Financial Performance - The Group's revenue for the year ended December 31, 2021, was approximately HK$3,157,000, a significant decrease from approximately HK$127,414,000 for the year ended December 31, 2020, representing a decline of about 97.5%[21]. - The loss attributable to owners of the Company for the year ended December 31, 2021, was approximately HK$581,677,000, compared to a loss of approximately HK$278,857,000 for the previous year, indicating an increase in loss of about 108.7%[21]. - The loss arising on change in fair value of investment properties amounted to approximately HK$24,944,000, down from approximately HK$77,966,000 in 2020[21]. - The impairment loss recognized in respect of property, plant, and equipment was approximately HK$113,999,000, an increase from HK$87,937,000 in 2020[21]. - The impairment loss recognized in respect of financial assets under expected credit losses model was approximately HK$192,300,000, compared to HK$40,723,000 in 2020, reflecting a significant increase[21]. - The share of losses of associates amounted to approximately HK$169,558,000, up from HK$144,569,000 in 2020[21]. - The underlying current ratio as of December 31, 2021, was approximately 0.55, a decrease from 1.72 in 2020, reflecting a decline in liquidity[46]. - The Group's equity attributable to owners of the Company was a deficit of approximately HK$80,917,000, a decrease of approximately 117% from HK$483,087,000 at the end of the previous year[47]. - The net current liabilities as of December 31, 2021, were approximately HK$173,265,000, compared to net current assets of HK$153,450,000 in 2020[47]. - Cash and cash equivalents were only approximately HK$1,862,000 as of December 31, 2021[169]. Impact of COVID-19 - The COVID-19 pandemic has negatively impacted the Group's business activities and contributed to deteriorating macroeconomic conditions during the financial year[20]. - The Company has continued to face challenges due to government-imposed restrictions and lockdowns affecting business operations[20]. - The Group's overall performance has been negatively impacted by the COVID-19 pandemic, leading to a conservative approach in its business strategies[26]. - The Group adopted a more conservative view and strategy in property development and investment due to the uncertain atmosphere in the PRC real estate market caused by the ongoing COVID-19 pandemic[26]. - The Group will adopt a more conservative view and strategy regarding property development and investment due to the ongoing economic challenges posed by COVID-19[42]. Corporate Governance - The Company has complied with all provisions of the Corporate Governance Code for the year ended December 31, 2021, except for certain deviations regarding insurance cover for directors and the separation of roles between the chairman and CEO[73]. - The Board comprises three executive directors and three independent non-executive directors, with two independent directors having served for more than nine years and subject to re-election[80]. - The Company does not currently have an internal audit function, as the Board believes there is no immediate need based on the size and complexity of the business[78]. - The Company is committed to maximizing shareholder value and enhancing transparency, accountability, and independence[72]. - The Board has a range of necessary skills and experiences to discharge their duties effectively[84]. - The Company will review its corporate governance practices regularly to improve effectiveness[72]. - The Board held a total of four board meetings during the financial year, with a 100% attendance rate for all directors[92]. - Independent non-executive directors (INEDs) represented at least one-third of the Board as of December 31, 2021, in compliance with Listing Rules[96]. - The Company has mechanisms in place to ensure independent views are available to the Board, including obtaining independent professional advice[89]. - The Board conducts regular and ad hoc meetings to monitor senior management performance and ensure compliance with statutory requirements[90]. Risk Management - The Board reviewed significant risks, including ESG risks, and the Company's ability to respond to changes in the business environment[191]. - The management is responsible for the ongoing design and monitoring of the risk management and internal control systems, which are reviewed annually for effectiveness[193]. - The Group has established procedures to identify and manage significant risks, with annual reviews conducted by the Board[194]. - The management identifies risks by considering internal and external factors, assessing and prioritizing them based on impact and occurrence[197]. - The internal control systems aim to reduce risks and minimize adverse impacts, providing reasonable assurance against material misstatement[198]. - Significant internal control deficiencies are reported to the Board for prompt remediation actions[199]. - For the year ended December 31, 2021, the risk management and internal control systems were deemed reasonably effective and adequate[200]. Business Strategy - The Group plans to continue identifying and exploring thriving business opportunities in the natural gas sector both in the PRC and globally to further develop this business area[26]. - The Company is exploring various business opportunities to increase cash inflow and improve its financial position[174]. - The Group is actively negotiating to repay outstanding liabilities and collect account receivables[175]. - Cost-saving measures are being enforced to minimize expenses, including administrative and operating costs[176]. - The Company is in negotiations regarding potential debt capitalisation to reduce debt and increase the shareholder base[182]. - The Group is seeking fundraising opportunities such as rights issues and placements of new shares, depending on market conditions[183]. - The consolidated financial statements for the year ended December 31, 2021, have been prepared on a going concern basis, assuming successful implementation of the above measures[184]. Remuneration and Board Diversity - The Remuneration Committee reviewed the remuneration packages of Directors and senior management, including discretionary bonuses based on individual performance and the Group's profitability[126]. - The Remuneration Committee met once during the financial year to determine specific remuneration packages for executive Directors and senior management[127]. - The Company has a commitment to gender diversity, currently having one female director, with plans to increase this proportion over time[105]. - The Group employed 14 individuals during the financial year, with approximately 50% being female, indicating a commitment to gender diversity in recruitment[107]. - The Board Diversity Policy aims to achieve a balanced mix of skills, experience, and perspectives to enhance decision-making effectiveness[100]. - The Nomination Committee reviewed the Board Diversity Policy and measurable objectives at least annually to ensure effectiveness[106]. - The company’s diversity policy aims for gender equality on the Board, with a commitment to increasing the proportion of female members when selecting candidates[110].
中国基建投资(00600) - 2023 - 年度业绩