Financial Performance - The company reported revenue of HKD 184,601,000 for the year, a decrease of 1.1% from HKD 188,634,000 in the previous year, and a net loss of HKD 88,159,000 compared to a loss of HKD 227,892,000 in the prior year[9]. - The company recorded revenue of approximately HKD 184,601,000 for the fiscal year ending June 30, 2022, a decrease of about 2.1% compared to HKD 188,634,000 in 2021[30]. - The group incurred a loss of approximately HKD 77,683,000 for the fiscal year ending June 30, 2022, a substantial decrease from HKD 196,375,000 in 2021, resulting in a loss rate of 42.1%[33]. - Other income and gains amounted to approximately HKD 33,156,000 for the fiscal year ending June 30, 2022, compared to HKD 30,150,000 in 2021, primarily due to interest income from loans[34]. - The gross profit margin increased significantly to approximately 79.8% for the fiscal year ending June 30, 2022, up from 56.4% in 2021[32]. - Administrative expenses decreased by approximately 25.2% to HKD 23,617,000, representing 12.8% of revenue, down from 16.7% in 2021[35]. - Financial expenses amounted to HKD 47,711,000, representing 25.8% of revenue for the year ended June 30, 2022, a decrease from 34.9% in the previous year[40]. - The expected credit loss for receivable loans was approximately HKD 51,551,000, accounting for 27.9% of revenue, significantly up from HKD 460,000 in 2021[35]. - The fair value of investment properties was approximately HKD 1,843,529,000 as of June 30, 2022, down from HKD 2,050,602,000 in 2021, reflecting a loss of approximately HKD 162,651,000 due to rental growth slowdown[39]. Property Operations - The company acquired a 25% stake in Zhengzhou Zhongyuan Jinyi Commercial Operation Management Co., which has become a wholly-owned subsidiary, shifting focus towards property operations[9]. - The group acquired a 25% stake in Zhengzhou Zhongyuan Jinyi Commercial Operation Management Co., making it an indirect wholly-owned subsidiary[23]. - The group plans to enhance property operations by offering leases to more well-known brands and diversifying tenant types to meet various customer needs[18]. - The group aims to explore investment opportunities in property operations due to the significant market potential in China driven by its large population and strong consumer power[18]. - The group aims to expand its tenant base by providing leasing and management services to more shopping centers, enhancing revenue stability[45]. - The company leased two shopping malls in Zhengzhou, with the first mall having a total area of approximately 125,188 square meters and an occupancy rate of about 94.9% as of June 30, 2022[10]. - The second shopping mall has an area of approximately 80,118 square meters and an occupancy rate of about 92.7% as of June 30, 2022[11]. - As of June 30, 2022, approximately 94.9% of the leasable area of Jiachao Shopping Center was leased to about 134 tenants[23]. - The leasable area of Shopping Center C was approximately 80,118 square meters, with about 92.7% leased to around 112 tenants as of June 30, 2022[24]. Cost Management and Profitability - The company aims to penetrate the property operation market and implement strict cost control policies to increase profit margins[15]. - The group continues to implement prudent cost management policies to improve operational efficiency and maintain a reasonable financial position[18]. - The group plans to continue investing in property operations and may consider acquisitions to strengthen its management team[45]. - The group will focus on developing existing projects and exploring new opportunities, including partnerships, to broaden revenue sources and enhance profitability[18]. Dividends and Shareholder Value - The board declared a special dividend of HKD 0.08 per share for the year ended June 30, 2022, compared to no dividend in the previous year[41]. - A special dividend of HKD 0.08 per share was paid in June 2022, with no final dividend recommended for the year ending June 30, 2022[71]. - The company has established a dividend policy aimed at maximizing shareholder value, with the board having full discretion over dividend declarations[148]. - Factors considered for dividend declaration include operating and financial performance, cash flow, and future earnings[149]. - The board will review the dividend policy periodically and may update it as deemed necessary[150]. Governance and Compliance - The company ensures compliance with applicable laws, rules, and regulations through its governance policies and practices[125]. - The company has established various committees, including the audit committee, remuneration committee, and nomination committee, to enhance corporate governance[120]. - The audit committee consists of four independent non-executive directors, ensuring effective oversight of financial reporting and compliance[122]. - The audit committee reviewed the effectiveness of the internal control system, which was deemed effective and sufficient[115]. - The company has obtained appropriate directors' and officers' liability insurance for its directors and senior management[98]. - The company has arranged appropriate liability insurance for directors to cover responsibilities arising from corporate activities[116]. - The board is responsible for monitoring the company's business and making decisions in the best interest of the company and its shareholders[115]. Environmental and Social Responsibility - The company is committed to sustainable development in its operational locations, focusing on resource efficiency and emissions reduction[160]. - The board is responsible for environmental, social, and governance (ESG) performance and regularly assesses ESG risks and strategies[160]. - The total carbon emissions from the group amounted to approximately 1.2 tons, a decrease from 1.61 tons in the previous year[168]. - The group monitored exhaust emissions from underground parking facilities, which operated approximately 2,900 hours annually[168]. - The wastewater discharge during the reporting period was approximately 130 kilograms, slightly down from 136 kilograms in the previous year[171]. - The group has constructed a total of 7 discharge outlets for wastewater from shopping centers, ensuring compliance with national standards[171]. - The group is committed to reducing waste and promoting sustainable development through specific policies and indicators[162]. - The group engages with stakeholders through various channels, including annual meetings and reports, to understand their expectations[164]. - The group identified COVID-19 and flooding as highly significant issues during its annual materiality assessment[167]. - The group adheres to environmental protection laws and standards during construction and operation phases[168]. Employee Management and Training - The group has a total of 141 employees, with a gender distribution of 87 males and 54 females, and an average age of 37 years[194]. - The employee turnover rate for the year was 14%, with 14 male and 6 female employees leaving, and 30% of those departing were over 45 years old[194]. - The group conducted 9 training sessions during the year, with a total of 550 participants, including 330 males and 220 females, resulting in a male-to-female training participation ratio of 1.5:1[198]. - The average training time for employees was 1.5 hours, with male employees receiving an average of 1.1 hours and female employees receiving 1.8 hours[198]. - The company fully complies with the Labor Law of the People's Republic of China and the Employment Ordinance of Hong Kong during recruitment processes[199]. - The company prohibits the employment of child labor and forced labor, ensuring no such incidents occurred during the reporting period[199]. Supplier Management - The company categorizes suppliers based on service characteristics, including procurement suppliers, builders, and external security and cleaning suppliers[199]. - A unified bidding process is implemented for selecting suppliers and builders, with clear standards and specifications outlined[199]. - Multiple departments are involved in the evaluation process to ensure consistent assessment methods for bids[199]. - A supply chain information system has been established to facilitate collaboration and achieve win-win outcomes[199]. - All suppliers and builders will undergo a quality service review at the end of the year[199]. - An evaluation system linked to salaries has been developed for external security and cleaning suppliers to enhance service quality[199].
锦艺集团控股(00565) - 2022 - 年度财报