Impact of COVID-19 and Geopolitical Tensions - The company reported a significant impact on its operations due to the COVID-19 pandemic, with revenues at their lowest point as industries suffered from depression [10]. - The anti-epidemic situation in Mainland China remained rigorous, with massive outbreaks in Hong Kong and Shanghai in early 2022, severely affecting the economy and people's livelihoods [10]. - The company faced challenges in resuming real economic activities and tourism, leading to a continued decline in related revenues [10]. - Internationally, Sino-US relations did not improve, and there were ongoing suppressive actions against Chinese enterprises [10]. - The ongoing Russian-Ukrainian War has created a stalemate, potentially destabilizing the global geopolitical landscape with far-reaching impacts [10]. - The company is focused on navigating the challenges posed by the pandemic and geopolitical tensions to ensure future growth and stability [9]. - The board of directors presented the annual results for the year ended December 31, 2021, highlighting the adverse effects of external factors on performance [9]. - The company is committed to exploring new strategies for market expansion and recovery in the post-pandemic environment [9]. - The company aims to enhance its resilience against future disruptions through innovation and strategic partnerships [9]. Financial Performance and Position - For the year ended 31st December 2021, the Group recorded revenue from continuing operations of HK$3,717,000, representing a decrease of 2% from HK$3,647,000 for the year ended 31st December 2020 [33]. - The loss for the year amounted to HK$156,515,000, representing an increase of 42% from HK$110,443,000 for the year ended 31st December 2020 [33]. - Loss attributable to owners of the Company from continuing operations for the year ended 31st December 2021 amounted to HK$148,630,000, representing an increase of 39% from HK$107,314,000 in the previous year [33]. - Revenue from film related business operations amounted to HK$3,717,000 (2020: HK$3,647,000) and its segment loss amounted to HK$43,526,000 (2020: HK$28,900,000) [37]. - The Group did not start own production shooting and distribute any new film during the year due to the COVID-19 pandemic [37]. - Impairment loss recognised in respect of films in progress and film rights amounted to HK$1,313,000 and HK$2,862,000 respectively [37]. - The Group's total assets were HK$5,285,909,000, down from HK$5,343,571,000 in 2020, with net current assets of HK$2,849,594,000 compared to HK$4,147,002,000 in 2020, resulting in a current ratio of 2.3, down from 7.8 in 2020 [48]. - The Group's total borrowings as of December 31, 2021, amounted to HK$1,576,191,000, an increase from HK$1,299,565,000 in 2020, with a gearing ratio of 51% compared to 38% in 2020 [49]. - The Group's owners' equity decreased to HK$3,064,638,000 in 2021 from HK$3,435,914,000 in 2020 [49]. Property Development and Market Conditions - The property market in Macau remains sluggish, but the Hengqin market is expected to improve due to government support and promotional efforts [13]. - The Group has two ongoing property development projects in Macau: Property C7 with a site area of 4,669 square meters and Tiffany House with a gross floor area of 31,192 square meters [40]. - Property C7 is planned for residential and parking use, with a maximum building height of 34.5 meters and a maximum utilization rate of 5.58, including 26,047 square meters for residential and 5,200 square meters for parking [40]. - Tiffany House offers 230 units across two towers, with a total gross floor area of 31,192 square meters for residential, 3,716 square meters for commercial, and 11,250 square meters for parking [41]. - The Group anticipates that sales for Tiffany House will launch in March 2022, contingent on the lifting of inbound control measures in Mainland China, Hong Kong, and Macau [41]. - The property market in Macau remains stagnant, with no significant improvement, despite signs of economic recovery in early 2021 [41]. Corporate Governance and Board Structure - The Company has complied with all applicable code provisions of the Corporate Governance Code, with one noted deviation explained in the report [82]. - The Board comprises six Directors, including three executive Directors and three independent non-executive Directors, ensuring a balance between executive and non-executive oversight [83]. - The independent non-executive Directors provide a wide range of expertise and experience, contributing to effective independent judgment and safeguarding shareholder interests [86]. - The Company emphasizes high standards of business ethics and corporate governance practices to enhance shareholder value [82]. - The Board actively monitors corporate governance practices to ensure compliance with the Listing Rules [82]. - The Company held multiple meetings throughout the year to discuss corporate governance issues and provide guidance to directors and senior management [82]. Environmental and Social Responsibility - The Group is committed to operating its various business segments in an environmentally-friendly manner and promotes a "green" environment among employees [154]. - The Group's environmental policies and performance will be disclosed in an environmental, social, and governance report to be published before 31st May 2022 [155]. - The Group's performance is influenced by relationships with employees, customers, and suppliers, emphasizing the importance of these relationships for business success [145]. Shareholder Engagement and Communication - The company encourages shareholders to attend general meetings or appoint proxies to vote on their behalf [98]. - The company maintains detailed records of training received by directors to ensure compliance with their duties [99]. - The company is dedicated to a policy of open and timely disclosure of corporate information to shareholders and investors [133]. - The annual general meeting serves as a practical discussion platform for the Board to communicate with shareholders, ensuring their views are conveyed [130].
中国星集团(00326) - 2021 - 年度财报