MELBOURNE ENT(00158)2024-12-23 08:30Financial Performance - The group reported a loss of HKD 156.4 million for the fiscal year ending September 30, 2024, compared to a loss of HKD 129.1 million in 2023, primarily due to a fair value loss on investment properties of HKD 264.9 million[1]. - The fair value loss on investment properties increased from HKD 221.1 million in 2023 to HKD 264.9 million in 2024[1]. - The group's revenue increased by 2.4% compared to the previous year, reflecting a recovery in social order in 2023[2]. - The Group reported a loss before taxation of HKD 138,498,000 in 2024, compared to a loss of HKD 112,746,000 in 2023, indicating a deterioration of 22.9%[121]. - Loss for the year attributable to equity holders was HKD 156,357,000, up from HKD 129,165,000, indicating an increase of about 21.1%[198]. - Total comprehensive loss attributable to equity holders was HKD 166,236,000, compared to HKD 145,644,000 in the previous year, reflecting an increase of approximately 14.1%[198]. - Basic and diluted loss per share for the year was (5.17), compared to (6.25) in 2023, showing an improvement in loss per share[198]. Dividends and Shareholder Returns - The board proposed a final dividend of HKD 1.8 per share, maintaining the total annual dividend at HKD 3.6 per share, consistent with 2023[1]. - The management emphasized a cautious operational approach to maintain close contact with tenants and aim for ideal returns for shareholders[3]. Environmental, Social, and Governance (ESG) Initiatives - The group is committed to enhancing its ESG strategies and aligning activities with established sustainability goals[14]. - The group has implemented energy-saving measures, including high-efficiency water-cooled chillers and LED lighting systems, to reduce greenhouse gas emissions[26]. - Water conservation initiatives have been introduced, such as installing water-saving faucets and promoting water-saving concepts to tenants[28]. - The group actively engages with stakeholders to address ESG concerns and improve operational practices[14]. - Total greenhouse gas (GHG) emissions increased to 3,179 tonnes CO2 equivalent in 2023/24 from 3,099 tonnes in 2022/23, representing a rise of approximately 2.6%[36]. - Total electricity consumption rose to 3,869,618 kWh in 2023/24, up from 3,741,775 kWh in 2022/23, indicating an increase of about 3.4%[36]. - Total water consumption increased significantly to 14,726 m³ in 2023/24, compared to 10,790 m³ in 2022/23, reflecting a rise of approximately 36.5%[36]. - The Group has implemented emergency plans to manage climate risks from extreme weather events, aiming to reduce operational disruptions and potential financial losses[32]. - The Group has fully implemented LED lighting to reduce energy consumption and promote cost savings, contributing to environmental sustainability efforts[32]. - The Group's compliance with environmental laws and regulations has been maintained, with no significant non-compliance issues reported[30]. - The Group's site selection focuses on urban areas, minimizing its impact on the natural environment while enhancing employees' environmental awareness[30]. - The Group has upgraded air conditioning systems to improve energy efficiency, significantly reducing energy consumption[32]. - The Group regularly reviews climate change impacts and has identified relevant climate risk categories to mitigate future risks[33]. - The Group's commitment to sustainable procurement includes minimizing risks associated with environmental, social, and governance practices in its supply chain[59]. Employee Engagement and Development - The Group provides competitive remuneration and a range of benefits, including medical allowance and transportation subsidies, to attract and retain talent[1]. - Employee satisfaction with the working environment is high, resulting in low staff turnover during the reporting period[1]. - The Group encourages professional development by providing study subsidies and flexible work arrangements, supporting employees in attending training workshops[53]. - Flexible work arrangements are made available to support employees in maintaining work-life balance[45]. - The Group's long-term human capital development plan includes diversifying the employee training curriculum[55]. - Average training hours for female employees increased from 6.5 to 11.5 hours, a rise of 76.9%[93]. - Average training hours for male employees increased significantly from 1 to 23 hours, a rise of 2200%[93]. - Average training hours for management increased from 25 to 40 hours, a rise of 60%[93]. - The Group reported no work-related fatalities or injuries during the reporting period[93]. - The Group actively promotes employee health through strict preventive measures and active disinfection protocols[1]. - The Group strictly prohibits the use of child and forced labor in its operations and expects suppliers to adhere to the same standards[57]. Customer Satisfaction and Service Quality - The Group maintains a 100% tenant satisfaction rate through its "Report and Resolve" management approach, demonstrating a commitment to tenant engagement and service quality[69]. - Daily site inspections and frequent tenant communications are conducted to uphold high service standards, with feedback and complaints escalated and addressed promptly[64]. - There were no complaints related to products and services during the reporting period, indicating high customer satisfaction[110]. Financial Instruments and Valuation - The fair value of financial instruments traded in active markets is based on quoted market prices, with no instruments included in level 1 as of September 30, 2024 and 2023[48]. - The Group has not transferred any financial assets between different levels of the fair value hierarchy for the year ended September 30, 2024[48]. - The fair value of financial assets at fair value through other comprehensive income was HKD 62,748,000 for 2024, down from HKD 72,627,000 in 2023, indicating a decrease of approximately 13%[143]. - The Group's financial instruments measured at fair value include Level 3 financial assets, which are significant for valuation purposes[143]. - The valuation technique for unlisted financial assets is based on adjusted net asset methods, considering market values of related properties[143]. - The fair value of investment properties is determined by independent valuers using market value assessments, reflecting the importance of accurate valuation methods[146]. - The management engaged an independent external valuer to perform a valuation of the investment properties, using the direct comparison approach[168]. - The audit identified the valuation of investment properties as a key audit matter due to significant judgment and estimation uncertainty involved[174]. - The methodologies used in preparing the valuations of the investment properties were found to be appropriate, and the key assumptions were supported by available evidence[174]. Audit and Compliance - The Group's financial statements were prepared in accordance with HKFRSs and reflect a true and fair view of the Group's financial position as of September 30, 2024[155]. - The Audit Committee is responsible for overseeing the Group's financial reporting process[179]. - The directors are responsible for assessing the Group's ability to continue as a going concern and for disclosing relevant matters[185]. - The independent auditor's report confirmed that sufficient and appropriate audit evidence was obtained to provide a basis for the opinion on the consolidated financial statements[162]. - The company has no reports of significant misstatements in the financial statements as per the auditor's assessment[187]. - The auditor's responsibilities include obtaining reasonable assurance that the consolidated financial statements are free from material misstatement due to fraud or error[190]. - The audit aims to evaluate the appropriateness of accounting policies and the reasonableness of estimates made by the directors[192]. - The overall presentation and structure of the consolidated financial statements will be evaluated to ensure fair representation of underlying transactions[192]. - The audit will include communication with the Audit Committee regarding significant audit findings and deficiencies in internal control[195]. - The engagement partner for the audit is Chan Ka Yee from PricewaterhouseCoopers[197].