太兴置业(00277) - 2024 - 年度业绩

Performance Summary and Management Discussion Financial Highlights The Group's turnover increased to HKD 56.03 million, with annual loss significantly narrowed to HKD 9.80 million due to reduced fair value losses on investment properties Key Performance Indicators | Indicator | 2024 | 2023 | | :--- | :--- | :--- | | Turnover (HKD '000) | 56,032 | 51,876 | | Loss for the year attributable to owners of the Company (HKD '000) | (9,797) | (75,204) | | Basic and diluted loss per share (HKD) | (0.04) | (0.27) | | Total equity (HKD '000) | 2,575,107 | 2,644,295 | - Annual loss significantly narrowed, primarily due to a reduction in fair value loss on investment properties from HKD 79.60 million last year to HKD 54.40 million this year, and a net reversal of impairment loss on debt instruments of HKD 15.50 million (compared to an impairment loss of HKD 10.00 million last year)[49][80] Management Discussion and Analysis Management maintains cautious optimism on Hong Kong's stable economic fundamentals, emphasizing prudent financial management, cost control, and sustainable development, supported by increased bank interest income and strong liquidity Business Outlook Global economic recovery faces geopolitical and trade uncertainties, while Hong Kong's recovery is weaker than expected due to high interest rates and cross-border consumption, yet the Group remains cautiously optimistic - Global economic recovery faces challenges from geopolitical tensions, international trade frictions, and interest rate hike cycles[75] - Hong Kong's economic recovery momentum is weaker than expected due to high interest rates and residents' tendency to spend in mainland China, but the Group remains cautiously optimistic due to its stable macroeconomic fundamentals[95] - The Group will continue to adhere to prudent financial management principles and operate with an optimistic outlook[76] Financial Review Property investment income slightly rose to HKD 56.00 million, bank interest income significantly increased to HKD 11.80 million, and annual loss narrowed to HKD 9.80 million, with total dividends maintained at HKD 1.7 cents per share Composition of Financial Income | Income Item | 2024 (HKD million) | 2023 (HKD million) | | :--- | :--- | :--- | | Property Investment Income | 56.0 | 51.9 | | Interest Income from Debt Securities | 7.9 | 15.9 | | Bank Interest Income | 11.8 | 3.7 | - Loss attributable to owners for the year was HKD 9.8 million, a significant reduction from HKD 75.2 million last year[129] - The reduction in loss was primarily due to decreased fair value losses on investment properties and a net reversal of impairment losses on debt instruments measured at fair value through other comprehensive income[80] - A final dividend of HKD 1.4 cents per share is proposed, bringing the total annual dividend to HKD 1.7 cents per share, consistent with last year[101] Liquidity and Financial Position As of March 31, 2024, the Group's net current assets increased to HKD 83.90 million, with total bank borrowings at HKD 44.60 million, while shareholders' equity decreased to HKD 2.575 billion - As of March 31, 2024, the Group's net current assets were HKD 292.6 million, an increase from the previous year, primarily due to a decrease in securities investments[112] - The Group's total bank borrowings were HKD 44.60 million, with the majority (approximately 87.2%) maturing after two years[82][102] - Finance costs increased by 36.4% year-on-year to HKD 1.50 million, primarily due to rising bank loan interest rates[83] - Shareholders' equity decreased to HKD 2.575 billion, primarily due to a significant reduction in the fair value of investment properties, with net asset value per share at HKD 9.3[113] Consolidated Financial Statements and Notes Consolidated Statement of Profit or Loss and Other Comprehensive Income The Group's turnover reached HKD 56.03 million, with operating loss significantly narrowed to HKD 7.94 million and loss attributable to owners improving to HKD 9.80 million Consolidated Statement of Profit or Loss | Item (HKD '000) | 2024 | 2023 | | :--- | :--- | :--- | | Turnover | 56,032 | 51,876 | | Gross profit | 51,109 | 49,618 | | Operating loss | (7,940) | (60,951) | | Loss before tax | (5,629) | (70,922) | | Loss for the year attributable to owners of the Company | (9,797) | (75,204) | - Total other comprehensive expenses amounted to HKD 55.23 million, primarily from revaluation losses on debt instruments[37][51] Consolidated Statement of Financial Position As of March 31, 2024, total assets were HKD 2.663 billion, with net assets at HKD 2.575 billion, primarily comprising investment properties and significant bank balances Summary of Consolidated Statement of Financial Position | Item (HKD '000) | March 31, 2024 | March 31, 2023 | | :--- | :--- | :--- | | Assets | | | | Non-current assets | 2,335,833 | 2,501,791 | | Current assets | 347,365 | 251,814 | | Liabilities | | | | Non-current liabilities | 88,034 | 88,776 | | Current liabilities | 20,057 | 20,534 | | Equity | | | | Net assets / Total equity | 2,575,107 | 2,644,295 | - Non-current assets primarily include investment properties valued at approximately HKD 2.029 billion and interests in associates of approximately HKD 259 million[54] - Among current assets, bank balances and cash amounted to HKD 288 million, a significant increase from HKD 171 million last year[1] Key Accounting Policies and Notes to Financial Statements Financial statements are prepared under HKFRS on a going concern basis, with no significant impact from new standards, segmenting business into property and financial investments primarily in Hong Kong, maintaining a stable dividend policy Basis of Preparation Consolidated financial statements are prepared on a going concern basis under HKFRS, with no significant impact from newly applied standards, and the auditor's report is unqualified - The consolidated financial statements are prepared on a going concern basis and in accordance with Hong Kong Financial Reporting Standards[6][57] - The auditor has issued an unqualified opinion on the Group's consolidated financial statements[5] - The Group first applied several new and revised Hong Kong Financial Reporting Standards this year, but the Directors do not expect these applications to have a significant impact on the consolidated financial statements in the foreseeable future[23][45][58] Operating Segments The Group operates in property investment and financial investment segments, with property investment recording a HKD 21.65 million loss and financial investment a HKD 13.71 million profit, primarily in Hong Kong - The Group's operating activities are divided into two major segments: property investment and financial investment, which is also how information is reported to the chief operating decision maker for resource allocation and performance assessment[12] Summary of Segment Results (HKD '000) | Item | Property Investment | Financial Investment | Total | | :--- | :--- | :--- | :--- | | 2024 | | | | | Operating (Loss) Profit | (21,653) | 13,713 | (7,940) | | Net Assets | 2,461,275 | 113,832 | 2,575,107 | | 2023 | | | | | Operating Loss | (52,759) | (8,192) | (60,951) | | Net Assets | 2,428,228 | 216,067 | 2,644,295 | - As over 90% of the Group's operating activities and assets are located in Hong Kong, no geographical analysis is presented[27] Analysis of Revenue, Costs, and Expenses Turnover, primarily from property rental, was HKD 56.03 million, with net other income at HKD 3.56 million, and operating loss reflecting employee costs of HKD 27.71 million and finance costs of HKD 1.47 million - Turnover refers to the total property rental income received and receivable, amounting to HKD 56.03 million for the current year (2023: HKD 51.88 million)[13][24] Key Costs and Expenses (HKD '000) | Item | 2024 | 2023 | | :--- | :--- | :--- | | Total employee costs | 27,711 | 25,323 | | Finance costs | 1,467 | 1,148 | | Tax expense | 4,168 | 4,282 | - Net other income, gains and losses amounted to HKD 3.56 million, including management fee income of HKD 3.95 million and exchange losses of HKD 2.42 million[31] Dividends and Loss Per Share Loss per share significantly improved to HKD 4.0 cents, and the Board proposed a final dividend of HKD 1.4 cents, maintaining the total annual dividend at HKD 1.7 cents per share - Loss per share is calculated based on the annual loss of approximately HKD 9,797,000 and 277,232,883 ordinary shares in issue, resulting in a loss per share of HKD 0.04[89] Dividend Distribution (Per Share) | Dividend Type | 2024 (HKD cents) | 2023 (HKD cents) | | :--- | :--- | :--- | | Interim Dividend (Paid) | 0.3 | 0.5 | | Final Dividend (Proposed) | 1.4 | 1.2 | | Total | 1.7 | 1.7 | - The proposed final dividend is subject to approval at the Annual General Meeting on August 21, 2024, and is planned for payment on September 13, 2024[74] Key Asset and Liability Items At period-end, net trade and other receivables were HKD 9.75 million, with most rental receivables not overdue, while other payables and prepayments totaled HKD 5.47 million Trade and Other Receivables (HKD '000) | Item | 2024 | 2023 | | :--- | :--- | :--- | | Trade receivables (Rental receivables) | 2,150 | 1,109 | | Other receivables | 7,602 | 8,787 | | Total | 9,752 | 9,896 | - During the year, a provision for expected credit losses on trade receivables, net of reversal, was approximately HKD 60,000[91] Other Payables and Prepayments (HKD '000) | Item | 2024 | 2023 | | :--- | :--- | :--- | | Contract liabilities (Rental prepayments) | 2,324 | 2,993 | | Accrued expenses | 641 | 1,448 | | Other payables | 2,508 | 2,215 | | Total | 5,473 | 6,656 | Corporate Governance and Other Information Corporate Governance Practices The Company complied with the Corporate Governance Code, with the Chairman and CEO roles combined, a structure deemed to ensure leadership consistency and operational efficiency, balanced by independent non-executive directors - The Company complied with all applicable provisions of the Corporate Governance Code during the year, with the only deviation being the non-segregation of the roles of Chairman and Chief Executive Officer[117] - Mr. Chan Hoi Sau, the Chairman and Managing Director, has held this position since the Company's inception, and the Board believes the current structure ensures consistency in leadership and optimal operational efficiency, with the presence of three independent non-executive directors safeguarding checks and balances[117] Audit and Risk Management The Audit Committee reviewed the audited annual accounts, and the Group maintains adequate risk management procedures, with the auditor confirming consistency between preliminary and audited financial statements - The Audit Committee, together with the Directors, reviewed the audited annual accounts and full-year results for the year ended March 31, 2024[107][130] - The Group has established and maintains adequate risk management procedures, with active management participation to safeguard the interests of the Group and its shareholders[104][114] - The Group's auditor, HLB Hodgson Impey Cheng Limited, confirmed that the financial figures in the preliminary results announcement are consistent with the amounts contained in the annual audited consolidated financial statements[125] Share and Shareholder Information The Company did not trade its listed securities, maintained a public float of at least 25%, will suspend share registration for shareholder entitlements, and has 16 employees with annual remuneration reviews - During the year, neither the Company nor any of its subsidiaries purchased, sold, or redeemed any of the Company's listed securities[87][116] - The Company has maintained a sufficient public float of not less than 25% of its issued shares[108][118] - To determine shareholders' entitlements to attend the Annual General Meeting and receive the final dividend, the Company will suspend share registration during specified periods in August and September 2024, respectively[94][128] - As of March 31, 2024, the Group had 16 employees, with total employee costs amounting to HKD 27.70 million[115]