HKR INT'L(HK:00480)2021-07-20 09:08Property Development and Acquisitions - The Group successfully bid for a second premium land lot in Hangzhou[30] - The latest residential project in Jiaxing City was named Starlight One[30] - The Group acquired a 16-storey industrial building named United Daily News Centre in To Kwa Wan[31] - The Group entered into an agreement to acquire 18 property units on Hollywood Road / Upper Lascar Row in Sheung Wan[31] - The handover of units of Poggibonsi in Discovery Bay started[29] - Creekside One in Jiaxing obtained an occupation permit[31] - Mansion One in Jiaxing obtained an occupation permit[31] - The Group accepted the Government's offer for Master Plan 7.0E for Discovery Bay, which will expand the Group's portfolio in the long term[43] - The acquisition and conversion of older buildings are increasingly attractive due to the shortage of new land supply, aiming to diversify the Group's portfolio[44] - In Mainland China, the Group acquired a second land plot in Hangzhou for development into a low-density residential community, aligning with its strategy to expand in the Yangtze River Delta area[47] - The Group's residential land portfolio in Hong Kong will increase by over 1.3 million square feet, providing over 1,400 units, following the acceptance of terms for Master Plan 7.0E for Discovery Bay[75] - The new DB Plaza extension added approximately 59,000 square feet to the Group's investment property portfolio, featuring a mix of retail and F&B options[82] - Two key residential projects in Jiaxing are scheduled to launch in mid-2021, with occupation permits granted in the Current Year[86][87] - The Group acquired a second land plot in Hangzhou during the Current Year, indicating ongoing market expansion efforts[86][87] Financial Performance - The Group's revenue for the financial year ended 31 March 2021 was HK$3,942.3 million, a decrease of 16.1% from the previous year[38] - Profit attributable to the Company's shareholders was HK$897.3 million, a decrease of 44.8% compared to HK$1,624.6 million in 2019/2020[38] - Underlying profit, excluding net unrealised gains on fair value of the investment property portfolio, was HK$868.6 million, representing a 23.9% decrease from the last financial year[38] - Revenue from property development and investment for the Current Year was HK$4,237 million, down from HK$5,108 million in 2019/2020, reflecting a decrease of approximately 17%[72][73] - The Group's contribution from property development and investment was HK$1,275 million, a slight decrease from HK$1,306 million in the previous year[73] - The Group's final results for the year ended March 31, 2021, were announced, with a total dividend of HK9 cents per share, down from HK12 cents in 2020[153] - A final dividend of HK5 cents per share was recommended for the year ended March 31, 2021, compared to HK7 cents in the previous year[153] - The interim dividend for the six months ended September 30, 2020, was HK4 cents per share, contributing to the total dividend for the year[153] Awards and Recognition - HKR International Limited received the "15 YEARS PLUS CARING COMPANY" logo from The Hong Kong Council of Social Service[32] - The company won the Grand Prize Award 2018-2020 in the ERB Manpower Developer Award Scheme[32] - HKR Limited achieved the Outstanding Developer Awards 2019, including the Urban Design & Master Planning Award and the Green Development Award[32] - The company was recognized with the Best ESG Report (Small Cap) commendation at the Hong Kong ESG Reporting Awards 2020[32] - HKR International Limited received the Sustainable Business Award 2020 from the World Green Organisation[32] - The company was awarded the HSBC Living Business SDGs Awards - Goal 12: Responsible Consumption and Production - Silver Award in 2019[32] - HKR International Limited won the Bronze Award in Property Management (Residential) at the Hong Kong Awards for Environmental Excellence 2019[32] - The company achieved the Gold Award for the Creative Benchmark Shopping Centre at the 2020 China Shopping Mall Value Board[33] - HKR International Limited was recognized with the Most Popular Project Award 2020 for La Scala by Jiaxing Daily[33] - The Group received the Privacy-Friendly Awards 2021 - Silver Certificate from the Office of the Privacy Commissioner for Personal Data[32] Market Conditions and Strategy - The global economy contracted by 3.5% in 2020, with Mainland China recording a GDP growth of 2.3%[40] - Despite market downturns, Hong Kong's residential property market remained relatively stable, with property prices experiencing a lower drop than expected[40] - The Group's strategy includes enhancing the value of its investment properties, with the West Gate Tower being converted into a commercial building[46] - The Group is optimistic about Thailand's medium- and long-term economic prospects, planning to improve project designs and planning during the current stagnation[51] - The Group expects continued volatility in the near-to-mid-term due to the lingering effects of the pandemic and geopolitical tensions[56] - Residential prices in major Chinese cities are forecasted to grow steadily, benefiting from a quality-driven trend in housing demand[59] - The Group's strategy includes diversifying its property portfolio in Hong Kong by seeking opportunities for new projects and urban redevelopment[69] - The Group aims to maintain a diversified and high-quality tenant mix to preserve competitiveness in its investment properties[165] Corporate Governance and Leadership - The Group appointed two female directors, increasing female representation on the board to one-third, exceeding the market average in Hong Kong[55] - The Group's board includes experienced members with over 40 years in real estate development and project management, enhancing strategic decision-making[126][130] - The Executive Chairman has been with the company since 1989, bringing extensive experience in real estate and textile manufacturing[126] - The Managing Director has over 40 years of experience in property development, contributing to the Group's operational expertise[130] - The Group's leadership structure includes a Non-executive Deputy Chairman who has been on the board since 1989, ensuring continuity and governance[128] - The Executive Director, appointed in February 2021, has over 30 years of experience in project management, particularly in property development in Thailand[132] - The company has a strong governance structure with various committees, including Audit, Remuneration, and Nomination, ensuring oversight and strategic direction[141][143] - The presence of independent non-executive directors on the board suggests a commitment to transparency and accountability in decision-making[141][143] Sustainability and Corporate Social Responsibility - The Group implemented long-term sustainability targets aligned with the United Nations' Sustainable Development Goals, aiming for achievement by 2030[112] - The hospitality segment launched "The Sustainability Programme" to reduce plastic consumption and enhance sustainability efforts[117] - The Group received multiple awards for its corporate social responsibility efforts, including the "Sustainable Business Award 2020" from the World Green Organization[115] - The Group emphasizes customer satisfaction and has implemented rigorous control measures to ensure the quality and safety of properties during bidding and construction phases[121] - The Group prioritizes sustainability in its supply chain by selecting suppliers based on ethical and environmental performance criteria[122] - A new Supplier Code of Conduct has been established to communicate expectations regarding business ethics, labor rights, and environmental standards to suppliers[122] - The Group encourages suppliers to use green, non-hazardous, and recyclable materials while promoting paperless operations[123] Employee and Community Engagement - The Group employed a total of 1,624 people as of March 31, 2021, emphasizing employee well-being and safety during the COVID-19 pandemic[120] - The Group's donations and sponsorships to various charities and organizations totaled HK$3.4 million during the current year, supporting underprivileged communities[120] - The Group emphasizes the importance of employee well-being through regular disinfection and provision of anti-pandemic supplies[164] Risk Management and Compliance - The Group actively monitors changes in local laws and regulations to mitigate compliance risks, ensuring effective adherence to relevant requirements[172] - The Audit Committee has reviewed the effectiveness of the Group's risk management and internal control systems during the financial year[173] - The Group has arranged adequate insurance coverage for business interruptions or disasters that may result in income loss[166] - Cyber-attacks have increased in frequency and severity, prompting the Group to engage external consultants for cyber security assessments and implement regular training and recovery drills[171] - The Group will implement further cost control measures and enhance its retail portfolio's competitiveness to mitigate pandemic-related risks[164] - The long-term impact of the COVID-19 pandemic on the Group's business remains uncertain, with ongoing monitoring of the situation[164]