Financial Performance - The group's revenue increased by approximately HKD 329,000 (or 1.7%) to about HKD 19,240,000 for the year ended March 31, 2023[9]. - The group recorded a loss of approximately HKD 36,227,000, compared to a profit of approximately HKD 13,485,000 in the previous year, marking a significant decline[10]. - Rental income for the year was approximately HKD 12,738,000, a decrease of about HKD 211,000 (or 1.6%) compared to the previous year[13]. - The fair value loss on investment properties was approximately HKD 41,600,000, compared to a profit of HKD 25,700,000 in the previous year[14]. - The group's investment properties had a fair value of HKD 902,600,000 as of March 31, 2023, down from HKD 944,200,000 in the previous year[14]. - The group achieved a profit of approximately HKD 9,335,000 from the leasing segment, an increase of about HKD 315,000 (or 3.5%) from the previous year[13]. - The group reported a total of HKD 101,141,000 in investments, with a fair value of HKD 59,266,000, resulting in a loss of HKD 6,782,000 and dividend income of HKD 3,446,000[25]. Dividends and Reserves - Dividend proposed for the final dividend is HKD 0.12 per share, totaling HKD 4,800,000, subject to shareholder approval[9]. - The company plans to declare an interim dividend of HKD 0.02 per share and a final dividend of HKD 0.12 per share, maintaining a stable dividend policy[124]. - As of March 31, 2023, the company's distributable reserves were HKD 643,158,542, a decrease from HKD 648,974,439 in 2022[174]. Assets and Liabilities - As of March 31, 2023, the total bank loans of the group amounted to approximately HKD 17,106,000, with all loans required to be repaid within two years[29]. - The group held cash reserves of approximately HKD 134,256,000 as of March 31, 2023, an increase from HKD 120,634,000 in the previous year[29]. - The total value of the group's investment properties was HKD 63,000,000 as of March 31, 2023, down from HKD 65,500,000 in the previous year[31]. - The market value of the group's listed securities investment portfolio was approximately HKD 121,633,000 as of March 31, 2023, down from HKD 142,862,000 in the previous year[19]. Risks and Challenges - The group faced significant risks due to rising construction material costs and financing costs for bank loans, impacting future performance[33]. - The group anticipates increased volatility in the securities market due to changing global and local economic and political factors[37]. - The group faces risks from rising interest rates, inflation, geopolitical factors, and trade tensions, which may create uncertainties for global economic recovery[49]. Corporate Governance - The group emphasizes high standards of corporate governance, ensuring transparency, independence, and accountability[57]. - The board consists of two executive directors, three non-executive directors, and three independent non-executive directors[58]. - The board held four meetings during the year, with an attendance rate of 97%[61]. - The company has established mechanisms to ensure the board receives independent opinions, which are reviewed annually[68]. - All independent non-executive directors confirmed their independence, complying with the listing rules[63]. Environmental and Social Responsibility - The company is committed to environmental protection and has established an environmental policy to mitigate negative impacts[135]. - The company has not reported any significant direct or indirect emissions or violations of environmental laws during the year[130]. - Total greenhouse gas emissions for 2023 were 8.63 tons, a slight decrease of 0.1% from 8.64 tons in 2022[138]. - The company has implemented various measures to reduce energy and paper consumption, including using energy-efficient appliances and promoting double-sided printing[138]. Employee and Workforce Management - As of March 31, 2023, the company had four employees, with total employee compensation amounting to approximately HKD 4,302,000, a slight decrease from HKD 4,313,000 in 2022[43]. - Employee turnover rate is 0%, indicating no loss of staff during the reporting period[151]. - 25% of employees received training or education during the year, maintaining the same percentage as the previous year[156]. - The company promotes equal employment opportunities and diversity among its workforce[150]. Compliance and Legal Matters - The company has complied with all relevant laws and regulations, with no confirmed violations or penalties reported for the fiscal year ending March 31, 2023[47]. - The company has not encountered any confirmed incidents of corruption or legal proceedings related to bribery during the year[161]. - The company has established procedures for handling and disclosing inside information in accordance with the Securities and Futures Ordinance[105].

香港交易及結算所有限公司及香港聯合 交易所有限公司對本公告的內容概 不負責，對其準確性或完整性亦不發表任何聲明，並明確表示，概不對因 本公佈全部或任何部份內容而產生或因倚賴該等內容而引致的任何損失承 擔任何責任。 截至二零二三年三月三十一日止年度 業績公告 永發置業有限公司(「本公司」)董事會宣佈本公司及其附屬公司(「本集團」)截至二零二三年三月三十一日 止年度已審核綜合業績，以及截至二零二二年三月三十一日止年度的比較數字。本公司審核委員會已審閱 本集團綜合業績。 綜合損益及其他全面收益表 截至二零二三年三月三十一日止年度 二零二三年 二零二二年 附註 港元 港元 營業額 4 19,239,752 18,910,935 其他收入及虧損（淨額） 5 (5,665,577) (22,657,865) 投資物業公平價值（虧損）／溢利 (41,600,000) 25,700,000 行政及經營費用 (6,402,696) (6,866,012) ...

Revenue and Profitability - Revenue for the six months ended September 30, 2022, was HKD 12,089 million, slightly up from HKD 12,084 million in the previous year, representing a 0.04% increase[2] - The company reported a loss attributable to shareholders of HKD 29,920 million for the period, compared to a profit of HKD 8,652 million in the same period last year, indicating a significant decline[2] - The group's profit before tax for the period was HKD (29,347) million, compared to a profit of HKD 9,249 million in the previous year[18] - The total comprehensive loss for the period was HKD 44,727 million, compared to a total comprehensive income of HKD 4,665 million in the previous year[4] Investment Properties - The fair value loss on investment properties was HKD 20,700 million, contrasting with a gain of HKD 19,000 million in the prior year[2] - The group reported a loss from fair value changes of investment properties amounting to HKD (17,682) million for the period[18] - The total value of investment properties as of September 30, 2022, was HKD 923,500,000, down from HKD 944,200,000 as of March 31, 2022, indicating a decrease of 2.19%[33] - As of September 30, 2022, the fair value of the company's investment properties was HKD 923,500,000, down from HKD 944,200,000 as of March 31, 2022[74] Cash Flow and Liquidity - Cash and cash equivalents at the end of the period stood at HKD 130,797 million, an increase from HKD 125,710 million at the end of the previous year[9] - Operating cash flow for the period was HKD 13,202 million, significantly higher than HKD 5,189 million in the prior year[9] - The company incurred financing costs of HKD 204 million, up from HKD 152 million in the previous year, reflecting increased borrowing costs[2] - The total bank loans secured as of September 30, 2022, amounted to approximately HKD 17,511 million, a decrease from HKD 17,916 million as of March 31, 2022[45] Dividends and Shareholder Returns - The company paid dividends of HKD 4,800 million during the period, consistent with the previous year[8] - The company proposed an interim dividend of HKD 0.02 per share, totaling HKD 800,000, consistent with the previous year[49] Assets and Liabilities - The net asset value decreased to HKD 1,141,904 million from HKD 1,191,431 million at the end of the previous fiscal year[6] - The company's total assets less current liabilities were HKD 1,143,023 million, down from HKD 1,192,518 million[6] - The group's total assets as of September 30, 2022, amounted to HKD 1,149,372 million, down from HKD 1,198,037 million as of March 31, 2022[22] - The group's total liabilities as of September 30, 2022, were HKD 26,132 million, an increase from HKD 23,847 million as of March 31, 2022[22] Segment Performance - The group’s segment revenue from securities investment was HKD 5,772 million, compared to HKD 5,615 million in the previous year[18] - The group’s segment loss from property development was HKD (12,475) million, compared to a loss of HKD (13,805) million in the previous year[18] - Total rental income from investment properties and dividend income from listed securities for the six months ended September 30, 2022, was HKD 6,317,000, compared to HKD 6,469,000 for the same period in 2021, representing a decrease of 2.35%[25] Financial Instruments and Fair Value - The fair value of equity instruments measured at fair value through other comprehensive income decreased to HKD 54,665,000 as of September 30, 2022, from HKD 70,315,000 as of March 31, 2022, indicating a decline of 22.31%[36] - Fair value losses on equity instruments measured at fair value through profit or loss amounted to approximately HKD 17,692,000, while losses measured at fair value through other comprehensive income were about HKD 14,807,000[78] - The fair value of financial assets classified as Level 1 amounted to HKD 105,737 million as of September 30, 2022[56] Management and Compliance - The group has not adopted any new accounting standards that would have a significant impact on its financial performance and position[12] - The group’s management expects no significant impact from new accounting standards that have been issued but are not yet effective[12] - The company has maintained compliance with all bank financing covenants as of September 30, 2022[46] - The company has adopted the "Standard Code for Securities Transactions by Directors" and confirmed compliance with the required standards as of September 30, 2022[67] Employee Compensation - The company’s management compensation for key personnel was reported at HKD 1,330,000 for the period[52] - The company had a total of four employees (excluding two executive directors) as of September 30, 2022, with total employee compensation amounting to approximately HKD 854,000[70] Market Conditions and Future Outlook - The group anticipates continued improvement in leasing business as COVID-19 measures are expected to be relaxed by the Hong Kong government[95] - The group plans to adjust its securities investment portfolio in response to ongoing market volatility due to rising interest rates and geopolitical factors[95] - The group has no significant foreign exchange risk or currency fluctuations as its business activities are primarily conducted in Hong Kong and in HKD[93]

Financial Performance - The group's revenue decreased by approximately HKD 1,937,000 (or 9.3%) to about HKD 18,911,000 for the year ended March 31, 2022[10]. - The group recorded a profit of approximately HKD 13,485,000, a significant improvement of about HKD 17,156,000 compared to a loss of HKD 3,671,000 in the previous year[10]. - Rental income was approximately HKD 12,948,000, down by about HKD 391,000 (or 2.9%) due to COVID-19 related rent concessions and increased vacancy rates[13]. - The fair value gain on investment properties was approximately HKD 25,700,000, compared to a loss of HKD 28,100,000 in the previous year, with the fair value of investment properties at HKD 944,200,000 as of March 31, 2022[14]. - The group recorded a profit before tax of HKD 14,782,081, a turnaround from a loss of HKD 2,347,338, representing an increase of 729.7%[11]. - Dividend income increased by approximately HKD 1,493,000 (or 30.6%) to about HKD 6,370,000[18]. - The market value of the group's listed securities investment portfolio was approximately HKD 142,862,000 as of March 31, 2022, down from HKD 183,692,000 in the previous year[18]. - The group recorded unrealized losses on equity instruments measured at fair value through profit or loss of approximately HKD 23,122,000, compared to HKD 6,092,000 in the previous year[18]. - As of March 31, 2022, the total value of the group's investment properties was HKD 65,500 million, down from HKD 67,500 million in the previous year[31]. - The group held cash reserves of approximately HKD 120,634 million as of March 31, 2022, compared to HKD 108,291 million in the previous year[29]. - The total amount of bank loans was approximately HKD 17,916 million, with a debt-to-equity ratio of 1.5%[29]. - The group's securities portfolio had a fair value of HKD 70,887 million, with a fair value gain/loss of HKD (7,053) million for the year[1]. - The group reported a sales profit of approximately HKD 3,447 million from the sale of New World Development Company Limited's securities[22]. - The group has committed but unallocated capital expenditure of HKD 13,050 million for property redevelopment projects[29]. COVID-19 Impact - The group faced significant risks due to the ongoing COVID-19 pandemic, affecting property leasing and investment returns[33]. - The group has provided temporary rent concessions to tenants based on their actual business conditions since the outbreak of COVID-19, anticipating continued downward pressure on rental income[47]. - The group expects potential further waves of COVID-19, which may continue to exert pressure on property rental income[47]. - The group anticipates that recent net population movements will impact local economic recovery, as well as rental yields and property values in Hong Kong[36]. Governance and Board Structure - The board consists of two executive directors (one being the chairman), three non-executive directors, and three independent non-executive directors[54]. - The board held four meetings during the year ending March 31, 2022, with a 100% attendance rate[57]. - The company has adopted the "Corporate Governance Code" as a framework for its governance practices[52]. - The company does not have a specific CEO; strategic decisions require approval from all executive directors[52]. - The remuneration committee reviews the compensation of executive and non-executive directors and provides recommendations to the board[66]. - All directors have undergone continuous professional development, with each attending three relevant training sessions[61]. - The company has no fixed term for non-executive and independent non-executive directors, who rotate according to the company's articles[65]. - The board is responsible for formulating group strategies and overseeing business management[56]. - The company has not purchased insurance for directors against litigation actions due to prudent management policies[52]. - The company secretary determines the agenda for board meetings under the chairman's direction, ensuring timely and adequate information is provided to all directors[62]. - The Compensation Committee held one meeting during the fiscal year ending March 31, 2022, with a 100% attendance rate[68]. - The Compensation Committee reviewed the executive directors' remuneration policy and assessed the performance of executive directors[68]. - The Nomination Committee also held one meeting during the fiscal year ending March 31, 2022, with a 100% attendance rate[73]. - The Nomination Committee evaluated the composition and structure of the board and assessed the independence of independent non-executive directors[74]. - The board currently consists of six male directors and two female directors, aiming for at least one female director or a 25% female representation[80]. - The company has adopted a board diversity policy since September 1, 2013, considering various factors such as gender, age, and professional experience[78]. - The Nomination Committee is authorized to identify suitable candidates for board membership through various channels, including recommendations from current directors[83]. - The company emphasizes that all new appointees must retire and stand for re-election at the next annual general meeting[76]. - The Nomination Committee will assess the suitability of directors for reappointment based on the group's strategy and board composition[85]. - The Audit Committee held two meetings during the year ended March 31, 2022, with a 100% attendance rate[94]. - The company has established a risk management and internal control system, which was reviewed by the Board and found to be effective for the year ended March 31, 2022[103]. - The Governance Committee reviewed the company's compliance with governance codes and policies during the year[89]. - The Audit Committee reviewed the financial statements to ensure their completeness, accuracy, and fairness[95]. - The company has a structured risk governance framework involving multiple layers of oversight, including an independent professional advisor[102]. - The Board has confirmed that there are no significant uncertainties affecting the company's ability to continue as a going concern[107]. - The Governance Committee consists of three independent non-executive directors, one executive director, and two non-executive directors[88]. - The company emphasizes the importance of continuous professional development for directors and senior management[89]. Shareholder Engagement and Dividends - The company aims to provide stable and sustainable returns to shareholders through a stable dividend policy, proposing an interim dividend of HKD 0.02 and a final dividend of HKD 0.12 per ordinary share[122]. - The board may declare special dividends based on individual circumstances, particularly from significant capital gains resulting from asset sales[123]. - The board considers the group's financial performance, general financial condition, and future operational and liquidity status when determining dividend payments[124]. - The board retains the absolute right to review and amend the dividend policy at any time, without guaranteeing any specific dividend amount in any given period[124]. - Shareholders holding at least 2.5% of total voting rights can request the company to circulate statements regarding resolutions to be discussed at the annual general meeting[114]. - The company typically holds its annual general meeting in August or September each year[112]. - Shareholders representing at least 5% of voting rights can request the company to convene a special general meeting[118]. - The company encourages shareholder participation in the annual general meeting and allows for proxy voting[119]. - The company will ensure compliance with the procedures for shareholder proposals and resolutions as outlined in the Companies Ordinance[113]. Environmental Impact and Policies - The group has not engaged in property construction during the year, resulting in minimal environmental impact from its operations[130]. - The group aims to reduce electricity consumption and paper usage through various methods, with energy efficiency targets set between 14,500 kWh and 16,400 kWh for the year[133]. - The group produced no significant hazardous or non-hazardous waste, with non-hazardous waste primarily consisting of paper waste from daily operations[134]. - The group has implemented an environmental policy to mitigate negative impacts on the environment and conducts annual reviews of this policy[135]. - The group has assessed climate change risks, including potential impacts from extreme weather events, and is taking preventive measures to minimize these risks[139]. - Total greenhouse gas emissions increased to 8.64 tons in 2022 from 8.31 tons in 2021, representing a change of 4.0%[140]. - Indirect emissions from purchased electricity rose to 5.75 tons in 2022, up from 5.37 tons in 2021, marking a 7.1% increase[140]. - Energy consumption expenditure surged by 161.9% to HKD 19,810 in 2022 from HKD 7,565 in 2021[146]. - Total paper consumption decreased to 62.4 kg for office paper in 2022, down 16.6% from 74.8 kg in 2021[149]. - Total paper consumption for printed publications slightly increased to 539.0 kg in 2022, a 0.6% rise from 536.0 kg in 2021[149]. - The company reported a total indirect energy consumption of 14,740 kWh in 2022, an increase of 1.7% from 14,500 kWh in 2021[146]. - The company did not provide water usage data due to operational control by the building management[155]. Employee Relations and Policies - The company maintains a strict employment policy ensuring fair treatment and diversity among employees[157]. - As of March 31, 2022, the company employed a total of four long-term full-time employees[161]. - The company has a zero-tolerance policy towards child labor and forced labor, ensuring compliance with relevant laws[158]. - The company had a total of 4 employees in both 2022 and 2021, with a gender distribution of 50% male and 50% female[162]. - Employee turnover rate remained at 0% for both years, indicating stable workforce retention[162]. - The average length of service for employees increased from 12.8 years in 2021 to 13.8 years in 2022[162]. - 25% of employees received training or education in 2022, a decrease from 50% in 2021[170]. - The total hours of job-related training per employee significantly decreased from 320 hours in 2021 to 40 hours in 2022[170]. - The company reported no violations of employment laws or regulations during the year[163]. - There were no reported incidents of workplace injuries or occupational diseases in the past three years[168]. - The company encourages employees to participate in community volunteer services, contributing approximately 16 hours of service during the year[179]. Business Activities - The main business activities of the company include property and stock investment, property development, and securities trading, with no significant changes reported for the year[183]. - The company has implemented a whistleblowing policy to encourage reporting of any misconduct or violations, with no confirmed incidents of corruption reported during the year[175]. - The company declared an interim dividend of HKD 0.02 per share, totaling HKD 800,000, and proposed a final dividend of HKD 0.12 per share, amounting to HKD 4,800,000 based on 40,000,000 shares issued[187]. - As of March 31, 2022, the company's distributable reserves were HKD 648,974,439, a decrease from HKD 664,028,546 in the previous year[190]. - The total shareholding of Executive Director Mr. Wu Tai Wai is 7,269,577 shares, representing approximately 18.2% of the issued share capital[197]. - Executive Director Mr. Wu Tai Hsien holds a total of 14,686,423 shares, accounting for approximately 36.7% of the issued share capital[197]. - Non-Executive Director Mr. Su Kwok Leung has a total shareholding of 5,961,077 shares, which is about 14.9% of the issued share capital[197]. - Non-Executive Director Mr. Su Kwok Wai holds 5,025,923 shares, representing approximately 12.6% of the issued share capital[197]. - The company did not enter into any stock-linked agreements during the year and had none at year-end[189]. - The financial performance and position of the group for the year ended March 31, 2022, are detailed in the consolidated financial report from pages 47 to 100[186]. - The company’s board of directors includes a mix of executive and non-executive members, ensuring a diverse governance structure[194]. - The company has assessed the independence of its independent non-executive directors, confirming their independence in accordance with listing rules[195].

Financial Performance - Revenue for the six months ended September 30, 2021, was HKD 12,084,000, an increase of 9.3% compared to HKD 11,054,000 for the same period in 2020[8]. - The company reported a profit attributable to owners of HKD 8,652,000, compared to a loss of HKD 24,066,000 in the previous year, marking a significant turnaround[8]. - Basic and diluted earnings per share for the period were HKD 21.6, compared to a loss per share of HKD 60.2 in the prior year[8]. - The total comprehensive income for the six months ended September 30, 2021, was HKD 4,665,000, which includes a profit of HKD 8,652,000[17]. - The company reported a pre-tax profit of HKD 9,249 million for the six months ended September 30, 2021, compared to a loss of HKD 23,408 million in the same period of 2020[38]. Investment Properties - The fair value gain on investment properties was HKD 19,000,000, a recovery from a loss of HKD 45,200,000 in the previous period[8]. - The fair value of investment properties at the end of the period was HKD 937,500 million, an increase from HKD 918,500 million at the beginning of the period[42]. - The group’s investment properties had a fair value of HKD 937,500,000 as of September 30, 2021, up from HKD 918,500,000 as of March 31, 2021[86]. - The group anticipates rental income from properties to face downward pressure in the short to medium term, although the extent is expected to be moderate[110]. Cash Flow and Liquidity - The net cash inflow from operating activities for the six months ended September 30, 2021, was HKD 5,189,000, compared to HKD 136,175,000 in the previous year[19]. - The total cash and cash equivalents at the end of the period were HKD 125,710,000, down from HKD 158,989,000 a year earlier[19]. - The group held cash reserves of approximately HKD 125,710 million as of September 30, 2021, an increase from HKD 108,290 million as of March 31, 2021[104]. - The group will continue to adopt prudent financial policies to ensure sufficient cash flow and credit facilities for future operations and capital expenditures[104]. Dividends - The company paid dividends of HKD 4,800,000 during the period, a decrease from HKD 10,800,000 in the previous year[19]. - The proposed interim dividend for the six months ending September 30, 2021, is HKD 800,000, unchanged from the previous year[60]. - The company declared a final dividend of HKD 0.12 per ordinary share for the six months ended September 30, 2021, totaling HKD 4,800,000, consistent with the previous year[61]. - The company did not declare a special final dividend for the six months ended September 30, 2021, compared to HKD 0.15 per share totaling HKD 6,000,000 in the previous year[61]. Expenses and Costs - Administrative and operating expenses were HKD 3,134,000, a slight increase from HKD 3,051,000 in the previous year[8]. - Financing costs decreased to HKD 152,000 from HKD 259,000, indicating improved cost management[8]. - The company incurred finance costs of HKD 152 million, down from HKD 259 million in the previous year, a reduction of 41.2%[38]. Shareholder Information - The major shareholder, Mr. Wu Da-xian, holds approximately 36.7% of the issued share capital, totaling 14,686,423 shares[71]. - The company has no share buybacks or redemptions during the reporting period[77]. - The group has not violated any bank financing covenants as of September 30, 2021[56]. Market and Future Outlook - The company continues to focus on enhancing its investment property portfolio and exploring new market opportunities for expansion[8]. - The group plans to continue reviewing its securities investment portfolio and make appropriate adjustments to enhance dividend yields amid market volatility[110]. - The group expects to seek higher returns from property investments while balancing the risks and returns of each investment[110].

Financial Performance - The group's revenue decreased by approximately HKD 1,047,000 (or 4.8%) to about HKD 20,848,000[7] - The group recorded a loss of approximately HKD 3,671,000, significantly improving by about HKD 85,639,000 (or 95.9%) compared to the previous year's loss[8] - Rental income for the group was HKD 13,339,000, down approximately HKD 1,719,000 (or 11.4%) due to COVID-19 pandemic impacts[11] - The fair value loss of investment properties was approximately HKD 28,100,000, a decrease from HKD 85,101,000 in the previous year[12] - The group successfully applied for a refund of buyer's stamp duty amounting to HKD 17,407,000, which was recognized in the current year's income[11] - Dividend per share proposed for the final dividend is HKD 0.12, totaling HKD 4,800,000, pending shareholder approval[7] - The group recorded a profit of HKD 30,000 from the fair value of development properties, down from HKD 120,000 in the previous year[13] - The group reported a decrease in dividend income by approximately HKD 1,920,000 (or 28.2%) to about HKD 4,878,000, primarily due to the sale of HSBC Holdings shares[14] - The group recorded a sales profit of approximately HKD 2,630,000 from equity instruments measured at fair value through profit or loss[18] - The group recorded an unrealized loss of approximately HKD 6,092,000 on equity instruments measured at fair value through profit or loss for the year, compared to a loss of HKD 19,902,000 in 2020[20] - The fair value of the group's listed securities investment portfolio as of March 31, 2021, was approximately HKD 183,692,000, an increase from HKD 137,362,000 in 2020[20] Investment and Securities - The group purchased various listed securities for long-term investment at a cost of approximately HKD 18,000,000 during the year[19] - The group’s securities long-term investment portfolio had a total fair value of HKD 95,262,000 as of March 31, 2021, with a fair value gain of HKD 15,002,000 during the year[24] - The group recorded an unrealized gain of approximately HKD 15,002,000 on equity instruments measured at fair value through other comprehensive income, compared to an unrealized loss of HKD 33,663,000 in 2020[20] Debt and Cash Management - The total bank loans amounted to approximately HKD 18,727,000 as of March 31, 2021, down from HKD 19,537,000 in 2020, with a debt-to-equity ratio of 1.6%[32] - The group held cash reserves of approximately HKD 108,291,000 as of March 31, 2021, compared to HKD 27,979,000 in 2020[32] - The group has committed but not provided for capital expenditure of approximately HKD 13,050,000 for property redevelopment projects[32] Market Conditions and Risks - The group has faced unprecedented inherent risks due to the COVID-19 pandemic, impacting property leasing, development, and investment returns[36] - The property market in Hong Kong is experiencing volatility, with cooling measures still affecting residential market transactions and values[40] - The group anticipates ongoing risks in the property market, particularly in light of geopolitical factors and the potential for new COVID-19 variants[36] - The group will closely monitor the spread of new virus variants and adjust leasing policies to minimize vacancy rates[52] - The group anticipates continued pressure on property values and rental returns due to ongoing lockdowns and quarantine measures[52] Corporate Governance - The board emphasizes high levels of corporate governance, focusing on transparency, independence, and accountability to protect group assets and shareholder interests[57] - The board has complied with all provisions of the corporate governance code as of March 31, 2021, ensuring strategic decisions are approved by executive directors[58] - The board held four meetings during the year with a 100% attendance rate, demonstrating commitment to governance[63] - The company has adopted the standard code for securities trading by directors, ensuring compliance throughout the fiscal year[59] - The company’s risk management and internal control systems were reviewed, and no significant weaknesses were identified, indicating the systems are effective and adequate[111] - The company’s governance structure includes independent non-executive directors to enhance oversight and accountability[95] Environmental and Social Responsibility - The company has established an environmental policy to reduce negative impacts on the environment and conducts annual reviews of this policy[146] - The total greenhouse gas emissions (Scope 1, 2, and 3) for the year 2021 were 8.31 tons, a decrease of 33.1% from 12.43 tons in 2020[150] - The company emphasizes the importance of environmental, social, and governance (ESG) performance for sustainable business development[139] - The company encourages employees to participate in community volunteer services, contributing a total of 100 hours during the year[183] Employee Management - As of March 31, 2021, the group employed four staff members, maintaining a compensation policy based on individual performance and responsibilities[45] - The company maintained a stable workforce of 4 employees, with no turnover rate reported[167] - Average employee tenure increased from 11.8 years in 2020 to 12.8 years in 2021[167] - Total number of employees receiving training/education is 2, representing 50% of the workforce[174] - Total hours of job-related training/education for employees is 320, up from 68 hours in the previous year[174] Dividends and Shareholder Engagement - The company aims to provide stable and sustainable returns to its shareholders through a stable dividend policy, proposing an interim dividend of HKD 0.02 per share and a final dividend of HKD 0.12 per share[134] - The company has a policy to hold an annual general meeting within six months after the end of each financial year, typically in August or September[122] - The company encourages shareholder participation in the annual general meeting and allows for proxy voting[130] - The board will review the dividend policy periodically and reserves the right to update or cancel it at any time[136]

Revenue and Income - Revenue for the six months ended September 30, 2020, was HKD 11,054,000, a decrease of 14.7% compared to HKD 12,957,000 for the same period in 2019[9] - Other income increased significantly to HKD 17,680,000 from HKD 2,747,000, representing a growth of 543.5%[9] - Investment property rental income decreased to HKD 6,738,000, down 15.4% from HKD 7,966,000 in the previous year[35] - The company received a one-time government subsidy under the "Employment Support Scheme," contributing to other income[38] - Dividend income decreased by approximately HKD 1,344,000 (or 28.6%) to about HKD 3,359,000 compared to the previous year[89] Loss and Financial Performance - Loss before tax for the period was HKD 23,408,000, an improvement of 16.5% compared to a loss of HKD 27,914,000 in the previous year[9] - The total comprehensive loss attributable to owners of the company was HKD 22,526,000, compared to HKD 46,940,000 in the same period last year, indicating a reduction of 51.9%[11] - The net loss before tax for the six months ended September 30, 2020, was HKD 23,408,000, compared to a loss of HKD 27,914,000 in the same period of 2019[32] - The group recorded a loss of approximately HKD 24,066,000, which is a reduction of about HKD 4,593,000 (or 16.0%) compared to the previous year[85] Assets and Liabilities - Total assets as of September 30, 2020, were HKD 1,159,671,000, a decrease from HKD 1,192,989,000 as of March 31, 2020[14] - Total liabilities increased to HKD 30,826,000 from HKD 26,632,000, indicating a rise in financial obligations[32] - The total trade and other receivables net amount as of September 30, 2020, was HKD 587,000, a significant decrease from HKD 106,605,000 as of March 31, 2020[51] - As of September 30, 2020, the total bank loans of the group amounted to approximately HKD 19,132 million, with a debt-to-equity ratio of 1.6%[101] Cash Flow and Investments - Operating cash flow for the six months ended September 30, 2020, was HKD 136,175,000, a significant improvement from a cash outflow of HKD 87,458,000 in the prior year[19] - The company recorded a net cash inflow from investing activities of HKD 6,299,000, compared to a net cash outflow of HKD 393,329,000 in the previous year[19] - The financing activities resulted in a net cash outflow of HKD 11,464,000, which is an increase from a net cash outflow of HKD 960,000 in the same period last year[19] - The group’s securities investment portfolio had a total investment cost of HKD 64,664 million, with a fair value of HKD 52,067 million, resulting in a fair value loss of HKD 3,632 million during the period[97] Fair Value and Property - The fair value loss on investment properties was HKD 45,200,000, which increased from HKD 29,745,000 in the previous year[9] - The fair value of investment properties decreased to HKD 895,400,000 from HKD 940,000,000 as of March 31, 2020, reflecting a loss of HKD 45,200,000 during the period[44] - The total value of the group's investment properties as of September 30, 2020, was approximately HKD 69,700,000, down from HKD 78,200,000 as of March 31, 2020[45] - The group anticipates further downward pressure on rental income and property prices in the short term due to the impact of the COVID-19 pandemic and political tensions between the US and China[105] Dividends - The company declared dividends amounting to HKD 10,800,000 during the reporting period[19] - The group proposed an interim dividend of HKD 0.02 per ordinary share, totaling HKD 800,000, consistent with the previous year, and an additional special interim dividend of HKD 0.03 per ordinary share, totaling HKD 1,200,000[59] - The company declared a final ordinary dividend of HKD 0.12 per share and a special dividend of HKD 0.15 per share, totaling HKD 10,800,000 for the period ending September 30, 2020[60] Management and Governance - Key management personnel compensation totaled HKD 1,006,000 for the six months ending September 30, 2020, compared to HKD 994,000 in the previous year[63] - The audit committee, consisting of three independent non-executive directors and one non-executive director, reviewed the group's accounting principles and financial reporting matters[80] Future Outlook - The company plans to focus on market expansion and new product development to improve future performance[39] - The group plans to continue reviewing its securities investment portfolio and make appropriate adjustments in response to market volatility[105] - The group aims to adopt a prudent financial policy to ensure sufficient cash flow and credit facilities for future operations and capital expenditures[102] - The group will continue to seek higher return property investments while balancing the associated risks and returns[105]

Financial Performance - The group's revenue decreased by HKD 4,888,937 (or 18.25%) to HKD 21,894,215[5] - The group recorded a loss of HKD 89,310,429, compared to a profit of HKD 165,638,663 in the previous year[5] - Rental income fell to HKD 15,057,524, a decrease of HKD 1,998,245 (or 11.7%) compared to last year[10] - The fair value of investment properties recorded a loss of HKD 85,101,147, compared to a profit of HKD 63,609,939 in the previous year[11] - The fair value of the group's investment properties as of March 31, 2020, was HKD 940,000,000, up from HKD 610,800,000 in the previous year[11] - Dividend income decreased by HKD 1,349,243 (or 16.6%) to HKD 6,797,674 due to HSBC Holdings Limited canceling its dividend[13] - The group's market value of listed securities investment portfolio was HKD 137,362,455, down from HKD 208,773,698 in the previous year[14] - The group recorded a fair value gain of HKD 120,000 on development properties, compared to a loss of HKD 12,800 in the previous year[12] - The company anticipates a decrease of approximately 10% in rental income for the fiscal year ending March 31, 2021, compared to the fiscal year ending March 31, 2020[38] - The company expects a reduction in dividend income for the fiscal year ending March 31, 2021, to approximately HKD 4,407,000, a decrease of about 35% from HKD 6,798,000 for the fiscal year ending March 31, 2020[39] Investment and Acquisitions - The group acquired a redevelopment site at Fuk Chuen Street for approximately HKD 404,876,000[10] - The company has sold securities investments in the public market for a total consideration of approximately HKD 48,400,000, reflecting a strategic adjustment in response to market volatility[39] - The company continues to enhance the quality of its property portfolio to improve performance, focusing on long-term feasibility studies before major acquisitions[29] - The company emphasizes prudent financial management and long-term growth in its investment strategy, particularly in Hong Kong listed securities[32] - The company acknowledges significant strategic risks associated with capital expenditures and long-term borrowing in response to market demand and competition[31] Financial Management and Policies - The group plans to adopt a prudent financial policy to ensure sufficient cash flow and credit facilities for future operations and capital expenditures[26] - The group's bank borrowings amounted to HKD 19,537,491, a decrease from HKD 20,525,200 in the previous year, with a debt-to-equity ratio of 1.6%[25] - Cash reserves decreased significantly to approximately HKD 28,000,000 from HKD 518,000,000 in the previous year, following the acquisition of properties[26] - The group anticipates capital expenditures for property redevelopment projects, with HKD 14,360,000 in contracted but unpaid capital commitments[26] Market Conditions and Risks - The ongoing social unrest in Hong Kong has negatively impacted market consumption sentiment, affecting property values and rental returns[28] - The COVID-19 outbreak has posed unprecedented risks, severely impacting economic activities and leading to closures in retail, dining, and tourism sectors[28] - The group will consider market trends and government measures when making investment decisions, particularly in light of cooling measures in the Hong Kong residential market[28] Corporate Governance - The board consists of two executive directors, three non-executive directors, and three independent non-executive directors[46] - The board held four meetings during the year, achieving a 100% attendance rate[51] - The company has no specific CEO; strategic decisions require approval from all executive directors[55] - The remuneration committee, consisting of three independent non-executive directors and one executive director, held one meeting with a 100% attendance rate[61] - The company has adopted the "Code of Conduct for Directors' Securities Transactions" and complied with it during the fiscal year[45] - The board has delegated authority to the management team, led by the two executive directors, to execute board resolutions and oversee daily operations[50] - The company has no insurance for directors' actions due to a conservative management policy, which will be reviewed periodically[49] - All directors have participated in ongoing training and development to fulfill their roles effectively[54] - The company has no fixed term for non-executive and independent non-executive directors, who rotate according to the company's articles[59] - The board is responsible for formulating group strategies and monitoring business management[50] Risk Management - The board is responsible for the risk management and internal control systems, ensuring their effectiveness in achieving strategic objectives[86] - The risk management team was formally established in June 2017, continuously identifying and managing financial and non-financial risks[87] - The independent professional advisor (IPA) provides independent assurance on the effectiveness of the risk management and internal control systems[88] - The board conducted an annual review of the risk management and internal control systems, finding them effective and sufficient for the year[89] Environmental, Social, and Governance (ESG) Initiatives - The company has established an Environmental, Social, and Governance (ESG) working group to assess and manage ESG-related risks and opportunities[114] - The company is committed to reducing its environmental impact while enhancing social responsibility and effective corporate governance[114] - The total greenhouse gas emissions for the fiscal year amounted to 12.43 tons, an increase of 11.0% from 11.20 tons in the previous year[124] - The indirect emissions from purchased electricity accounted for 69.1% of total emissions, with a total of 8.59 tons reported[124] - The company has maintained compliance with Hong Kong environmental laws, with no confirmed incidents of environmental violations or fines[119] - The company has adopted an "Environmental Policy" since March 2017 to minimize its operational impact on the environment[120] Employee Management and Development - The company has maintained a stable workforce of four employees as of March 31, 2020, ensuring compensation policies are aligned with individual performance[33] - Employee training participation remained stable at 50% with 2 employees receiving training in both 2019 and 2020[145] - Average training hours per employee decreased from 20 hours in 2019 to 17 hours in 2020[145] - The average service period for employees increased from 10.8 years in 2019 to 11.8 years in 2020[140] - No employee turnover was reported, maintaining a turnover rate of 0%[140] - The company encourages employees to pursue further training and education, supporting their professional development[144] Shareholder Engagement - The company aims to provide stable and sustainable returns to shareholders through a consistent dividend policy, proposing an interim dividend of HKD 0.02 and a final dividend of HKD 0.12 per ordinary share[109] - The board of directors will consider various factors when determining dividends, including the financial performance of the group, future capital commitments, and market conditions[111] - The company encourages shareholder participation in annual general meetings and allows for direct inquiries to the board via email[106] - Shareholders holding at least 2.5% of the voting rights can request the company to circulate statements regarding proposed resolutions at the annual general meeting[101] Audit and Compliance - The audit committee reviewed the accounting principles and practices adopted by the group, ensuring the completeness and accuracy of the financial statements for the year ended March 31, 2020[83] - The total fees for audit services amounted to HKD 460,000, while non-audit services totaled HKD 146,674 for the year ended March 31, 2020[84] - The consolidated financial statements for the year ended March 31, 2020, were audited by Hong Kong Certified Public Accountants[187] - The company has not changed auditors in the past three years, maintaining continuity in financial oversight[188] Business Operations - The major business activities of the company include property and stock investment, property development, and securities trading, with no significant changes reported during the year[157] - The largest tenant accounts for 33% of the group's leasing revenue, while the top five tenants collectively account for 70%[181] - The company has not engaged in any significant purchases during the fiscal year ending March 31, 2020[183] - There were no confirmed incidents of corruption or legal proceedings involving the group or its employees during the year[153] - The company has encouraged employees and directors to participate in community volunteer services, contributing a total of 103 hours of volunteer service during the year[154]

Revenue and Income - Revenue for the six months ended September 30, 2019, was HKD 12,957,000, a decrease of 7.8% compared to HKD 14,059,000 for the same period in 2018[8] - Other income increased to HKD 2,747,000, up 2.6% from HKD 2,676,000 in the previous year[8] - The company reported a total comprehensive income of HKD 66,680,000 for the six months ended September 30, 2019, compared to a loss of HKD 46,940,000 in the same period of the previous year[14] - The company recognized a bank interest income of HKD 2,682,000 for the six months ended September 30, 2019, compared to HKD 2,619,000 for the same period in 2018, showing a slight increase[49] - Dividend income increased by approximately HKD 201,000 (or 4.5%) to about HKD 4,703,000[110] Loss and Earnings Per Share - The company reported a loss before tax of HKD 27,914,000, compared to a profit of HKD 70,242,000 in the same period last year[8] - The loss attributable to owners of the company was HKD 28,659,000, a significant decline from a profit of HKD 69,274,000 in the prior year[8] - Basic and diluted loss per share was HKD 71.6, compared to earnings of HKD 173.2 per share in the previous year[8] - The company incurred a loss of HKD 28,659,000 during the period, with other comprehensive losses amounting to HKD 18,281,000[16] - The group recorded a loss of approximately HKD 28,659,000, compared to a profit of HKD 69,274,000 in the same period last year, primarily due to the absence of investment property sales gains of HKD 82,320,000 recorded in the previous year[105] Assets and Liabilities - Total assets as of September 30, 2019, were HKD 1,093,909,000, an increase from HKD 745,843,000 as of March 31, 2019[12] - The net asset value decreased to HKD 1,268,740,000 from HKD 1,320,480,000 as of March 31, 2019[12] - The company reported total liabilities of HKD 35,889,000 as of September 30, 2019, compared to HKD 26,303,000 as of March 31, 2019, indicating an increase in liabilities[43] - The company's total assets as of September 30, 2019, amounted to HKD 1,304,629,000, compared to HKD 1,346,783,000 as of March 31, 2019, reflecting a decrease of about 3.1%[43] Cash Flow - The net cash outflow from operating activities was HKD 87,458,000 for the six months ended September 30, 2019, compared to HKD 859,000 in the previous year[18] - Cash and bank deposits significantly decreased to HKD 36,420,000 from HKD 518,167,000 as of March 31, 2019[12] - Cash and cash equivalents decreased by HKD 481,747,000, resulting in a closing balance of HKD 36,420,000 as of September 30, 2019[18] - The group's cash balance decreased to approximately HKD 36,420,000 as of September 30, 2019, down from HKD 518,167,000 as of March 31, 2019[123] Investment Properties - The company recorded a fair value loss on investment properties of HKD 29,745,000, compared to a loss of HKD 17,490,000 in the previous year[8] - The company reported a rental income from investment properties of HKD 7,966,000 for the six months ended September 30, 2019, compared to HKD 8,792,000 for the same period in 2018, representing a decrease of approximately 9.4%[48] - The fair value loss on investment properties for the six months ended September 30, 2019, was approximately HKD 29,745,000, compared to a loss of HKD 17,490,000 for the same period in 2018, indicating an increase in losses[56] - The fair value of the group's investment properties as of September 30 was HKD 986,900,000, an increase from HKD 610,800,000 as of March 31[107] - The total value of the group's investment properties was HKD 317,400,000 as of September 30, 2019, compared to HKD 332,400,000 as of March 31, 2019[124] Capital and Dividends - The company declared dividends amounting to HKD 4,800,000 during the period[16] - The group announced an interim dividend of HKD 0.02 per share, totaling HKD 800,000 for the six months ended September 30, 2019, with no special interim dividend declared[73] - The company declared an interim dividend of HKD 0.02 per share, totaling HKD 800,000, compared to HKD 2,800,000 in the previous year[91] Employee Compensation - Employee compensation for the six months ended September 30, 2019, amounted to approximately HKD 743,000, an increase from HKD 671,000 in the previous year[102] - The company had four employees as of September 30, 2019, consistent with the previous year[102] - The company’s employee compensation policy is regularly reviewed based on individual performance[102] Financial Reporting Standards - The company adopted Hong Kong Financial Reporting Standard 16 "Leases" on April 1, 2019, which replaced HKAS 17 and introduced a single accounting model for lessees[25] - Under HKFRS 16, all leases except for short-term and low-value asset leases must be capitalized, impacting the recognition of lease liabilities and right-of-use assets[28] - Lease liabilities are measured at the present value of unpaid lease payments, with adjustments made for interest and lease payments over time[29][32] - The cost of right-of-use assets includes the initial measurement of lease liabilities and any lease payments made before the commencement date[34] - The company expects no significant impact on its financial performance and position from the newly issued or revised standards that have not yet come into effect[24] Market Conditions and Future Outlook - The group anticipates downward pressure on property rental income and prices in the short term due to a challenging market atmosphere[125] - The group will continue to monitor market changes and adjust its asset portfolio strategies accordingly to safeguard shareholder returns[127] - The group has provided one-time rent adjustments to several tenants due to adverse impacts on the business environment and consumer sentiment[125]

Winfair Investment Company Limited WINFAIR INVESTMENT COMPANY LIMITED (Incorporated in Hong Kong with limited liability) (Stock Code: 0287) ANNUAL REPORT 2018/2019 年 報 永發置業有限公司 永發置業有限公 司 (於香港註冊成立之有限公司 ) (股份代號 : 0287) 2018/19 2018/19 年報 Annual Report 8 目錄 頁次 公司資料 2 主席報告書 3 企業管治報告 12 環境、社會及管治報告 25 董事會報告書 32 董事及管理人員 37 獨立核數師報告書 39 綜合損益表 43 綜合損益及其他全面損益表 44 綜合財務狀況表 45 綜合權益變動表 46 綜合現金流量表 47 財務報表附註 48 集團物業資料 96 五年財務摘要 98 股東週年大會通告 99 1 永發置業有限公司 二零一八╱一九年度年報 公司資料 執行董事 伍大偉先生 伍大賢先生 非執行董事 蘇國樑先生 蘇國偉先生 伍國芬女士 獨立非執行董事 吳志揚博士 ...