Financial Performance - The company reported a significant annual loss attributable to shareholders of HKD 906 million, compared to a profit of HKD 1,007 million in the previous year, primarily due to unrealized losses from financial investments and additional provisions for expected credit losses [30]. - Total revenue for the year was HKD 2,789 million, reflecting a 2% increase from HKD 2,740 million in the previous year [26]. - The group recorded revenue of HKD 2,789 million for the fiscal year, compared to HKD 2,740 million in the previous year, while the loss attributable to shareholders was HKD 906 million, down from a profit of HKD 1,007 million in the prior year [39]. - The company reported a significant operating loss of HKD 1,288 million, compared to an operating profit of HKD 2,185 million in the previous year [87]. - The net loss attributable to shareholders was HKD 906 million, a decline from a profit of HKD 1,007 million in the prior year [87]. - The gross profit for the same period was HKD 2,707 million, slightly up from HKD 2,674 million, indicating a marginal increase of 1.2% [87]. Assets and Liabilities - The company's total assets decreased by 18% to HKD 39,520 million from HKD 48,565 million year-on-year [26]. - The net asset value dropped by 27% to HKD 20,051 million, down from HKD 27,448 million in the previous year [26]. - The revalued total assets decreased by 16% to HKD 45,223 million from HKD 54,091 million [26]. - Total liabilities were reported at HKD 19,469 million, down from HKD 21,117 million, showing a decrease of about 7.8% [87]. - The asset-liability ratio increased to 62% from 47%, indicating a 15% rise in financial leverage [26]. - The group’s net debt ratio was approximately 62%, compared to 47% in the previous year [2]. Investment and Development Projects - The company plans to launch two new development projects by the end of 2022, including a luxury residential project with 16 units overlooking Victoria Harbour and a large public housing project in Hong Shui Bridge [30]. - Contract sales for the residential development project in Tongzhou, Beijing, reached RMB 4.5 billion by the end of the fiscal year [30]. - The group increased its stake in a residential development project in Beijing Tongzhou from 10% to 50%, with contract sales amounting to RMB 1.5 billion during the year [44]. - The redevelopment of the Empire Landmark Hotel in Canada is progressing well, with contract sales amounting to approximately CAD 180 million as of March 31, 2022 [50]. - The company has ongoing projects with significant land areas, including a site in Beijing with a total floor area of approximately 2,360,000 square feet, expected to be completed in 2022 [84]. Rental and Hotel Business - Rental income decreased by 9% over the past year, while the hotel business is expected to recover as travel restrictions ease [31]. - The group owns and operates five "Royal" brand hotels located in prime areas of Hong Kong, targeting business travelers and visitors from mainland China, maintaining high occupancy rates due to competitive pricing [36]. - Revenue from the hotel and tourism segment increased by 104% to HKD 76,000,000, up from HKD 37,000,000 in the previous year [1]. Financial Management and Strategy - The group is focused on prudent financial management to maintain a strong financial position and reasonable levels of debt-to-equity ratio [37]. - The company is adopting a prudent financial approach to mitigate any negative impacts in the current uncertain economic environment [73]. - The company has hedged half of its borrowings through interest rate swap agreements, mitigating the financial cost impact from rising rates [72]. Environmental and Social Governance (ESG) - The company has engaged stakeholders through various communication channels, including annual meetings and reports, to understand their expectations and concerns regarding ESG issues [101]. - The company has implemented various environmental measures in its hotel operations, including a plan to reduce the frequency of changing bed linens to conserve water [113]. - The company aims to achieve green building certification for its projects by incorporating sustainable design and construction practices [112]. - The company has not faced any penalties for violations of environmental protection regulations during the reporting year [104]. - The company is actively identifying and analyzing climate change risks and opportunities to reduce carbon emissions [116]. Corporate Governance - The board consists of six executive directors and three independent non-executive directors, with the chairman and CEO being different individuals [163]. - The board held four meetings during the year, with all members actively participating in governance and oversight [167]. - The company has implemented a corporate governance policy and regularly reviews its effectiveness and compliance [164]. - The audit committee held two meetings during the year to review the annual and interim financial statements and assess the effectiveness of the internal audit function [181]. - The company has established a risk management framework to achieve its business objectives, with the board responsible for evaluating acceptable risk levels [181]. Employee and Community Engagement - The company employed approximately 360 staff as of March 31, 2022, an increase from 330 in 2021 [70]. - The total number of employees is 357, with 191 males and 166 females [128]. - The company donated a total of HKD 542,000 to various charitable organizations during the reporting year [158]. - The company has a strong commitment to equal employment opportunities and does not discriminate based on personal characteristics [117]. - The company encourages the use of recycled paper and energy-saving practices in its operations [120].
汇汉控股(00214) - 2022 - 年度财报