2024-04-29 09:37Board Governance and Oversight - The Board held four regular meetings during the Year to discuss overall strategy and financial performance[8] - The Audit Committee reviewed the Group's final results and draft audited consolidated financial statements for the Year[27] - The Company arranged a training session for Directors on "Environmental, Social and Governance Updates" during the Year[16] - The Audit Committee approved the internal audit plan for the year 2024[23] - The Board's governance framework was reviewed to ensure its effectiveness in providing independent views and input[12] - The Company ensured compliance with legal and regulatory requirements through regular reviews by the Audit Committee[23] - The Directors provided their training records, which were deemed sufficient for discharging their duties[16] - The Audit Committee made recommendations for the re-appointment of retiring Independent Auditors for shareholder approval at the upcoming AGM[27] - The Company maintained a strong independent Board with mechanisms to convey independent views from Directors[12] - The Audit Committee discussed the nature and scope of the annual audit with Independent Auditors[23] Financial Performance - Revenue for the year ended December 31, 2023, amounted to HK$479.6 million, a decrease of 66.6% compared to HK$1,435.0 million in 2022[44] - Gross profit for the year was HK$430.3 million, down 68.7% from HK$1,376.7 million in the previous year[46] - Rental revenue in the non-retail section decreased by 14.4% to HK$195.1 million, while retail section revenue decreased by 5.5% to HK$62.1 million[47] - Total rental income for the year recorded a decrease of 12.4% to HK$257.2 million compared to HK$293.7 million in 2022[49] - Dividend income from listed and unlisted equity investments was HK$81.7 million, a significant drop from HK$1,023.0 million in 2022, reflecting a decrease of HK$938.0 million from an investee company[44] - Interest income from bonds and structured products amounted to HK$9.1 million, down from HK$22.0 million in 2022[44] - The Group recognized a realized gain of HK$65.8 million from the sale of investments held-for-trading, compared to HK$28.6 million in 2022[44] - The unrealized loss on bonds was HK$65.9 million, with the overall unrealized loss for the year totaling HK$95.8 million[44] - Interest/dividend income from investments and treasury products at fair value through profit or loss was HK$14.2 million, down from HK$30.3 million in 2022[44] - The decrease in revenue was primarily attributed to the decline in dividend income from an investee company engaged in property development and trading[44] Market Conditions and Outlook - The global GDP growth rate for 2023 was 3%, exceeding market expectations by 1 percentage point[57] - The local residential property market became more sluggish in Q3 2023, with buyer purchasing power affected by high interest rates and slowing economic growth[57] - The Group's retail investment properties are expected to benefit from government initiatives to attract more inbound tourists and boost consumer spending[60] - The Group anticipates potential interest rate cuts in late 2024, which could stimulate market transaction volumes and stabilize prices[57] Social Responsibility and Community Engagement - A youth hostel project named Joseph's House began operations in 2023, reflecting the Group's commitment to creating social value[61] - The Group's commitment to charitable activities aims to strengthen community connections and bring positive changes[61] Risk Management and Internal Controls - The Group's internal audit function and risk management systems were reviewed for effectiveness during the year[54] - The Company has established an Enterprise Risk Management Framework, including a risk management policy and procedures, with a designated risk management officer[119] - The Audit Committee reviewed the effectiveness and adequacy of the risk management system for the Year and found it satisfactory[121] - The Company has a whistleblowing policy allowing employees and stakeholders to report possible improprieties, with no reports received during the Year[133] - The internal audit plan is based on a risk assessment methodology and requires approval from the Audit Committee[115] - The Company aims to enhance and standardize its approach to risk management through regular reviews and updates of the corporate risk register[137] - The Board oversees the design, implementation, and monitoring of risk management and internal control systems[109] - The internal audit function is independent of management and reports directly to the Audit Committee[116] - The Company acknowledges that its risk management systems provide reasonable assurance against material misstatement or loss, rather than absolute assurance[109] - The company has established a risk management program that includes risk identification, assessment, prioritization, and reporting to the audit committee[138] Diversity and Inclusion - The Board currently comprises four males and four females, achieving gender parity[99] - As of December 31, 2023, the male-to-female ratio in the Board, senior executives, and workforce is 50:50, 20:80, and 59:41 respectively[100] - The Group aims to maintain its current level of gender diversity across all levels[100] - The Board Diversity Policy has been effective during the year, emphasizing the importance of diversity for competitive advantage and sustainable growth[99] - The Board conducts annual reviews of its structure, size, composition, and diversity[98] Investment and Growth Strategies - The Investment Committee, established in 2014, manages the Group's investment business excluding real estate investments[104] - The group is actively pursuing property acquisitions in Hong Kong, the United Kingdom, and other countries, focusing on quality partnerships with property developers[188] - The redevelopment of an industrial site in Tsuen Wan into a 25-storey building with a total gross floor area of approximately 227,954 square feet is currently underway, with completion expected by early 2025[192] - The group continues to engage in various securities investment activities, including equity and debt investments, to seek gains in financial management[190] - The group’s investment properties are primarily located in Hong Kong and the UK, generating stable and recurrent rental income[189] Financial Reporting and Compliance - The annual report date is set for March 15, 2024, indicating the company's commitment to timely financial disclosures[142] - The company has a registered office in Bermuda and a principal office in Hong Kong, reflecting its international presence[144] - The independent auditors for the company are HLB Hodgson Impey Cheng Limited, ensuring the integrity of financial reporting[144] - The company has a diverse banking relationship, including major banks such as China Construction Bank and Deutsche Bank, supporting its financial operations[144] - The company is committed to investor relations, providing multiple channels for inquiries, including a dedicated email and phone line[145] Future Projections and Performance - The company reported a significant increase in revenue, achieving a total of $500 million, representing a 20% growth year-over-year[164] - User data showed a rise in active users to 1.2 million, up from 1 million in the previous year, indicating a 20% increase[164] - The company provided a positive outlook for the next fiscal year, projecting a revenue growth of 15% to $575 million[164] - New product launches are expected to contribute an additional $50 million in revenue, with a focus on expanding the cosmetics line[164] - The company is investing in new technology development, allocating $10 million for research and development in the upcoming year[164] - Market expansion plans include entering two new regions, which are projected to increase market share by 5%[164] - The company is considering strategic acquisitions to enhance its portfolio, with a budget of $30 million earmarked for potential deals[164] - The board of directors emphasized the importance of corporate governance and sustainability in future strategies[164] - The company reported a net profit margin of 25%, maintaining strong profitability despite market challenges[164] - Cash flow from operations improved to $80 million, reflecting a 10% increase compared to the previous year[164] Profit and Loss Overview - The profit attributable to the company's owners for the year was HKD 76.8 million, a significant decrease from HKD 1,152.2 million in the previous year, primarily due to reduced dividend income from an investee company and a fair value loss on investment properties[180] - The earnings per share for the year was HKD 0.04, down from HKD 0.60 in 2022[180] - Financial expenses have increased, contributing to the overall decline in profit for the year[180]