Financial Performance - Revenue for 2022 was HK$36,381,000, a slight decrease of 0.3% compared to HK$36,492,000 in 2021[10]. - Loss attributable to owners increased by 118% to HK$27,266,000 from HK$12,491,000 in the previous year[10]. - Basic and diluted loss per share both rose to HK$8.36, up 118% from HK$3.83 in 2021[10]. - Total equity decreased by 9% to HK$280,928,000 from HK$308,280,000 in 2021[10]. - Net asset value per share fell by 9% to HK$0.86 from HK$0.95 in the previous year[10]. - Total assets as of December 31, 2022, were HK$530,725,000, down from HK$547,198,000 in 2021[20]. - Total liabilities increased to HK$249,797,000 from HK$238,918,000 in 2021[20]. - The Group's net loss increased by 91% to approximately HK$27,333,000, influenced by various factors including a fair value loss on financial assets of HK$11,410,000 and an unrealized RMB exchange loss of HK$7,735,000[22][24]. Revenue Sources - Total revenue decreased by approximately 0.3% to HK$36,381,000, despite a 20% increase in hospitality services income, due to losses in the hair styling business and reduced rental income from investment properties[26][30]. - Gross profit for the year increased approximately 37% to HK$17,461,000, primarily due to reduced depreciation on right-of-use assets in the hospitality business segment[26][30]. - Other income rose by 86% to HK$13,438,000, mainly from a gain on the disposal of warehouse property of HK$7,462,000 and increased government subsidies of HK$2,022,000[27][31]. - Total rental income from Hong Kong and Macau investment properties decreased by approximately 11% to HK$3,821,000, attributed to vacancy periods and rental concessions[32][35]. - Rental income from Hong Kong properties decreased by approximately 4% to HK$1,374,000, with an investment yield of about 5%[36]. - Macau property rental income decreased by approximately 15% to HK$2,447,000, resulting in an average yield of about 4%[37]. - Turnover from the hair styling business decreased by approximately 8% to HK$15,085,000, with a net loss increasing to HK$295,000[40]. - Hospitality service business turnover increased by 20% to HK$14,437,000, with segment profit of HK$3,721,000[46]. Costs and Expenses - Finance costs increased by HK$2,253,000 due to rising HIBOR interest rates during the year[28][31]. - Administrative expenses increased by HK$7,233,000 to HK$36,369,000, largely due to an unrealized exchange loss on RMB deposits of HK$7,735,000[28][31]. - The valuation loss on investment properties was HK$2,800,000, increasing the segment loss to HK$7,076,000, with total valuation dropping to HK$128,200,000 as of year-end 2022[32][35]. - Total staff costs for the year ended December 31, 2022, amounted to approximately HK$11,710,000, a decrease from HK$12,512,000 in 2021[77][81]. Market Conditions - The US Federal Reserve raised interest rates by a total of 450 basis points in 2022 to combat inflation, which peaked at 9.1% year-on-year in June 2022[21]. - The company faced higher financial costs due to the high interest environment and incurred unrealized exchange losses from substantial RMB deposits[21]. - The ongoing geopolitical tensions, including the Russian-Ukraine war, contributed to rising energy prices and inflationary pressures globally[21]. - The outlook for 2023 is expected to be more stable with a projected GDP growth of approximately 3.5% in Hong Kong and up to 44% in Macau following significant economic disruptions due to the pandemic[84][86]. Strategic Initiatives - The Group plans to implement renovation plans for existing hotel properties with a focus on sustainability to maintain competitive advantage[54]. - The Group has resumed exploring project plans that were on hold due to the pandemic, including the addition of a boutique hotel in Yau Ma Tei to its hospitality portfolio[90]. - The company plans to introduce new branded products to increase sales and is optimistic about the government's new Consumption Voucher Scheme boosting product sales[49]. - The Group is considering leveraging technology to address hiring challenges in a tight labor market, allowing staff to focus more on customer service[90]. Corporate Governance and Compliance - The company is committed to corporate governance and compliance with the Listing Rules[158]. - The Group has complied with all relevant laws and regulations impacting its operations during the year[102]. - The company has a diverse board with extensive experience in various sectors, including finance, marketing, and hotel management[167][174][175][176][177]. Shareholder Information - 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 as of the date of the annual report[119]. - The company has not disclosed any other interests or short positions in shares by its Directors and Chief Executives as of the reporting date[196]. - The largest customer accounted for 4% of the Group's sales, while the five largest customers combined represented 10% of total sales[146][148]. - The largest supplier constituted 41% of the Group's purchases, and the five largest suppliers combined accounted for 89% of total purchases[146][148].
世纪建业(00079) - 2022 - 年度财报