PICO FAR EAST(HK:00752)2022-02-18 08:36Financial Performance - Total revenue for the year reached HKD 4.052 billion, an increase of 17.9% compared to HKD 3.438 billion in the previous year[6]. - Profit attributable to shareholders rose by 171.1% to HKD 136.9 million, up from HKD 50.5 million in the previous year[6]. - Core operating profit increased by 44.0% to HKD 165.7 million, compared to HKD 115.1 million in the previous year[6]. - EBITDA grew by 45.5% to HKD 260.8 million, up from HKD 179.3 million in the previous year[8]. - Basic earnings per share were HKD 0.1106, compared to HKD 0.0408 in the previous year, reflecting a significant increase[6]. - The company reported a total comprehensive income of HKD 254,563, up from HKD 99,844 in 2020, reflecting strong overall performance[172]. - The company recognized a significant increase in other income, amounting to HKD 166,589, compared to HKD 163,152 in the previous year[171]. - Financing costs decreased to HKD 18,228 from HKD 24,554, indicating improved financial management[171]. Revenue Segmentation - The total revenue for the Greater China region reached HKD 40.52 billion, accounting for 53.6% of the group's total revenue, an increase from 46.6% in the previous year[11]. - The revenue from the exhibition, project, and brand activation segment was HKD 31.18 billion, representing 76.9% of the total revenue, up from 71.0% the previous year[12]. - The visual brand activation segment generated HKD 404 million in revenue, up from HKD 325 million in 2020, accounting for 10.0% of total group revenue compared to 9.4% in 2020[28]. - The museum and theme entertainment segment generated revenue of HKD 492 million, down from HKD 627 million, accounting for 12.2% of total group revenue[33][34]. - The conference planning activation segment reported revenue of HKD 38 million, down from HKD 43 million[40][41]. Operational Highlights - The company operates 47 permanent offices across 34 cities, employing approximately 2,000 long-term staff[8]. - The number of exhibitions increased by 23% compared to the previous year, with total exhibition space growing by 92%[13]. - The group successfully delivered various virtual events and exhibitions despite the pandemic, including the ASEAN International Furniture and Furnishings Exhibition and the Philippine National Trade Exhibition[43][45]. - The group managed and operated the Jinjiang International Exhibition Center, successfully delivering 16 exhibitions and projects during the year[22]. - The group participated in the Dubai Expo, managing over 200 projects, marking the largest scale of participation in 30 years[19]. Digital Transformation and Strategy - The company is focused on leveraging digital solutions to connect brands with audiences, enhancing project value and impact[3]. - Future strategies will integrate digital and physical elements to create seamless experiences for clients[4]. - The company continues to enhance its digital transformation strategy to meet new market demands and increase revenue sources[11]. - The company is undergoing a digital transformation, integrating digital strategies into its operations to meet current and future customer needs[61]. - The company has invested in new technologies and digital media to enhance its service offerings and improve operational efficiency[70]. Financial Position and Assets - Total assets reached HKD 5.386 billion in 2021, compared to HKD 4.765 billion in 2020, indicating an increase of about 13%[74]. - The total net value of tangible assets increased by 17.8% to approximately HKD 1.648 billion (2020: HKD 1.399 billion)[46]. - Cash and bank balances amounted to HKD 1.483 billion (2020: HKD 1.304 billion), with a net cash balance of HKD 754 million after deducting external interest-bearing borrowings (2020: HKD 638 million)[47]. - The company's net asset value reached HKD 2,319,468 thousand in 2021, up from HKD 2,097,513 thousand in 2020, indicating a growth of 10.6%[176]. Governance and Compliance - The company maintained compliance with the corporate governance code, although the roles of Chairman and CEO are held by the same individual, which deviates from the recommended practice[79]. - The board of directors held four meetings and one annual general meeting during the fiscal year ending October 31, 2021[81]. - The company has received annual confirmations of independence from all current independent non-executive directors, affirming their status as independent individuals[83]. - The company is committed to equal opportunities and regularly reviews its board diversity policy to ensure effectiveness[92]. Shareholder Returns - The company proposed a final dividend of HKD 0.050 per share, up from HKD 0.025 per share in the previous year, representing 45.2% of the basic earnings per share[8]. - The board recommends a final dividend of HKD 0.05 per share, totaling HKD 5.0 million for the year, compared to HKD 2.5 million in the previous year[110]. - The total reserves available for distribution to shareholders amount to HKD 751.53 million, down from HKD 771.05 million in the previous year[111]. Market Expansion and Future Outlook - The company is expanding its operations in the Greater Bay Area, with a focus on business development and operational management in key cities like Guangzhou and Shenzhen[71]. - The company is actively pursuing market expansion in Europe, the Middle East, and Africa, leveraging its global operational management expertise[70]. - The company anticipates further improvement in 2022, driven by the demand for digital and hybrid projects, despite ongoing impacts from the COVID-19 pandemic[56]. Risk Management - The board of directors is responsible for the effectiveness of risk management and internal control systems, with the internal audit department monitoring these systems continuously[99]. - The company has established a risk management committee composed of senior management to set, implement, and monitor risk management policies and procedures[99].