Financial Performance - The total revenue from hotel operations for the year was approximately HKD 497 million, a decrease of about 13.7% compared to the previous fiscal year, primarily due to the ongoing impact of COVID-19 on the hotel business in Japan[8]. - The company reported a loss attributable to shareholders of approximately HKD 113.1 million, mainly due to poor performance in hotel operations affected by COVID-19, bad debt asset losses, and impairment losses on certain properties in Japan[8]. - The total revenue from hotel operations for the year was approximately HKD 49.7 million, a decrease of about 13.7% compared to HKD 57.6 million in the previous year, primarily due to the ongoing impact of COVID-19 and reduced average room rates[16]. - The company reported a loss attributable to shareholders of approximately HKD 113.1 million, an increase of 134.5% from a loss of HKD 48.2 million in the previous year[17]. - The basic loss per share for the year was approximately HKD 3.240, compared to HKD 1.381 in the previous year[18]. - The group recorded a loss from non-performing debt assets of approximately HKD 4.7 million for the year, a significant improvement from a loss of approximately HKD 14.6 million in 2020[24]. - The group reported a loss of HKD 115,769,344 for the year ending December 31, 2021, with current liabilities netting HKD 232,192,448[67]. - As of December 31, 2021, the group had interest-bearing bank borrowings of HKD 286,827,636, which need to be renewed and refinanced by January 2023[67]. - Cash and cash equivalents were only HKD 26,360,451 as of December 31, 2021, indicating significant liquidity issues[67]. Operational Challenges - The development of the Bintan resort project in Indonesia has been delayed, with completion now expected by the end of 2023 due to limited financial resources and ongoing supply chain disruptions caused by the pandemic[9]. - The company temporarily closed the hot spring hotel in Japan in May 2022 due to financial constraints and an inability to cover operating costs[15]. - The construction of the resort project in Bintan, Indonesia, has been delayed until the end of 2023 due to financial resource constraints and the impact of COVID-19 on the supply chain[21]. - The economic downturn and COVID-19 have negatively affected tourist numbers and corporate travel budgets, impacting occupancy rates and profitability[47]. - The hotel was repurposed as a quarantine facility from mid-April 2020 to mid-December 2021 due to COVID-19, leading to a temporary suspension of its accommodation services[148]. Recovery and Future Outlook - The company remains optimistic about the recovery of the hotel business post-COVID-19, believing that the adverse market conditions will gradually ease with widespread vaccination[10]. - The group maintains an optimistic outlook for future business growth, focusing on the development of Bintan land to contribute to revenue and enhance asset returns and corporate value[76]. - The group anticipates gradual improvement in the hotel operating environment as COVID-19 vaccination rates increase globally[128]. - The company is optimistic about resuming hotel operations as travel restrictions are eased and vaccination rates increase in Singapore[148]. Corporate Governance - The company is committed to high standards of corporate governance to align with shareholder interests[79]. - The board consists of eight members, including two executive directors, three non-executive directors, and three independent non-executive directors as of December 31, 2021[82]. - The board has confirmed the independence of all independent non-executive directors in accordance with GEM listing rules[83]. - The company has adhered to the GEM Listing Rules and corporate governance code throughout the year, ensuring compliance with regulatory standards[91]. - The company has not appointed a CEO this year, with responsibilities assumed by board members, ensuring a balanced distribution of power and authority[91]. Employee Management - The total employee cost for the year was approximately HKD 18.1 million, down from approximately HKD 24.3 million in 2020, reflecting a reduction in workforce to about 56 employees[33]. - The total number of employees as of December 31, 2021, was 19, a decrease from 32 in 2020, representing a reduction of 40.6%[186]. - Employee turnover rate in Singapore was 63% for 2021, with a notable 88% turnover rate for female employees[188]. - The company provided a total of 13 training hours to employees in 2021, a significant decrease from 1,337 hours in 2020 due to the impact of the COVID-19 pandemic[190]. - The company has implemented a robust performance evaluation system to ensure fair and objective assessments of employee performance[194]. Risk Management - The company has established an enterprise risk management framework to effectively implement risk management, which includes two key elements: risk management structure and risk management processes[105]. - The board of directors is responsible for ensuring the effectiveness of the enterprise risk management system and reviews it at least annually with the assistance of the audit committee[106]. - Management is responsible for identifying and monitoring risks related to daily operations, including strategic, operational, financial, reporting, and compliance risks[108]. - The company has implemented a three-year internal control review plan to effectively monitor and mitigate major risks[117]. Environmental and Social Responsibility - The company is committed to sustainable development, focusing on reducing its environmental footprint and addressing climate change through green goals[149]. - The company has implemented a supplier code of conduct to ensure compliance with environmental, social, and governance expectations[183]. - The company has prioritized local suppliers to reduce carbon footprint associated with transportation[183]. - The company has conducted environmental, social, and governance risk assessments to identify potential risks from major suppliers during the reporting period[183]. - The company has identified 21 relevant ESG issues through stakeholder feedback and industry trends, prioritizing them for strategic focus[168].
华星控股(08237) - 2021 - 年度财报