Financial Performance - The company reported a loss attributable to equity holders of HKD 733,000 for the year ended December 31, 2023, compared to a loss of HKD 3,689,000 in 2022, indicating a narrowing of losses [11]. - The overall market performance in 2023 was significantly worse compared to pre-pandemic levels, with registered transactions down 49%, 47%, and 35% for industrial, office, and retail properties respectively compared to the average from 2015 to 2019 [13]. - The company’s investment properties faced impairment losses due to declining property prices, impacting overall performance [11]. - The group did not recommend any dividend payment for the year ended December 31, 2023, consistent with the previous year [164]. - The group’s financial performance for the year ended December 31, 2023, is detailed in the consolidated income statement [163]. Market Trends and Challenges - The number of registered industrial property transactions decreased from 2,501 in 2022 to 2,063 in 2023, while office registrations slightly fell from 817 to 811, and retail shop registrations dropped from 1,176 to 1,032 [13]. - The company anticipates a slight improvement in the Hong Kong non-residential property market in 2024, although recovery will be constrained by various adverse factors [16]. - The overall non-residential property market is facing challenges, but the group anticipates a slight improvement in transaction volume if market sentiment stabilizes [19]. - The company noted that the anticipated "revenge spending" did not materialize as many Hong Kong residents chose to travel abroad, negatively impacting local businesses [12]. - The retail sector in Hong Kong is anticipated to improve with the expansion of the individual visit scheme for mainland residents, although significant short-term reversals are unlikely [18]. Business Operations and Strategy - The company’s non-agency business continued to perform well, with property rental operations maintaining high occupancy rates and a slight increase in rental income due to strong demand in Hong Kong [14]. - The company faced challenges in its lending business due to rising interest rates and market competition, but managed to maintain a low level of non-performing loans through prudent risk management [14]. - The rental demand in Hong Kong was bolstered by the successful recruitment of over 130,000 new applicants under the government’s talent recruitment program [14]. - The group plans to leverage the "New Capital Investor Entry Plan" to provide suitable non-residential property investment opportunities for qualified investors [19]. - If interest rates decline as expected, the group's lending business will benefit, leading to increased demand for mortgage services [21]. Corporate Governance - The board consists of seven members, including four executive directors and three independent non-executive directors [38]. - The company emphasizes strong corporate governance practices to enhance shareholder value and protect shareholder interests [33]. - The board held four regular meetings during the year ending December 31, 2023, to discuss and approve significant matters, including interim and annual results [42]. - The company has established a mechanism to ensure independent views and advice are available to the board when necessary [36]. - The chairman and CEO roles are distinctly separated to ensure effective governance [40]. Risk Management and Compliance - The company has established a risk management and internal control system, with the board responsible for its effectiveness, ensuring reasonable assurance against material misstatements or losses [70]. - The internal audit department reports directly to the audit committee, conducting regular audits to ensure the effectiveness of financial, operational, and compliance controls [71]. - The company has implemented strict anti-bribery and anti-corruption policies, with training provided to employees on compliance and ethical standards [104]. - The company adheres to various laws and regulations, including the Sales of Goods Ordinance and the Estate Agents Ordinance, with no significant violations reported during the fiscal year [115]. - The company has established a whistleblowing policy to allow employees and stakeholders to report unethical behavior confidentially [105]. Environmental, Social, and Governance (ESG) Initiatives - The company emphasizes the importance of sustainability and has integrated environmental, social, and governance (ESG) considerations into its daily operations [97]. - The board of directors is responsible for overseeing the management of environmental, social, and governance (ESG) matters, ensuring long-term sustainability goals are met [104]. - The company has established policies that incorporate ESG management into its business operations, covering various aspects including environmental management and green procurement practices [97]. - The company has been recognized for its contributions to promoting a healthy work-life balance and creating a positive work environment, receiving the "Corporate Wellness Award" for two consecutive years [91]. - The company has identified and reviewed 16 key ESG issues relevant to its operations, ensuring alignment with industry trends and external changes [111]. Employee Development and Community Engagement - The company emphasizes employee development through specialized training programs tailored to different job roles, including frontline and back-office staff [122]. - A digital learning management system has been developed to provide flexible training opportunities for employees, enhancing engagement through bite-sized online courses [124]. - The company has provided internship opportunities for local graduates, encouraging them to explore future career development [89]. - The company donated approximately HKD 134,000 and provided about 81 hours of volunteer service to support local community development in the reporting year [140]. - The company has received multiple awards for corporate social responsibility, including recognition as a "Happy Enterprise" in 2023 [153]. Shareholder Relations and Capital Management - The group emphasizes the importance of maintaining good relationships with key stakeholders, including employees, customers, and shareholders [168]. - The group has adopted a dividend policy that considers operating performance, cash flow, financial condition, and shareholder interests when deciding on dividend payments [165]. - As of December 31, 2023, the company's distributable reserves amounted to HKD 910,209,000, slightly up from HKD 908,961,000 in 2022 [181]. - The company did not purchase, sell, or redeem any of its listed securities during the year ending December 31, 2023 [183]. - Major shareholders include Luck Gain and Wealth Builder, each holding 58.55% of the voting shares as of December 31, 2023 [195].
鋑联控股(00459) - 2023 - 年度财报