Financial Performance - The Group's revenue increased by approximately 3% to HK$36,492,000 in 2021, driven by the full-year operation of the North Point guesthouse, which contributed a 33% increase in its segment revenue[26] - The net loss attributable to the owners decreased by 48% to HK$12,491,000 in 2021, compared to HK$24,063,000 in 2020[12] - Basic and diluted loss per share improved by 48% to HK$3.83 in 2021 from HK$7.38 in 2020[12] - Total revenue increased by approximately 3% to HK$36,492,000, driven by the full-year operation of the North Point hotel, which contributed a revenue increase of about 33%[28] - The group's net loss decreased by 44% to approximately HK$14,312,000, attributed to a fair value gain of HK$900,000 from investment properties and a reduction in financing costs by HK$2,001,000[28] Assets and Liabilities - Total equity decreased by 4% to HK$308,280,000 in 2021 from HK$322,012,000 in 2020[12] - The Group's total assets as of December 31, 2021, were HK$547,198,000, down from HK$572,298,000 in 2020[23] - Total liabilities decreased to HK$238,918,000 in 2021 from HK$250,286,000 in 2020[23] - As of December 31, 2021, the group's net asset value was approximately HK$308,280,000, with total assets and total liabilities at approximately HK$547,198,000 and HK$238,918,000 respectively[31] - The Group's total borrowings amounted to HK$201,783,000, a decrease from HK$204,371,000 in 2020[127][131] Investment Properties - The Group experienced a fair value gain on investment properties of HK$900,000 in 2021, compared to no gain in 2020[25] - The valuation of investment properties increased by HK$900,000 to HK$131,000,000 during the year under review[33] - Total rental income from Hong Kong and Macau investment properties amounted to HK$4,303,000, an increase of approximately 1% compared to the previous year[32] - The average yield from Macau properties was recorded at about 5%, despite a 4% decrease in rental income to HK$2,827,000 due to vacancies and early termination of tenancies[37] - The group's Hong Kong investment properties achieved nearly 100% occupancy, supported by a resilient local residential market and modest price increases[38] Operational Performance - The property management segment experienced a substantial revenue drop, offsetting some of the gains from the guesthouse operations[26] - Turnover for the hospitality service segment increased by 33% to HK$11,982,000, but the segment loss rose to HK$5,635,000 due to increased operational costs and reduced rental concessions[48] - The hair styling business segment turnover increased by 7% to HK$16,314,000, but the net loss increased to HK$108,000 due to the absence of government subsidies and decreased rental concessions[43] - The occupancy rate of the two hostels averaged 90% in 2021, compared to 85% in the previous year, while the average room rate dropped by approximately 2%[49] Government Support and Subsidies - Government subsidies received decreased to HK$244,000 in 2021 from HK$2,167,000 in 2020[25] - Other income decreased by 37% to HK$7,212,000, primarily due to a reduction in government subsidies by HK$1,923,000 and a decrease in unrealized exchange gains on RMB deposits by HK$2,452,000[30] Digital Transformation and Initiatives - The Group is focusing on digital transformation initiatives, including contactless check-in and AI analytics, to enhance guest experience in response to changing customer demands[54] - The Group is exploring digital transformation initiatives, including non-contact check-in and AI systems, to enhance guest experience[57] Strategic Planning and Future Outlook - The Group is committed to Environmental, Social, and Governance initiatives, including waste and energy management, as part of its strategic priorities[54] - The Group anticipates that as the business environment in Hong Kong stabilizes, the prices of securities investments will gradually reflect their intrinsic value[56] - The Group is looking to capitalize on opportunities to convert Renminbi holdings to reap exchange gains amid increasing international trade demand[85] - The Group is exploring potential hotel operations in neighboring cities to mitigate reliance on a single geographical market[86] Share Capital and Governance - The Board of Directors did not recommend the payment of a final dividend for the year ended December 31, 2021, consistent with the previous year[76] - The total number of ordinary shares available for issue under the share option scheme is 29,347,742 shares, representing 9% of the issued share capital[116] - The maximum entitlement of each eligible participant under the share option scheme must not exceed 1% of the shares in issue in any 12-month period unless approved by shareholders[116] - The remaining life of the share option scheme is 7 years, expiring on May 29, 2029[118] Employee and Management Information - Total staff costs (excluding Directors' emoluments) for the year ended December 31, 2021, amounted to approximately HK$12,512,000, an increase from HK$11,396,000 in 2020[75] - Employee remuneration packages are reviewed annually based on performance appraisals and business performance, with additional benefits including medical insurance and performance-related bonuses[109] - The Company has a diverse management team with expertise across various sectors, including finance, human resources, and corporate affairs[179] Shareholder Information - The Group's largest customer accounted for 4% of sales, while the five largest customers combined represented 12% of total sales[140][143] - The largest supplier accounted for 38% of purchases, and the five largest suppliers combined represented 87% of total purchases[140][143] - The company has disclosed substantial shareholders' interests and short positions as required under Section 336 of the SFO[195]
世纪建业(00079) - 2021 - 年度财报