GREAT EAGLE H(00041)2024-04-09 10:47Business Expansion and Development - The company opened the Ying'nFlo hotel brand targeting millennials and Generation Z, with the first location in Hong Kong launched in 2022 and a new location in Wesley Admiralty opened in 2023[6]. - The company has ongoing developments in various locations including Seattle, San Francisco, and Venice, indicating a focus on market expansion[3]. - The company established joint ventures for residential projects in Kai Tak and Ma Tau Chung, reflecting strategic partnerships for growth[6]. - The company has plans for further development in the residential sector, particularly in the Tai Po area with the launch of the Lang Tao project[6]. - The company is involved in two joint venture residential projects in Hong Kong and has development projects in San Francisco and Seattle, as well as hotel projects in Tokyo and Venice[12]. - The company has initiated construction of a new Langham hotel in Venice, Italy, and is planning a redevelopment project for the Chelsea hotel in Toronto[36]. - The group is expanding the Chelsea hotel redevelopment project in Toronto to a total floor area of approximately 1.7 million square feet due to strong demand for apartments[71]. - The Seattle development project aims to expand the total floor area to 553,000 square feet, incorporating residential elements to enhance financial attractiveness[70]. Financial Performance - The core business of the company reported a post-tax profit of approximately HKD 1,858 million for the fiscal year 2023[12]. - Core profit attributable to equity holders increased by 32.5% to HKD 1,858.1 million for the year ended December 31, 2023[19]. - Core business revenue rose by 15.1% to HKD 7,522.3 million, with earnings per share increasing from HKD 1.90 to HKD 2.49[19]. - Total revenue according to statutory accounting standards was HKD 10,644.2 million, up 19.8% from HKD 8,884.8 million[19]. - The net income attributable to equity holders was HKD 763.5 million, recovering from a loss of HKD 181.4 million in 2022[37]. - Total revenue for 2023 reached HKD 7,522.3 million, an increase of 15.1% compared to HKD 6,536.3 million in 2022[31]. - Hotel segment revenue increased by 25.5% to HKD 4,932.9 million in 2023, up from HKD 3,929.1 million in 2022[31]. - Property sales revenue rose by 16.9% to HKD 1,075.1 million in 2023, compared to HKD 920.0 million in 2022[31]. - Total revenue from property sales reached HKD 798.1 million, a significant increase of 74.5% compared to the previous year[40]. Asset Management and Investments - As of December 31, 2023, the net asset value, based on the company's share of the net asset values of the Crown Property Trust and LHI, was approximately HKD 65.32 billion[12]. - The company holds a 69.23% stake in the Crown Property Trust and a 70.23% stake in LHI as of December 31, 2023[12]. - The total assets of the company amounted to HKD 98.801 billion, with property investments accounting for 46%[22]. - The consolidated net borrowings of the group as of December 31, 2023, amounted to HKD 28,411 million, an increase of HKD 1,141 million from HKD 27,270 million on December 31, 2022[73]. - The total borrowings of the group, including medium-term notes and other loans, were HKD 34,378 million as of December 31, 2023, compared to HKD 33,331 million on December 31, 2022[76]. Sustainability and Corporate Responsibility - The group aims to achieve net-zero emissions by 2045 as part of its sustainability strategy[86]. - The group focused on climate crisis challenges, conducting physical climate risk analysis on 10 major assets, with 6 located in Hong Kong and 4 overseas[88]. - The group implemented various sustainable development projects, emphasizing energy efficiency, water resource management, and waste reduction across its property portfolio[90]. - The group encourages sustainable practices among suppliers and promotes the procurement of environmentally friendly products and services[98]. - The group awarded a total of HKD 2 million in scholarships to support 80 undergraduate students in sustainable development, environment, and energy fields over a 5-year period[96]. Governance and Compliance - The company emphasizes strong governance principles to enhance corporate image and reduce fraud risk[103]. - The board composition includes 47% executive directors, 20% non-executive directors, and 33% independent non-executive directors, ensuring a diverse governance structure[110]. - The company has adhered to most corporate governance codes, with specific deviations noted regarding the rotation of directors and the roles of the chairman and CEO[109]. - The company has implemented policies on anti-fraud, bribery, and corruption, establishing minimum behavioral standards for employees[107]. - The board regularly reviews governance policies and procedures to align with the latest statutory and regulatory frameworks[108]. Employee Engagement and Development - The company emphasizes communication and team spirit, conducting regular employee meetings and entertainment activities to enhance collaboration and morale[166]. - The company is committed to maintaining a balance between work and life for its employees, promoting well-being through various initiatives[166]. - The company has established an online forum for employees to share ideas freely, fostering an inclusive work environment[166]. - The company plans to adopt a share award scheme to retain and reward employees based on their contributions, aligning their interests with those of shareholders[134]. Market Challenges and Outlook - The recovery of the retail and tourism sectors in 2023 is slower than expected, impacting the group's business operations in the short term[200]. - The overall external environment remains unfavorable, with the group not fully recovering from the long-term global economic crisis or recession[200]. - The company is actively repositioning its hotel service operations to attract and retain guests, stabilizing hotel occupancy rates and average room prices[200]. - The group is enhancing preventive measures to improve workplace hygiene standards and updating business continuity and disaster recovery plans[200].