Risk Management and Internal Control - The audit committee confirmed that the risk management and internal control systems are sufficient and effective as of March 2023[1]. - The group has established a risk management and internal control system aimed at identifying and managing risks associated with achieving business objectives[93]. - The board is responsible for overseeing the risk management and internal control systems to ensure effective communication of core values and operational guidelines throughout the group[95]. - The internal audit function reviewed the adequacy and effectiveness of the group's risk management and internal control systems, focusing on financial, compliance, and operational functions[98]. - The board conducts annual reviews of the effectiveness of the risk management and internal control systems, covering all significant monitoring aspects[113]. - The audit committee assists the board in reviewing the risk management and internal control systems to ensure effective monitoring is in place[114]. - The internal control function evaluates the effectiveness of the risk management and internal control systems annually and provides recommendations based on identified risks[114]. - The group has a structured risk management framework involving the board, audit committee, management, and internal control functions[114]. Environmental, Social, and Governance (ESG) Initiatives - The environmental, social, and governance (ESG) report covers the fiscal year 2022, with comparative figures from fiscal year 2021[5]. - The board of directors is responsible for overseeing the implementation of the ESG strategy and ensuring compliance with relevant laws and regulations[15]. - The group has established an ESG working group to assist in formulating and implementing ESG strategies and policies[15]. - The report emphasizes the importance of integrating ESG principles into the risk management system for sustainable business practices[14]. - The group has engaged an external consultant for limited assurance on the ESG report[12]. - The board will review the progress of ESG-related goals and indicators at least once a year[16]. - The report adheres to the guidelines set forth by the Hong Kong Stock Exchange for ESG reporting[6]. - The company identified 23 key sustainability topics impacting its operations, focusing on environmental, social, and governance (ESG) issues[20]. - Stakeholder feedback was collected through an online survey to prioritize the importance of selected ESG topics, resulting in a matrix that highlights high-importance themes[22]. - The board has reviewed and validated the importance assessment process, ensuring transparency in the company's ESG performance reporting[24]. - The company emphasizes the significance of stakeholder engagement for long-term development and success, maintaining communication channels with various stakeholders[29]. - The company aims to reduce its emissions by 10% by the fiscal year 2032, using the fiscal year 2022 as a baseline[130]. - The company has recognized the importance of environmental, social, and governance (ESG) trends for long-term sustainability and has established an ESG team to develop compliance strategies[121]. Board Composition and Governance - The board consists of at least three independent non-executive directors, ensuring compliance with independence standards[33]. - Independent non-executive directors must confirm their independence annually and notify the company of any changes affecting their independence[35]. - The board meets at least four times a year, with most directors attending in person or via electronic communication[37]. - The company has established mechanisms to ensure the board receives independent viewpoints and opinions on governance matters[36]. - The board has established multiple committees, including the audit committee, remuneration committee, and nomination committee, to oversee various governance aspects[47]. - The board consists of one female director and eight male directors, with a commitment to gender diversity as a key factor in selecting suitable candidates[58]. - The nomination committee reviewed the board's structure and composition, suggesting re-election of retiring directors and assessing the independence of all independent non-executive directors[52]. - The company’s governance practices include regular communication with stakeholders and adherence to legal and regulatory compliance[47]. - The company’s board diversity policy aims to ensure a balanced representation of skills, knowledge, and experience among its members[53]. - The company has implemented a diversity policy for board members, considering various factors such as gender, age, and professional experience[81]. Financial Performance and Risk - The group generated approximately 83% of its revenue from operations in Hong Kong during the reporting period[10]. - The group faces medium-level financial risks, including interest rate risk and liquidity risk, with measures in place to monitor financial market conditions and maintain sufficient cash and available funds[100]. - The group has implemented prudent liquidity risk management and maintains good relationships with banks to ensure adequate financing[100]. - The audit committee is responsible for reviewing the financial statements and assessing the effectiveness of the company's internal control systems[49]. - The board is committed to preparing financial statements that accurately reflect the company's financial position, adhering to applicable accounting standards and regulations[83]. Sustainability and Environmental Impact - The company aims to continuously improve its environmental performance by adhering to strict environmental regulations and enhancing operational sustainability[41]. - The company is committed to providing quality services in a clean and sustainable manner, focusing on reducing emissions and waste while conserving energy and water resources[41]. - The total greenhouse gas emissions for the fiscal year 2022 amounted to 5,298.1 tons of CO2 equivalent, an increase from 4,248.7 tons in 2021, representing a growth of approximately 24.7%[132]. - The company has emitted 36.9 kg of nitrogen oxides, 0.6 kg of sulfur oxides, and 2.1 kg of particulate matter during the reporting year[130]. - The company has implemented measures to mitigate risks associated with regulatory requirements, including mandatory inspections and safety improvements[122]. - The group has implemented measures to reduce energy consumption, including the installation of energy-efficient lighting and regular monitoring of electricity usage[157]. - The group has set a target to reduce total waste by 10% by the fiscal year 2032, using the fiscal year 2022 as a baseline[150]. - The group has begun to incorporate climate change risks and opportunities into its business strategy, conducting annual corporate risk assessments[181]. Employee Engagement and Workplace Culture - The group has a total of 244 employees, with 102 females and 142 males, and 238 full-time employees compared to 6 part-time employees[190]. - The employee turnover rate for the group is 43%, with male turnover at 39% and female turnover at 47%[196]. - The company adheres to a strict non-discrimination policy, ensuring equal opportunities regardless of age, gender, marital status, and other factors[194]. - The company provides competitive compensation and benefits, including medical coverage and various paid leave options[193]. - The group has implemented safety policies and procedures to ensure a safe working environment, including emergency fire equipment and safety guidelines[200]. - The employee handbook is regularly reviewed and updated to comply with labor laws and regulations, ensuring transparency in employee rights and responsibilities[192]. - The company emphasizes a fair and open recruitment and promotion process, recognizing employee contributions and performance[193].
大生地产(00089) - 2022 - 年度财报