Financial Performance - For the fiscal year ending December 31, 2024, the company reported a revenue of HKD 414.1 million, a slight increase of 0.1% compared to HKD 413.8 million in 2023[9]. - The company recorded a significant reduction in attributable loss to HKD 136.7 million, down from HKD 853.7 million in the previous year, indicating improved financial performance[9]. - The company recorded a loss of HKD 136,700,000 in fiscal year 2024, a decrease of 84% compared to a loss of HKD 853,700,000 in fiscal year 2023[59]. - The loss attributable to shareholders decreased to HKD 136,700,000 in fiscal year 2024 from HKD 853,700,000 in fiscal year 2023, reflecting a lower fair value loss on investment properties of HKD 14,500,000 compared to HKD 451,500,000 in the previous year[67]. - The company maintained a consistent dividend payout of HKD 0.05 per share over the past five years[100]. - The group will propose a final dividend of HKD 0.03 per share for the year ending December 31, 2024, maintaining the same level as 2023[110]. - Total dividends for the year are expected to be HKD 0.05 per share, consistent with the previous year[110]. Property Development - The company is developing a residential project "Victoria Harbour" with a total of 1,437 units and an estimated total floor area of 987,812 square feet, expected to be completed in phases by July 2023[18]. - Another residential project "Repulse Bay" is under development, with an estimated total floor area of 19,055 square feet, and is projected to be completed by 2028[22]. - The company holds a 14.5% stake in the "Victoria Harbour" project, indicating a strategic partnership in property development[18]. - The group has successfully established a development pipeline in Hong Kong through land acquisitions and government tenders, focusing on luxury residential projects[61]. - The group sold over 1,320 units from the Victoria Harbour project, generating total sales of over HKD 22,600,000,000, with HKD 1,500,000,000 already received and an expected HKD 400,000,000 in 2025[64]. Investment Properties - The investment property "33 Old Broad Street" in London is part of the company's portfolio, enhancing its international presence[34]. - The total net area of the investment property at 20 Moorgate is 154,854 square feet, with 100% ownership[40]. - The investment property at 33-41 Old Broad Street has a net area of 191,165 square feet and is expected to be redeveloped into a landmark[36]. - The company has a 58.83% ownership stake in the investment property at 50 Wellington Street, which has a total area of 60,000 square feet[43]. - The hotel property in Causeway Bay has 100% ownership and is located in a prime shopping area, making it a preferred choice for business and leisure travelers[46]. - The company has established long-term leases with reputable tenants to contribute stable rental income[52]. - The revenue from investment properties, hotel operations, and financial investments contributed significantly to the overall revenue[108]. Market Conditions - The hotel industry is facing demand pressure in 2024, with high occupancy rates but downward pressure on room prices due to changing traveler behavior[51]. - The hotel sector is still recovering, with average room rates not yet returning to pre-pandemic levels, despite an increase in tourist numbers in 2024[62]. - The hotel industry continues to face significant challenges in 2024 due to rising operational costs and changing consumer behavior, despite an increase in tourist numbers[80]. - The Hong Kong real estate market faces challenges, with consumer sentiment remaining weak despite the removal of cooling measures[141]. - The Hong Kong government has announced a five-year development plan to revitalize the tourism industry, including nearly 100 major events in the first half of 2025[141]. Financial Strategy - The company aims to maintain a balanced investment property portfolio to mitigate business risks and capitalize on different regional cycles[52]. - The group maintains a healthy asset-to-liability ratio and has HKD 5,900,000,000 in available cash, with no significant refinancing needs before the end of 2026[66]. - The net asset-to-liability ratio as of December 31, 2024, was 31.4%, down from 35.1% in 2023, primarily due to cash inflows from the Victoria Harbour project[73]. - The company is closely monitoring market conditions, including interest rate trends and geopolitical factors, to adjust its investment strategy effectively[55]. - The company is focusing on reducing financing costs associated with bank borrowings, which impacted the loss attributable to shareholders[108]. - The company expects no significant refinancing needs before 2026, indicating sufficient financial flexibility and liquidity for future operations[126]. Corporate Governance - The company emphasizes the importance of good corporate governance and regularly reviews its governance practices to meet shareholder expectations[145]. - The board consists of seven members, including three executive directors and four independent non-executive directors[149]. - The company has established mechanisms to provide independent views and opinions to strengthen decision-making[152]. - The board has reviewed the effectiveness of its governance mechanisms and considers them appropriate and effective as of December 31, 2024[158]. - The company is committed to maintaining a strong and effective independent element within the board[152]. - The board encourages open communication and the raising of questions, particularly from independent non-executive directors[155]. Sustainability and Social Responsibility - The company is committed to sustainable development principles and creating long-term value for customers, society, and the environment[147]. - The company received multiple international awards for its efforts in corporate governance and social responsibility, enhancing transparency for investors[75]. - The company will publish its 2024 Environmental, Social, and Governance report in April 2025, detailing gender diversity among employees[169]. Economic Outlook - The International Monetary Fund projects global economic growth at 3.3% in 2025, slightly up from 3.2% in 2024, but below the average growth rate of 3.7% from 2000 to 2019[79]. - China's economy is expected to grow by 5% in 2024, aligning with government targets, with continued support for real estate and domestic investment[137]. - The UK economy unexpectedly grew by 0.1% in Q4 2024, with expectations for further interest rate cuts[142].
爪哇控股(00251) - 2024 - 年度财报