Financial Performance - For the fiscal year 2023, the rental income from the group's investment properties in Hong Kong was approximately HKD 33.8 million, an increase of about 0.3% compared to HKD 33.7 million in fiscal year 2022[15]. - Total revenue for the fiscal year 2023 was approximately HKD 33.8 million, a slight increase of about 0.3% compared to HKD 33.7 million in fiscal year 2022[27]. - Other income for fiscal year 2023 was approximately HKD 3.3 million, up from HKD 1.1 million in fiscal year 2022, marking an increase of about HKD 2.2 million[28]. - The attributable annual loss for the fiscal year 2023 was approximately HKD 72.9 million, compared to a loss of about HKD 63.4 million in fiscal year 2022[39]. - The group's investment properties were revalued at HKD 1,731.1 million as of December 31, 2023, down from HKD 1,781.5 million in 2022, reflecting a fair value loss of HKD 50.4 million for the fiscal year 2023[35]. Operating Costs and Efficiency - The operating cost ratio for the fiscal year 2023 was 33.2%, significantly improved from 73.6% in the previous fiscal year[16]. - Employee costs decreased to approximately HKD 4.0 million in fiscal year 2023, down about 23.1% from HKD 5.2 million in fiscal year 2022[29]. - Other operating expenses were approximately HKD 7.3 million in fiscal year 2023, a significant reduction of about 62.8% from HKD 19.6 million in fiscal year 2022[32]. - Financial costs increased to approximately HKD 43.4 million in fiscal year 2023, a rise of about 96.4% from HKD 22.1 million in fiscal year 2022, primarily due to higher bank borrowing rates[36]. - The group implemented strict cost control measures in fiscal year 2023 to address economic challenges, resulting in reduced operating costs[32]. Market Conditions and Outlook - The occupancy rate of the investment property portfolio as of December 31, 2023, was approximately 84.6%, down from 89.7% as of December 31, 2022, primarily due to a weak overall market[15]. - The external environment remains challenging, with geopolitical tensions and a tightening financial environment impacting Hong Kong's economic recovery[10]. - The group maintains a cautious outlook for fiscal year 2024, focusing on optimizing its diverse merchant portfolio and strengthening tenant relationships[11]. - The group believes that the recovery of the tourism industry and government initiatives to promote large-scale events will increase visitor numbers to Hong Kong[10]. Financial Position and Debt - The group had outstanding bank and other borrowings of approximately HKD 870.9 million as of December 31, 2023, an increase from HKD 790.5 million in 2022[40]. - The group's debt-to-asset ratio as of December 31, 2023, was approximately 48.7%, up from 44.6% on December 31, 2022[41]. - The current ratio improved to approximately 0.14 as of December 31, 2023, compared to 0.08 on December 31, 2022, primarily due to the increase in cash and bank balances[41]. - The group's net current liabilities were approximately HKD 760.6 million as of December 31, 2023, compared to HKD 738.2 million on December 31, 2022[41]. - The net asset value of the group was approximately HKD 953.5 million as of December 31, 2023, a decrease of about 7.1% from HKD 1,026.3 million on December 31, 2022[43]. Corporate Governance - The company is committed to good corporate governance practices to protect shareholder interests, which is crucial for the group's success[142]. - The board consists of nine directors, including three executive directors, three non-executive directors, and three independent non-executive directors, with independent directors making up over one-third of the board[153]. - The company has established internal control systems and risk management procedures to monitor significant risks[118]. - The board has not established any corporate governance committee, and it is responsible for executing corporate governance functions[152]. - The company has adopted a board diversity policy since September 2013, recognizing the benefits of diverse perspectives[192]. Management and Employees - The company employed 5 employees as of December 31, 2023, down from 8 employees the previous year[65]. - The board of directors includes experienced members with over 17 years in investment and research, enhancing the company's strategic decision-making[127]. - 顾女士 appointed as CEO effective January 15, 2021, with over 24 years of experience in management and finance[128]. - The company encourages all directors to participate in training courses related to the business and regulatory environment, with costs covered by the company[169]. - The top five highest-paid employees' annual compensation details are as follows: 2 employees in the range of HKD 200,001 to 500,000, 2 employees in the range of HKD 500,001 to 1,000,000, and 1 employee in the range of HKD 1,000,001 to 1,500,000[174]. Shareholder Information - The board did not recommend any dividend payment for the fiscal year 2023, consistent with the previous fiscal year[45]. - The company's major assets are investment properties in Hong Kong, which directly contribute to its revenue and operational performance[118]. - The company has maintained sufficient public float as required by the Hong Kong Stock Exchange throughout the fiscal year 2023[81]. - As of December 31, 2023, China Cinda (Hong Kong) holds 843,585,747 shares, representing 74.98% of the issued share capital[109]. - Bonds & Sons Holdings Limited, along with its controlled entities, holds 111,642,295 shares, accounting for 9.93% of the issued share capital[109].
中昌国际控股(00859) - 2023 - 年度财报