Financial Performance - The group reported a net loss of approximately HKD 181.7 million for the year ended September 30, 2023, compared to a profit of HKD 14.8 million in the previous year[4]. - Excluding non-operating items, the group's operating profit for the year was approximately HKD 59.7 million, down from HKD 67.8 million in 2022, representing a decrease of about 16%[4]. - The company reported a net loss of HKD 181,736,000 for the year, compared to a profit of HKD 13,394,000 in the previous year, indicating a significant decline in profitability[187]. - The company incurred total comprehensive losses of HKD 187,338,000 for the year, compared to a total comprehensive loss of HKD 1,586,000 in the previous year[187]. - Earnings per share for the year were reported at HKD (1.65), a decrease from HKD 0.13 in the previous year, indicating a substantial drop in earnings[187]. - Other income and gains for the year totaled HKD 13,529,000, down from HKD 15,753,000 in the previous year, showing a decline of approximately 14.1%[187]. - Employee expenses increased to HKD 31,329,000 from HKD 31,110,000, reflecting a slight rise of about 0.7%[187]. - The company reported a financial asset impairment loss of HKD 143,932,000, compared to a gain of HKD 32,125,000 in the previous year, indicating a significant negative shift[187]. Revenue and Income - Total revenue for the year was HKD 180,022,000, an increase from HKD 163,550,000 in the previous year, representing a growth of approximately 10.0%[187]. - The rental income from investment properties in Hong Kong slightly increased compared to the same period last year, contributing significantly to the group's operating profit[77]. - The rental income from commercial and industrial properties rose by 9.8%, attributed to the inclusion of rental income from the Mong Kok industrial property during the review period[78]. - Rental income from residential properties decreased by 4.1% due to strict quarantine measures during the COVID-19 pandemic, affecting the number of expatriate tenants[69]. Investments and Financial Strategy - The group has invested USD 7.5 million in the Adams Street Private Income Fund LP, with an investment valuation of USD 6 million as of September 30, 2023[6]. - The group committed USD 2 million to the Hundreds SH Fund LP, with an investment valuation of USD 400,000 as of September 30, 2023[18]. - The group has invested approximately HKD 34.9 million in the TKO Fund, with an investment valuation of HKD 44.5 million as of September 30, 2023[70]. - The group holds a high-yield stock investment portfolio and other investment products, evaluating investment opportunities based on potential capital appreciation and dividend distribution[80]. - The group plans to monetize cumulative profits from a property development project in mainland China through a public tender process, which began at the end of 2022 and will continue until the end of 2023[82]. - The total debt of the group as of September 30, 2023, is HKD 384.44 million, an increase from HKD 314.4 million in 2022[130]. - The debt-to-equity ratio as of September 30, 2023, is 7.3%, up from 5.7% on the same date in 2022[132]. Corporate Governance and Compliance - The board has revised and adopted an anti-corruption code of conduct to ensure compliance with applicable anti-corruption laws and regulations[115]. - The company is committed to compliance with anti-corruption policies and has implemented training programs for directors and employees[29]. - The company has established three committees: the Remuneration Committee, Audit Committee, and Nomination Committee to oversee specific aspects of its operations[171]. Sustainability and Community Engagement - The company is committed to enhancing energy efficiency and utilizing resources better to achieve sustainable development[48]. - The company has implemented smart energy-saving IoT systems in its properties, allowing tenants to monitor and control their environments via mobile devices[48]. - The company has sponsored the Business Environment Council and WWF Hong Kong to promote smart and environmentally responsible building practices[48]. - The company aims to create a safe, diverse, and inclusive work environment by adhering to local labor laws and promoting equal opportunities[48]. - The company is focused on community engagement and aims to positively impact the community by fostering a culture of care and support[48]. - Charitable donations amounted to HKD 32,000, focusing on environmental protection and community health initiatives[55]. - The company reported a commitment to reducing its ecological footprint while enhancing climate resilience[48]. Market Conditions and Economic Outlook - The overall financial performance reflects challenges such as rising debt levels and instability in the real estate market, but the group remains committed to its investment strategies[18]. - The overall economic recovery in Hong Kong remains hindered by external factors such as monetary tightening and geopolitical tensions, despite some signs of pre-pandemic activity returning[83]. - The company maintains a cautiously optimistic outlook on the long-term prospects of the Hong Kong real estate market, supported by favorable macroeconomic fundamentals[20]. - Recent government initiatives to attract foreign talent and establish greater business partnerships in the Middle East and Southeast Asia have led to an increase in leasing inquiries from expatriates[20]. Employee and Operational Metrics - The average training hours for employees were 1.5 hours, with a male-to-female ratio of 2:1, and the group maintained zero work-related injuries and fatalities[55]. - The average training hours for employees increased from 1.3 hours to 1.5 hours year-on-year[163]. - The group has established a comprehensive employee benefits program, including health and safety measures, with no reported strikes or fatal workplace accidents during the year[128]. - The company contributed approximately HKD 930,000 to the Mandatory Provident Fund scheme this year, compared to HKD 975,000 in the previous year[155]. Asset Valuation and Financial Position - The total valuation of various investment properties decreased by 5%, amounting to approximately HKD 215 million, influenced by transaction prices and rental yield[72]. - The group generated a revaluation loss of approximately HKD 214.9 million, compared to a loss of HKD 27.2 million in the previous year[68]. - The group reported a share of losses from joint ventures amounting to approximately HKD 5.2 million, up from HKD 3.7 million in the previous year[68]. - As of September 30, 2023, total assets minus current liabilities amounted to HKD 5,307,930,000, a decrease from HKD 5,534,643,000 in 2022[188]. - The company's total reserves as of September 30, 2023, were approximately HKD 5,104,120,000, down from HKD 5,335,745,000 in 2022, reflecting a decrease of about 4.3%[189]. - Current liabilities increased to HKD 441,170,000 in 2023 from HKD 373,382,000 in 2022, representing an increase of approximately 18.1%[188]. - The company's equity attributable to owners decreased to HKD 5,104,120,000 in 2023 from HKD 5,335,745,000 in 2022, reflecting a decline of approximately 4.3%[188].
博富临置业(00225) - 2023 - 年度财报