credibility and transparency[108]. Environmental and Social Responsibility - The company is committed to sustainable development in its operational locations, focusing on effective resource utilization, energy conservation, and emission reduction[158]. - The company has established a cannabis cannabidiol production line, which has undergone environmental assessments and complies with national and regional industrial policies[163]. - The company has committed to maintaining compliance with relevant laws and regulations regarding emissions and waste management throughout the reporting period[171]. - The company emphasizes the importance of stakeholder communication to meet expectations and enhance sustainability in its operations[162]. Employee and Community Engagement - The employee turnover rate for the reporting period was 22%, with 50% of departing employees from Zhengzhou[186]. - The group employed 148 full-time staff, with 90% based in Zhengzhou, and an average age of 38 years[186]. - The shopping center has created over 7,000 job opportunities, contributing positively to the community, especially in areas such as children's entertainment, education, and culture[198]. - A total of 432 training sessions were conducted during the reporting period, with 260 male and 172 female participants, resulting in a male-to-female training participation ratio of 1.5:1[190].
锦艺集团控股(00565) - 2021 - 年度财报