MELBOURNE ENT(00158)2022-12-29 04:17Financial Performance - The group reported a loss of HKD 127.4 million for the fiscal year ending September 30, 2022, compared to a profit of HKD 66.9 million in 2021, primarily due to an increase in fair value losses on investment properties[54]. - Fair value losses on investment properties amounted to HKD 220.8 million in 2022, up from HKD 16.3 million in 2021[54]. - Revenue for the year ended September 30, 2022, was HKD 158,707,000, a decrease of 1% from HKD 160,423,000 in 2021[95]. - Total comprehensive loss attributable to shareholders for the year was HKD 136,557,000, compared to a comprehensive income of HKD 78,849,000 in 2021[95]. - Basic and diluted loss per share was HKD (5.10), a decline from earnings of HKD 2.67 per share in the prior year[95]. - The company reported a pre-tax loss of HKD 109,283,000 for 2022, compared to a profit of HKD 82,879,000 in 2021[166]. - The group declared dividends totaling HKD 90,000,000, down from HKD 115,000,000 in the previous year[101]. Revenue and Income Sources - Total revenue, including rental and service fee income from Hong Kong investment properties, was HKD 158,707,000 in 2022, down from HKD 160,423,000 in 2021[155]. - Rental income for property investment decreased to HKD 140,864,000 in 2022 from HKD 142,656,000 in 2021, a decline of approximately 1.25%[155]. - The contribution to profit before tax from property investment leasing business increased to HKD 111,517,000 in 2022, up from HKD 99,179,000 in 2021, representing an increase of about 12.5%[155]. - Bank interest income rose to HKD 973,000 in 2022 from HKD 457,000 in 2021, an increase of approximately 113%[156]. Dividends and Shareholder Returns - The group reported a total revenue of HKD 45,000,000 for the interim dividend, with a proposed final dividend of HKD 1.8 per share, totaling HKD 45,000,000[11]. - The company has maintained a consistent dividend policy, reflecting its stable financial position and commitment to shareholder returns[11]. - The company declared an interim dividend of HKD 1.80 per share, consistent with the previous year[195]. Assets and Liabilities - Non-current assets decreased to HKD 7,403,694,000 from HKD 7,631,967,000, primarily due to a reduction in investment properties[96]. - Current assets slightly decreased to HKD 253,877,000 from HKD 259,219,000, with cash and bank deposits at HKD 244,429,000[96]. - Total liabilities decreased to HKD 49,426,000 from HKD 56,517,000, reflecting a reduction in accounts payable and accrued expenses[96]. - The fair value of investment properties decreased to HKD 7,282,700,000 in 2022 from HKD 7,503,500,000 in 2021[170]. Corporate Governance - The board of directors includes experienced members with extensive backgrounds in finance and property management, enhancing corporate governance[3][4][7]. - The independent non-executive directors confirmed that the related party transactions are part of the company's ordinary course of business and are conducted on normal commercial terms[20]. - The company has not disclosed any significant transactions or contracts involving directors or their related entities during the year[16]. Environmental, Social, and Governance (ESG) Initiatives - The board emphasizes the importance of integrating ESG considerations into business decisions and regularly assesses ESG-related risks[61]. - The group has implemented energy-saving measures in its properties, including high-efficiency cooling systems and LED lighting, to reduce greenhouse gas emissions[64]. - Total greenhouse gas (GHG) emissions decreased to 3,405 metric tons CO2 equivalent in 2021/22 from 3,570 metric tons in 2020/21, representing a reduction of approximately 4.6%[70]. - The company has established an emergency plan to manage climate risks associated with extreme weather events, aiming to minimize operational disruptions and financial losses[68]. Risk Management - The Board is satisfied with the effectiveness of the internal control system and has implemented measures for risk management, including identifying and assessing significant business risks[49]. - The group adopts a conservative approach to monitor financial risks to minimize potential adverse impacts on financial performance[140]. - The group regularly reviews overdue accounts to minimize credit risk and adjusts expected credit losses based on economic conditions and historical loss experiences[142]. Employee and Supplier Relations - Employee satisfaction remains high, with low turnover rates reported during the reporting period[72]. - The company continues to support employee professional development through training subsidies and flexible work arrangements[74]. - The company has 8 suppliers, all located in Hong Kong, maintaining a consistent supply chain[81]. Audit and Compliance - The independent auditor has issued an unqualified opinion on the related party transactions disclosed by the company[20]. - The financial statements were audited by PwC, who are willing to continue their engagement[35]. - The audit found sufficient evidence supporting management's valuation of investment properties, indicating no significant misstatements[87].