Financial Performance - The group's consolidated revenue decreased by 6.5% from approximately HKD 51,800,000 for the year ended December 31, 2023, to approximately HKD 48,400,000 for the year ended December 31, 2024[10]. - Revenue from property investment and management was approximately HKD 33,400,000 and HKD 15,000,000 respectively, compared to HKD 36,400,000 and HKD 15,400,000 in 2023[10]. - Overall gross profit decreased by 2.1% from approximately HKD 32,500,000 in 2023 to approximately HKD 31,800,000 in 2024, while gross profit margin increased from 62.8% to 65.7%[10]. - The group recognized a net fair value loss of approximately HKD 79,500,000 on investment properties for the year ended December 31, 2024, compared to HKD 33,100,000 in 2023[10]. - Loss attributable to owners of the company was approximately HKD 65,800,000 for the year ended December 31, 2024, down from HKD 111,300,000 in 2023[10]. - The group's revenue from continuing operations decreased to approximately HKD 48.4 million for the year ended December 31, 2024, a decline of about 6.5% compared to HKD 51.8 million in the previous year[18]. - The gross profit decreased to approximately HKD 31.8 million, down by about HKD 0.7 million from HKD 32.5 million in the previous year, with a gross margin of 65.7%, up from 62.8%[20]. - Other operating income fell to approximately HKD 1.5 million, a decrease of about HKD 0.7 million from HKD 2.2 million in the previous year, primarily due to a reduction in interest income[21]. - Other operating expenses increased to approximately HKD 50.4 million, up from HKD 31.2 million in the previous year, mainly due to increased impairment losses on property inventory and assets[22]. - The group recorded a loss of approximately HKD 79.5 million from fair value changes of investment properties, compared to a loss of HKD 33.1 million in the previous year[23]. - The total borrowings amounted to approximately HKD 358.1 million, an increase from HKD 344.3 million in the previous year, with certain investment properties valued at approximately HKD 422.6 million mortgaged as collateral[30]. - The debt-to-equity ratio increased to approximately 57.9% from 50.5% in the previous year, primarily due to the net loss incurred during the year[31]. - The company reported its annual performance for the year ending December 31, 2024, with detailed financial statements available on page 74 of the report[49]. - No dividends were recommended for the year ending December 31, 2024[50]. - The company reported no distributable reserves as of December 31, 2024, in compliance with Cayman Islands company law[60]. - The board has decided not to declare a dividend for the year ending December 31, 2024, consistent with the previous year[62]. Property Management and Operations - The occupancy rate of the Future City shopping center reached 93.2% as of December 31, 2024, up from 88.6% in 2023[11]. - Rental income generated from investment properties was approximately HKD 33,400,000 for the year ended December 31, 2024, compared to HKD 36,400,000 in 2023[12]. - The group established Wuhan Future City Property Management Co., Ltd. to manage the Future City shopping center, which has a total leasable area of approximately 55,029 square meters[11]. - The total fair value of the Future City, Future Mansion parking lot, and Zhongshui Longyang Plaza parking lot was approximately HKD 1,036,600,000 as of December 31, 2024, down from HKD 1,051,600,000 in 2023[12]. Corporate Governance and Social Responsibility - The company emphasizes the importance of maintaining good relationships with suppliers and customers to achieve short-term and long-term goals[51]. - The company is committed to enhancing governance, promoting employee welfare, and protecting the environment to fulfill its social responsibilities and achieve sustainable growth[52]. - There were no significant violations of applicable environmental laws or regulations during the review year[53]. - The company strives to maintain high integrity in all business aspects and has implemented various internal control measures and training[54]. - The company has not entered into any significant contracts with directors or related parties during the year[76]. - Major shareholders owning 5% or more of the company's issued share capital will be disclosed in accordance with the Securities and Futures Ordinance[77]. - The audit committee, consisting of independent non-executive directors, reviewed the group's financial statements for the year ending December 31, 2024[83]. - The company has maintained directors' and senior officers' liability insurance during the year[90]. - The board emphasizes sustainable development and corporate social responsibility to enhance corporate image and reduce risks[99]. Employee and Workforce Management - The total number of employees as of December 31, 2024, was approximately 92, with total employee costs for the year amounting to approximately HKD 16.3 million[34]. - The total number of employees decreased from 119 in 2023 to 92 in 2024, indicating a significant change due to the sale of a subsidiary[166]. - The employee distribution by type shows 92 full-time employees and 0 part-time employees in 2024, compared to 119 full-time and 0 part-time in 2023[167]. - The gender distribution of employees in 2024 is 61 males and 31 females, compared to 76 males and 43 females in 2023, reflecting a decrease in both categories[170]. - The employee turnover rate for males in 2024 is 21.79% and for females is 27.91%, indicating a notable difference in retention[182]. - The turnover rate for employees under 30 years old is 20.59%, while for those aged 51 to 60 years old, it is 62.50%, showing a significant variance across age groups[184]. - The company maintained a zero incident record for work-related deaths and zero days lost due to occupational injuries over the past three years, including the 2024 reporting period[191]. - The company adheres to all employment laws and regulations in China and Hong Kong, with no disputes related to salary, compensation, or health benefits reported[165]. - The company provides statutory benefits to all eligible employees, including mandatory provident fund and social insurance, in compliance with local laws[165]. - The employee recruitment and assessment processes are transparent, ensuring equal opportunities regardless of age, race, religion, gender, or disability[165]. - The company is committed to providing a safe and comfortable working environment, continuously improving occupational safety and health management systems[189]. - Employee training participation rate increased to 25.00% in 2024 from 23.53% in 2023[195]. - Average training hours per employee rose to 1.96 hours in 2024, up from 1.41 hours in 2023[196]. - Average training hours for male employees increased to 2.75 hours in 2024 from 2.21 hours in 2023[196]. - Average training hours for female employees recorded at 0.39 hours in 2024, with no data for 2023[196]. - General staff maintained a consistent average training hour of 30.00 in 2024, compared to 28.00 in 2023[196]. - The company has not faced any labor lawsuits or allegations during the 2024 reporting period, consistent with 2023[198]. - The company adheres strictly to labor laws and employment regulations in China and Hong Kong, ensuring a safe and harmonious work environment[198]. - The company continues to support employee development through internal and on-the-job training programs[195]. - The company has established regular communication with employee representatives to discuss working conditions and safety issues[198]. Environmental, Social, and Governance (ESG) Initiatives - The group is committed to environmental, social, and governance (ESG) principles, focusing on reducing negative environmental impacts[97]. - The company operates in real estate-related businesses, including property development and management in Wuhan, China[97]. - The company prioritizes employee well-being by implementing health and wellness programs and promoting professional growth[100]. - The company aims to create long-term value for stakeholders through strong relationships and open dialogue[100]. - The company maintains the same environmental, social, and governance (ESG) management framework as the previous reporting period[102]. - The board regularly reviews and discusses annual environmental goals to ensure progress and compliance[103]. - The company adheres to the Hong Kong Stock Exchange's ESG reporting guidelines to fulfill its sustainable development objectives[103]. - Indirect CO2 emissions from the Hong Kong office increased by 7.82% to 11.31 tons in 2024, compared to 10.49 tons in 2023[119]. - Indirect CO2 emissions from Wuhan decreased by 21.50% to 2,517.10 tons in 2024, down from 3,206.30 tons in 2023[119]. - Total indirect CO2 emissions decreased by 21.40% to 2,528.41 tons in 2024, compared to 3,216.79 tons in 2023[119]. - CO2 emissions per employee in the Hong Kong office decreased by 33.59% to 0.87 tons in 2024, down from 1.31 tons in 2023[119]. - CO2 emissions per employee in Wuhan increased by 10.28% to 31.86 tons in 2024, compared to 28.89 tons in 2023[119]. - The company aims to reduce indirect CO2 emissions in both Wuhan and Hong Kong offices by 1% to 2% in the coming year[121]. - The company reported no violations of environmental laws or regulations in 2024, consistent with 2023 performance[118]. - The company plans to reduce overall paper consumption by 2% to 3% in the coming year[123]. - The company has not received any complaints regarding noise pollution during the reporting period, maintaining performance from 2023[121]. - The company has not received any complaints regarding wastewater discharge during the reporting period, consistent with 2023 performance[121]. - The electricity consumption in Hong Kong office increased by 11.04% to 17,131 kWh in 2024 from 15,428 kWh in 2023[128]. - Total electricity consumption decreased by 16.59% to 4,704,470.27 kWh in 2024 from 5,640,512.19 kWh in 2023[128]. - Water consumption in Wuhan significantly decreased by 79.07% to 17,287 cubic meters in 2024 from 82,656.36 cubic meters in 2023[131]. - The paper usage in Hong Kong office reduced by 66.67% to 12,000 sheets in 2024 from 36,000 sheets in 2023[133]. - The company aims to reduce electricity consumption by 1-2% under normal operating conditions in the coming year[128]. - The company plans to maintain the downward trend in water consumption and achieve an overall reduction of 1-2% in the coming year[132]. - The company has not reported any unreasonable resource usage during the reporting period[127]. - The company has implemented various measures to promote efficient use of resources, including electricity, water, and paper[127]. - The company has not received any environmental violation warnings or complaints during the reporting period[136]. - The company continues to support all possible measures for reduction, reuse, and recycling of resources[136]. - The board has identified global warming and reduction of paper usage as the two most significant climate issues impacting the company[137]. - The company has implemented policies to effectively utilize electricity to reduce indirect CO2 emissions, acknowledging that CO2 emissions are a primary cause of global warming[138]. - The management team plays a critical role in reviewing and responding to climate-related risks and opportunities, ensuring the implementation of board-established policies[139]. - The company has identified extreme weather events such as typhoons and heavy rain as acute physical risks that could lead to economic losses and increased operating costs[142]. - Measures have been established to mitigate the negative impacts of extreme weather, including securing equipment and notifying customers of potential delays[144]. - Long-term physical risks include increased electricity demand and operating costs due to prolonged high temperatures, which could lead to higher employee health risks[146]. - The company is exploring new technologies and sustainable materials to address transition risks associated with moving to a low-carbon system[150]. - The company aims to expand its product and service range to meet the growing demand for environmentally friendly options, addressing market and reputational risks[150]. - The company has set recent targets to demonstrate its commitment to carbon reduction efforts, responding to legal and policy risks related to stricter carbon reduction regulations[150]. - The company recognizes the need for increased transparency in carbon emissions reporting to maintain reputation and avoid potential stock price declines[150]. - The company recognizes climate change as a strategic business risk and integrates climate-related risks and opportunities into its overall business strategy[154]. - The company aims to reduce greenhouse gas emissions by 1-2% in the coming year through monitoring employee energy-saving behaviors[158]. - Indirect greenhouse gas emissions from electricity usage decreased by 21.40%, from 3,216.79 tons in 2023 to 2,528.41 tons in 2024[156]. - The company has implemented policies to reduce electricity consumption and plans to invest in more energy-efficient equipment and procedures in the near future[159]. - The company is actively seeking logistics partners that utilize electric vehicles or similar methods to minimize their carbon footprint[161]. - The company has updated its climate scenario analysis assessment method based on TCFD recommendations, evaluating climate risks and opportunities under two integrated scenarios[154]. - The company aims to enhance long-term resilience by comprehensively assessing, managing, and monitoring climate risks that may impact its operations[154]. - The company has established effective strategies and measures to manage significant climate risks affecting its value chain[154]. - The company continues to monitor key indicators, particularly greenhouse gas emissions, to assess climate-related risks[154]. - The company has taken measures to encourage employees to use water more efficiently to reduce consumption[160].
中国城市基础设施(02349) - 2024 - 年度财报