WING ON CO(HK:00289)2022-04-26 03:05Financial Performance - The company reported a significant increase in revenue for the fiscal year ending December 31, 2021, with a total revenue of HKD 1.2 billion, representing a 15% year-over-year growth[2]. - The net profit for the same period was HKD 300 million, which is a 20% increase compared to the previous year[2]. - The group’s revenue decreased by 4.9% to HKD 1,129.3 million for the year ended December 31, 2021, compared to HKD 1,187.6 million in 2020, primarily due to the impact of COVID-19 on core business revenue[26]. - The group recorded a profit attributable to shareholders of HKD 552.5 million for the year, a significant recovery from a loss of HKD 456.1 million in 2020, mainly due to a net gain of HKD 180.1 million from investment property valuations[26]. - Basic earnings per share increased to HKD 189.4 cents, compared to a loss of HKD 156.2 cents per share in 2020; however, basic earnings excluding non-cash items decreased by 4.2% to HKD 144.1 cents[26]. - The group aims to strengthen its core department store business and enhance rental income from commercial property investments, which are key profit contributors[27]. - The company reported a profit of HKD 552,495,000 for the year ended December 31, 2021, compared to a loss in the previous year[140]. - Total comprehensive income for the year was HKD 379,532,000, reflecting a significant recovery from the previous year's loss[141]. Dividends and Shareholder Returns - The company plans to distribute a final dividend of HKD 0.50 per share, subject to shareholder approval at the annual general meeting[4]. - The board proposed a final dividend of HKD 0.46 per share for the year, down from HKD 0.72 per share in 2020, resulting in a total dividend of HKD 0.80 per share for 2021[26]. - The company declared dividends totaling HKD 210,019,000 for the year, reflecting its commitment to returning value to shareholders[140]. - The total dividend paid to shareholders was HKD 309,116,000 in 2021, compared to HKD 221,920,000 in 2020[143]. Corporate Governance - The company has established an audit committee to enhance corporate governance and oversight of financial reporting[11]. - The company has adopted the corporate governance principles and complied with the Hong Kong Stock Exchange's Listing Rules, ensuring high standards of corporate governance[84]. - The board consists of 8 members, including 4 executive directors and 4 independent non-executive directors, with all directors attending 100% of board meetings and annual general meetings[89]. - The board is responsible for the overall business strategy, policies, and plans, requiring approval for all major acquisitions, sales, and capital transactions[92]. - The company established an ESG committee to assist the board in fulfilling its responsibilities regarding environmental, social, and governance matters[95]. Market Expansion and Strategy - The company is expanding its market presence in Southeast Asia, targeting a 25% market share by 2025[19]. - New product launches are expected to contribute an additional $200 million in revenue, with a focus on innovative technology solutions[18]. - The company provided an optimistic outlook, projecting a revenue growth of 10-12% for the next fiscal year[17]. - The company plans to continue focusing on market expansion and new product development strategies moving forward[136]. Operational Efficiency - The company plans to implement cost-saving measures aimed at reducing operational expenses by 5% over the next year[18]. - Customer satisfaction ratings improved to 90%, reflecting the success of recent service enhancements[19]. - Research and development expenses increased by 18%, totaling $150 million, to support new technology initiatives[17]. Financial Position and Assets - The group's total equity as of December 31, 2021, was HKD 19,216.3 million, reflecting a 0.3% increase from HKD 19,155.5 million in 2020[28]. - Cash and listed securities amounted to approximately HKD 3,540.3 million as of December 31, 2021, providing sufficient liquidity for capital commitments and operational needs[28]. - The total assets of the company in 2021 were HKD 20,639 million, remaining stable compared to HKD 20,633 million in 2020[122]. - The company’s total liabilities in 2021 were HKD 1,391 million, a decrease from HKD 1,447 million in 2020[122]. Investment and Property Management - The total fair value of investment properties held by the group as of December 31, 2021, is HKD 15,529 million, representing 75% of the total assets of the group[128]. - The company recorded a net gain from investment properties of HKD 180,076 thousand in 2021, compared to a loss of HKD 886,418 thousand in 2020[200]. - The company’s investment properties include commercial properties in Hong Kong, Houston, and Melbourne, with a total area of approximately 1,358,000 square feet[124]. Health and Safety Measures - The company is closely monitoring the impact of COVID-19 on its operations and will implement necessary health measures for shareholder meetings[9]. - The company plans to maintain strict health and safety measures in office properties and department stores due to the rapid development of the pandemic in Hong Kong[38]. - The company has implemented strict health and safety measures in its office properties and department stores to prevent the spread of the pandemic[60]. Shareholder Information - The major shareholder, 永安國際集團有限公司, holds 180,545,138 shares, which is 61.956% of the issued voting shares[78]. - Publicly held shares exceed 25% of the company's total issued shares[79]. - The company repurchased its own shares during the year to enhance the net asset value per share and earnings per share[81]. Risk Management - The board confirmed the establishment and maintenance of an effective risk management and internal control system to protect the group's assets[111]. - The risk management system was reviewed by an external consultant, who did not identify any major new risks during the year[113]. - The group monitors the default risk of specified debtors and recognizes expected credit losses when they exceed the carrying amount[166].