Financial Performance - The Group's revenue for the year ended December 31, 2021, was HK$38,166,000, a decrease of HK$13,085,000 or 25.53% compared to HK$51,251,000 in 2020[35] - The loss for the year amounted to HK$1,563,052,000, representing an increase of HK$1,506,402,000 from the previous year's loss of HK$56,650,000[35] - The impairment losses on loans and interest receivable for the current year were HK$74,370,000, compared to HK$4,551,000 in the previous year, primarily due to a default on a senior note[35] - The share of loss of associates for the current year was HK$907,000, compared to HK$69,029,000 in the previous year[35] - Loss per share amounted to HK$125.98 cents, while the net asset value per share was HK$1.29 as of December 31, 2021, down from HK$3.50 in 2020[35] - The Group's total assets decreased from HK$4,544,502,000 to HK$1,791,326,000[39] - The net assets of the Group declined from HK$4,345,919,000 to HK$1,605,421,000[39] - The total liabilities of the Group decreased from HK$198,583,000 to HK$185,905,000[39] - As of December 31, 2021, the Group had cash and bank balances of HK$119,853,000[39] - The ratio of total liabilities to total assets was approximately 10.38%[39] - The Group's current assets amounted to HK$269,058,000, exceeding current liabilities by HK$246,861,000[39] Dividend Policy - The Board of Directors does not recommend the payment of a dividend for the year ended December 31, 2021[35] - A special dividend of HK$0.95 per ordinary share was resolved, amounting to approximately HK$1,178,635,000, which was paid on December 6, 2021[35] - The Group does not recommend the payment of a dividend for the year ended 31st December 2021, with the 2020 interim dividend being Nil[160] - The Board will regularly review and amend the Dividend Policy as necessary[145] - The Board has adopted a Dividend Policy effective from January 1, 2019, aimed at providing reasonable and sustainable returns to Shareholders while maintaining financial stability[147] - The ability to declare or propose dividends is subject to consideration of the Company's and Group's operating results, accumulated and future earnings, and external factors impacting financial performance[148] Corporate Governance - The company is committed to high standards of corporate governance, emphasizing transparency and accountability[84] - The company has adopted enhanced corporate governance procedures as detailed in the report[87] - The company has complied with the applicable code provisions of the Corporate Governance Code during the year ended December 31, 2021[88] - The Board comprises seven directors, including four Executive Directors and three Independent Non-Executive Directors[86] - The Board held eight meetings during the year, discussing overall strategy and financial performance[89] - All Independent Non-Executive Directors confirmed their independence under the guidelines of the Listing Rules[88] - The Company ensures compliance with legal and regulatory requirements through regular reviews of its policies and practices[106] - The Board is responsible for developing and reviewing the Company's corporate governance policies and practices[106] - The Company adopted a board diversity policy in August 2017 to achieve balanced diversity at the Board[102] - The Company Secretary assists the Chairman in preparing the agenda and ensures compliance with applicable rules and regulations[95] Risk Management - The Group has adopted a comprehensive risk management framework, regularly reviewing and updating risk management policies and procedures in response to market conditions and business strategy[155] - Financial risks include market risk, credit risk, and liquidity risk, with further details outlined in note 30(b) of the consolidated financial statements[155] - The Group's risk management and internal control systems are designed to provide reasonable assurance against material misstatement or loss[129] - The internal audit function reports to the Chairman of the Board and the Audit Committee, analyzing the adequacy and effectiveness of the Group's risk management and internal control systems[129] - The Audit Committee ensures that management has established effective risk management and internal control systems[119] Operational Performance - The average occupancy level of commercial properties at Harbour Crystal Centre was approximately 96%[37] - The Group granted rent concessions averaging around 40% of original rents to some tenants, resulting in decreased rental income[37] - The average occupancy level of industrial properties held by the associate was approximately 50%[37] - The Group's operational KPIs for 2021 aimed to maintain total rental income from investment properties at the same level as the previous year, which was not achieved due to the COVID-19 outbreak[41] - The Group expects the dramatic rise in COVID-19 cases in Hong Kong to negatively impact business performance, particularly in retail spaces[51] Future Outlook - For 2022, the company plans to improve its investment portfolio by acquiring quality properties at attractive valuations and disposing of under-performing properties[43] - The Group remains optimistic about long-term business prospects in Hong Kong, anticipating a return to normal international travel and reopening of borders with mainland China by year-end[54] - The office leasing market is expected to show weak demand, with lower leasing rates anticipated for the Group's office space in Billion Centre[52] Employee Welfare - A special cash incentive was offered to employees who completed two vaccinations by July 31, 2021, as part of the Group's response to the COVID-19 pandemic[50] - Employees in Hong Kong are provided with medical insurance and some are included under a defined contribution provident fund scheme[185] - The remuneration policy for directors and employees is competitive and performance-related bonuses are provided[185] Audit and Compliance - The Audit Committee is chaired by an INED with appropriate professional qualifications, ensuring independence and objectivity[119] - The Audit Committee reviewed and approved the audit scope and fees for the interim results review for the six months ended June 30, 2021, and the final audit for the year ended December 31, 2021[123] - The auditor's report emphasizes the importance of evaluating the appropriateness of the going concern basis of accounting, indicating potential material uncertainties that may affect the group's ability to continue operations[198] - The auditor must report any significant deficiencies in internal control identified during the audit to those charged with governance[198] Shareholder Engagement - The Company ensures effective communication with Shareholders through various formal channels, including interim and annual reports[139] - The attendance records of Directors at the general meetings are documented in the corporate governance report[139] - The Chairman actively participates in the AGM to address Shareholder inquiries[139] - The Company welcomes Shareholder feedback to improve transparency and corporate governance practices[146]
亚证地产(00271) - 2021 - 年度财报