Financial Performance - The company achieved a total revenue of approximately RMB 644.5 million in 2024, representing a year-on-year growth of about 1.5%[13]. - The profit attributable to shareholders was approximately RMB 154.5 million, a decrease of about 9.7% year-on-year, with earnings per share of RMB 0.1525[13]. - The company declared a final dividend of HKD 0.083 per share, with a total annual dividend of HKD 0.131 per share, resulting in a payout ratio of approximately 80%[13]. - The company's gross profit for the fiscal year was approximately RMB 297.9 million, a decrease of about 10.7% year-on-year, with a gross margin of 46.2%[64]. - Revenue from entrusted management services was approximately RMB 426.5 million, accounting for 66.2% of total revenue, with a year-on-year increase of about 5.0%[62]. - Revenue from brand and management output services decreased by approximately 34.0% to RMB 95.7 million, representing 14.8% of total revenue[62]. - Revenue from leasing services increased by approximately 46.3% to RMB 122.3 million, accounting for 19.0% of total revenue[62]. - Other income for the fiscal year was approximately RMB 37.0 million, a decrease of about 13.4% due to lower bank interest income[66]. - Selling expenses increased by approximately 30.7% to RMB 26.4 million, primarily due to increased marketing activities for new projects[70]. - Administrative expenses were approximately RMB 75.4 million, remaining relatively stable compared to the previous year[71]. - The group's profit for the year ending December 31, 2024, was approximately RMB 148.4 million, a decrease of about 8.6% compared to RMB 162.3 million for the year ending December 31, 2023[75]. Operational Strategy - The company is focusing on the Greater Bay Area and Yangtze River Delta as core development regions, enhancing brand influence and competitiveness[14]. - New projects are being prepared, such as the Shenzhen Guangming Star River COCO City, to expand the commercial footprint[14]. - The company is committed to optimizing project quality, enhancing operational standards, and introducing innovative business formats[15]. - The Shenzhen Futian Star River COCO Park has introduced numerous first-store brands, improving space utilization and creating a high-quality shopping environment[15]. - The group aims to enhance its digital management platform to improve data-driven decision-making and provide precise marketing tools for merchants[21]. - The group has implemented a comprehensive digital management system, integrating ERP, smart cash register, and business intelligence analytics to support merchants[16]. - The group has strengthened its operational capabilities, achieving double-digit growth in sales and foot traffic through innovative IP events[17]. - The group plans to optimize its member service system to enhance member satisfaction and loyalty, targeting high-end members with personalized services[23]. - The group is exploring partnerships with technology companies to apply AI, big data, and IoT in commercial real estate, enhancing core competitiveness[21]. - The group has adopted a strategy of integrating public and private domains to create a more influential business ecosystem[16]. - The company aims to solidify its benchmark position in the Greater Bay Area by expanding market share at the Shenzhen Futian Star River COCO Park, targeting cross-border consumers[53]. - A diversified leasing strategy will be adopted to enhance brand appeal and market influence, aiming to reduce vacancy rates and increase overall rental income[54]. - The company will focus on operational efficiency and asset value enhancement, ensuring steady growth in rental income and sales performance through refined management strategies[55]. Market Presence - The company operates 53 commercial property projects across 21 cities in China, with a total contracted building area of approximately 2.7 million square meters[4]. - The company has 27 operational retail commercial properties, with a total operational building area of approximately 1.6 million square meters[4]. - The revenue from the Greater Bay Area was RMB 476.4 million, accounting for 73.9% of total revenue, while the total revenue for the year was RMB 644.5 million[41]. - The average occupancy rate for retail commercial properties was 92.4% as of December 31, 2024, slightly down from 92.8% in 2023[48]. - The average occupancy rate for COCO Park was 93.8%, while COCO City and iCO had an occupancy rate of 90.7%[48]. Governance and Management - The board consists of three executive directors, two non-executive directors, and three independent non-executive directors as of the report date[94]. - The company emphasizes the importance of good corporate governance practices to enhance investor confidence and accountability[111]. - The company has complied with the corporate governance code principles as per the Hong Kong Stock Exchange listing rules, with some exceptions noted[111]. - The company has a strong management team with diverse backgrounds in finance, project management, and corporate governance[108][109]. - The company has established a mission to create urban prosperity through business intelligence, focusing on customer-centric opportunities and competitive products[130]. - The company has committed to adhering to corporate governance codes and listing rules in the future[113]. - The audit committee held four meetings during the year ending December 31, 2024, reviewing the company's governance policies and financial reporting systems[134]. - The remuneration committee conducted two meetings in the year ending December 31, 2024, to discuss and review the remuneration policies for directors and senior management[137]. - The nomination committee held two meetings in the year ending December 31, 2024, to review the nomination policies and assess the independence of non-executive directors[140]. - The company has established a nomination policy to ensure the selection of suitable candidates for the board, focusing on integrity, experience, and diversity[141]. Risk Management - The company has adopted a three-tier risk management approach to identify, assess, and manage various types of risks[158]. - The audit committee has reviewed the effectiveness of the risk management and internal control systems for the year ending December 31, 2024, covering financial, operational, and compliance monitoring[160]. - No significant control deficiencies or weaknesses were identified during the reporting period, and the existing risk management and internal control systems are deemed reasonable and effective[160]. - The company has implemented a strict anti-corruption policy to identify and address bribery and corruption issues, applicable to all employees and related third parties[160]. - An independent internal audit consultant has been appointed to assist the board and audit committee in identifying and monitoring the company's risk and internal control matters[159]. - The company is committed to continuous evaluation of the risk register and considers the likelihood and impact of identified risks in various operational areas[159]. Employee and Social Responsibility - The company employed a total of 954 employees as of December 31, 2024, up from 901 employees in 2023[178]. - The company has implemented various employee social security plans, including housing provident fund, pension, medical insurance, and unemployment insurance[180]. - The employee gender ratio as of December 31, 2024, was 66% male to 34% female, reflecting the company's commitment to diversity[178]. - The gender ratio among the company's workforce, including senior management, is 66:34 as of December 31, 2024, indicating achieved gender diversity[148]. Future Outlook - The company is committed to a "cost-effectiveness year" in 2025, focusing on quality improvement and resource optimization for long-term development[18]. - The company aims to become a leader in the business operation management industry in China, focusing on excellence, sustainable value, and win-win cooperation[130]. - The company is focused on adapting to changes in the commercial operation management industry to meet evolving market demands[175].
星盛商业(06668) - 2024 - 年度财报