Financial Performance - The company's profit attributable to shareholders for the year ended December 31, 2021, was HKD 66,000,000, an increase of HKD 268,000,000 compared to a loss of HKD 202,000,000 in 2020[7][9]. - Total revenue increased by 40% from HKD 235,072,000 in 2020 to HKD 329,290,000 in 2021, driven by a 54% increase in hotel operating income[11][12]. - Hotel operating income rose to HKD 284,082,000 in 2021 from HKD 183,859,000 in 2020, attributed to increased room rates, occupancy rates, and food and beverage income[11][12]. - The company reported a profit before tax of HKD 73,868,000, a turnaround from a loss of HKD 203,925,000 in 2020[88]. - Net profit for the year was HKD 65,599,000, compared to a loss of HKD 201,710,000 in the prior year[88]. - Basic earnings per share for the year was HKD 0.73, recovering from a loss of HKD 2.25 in 2020[88]. - Gross profit for the year was HKD 49,104,000, compared to HKD 8,778,000 in the previous year, indicating a significant improvement[88]. Revenue and Occupancy - The average occupancy rates for the hotels ranged from 74% to 97% across different properties in 2021[13]. - The tourism market in Hong Kong saw a 97.4% decline in overseas and Chinese tourist arrivals, with most hotels and retailers experiencing over a 90% drop in revenue[21]. - The hotel division's revenue margin is projected to be between 35% to 40% of total revenue[63]. - The group operates eight revenue-generating hotels, with six located in Hong Kong, one in Shanghai, and one in London, alongside the renovation project in London[23]. Expenses and Costs - The service costs for the group increased to HKD 165,400,000 in 2021 from HKD 138,200,000 in 2020, due to the absence of government subsidies to offset salary expenses[14]. - Administrative expenses (excluding depreciation) were HKD 31,000,000 in 2021, slightly up from HKD 30,000,000 in 2020[14]. - Management anticipates continued challenges in the hotel and retail sectors due to the ongoing impact of COVID-19, with low occupancy rates and high operational costs expected to persist[23]. Debt and Financial Position - The overall debt of the group as of December 31, 2021, was HKD 504 million, an increase of HKD 23 million (4.8%) from HKD 481 million in 2020[16]. - Bank loans decreased by HKD 37 million (10.7%) to HKD 310 million in 2021, while shareholder loans increased by HKD 60 million (44.8%) to HKD 194 million[17]. - Total interest expenses for the year were HKD 6.5 million, down from HKD 8.3 million in 2020, primarily due to a reduction in interest rates[17]. - The company reported a net current liability of HKD 297,011,000, worsening from HKD 124,074,000 in 2020[92]. Governance and Management - The company has adopted the corporate governance code as per the Hong Kong Stock Exchange's listing rules, ensuring compliance with all provisions except for specific deviations noted[27]. - The board consists of nine directors, including five executive directors, one non-executive director, and three independent non-executive directors, with two independent directors possessing appropriate professional qualifications or relevant financial management expertise[28]. - The company has established a training and continuous professional development program for directors and senior management[32]. - The board is responsible for evaluating and determining the nature and extent of risks, ensuring effective risk management and internal control systems are maintained[36]. Shareholder Information - The company has established various communication channels with shareholders, including annual general meetings and briefings with investment analysts[50]. - The company’s retained earnings as of December 31, 2021, amounted to HKD 1,807,880,000, an increase from HKD 1,772,277,000 in 2020[51]. - The board does not recommend the payment of a final dividend for the year ending December 31, 2021, consistent with the previous year[51]. - The company has adopted a dividend policy aimed at providing stable and sustainable returns to shareholders, subject to various factors including financial condition and operational needs[50]. Investment and Property Management - The group acquired the Wood Street Police Headquarters in London for GBP 40 million, with plans to renovate it into a luxury hotel with approximately 216 rooms[22]. - The group owns approximately HKD 1,122,000,000 in investment properties located in Hong Kong and the UK as of December 31, 2021[69]. - The net fair value increase of investment properties recognized in the income statement for the year was approximately HKD 62,000,000[69]. - The carrying value of hotel properties as of December 31, 2021, is approximately HKD 2,340,000,000[26]. Risk Management - The company established a risk management committee in 2019, consisting of three executive directors, to oversee business, financial, and property asset management risks[37]. - The audit committee reviews the effectiveness of the risk management and internal control systems and reports to the board[37]. - The group conducted a going concern assessment, considering the ongoing impact of COVID-19 and available liquidity sources, which supports the preparation of financial statements on a going concern basis[125]. Accounting and Financial Reporting - The group adopted revised Hong Kong Financial Reporting Standards, which became mandatory this year, with no significant impact on the financial position and performance for the current and prior years[109]. - The consolidated financial statements are prepared based on historical cost, except for investment properties and certain financial instruments measured at fair value[126]. - The group recognizes rental income from operating leases on a straight-line basis over the lease term[152]. - Financial assets are classified and measured at amortized cost if held to collect contractual cash flows and cash flows solely represent payments of principal and interest[168].
华大酒店(00201) - 2021 - 年度财报