Financial Performance - The company reported a comprehensive financial performance for the year ending December 31, 2024, in accordance with Hong Kong accounting standards[3]. - The annual performance announcement complies with GEM listing rules and has been reviewed by the company's audit committee[4]. - Total hotel operating revenue for the year was approximately HKD 41.7 million, a decrease of about 28.6% compared to the previous fiscal year[16]. - The attributable loss to shareholders was approximately HKD 146.5 million, an increase of about 66.0% or HKD 58.2 million compared to the previous fiscal year[16]. - The group reported a loss of HKD 150.91 million for the year ending December 31, 2024, with a net current liability of HKD 499.60 million[50]. - As of December 31, 2024, the group had total liabilities of approximately HKD 473.9 million and a total deficit of approximately HKD 81.3 million, making the capital-to-debt ratio not applicable[34]. - The group did not incur any losses from bad debt assets this year, but recorded an expected credit loss provision of approximately HKD 9.9 million, up from HKD 5.3 million in 2023[27]. Governance and Board Composition - The board of directors collectively and individually confirms the accuracy and completeness of the information provided in the announcement[7]. - The executive directors include Mr. He Dingding (CEO) and Mr. Lv Tianshun, while the non-executive directors include Mr. Zhao Gongzhi and Mr. Huang Junxiong (Chairman)[11]. - The company has undergone changes in its board composition, with new appointments and resignations noted for various directors[11]. - The board consists of 9 members, with 1 female member, and aims to maintain at least one female board member[84]. - The company has adopted a board diversity policy to enhance diversity through various factors, including gender and experience[82]. - The independent non-executive directors have confirmed their independence according to GEM listing rules[74]. - The board is responsible for setting strategies and policies, overseeing management performance, and ensuring the company's success[80]. Corporate Governance and Compliance - The company is committed to transparency and accountability in its financial reporting and corporate governance[7]. - The company is committed to high standards of corporate governance to align with shareholder interests[70]. - The company has established clear guidelines for the management's authority and regularly reviews these delegations[81]. - The company has established a framework for the Audit Committee to review financial reporting and risk management practices[88]. - The group has complied with all applicable environmental protection laws and regulations during the year[43]. - The company has maintained compliance with all relevant laws and regulations throughout the year[185]. Risk Management - The group has implemented several risk management measures to mitigate operational and financial risks, including monitoring competitors and adjusting business activities according to macroeconomic conditions[45]. - The group has established a risk register to document identified risks and has developed a three-year internal control review plan to effectively monitor and mitigate major risks[107]. - The company emphasizes a risk management process that includes identifying, assessing, responding to, and monitoring risks[102]. - The board is responsible for ensuring the effectiveness of the enterprise risk management system and reviews it at least annually[98]. Future Prospects and Strategies - The company remains cautiously optimistic about future prospects, especially with the expected completion of renovations by the end of 2025[17]. - The company aims to enhance overall asset returns and corporate value in the face of challenges and opportunities[17]. - The company is actively seeking refinancing options through long-term secured loans and/or equity financing to address its net current liabilities[56]. - The company anticipates that the Singapore hotel business will generate sufficient operating profit to cover expenses as it gradually recovers from the COVID-19 pandemic[55]. - The company is cautiously optimistic about future prospects, expecting a strong recovery in the tourism industry as global vaccination efforts continue and travel restrictions ease[64]. Employee and Compensation - The total employee cost for the year was approximately HKD 26.9 million, an increase from HKD 17.0 million in 2023, primarily due to an increase in the number of employees from 50 to 60[36]. - The group emphasizes the importance of maintaining competitive compensation packages to attract capable employees in the labor-intensive hotel industry[48]. - The management is committed to providing comprehensive training for employees to enhance service quality and customer satisfaction[48]. Shareholder Engagement and Dividends - The board does not recommend the distribution of a final dividend for the year[42]. - The company has adopted a dividend policy that considers its financial performance, cash flow, and overall business conditions before declaring dividends[122]. - The company held its annual general meeting on May 31, 2024, where all directors attended either in person or electronically[127]. Financing and Capital Structure - The company has entered into a financing agreement for a loan of SGD 75 million at an annual interest rate of 9%[169]. - The company redeemed all obligations under the 2015 convertible bonds, paying a total of HKD 41,202,380.14[172]. - The group has a total of HKD 83.93 million in other financial liabilities that require repayment, including various payable amounts[50]. - The company has not reported any changes in its capital structure during the year[156]. Share Options and Employee Incentives - The 2014 Share Option Scheme will expire on June 19, 2024, after a 10-year term[191]. - A new 2024 Share Option Scheme has been adopted, effective from May 31, 2024, for another 10 years[199]. - The maximum number of shares that can be issued under the 2024 Share Option Scheme is also limited to 10% of the total issued shares without prior shareholder approval[198].
华星控股(08237) - 2024 - 年度业绩