Investment Properties Valuation - The fair value of investment properties decreased from HKD 1,363,347,000 on January 1, 2021, to HKD 1,279,793,000 on December 31, 2022, reflecting a total decline of HKD 83,554,000 over the two-year period[1]. - The fair value change of investment properties was a loss of HKD 26,377,000 for the year ended December 31, 2021, and a loss of HKD 57,177,000 for the year ended December 31, 2022[1]. - The fair value of investment properties as of December 31, 2022, is HKD 1,279,793,000, a decrease from HKD 1,336,970,000 in 2021, representing a decline of approximately 4.2%[30]. - The fair value of office properties in Hong Kong is HKD 826,200,000, down from HKD 867,800,000 in the previous year, indicating a decrease of about 4.8%[37]. - The fair value of retail properties in Hong Kong is HKD 453,593,000, compared to HKD 469,170,000 in 2021, reflecting a decline of approximately 3.3%[37]. - The total investment property fair value change for the year 2022 was a decrease of HKD 57,177,000, with office properties decreasing by HKD 41,600,000 and retail properties by HKD 15,577,000[42]. - The valuation of the company's investment properties was conducted by an independent professional valuer, ensuring adherence to the relevant valuation standards[2]. - The financial team of the company reviews the independent valuation reports every six months to ensure accuracy and compliance with valuation standards[4]. - The company continues to evaluate market conditions and property characteristics to optimize the valuation of its investment properties[31]. Financial Performance - The company reported a significant increase in the unit sale price for office properties, ranging from HKD 11,020 to HKD 43,439 per square foot, which could lead to a substantial increase in fair value[37]. - The group reported a pre-tax loss of HKD (35,688,000) in 2022, compared to a loss of HKD (5,114,000) in 2021[100]. - The group's operating cash flow before changes in working capital was HKD 21,601,000 in 2022, slightly up from HKD 21,272,000 in 2021[100]. - The total revenue from office property rental was HKD 20,450,000, while retail property rental revenue was HKD 13,002,000, and property management fee income was HKD 12,750,000, resulting in a total revenue of HKD 37,517,000 for the year[186]. - The total revenue for the previous year was HKD 37,616,000, indicating a slight decrease of 0.26% year-over-year[198]. - The segment loss for office properties was HKD 32,479,000, while retail properties reported a loss of HKD 8,181,000, leading to an overall segment loss of HKD 36,706,000[196]. - The company reported cash and bank balances with a fair value equivalent to their book value, with interest rates ranging from 0.5% to 5% for bank deposits[53][54]. Shareholder and Governance - As of December 31, 2022, major shareholders, including Mr. Wang, hold 75% of the issued share capital, amounting to 540,000,000 shares[63][67]. - The company has adopted a standard code of conduct for securities trading, confirming compliance by all directors for the fiscal year ending December 31, 2022[69]. - The company has a shareholder communication policy to ensure equal and timely access to information for shareholders[162]. - The company aims to ensure effective and timely communication of information to shareholders and potential investors[165]. - The company’s website provides updated information on its business activities and governance[170]. - The company has complied with the listing rules and established an audit committee on December 15, 2017, which reviewed the audited consolidated financial statements for the year ended December 31, 2022[122]. Environmental, Social, and Governance (ESG) - The board is committed to integrating environmental, social, and governance (ESG) principles into business operations, emphasizing the importance of managing related risks and opportunities[126]. - The company aims to balance the interests of all stakeholders, including employees, suppliers, customers, and the environment, in its daily operations[133]. - The company has identified significant ESG issues through stakeholder communication, including compliance with listing rules and corporate governance[136]. - The company plans to enhance transparency in its sustainability performance by disclosing more comprehensive ESG information in the long term[132]. - The board is responsible for overseeing the effectiveness of the ESG risk management and internal control systems[127]. - The company has established various communication channels to engage with stakeholders regarding its business success and sustainability performance[135]. - The company is committed to reducing waste and protecting the environment in response to regulatory expectations[133]. - Carbon emissions for the year 2022 were recorded at 35.94 tons of CO2 equivalent, slightly up from 35.59 tons in 2021, indicating a 0.98% increase[141]. - Carbon emissions density remained stable at 0.06 tons of CO2 equivalent per square meter of floor area for both 2021 and 2022[141]. - The company has implemented measures to promote a paperless office environment, significantly minimizing paper waste during administrative processes[142]. - The company has not reported any confirmed environmental violations or complaints during the reporting period[140]. - The company continues to educate employees on energy efficiency to reduce greenhouse gas emissions associated with electricity consumption[141]. Capital Structure and Financing - The company has secured a total of HKD 1 billion in unsecured revolving loan financing, with interest rates linked to the Hong Kong Interbank Offered Rate (HIBOR)[58][59]. - The company extended the loan financing agreement, with the new maturity date set for January 2, 2024, from the previous date of July 3, 2023[27]. - As of December 31, 2022, the group had no outstanding borrowings, a significant change from HKD 78,651,000 in borrowings reported at the end of 2021[116]. - Total borrowings as of December 31, 2022, were zero, compared to HKD 78,651 thousand in 2021[178]. - The company maintained a prudent liquidity risk management policy, ensuring sufficient cash and available credit facilities[172]. - The company actively reviews and manages its capital structure to enhance shareholder value[177]. Related Party Transactions - The independent non-executive directors confirmed that the ongoing related party transactions were conducted on normal commercial terms and in the best interest of shareholders[22]. - The company has complied with the disclosure requirements under the Listing Rules regarding related party transactions[23]. - Rental income and property management fee income from related companies remained stable at HKD 4,811,000 in 2022, compared to HKD 4,809,000 in 2021[107]. Assets and Liabilities - The total assets decreased from HKD 1,582,727,000 in 2021 to HKD 1,524,592,000 in 2022[113]. - The group's equity attributable to owners increased from HKD 1,082,758,000 in 2021 to HKD 1,083,775,000 in 2022[113]. - The group reported a decrease in total liabilities from HKD 499,969,000 in 2021 to HKD 440,817,000 in 2022[113]. - Current liabilities as of December 31, 2022, included other payables and accrued expenses totaling HKD 10,622 thousand[174]. - Other payables and accrued expenses totaled HKD 10,913,000 in 2022, down from HKD 13,043,000 in 2021, indicating a decrease of approximately 16.4%[57].
晋安实业(02292) - 2022 - 年度财报