Financial Performance - The company recorded a consolidated loss attributable to shareholders of HKD 1,412,000,000 for the year ending December 31, 2024, compared to a loss of HKD 35,000,000 for the year ending December 31, 2023, indicating a significant increase in losses [12]. - Revenue increased to HKD 849,000,000 in 2024, up from HKD 814,000,000 in 2023, with 60% of revenue coming from Singapore and 31% from Hong Kong [12]. - The food business remains the primary source of revenue, contributing 86% of total revenue in 2024, with a growth rate of 6% compared to the previous year [12]. - Other operating expenses rose to HKD 200,000,000 in 2024, up from HKD 169,000,000 in 2023, primarily due to increased legal and professional fees [13]. - The company recorded a net fair value loss on financial instruments for the year, contrasting with a net fair value gain in 2023 [12]. - The group's property investment segment recorded total revenue of HKD 92 million, unchanged from 2023, primarily from recurring rental income and interest income from joint ventures [14]. - The group reported a net fair value loss of HKD 18 million on investment properties, an improvement from a loss of HKD 27 million in 2023, attributed to a decline in property values in Hong Kong [14]. - The group's share of losses from its joint venture, Lippo ASM Asia Property Limited, amounted to HKD 1.192 billion, a significant decline from a profit of HKD 174 million in 2023, mainly due to losses from OUE Group's investments in mainland China [16]. - The group's food business segment generated revenue of HKD 728 million, up 6% from HKD 687 million in 2023, driven by improved performance in Singapore and Malaysia [18]. - The financial and securities investment segment reported total revenue of HKD 17 million, down from HKD 21 million in 2023, with a net fair value loss of HKD 66 million compared to a gain of HKD 20 million in the previous year [19]. - The group's financial and securities investment portfolio decreased to HKD 1.008 billion as of December 31, 2024, down from HKD 1.189 billion in 2023 [20]. - The group experienced a loss of HKD 35 million in its food business segment, an improvement from a loss of HKD 55 million in 2023, despite ongoing challenges in the operating environment [18]. - The total assets of the group as of December 31, 2024, amounted to HKD 13.3 billion, a decrease from HKD 15.1 billion as of December 31, 2023 [36]. - The total liabilities increased to HKD 3.1 billion as of December 31, 2024, compared to HKD 2.2 billion as of December 31, 2023 [36]. - The equity attributable to the company's shareholders decreased to HKD 7 billion as of December 31, 2024, from HKD 9.1 billion as of December 31, 2023, equivalent to HKD 14.2 per share [39]. Special Distributions and Shareholder Engagement - The company announced a special interim distribution of up to 1,193,432,757 shares of Hongkong Chinese Limited to shareholders, providing flexibility in participation [6]. - The total distribution/dividend for the year amounts to HKD 322,227,000, with no interim dividend declared for the current year [47]. - A special interim distribution of up to 1,193,432,757 shares of Hongkong Chinese Limited (HKC) was made, with a distribution ratio of 2,420 HKC shares for every 1,000 shares held, based on a market price of HKD 0.27 per share [47]. - The company has adopted a dividend policy to enhance transparency for shareholders and investors, with details available in the corporate governance report [112]. - The company maintains ongoing dialogue with shareholders and has not made any amendments to its articles of association this year [161]. Economic Environment and Market Challenges - The economic environment in Hong Kong showed a moderate growth of 2.5% in 2024, while Singapore's economy grew by 4.4% [11]. - The company faced challenges in the food business due to decreased consumer spending and increased short trips abroad by local residents [5]. - The global growth rate is expected to be 3.3% in 2025, lower than the historical average of 3.7%, indicating a downward risk due to trade protectionism and geopolitical tensions [42]. - The GDP growth forecast for mainland China is expected to slow down due to tariff increases and industrial overcapacity, with Singapore's Ministry of Trade and Industry projecting GDP growth between 1.0% and 3.0% for 2025 [42]. Governance and Management - The company has a strong governance structure with experienced board members, including individuals with over 30 years of experience in finance and corporate governance [70][71][72][73]. - The company emphasizes market-level salary adjustments for directors based on their roles and responsibilities, ensuring competitive compensation [76]. - The board consists of independent non-executive directors who contribute to various committees, enhancing oversight and governance [71][72][73]. - The company has maintained transparency in disclosing director and executive compensation details in its financial reports [75]. - The company has established employment agreements for its directors, with terms ranging from two years starting from various dates in 2023 and 2024 [63]. - The company has appointed Dr. Li Wenzheng as honorary chairman to recognize his valuable contributions over the years [61]. - The company has a policy that one-third of the directors must retire at each annual general meeting, ensuring regular rotation and independence [126]. - The company has appointed Ms. Wu Minyan as an independent non-executive director to promote gender diversity on the board [125]. - The company has established a written guideline for employees regarding the trading of the company's securities, which is not more lenient than the standard code [123]. Risk Management and Compliance - The company has adopted a risk management and internal control system, which is reviewed annually for effectiveness, including financial, operational, and compliance monitoring [149]. - The company has identified key risks and uncertainties that may impact its financial condition and operational performance, detailed in the risk management report [111]. - The company has established a health and safety committee to monitor occupational health and safety, ensuring compliance with relevant laws and regulations [180]. - The company has implemented several key measures to enhance its risk management system for the fiscal year ending December 31, 2024 [178]. - The company has a risk management leadership team that oversees overall risk management activities [169]. - The company conducts annual reviews of the adequacy and effectiveness of its risk management and internal control systems [173]. - The company has established guidelines for the fair and timely disclosure of inside information to the public [149]. - The company has implemented a robust anti-corruption policy that sets basic behavioral standards for all directors and employees [198]. - The company conducted anti-corruption and ethics training for its directors and employees during the year [198]. Environmental, Social, and Governance (ESG) Initiatives - The environmental, social, and governance report for the year ending December 31, 2024, outlines the company's performance in sustainability efforts [186]. - The report covers the operations of the company and its subsidiaries in the food business, property development, property investment, and property management [187]. - The company aims to continuously optimize internal data collection processes and gradually expand the scope of disclosures [187]. - The environmental, social, and governance (ESG) report is prepared in accordance with the Hong Kong Stock Exchange's ESG Reporting Guide [190]. - The company has integrated ESG considerations into its annual operational decision-making processes [194]. - The board of directors is responsible for overseeing ESG-related matters, including climate-related issues [195]. - The company has established a comprehensive internal control and formal audit process to ensure the accuracy and reliability of the ESG report [196]. - The company is committed to protecting customer data privacy and respecting third-party intellectual property, implementing strict guidelines for data collection and handling [199]. - The company has a whistleblowing policy to maintain high standards of transparency and accountability, allowing employees to report misconduct confidentially [200].
力宝(00226) - 2024 - 年度财报