Financial Performance - For the year ended December 31, 2021, the Group's revenue increased by 17.7% to HK$79.1 million compared to HK$67.2 million for the year ended December 31, 2020[12]. - The Group reported a loss of HK$38.3 million for the year ended December 31, 2021, an improvement from a loss of HK$83.4 million in 2020[12]. - The gross profit for the year ended December 31, 2021, was HK$40.4 million, significantly up from HK$11.3 million in 2020[12]. - The Group recorded a gain on disposal of subsidiaries amounting to HK$15.0 million for the year ended December 31, 2021, compared to HK$55.7 million in 2020[12]. - The securities trading segment achieved a profit of HK$0.1 million for the year ended December 31, 2021, recovering from a segment loss of HK$0.1 million in 2020[18]. - Hotel business revenue increased by 17.7% to HK$79.1 million for the year ended December 31, 2021, compared to HK$67.2 million for the previous year[19]. Occupancy and Operations - The average occupancy rate of the Group's hotels decreased by 13.6% to 24.4% for the year ended December 31, 2021, down from 38.0% in 2020[17]. - Administrative and other operating expenses were HK$84.7 million for the year ended December 31, 2021, compared to HK$78.5 million in 2020[12]. - The average occupancy rate decreased by 13.6% to 24.4% for the year ended December 31, 2021, down from 38.0% the previous year[19]. Financial Position - The Group's cash and bank balances and investments held for trading amounted to HK$1,782.7 million as of December 31, 2021, compared to HK$1,813.5 million the previous year[23]. - Current assets and current liabilities were HK$1,853.6 million and HK$88.3 million, respectively, resulting in a current ratio of 21.0 as of December 31, 2021[24]. - The gearing ratio as of December 31, 2021, was 1.2%, unchanged from the previous year[24]. Future Outlook - The Company expects international travel to resume normal in 2024 due to high vaccination rates and community immunity[43]. - The Group plans to seek further high-quality hotel investment opportunities and explore other high-growth business segments, including commercial and residential property development projects in the PRC[43]. - The PRC's GDP grew by approximately 8.1% in 2021, indicating a strong economic recovery that may benefit the Group's operations[8]. - Approximately 128 million people entered/exited through immigration clearance in the PRC during 2021, reflecting a decrease of only 3% year-on-year, which may impact the hospitality sector positively in the future[8]. Leadership and Governance - The company has a strong leadership team with diverse backgrounds in finance, real estate, and technology[56]. - Mr. Tam Chung Sun has over 30 years of experience in real estate development and hotel operations, and has been the Chairman since October 2020[46]. - Mr. Lai Tsz Wah has been the managing director since May 2019, with more than 30 years of experience in auditing, accounting, and finance[47]. - The board includes a mix of executive and independent non-executive directors to ensure effective governance[58]. - The company is focused on expanding its market presence and enhancing operational management through strategic appointments[61]. Corporate Governance - The Company complies with the Corporate Governance Code, with minor exceptions explained in the report[73]. - The board of directors consists of six members, including three executive directors and three independent non-executive directors[78]. - The Company has established various committees, including the audit committee, remuneration committee, nomination committee, and corporate governance committee, to oversee specific aspects of its affairs[80]. - The Company has established a Nomination Committee comprising two INEDs and one Executive Director to guide the nomination process[129]. - The Company has purchased appropriate directors and officers liability insurance to protect against legal actions arising from the performance of their duties[90]. Audit and Risk Management - The independent auditor issued a qualified opinion on the consolidated financial statements for the year ended December 31, 2021, due to insufficient financial information regarding the investment in 翹豐發展[174][178]. - The Audit Committee held five meetings during the year to review financial reporting matters, including the annual results for the year ended December 31, 2020, and the interim results for the six months ended June 30, 2021[112]. - The Company has outsourced its internal control audit function to an independent accounting firm to review key internal controls based on operational, financial, and compliance risks[167]. - The independent accounting firm reported no significant control failings or weaknesses during the year, ensuring an adequate internal control system is maintained[168]. - The Audit Committee is satisfied with the effectiveness and adequacy of the internal control audit function, confirming it is adequately resourced[169]. Shareholder Communication - The company maintains ongoing communication with shareholders through financial reports, announcements, and general meetings[195]. - Shareholders are encouraged to participate in meetings and can appoint proxies if unable to attend[196]. - The company emphasizes the importance of shareholder communication and has established formal channels for this purpose[199]. - The company’s website provides additional information regarding its operations and financial performance[200].
大湾区聚变力量(01189) - 2022 - 年度财报