Financial Performance - The rental income for the year ended December 31, 2021, was approximately HKD 27,000,000, a significant increase of 80% compared to HKD 15,000,000 in 2020[11]. - The group recorded a profit of approximately HKD 19,000,000 for the year ended December 31, 2021, compared to a loss of HKD 115,000,000 in 2020, marking a substantial improvement[13]. - Revenue from continuing operations for 2021 was HKD 26,532,000, an increase from HKD 14,709,000 in 2020, representing an increase of 80.5%[44]. - Gross profit for 2021 was HKD 21,510,000, compared to HKD 12,227,000 in 2020, reflecting a growth of 76.2%[44]. - Profit from continuing operations for 2021 was HKD 18,807,000, a significant increase from HKD 5,111,000 in 2020, marking a rise of 267.5%[44]. - The company reported a net profit of HKD 18,807,000 for 2021, recovering from a loss of HKD 115,404,000 in 2020[44]. - Basic and diluted earnings per share from continuing operations were HKD 0.0484, compared to a loss of HKD 0.3613 in the previous year[151]. Financial Position - The fair value of the investment properties as of December 31, 2021, was approximately HKD 1,697,000,000, slightly up from HKD 1,692,000,000 in 2020[14]. - As of December 31, 2021, the group's cash and cash equivalents were approximately HKD 171,000,000, an increase from HKD 161,000,000 in 2020[21]. - The total borrowings of the group as of December 31, 2021, were approximately HKD 308,000,000, compared to HKD 299,000,000 in 2020[21]. - The group's debt-to-equity ratio as of December 31, 2021, was approximately 20.29%, up from 19.77% in 2020[22]. - Total assets as of December 31, 2021, were HKD 1,872,079,000, up from HKD 1,855,831,000 in 2020, indicating a growth of 0.7%[48]. - Total liabilities as of December 31, 2021, were HKD 353,604,000, compared to HKD 344,376,000 in 2020, showing an increase of 2.0%[48]. - The company reported a total equity of HKD 1,518,475,000, an increase from HKD 1,511,455,000 in the previous year[157]. Business Strategy and Outlook - The group anticipates a challenging economic outlook for 2022 due to multiple adverse factors, including ongoing local pandemic measures and geopolitical tensions, which may impact rental income from commercial and industrial properties[29]. - The group plans to maintain a prudent investment strategy to preserve financial resources for potential investment opportunities, aiming to create value for shareholders[29]. - The company plans to continue expanding its market presence and investing in new technologies to drive future growth[151]. - The board will consider overall operational performance, expected working capital needs, capital expenditure requirements, and future development plans when deciding on dividend distribution[119]. Corporate Governance - The company emphasizes its commitment to good corporate governance practices, focusing on a quality board and robust internal controls[89]. - The board consists of two executive directors and three independent non-executive directors, ensuring a majority of independent members[91]. - All independent non-executive directors have confirmed their independence according to the listing rules, and the board composition is regularly reviewed[94]. - The company has adopted a board diversity policy to enhance its strategic goals and sustainable development, aiming for gender diversity by proposing at least one different-gender director by December 31, 2024[95]. - The company provides necessary training and updates to directors to ensure they understand their responsibilities and the company's operations[100]. Risk Management - The board has identified key risks, including market volatility and supply chain disruptions, and is implementing strategies to mitigate these risks[113]. - The internal audit function has been strengthened, ensuring compliance and effectiveness of risk management systems[114]. - The group will continue to monitor the impact of the ongoing COVID-19 pandemic on its financial performance and position[189]. Audit and Compliance - The independent auditor's report confirms that the consolidated financial statements reflect the group's financial position as of December 31, 2021, in accordance with Hong Kong Financial Reporting Standards[134]. - The auditor received approximately HKD 380,000 for audit services for the year ended December 31, 2021[124]. - The financial statements are prepared in accordance with the Hong Kong Financial Reporting Standards, using historical cost method except for investment properties and certain financial instruments measured at fair value[182][184]. Shareholder Information - The company has established multiple communication channels with shareholders, including interim and annual reports, annual general meetings, and timely responses to inquiries[131]. - Shareholders holding at least 10% of the paid-up capital can request a special general meeting, which must be convened within 21 days of the request[126].
东方兴业控股(00430) - 2021 - 年度财报