Economic Environment - In 2021, the company's operating environment in Hong Kong remained challenging due to COVID-19, with visitor numbers dropping approximately 97.4% to around 91,398[12] - The GDP of Hong Kong grew by 6.4% year-on-year in 2021, indicating a moderate recovery despite ongoing pandemic impacts[12] - The overall economic outlook for 2022 remains uncertain due to the emergence of the Omicron variant and ongoing COVID-19 restrictions[12] - The Chinese economy grew by 8.1% in 2021, but the real estate sector faced significant challenges due to tightening regulations[11] Company Strategy and Operations - The company completed the sale of its property development business in China on September 26, 2021, marking a strategic shift in its operations[8] - The company aims to maintain stable growth and strengthen its financial position amidst ongoing uncertainties in the market[12] - The company plans to optimize its diverse tenant portfolio and strengthen relationships with tenants to enhance business resilience[12] - The company believes it holds a competitive advantage due to its investment properties located in the prime shopping area of Causeway Bay, Hong Kong[12] - The company's core business will continue to focus on steady performance and sustainable development strategies[12] - The group focused on enhancing the resilience of its core property leasing business in Hong Kong, particularly in Causeway Bay, to ensure long-term competitiveness[17] - The group has exited the property development business following the sale of Shanghai Yuexin, indicating a strategic shift in focus[27] Financial Performance - The rental income from the group's Hong Kong investment properties for the fiscal year 2021 was approximately HKD 36.6 million, a slight decrease of about 1.1% compared to HKD 37.0 million in the fiscal year 2020[16] - The total revenue for the fiscal year 2021 was approximately HKD 36.6 million, a slight decrease of about 1.1% compared to approximately HKD 37.0 million in the fiscal year 2020[45] - The rental income from the core asset, Jardine Center, accounted for approximately 82.1% of the group's total revenue for the fiscal year 2021[16] - The occupancy rate of the investment property portfolio reached approximately 94.7% as of December 31, 2021, up from 90.7% as of December 31, 2020[17] - The fair value of the group's investment properties was revalued at HKD 1,827.3 million as of December 31, 2021, down from HKD 1,863.0 million as of December 31, 2020, reflecting a fair value loss of HKD 35.7 million for the fiscal year 2021[24] - The group pre-sold 238 residential units out of a total of 1,132 units in the Zhenjiang project, generating proceeds of approximately RMB 283.2 million (approximately HKD 341.3 million) as of September 25, 2021[28] - The book value of the Zhenjiang project was approximately RMB 552.0 million (approximately HKD 665.3 million) as of September 25, 2021, compared to RMB 507.4 million (approximately HKD 602.9 million) as of December 31, 2020[28] - The company has pre-sold all residential units and a significant number of parking spaces, offices, and retail stores in the Jinhua project, confirming revenue of approximately RMB 979.9 million for the fiscal year 2021[41] - The company’s joint venture, Yitai, recorded a loss of approximately HKD 254.6 million in the fiscal year 2021, compared to a loss of approximately HKD 134.7 million in the fiscal year 2020[42] - The group recorded a one-time gain of approximately HKD 415.0 million from the sale of a subsidiary in fiscal year 2021, compared to HKD 8.4 million from a previous sale in fiscal year 2020[54] - The net profit attributable to the company's owners for fiscal year 2021 was approximately HKD 246.3 million, compared to a net loss of HKD 181.1 million in fiscal year 2020[57] Financial Position and Liabilities - As of December 31, 2021, the group had outstanding bank and other borrowings of approximately HKD 857.8 million, down from HKD 1,604.8 million as of December 31, 2020[62] - As of December 31, 2021, the company's debt-to-asset ratio was approximately 45.3%, a decrease from 71.3% on December 31, 2020[63] - The net current liabilities as of December 31, 2021, were approximately HKD 732.3 million, down from HKD 1,019.1 million on December 31, 2020[63] - The net asset value of the group as of December 31, 2021, was approximately HKD 1,078.4 million, an increase of about 29.2% from HKD 834.7 million on December 31, 2020[64] - The current ratio as of December 31, 2021, was approximately 0.16, compared to 0.5 on December 31, 2020[63] - The company did not recommend any dividend payment for the fiscal year 2021, consistent with the previous fiscal year[68] - The company provided corporate guarantees amounting to HKD 1,127 million as of December 31, 2021, unchanged from the previous year[69] - The group had pledged assets with a total book value of HKD 1,827.3 million as of December 31, 2021, as collateral for bank loans[70] Employee and Operational Costs - Employee costs for fiscal year 2021 were approximately HKD 7.8 million, down about 31.0% from HKD 11.3 million in fiscal year 2020[47] - Other operating expenses for fiscal year 2021 were approximately HKD 14.7 million, a decrease of about 28.3% from HKD 20.5 million in fiscal year 2020[48] - The company employed 10 employees as of December 31, 2021, a decrease from 39 employees the previous year[74] Corporate Governance - The company has adopted the latest revised corporate governance code effective from January 1, 2021, ensuring compliance throughout the reporting period[150] - The board is responsible for leading and monitoring the company, making strategic decisions, and overseeing financial and operational performance[151] - The company has not established a separate corporate governance committee; the board executes corporate governance functions directly[152] - The board of directors consisted of 10 members during the reporting period, including 4 executive directors, 2 non-executive directors, and 4 independent non-executive directors[155] - The board held a total of 4 regular meetings and 5 additional meetings during the reporting period[159] - Attendance at board meetings was high, with the chairman attending 4 out of 4 regular meetings and 5 out of 5 additional meetings[160] - The company complied with listing rules requiring at least three independent non-executive directors, maintaining this composition throughout the reporting period[156] - Three directors were re-elected at the annual general meeting held on June 21, 2021, in accordance with company bylaws[163] - The company appointed four new directors, who were all willing to stand for re-election at the same annual general meeting[164] Risk Management - The group has established and maintained an internal control system and risk management procedures to monitor significant risks[124] - The group has not faced any significant violations of applicable laws and regulations that would materially impact its business and operations during the reporting period[130] - The group plans to continue expanding into different regional markets to reduce reliance on specific markets[124] - The group will closely monitor and manage interest rate fluctuation risks and may consider using interest rate hedging instruments when appropriate[125] Shareholder Information - As of December 31, 2021, China Cinda (Hong Kong) Asset Management Co., Ltd. held a beneficial interest in 843,585,747 shares, representing 74.98% of the issued share capital[116] - Bonds & Sons Holdings Limited, along with its controlled entities, held a beneficial interest in 111,642,295 shares, accounting for 9.93% of the issued share capital[116] - No directors or major executives had any beneficial interests in the company's shares or related securities as of December 31, 2021[110] - The company has no known shareholders with more than 5% interest in any major customers or suppliers[109] Legal and Compliance - The company has indicated that it will cooperate with Chinese authorities regarding potential criminal proceedings related to misappropriated funds in the Zhenjiang project[38] - The company has established a special investigation committee to address civil claims related to the Zhenjiang project, which have since been withdrawn[34] - The company has been actively managing its financial obligations to avoid further defaults[97] - The company is under ongoing communication with Hang Seng Bank regarding its financial status and obligations[97] - The company aims to maintain compliance with financial covenants to prevent future default situations[96]
中昌国际控股(00859) - 2021 - 年度财报