Financial Performance - Total revenue for 2021 reached HK$7,353 million, representing a 15.2% increase from 2020[6] - Profit for the year attributable to shareholders was HK$641 million, a 20.8% increase compared to 2020[6] - Earnings per share increased by 19.8% to HK$2.12 from HK$1.77 in 2020[6] - Dividends per share rose by 5.8% to HK$0.55, up from HK$0.52 in 2020[6] - Total equity increased by 9.2% to HK$10,569 million from HK$9,683 million in 2020[20] - Total assets grew to HK$18,613 million, up from HK$17,039 million in 2020, marking a 9.2% increase[20] - The Group's consolidated revenue increased by 15% to HK$7,353 million for the year ended 31 March 2021, compared to HK$6,381 million in 2020[33] - Total segment revenue, including associates and joint ventures, rose by 11% to HK$9,850 million from HK$8,907 million[33] - Profit for the year increased by 21% to HK$685 million, up from HK$567 million, primarily due to improved results in the Construction and Engineering segment[33] - The Group's profit attributable to shareholders rose to HK$641 million, compared to HK$533 million in the previous year, with earnings per share increasing to HK$2.12 from HK$1.77[33] Segment Performance - The construction and engineering segment generated revenue of HK$4,616 million, up from HK$4,105 million in 2020[21] - Healthcare investment segment revenue increased to HK$1,082 million from HK$964 million in 2020[21] - The car dealership segment saw revenue rise to HK$2,653 million, compared to HK$2,303 million in 2020[21] - The Group's performance in the construction and engineering business was significantly impacted by the pandemic, with projects in Macau being suspended due to casino lockdowns[28] - The electrical and mechanical engineering division experienced a decline in both revenue and profit due to COVID-19 measures in Macau, affecting major client sectors[36] - The aluminium windows and curtain walls division reported encouraging results, benefiting from major projects in Hong Kong and Australia, alongside stringent cost control measures[36] - The building supplies division improved its results by securing installation contracts for water tanks and kitchen cabinets, also implementing cost control measures[36] - The environmental engineering division reported a small profit mainly from joint venture projects, with plans to participate in upcoming government tenders[36] - The Property Development and Operations segment recorded a 32% revenue decrease from HK$699 million to HK$472 million and an 87% profit decline from HK$315 million to HK$40 million[40] Strategic Initiatives - The Group maintained profitability despite the significant disruption caused by the COVID-19 pandemic, with a focus on future business opportunities in infrastructure projects[28] - The HKSAR Government has committed to mega infrastructure projects, including the expansion of the Third Runway at Hong Kong International Airport, which presents opportunities for the Group[28] - The Group is positioned to capture opportunities in the Lift Modernisation Subsidy Scheme, supported by long-term partner Toshiba Elevator and Building Systems Corporation[28] - The Group is actively pursuing opportunities in environmental projects, including upgrading sewage and water treatment plants[28] - The Group is focusing on research and development in Design for Manufacturing and Assembly (DfMA) to enhance construction efficiency, integrating Modular Integrated Construction (MiC) and Hybrid-MiC technologies[33] - Building Information Modelling (BIM) is being utilized in various projects, including the Third Runway Project, to improve safety and productivity[33] Governance and Management - The management team collectively brings decades of experience across various sectors, which is crucial for strategic decision-making and market expansion[79][81][82][83] - The company is focused on maintaining strong governance and strategic planning through its experienced board members[79][81][82][83] - The diverse backgrounds of the management team support the company's growth strategies and operational effectiveness[79][81][82][83] - The Group is committed to maintaining high corporate governance standards, ensuring compliance with the CG Code[104] - The Board consists of five Executive Directors, two Non-Executive Directors, and four Independent Non-Executive Directors, meeting four times during the year[113] - The Company has reviewed its corporate governance standards to align with stakeholder expectations and regulatory requirements[108] Environmental and Social Responsibility - The Group's ESG Report covers operations from April 1, 2020, to March 31, 2021, highlighting its commitment to sustainability[151] - The Group recorded total greenhouse gas emissions of 16,861.17 tonnes of CO2e, with Scope 1 emissions accounting for over 60% and Scope 2 emissions for over 30% of the total[163][165]. - The Group has implemented various energy-saving measures to help reduce carbon emissions[170]. - The Group consumed 940,667.75 kWh of electricity, 6,769.36 m³ of water, and 43.95 tonnes of paper[175] - The Group encourages the installation of Electric Vehicle charging infrastructure in managed estates to support the use of electric vehicles[179] Employee Management - As of March 31, 2021, the Group had approximately 3,500 full-time employees globally[182] - The total number of employees is 2,015, with 1,395 males (69.2%) and 620 females (30.8%)[185] - The employee turnover rate is 38.4% for females and 36.8% for males[187] - The Group regularly reviews its compensation and benefits programs to ensure competitiveness in the market[191] - The Group has implemented stringent safety guidelines for employees working on construction sites to minimize occupational hazards[194] Risk Management - The Board is tasked with evaluating risks associated with achieving the Group's strategic objectives and ensuring effective risk management and internal control systems are in place[137] - The risk management framework includes policies to identify, assess, manage, and report various risks, including strategic, credit, operational, market, liquidity, legal, and regulatory risks[143] - The Audit Committee continuously monitors exposure to risks, ensuring that appropriate measures are taken to mitigate potential impacts on the Group's operations[143]

Revenue and Profitability - Revenue for the six months ended September 30, 2020, was HK$3,227,537,000, an increase of 3.5% compared to HK$3,118,787,000 in the same period of 2019[17] - Profit for the period was HK$314,134,000, down 26.9% compared to HK$429,600,000 in the same period of 2019[17] - Earnings per share decreased to HK$0.97, down from HK$1.37 in the previous year[17] - Profit before taxation for the six months ended 30 September 2020 was HK$374,735,000, a decrease of 24.5% compared to HK$496,589,000 in 2019[62] - Profit attributable to the Company's shareholders dropped to HK$294 million from HK$415 million, resulting in earnings per share of HK$0.97, down from HK$1.37[196] Expenses and Costs - Gross profit decreased to HK$437,525,000, down 1.9% from HK$442,429,000 year-on-year[17] - Operating profit significantly declined to HK$269,706,000, a decrease of 41.1% from HK$456,700,000 in the previous year[17] - Finance costs decreased to HK$42,580,000 from HK$64,043,000, a reduction of 33.4%[17] - Administrative expenses slightly decreased to HK$181,444,000 from HK$184,765,000, a reduction of 1.8%[17] - Staff costs rose to HK$632,114,000, an increase of 5.5% from HK$598,916,000 in 2019[112] Income and Other Gains - Other income increased to HK$96,309,000, compared to HK$30,128,000 in the same period last year, reflecting a growth of 219.5%[17] - Share of results of associates and joint ventures rose to HK$124,560,000, up from HK$85,931,000, indicating a growth of 45.0%[17] - The Group reported a government grant of HK$61,427 for the six months ended September 30, 2020, which was not present in the same period of 2019[102] Assets and Liabilities - Non-current assets rose to HK$10,167,867,000 from HK$9,789,374,000, reflecting an increase of about 3.9%[24] - Current liabilities increased to HK$4,593,076,000 from HK$4,188,292,000, indicating a rise of approximately 9.7%[26] - Total assets increased to HK$17,623,607, up from HK$17,039,218 as of March 31, 2020, representing a growth of approximately 3.4%[91] - Total liabilities as of September 30, 2020, were HK$7,538,824, compared to HK$7,356,147 as of March 31, 2020, indicating an increase of about 2.5%[93] Cash Flow and Financing - Cash generated from operations for the six months ended September 30, 2020, was HK$132,129,000, an increase of 32.4% compared to HK$99,773,000 in 2019[39] - Net cash from operating activities was HK$54,916,000, a significant improvement from a net cash outflow of HK$853,000 in the same period last year[39] - Net cash used in financing activities was HK$198,832,000, an improvement from HK$370,871,000 in the same period last year[41] - The company reported a net cash outflow of HK$151,125,000 for the acquisition of a senior housing property[39] Segment Performance - The Group's segment profit amounted to HK$413,715,000, with the highest contribution from property development and operations at HK$202,212,000[54] - Revenue from contracts with customers recognized at a point in time was HK$1,115,029,000, while revenue recognized over time was HK$1,104,466,000[54] - The healthcare investment segment generated revenue of HK$562,794,000, contributing significantly to the Group's overall revenue[54] - Revenue from the Construction and Engineering segment decreased by 1% from HK$2,007 million to HK$1,985 million, while segment profit increased by 12% from HK$180 million to HK$202 million[196] Market and Economic Conditions - The Group's businesses are diversified, providing strong resilience to the impact of economic downturns due to the COVID-19 pandemic[44] - The Directors remain cautious about the ongoing development of COVID-19, which may cause further volatility and uncertainty in the global financial market and economy[44] - The Group will take necessary measures to address the impact arising from COVID-19[44] Accounting and Reporting - The accounting policies applied in the condensed consolidated interim financial statements are consistent with those described in the annual consolidated financial statements for the year ended 31 March 2020[46] - The Group is currently assessing the impact of new accounting standards on its consolidated financial statements, which may affect future reporting[48] - The Group's financial statements should be read in conjunction with the annual consolidated financial statements for the year ended 31 March 2020[44]

CHEVALIER Chevalier International Holdings Limited 其士國際集團有限公司 (Incorporated in Bermuda with limited liability) (於百慕達註冊成立之有限公司) (Stock Code 股份代號：25) Journey to success 憑實力 走更遠 ANNUAL REPORT 2020 二零二零年年報 CHEVALUE 目錄 | --- | --- | --- | |------------------------------------------------|-------|----------------------| | CONTENTS | | | | Financial Summary | 2 | 財務概要 | | Corporate Information | 6 | 企業資料 | | Letter to Shareholders | 8 | 致股東之函件 | | Management Discussion and Analysis | 10 | 管理層討論及分析 | | Financial Re ...

Revenue and Profitability - Revenue for the six months ended September 30, 2019, was HK$3,118,787, a decrease of 9.9% from HK$3,459,535 in the same period of 2018[18] - Gross profit increased to HK$442,429, up 2.9% from HK$433,781 in the previous year[18] - Operating profit surged to HK$456,700, representing a significant increase of 106.5% compared to HK$220,946 in 2018[18] - Profit before taxation rose to HK$496,589, an increase of 83.4% from HK$270,601 in the prior year[18] - Profit attributable to shareholders was HK$414,897, up 113.0% from HK$194,038 in the same period last year[18] - Basic and diluted earnings per share increased to HK$1.37, compared to HK$0.64 in the previous year[18] - Profit for the period increased to HK$429,600,000, up 100.7% from HK$214,321,000 in the previous year[22] - Total comprehensive income for the period was HK$199,500,000, compared to a loss of HK$119,427,000 in the prior year[22] Financial Position - Non-current assets totaled HK$10,225,186,000, a decrease from HK$10,392,439,000 as of March 31, 2019[25] - Current liabilities amounted to HK$3,648,137,000, down from HK$4,250,373,000 in the previous period[27] - Net current assets increased to HK$2,957,625,000, compared to HK$2,450,505,000 as of March 31, 2019[27] - Shareholders' funds rose to HK$9,115,987,000, up from HK$9,021,484,000 in the previous year[27] - The company reported a total equity of HK$9,335,740,000 as of September 30, 2019[31] - The company’s total assets less current liabilities increased to HK$13,182,811,000 from HK$12,842,944,000[27] Cash Flow and Financing - For the six months ended September 30, 2019, cash generated from operations was HK$99,773,000, a decrease from HK$134,917,000 in the same period of 2018[34] - The net cash used in operating activities was HK$853,000, compared to a net cash inflow of HK$34,837,000 in the previous year[34] - Cash and cash equivalents at the end of the period rose to HK$2,179,369,000, up from HK$1,533,598,000, marking a 42% increase[35] - Net cash used in financing activities was HK$370,871,000, compared to a net cash inflow of HK$337,841,000 in the previous year[35] - The drawn down of bank and other borrowings was HK$117,902,000, significantly lower than HK$5,903,725,000 in the previous year[35] - Repayments of bank and other borrowings totaled HK$351,113,000, compared to HK$5,477,025,000 in the previous year[35] Segment Performance - The construction and engineering segment generated a profit of HK$179,837, while the healthcare investment segment reported a loss of HK$18,848[65] - Revenue from contracts with customers recognized over time amounted to HK$1,677,371, with additional revenue from other sources totaling HK$1,304,619[65] - The healthcare investment segment's revenue was HK$479,519, reflecting its contribution to the overall group performance[65] - The total segment profit for the group was HK$554,923, showcasing overall profitability despite losses in certain segments[65] - Segment profit for the same period was HK$554,923,000, up from HK$339,140,000 in the prior year, indicating a growth of approximately 63.7%[73] Accounting Policies and Changes - The company is assessing the impact of new accounting standards effective from 1 January 2020 and 1 January 2021 on its financial statements[41] - The adoption of amendments to existing standards did not have a significant impact on the Group's consolidated results and financial position[40] - The Group adopted HKFRS 16 "Leases" retrospectively from April 1, 2019, without restating comparative information for prior periods[47] - Lease liabilities increased by HK$75,966,465 as a result of the adoption of HKFRS 16[50] - Property, plant and equipment (including right-of-use assets) increased by HK$76,388,216 on the consolidated statement of financial position as of April 1, 2019[50] Market and Economic Conditions - The local property market is expected to be affected by a slowing economy in Mainland China and ongoing social unrest in Hong Kong[192] - The increasing ageing population in the US is expected to drive demand for senior housing services, positively impacting the healthcare investment business[197] - Management is confident that the group's performance will remain stable in the second half of the financial year due to diversified business portfolios[198] Dividends and Shareholder Returns - The interim dividend declared was HK$0.20 per share, an increase from HK$0.15 per share in 2018, representing a rise of 33.3%[113] - The company paid dividends of HK$296,181,000 for the year ended March 31, 2019[31] - Dividends paid increased to HK$105,675,000 from HK$75,482,000, representing a 40% increase year-over-year[35] Risks and Liabilities - The company recognized a provision for inventories amounting to HK$1,600, indicating potential write-downs in inventory value[65] - The provision for impairment on trade debtors increased to HK$31,606,000 as of September 30, 2019, compared to HK$30,865,000 as of March 31, 2019[124] - The accrued contract costs decreased to HK$1,064,580,000 as of September 30, 2019, down from HK$1,246,367,000 as of March 31, 2019[129]

Financial Performance - Total revenue for 2019 was HK$ 6,893 million, representing a 1.2% decrease from 2018[8] - Profit for the year decreased by 28.0% to HK$ 699 million compared to 2018[9] - Earnings per share fell by 27.9% to HK$ 2.17 from HK$ 3.01 in 2018[10] - Dividends per share decreased by 71.4% to HK$ 0.50 from HK$ 1.75 in 2018[12] - Total segment revenue, including associates and joint ventures, increased by 3% to HK$9,563 million from HK$9,301 million[44] - Profit for the year ended March 31, 2019, increased by 67% to HK$699 million, excluding one-off gains from disposals[44] - Profit attributable to the Company's shareholders was HK$655 million, down from HK$908 million in the previous year, with earnings per share at HK$2.17 compared to HK$3.01[44] Assets and Liabilities - Total equity increased by 3.3% to HK$ 9,642 million from HK$ 9,336 million in 2018[6] - Total assets rose to HK$ 17,093 million, up from HK$ 16,105 million in 2018[27] - Total liabilities increased to HK$ 7,451 million from HK$ 6,769 million in 2018[27] - The carrying value of investment properties decreased by HK$21 million to HK$3,770 million as of March 31, 2019, mainly due to the transfer of a property to assets held for sale[59] - The carrying value of property, plant, and equipment increased by HK$376 million to HK$3,161 million as of March 31, 2019, resulting from the acquisition of ten senior housing properties in the US[59] Revenue by Segment - Segment revenue from construction and engineering was HK$ 4,262 million, an increase from HK$ 4,175 million in 2018[28] - Healthcare investment segment revenue rose to HK$ 866 million from HK$ 598 million in 2018[28] - The Construction and Engineering segment's revenue increased by 2% to HK$4,262 million, while segment profit rose by 71% to HK$294 million[44] - Property Investment segment revenue increased by 3% from HK$136 million to HK$140 million, while profit decreased by 4% from HK$279 million to HK$269 million[47] - Property Development and Operations segment revenue decreased by 8% from HK$1,105 million to HK$1,021 million, and profit decreased by 75% from HK$859 million to HK$218 million[49] Market Outlook and Opportunities - The integration of Hong Kong, Macau, and nine cities in the Guangdong-Hong Kong-Macao Greater Bay Area (GBA) is expected to sustain high demand for housing[36] - The Group anticipates numerous opportunities in construction, engineering, property investment, and development due to stable home prices and the end of the current interest rate hike cycle[36] - The demand for healthcare services is expected to grow due to the ageing population and increased health awareness, contributing steady income for the Group[40] - The Group plans to seek investment opportunities in medical office buildings to meet the rising demand for outpatient healthcare services in the United States[40] - Some large-scale public works projects are pending funding approval from the Legislative Council of the HKSAR, which may impact the construction industry[36] Corporate Governance - The Company is in compliance with the corporate governance code provisions, except for deviations regarding the roles of the Chairman and Chief Executive[129] - The Board comprises five Executive Directors, two Non-Executive Directors, and four Independent Non-Executive Directors, meeting six times during the year[131] - The Company has made efforts to comply with increasingly stringent regulatory requirements in corporate governance[130] - The Audit Committee reviews the effectiveness of the Group's risk management and internal control systems annually, covering financial, operational, and compliance controls[172] - The Company aims to maintain a diverse Board based on various perspectives including skills, experience, and gender[159] Sustainability and Corporate Social Responsibility - The Group is committed to high standards of corporate social responsibility and compliance with relevant laws and regulations, focusing on environmental and social reporting[199] - The Group believes in environmental protection and engages in various charitable initiatives to contribute positively to society[199] - The Group's commitment to sustainability is essential for its development and the viability of its business[199] - The Group recorded carbon emissions primarily from its construction sites[200] Management and Leadership - Miss Lily Chow has been with Chevalier Group since 1990 and is responsible for strategic planning and business development[93] - The management profile highlights a blend of academic and practical experience, positioning the company for informed decision-making and strategic growth[109] - The Company provides continuous professional development for Directors to ensure their contributions remain informed and relevant[137] - The Executive Committee, established in 1991, is responsible for implementing business strategies and managing daily operations[166] Financial Management - The Group's liquidity and financing requirements are frequently reviewed to ensure sufficient financial resources for ongoing operations and future expansion[75] - The Group's treasury policies are conservative, focusing on cash and financial management to minimize cost of funds[76] - The Group's cash management policy emphasizes prudent treasury management to achieve better risk management and lower capital costs[78]