HK FERRY (HOLD)(00050)2023-04-21 12:49Financial Performance - The group's net profit after tax for the year ended December 31, 2022, was approximately HKD 1.299 billion, an increase of about 999% compared to the same period in 2021[1]. - Earnings per share for the year was HKD 3.65, compared to HKD 0.33 in 2021[1]. - The company's revenue for 2022 was HKD 281 million, representing a 15% increase from HKD 244 million in 2021[25]. - Shareholders' profit attributable to the company surged to HKD 1,299 million, a remarkable increase of 999% compared to HKD 118 million in the previous year[25]. - The total dividend declared for the year was HKD 445 million, marking a 400% increase from the previous year[25]. - Shareholders' equity rose to HKD 7,218 million, reflecting a 20% growth from HKD 6,005 million in 2021[25]. - Basic earnings per share increased to HKD 3.65, a 999% rise from HKD 0.33 in the prior year[25]. - The dividend payout ratio improved to 2.9 times, up 123% from 1.3 times in the previous year[25]. - Return on equity reached 18.0%, an increase of 800% from 2.0% in 2021[25]. Dividends and Shareholder Returns - The board proposed a final dividend of HKD 0.15 per share for the year ended December 31, 2022, consistent with the previous year, and a special dividend of HKD 1.00 per share, which was not paid in 2021[2]. - The group plans to distribute a final dividend of HKD 0.15 per share for the year ending December 31, 2022, consistent with the previous year[101]. Property and Revenue Generation - The rental income from commercial properties was approximately HKD 113 million for the year[38]. - The joint venture project "Imperial Court" successfully delivered 1,738 residential units, contributing to the company's revenue[28]. - The group has delivered 1,738 residential units from the "Empire" project, generating recognized revenue from property sales[39]. - The "Ying On" redevelopment project will provide approximately 100,698 square feet of residential floor area, with interior decoration currently in progress and expected completion in early 2024[39]. - The group anticipates that rental income from shops and malls will be a major source of revenue in 2023, following the revenue recognition from the "Empire" residential units[42]. - The group's revenue for the year was approximately HKD 281 million, representing a 15% increase compared to the previous year, primarily due to increased property sales, leasing, and interest income[72]. Losses and Challenges - The ferry and shipyard business recorded a loss of HKD 5.4 million, a decline from a profit of HKD 8.6 million in the previous year, primarily due to the lack of government subsidies for maintenance and repair costs[39]. - The group incurred a loss of HKD 16.9 million from securities investments due to fluctuations in the fair value of certain financial assets[39]. Corporate Governance and Risk Management - The company has established an audit committee consisting of four independent non-executive directors to oversee risk management and internal controls[61]. - The internal audit department has adopted a risk-based approach in its annual audit plan, assessing the effectiveness of the risk management and internal control systems as of December 31, 2022[67]. - The company is committed to continuous evaluation of its risk management processes and has shared key audit findings with the internal risk management team[67]. - The board of directors includes experienced members with extensive backgrounds in banking and real estate development, enhancing corporate governance[55]. - The company has a proactive strategy for identifying and managing risks related to achieving organizational goals[66]. - The company is focused on maintaining effective and sufficient risk management and internal control systems, as confirmed by the audit committee[67]. - The company has a clear governance structure with designated committees for nominations, remuneration, and audit, ensuring accountability[60]. Employee and Training Initiatives - The total employee cost for the year was approximately HKD 99 million, with around 250 employees, an increase from 200 employees in the previous year[75]. - The group provided approximately 4,344 training hours for employees during the year, with 20% of training focused on safety-related topics[89]. Environmental and Social Responsibility - The group aims to reduce greenhouse gas emissions by 30% by 2030 compared to the 2021 baseline, in response to climate change challenges[83]. - The group installed a third rainwater collection system during the year, which will be used for vehicle washing, floor cleaning, and irrigation[86]. - The group successfully avoided 1,924 liters of wastewater from being discharged into the harbor through its onshore sewage treatment system in the ferry business[86]. - The group has maintained a high level of business ethics, considering the needs of stakeholders to sustain positive long-term partnerships[87]. - The total charitable donations made by the group during the year amounted to HKD 18,725, an increase from HKD 14,340 in the previous year[103(A)]. Shareholding and Ownership Structure - As of December 31, 2022, the major shareholder, 恒基兆業地產有限公司, holds 119,017,090 shares, representing approximately 33.41% of the total issued shares[122]. - 李寧先生 holds 119,017,090 shares, which is 33.41% of the total issued shares, and is considered a major shareholder due to family trust arrangements[124]. - The company has a total of 119,017,090 shares held by multiple entities, indicating significant ownership concentration[123]. Board Composition and Diversity - The board consists of 8 male directors and 1 female director, achieving gender diversity with males representing approximately 89% and females 11%[1]. - The company has a total of 248 employees, with male employees making up 68% and female employees 32%[1]. - The board diversity policy was approved in August 2013 and revised in December 2018, focusing on gender, age, professional experience, and ethnicity[1]. - The nomination policy aims to identify and assess candidates for board positions, ensuring a diverse range of skills and experiences[1]. Compliance and Transparency - The company has established appropriate insurance coverage for potential legal claims against its directors and senior management[120]. - The board of directors' remuneration details are included in the financial statements, ensuring transparency in compensation[107]. - The company has not entered into any significant transactions or arrangements that would provide substantial benefits to its directors outside of disclosed related party transactions[107]. - The company maintains a register of interests in shares as required by the Securities and Futures Ordinance[108]. - The company has a clear governance structure with independent confirmations of director independence as per listing rules[107]. Audit and Financial Oversight - The Audit Committee is responsible for reviewing annual and interim results, overseeing financial reporting standards, and discussing financial reports with external auditors[196]. - The Audit Committee supervises the effectiveness of the group's risk management and internal control systems, including accounting and reporting functions[196]. - The Audit Committee held two meetings during the year, reviewing the annual performance and financial statements for the year ended December 31, 2021, and providing recommendations to the board[189].