Financial Performance - The company recorded a consolidated loss attributable to shareholders of HKD 684 million for the year ended December 31, 2024, compared to a loss of HKD 146 million in 2023, marking a significant increase in losses [11]. - Total revenue increased to HKD 775 million in 2024, up from HKD 739 million in 2023, with 59% of revenue coming from Singapore and 34% from Hong Kong [11]. - The food business generated revenue of HKD 728 million, representing a 6% increase, and accounted for 94% of total revenue for the year [12]. - The company faced a net fair value loss on financial instruments for the year, contrasting with a net fair value gain in 2023, contributing to the increased losses [11]. - Other operating expenses rose to HKD 181 million in 2024, up from HKD 145 million in 2023, primarily due to increased legal and professional fees [11]. - The food business segment reported a loss of HKD 35 million, an improvement from a loss of HKD 55 million in 2023, despite ongoing challenges in the operating environment [12]. Investment Performance - The total revenue from the property investment segment for the year was HKD 21,000,000, down from HKD 23,000,000 in 2023, primarily from recurring rental income [13]. - The group recorded a net fair value loss of HKD 37,000,000 on investment properties, compared to HKD 26,000,000 in 2023, mainly due to a decline in property values in Hong Kong [13]. - The financial and securities investment segment generated total revenue of HKD 14,000,000, down from HKD 18,000,000 in 2023, with a net fair value loss of HKD 66,000,000 compared to a gain of HKD 20,000,000 in 2023 [14]. - The financial and securities investment portfolio decreased to HKD 792,000,000 as of December 31, 2024, down from HKD 1,057,000,000 in 2023 [15]. - As of December 31, 2024, the fair value of financial assets measured at fair value through profit or loss was HKD 493,000,000, down from HKD 749,000,000 in 2023 [17]. - The group confirmed an unrealized fair value loss of HKD 14,000,000 on GSH Corporation Limited, which represented 12.8% of the total financial assets measured at fair value through profit or loss [19]. - The investment in Amasia CIV had a fair value of HKD 56,000,000 as of December 31, 2024, accounting for 11.3% of the total financial assets measured at fair value through profit or loss [20]. - The investment in Quantedge had a fair value of HKD 45,000,000, representing 9.0% of the total financial assets measured at fair value through profit or loss, with a recorded fair value gain of HKD 12,000,000 for the year [21]. - The fair value of investments classified as measured at fair value through other comprehensive income was HKD 46,000,000 as of December 31, 2024, down from HKD 49,000,000 in 2023 [24]. - The fair value of the group's investment in GB as of December 31, 2024, is HKD 24,000,000, representing approximately 51.9% of the group's financial assets measured at fair value through other comprehensive income [25]. - The group recorded an unrealized fair value gain of HKD 6,000,000 from its investment in GB during the year [25]. - The fair value of the group's investment in H2G as of December 31, 2024, is HKD 11,000,000, accounting for about 23.1% of the group's financial assets measured at fair value through other comprehensive income [26]. - The group incurred an unrealized fair value loss of HKD 8,000,000 related to H2G during the year [26]. - The group recognized a share of profit of HKD 41,000,000 from its investment in TIH for the year, compared to a loss of HKD 10,000,000 in 2023 [29]. Corporate Governance - The company has appointed new directors with terms ranging from two years starting from various dates in 2023 and 2024 [56][57]. - The company has established employment agreements for its executives, with terms effective from various dates in 2015 and 2024 [58]. - The company has purchased directors and officers liability insurance to protect against potential liabilities arising from its business activities [60]. - Dr. Li Chong has been appointed as the Chairman of the Board since July 1992 and has over 40 years of experience in the industry [61]. - Mr. Li Lianwei transitioned from CEO to Vice Chairman in June 2024, bringing extensive experience as an independent non-executive director in various public companies [62]. - Mr. Li Guohui was appointed as the CEO in June 2024, with over 30 years of experience in financial investment and corporate administration [63]. - The company has a fixed two-year contract for all non-executive directors, with a requirement for rotation every three years [130]. - The board of directors consists of nine members, including five executive directors and four non-executive directors, with three being independent as defined by listing rules [122]. - The company is committed to high-quality corporate governance practices to enhance investor confidence and protect shareholder interests [118]. - The company has established a written guideline for employees regarding the trading of company securities, which is not more lenient than the standard code [121]. Risk Management - The company has adopted a risk management and internal control system, which is reviewed annually for effectiveness [146]. - The internal audit and risk management department was established in 2007 to ensure the effectiveness of internal control procedures and compliance with various standards [148]. - The company has implemented a whistleblowing policy and anti-corruption policy, with the whistleblowing policy being reviewed and updated in December 2023 [146]. - The board is responsible for maintaining adequate risk management and internal control systems, including assessing risks related to environmental, social, and governance factors [146]. - The company has established a systematic risk management process, including risk assessment standards and matrices to identify and manage risks effectively [171]. - Major risks identified include operational risks related to talent retention and recruitment, with measures such as competitive salary surveys and training programs implemented [178]. - The company has updated its IT policies and business continuity plans to address evolving cybersecurity risks and enhance risk management practices [177]. - The company has identified climate-related risks and opportunities, conducting comprehensive assessments to understand their potential impacts [177]. - The company has implemented a risk reporting template that includes climate-related risks and sustainability challenges [177]. - Continuous risk monitoring is maintained, with regular reporting to appropriate authority levels to ensure effective risk management [172]. Shareholder Relations - The company has adopted a dividend policy in January 2019 to enhance transparency for shareholders and investors [112]. - The company maintains sufficient public float as per the Hong Kong Stock Exchange listing rules [115]. - The company provides shareholders with the option to receive communications electronically to enhance engagement and protect the environment [151]. - The company has established a shareholder communication policy to maintain regular dialogue with investors and ensure transparency [157]. - The company maintains that no major disputes occurred with suppliers or customers during the year, ensuring stable relationships [108]. Sustainability and ESG - The company emphasizes sustainable development and resource optimization in its operations, aiming to improve its environmental, social, and governance (ESG) performance over time [113]. - The environmental, social, and governance (ESG) report covers the group's performance in these areas for the fiscal year ending December 31, 2024 [184]. - The group aims to continuously optimize internal data collection processes and gradually expand the scope of disclosures in its ESG report [185]. - The group has integrated ESG considerations into its operational decision-making throughout the year, emphasizing business ethics and responsible culture [192]. - The board of directors is responsible for overseeing the group's environmental, social, and governance (ESG) matters, including climate-related issues [193]. - The group has integrated ESG and climate-related factors into its enterprise risk management processes, ensuring accurate and reliable reporting [194]. - The group has not encountered any cases of corruption, bribery, extortion, fraud, or money laundering during the year [196]. - The group emphasizes the importance of stakeholder communication to better understand their needs and expectations [200].
力宝华润(00156) - 2024 - 年度财报