Financial Performance - The company recorded revenue of RMB 541.7 million for the fiscal year 2022, a decrease of 17.6% from RMB 657.8 million in the previous fiscal year due to the impact of COVID-19 and related restrictions[7]. - Net profit for the fiscal year 2022 was RMB 59.5 million, down 83.2% from RMB 354.7 million in the previous fiscal year[7]. - EBITDA decreased by 39.1% from RMB 38.73 million in FY2021 to RMB 23.58 million, consistent with the overall revenue decline[25]. - Current income tax decreased by 93.6% from RMB 2.38 million in FY2021 to RMB 0.15 million, primarily due to a reduction in taxable income[23]. - Net profit decreased by 83.2% from RMB 35.47 million in FY2021 to RMB 5.95 million[24]. Cost Management - Employee costs decreased by 15.9% to RMB 58.2 million from RMB 69.3 million in the previous fiscal year, attributed to team adjustments made in January 2022[13]. - Property and land use tax decreased by 11.1% to RMB 110.4 million from RMB 124.2 million, consistent with the reduction in total rental income[14]. - Maintenance and repair costs increased by 96.6% to RMB 5.8 million from RMB 3.0 million, due to waterproofing and air conditioning repairs in teaching buildings and student dormitories[15]. - Interest expenses increased by 41.4% from RMB 13.89 million in FY2021 to RMB 19.65 million due to bank borrowings in China[22]. - Other losses increased by 76.8% to RMB 65.5 million from RMB 37.1 million, primarily due to losses from the sale of utility assets[17]. Asset Management - As of June 30, 2022, total assets were RMB 1,682.40 million, with total liabilities and equity at RMB 434.66 million and RMB 1,247.75 million respectively[27]. - The debt-to-asset ratio decreased to 18.5% as of June 30, 2022, down from 22.7% a year earlier[28]. - Cash and cash equivalents decreased to RMB 4.71 million as of June 30, 2022, from RMB 28.10 million a year earlier[29]. - Fair value gains from investment properties decreased by 55.7% to RMB 227.8 million from RMB 514.2 million, mainly due to reduced fair value gains from properties in Langfang[21]. - The fair value of the group's investment properties is recorded at RMB 1,563,593,000 as of June 30, 2022, based on independent valuation by qualified valuers[199]. Business Strategy - The company plans to enhance business confidence by signing new education institution leases and constructing new facilities, expected to generate additional revenue in the second half of the fiscal year 2023[8]. - The company has committed RMB 10.18 million for renovations of two dormitories, expected to be completed before the first quarter of FY2023[38]. - The company is in the process of acquiring investment property in Mongolia for RMB 32.71 million, with RMB 18.01 million already paid[37]. - The main business of the company includes investment holding and leasing educational facilities primarily to institutions in China, Malaysia, and Indonesia[62]. - The company’s subsidiaries focus on commercial leasing of supporting facilities in addition to educational facility leasing[62]. Shareholder Relations - The company expressed gratitude to shareholders for their support and acknowledged the contributions of employees and partners during the challenging fiscal year 2022[9]. - The board recommended not to pay any dividends for the fiscal year 2022, consistent with the previous fiscal year[46]. - The company has maintained a sufficient public float, with at least 25% of the issued shares held by the public throughout the fiscal year 2022[84]. - The company communicates with shareholders through annual general meetings, quarterly reports, and press releases[185]. - The board will regularly review the dividend policy, with no predetermined dividend payout ratio established[184]. Governance and Compliance - The board of directors consists of two executive directors and three independent non-executive directors, supported by four committees for effective governance[142]. - All independent non-executive directors confirmed their independence according to GEM listing rules, ensuring compliance with governance standards[147]. - The company has not reported any significant non-compliance with relevant laws and regulations that could impact its operations for the fiscal year 2022[105]. - The company has established procedures for handling insider information and ensuring compliance with relevant regulations[180]. - The independent auditor for the fiscal year 2022 was Lixin Dehao, with a resolution for reappointment to be presented at the annual general meeting[134]. Risk Management - The company has established a framework for risk management to support strategic transactions and assess risk impacts[168]. - The board is responsible for establishing and maintaining the internal control and risk management systems, with no immediate need for an internal audit function identified[176]. - The external internal control consultant reported no significant issues requiring improvement during the 2022 fiscal year[176]. - The Risk Management Committee conducted two meetings in the fiscal year 2022 to review risk management systems and discuss related issues[168]. - The audit committee conducted four meetings in the fiscal year 2022 to review and monitor the group's financial reporting procedures and internal control systems[157]. Employee Relations - The company had 29 full-time employees in China as of June 30, 2022, down from 49 employees the previous year[45]. - The company has not encountered any significant issues with employees or labor disputes that could disrupt operations[128]. - The remuneration range for senior management (excluding directors) in the fiscal year 2022 included 2 individuals earning between 0 to 500,000 RMB and 1 individual earning between 500,001 to 1,000,000 RMB[173]. - The remuneration policy for directors and senior management is reviewed based on the group's performance, individual performance, and market practices[82]. - The company has adopted a share option scheme to provide incentives to directors and eligible employees[82]. Environmental and Social Responsibility - The group made charitable donations of RMB 1 million in the fiscal year 2022, compared to RMB 0.5 million in the fiscal year 2021[75]. - The company has implemented various environmental measures, including energy-saving initiatives and promoting environmental awareness among students and staff[127]. - The company has adhered to the corporate governance code as per GEM listing rules, ensuring accountability and enhancing shareholder value[137]. - The board adopted a diversity policy for selecting candidates, emphasizing the importance of diverse skills, experience, and knowledge[149]. - All directors participated in continuous professional development activities during the fiscal year, enhancing their knowledge of corporate governance and relevant regulations[152].
东方大学城控股(08067) - 2022 - 年度财报