Financial Performance - The rental income for the fiscal year 2022 was approximately HKD 33.7 million, a decrease of about 7.9% compared to HKD 36.6 million in fiscal year 2021[17]. - The group's revenue for the fiscal year 2022 was approximately HKD 33.7 million, a decrease of about 7.9% compared to HKD 36.6 million in the fiscal year 2021, primarily due to rental income reductions related to COVID-19[31]. - Other income for the fiscal year 2022 was approximately HKD 1.1 million, an increase of about HKD 0.7 million from HKD 0.4 million in the previous year, mainly due to the absence of fair value losses on financial assets[32]. - Employee costs for the fiscal year 2022 were approximately HKD 5.2 million, a decrease of about 33.3% from HKD 7.8 million in the previous year, attributed to staff turnover in China[33]. - Other operating expenses for the fiscal year 2022 were approximately HKD 19.6 million, an increase of about 33.3% from HKD 14.7 million in the previous year, with significant contributions from foreign exchange losses[34]. - The group's share of losses from the associate company Yitai was approximately HKD 51.1 million for the fiscal year 2022, a reduction from HKD 254.6 million in the previous year[38]. - Financial costs for the fiscal year 2022 were approximately HKD 22.1 million, an increase of about 16.9% from HKD 18.9 million in the previous year, primarily due to rising bank borrowing rates[40]. - For the fiscal year 2022, the loss from continuing operations was approximately HKD 63.3 million, a significant decrease from a profit of HKD 368.1 million in the fiscal year 2021[42]. - The loss attributable to the owners of the company for the fiscal year 2022 was approximately HKD 63.3 million, compared to a profit of HKD 246.3 million in the fiscal year 2021[43]. Property and Investment - The occupancy rate of the investment properties as of December 31, 2022, was approximately 89.7%, down from 94.7% as of December 31, 2021[17]. - The contribution of the Jardine Center to the total revenue for fiscal year 2022 was approximately 84.3%[17]. - As of December 31, 2022, the group's investment properties were revalued at HKD 1,781.5 million, down from HKD 1,827.3 million in 2021, reflecting a fair value loss of HKD 45.8 million for the fiscal year 2022[39]. - The total area of the Jinhua project is approximately 337,530 square meters, including residential, commercial, and basement areas, with all residential units pre-sold as of December 31, 2022[27]. - The group did not recognize any revenue from the Jinhua project for the fiscal year 2022, compared to approximately RMB 979.9 million in the previous year[28]. - The company aims to enhance its core property leasing business resilience in Hong Kong, particularly in Causeway Bay, to ensure long-term competitiveness[18]. - The company anticipates a strong rebound in visitor numbers to Hong Kong in 2023, driven by the lifting of quarantine measures and the resumption of normal travel with mainland China[13]. Financial Position - As of December 31, 2022, the group had outstanding bank borrowings of approximately HKD 790.5 million, down from HKD 857.8 million as of December 31, 2021[47]. - The group's cash and bank balances as of December 31, 2022, were approximately HKD 63.3 million, a decrease from HKD 136.6 million as of December 31, 2021[47]. - The debt-to-asset ratio as of December 31, 2022, was approximately 44.6%, slightly improved from 45.3% as of December 31, 2021[47]. - The current ratio as of December 31, 2022, was approximately 0.08, down from 0.16 as of December 31, 2021, indicating a decrease in current assets[47]. - The net current liabilities as of December 31, 2022, were approximately HKD 738.2 million, compared to HKD 732.3 million as of December 31, 2021[48]. - The net asset value of the group as of December 31, 2022, was approximately HKD 1,026.3 million, a decrease of about 4.8% from HKD 1,078.4 million as of December 31, 2021[49]. Corporate Governance - The company has established a strong governance structure with a mix of executive and non-executive directors, ensuring effective oversight and strategic direction[145][148]. - The board consists of nine members, including three executive directors, three non-executive directors, and three independent non-executive directors, with independent directors making up over one-third of the board[166]. - The company has adopted the latest revised corporate governance code effective from January 1, 2022, and has complied with it throughout the reporting period[160]. - The board is responsible for leading and overseeing the company, making strategic decisions, and monitoring financial and operational performance[161]. - The company has independent non-executive directors with appropriate professional qualifications and expertise in accounting or related financial management[166]. - The company emphasizes the importance of promoting a corporate culture that adheres to legal, ethical, and responsible practices[161]. - The company has established a purpose, values, and strategy that align with its culture, as required by the new corporate governance code[161]. Risk Management - The company has established internal control systems and risk management procedures to monitor significant risks and achieve strategic objectives[133]. - The company is committed to implementing good corporate governance practices to protect shareholder interests, which is crucial for the group's success[159]. - The company has a strategic focus on risk management and compliance, as highlighted by Mr. Tang's role as Chief Risk and Compliance Officer[147]. Shareholder Information - The company did not recommend any dividend payment for the fiscal year 2022, consistent with the previous fiscal year[51]. - The company's available reserves for distribution to shareholders as of December 31, 2022, were approximately HKD 51,103,000, down from HKD 54,202,000 in 2021[91]. - There were no changes in the company's issued share capital during the reporting period[85]. - The company has not issued any new shares to existing shareholders as per its articles of association or Bermuda law[88]. Management and Leadership - The company appointed Ms. Gu as CEO effective January 15, 2021, who has over 24 years of experience in management and finance, and has been involved in transactions exceeding HKD 10 billion[145]. - The company has a strong management team with extensive experience in the financial industry, including Mr. Tang with over 16 years and Dr. Huang with over 21 years[147][148]. - The company emphasizes financial management and auditing, with Ms. Yu having over eight years of auditing experience and currently overseeing the finance department[152]. Audit and Compliance - The financial statements for the reporting period were audited by Ernst & Young, who are eligible and willing to be reappointed as auditors for the upcoming year[140]. - The audit committee held at least two meetings annually to review the company's interim and annual performance and ensure the effectiveness of internal controls and risk management systems[193]. - The audit committee reviewed the effectiveness of the group's internal control and risk management systems during the reporting period[200]. - The audit committee members possess deep experience in their respective professional fields, ensuring compliance with listing rules[197].
中昌国际控股(00859) - 2022 - 年度财报