Financial Performance - For the year ended December 31, 2021, the company's profit attributable to shareholders was HKD 68 million, an increase of HKD 240 million compared to a loss of HKD 172 million in 2020[6]. - The overall profit increase for the year ended December 31, 2021, was primarily due to increased hotel revenue and revaluation gains[8]. - Total revenue for the year ended December 31, 2021, increased by 40% to HKD 329,290,000 from HKD 235,072,000 in 2020[9]. - The company reported a profit before tax of HKD 111,012,000 for 2021, compared to a loss of HKD 220,053,000 in 2020, indicating a significant turnaround[74]. - Basic earnings per share for the year was HKD 13.34, recovering from a loss of HKD 33.55 per share in the previous year[74]. - The total comprehensive income for the year was HKD 71,935,000, compared to a loss of HKD 236,238,000 in 2020, reflecting improved financial performance[76]. - The company reported a gross profit of HKD 172,418,000 for 2021, compared to HKD 120,183,000 in 2020, marking an increase of about 43.4%[74]. Revenue Sources - The group's hotel revenue for the year was HKD 346 million, representing a 59% increase from HKD 218 million in 2020[6]. - Hotel operating revenue rose by 55% to HKD 284,082,000, driven by increases in rent, occupancy rates, and dining revenue[9]. - Investment property revenue increased by 7% to HKD 42,316,000, attributed to rental income from the Royal Scot Hotel and other properties[9]. - The rental income from the Royal Scot Hotel for the year was GBP 3,546,000, equivalent to HKD 37,408,000[10]. Dividend Policy - The company did not recommend a final dividend for the year ended December 31, 2021, due to uncertainties in hotel income and rental income caused by the COVID-19 pandemic[6]. - The board does not recommend the payment of a final dividend for the year ended December 31, 2021, consistent with the previous year[42]. - The company has adopted a dividend policy aimed at providing stable and sustainable returns to shareholders[39]. Corporate Governance - The board consists of nine members, including five executive directors, one non-executive director, and three independent non-executive directors, with two independent directors possessing appropriate professional qualifications[16]. - The company has adopted the corporate governance code and has complied with all provisions except for certain deviations noted in the report[14]. - The chairman and CEO positions are held by the same individual, Zheng Qiweng, which the board believes provides consistent leadership and cost savings[14]. - The company has established a nomination committee primarily composed of independent non-executive directors, although it has not fulfilled all responsibilities as outlined in the code[14]. - The company has a commitment to maintaining high standards of corporate governance and transparency to shareholders[14]. Risk Management - The board is responsible for maintaining an effective risk management and internal control system, which has been reviewed and deemed effective for the reporting year[25]. - The Risk Management Committee was established in 2019, consisting of three executive directors, with specific responsibilities assigned to each member[26]. - The risk management system aims to identify, assess, and manage significant risks related to hotel operations and financial functions[28]. - The board's strategy includes a top-down approach to risk management, ensuring all significant risks are considered in decision-making[28]. Employee and Operational Metrics - The number of employees decreased to 486 from 566 in 2020, reflecting the impact of the pandemic on operations[11]. - Administrative expenses increased slightly by 3% to HKD 49.998 million from HKD 48.630 million in the previous year[6]. - The company emphasizes human resources, offering competitive compensation and a safe working environment to attract and retain skilled employees[53]. Investment Properties and Valuation - The fair value of investment properties held by the group is approximately HKD 4,788,000,000 as of December 31, 2021, with a net impairment of HKD 5,000,000 recognized in the income statement for the year[60]. - The carrying amount of hotel properties is approximately HKD 3,335,000,000 as of December 31, 2021, with significant judgments involved in determining any impairment[62]. - The valuation of investment properties is based on independent professional valuers using income and residual methods, with key inputs disclosed in note 16 of the financial statements[60]. Financial Position - The company’s total liabilities decreased to HKD 8,270,468 in 2021 from HKD 8,840,254 in 2020, representing a decline of approximately 6.4%[32]. - The company’s total equity as of December 31, 2021, was HKD 8,087,196, an increase from HKD 8,007,299 in 2020, representing a growth of approximately 1%[32]. - Current liabilities rose to HKD 852,594,000 in 2021 from HKD 289,763,000 in 2020, indicating a significant increase in short-term obligations[78]. Future Outlook - Future rental income prospects are optimistic due to the linkage of rent increases to the UK Retail Price Index, which reached a 30-year high of 6.2% in February 2022[10]. - Management is preparing for renovations and expansion of the newly acquired Wood Street Hotel in London[11]. Shareholder Engagement - Shareholders holding at least 5% of the voting rights can request the board to convene a general meeting[35]. - Various communication channels are established for shareholders and investors, including printed communications and annual general meetings[38].
顺豪物业(00219) - 2021 - 年度财报