Community Engagement - The company has been sponsoring the annual "Hong Kong Synergy 24 Drum Competition and the Hong Kong Drum Festival" for 19 consecutive years, demonstrating its commitment to community engagement [5]. - The "Convenient Life Technology Electronic Payment" seminar was organized at "THE LU+" Business Centre, showcasing the company's involvement in community education initiatives [7]. - The company has actively participated in charitable events, including distributing necessities to grassroots families during the pandemic [11]. - The company has been involved in various community activities, including organizing calligraphy and yoga classes for the elderly [17]. - The group has participated in the "Caring Company" program for 19 consecutive years since 2003, receiving the "15 Years + Caring Company" award this year [167]. - The group donated HKD 1 for each jump during a charity rope skipping marathon, raising a six-figure sum to support underprivileged women and youth in acquiring new skills [168]. - The group provided anti-epidemic supplies to low-income families and elderly individuals during the pandemic, distributing food and essential items [169]. - The group established a scholarship program for employees' children to alleviate educational financial burdens and encourage academic achievement [168]. - The group actively supports community welfare organizations and engages employees in volunteer activities, including blood donation drives and educational programs [171]. Financial Performance - The total revenue for the year ended March 31, 2022, was HKD 122,850,000, an increase of 11.9% compared to HKD 109,784,000 in 2021 [39]. - The core profit for the year was HKD 52,020,000, a decrease of 38.6% from HKD 84,752,000 in the previous year [39]. - The company proposed a final dividend of HKD 0.06 per share, totaling HKD 24,300,000, compared to HKD 194,400,000 in the previous year [44]. - The total assets amounted to HKD 4,175,960,000, while total liabilities were HKD 147,824,000 as of March 31, 2022 [39]. - The earnings per share (EPS) for the year was a loss of HKD 0.21, compared to a loss of HKD 0.36 in the previous year [39]. - The company’s net asset value per share was HKD 9.95, down from HKD 10.67 in the previous year [39]. - The average return on equity was -2.02%, an improvement from -3.34% in the previous year [39]. - The company’s liquidity ratio was 18.55:1, indicating a decrease in liquidity compared to 21.05:1 in the previous year [39]. - The company recorded a loss before tax of HKD 72,514,000, an improvement from a loss of HKD 135,985,000 in the previous year [39]. - The fair value loss on investment properties was HKD 136,558,000, a significant reduction from HKD 232,333,000 in the previous year [39]. - The company's loss attributable to shareholders decreased by approximately 43% to HKD 84,538,000 compared to a loss of HKD 147,581,000 in the same period last year [46]. - Total revenue increased by about 12% to HKD 122,850,000 from HKD 109,784,000 [46]. - Core profit, excluding fair value losses on investment properties, decreased by approximately 34% to HKD 64,044,000 from HKD 96,348,000 [47]. Operational Highlights - The warehouse operations segment saw revenue and profit rise by approximately 39% to HKD 19,719,000 from HKD 14,168,000, with a turnaround from a loss of HKD 758,000 to a profit of HKD 3,016,000 [49]. - Rental income from the main investment property "振萬廣埸" increased by about 5% to HKD 75,661,000, with an average occupancy rate rising by approximately 4.1% to about 84% [50]. - Financial investment segment revenue increased by approximately 67% to HKD 7,036,000, while profit decreased by about 67% to HKD 15,580,000 due to a decline in fair value gains on financial assets [54]. - The new mini-storage business "安存迷你倉" achieved an occupancy rate of approximately 44.7% by May 31, 2022, up from 32% at the end of March 2022 [63]. - The company anticipates that warehouse operations will maintain a volume of approximately 15,000 cubic meters, contingent on overall economic recovery and trade activity [58]. - The rental rate for "振萬廣埸" is expected to face pressure due to high office supply in East Kowloon, despite an increase in occupancy from below 80% to about 89% [59]. - The average occupancy rate improved from approximately 36% to 48%, with average warehouse rent increasing by about 3% to approximately HKD 95 per cubic meter [71]. - Total rental income from the property investment segment increased by approximately 5% to HKD 96,095,000, while profit decreased by about 8% to HKD 53,430,000 [73]. Corporate Governance - The company is committed to corporate governance and transparency, as evidenced by its detailed annual report and financial disclosures [23]. - The company has adopted multiple provisions from the new corporate governance code effective from the fiscal year 2022/23 to enhance governance practices [96]. - The board currently consists of one executive director, one non-executive director, and three independent non-executive directors, with over 50% of the board being independent [103]. - The company has not yet filled the positions of chairman and CEO since April 2015, and the board is actively seeking suitable candidates [97]. - All directors have confirmed compliance with the standard code of conduct for securities trading during the fiscal year ending March 31, 2022 [102]. - The board is responsible for long-term strategy formulation and monitoring, approving dividends, and ensuring good corporate governance [107]. - Directors have access to accurate and relevant information and can consult independent professional advice at the company's expense [108]. - The company encourages directors to participate in professional development courses to enhance their knowledge and skills [109]. - The company will continue to review and improve its corporate governance practices to ensure proper regulation of business activities and decision-making processes [101]. - The board currently consists of four non-executive directors, three of whom are independent, ensuring independent judgment and valuable guidance for the company's development [113]. Risk Management - The Board is responsible for ensuring a robust and effective risk management and internal control system [141]. - The risk management plan implemented during the year aims to identify, assess, manage, and monitor all significant risks faced by the group [142]. - The Board is tasked with evaluating and determining the nature and extent of risks faced by the group, with annual reviews conducted [142]. - The Audit Committee assists the Board in fulfilling its responsibilities regarding risk management and internal controls [141]. - The internal audit function has been established with a three-year plan approved by the board, focusing on key control measures and identifying significant design flaws [148]. - Management confirmed the effectiveness of risk management mechanisms and internal control systems for the fiscal year ending March 31, 2022 [152]. Environmental, Social, and Governance (ESG) - The ESG report covers the group's performance in property investment and warehouse operations for the fiscal year ending March 31, 2022 [178]. - The group emphasizes sustainable development and environmental protection in all business activities, aiming to create value in both environmental and social aspects [182]. - The group has established a dedicated ESG working group since 2017 to handle ESG matters, composed of personnel with adequate ESG knowledge [195]. - The board of directors is responsible for determining the overall ESG strategy and conducting annual risk assessments to evaluate ESG performance and identify related risks and opportunities [192]. - The group ensures compliance with labor laws and regulations to protect employee rights [187]. - The group has a comprehensive ESG governance framework led by the board to support sustainable development in daily operations [191].
安全货仓(00237) - 2022 - 年度财报