Accounting and Financial Reporting - The group has implemented the guidelines from the Hong Kong Institute of Certified Public Accountants regarding the accounting treatment of long service payment liabilities, with no significant impact on the consolidated financial statements as assessed by management[1]. - The consolidated financial statements for the year ending March 31, 2024, include the financial statements of the company and its subsidiaries, as well as the group's interests in joint ventures[3]. - Fair value measurements are categorized into three levels based on the observability of input data, with Level 1 being quoted prices in active markets for identical assets or liabilities[6]. - The group’s financial statements include the performance of subsidiaries and joint ventures from their respective acquisition dates until March 31, 2024, or the date of sale[7]. - Non-controlling interests are presented separately in the consolidated statement of financial position and in the consolidated income statement, reflecting the share of profit or loss attributable to non-controlling interests[10]. - Investments in subsidiaries are accounted for at cost less any impairment losses, starting from the date control is obtained[11]. - Investments in joint ventures are accounted for using the equity method, with initial recognition at cost and subsequent adjustments based on the group's share of the joint venture's net assets[12]. - Investment properties are held for rental income and/or capital appreciation, initially measured at cost and subsequently at fair value[16]. - Gains or losses arising from changes in the fair value of investment properties are recognized in profit or loss for the period in which they occur[18]. Financial Performance - For the fiscal year ending March 31, 2024, the group recorded a revenue of HKD 249,500,000, an increase of 4.7% compared to HKD 238,400,000 in the previous year[31]. - Operating profit for the fiscal year was HKD 174,500,000, up 10.7% from HKD 157,600,000 in the prior year[31]. - The group reported a net loss of HKD 49,600,000 for the twelve-month period, compared to a profit of HKD 64,400,000 in the previous year[31]. - Shareholders' attributable net loss was HKD 56,200,000, compared to a profit of HKD 59,800,000 in the previous year[31]. - The group's financial costs increased significantly from HKD 69,000,000 to HKD 121,700,000 due to rising interest rates[31]. - The group’s investment properties experienced a fair value decrease of HKD 12,000,000, compared to a gain of HKD 6,000,000 in the previous year[31]. Market and Economic Conditions - The tourism industry in Thailand is recovering well, with over 27 million visitors in 2023 and an expected 37 million in 2024, nearing pre-pandemic levels[31]. - The group faced challenges in the Hong Kong commercial office sector due to declining rental rates and occupancy[31]. - The geopolitical issues and slower-than-expected economic recovery in China continued to impact the Hong Kong economy negatively[31]. - The government projects that the number of tourists in Hong Kong will reach 46 million in 2024, a 35% increase from 2023, but only 70% of the 2018 levels[66]. - The group anticipates that the Hong Kong Regal Hotel will require additional funding to cover negative cash flow due to slow recovery in inbound tourism[66]. - The group remains optimistic about the continued strong recovery in Thailand's tourism sector, expecting tourist numbers to exceed 90% of 2019 levels in 2024[66]. Credit Risk and Financial Assets - The financial assets are classified as held for trading if they are primarily acquired for short-term sale purposes or are part of a portfolio managed for short-term profit[41]. - The group recognizes expected credit losses for financial assets, including receivables and cash balances, based on changes in credit risk since initial recognition[48]. - The expected credit loss amount is updated at each reporting date to reflect changes in credit risk, with a full expected credit loss representing potential losses over the life of the financial instrument[48]. - The group assumes that credit risk significantly increases when contractual payments are overdue by more than 30 days, unless there is reasonable evidence to the contrary[51]. - Financial assets overdue by more than 90 days are considered to have defaulted, unless there is reasonable evidence suggesting a more delayed default condition[52]. - Interest income from financial assets measured at amortized cost is recognized using the effective interest method, excluding credit-impaired financial assets[44]. - Equity instruments designated as measured at fair value through other comprehensive income are subsequently measured at fair value, with gains and losses recognized in other comprehensive income[45]. - Financial assets that do not meet the criteria for amortized cost or fair value through other comprehensive income are measured at fair value through profit or loss[46]. - The group evaluates whether credit risk has significantly increased by comparing the risk of default at the reporting date to the risk at initial recognition[49]. - The assessment of significant increases in credit risk considers various quantitative and qualitative data, including external or internal credit ratings and market indicators[50]. Revenue and Rental Income - The rental income from the Jian Sheng Plaza in Hong Kong increased to HKD 48,200,000 for the fiscal year, compared to HKD 44,200,000 in 2023, reflecting a growth of 4.5%[57]. - The average occupancy rate of the Hong Kong Regal Hotel was 45% for the fiscal year, with an average daily room rate of HKD 4,212, leading to total revenue of HKD 564,600,000, up from HKD 77,300,000 in 2023[59]. - The Pullman Bangkok Hotel G reported revenue of THB 542,700,000 (approximately HKD 118,400,000) for the fiscal year, an increase from THB 400,700,000 (approximately HKD 91,000,000) in 2023, with an operating profit of THB 178,300,000 (approximately HKD 38,900,000)[62]. - The occupancy rate for Pullman Bangkok Hotel G improved to 76%, up from 55% in 2023[62]. - The average occupancy rate for Pullman Pattaya Hotel G was 79%, an increase from 73% in 2023, with revenue reaching THB 420,800,000 (approximately HKD 91,800,000)[62]. - The company’s rental income from the property in Central Hong Kong was HKD 60,700,000, slightly up from HKD 56,900,000 in 2023, despite a decrease in fair value[57]. Investments and Joint Ventures - The group’s hotel investments are entirely made through joint ventures, indicating a strategic focus on collaborative investments[35]. - The company recorded a loss of HKD 20,500,000 from its investment in a joint venture due to currency depreciation and fair value adjustments[57]. - The company’s share of losses from the Regal Hotel joint venture amounted to HKD 137,100,000, primarily due to increased loan rates and pre-opening expenses[59]. - The company’s investment in the Tokyo properties is valued at JPY 95 billion, with an investment cost of JPY 84 billion[57]. - The group received a cash distribution of $8,900,000 from its non-listed associate company, Strand Hotels International Limited, and recorded a share of profits from the associate of HKD 27,600,000 for the fiscal year[63]. - The group’s investments in associates in Thailand, China, and Japan had book values of HKD 361,800,000, HKD 207,300,000, and HKD 89,300,000 respectively as of March 31, 2024[66]. Corporate Governance and Compliance - The company has a robust governance structure with independent directors and a focus on sustainable development[1]. - The board is focused on compliance with legal and regulatory requirements, employing external advisors for guidance[131]. - The company values effective communication with employees and promotes equal opportunity in hiring and development[133]. - The company has maintained appropriate directors and officers liability insurance during the fiscal year to provide adequate protection against legal actions[169]. - The independent non-executive directors confirmed that the related party transactions were conducted in the ordinary course of business and on normal commercial terms[180]. Employee and Community Engagement - As of March 31, 2024, the group had a total of 18 salaried employees, an increase from 17 employees as of March 31, 2023[163]. - The group made charitable and other donations of approximately HKD 369,000 in the fiscal year, down from HKD 748,000 in 2023[164]. - The group ensures competitive compensation for its employees, with salaries determined based on performance and the company's compensation and bonus policies[163]. - The company actively participates in community and educational initiatives, enhancing its corporate social responsibility profile[1]. Shareholder Information - The company has a total of 528,683,206 shares held by its directors, with the largest individual holding being 312,914,946 shares, representing 45.81%[114]. - Forward Investments Inc. holds 283,200,215 shares, representing 24.54% of the company[123]. - Intercontinental Enterprises Corp. owns 215,768,260 shares, accounting for 18.70% of the company[123]. - The company has no unexercised share options as of March 31, 2024, and no arrangements for directors to benefit from purchasing shares or bonds[166]. - The company has sufficient public float as of the date of the annual report publication[171]. - The company has no plans to purchase, sell, or redeem any of its listed shares during the year[174]. - The company has no directors with interests in any business that competes or may compete with the group[175]. - The company has not entered into any significant transactions, arrangements, or contracts during the fiscal year[168]. Taxation and Deferred Tax - The deferred tax liabilities are calculated based on taxable temporary differences related to investments in subsidiaries and associates, reflecting the company's tax strategy[3]. - The company has established significant deferred tax assets, which are only recognized when there is sufficient taxable profit to utilize the temporary differences[4]. - The financial statements indicate that the current and deferred tax liabilities are recognized in the profit and loss statement, ensuring transparency in financial reporting[5]. Other Financial Information - The total bank borrowings of the group as of March 31, 2024, amounted to HKD 2,281,000,000, unchanged from the previous year[66]. - The group's total liabilities to total assets ratio was 20.7% as of March 31, 2024, compared to 20.5% the previous year[66]. - The group holds cash and bank balances of HKD 302,500,000 as of March 31, 2024, an increase from HKD 262,800,000 the previous year[66]. - The group’s total distributable reserves as of March 31, 2024, amounted to HKD 1,259,265,000, slightly up from HKD 1,258,559,000 the previous year[76]. - The company entered into a new lease agreement in May 2022, extending the rental terms for properties at HKD 676,480 and HKD 132,755 per month, respectively, for three years[176]. - The company has raised seven Asian mixed funds, three US funds, one Vietnam fund, two hotel funds, and one growth equity fund since 2005, totaling significant capital for real estate investments[1]. - The financial director has been with the group since 2000, indicating a long-term commitment to financial management and strategy[2]. - The financial director holds multiple degrees, including an MBA, showcasing a strong educational background in finance and engineering[2]. - The management team has extensive experience in international capital markets and investment banking, providing a strong foundation for strategic decision-making[4].

Financial Performance - For the fiscal year ending March 31, 2024, the operating profit increased to HKD 174,511,000, up from HKD 157,561,000 in the previous year, representing an increase of approximately 10.9%[2] - The company reported a loss attributable to shareholders of HKD 56,169,000 for the year, compared to a profit of HKD 59,835,000 in the previous year, indicating a significant decline[2] - Total revenue for the group was HKD 249,480,000 for the year ending March 31, 2024, compared to HKD 238,397,000 for the previous year, representing a growth of approximately 4.6%[36] - The group reported a pre-tax loss of HKD 68,454,000, a significant decline from a profit of HKD 77,002,000 in the previous year[36] - The total comprehensive income for the year was a loss of HKD 67,810,000, compared to a gain of HKD 37,109,000 in the previous year[6] - The earnings per share (loss) for the year was HKD (4.87), down from HKD 5.18 in the previous year[2] - The company recorded revenue of HKD 249,500,000 for the fiscal year ending March 31, 2024, an increase of 4.7% from HKD 238,400,000 in the previous year[80] - Operating profit for the same period was HKD 174,500,000, up 10.7% from HKD 157,600,000 year-on-year[80] - The company reported a net loss of HKD 49,600,000 for the fiscal year, compared to a profit of HKD 64,400,000 in the previous year[80] Assets and Liabilities - Total assets decreased to HKD 11,021,147,000 from HKD 11,140,635,000, reflecting a reduction of about 1.1% year-over-year[28] - The equity attributable to shareholders decreased to HKD 7,473,050,000 from HKD 7,565,861,000, a decline of approximately 1.2%[28] - Total liabilities amounted to HKD 2,435,070,000, a slight decrease from HKD 2,469,122,000 year-on-year[36] - The net current liabilities stood at HKD (1,330,283,000), compared to HKD (431,800,000) in the previous year, indicating a worsening liquidity position[36] - The group’s total assets less current liabilities were HKD 9,358,856,000, down from HKD 10,418,160,000[36] - Deferred tax liabilities decreased to HKD 64,520,000 from HKD 86,237,000, showing a reduction of approximately 25.2%[36] - The group’s liabilities, excluding accounts payable and other payables, are HKD 2.43 billion, a decrease from HKD 2.47 billion in the previous year[63] Financial Costs - Financial expenses rose sharply to HKD 121,694,000 from HKD 68,999,000, marking an increase of approximately 76.2%[2] - Interest expenses increased significantly from HKD 69,000,000 to HKD 121,700,000 due to rising interest rates[80] - The company’s financial costs nearly doubled, impacting overall profitability despite increased rental income and operating profit[80] Dividends - The group did not declare a final dividend for the year, compared to a dividend of HKD 0.015 per share in the previous year[43] - The company did not recommend a final dividend for the year ending March 31, 2024, compared to HKD 0.015 per share in the previous year[71] - The board does not recommend the payment of a final dividend for the year ending March 31, 2024, compared to HKD 0.015 per share in 2023[114] Real Estate and Rental Income - The rental rate for the Kwan Tong building in Hong Kong is 76% as of March 31, 2024, unchanged from September 2023, contributing HKD 48.2 million in rental income, an increase from HKD 44.2 million in the previous year[54] - The rental rate for the Qiaofa Building in Hong Kong remains at 100%, contributing HKD 21.2 million in rental income, consistent with the previous year[55] - The rental income from the West Wing Club Tower was HKD 60,700,000, up from HKD 56,900,000 in the previous year, with an occupancy rate of 92%[82] - The Shanghai K Wah Center had a stable occupancy rate of 92% and contributed a profit of HKD 8,900,000, down from HKD 11,000,000 in the previous year[83] - The group’s property at 68 Yee Wo Street, Hong Kong, has a rental rate of 86% and generated rental income of HKD 99.5 million, down from HKD 100 million the previous year[100] Market Conditions - The fiscal year 2023 to 2024 is expected to be challenging due to high interest rates and inflation, particularly affecting the global real estate market, especially commercial office sectors[51] - The rental market in Hong Kong is expected to face continued challenges until economic recovery is achieved, particularly in the financial sector[60] - Thailand's tourism industry is recovering well, with over 27 million tourists in 2023 and a projected 37 million in 2024, which is 90% of the 2019 figure[52] - Hong Kong's tourism sector is recovering, with a projected 35% increase in tourist arrivals to 46 million in 2024, but only reaching 70% of 2018 levels[88] - Thailand's tourism is expected to recover to over 90% of 2019 levels in 2024, with strong growth from markets other than China[89] Joint Ventures and Investments - The group holds a 5.1% beneficial interest in three commercial buildings in Tokyo, with a total sale agreement value of JPY 95 billion (approximately HKD 6.3 billion) signed in March 2024[56] - The group recorded a loss of HKD 20.5 million from the joint venture in Tokyo, primarily due to fair value adjustments from yen depreciation[56] - The group recorded a share of loss from the joint venture of HKD 137,100,000, compared to a loss of HKD 50,800,000 in 2023[104] - The group holds a 43.2% stake in Strand Hotels International Limited, which operates three hotels in Myanmar, significantly impacted by international sanctions, leading to the sale of hotel and cruise operations[87] Cash and Bank Balances - The company’s cash and bank balances increased to HKD 302,502,000 from HKD 262,773,000, showing a growth of about 15%[28] - As of March 31, 2024, the group has cash and bank balances of HKD 302.5 million, up from HKD 262.8 million a year earlier[90] Future Outlook - The group anticipates needing additional funds to cover negative cash flow due to high interest costs and slow recovery in the Hong Kong tourism market[108]

Revenue and Profit Performance - Revenue for the six months ended September 30, 2023, was HKD 125,427 thousand, compared to HKD 118,089 thousand in the same period last year[16] - Net profit attributable to shareholders was HKD 18,098 thousand, a significant increase from HKD 2,821 thousand in the prior year[16] - Net profit for the six months ended September 30, 2023, was HK$27,579 thousand, compared to HK$11,818 thousand in the same period last year, representing a significant increase[38] - The group's revenue for the six months ended September 30, 2023, increased by 6.2% to HKD 125,400,000 compared to HKD 118,100,000 in the same period last year[112] - The group's net profit for the six months ended September 30, 2023, was HKD 27,600,000, compared to HKD 11,800,000 in the same period last year[112] - Total revenue for the period was HKD 125,427 thousand in 2023, up from HKD 118,089 thousand in 2022[80] - Profit before tax decreased to HKD 8,705 thousand in 2023 from HKD 19,473 thousand in 2022[80] Operating Profit and Earnings - Operating profit for the period was HKD 86,602 thousand, up from HKD 81,247 thousand in the previous year[16] - Earnings per share for the period were HKD 1.57, compared to HKD 0.24 in the same period last year[16] - The group's operating profit for the six months ended September 30, 2023, increased by 6.7% to HKD 86,600,000 compared to HKD 81,200,000 in the same period last year[112] Assets and Liabilities - Total assets as of September 30, 2023, were HKD 11,116,561 thousand, slightly down from HKD 11,140,635 thousand as of March 31, 2023[19] - Total liabilities decreased to HKD 2,441,898 thousand from HKD 2,469,122 thousand as of March 31, 2023[19] - The company's total equity and liabilities stood at HKD 11,116,561 thousand as of September 30, 2023[19] - The company's total assets as of September 30, 2023, were HK$11,116,561 thousand, slightly lower than HK$11,140,635 thousand as of March 31, 2023[47] - The company's total liabilities as of September 30, 2023, were HK$2,441,898 thousand, compared to HK$2,467,075 thousand as of March 31, 2023[47] - Total assets decreased slightly from HKD 11,140,635 thousand in 2022 to HKD 11,116,561 thousand in 2023[53] - The company's equity attributable to shareholders was HK$8,668 thousand as of September 30, 2023[38] - The company's equity in associates decreased to HKD 861,752 thousand as of September 30, 2023, from HKD 917,744 thousand as of March 31, 2023[92] - Supreme Key Limited's net asset value decreased to HKD 740,451 thousand as of September 30, 2023, from HKD 896,814 thousand as of March 31, 2023[97] - The company's investment in associates had a carrying amount of HKD 1,873,580 as of September 30, 2023[190] Cash Flow and Financial Activities - Cash and bank balances dropped from HKD 262,773 thousand in 2022 to HKD 214,873 thousand in 2023, a decrease of 18.2%[53] - Net cash used in financing activities increased significantly from HKD 29,343 thousand in 2022 to HKD 56,773 thousand in 2023[59] - Operating cash flow from business activities decreased to HKD 69,454 thousand in 2023 from HKD 81,870 thousand in 2022[78] - Net cash used in investing activities was HKD 61,432 thousand in 2023, compared to a net cash inflow of HKD 11,492 thousand in 2022[78] - The group's cash and bank balances as of September 30, 2023, were HKD 214,900,000, compared to HKD 262,800,000 as of March 31, 2023[115] - Cash and cash equivalents decreased to HKD 205,926 thousand as of September 30, 2023, from HKD 254,706 thousand as of March 31, 2023[94] Investments and Associates - The company's equity in associates was HKD 222,135 thousand, representing 30.0% of the associates' net assets[11] - The company's investment in associates was HK$2,594,524 thousand as of September 30, 2023, slightly higher than HK$2,584,702 thousand as of March 31, 2023[47] - The group's investment in Supreme Key Limited had a total investment cost of HKD 1,784,449,000 as of September 30, 2023, compared to HKD 1,718,656,000 as of March 31, 2023[105] - The group's investment in the Shanghai Xianle Plaza property recorded a fair value loss of HKD 2,900,000 as of September 30, 2023, compared to a loss of HKD 19,700,000 in the same period last year[113] - The company's hotel investments are made entirely through associates[192] Financial Instruments and Risk Management - The company's financial instruments are classified into three levels based on the observability of fair value measurement parameters[23] - The company's financial risk management policies and procedures remained unchanged from the previous year[46] - The company's financial liabilities are denominated in HKD, with investments in Thailand, China, and Japan valued at HKD 350,700,000, HKD 217,600,000, and HKD 99,600,000 respectively as of September 30, 2023[141] Dividends and Shareholder Equity - The company did not recommend any interim dividend for the period ended September 30, 2023[2] - The company's board of directors does not recommend the payment of any interim dividend for the six months ended September 30, 2023[197] - The company's total equity interests held by directors and their families amounted to 45.81% for Wu Wang Jingyi, 10.17% for Wu Jitai, and 1.79% for Wu Yanan[145] Interest and Financing - Interest paid more than doubled from HKD 21,169 thousand in 2022 to HKD 56,590 thousand in 2023[59] - Bank loan interest expenses rose significantly to HKD 56,761 thousand in 2023 from HKD 21,922 thousand in 2022[87] - The group's bank loans as of September 30, 2023, were HKD 2,281,000,000, with HKD 300,000,000 at fixed interest rates and the remainder at floating rates[116] - The group's actual annual interest rate on bank loans as of September 30, 2023, was 5.80%, compared to 4.10% as of March 31, 2023[109] - Total bank borrowings as of September 30, 2023, amounted to HKD 2,281,000,000, with HKD 1,263,500,000 due within one year[174] - The company's total debt to total assets ratio was 20.5%, and the net debt to total assets ratio was 18.6% as of September 30, 2023[174] Property and Rental Income - Investment properties increased marginally from HKD 7,903,300 thousand in 2022 to HKD 7,928,400 thousand in 2023[54] - Rental income from property leases increased from HKD 94,135 thousand in 2022 to HKD 96,020 thousand in 2023[76] - Revenue from property management services increased to HKD 20,153 thousand in 2023 from HKD 16,773 thousand in 2022[87] - The occupancy rate of Kin Sang Plaza in Hong Kong increased to 76% in September 2023 from 58% in September 2022, contributing rental and related income of HKD 24,000,000 and a fair value increase of HKD 10,000,000[125] - The property at 68 Yee Wo Street, Causeway Bay, Hong Kong, with a 60% stake, achieved an occupancy rate of 86% in September 2023, up from 81% in September 2022, generating rental and related income of HKD 49,800,000 and a fair value increase of HKD 3,000,000[125] - The commercial platform at 115-119 Queen's Road West, Sai Ying Pun, Hong Kong, maintained a 100% occupancy rate, contributing rental and related income of HKD 10,600,000 and a fair value increase of HKD 4,000,000[126] - The company's investment property in Central Hong Kong, the Western Club Building (80,100 sq. ft.), maintained a stable occupancy rate of 96%, contributing rental and related income of HKD 30,700,000 and a fair value increase of HKD 10,000,000 for the six months ended September 30, 2023[191] - The company's investment in Taikoo Shing Centre Phase 3 (half) and Phase 4, with a total gross floor area of 792,780 sq. ft., recorded a fair value loss of HKD 4,000,000 due to the decline in valuations in the Hong Kong office sector[195] Comprehensive Income and Expenses - Other comprehensive expenses for the period were HK$24,429 thousand, a decrease from HK$104,912 thousand in the previous year[38] - Total comprehensive income for the period was HK$3,150 thousand, a significant improvement from a loss of HK$93,094 thousand in the same period last year[38] - The company's total tax expense for the six months ended September 30, 2023, was HKD 18,874,000, compared to HKD 7,655,000 for the same period in 2022[188] - The company's total deferred tax liabilities decreased by HKD 20,835,000 for the six months ended September 30, 2023, compared to an increase of HKD 1,883,000 for the same period in 2022[188] Employee Costs and Compensation - Employee costs (including directors' remuneration) rose from HKD 6,162 thousand in 2022 to HKD 6,799 thousand in 2023, an increase of 10.3%[76] - The company's salary and bonus policies ensure competitive compensation for its 18 employees as of September 30, 2023[175] Guarantees and Commitments - The company guaranteed HKD 1,879,800,000 in bank financing for a subsidiary as of September 30, 2023[156] - The company's total guarantees and commitments amounted to HKD 1,910,445 as of September 30, 2023, including guarantees for utilized bank financing of subsidiaries and future minimum lease payments for land and buildings[200] - The company's total guarantees for utilized bank financing of subsidiaries remained unchanged at HKD 1,879,800 as of September 30, 2023[200] International Operations and Investments - The Shanghai Jia Hua Center in China, with a 7.7% stake, had a 94% occupancy rate and recorded a profit of HKD 4,900,000 before exchange differences[127] - The three commercial buildings in Tokyo, Japan, with a 5.1% stake, had occupancy rates of 78%, 91%, and 100%, and recorded a loss of HKD 11,100,000 due to yen depreciation[127] - The Pullman Bangkok Hotel G in Thailand, with a 49.5% stake, recorded revenue of THB 237,600,000 (HKD 51,700,000) and operating profit of THB 63,600,000 (HKD 13,800,000), with an average occupancy rate of 71%[128] - The Pullman Pattaya Hotel G in Thailand, with a 49.5% stake, recorded revenue of THB 186,300,000 (HKD 40,500,000) and operating profit of THB 58,300,000 (HKD 12,700,000), with an average occupancy rate of 77%[128] - The Regent Hong Kong, with a 30% stake, achieved an average occupancy rate of 55% and an average daily room rate of HKD 4,485, generating revenue of HKD 197,200,000 and an operating loss of HKD 60,700,000[139] - The company's two hotels in Thailand (Bangkok and Pattaya) returned to operating profit and continued to grow, with Thailand's tourism recovering to over 18 million visitors in the first eight months of 2023[151] Market and Economic Outlook - The company is optimistic about the recovery of the luxury hotel industry and expects the Regent Hong Kong's revenue to reach or exceed pre-COVID levels soon, with continued improvement in the performance of Thai hotels[140] - The company's financial performance is influenced by global economic uncertainties, geopolitical challenges, and high-interest rates, with no immediate growth drivers replacing the financial sector in Hong Kong[173] Shareholdings and Subsidiaries - The company's total number of ordinary shares outstanding is not explicitly stated, but significant shareholdings include Eternity Rich Investments Ltd. with 20,699,216 shares and Prosperous Island Limited with 97,324,936 shares[178][181] - The company's subsidiary, Supreme Key Limited, invested in the renovation of The Regent Hong Kong (formerly The InterContinental Hong Kong), which partially reopened in December 2022[163] Accounts Receivable and Payables - The company's accounts receivable, advances, and prepayments totaled HKD 26,477,000 as of September 30, 2023, primarily consisting of rental income[150] - The group's total payable accounts and other payables as of September 30, 2023, were HKD 46,686 thousand, compared to HKD 57,905 thousand as of March 31, 2023[101] Capital Expenditures and Investments - Capital expenditures decreased significantly from HKD 7,897 thousand in 2022 to HKD 719 thousand in 2023[73] - Investment properties with a carrying value of HKD 7,852,100,000 were pledged as collateral for bank loans of HKD 2,281,000,000[155] Interest Income and Expenses - Interest income surged from HKD 1,326 thousand in 2022 to HKD 4,566 thousand in 2023, a 244.3% increase[76] - Interest income from financial assets measured at amortized cost increased to HKD 4,566 thousand in 2023 from HKD 1,305 thousand in 2022[87] Hong Kong and Overseas Revenue - Hong Kong revenue increased to HKD 120,722 thousand in 2023 from HKD 116,734 thousand in 2022, while overseas revenue rose to HKD 4,705 thousand from HKD 1,355 thousand[81]

Financial Performance - For the six months ended September 30, 2023, the company reported revenue of HKD 125,427,000, an increase from HKD 118,089,000 in the same period last year, representing a growth of approximately 2.27%[20] - The net profit for the same period was HKD 27,579,000, significantly higher than HKD 11,818,000 in the previous year, indicating an increase of approximately 133.5%[22] - The operating profit for the six months ended September 30, 2023, was HKD 386,602, compared to HKD 81,247 for the same period in 2022, indicating a significant increase[41] - Total comprehensive income for the period was HKD 3,150, a recovery from a loss of HKD 93,094 in the same period last year[44] - The company reported a revenue of HKD 125,427,000 for the current period, an increase of 6.4% from HKD 118,089,000 in the previous year[73] - The operating profit for the current period was HKD 86,602,000, compared to HKD 81,247,000 in the previous year, reflecting a growth of 6.5%[73] - The group recorded a net profit of HKD 27,600,000 for the six-month period, compared to HKD 11,800,000 in the previous year[96] Rental and Property Management - The company maintained a stable rental rate of 96% for its property located in Central Hong Kong, consistent with the previous year's performance[9] - Revenue from property management services reached HKD 20,153 for the six months ended September 30, 2023, up from HKD 16,773 in the previous year, reflecting a growth of 20.6%[56] - Rental income from property leasing was HKD 96,020 for the six months ended September 30, 2023, compared to HKD 94,135 in the previous year, showing a modest increase of 2%[56] - The rental income from property leasing was HKD 96,020,000, up from HKD 94,135,000 in the previous year, representing a growth of 2.0%[79] - The rental rate for the Jian Sheng Plaza in Hong Kong increased to 76% as of September 30, 2023, from 58% in the previous year[97] - The rental income from the property at 68 Yee Wo Street, Causeway Bay, was HKD 49,800,000, with a rental rate of 86%, up from 81% year-on-year[98] Investment Properties - The fair value of investment properties increased by HKD 25,100,000 during the period, compared to an increase of HKD 16,378,000 in the prior year[21] - The fair value change of investment properties was HKD 25,100,000, significantly higher than HKD 16,378,000 in the previous year, marking an increase of 53.2%[73] - The group’s investment properties recorded a fair value increase of HKD 25,100,000, compared to an increase of HKD 16,400,000 in the previous year[96] Financial Position - Total assets as of September 30, 2023, were HKD 11,116,561,000, slightly down from HKD 11,140,635,000 at the end of the previous reporting period[28] - The company's total liabilities decreased to HKD 2,441,898,000 from HKD 2,469,122,000, reflecting a reduction in financial obligations[30] - The total equity as of September 30, 2023, was HKD 8,674,663, slightly up from HKD 8,671,513 as of March 31, 2023[48] - The group's cash and bank balances as of September 30, 2023, were HKD 214,900,000, down from HKD 262,800,000 as of March 31, 2023[119] - The total liabilities to total assets ratio is 20.5%, and the net debt to total assets ratio is 18.6% as of September 30, 2023[120] Financial Expenses - The company's financial expenses rose to HKD 56,773,000 from HKD 21,942,000, indicating a substantial increase in borrowing costs[21] - The financial costs, including bank loan interest, totaled HKD 56,773 for the current period, significantly higher than HKD 21,942 in the previous year, reflecting increased borrowing costs[56] - The group recorded a loss of HKD 47,800,000 from its joint venture during the interim period, primarily due to interest on loans and pre-opening expenses[116] - The financial expenses rose significantly from HKD 21,900,000 in the previous year to HKD 56,800,000 in the current period due to rising interest rates[96] Market Challenges - The company is facing challenges in the Hong Kong commercial office market due to slower-than-expected economic recovery and geopolitical factors, impacting rental rates and occupancy[8] - The company noted that consumer spending in China is primarily focused on low-cost goods and services, avoiding large expenditures on apartments and cars[89] Corporate Governance - The company is committed to maintaining high levels of corporate governance to safeguard shareholder interests and enhance corporate value[126] - The board does not recommend the distribution of any interim dividend for the six months ended September 30, 2023[124] - The company did not recommend any interim dividend for the period ending September 30, 2023, consistent with the previous year[82] Other Financial Metrics - Interest income from financial assets measured at amortized cost increased to HKD 4,566, compared to HKD 1,305 in the previous year, marking a growth of 250.5%[56] - The company reported a deferred tax expense of HKD (1,961) for the period, compared to HKD (5,772) in the previous year, indicating improved tax efficiency[42] - Earnings per share for the period amounted to HKD 18,098,000, compared to HKD 2,821,000 in 2022, with 1,154,038,656 shares issued during both periods[62] - As of September 30, 2023, accounts receivable totaled HKD 3,466,000, down from HKD 3,840,000 as of March 31, 2023, indicating a decrease of approximately 9.7%[63]

Financial Performance - The company recorded revenue of HKD 238,400,000 for the fiscal year ending March 31, 2023, a decrease from HKD 263,000,000 in the same period last year, primarily due to challenges in the Hong Kong office market[50]. - Operating profit for the year was HKD 157,600,000, down from HKD 191,400,000 in the previous year, attributed to reduced rental income and increased leasing agency commissions and utility expenses[50]. - The group’s annual profit decreased to HKD 64,400,000, down from HKD 234,400,000 in the previous year, with attributable profit to shareholders at HKD 59,800,000, compared to HKD 211,800,000 last year[53]. - The company reported a share of results from joint ventures of HKD 5,300,000, a decrease from HKD 23,300,000 in the same period last year, mainly due to losses from the Hong Kong hotel operations[50]. - The group recorded a loss of HKD 50,800,000 for the fiscal period, primarily due to loan interest and operating losses, compared to a profit of HKD 28,300,000 in the previous year[59]. Dividends and Reserves - The company reported a total distributable reserve of HKD 1,258,559,000 as of March 31, 2023, compared to HKD 1,197,683,000 in 2022, reflecting an increase of approximately 5.06%[21]. - The company proposed a final dividend of HKD 0.015 per share for the year ended March 31, 2023, down from HKD 0.020 per share in 2022[20]. Customer Concentration - The top five customers accounted for approximately 33% of the total revenue, consistent with the previous year, while the largest customer represented about 12% of total revenue, up from 11%[29]. Credit Risk and Financial Instruments - The company assumes a significant increase in credit risk if contractual payments are overdue by more than 30 days, unless there is reasonable evidence to the contrary[8]. - The company’s financial instruments are classified and measured at fair value through other comprehensive income under specific conditions[1]. - The company’s major accounting policies include assessing credit risk based on both quantitative and qualitative data, including external market indicators[6]. - The company’s financial assets are subject to impairment under the expected credit loss model, which considers significant increases in credit risk since initial recognition[5]. Market Conditions - The office rental market in Hong Kong faced significant challenges, with rental rates and occupancy levels declining, marking the lowest levels in nearly 20 years[50]. - The company anticipates continued resilience in the Hong Kong office market, supported by low interest rates, despite the expected increase in new office supply[50]. - The tourism sector in Thailand showed signs of recovery, with over 11,000,000 tourists visiting in 2022 compared to only 428,000 in 2021, although still far from the pre-pandemic level of nearly 40,000,000 tourists in 2019[50]. Property Performance - The company’s investment properties in Thailand recorded a profit of HKD 38,800,000 for the year, compared to a loss of HKD 11,800,000 in the previous year[50]. - The rental income from the property in Central, Hong Kong, was HKD 56,900,000, slightly up from HKD 57,400,000 in the previous year, despite a drop in average rent[53]. - The occupancy rate of the property at 68 Yee Wo Street, Causeway Bay, was 89%, up from 86% a year earlier, with rental income of HKD 100,000,000, down from HKD 115,100,000[53]. - The average occupancy rate of Pullman Bangkok Hotel G was 55%, significantly improved from 24% in the previous year, with revenue of THB 400,700,000 (approximately HKD 91,000,000)[59]. - The investment in the two hotels in Thailand has returned to profitability, reflecting improvements in the tourism sector following the lifting of travel restrictions[59]. Governance and Compliance - The company emphasizes compliance with laws and regulations, employing external compliance and legal advisors to ensure transactions are conducted within applicable legal frameworks[96]. - The board has adopted anti-corruption policies to enhance business conduct standards and protect the group's reputation[69]. - The board consists of eight directors, including five executive directors and three independent non-executive directors, meeting the requirement of having more than one-third independent directors[157]. - The independent auditor confirmed that there were no related party transactions constituting connected transactions, except as disclosed[126]. Risk Management - The risk management and internal control system consists of five components, designed to manage risks associated with achieving business objectives[192]. - The board has reviewed the effectiveness of the group's risk management and internal control systems, finding the evaluation results satisfactory[194]. Corporate Social Responsibility - The company is committed to environmental sustainability, participating in green office initiatives and promoting energy-saving and waste recycling programs[111]. - The group made charitable and other donations of approximately HKD 748,000 during the fiscal year, an increase from HKD 336,000 in 2022[115].

Financial Performance - For the fiscal year ending March 31, 2023, the total revenue was HKD 238,397,000, a decrease of 9.4% from HKD 263,023,000 in the previous year[21] - The total comprehensive income attributable to shareholders was HKD 30,642,000, down 84.9% from HKD 190,899,000 in the prior year[5] - Operating profit for the year ended March 31, 2023, was HKD 157,561,000, a decrease of 17.7% from HKD 191,428,000 in 2022[22] - Profit attributable to shareholders for the year was HKD 59,835,000, down 71.8% from HKD 211,814,000 in the previous year[22] - Earnings per share for the year was HKD 5.18, compared to HKD 18.35 in 2022, reflecting a significant decline[22] - Total comprehensive income for the year was HKD 37,109,000, a decrease of 82.5% from HKD 211,909,000 in 2022[25] - The company reported a pre-tax profit of HKD 77,002,000, a decrease of 70% from HKD 256,731,000 in the previous year[22] - The company experienced a significant drop in share of profits from joint ventures, reporting HKD 5,264,000 compared to HKD 23,253,000 in 2022[22] - The financial expenses increased to HKD 68,999,000 in 2023 from HKD 44,362,000 in 2022[65] - The group reported a total comprehensive income of HKD 238,397,000 for the year ending March 31, 2023, down from HKD 263,023,000 in 2022[62] Assets and Liabilities - The group's total assets as of March 31, 2023, amounted to HKD 11,140,635,000, slightly up from HKD 11,132,591,000 a year earlier[8] - The group's total liabilities were HKD 2,469,122,000, a marginal increase from HKD 2,459,106,000 in the previous year[8] - The total equity attributable to shareholders was HKD 7,565,861,000, slightly up from HKD 7,558,300,000[8] - The company’s investment properties, valued at HKD 7,825,100,000, were fully mortgaged to secure bank loans of HKD 2,281,000,000[87] - Total bank borrowings as of March 31, 2023, amount to HKD 2.281 billion, with a total debt to total assets ratio of 20.5% and a net debt to total assets ratio of 18.1%[107] Cash Flow and Dividends - Cash and bank balances rose to HKD 262,773,000 from HKD 227,329,000, reflecting a 15.6% increase[7] - The company plans to distribute a final cash dividend of HKD 0.015 per share, down from HKD 0.020 in 2022, pending shareholder approval[44] - The proposed final dividend per share is HKD 0.015, down from HKD 0.020 in 2022, totaling HKD 17,311,000 compared to HKD 23,081,000 in the previous year[68] - The board has proposed a final dividend of HKD 0.015 per share for the year ended March 31, 2023, down from HKD 0.02 the previous year[108] Property and Rental Income - Rental income from property leasing was HKD 188,945,000, down 12.9% from HKD 216,920,000 in the previous year[39] - The occupancy rate of the property at 245,678 square feet in Kwun Tong was 76%, down from 80% in March 2022[53] - The rental income from the property located at 115-119 Queen's Road West, Hong Kong, was HKD 21,200,000 for the twelve months ending March 31, 2023, compared to HKD 20,600,000 in 2022, maintaining a 100% occupancy rate[54] - The total construction area of the two properties in Taikoo Shing was 792,780 square feet, with an occupancy rate of 77% as of March 31, 2023, down from 82% in 2022, resulting in a fair value loss of HKD 2,200,000[56] - The occupancy rate of the Western Club Building in Central Hong Kong reached 100%, despite a decline in average rental rates due to the overall downturn in the office market[78] - The Shanghai Jia Hua Center maintained a solid occupancy rate of 90%, down from 99% a year earlier, with a share of joint venture profit of HKD 11,000,000[79] - As of March 31, 2023, the group holds a 60% interest in a property in Causeway Bay, Hong Kong, with a rental rate of 89%, up from 86% the previous year, but rental income decreased to HKD 100 million from HKD 115.1 million[99] - The group has a 5.1% beneficial interest in three commercial buildings in Tokyo, with occupancy rates of 75%, 91%, and 90%, down from 97%, 80%, and 70% respectively, resulting in a share of losses of HKD 7.4 million[101] - The investment in Xianles Plaza in Shanghai has a 76% occupancy rate, down from 79%, and recorded a fair value loss of HKD 20.8 million compared to a gain of HKD 3.9 million the previous year[102] - The group owns a 30% stake in the Regal Hongkong Hotel, which has recently reopened after renovations, with an average occupancy rate of 60.7% and an average daily room rate of HKD 5,202, resulting in a share of losses of HKD 50.8 million[103] Market Conditions and Outlook - The office market in Hong Kong continues to face challenges, with the highest vacancy rates in decades and significant new supply expected[59] - The company is optimistic about the recovery of the hotel and retail sectors in Hong Kong following the lifting of COVID-19 restrictions, anticipating continued improvement in regional tourism[83] - The company anticipates that interest rates will remain high, continuing to exert pressure on the global economy despite potential peaks in the current cycle[105] - The refinancing of bank loans for the West Club Building and Qiaofa Building is scheduled for September 2023 and February 2024, respectively[107] Compliance and Governance - The group has maintained compliance with corporate governance codes throughout the review year[111] - The group’s financial performance for the year ended March 31, 2023, has been reviewed and found satisfactory by the audit committee[96] - The company anticipates that the new accounting standards will not have a significant impact on the consolidated financial statements in the foreseeable future[12]

Financial Performance - Revenue for the six months ended September 30, 2022, was HKD 118,089,000, a decrease of 12.7% compared to HKD 135,234,000 in the same period of 2021[6] - Operating profit for the same period was HKD 81,247,000, down 20.5% from HKD 101,981,000 in 2021[6] - Profit attributable to shareholders for the six months was HKD 11,818,000, a significant decline of 93.7% compared to HKD 186,425,000 in the previous year[6] - Earnings per share decreased to HKD 0.24 from HKD 12.73, reflecting a drop of 98.1%[6] - The total comprehensive income for the period was HKD (98,749,000), compared to HKD 112,638,000 in the previous year, indicating a significant decline[18] - The group reported a pre-tax profit of HKD 19,473,000, significantly down from HKD 198,270,000 in the previous year[42] - The group recorded a total comprehensive loss attributable to owners of the company of HKD 93,094,000 for the period, compared to a profit of HKD 40,579,000 in the previous year[18] Assets and Liabilities - Total assets as of September 30, 2022, were HKD 11,049,237,000, a slight decrease from HKD 11,132,591,000 as of March 31, 2022[11] - Total liabilities increased to HKD 2,476,846,000 from HKD 2,459,106,000, indicating a rise in financial obligations[14] - The company's retained earnings as of April 1, 2022, stood at HKD 6,574,823,000, reflecting an increase from HKD 6,376,632,000 as of April 1, 2021[18] - The total equity as of April 1, 2022, was HKD 8,673,485,000, compared to HKD 8,505,916,000 as of April 1, 2021, showing an increase of 1.97%[18] - The total bank borrowings stood at HKD 2,281,000,000, unchanged from March 31, 2022, with a total debt to total assets ratio of 20.6%[101] Cash Flow and Dividends - The net cash generated from operating activities for the six months ended September 30, 2022, was HKD 81,870,000, a decrease of 17.4% compared to HKD 99,052,000 for the same period in 2021[20] - The company did not declare an interim dividend for the current period, compared to HKD 11,540,000 in the previous year[6] - The company paid dividends to non-controlling shareholders amounting to HKD 8,000,000 during the period, down from HKD 24,800,000 in the previous year[20] - The board of directors did not recommend any interim dividend for the six months ended September 30, 2022, compared to HKD 0.01 per share in the previous year[124] Investment Properties and Revenue Segments - The group's property and hotel segment generated revenue of HKD 110,908,000, compared to HKD 130,204,000 in the prior year, representing a decrease of 14.7%[33] - The investment and other segment reported revenue of HKD 7,181,000, up from HKD 5,030,000, marking an increase of 42.7%[33] - The group's investment properties in Shanghai and Hong Kong recorded a fair value loss of HKD 21.1 million, compared to a profit of HKD 2.3 million in the previous year[89] - The occupancy rate of the Kin Sang Plaza in Kwun Tong dropped to 58% from 87% year-on-year, contributing rental income of HKD 21.5 million, down from HKD 30.8 million[90] - The property at 68 Yee Wo Street, Causeway Bay, had an occupancy rate of 81%, contributing HKD 50.2 million in rental income, down from HKD 58.1 million last year[90] Market Conditions and Challenges - The company faced challenges in the hotel and tourism sectors due to COVID-19 restrictions, leading to decreased rental rates and occupancy rates, particularly in Hong Kong[86] - The company noted that the global financial market experienced significant adjustments due to rising inflation and interest rate hikes by central banks, impacting overall market conditions[85] - The company is focusing on improving profitability in its hotels in Bangkok and Pattaya during the transitional recovery period[87] Management and Governance - The company’s management compensation for the period included director fees of HKD 138,000 and total salaries, allowances, and benefits of HKD 4,929,000, resulting in a total of HKD 5,103,000, slightly up from HKD 5,040,000 in the previous year[83] - The company has adopted the corporate governance code and complied with all its provisions during the entire period ended September 30, 2022[129] - All directors confirmed compliance with the standards set out in the code of conduct for securities transactions during the period ended September 30, 2022[131]

Financial Performance - For the fiscal year ending March 31, 2022, the total revenue recorded by the company was HKD 263,000,000, a slight decrease from HKD 274,400,000 in the previous year[7] - The operating profit for the year was HKD 191,400,000, down from HKD 208,600,000 in the previous year, attributed to reduced rental income and increased maintenance costs[7] - The net profit attributable to shareholders for the year was HKD 211,800,000, compared to HKD 292,500,000 in the previous year, reflecting a significant decline[7] - Revenue for the year ended March 31, 2022, was HKD 263,023,000, a decrease of 4.9% from HKD 274,383,000 in the previous year[196] - Operating profit for the same period was HKD 191,428,000, down 8.2% from HKD 208,596,000[196] - Net profit for the year was HKD 234,422,000, a decline of 33.9% compared to HKD 354,911,000 in the prior year[200] - Earnings per share decreased to HKD 18.35 from HKD 25.35, reflecting a 27.0% drop[196] - Total comprehensive income for the year was HKD 211,909,000, down from HKD 422,821,000, indicating a 50.0% decrease[200] - The company reported a significant increase in property operating expenses to HKD 45,862,000 from HKD 39,137,000, representing a 17.5% rise[196] - Financial costs decreased to HKD 44,362,000 from HKD 66,856,000, a reduction of 33.6%[196] - The share of profits from associates was HKD 23,253,000, down from HKD 31,303,000, reflecting a 25.7% decline[196] - The company recognized a fair value loss on equity instruments of HKD 5,263,000 compared to a loss of HKD 968,000 in the previous year[196] Property Occupancy and Rental Income - The occupancy rate of the company's property in Kwun Tong was 80% as of March 31, 2022, down from 100% in the previous year, contributing rental income of HKD 59,500,000[9] - The property located at 68 Yee Wo Street, Causeway Bay, had an occupancy rate of 86% and contributed rental income of HKD 115,100,000, slightly down from HKD 119,600,000 in the previous year[9] - The occupancy rate of the Western Club Building in Central decreased to 86% from 92% in the previous year, generating rental income of HKD 57,400,000[10] - The commercial platform at Qiao Fa Building in Hong Kong achieved a rental rate of 100%, contributing rental income of HKD 20,600,000 for the year ended March 31, 2022, up from HKD 15,500,000 in the previous year[11] - The property in Shanghai, with a 7.7% stake, recorded an occupancy rate of 99% and contributed a profit of HKD 15,100,000, compared to HKD 8,900,000 in the previous year[12] - The three commercial buildings in Tokyo, with a 5.1% stake, had occupancy rates of 97%, 80%, and 70%, showing a decline from the previous year's rates of 93%, 91%, and 90% respectively[12] - The group's investment in Xianle Square in Shanghai had an occupancy rate of 79%, down from 84% in the previous year, with a fair value increase of HKD 3,900,000[13] Challenges and Market Conditions - The company faced challenges due to high inflation and rising interest rates, impacting the rental income from investment properties[7] - The overall economic recovery in Hong Kong has been slow, with the local economy significantly affected by the COVID-19 pandemic and related restrictions[7] - The group plans to cautiously invest in the coming year due to the ongoing border closures and rising interest rates[15] - The group is optimistic about the performance of its hotels in Thailand, expecting improvements this year[15] Corporate Governance and Management - The company emphasizes strong corporate governance, adhering to the corporate governance code as per the listing rules, ensuring effective management and higher shareholder value[97] - The board consists of experienced members with over 40 years of management experience across various industries, including banking and finance[91] - The independent non-executive directors bring diverse expertise, enhancing the company's strategic decision-making capabilities[91] - The company has established a framework for effective management and a healthy corporate culture, which is essential for long-term success[97] - The board consists of eight directors, including five executive directors and three independent non-executive directors, meeting the requirement of having more than one-third independent directors[101] - The chairman and the managing director roles are clearly separated to enhance independence and accountability[102] - The company has arranged appropriate directors' and officers' liability insurance to protect against risks arising from the group's business[106] - The board regularly reviews corporate governance practices and compliance with regulations[100] - The company encourages directors to participate in professional development courses related to corporate governance and regulatory updates[112] Financial Position and Reserves - The group maintained a healthy financial position with cash and bank balances of HKD 227,300,000 as of March 31, 2022, compared to HKD 186,800,000 on March 31, 2021[15] - Total bank borrowings amounted to HKD 2,281,000,000 as of March 31, 2022, unchanged from the previous year[15] - The group's total liabilities to total assets ratio was 20.5% as of March 31, 2022, slightly down from 20.8% a year earlier[15] - The net debt to total assets ratio was 18.4% as of March 31, 2022, compared to 19.1% on March 31, 2021[15] - The group’s distributable reserves amounted to HKD 1,197,683,000 as of March 31, 2022, up from HKD 1,099,403,000 a year earlier[28] Shareholder Information - The final dividend proposed is HKD 0.02 per share, compared to zero in the previous year, with a total payout of HKD 11,540,000 for the interim dividend[24] - As of March 31, 2022, the total number of shares held by the directors amounts to 528,683,206, representing 45.81% of the total shares[41] - The largest shareholder, Forward Investments Inc., holds 283,200,215 shares, accounting for 24.54% of the total shares[48] - The second-largest shareholder, Intercontinental Enterprises Corp., possesses 215,768,260 shares, which is 18.70% of the total shares[48] - The company allows shareholders holding at least 10% of the paid-up capital to request a special general meeting[158] Environmental and Social Responsibility - The company emphasizes environmental sustainability through energy management and waste reduction initiatives[54] - The company promotes the use of electronic billing and receipts among tenants to enhance environmental practices[54] - The company is actively involved in community and educational initiatives, reflecting its commitment to corporate social responsibility[88] - The group made charitable donations of approximately HKD 336,000 in the fiscal year, down from HKD 660,000 in the previous year[61] Audit and Compliance - The financial statements for the year ended March 31, 2022, were audited by Zheng Zheng CPA Limited, which is eligible for reappointment[81] - The audit committee held two meetings during the fiscal year to review the interim and annual financial statements and ensure the integrity of financial reporting[147] - The external auditor received a fee of HKD 620,000 for statutory audit services for the fiscal year ending March 31, 2022, compared to HKD 600,000 in the previous year[152] - The company ensures that all reasonable measures are taken to prevent breaches of disclosure regulations related to insider information[129]

Financial Performance - The group's revenue for the six months ended September 30, 2021, was HKD 135,234,000, a slight decrease of 1% from HKD 137,249,000 in the same period of 2020[6]. - Operating profit for the period was HKD 101,981,000, down from HKD 108,048,000, reflecting a decrease of approximately 5%[6]. - Net profit for the period surged to HKD 186,425,000, compared to HKD 23,276,000 in the previous year, indicating a significant increase of 703%[9]. - Earnings per share increased to HKD 12.73, compared to HKD 1.04 in the same period last year, representing a growth of 1,223%[6]. - The group reported a total comprehensive income of HKD 153,217,000 for the period, compared to HKD 6,075,000 in the previous year, marking a substantial increase[10]. - The company reported a profit of HKD 186,425,000 for the period, compared to HKD 39,509,000 in the previous year, marking an increase of approximately 371.5%[19]. Assets and Liabilities - The total assets of the group as of September 30, 2021, amounted to HKD 11,094,530,000, an increase from HKD 10,956,418,000 as of March 31, 2021[15]. - Total liabilities decreased slightly to HKD 2,460,197,000 from HKD 2,450,502,000, indicating stable financial management[15]. - The total equity as of September 30, 2021, was HKD 8,634,333,000, an increase from HKD 8,109,170,000 as of September 30, 2020, representing an increase of approximately 6.5%[19]. - The total bank borrowings amounted to HKD 2,281,000,000, with 87% of the borrowings subject to floating interest rates[91]. - The total debt to total assets ratio was 20.6% as of September 30, 2021, slightly down from 20.8% as of March 31, 2021[91]. Cash Flow and Dividends - For the six months ended September 30, 2021, the net cash generated from operating activities was HKD 99,052,000, an increase from HKD 90,134,000 in the same period of 2020, representing an increase of approximately 10.6%[21]. - The company declared an interim dividend of HKD 11,540,000, compared to no dividend declared in the same period last year[6]. - The company paid dividends amounting to HKD 24,800,000 during the period, which is the same as the previous year[21]. - The company proposed an interim dividend of HKD 0.01 per share for the six months ended September 30, 2021, compared to no dividend in the previous year[112]. Investment Properties - Non-current assets, primarily investment properties, increased to HKD 10,842,239,000 from HKD 10,745,295,000[13]. - The fair value of investment properties increased to HKD 7,945,500, up from HKD 7,789,800 as of March 31, 2021, reflecting a growth of approximately 2%[50]. - The fair value change of investment properties during the period increased to a gain of HKD 139,900,000, recovering from a loss of HKD 3,600,000 in the same period of 2020[79]. - The occupancy rate of the investment property in Kwun Tong, Hong Kong, decreased to 87% from 100% in 2020, contributing rental income of HKD 30,800,000[80]. - The property at 68 Yee Wo Street, Causeway Bay, contributed rental income of HKD 58,100,000 with a fair value increase of HKD 70,000,000, while its occupancy rate was 87%[80]. Financial Management and Governance - The company’s financial risk management policies have remained unchanged since the fiscal year ended March 31, 2021, focusing on interest rate, foreign exchange, credit, liquidity, and equity price risks[29]. - The audit committee, consisting of three independent non-executive directors, reviewed and recommended the approval of the unaudited consolidated interim financial statements for the six months ended September 30, 2021[113]. - The company confirmed compliance with the corporate governance code and the standards set forth in the listing rules during the reporting period[117][118]. - The company has adopted the principles of the corporate governance code as per the listing rules and complied with applicable provisions[117]. Shareholder Information - As of September 30, 2021, the total number of ordinary shares held by major shareholders includes 283,200,215 shares (24.54%) by Forward Investments Inc. and 215,768,260 shares (18.70%) by Intercontinental Enterprises Corp.[107]. - Major shareholders include Asset-Plus Investments Ltd. with 115,351,866 shares (9.99%) and Prosperous Island Limited with 97,324,936 shares (8.43%)[107]. - The company has no outstanding share options that have not been exercised as of September 30, 2021, and no shares were bought, sold, or redeemed during the six-month period[111][114].

Economic Impact of COVID-19 - The COVID-19 pandemic significantly impacted global operations, with travel and business activities severely restricted[7] - China's GDP began to recover in the second half of 2020, marking it as the first major economy to return to growth[7] - In Hong Kong, the implementation of strict COVID-19 measures led to a decline in hotel and retail transactions related to tourism[8] - The number of tourists visiting Thailand plummeted from 39.8 million in the previous year to 6.7 million in 2020, severely affecting the tourism industry[8] - Despite the pandemic, the residential market in Hong Kong remained strong due to low interest rates and robust end-user demand[8] - The company noted a surge in new listings on the Hong Kong stock exchange, driven by Chinese tech companies seeking secondary listings amid geopolitical tensions[8] - The company is closely monitoring the evolving economic landscape and adjusting strategies accordingly to navigate challenges[7] - The financial institutions and real estate developers in China faced unprecedented levels of bond defaults due to tightened monetary policies[7] - The company anticipates continued growth in the domestic tourism and real estate sectors in China as the economy stabilizes[7] - The overall market confidence in Hong Kong remains solid despite the challenges posed by the pandemic[8] Financial Performance - Total revenue for the year ended March 31, 2021, was HKD 313.1 million, a significant decrease from HKD 615.6 million in 2020, primarily due to COVID-19 impacts[10] - The group's operating profit for the period was HKD 208.6 million, down from HKD 223.3 million in the previous year[10] - The group's net profit for the year was HKD 354.9 million, compared to HKD 75.1 million in 2020, with attributable profit to shareholders of HKD 292.5 million[10] Property Occupancy and Income - The occupancy rate of the property at 115-119 Queen's Road West reached 100%, contributing rental income of HKD 15.5 million[10] - The occupancy rate of the property in Kwun Tong was maintained at 100%, contributing rental income of HKD 66 million[10] - The investment in Shanghai's Kerry Center recorded an occupancy rate of 98%, with attributable profit of HKD 8.9 million[10] - The investment properties in Taikoo Shing had an occupancy rate of 85%, with a fair value decrease of HKD 12.4 million[14] - The investment in Xianle Square in Shanghai had an occupancy rate of 84%, with a fair value increase of HKD 11.4 million[19] Challenges in Hotel Investments - The group's hotel investments in Thailand faced significant challenges due to COVID-19, resulting in the closure of two hotels in April 2020 and a revenue of THB 121,200,000 (approximately HKD 29,900,000) for the year ending March 31, 2021, compared to THB 512,100,000 in 2020[21] - The average occupancy rate for the hotels was only 12% for the year ending March 31, 2021, down from 75% in the previous year[21] - The group recorded a net loss of HKD 87,800,000 for the year ending March 31, 2021, compared to an operating profit of HKD 132,000,000 in 2020[21] Financial Position and Liquidity - As of March 31, 2021, the group maintained cash and bank balances of HKD 186,800,000, a decrease from HKD 390,300,000 a year earlier[25] - The total bank borrowings amounted to HKD 2,281,000,000 as of March 31, 2021, unchanged from the previous year[25] - The group's total liabilities to total assets ratio improved slightly to 20.8% from 21.6% year-on-year[25] - The group has a strong liquidity position with a low debt ratio, as indicated by an interest coverage ratio of 312%[23] Investments and Joint Ventures - The group has invested in joint ventures in Thailand, China, and Japan, with book values of HKD 354,300,000, HKD 228,600,000, and HKD 135,100,000 respectively as of March 31, 2021[26] - The group's investment properties, valued at HKD 7,710,100,000, were fully mortgaged to secure bank loans of HKD 2,281,000,000[27] Corporate Governance and Compliance - The board of directors includes a mix of executive and independent non-executive members, ensuring governance and oversight[44] - The company has adopted the corporate governance code as per the listing rules, ensuring compliance and effective management practices[106] - The independent non-executive directors are required to confirm their independence annually, ensuring they remain free from any significant relationships that could impair their judgment[114] - The board meets at least four times a year to review business development and discuss corporate governance, risk management, and financial matters[116] - The company emphasizes a sound and efficient board, effective risk management, and accountability to shareholders as part of its governance framework[106] Risk Management and Internal Controls - The company has established a comprehensive risk management and internal control system, which includes monitoring environment, risk assessment, control activities, information and communication, and monitoring[135] - The effectiveness of the risk management and internal control system was reviewed by the audit committee and external auditors, with satisfactory results reported[139] - The internal audit function is established to provide objective assurance and improvement recommendations regarding the adequacy and effectiveness of the risk management and internal control system[138] Shareholder Communication and Engagement - The company recognizes the importance of maintaining good communication with shareholders, providing timely information through various formal channels including interim and annual reports[174] - The annual general meeting provides a valuable platform for direct communication between the board and shareholders, with all resolutions requiring voting[174] - The company has established procedures for shareholders to submit inquiries to the board, ensuring transparency and engagement[171] Audit and Financial Reporting - The independent auditor confirmed that the consolidated financial statements fairly present the group's financial position as of March 31, 2021, in accordance with Hong Kong Financial Reporting Standards[176] - The auditors assess the appropriateness of accounting policies and the reasonableness of accounting estimates and related disclosures[196] - The financial statements are prepared based on the going concern assumption unless there is an intention to liquidate or cease operations[190]