Financial Performance - The Group's basic earnings attributable to shareholders increased by 72.4% to HKD 1.107 billion in 2022, compared to HKD 642 million in 2021[13]. - The Group's total revenue for 2022 was HKD 4.582 billion, a significant increase from HKD 2.050 billion in 2021[18]. - The net profit attributable to shareholders for the year ended December 31, 2022, was HKD 1.215 billion, down 45.0% from HKD 2.209 billion in 2021 due to a significant decrease in net fair value gains from investment properties in Hong Kong[13]. - The Group's operating profit for 2022 was HKD 1.787 billion, compared to HKD 2.397 billion in 2021[18]. - The Group's basic earnings per share for 2022 was HKD 0.94, an increase from HKD 0.55 in 2021[18]. - Total assets decreased from HKD 48.117 billion in 2021 to HKD 47.766 billion in 2022[19]. - The net asset value attributable to shareholders was HKD 18.426 billion in 2022, down from HKD 18.953 billion in 2021[19]. - The company proposed a final dividend for 2022 is HKD 0.57 per share, with a total annual dividend of HKD 0.83 per share[13]. Property Development - Kowloon Development Company Limited's attributable gross floor area landbank amounts to approximately 3.4 million sq m in Hong Kong and Mainland China as of December 31, 2022[5]. - The Group's property development projects in Mainland China include Jiangwan City (Shenyang) and Cuidi Bay (Shenyang)[11]. - The total sales revenue from the residential project "Oceanview Garden" in Hong Kong was approximately HKD 3 billion, with over 520 units sold by the end of 2022[25]. - The group owns a 100% stake in the Clearwater Bay Road project, which has a total floor area of approximately 201,000 square meters and is expected to be developed into a large shopping center and five high-end residential towers[41]. - The group is currently developing the residential project Jiangwan South Coast Garden in Huizhou, with a total floor area of approximately 520,000 square meters, of which 60% is owned by the group[53]. - The foundation works for the residential and commercial project in Shenyang are ongoing, with a total floor area of approximately 712,000 square meters[46]. - The group plans to launch pre-sales for the residential development project in Sai Kung, with approximately 1,000 unsold residential units expected to be sold in 2023[1]. - The group is conducting foundation works for the mixed-use development project in Sai Ying Pun, which is expected to launch pre-sales in Q3 2023[1]. Financial Investments - The Group's financial investments include fixed income and equity investments in Hong Kong and other recognized financial markets[11]. - Interest and dividend income from financial investments rose to HKD 159 million in 2022, a 60.6% increase from HKD 99 million in 2021[28]. - The group recorded cash inflow of approximately HKD 815,000,000 from pre-sales and sales of various properties in mainland China[95]. - The group invested approximately HKD 1,852,000,000 in project development in Hong Kong and mainland China during the year[95]. Risk Management - The group is facing risks related to property development, including local market conditions and overall economic environment, which may be adversely affected by COVID-19 and geopolitical tensions[87]. - The group has established a risk management and internal control system to continuously identify, monitor, and manage major risks and emerging risks[86]. - The group emphasizes the importance of attracting and retaining qualified employees, as key personnel shortages could impact business operations and future prospects[89]. - The group faces risks related to cybersecurity threats, which could lead to unauthorized access or damage to its computer systems and data[89]. - The group is exposed to financial investment risks, including default and liquidity risks, which may affect the market value of its investments[89]. Corporate Governance - The company has been adhering to the corporate governance code throughout the year ending December 31, 2022, except for the provision C.2.1, which suggests that the roles of chairman and CEO should be separate[104]. - The board emphasizes the importance of high-quality governance as a key factor for sustainable long-term success[103]. - The company has implemented various policies to ensure ethical conduct and responsibility among its directors, management, and employees[108]. - The board consists of experienced individuals with backgrounds in real estate development, finance, and law, enhancing the company's governance[101]. - The company has a management team with extensive experience in finance, accounting, and corporate planning, contributing to its strategic direction[102]. Sustainability and Social Responsibility - The group has committed to high standards of environmental protection, implementing measures to reduce community impact and improve sustainability performance since 2007[91]. - The group has established a waste recycling system and participates in various recycling programs, demonstrating efforts to promote sustainability awareness[91]. - The latest residential development project, "Hainz Garden," incorporates a "fully electric home" design and has achieved provisional bronze certification under the BEAM Plus New Buildings (Version 1.2)[91]. - The group has provided 20 housing units to underprivileged families as part of its support for the social housing program in 2022[91]. - The group has received multiple awards for its properties, including energy-saving and waste reduction certifications, highlighting its commitment to corporate social responsibility[91]. Audit and Compliance - The audit committee, along with independent auditors, has reviewed the consolidated financial statements for the year ended December 31, 2022[184]. - The consolidated financial statements have been audited by KPMG, and the auditor's report confirms that the financial statements present a true and fair view of the group's financial position[187]. - The company is responsible for preparing true and fair consolidated financial statements in accordance with Hong Kong Financial Reporting Standards and the Companies Ordinance[196]. - The auditor's goal is to obtain reasonable assurance that the consolidated financial statements are free from material misstatement due to fraud or error[197]. - The company must disclose any significant uncertainties related to its ability to continue as a going concern[198].
九龙建业(00034) - 2022 - 年度财报