Financial Performance - The Group's revenue for FY2021 was approximately HK$216.7 million, an increase of approximately HK$110.3 million or 103.7% compared to FY2020 revenue of approximately HK$106.4 million[12]. - The Group recorded a net loss of approximately HK$175.5 million for FY2021, an improvement from a net loss of approximately HK$223.8 million in FY2020[12]. - Basic loss per share for FY2021 was HK$12.70 cents, compared to HK$20.88 cents in FY2020 (restated)[12]. - The Group recorded revenue of approximately HK$201.5 million for FY2021, representing an increase of 112.8% compared to FY2020[28]. - Revenue from the property development business increased by approximately HK$107.0 million for FY2021, representing an increase of approximately 110.0% over FY2020[34]. - The gross profit for FY2021 was approximately HK$19.0 million, an increase of approximately HK$8.2 million or 75.9% compared to FY2020's gross profit of approximately HK$10.8 million[34]. - Other income and gains for FY2021 were approximately HK$9.9 million, a turnaround from a loss of approximately HK$0.8 million in FY2020, mainly due to a gain on bargain purchase of approximately HK$6.1 million[37]. - Selling and distribution expenses increased from approximately HK$7.1 million in FY2020 to approximately HK$15.7 million in FY2021, primarily due to increased advertising costs and sales staff expenses[37]. - Administrative and other expenses for FY2021 were approximately HK$69.7 million, an increase of approximately HK$19.8 million over FY2020, mainly due to increased depreciation and professional fees related to acquisitions[37]. - Finance costs for FY2021 were approximately HK$122.6 million, an increase of approximately HK$38.9 million from approximately HK$83.7 million in FY2020, attributed to a rise in the weighted average interest rate of borrowings[40]. Property Development - The Group expanded its property development business in October 2020 after acquiring Set Flourish Ventures Limited, which operates the Yangzhong Project[13]. - The Yangzhong Project is located at No. 1 Yihe Road, with a total site area of approximately 53,339.83 square meters, designated for residential and commercial use[13]. - The Yangzhong Project has started generating revenue during FY2021[13]. - Revenue increase primarily driven by sales from the Yangzhong Project acquired during FY2021 and the Shanghai Project, which commenced operations in November 2019[16]. - The Group's property sales under the Yueyang Project launched in 2017 were sold out during FY2021[25]. - The Group plans to construct 12 buildings under the Yangzhong Project with an estimated total gross floor area of approximately 173,457 square meters[25]. - The Yangzhong Project has a total site area of approximately 53,339.83 square meters, with land use rights granted for residential and commercial purposes[25]. - The Shanghai Project has a total site area of approximately 150,602 square meters and a total gross floor area of approximately 77,213 square meters, with rental and service fee income expected to improve significantly as operations in Mainland China resume[28]. - The construction of the first two phases of the Shanghai Project has been completed, with leasable units rented out since November 2019[28]. - The third phase of the Shanghai Project is currently in the review stage of development planning[28]. Strategic Initiatives - The Group has formulated long-term growth strategies around the 3+X model, focusing on health real estate, health services, and health products, with X representing health smart business based on big data[16]. - The Group anticipates continued demand for wellbeing-related goods and services due to the steady growth of China's economy and increasing household income[16]. - The Group aims to cooperate with leading companies in the medical and healthcare field to build new business growth segments[16]. - The Group's strategy includes sustainable expansion in high-end real estate and living services, leveraging opportunities in the healthcare sector[16]. - The Group plans to explore different financing channels to acquire land reserves or property development companies to improve the revenue and profitability of its healthcare holiday resort development and operation business[40]. - The long-term outlook for the Chinese economy remains optimistic, with the central government expected to maintain stability in the property market and implement city-specific measures to regulate short-term overheating in real estate investment[40]. - The Group aims to enhance profitability and strengthen market competitiveness through business expansion in potential cities and product innovation[43]. - The pandemic has increased demand for wellbeing-related goods and services, providing opportunities for the Group's sustainable expansion in healthcare holiday resort development[43]. - The Group has formulated a long-term growth strategy focusing on high-quality real estate and the development of properties in tourism, vacation, regimen culture, and healthcare[43]. Environmental, Social, and Governance (ESG) Initiatives - The Group aims to generate revenue for investors while ensuring compliance with all applicable legislation and reducing waste and pollutants emitted into the environment[94]. - Key ESG issues identified include carbon emissions, electricity and water consumption, and measures to reduce environmental impact, which are critical to the Group's operations[91]. - Stakeholder concerns include profitability, financial stability, information disclosure, and transparency, which are addressed through various communication channels[87]. - The Group is committed to providing a green, healthy, and safe workspace for staff, visitors, and contractors, promoting environmental awareness through training and workshops[94]. - The Group's management emphasizes the importance of minimizing environmental impacts attributable to local operational activities[94]. - The Group's ESG report is prepared in accordance with the Hong Kong Stock Exchange's ESG Reporting Guide, ensuring transparency and accountability[84]. - The Group's initiatives in community investment and corporate social responsibility are aimed at enhancing its relationship with the public and stakeholders[87]. - The Group's focus on employee development and training opportunities reflects its commitment to maintaining a motivated and skilled workforce[91]. - The Group's air emissions for FY2021 included 6 kg of NOx, 1 kg of SOx, and less than 1 kg of PM, showing a significant reduction of 99% for NOx and PM compared to FY2020[104]. - The direct CO2e emissions (Scope 1) decreased by 97% to 71 tonnes in FY2021 from 2,613 tonnes in FY2020[104]. - Indirect CO2e emissions (Scope 2) increased by 1,630% to 571 tonnes in FY2021, compared to the previous year[104]. - The Group's total carbon footprint for the ESG Reporting Year was 648 tonnes CO2e, a 75% reduction from 2,646 tonnes in the previous year[111]. - The reduction in emissions was primarily due to the interruption of construction projects in the wellness resort development segment during the ESG Reporting Year[114]. - The Group has implemented an internal environmental protection awareness program to encourage employees and clients to improve environmental performance[100]. - The Group has taken measures to ensure compliance with relevant environmental laws and regulations in both Hong Kong and the PRC[99]. - The Group's waste management guidelines and procedures are in place to ensure proper handling of all waste generated from operations[115]. - The Group plans to analyze collected data and collaborate with employees and external stakeholders to minimize its carbon footprint[111]. - The Group's environmental initiatives include strict supervision of construction processes and timely applications for government inspections post-project completion[99]. - The Group's total electricity consumption for FY2021 was 679,958 kWh, a decrease of 3% compared to FY2020's 698,652 kWh[127]. - The Group reported zero diesel consumption in FY2021, a 100% reduction from 190,247 liters in FY2020, primarily due to the completion of construction works for phases 1 and 2 of a resort project[127]. - Water consumption decreased by 60% in FY2021, totaling 9,867 m³ compared to 24,618 m³ in FY2020, reflecting the effectiveness of the Group's conservation measures[131]. - The Group implemented energy-saving measures, including adjusting air conditioning to 25.5°C and replacing fluorescent lights with LED systems[126]. - The Group's natural gas consumption increased by 174% to 2,233 m³ in FY2021, while petroleum consumption rose by 502% to 26,492 liters[133]. - The Group collected an estimated 90 m³ of non-hazardous waste in the ESG Reporting Year, down from 108 m³ in the previous year[121]. - The Group has established waste management guidelines to ensure proper treatment of hazardous and non-hazardous waste[118]. - The Group's resource management program focuses on minimizing energy and resource use while promoting recycling and environmental protection[134]. - There were no major accidents reported during the ESG Reporting Year, and the Group complied with all applicable waste-related laws and regulations[131]. - The Group will continue to monitor resource consumption and implement further improvements in energy and water efficiency[134]. - The Group used a total of 0.1 tons of paper during the ESG Reporting Year, the same as the previous reporting year, with a paper consumption intensity of 0.0004 per million Hong Kong dollars of revenue, down from 0.0010 in the previous year[138]. - The Group plans to implement a paperless working environment to reduce paper usage and facilitate information sharing via online networks[138]. Human Resources and Management - The Group had a total of 136 employees as of March 31, 2021, with a total employee remuneration of approximately HK$28,936,000 for the fiscal year[60]. - The Group's remuneration policy ensures fair compensation and continuous learning opportunities for employees, aiming to attract and retain talent[140]. - Employees are entitled to competitive remuneration packages, including performance bonuses, based on market conditions and individual qualifications[145]. - The Group complies with all applicable employment and labor laws, including providing mandatory provident fund and social insurance benefits to employees in Hong Kong and mainland China[146]. - The Group encourages employees to adopt duplex printing and copying, which has become a norm within the organization, contributing to reduced paper consumption[138]. - The Group maintains a focus on non-toxicity and environmental friendliness in sourcing packaging materials for its operations[138]. - The Group's senior management maintains communication with employees to ensure a culture of fairness and equity is implemented throughout the organization[140]. - The Group's workforce age distribution shows that 31% are below 30, 45% are between 31-40, 21% are between 41-50, and 3% are above 50[180]. - Employee gender distribution indicates 42% are female and 58% are male[180]. - The Group has maintained a high occupational safety and health standard, ensuring a safe working environment with no reported injury cases during the ESG Reporting Year[184]. - The Group participates in the MPF scheme, contributing a percentage of employees' basic salaries to the scheme, which is charged to the Group's profit or loss as they become payable[149]. - The Group's subsidiaries in the PRC are required to contribute a specific percentage of their payroll costs to a central pension scheme, depending on their location[149]. - The Group has established a Remuneration Committee to regularly review the remuneration policy and assess the performance of Directors and senior management[149]. - The Group has a zero-tolerance policy towards any form of sexual harassment and discrimination, with internal disciplinary actions for employees found in violation[176]. - The Group's commitment to diversity includes no discrimination based on gender, ethnic background, religion, or other prohibited grounds, enhancing its ability to address business issues[176]. - The Group recorded a significant increase in employee training hours, totaling 1,348 hours in the ESG Reporting Year, compared to 610 hours in 2020[189]. - The Group emphasizes compliance with labor protection laws, ensuring timely payment of wages, benefits, and insurance, with no reported labor disputes during the ESG Reporting Year[196]. Corporate Governance - The board of directors includes individuals with diverse backgrounds and expertise, contributing to effective decision-making and strategic planning[66]. - Mr. Wang Zhe has been appointed as an independent non-executive director since August 14, 2017, with extensive experience in the financial sector[72]. - Mr. Xu Liang Wei has over 20 years of experience in corporate administration and was appointed as an independent non-executive director on August 14, 2017[72]. - Mr. Chan Chi Keung has over 20 years of experience in auditing and financial management, appointed as an independent non-executive director on November 15, 2017[77]. - Ms. Yu Yixing, appointed as deputy general manager on November 1, 2019, has over 10 years of experience in financial investment[78]. - Mr. Ng Kam Ming has been appointed as the financial controller and company secretary since August 1, 2019, with over 10 years of experience in auditing and accounting[82]. - The company is focused on expanding its real estate development and management capabilities, leveraging the expertise of its executive team[65]. - The management team has a proven track record in the real estate sector, which is expected to drive future growth and market expansion[65]. - The company is committed to enhancing its operational efficiency and financial performance through strategic management practices[66]. - The leadership team is well-equipped to navigate the challenges of the real estate market, ensuring sustainable growth and profitability[66]. - The company aims to explore new opportunities in the real estate sector, supported by its experienced management team[65].
保集健康(01246) - 2021 - 年度财报