2022-04-26 08:53Financial Performance - The company reported a comprehensive income of HKD 100 million for the year, representing a 20% increase compared to the previous year[1]. - The Group reported a loss attributable to owners of HK$3,515.3 million for the year, compared to a profit of HK$622.2 million in the previous year, marking a significant decline in performance[27][30]. - Loss per share for the year was HK$1.84, a decrease from earnings per share of HK$0.33 in 2020[27][30]. - Core loss attributable to owners of the Company was HK$2,118.6 million, compared to a core profit of HK$2,227.3 million in the previous year[28]. - Revenue for the year ended December 31, 2021, amounted to HK$1,299.8 million, a decrease of 57.3% compared to HK$3,041.5 million in 2020[97]. - Gross profit for the year was HK$1,017.4 million, reflecting a decrease of 65.6% from HK$2,961.5 million in the previous year[98]. - Total rental income decreased by 12.4% to HK$327.3 million, down from HK$373.5 million in 2020, primarily due to the surrender of a lease by an anchor tenant[99]. - The Group recorded a net loss from securities investments of HK$1,995.5 million, compared to a gain of HK$2,068.7 million in 2020[109]. - The total profit from listed equity investments at fair value through other comprehensive income (FVTOCI) was HK$150.0 million in 2021, a decrease from HK$1,936.3 million in 2020[126]. Investment Strategy and Market Outlook - The company expects a revenue growth of 10% for the upcoming fiscal year, driven by new product launches and market expansion strategies[1]. - The company plans to expand its market presence in Southeast Asia, targeting a 30% increase in market share within the next two years[1]. - The Group's future investment strategy focuses on a diversified portfolio to minimize risks while maintaining a healthy financial status[55]. - The economic outlook for 2022 is clouded by risks including the spread of the Omicron variant, supply-chain challenges, and inflationary pressures[83]. - The stock market is likely to be volatile in the short term due to uncertainties surrounding US monetary policy and geopolitical tensions[90]. - The Group will maintain a cautious stance towards global risks and uncertainties while seeking new opportunities[91]. Board and Governance - Ms. Chan Hoi-wan has been appointed as the CEO since February 17, 2021, and has over 3.5 years of experience in the media industry[9]. - Mr. Lau Ming-wai has been the Chairman of the Board since 2014 and holds a Doctorate in Philosophy in Laws from King's College London[11]. - The company has a diverse board with members holding degrees from prestigious institutions such as King's College London and The University of Hong Kong[11][16]. - The board includes members with extensive experience in law, finance, and management, enhancing corporate governance[11][13][17]. - The company emphasizes the importance of independent directors in its governance structure[16]. - The board composition reflects a mix of executive, non-executive, and independent non-executive directors, ensuring a balanced approach to decision-making[12][15]. Property and Investment Performance - The Group's core businesses include property investments for rental, property development, and securities investments[36]. - The average occupancy rate of Causeway Place shops was approximately 96.97% during the year[42]. - The average occupancy rate of Olympian City 3 was approximately 94.74% during the year[42]. - The average occupancy rate of Coronation Circle was approximately 60.27% during the year[43]. - The average occupancy rate of Harcourt House was approximately 74.84% during the year[43]. - The Group recorded an unrealised loss on fair value changes of investment properties amounting to HK$1,376.6 million during the year[78]. - The total valuation of the Group's investment properties decreased by 9.5% to HK$13,292.2 million in 2021 from HK$14,373.3 million in 2020, with a fair value decrease of HK$1,376.6 million recognized in the consolidated statement of comprehensive income[196]. Financial Position and Debt Management - The Group's total debt amounted to HK$5,515.2 million, a decrease from HK$7,389.0 million in 2020[174]. - The Group's cash and deposits at banks increased to HK$2,479.9 million in 2021 from HK$1,654.5 million in 2020[174]. - The total debt to equity ratio (including lease liabilities) rose to 38.3% in 2021 from 25.7% in 2020, primarily due to a decrease in total equity[175]. - The Group's net debt (including lease liabilities) decreased to HK$2,757.8 million in 2021 from HK$5,474.0 million in 2020[174]. - The Group's bank borrowings as of December 31, 2021, totaled HK$5,455.5 million, with 66.8% repayable within one year[181]. Challenges and Risks - The COVID-19 pandemic has led to a significant drop in rental income, primarily due to the surrender of lease by an anchor tenant in the UK[78]. - Inbound tourism in Hong Kong remains virtually at a standstill, constraining economic recovery and putting pressure on rental levels and occupancy rates[85]. - The Group's investment properties are expected to face numerous challenges in the short run due to strict social-distancing measures and vaccine pass requirements[87]. - The UK economy is experiencing pressures from inflation, labor shortages, and supply chain bottlenecks, affecting growth prospects[89]. - The overall performance of the company's securities investments was adversely affected by the decline in the real estate sector in China, particularly impacting the valuation of Evergrande Shares[127].