Accountability & Audit

Financial Reporting

In a landmark decision testifying to our dedication to good corporate governance, in 2008 the Company became the first real estate company in Hong Kong to publicly support the Stock Exchange's proposal to shorten the period between the end of the fiscal year and reporting of our results.

Hence we announce our interim and final results within one month after the end of the financial period.

Moreover, the Board ensures that a balanced, clear and comprehensible assessment of the Company's performance, position and prospects is presented in annual and interim reports, price-sensitive announcements and other required disclosures.
 

Risk Management Framework

The Board has overall responsibility for risk management and for the determination of the nature and extent of significant risks it is willing to take to achieve the Company's strategic objectives.  The Audit Committee is delegated with overseeing the effectiveness of our risk management system.  Management is tasked with the design, implementation and maintenance of a sound and effective risk management framework with reference to the COSO (Committee of Sponsoring Organizations of the Treadway Commission) principles.
 
Chaired by an Executive Director, the Enterprise Risk Management (“ERM”) Working Group (comprising unit heads from all business units and support divisions), with the approved terms of reference, has been established as our second line of defense to coordinate and oversee risk management activities, whilst operational management remains the first line of defense.  The Internal Audit Department, reporting directly to the Audit Committee on risk management and internal controls matters, acts as the third line of defense in this system.
 
The Company takes proactive measures to identify, evaluate and manage significant risks arising from our business and from the constantly changing business environment.  A list of principal risks, covering both strategic and operational risks, has been maintained by the Company with reference to their residual risk impact and likelihood.  Action plans have been developed and risk ownership has been assigned for each principal risk.  The risk owners coordinate the mitigation measures to ensure proper implementation of these action plans.  All of these processes are closely monitored by the ERM Working Group.
 
The Board and Audit Committee review the Company’s top and emerging risks, and conduct an annual review on the effectiveness of the ERM framework.  Taking into consideration the principal risks and mitigating actions, the Board believes that the Company has the ability to adequately respond to changes to our business or the external environment.
 

Internal Control Framwork

The Board is responsible for maintaining an effective internal control system.  The Audit Committee is delegated with overseeing the effectiveness of the internal controls, while the management is responsible for designing, implementing and maintaining an effective internal control system with reference to the COSO principles.
 
Internal control system has been designed to monitor the Company's overall financial position, to safeguard its assets against major losses and misappropriation, to provide reasonable assurance against material fraud and error, and to efficiently monitor and correct non-compliances.
 
We have a well-defined policies and procedures governing the activities of the Executive Committee, Directors, executives and senior staff, such as delegation of authority, approval of annual and mid-year budgets for all capital and revenue items, handling and dissemination of inside information, etc.
 
We maintain an Internal Audit Department that is independent of our daily operations and accounting functions.  The Internal Auditor reports directly to the Audit Committee.  A risk-based internal audit program is approved by the Audit Committee each year.  Based on the audit program, the Internal Auditor performs assessment of risks and testing of controls across all business and support units of the Company in order to provide reasonable assurance that adequate controls and governance are in operation. 
 
The Audit Committee holds four meetings with the External Auditor every year, thereby exceeding the requirements of the Corporate Governance Code .