Economic Environment - The retail market sentiment in Hong Kong remained low for most of 2022 due to strict COVID-19 measures, with a slight improvement in Q2 and Q3 attributed to the government's consumption voucher scheme [9]. - The company faced significant impacts on its club operations due to the fifth wave of COVID-19, leading to a suspension of entertainment activities and reduced revenue [13]. - In 2022, central banks in developed markets, including the Federal Reserve, raised interest rates by a total of 425 basis points, resulting in a significant decline in both bond and stock markets, affecting the company's investment portfolio valuation [18]. - The company anticipates an economic recession in 2023, with high volatility expected in investments due to geopolitical tensions, and will continue to act prudently in managing its investment portfolio [19]. - The impact of COVID-19 on the company's operations remains uncertain, but strong liquidity and tight cost management are expected to support long-term prospects [34]. Financial Performance - As of December 31, 2022, the company's cash and non-pledged deposits amounted to HKD 125,529,000, an increase from HKD 111,064,000 on December 31, 2021 [33]. - Total borrowings and lease liabilities were HKD 5,882,000 and HKD 18,479,000 respectively, compared to HKD 7,001,000 and HKD 20,899,000 on December 31, 2021 [33]. - The company's debt-to-equity ratio was 2.1% as of December 31, 2022, down from 2.3% a year earlier [33]. - The current ratio remained strong at 17.5 times as of December 31, 2022, compared to 18.5 times on December 31, 2021 [33]. - The company has adopted a dividend policy that considers various factors including current and future operations, capital expenditure, and financial performance, without setting a predetermined dividend payout ratio [97]. Risk Management and Compliance - The company faces legal and compliance risks related to regulatory environments and has implemented appropriate risk management and compliance procedures [28]. - The company has adopted a prudent strategy to manage cash and foreign exchange risks, including the use of forward foreign exchange contracts [32]. - The board is responsible for a balanced and comprehensive assessment of the group's performance, condition, and prospects, with management providing monthly updates [49]. - The internal audit department independently reviews the adequacy and effectiveness of the group's governance, risk management, and internal control systems [60]. - The audit committee concluded that the group's risk management and internal control systems remain effective and sufficient [63]. - The company has established a whistleblowing policy for employees and external parties to report potential misconduct related to financial reporting and internal controls [54]. - The board ensures the maintenance of appropriate and effective risk management and internal control systems [51]. - The company complies with the Securities and Futures Ordinance and listing rules regarding disclosure requirements for financial instruments [74]. IT and Data Security - The company has implemented new IT security measures, including upgraded firewalls with zero-day protection and endpoint protection software to safeguard against cyber threats [22]. - The company has implemented a data security and privacy policy to protect sensitive customer information [45]. Corporate Governance - The remuneration of non-executive directors is determined by the board with reference to the recommendations of the remuneration committee [47]. - The company has not made any amendments to its articles of association during the year [75]. - The company is committed to maintaining integrity and ethical values, with the board operating independently from management [56]. - The audit committee supervises the external auditor's provision of audit and non-audit services, ensuring that non-audit services do not compromise the auditor's independence [82]. - The company conducts regular reviews and updates of its internal control and risk management systems, confirming their effectiveness to the board [80]. Corporate Social Responsibility (CSR) and Environmental Impact - The company has established a Corporate Social Responsibility (CSR) working group to oversee environmental and social matters, reporting directly to the board and led by the CEO [102]. - The CSR report covers the same scope as the previous fiscal year's report, including the Hong Kong fashion retail business operated by a subsidiary, with the reporting period from January 1, 2022, to December 31, 2022 [103]. - The company has adopted an environmental, social, and governance (ESG) policy to ensure its business operations consider environmental and social impacts [119]. - The board regularly reviews and approves the company's ESG strategies, priorities, goals, and related policies [119]. - The company emphasizes stakeholder engagement through various communication channels, including annual and interim reports [126]. - The company has established a corporate social responsibility (CSR) report that quantifies key environmental and social performance indicators [105]. - The company ensures that the data and calculation methods used in the CSR report are consistent with those from the previous year for comparability [106]. - Total greenhouse gas emissions for the year amounted to 766,988 kg CO2 equivalent, a decrease of 14.1% from 892,416 kg CO2 equivalent in the previous year [149]. - The company reported a total of 603,245 kg CO2 equivalent emissions from its operations, down from 719,271 kg CO2 equivalent in the previous year, reflecting a reduction of 16.2% [149]. - The direct emissions from the use of liquefied petroleum gas (LPG) were 64,649 kg CO2 equivalent, a decrease of 17.4% from 78,232 kg CO2 equivalent in the previous year [149]. - The company achieved a reduction in paper consumption emissions to 4,452 kg CO2 equivalent, down 35.1% from 6,859 kg CO2 equivalent in the previous year [148]. - The total emissions from purchased electricity were 44,391 kg CO2 equivalent, an increase of 1.4% from 43,760 kg CO2 equivalent in the previous year [148]. - The company has implemented measures to reduce energy, water, and paper consumption, as well as minimize waste generation [133]. - The company has committed to reducing its carbon footprint and has taken actions to mitigate global temperature rise through various operational measures [142]. - Total harmless waste decreased from 37,567 kg in 2021 to 24,930 kg in 2022, a reduction of approximately 33.8% [152]. - Energy consumption in the fashion retail business dropped from 192,310 kWh in 2021 to 126,874 kWh in 2022, a decrease of about 34% [158]. - Overall energy consumption density improved from 2.52 kWh per thousand revenue in 2021 to 1.78 kWh in 2022, reflecting a 29.3% increase in efficiency [158]. - Water usage in the headquarters decreased slightly from 60 cubic meters in 2021 to 57 cubic meters in 2022 [179]. - Total packaging material consumption was 3,746 kg in 2022, down from 3,788 kg in 2021, indicating a reduction of about 1.1% [180]. - Paper consumption at the headquarters fell from 1,429 kg in 2021 to 928 kg in 2022, a significant reduction of approximately 35% [182]. - The company continues to install energy-efficient lighting, with new retail stores exclusively using LED lighting [156]. - The overall harmless waste density improved from 0.34 kg per thousand revenue in 2021 to 0.26 kg in 2022, a 23.5% increase in efficiency [152]. - Diesel consumption in the fashion retail business was eliminated in 2022, compared to 2,325 liters in 2021 [158]. - The company emphasizes resource efficiency to reduce operational costs and environmental impact, aiming to decrease resource consumption at the same operational scale [177]. Employee Management and Development - The company has recognized the risk of talent retention and is committed to providing attractive compensation and training opportunities to suitable candidates [27]. - The total employee turnover rate decreased to 17.4% in 2022 from 23.2% in 2021 [196]. - The turnover rate for male employees dropped to 21.4% in 2022 from 30.6% in 2021, while for female employees it decreased to 15.3% from 19.4% [196]. - The percentage of employees receiving training was 88.4% in 2022, slightly down from 91.7% in 2021, with 107 employees trained [196]. - The average training hours per employee was 5.2 hours in 2022, compared to 5.4 hours in 2021 [196]. - The company has implemented a series of occupational health and safety policies to protect employee well-being [189]. - In 2022, the number of workdays lost due to work-related injuries was 161 days, compared to 13 days in 2021 [190]. - The company has a zero-tolerance policy towards workplace discrimination and harassment, ensuring compliance with relevant laws [187]. - The company provides various training and development opportunities to enhance employee skills and productivity [192]. - The company has maintained close communication with suppliers during the COVID-19 pandemic to minimize operational disruptions and ensure stable supply [198]. - The company sourced from 68 suppliers globally, with 49 from Europe, 8 from Japan, 6 from the UK, 3 from the US, 1 from mainland China, and 1 from Hong Kong [200].
安宁控股(00128) - 2022 - 年度财报