Financial Performance - The company reported a revenue increase of 45% to HKD 10,999 million for the fiscal year ending December 31, 2021[30]. - Gross profit increased by 8% compared to the previous year[30]. - The company recorded a post-tax profit of HKD 211,321,000, significantly improved from a loss of HKD 556,649,000 in the previous fiscal year due to changes in the fair value of investment properties[30]. - Distribution business revenue increased by 47% to HKD 10,728,610,000, driven by growth in Thailand and Hong Kong[32]. - Classified profit from distribution business rose by 42% to HKD 300,025,000[32]. - Rental and hotel operation income decreased by 5% to HKD 270,632,000, with classified profit (excluding property fair value changes) down 39% to HKD 77,803,000[33]. - Securities investment recorded classified profit of HKD 14,302,000, up from HKD 9,605,000 in the previous year[35]. - The retained earnings as of December 31, 2021, were HKD 1,025,844,000, down from HKD 1,037,478,000 in 2020[127]. - The total distributable reserves available to shareholders as of December 31, 2021, were HKD 1,055,030,000, compared to HKD 1,066,664,000 in 2020[127]. - The company reported a revenue of approximately HKD 10,687,049,000 from the sale of goods for the fiscal year ending December 31, 2021[192]. Assets and Liabilities - Total assets increased by 6% to HKD 9,638 million[31]. - Net asset value per share rose from HKD 13.4 to HKD 14.0[31]. - The group has a cash deficit of HKD 2,842,027,000 as of December 31, 2021[43]. - The asset-liability ratio stands at 107% as of December 31, 2021, unchanged from the previous year[43]. - As of December 31, 2021, the carrying value of investment properties was HKD 4,110,724,000, representing about 43% of the total assets[191]. - A net loss of HKD 21,639,000 was recognized in the consolidated income statement for changes in the fair value of investment properties for the fiscal year[191]. Corporate Governance - The board consists of four executive directors and three independent non-executive directors, ensuring diverse business experience and expertise[50]. - The company has adopted a nomination policy for directors, considering factors such as character, qualifications, and industry knowledge[53]. - As of the end of 2021, two out of seven board members are female, reflecting the company's commitment to board diversity[57]. - The audit committee is composed entirely of independent non-executive directors, with Ms. Wang Wei Ling serving as the chair[59]. - The chairman and CEO positions are held by the same individual, Mr. Lin Jia Feng, who is responsible for the group's corporate strategy and development direction[52]. - The company has established measures to ensure corporate governance standards meet or exceed those set by the relevant codes[51]. - The board's composition is reviewed to maintain a balance of skills, experience, and diversity, which is considered essential for competitive advantage[57]. - The company’s governance practices are aligned with the Hong Kong Stock Exchange's requirements, ensuring compliance and transparency[51]. - The board has established a risk management and internal control system, which was reviewed three times during the year, and deemed effective and sufficient[74]. - The company has maintained appropriate insurance coverage for the responsibilities of directors and senior officers throughout the year[134]. Environmental Impact - Total energy consumption for the year 2021 was 10,817,000 kWh, an increase from 9,377,000 kWh in 2020[90]. - Water consumption for the year 2021 was 39,872 cubic meters, down from 44,167 cubic meters in 2020[90]. - Indirect energy emissions reached 4,795 tons of CO2 in 2021, compared to 4,068 tons in 2020[88]. - Other indirect emissions were 15 tons of CO2 in 2021, slightly up from 14 tons in 2020[88]. - Non-hazardous waste generated in 2021 was 3,215 kg, an increase from 2,963 kg in 2020[86]. - The company has been actively monitoring and reducing the environmental impact of its hotel operations[83]. - The company has implemented energy-saving systems in its iconic building in Japan since 2015[83]. - The company encourages employees to reduce, reuse, and recycle materials to minimize waste generation[93]. - The company complies with statutory requirements regarding the disposal of waste electrical and electronic products[93]. Employee and Training - Employee count increased to 838 from 765, with total employee compensation rising to HKD 203,173,000[45]. - The company employed a total of 231 full-time employees as of December 31, 2021, a slight decrease from 234 in 2020, with 49% located in Hong Kong[94]. - The employee training hours increased to 530 hours in 2021, up from 323 hours in 2020, with 54% of employees receiving training[100]. - The average training time per employee was 4 hours in 2021, compared to 3 hours in 2020[100]. - The company maintains a diverse workforce, with 52% male and 48% female employees overall, and a total of 41 employees under 30 years old[95]. - The company has a low employee turnover rate and has not reported any significant work-related injuries[99]. - The company has implemented a stock option plan to incentivize directors and senior employees[94]. - The company ensures compliance with labor laws in Hong Kong, Singapore, and Japan, with no employees under the age of 18[104]. Shareholder Engagement - The company has established multiple communication channels to enhance engagement with investors and shareholders[79]. - The board is committed to maintaining effective communication among shareholders, management, and the board itself[52]. - The company has a policy to declare dividends based on its financial performance and the interests of shareholders[128]. - The company's ability to declare dividends depends on its operating performance, profitability, capital requirements, overall financial condition, and current economic environment[128]. Audit and Compliance - The Audit Committee held three meetings during the year ending December 31, 2021, and reviewed the management accounts and financial performance of the group[60]. - The external auditor, Deloitte, provided audit services for a fee of HKD 4,532,000, tax advisory services for HKD 14,000, and other services for HKD 522,000 for the year ending December 31, 2021[72]. - The Nomination Committee met once during the year to review the composition of the board and assess the independence of non-executive directors[63]. - The Remuneration Committee held one meeting during the year to review the remuneration policies and determine the compensation for executive directors and senior management[64]. - The company ensured compliance with Hong Kong Financial Reporting Standards in preparing its financial statements[185]. - The board is responsible for preparing true and fair consolidated financial statements according to Hong Kong Financial Reporting Standards and the Companies Ordinance[198]. - The management is tasked with overseeing the financial reporting process of the group[199]. - The auditors aim to obtain reasonable assurance that the consolidated financial statements are free from material misstatement due to fraud or error[200].
SIS INT'L(00529) - 2021 - 年度财报