Financial Performance - The company's revenue increased by 3% to HKD 1,103 million for the year ending March 31, 2024, compared to HKD 1,066 million in 2023[11] - The related profit rose significantly to HKD 34.4 million in 2024 from HKD 11.4 million in 2023[11] - The company reported a loss attributable to ordinary shareholders of HKD 66.7 million for 2024, compared to a profit of HKD 33 million in 2023, primarily due to revaluation losses and deferred tax of HKD 101 million[11] - The net asset value per share decreased to HKD 13.67 in 2024 from HKD 14.50 in 2023[12] - The company's revenue for the year ending March 31, 2024, was HKD 1,102,627,000, representing an increase from HKD 1,066,412,000 in the previous year, a growth of approximately 3.4%[33] - The net profit attributable to the company was HKD 31,138,000, up from HKD 23,324,000, indicating a year-on-year increase of about 33.5%[33] - The company recorded a gross profit of HKD 595,855,000, compared to HKD 570,647,000 in the previous year, reflecting a growth of approximately 4.4%[33] - The total comprehensive loss for the year amounted to HKD 590,697,000, compared to HKD 624,238,000 in the previous year, indicating a reduction in losses[37] - The attributable loss to the company's owners was HKD 427,175,000, slightly down from HKD 427,228,000 year-on-year[38] - The company reported a pre-tax profit of HKD 386,003,000 for the year 2024, compared to HKD 266,478,000 in 2023, indicating a significant increase[73] Asset and Liability Management - The net current assets as of March 31, 2024, were HKD 81,395,000, a significant decrease from HKD 722,666,000 in the previous year[40] - Total non-current assets decreased to HKD 17,648,296,000 from HKD 17,780,670,000, reflecting a decline of approximately 0.74%[40] - Cash and bank balances were reported at HKD 1,319,972,000, down from HKD 1,850,107,000, representing a decrease of about 28.7%[40] - The total value of current assets was HKD 2,925,830,000, down from HKD 3,631,336,000, indicating a decline of approximately 19.4%[40] - The company has a bank loan due within one year amounting to HKD 2,546,000,000, which is a critical factor in assessing liquidity[43] - The total equity attributable to the company's owners decreased to HKD 11,341,545,000 from HKD 11,929,229,000, reflecting a decline of about 4.9%[41] - Total liabilities for trade payables increased to HKD 8,915,000 in 2024 from HKD 7,505,000 in 2023, reflecting a rise in short-term obligations[83] - As of March 31, 2024, the total interest-bearing debt was approximately HKD 7,643,000,000, an increase from HKD 7,262,000,000 in 2023, with 34% classified as current liabilities[126] - The net interest-bearing debt amounted to approximately HKD 6,323,000,000, with a debt-to-equity ratio of 56% as of March 31, 2024, compared to 45% in 2023[127] Project Development and Sales - The company has sold 77 out of 80 units in its Nanhai project, indicating strong sales performance despite market conditions[15] - The company has introduced a new mixed-use project on Beijing Road, featuring 144 residential units and 6,000 square meters of office space[15] - The property development segment generated revenue of HKD 592,595,000, while the property investment segment contributed HKD 452,282,000, and parking management and others accounted for HKD 57,750,000[57] - The property development segment recorded total revenue of HKD 593,000,000, up from HKD 580,000,000 in 2023, with a segment profit of HKD 235,000,000 compared to HKD 180,000,000 in the previous year[90] - The project in Guangzhou, with a total floor area of approximately 77,700 square meters, is expected to be completed in Q3 2024, with pre-sales generating HKD 145,000,000 as of March 31, 2024[94] Market and Economic Outlook - The company anticipates a growth rate of at least 5% for the Chinese economy, with continued increases in exports and trade surplus[23] - The company acknowledges a decrease in short-term returns but remains optimistic about mid to long-term prospects, identifying opportunities arising from the current crisis[28] - Hong Kong's airport is expected to see passenger traffic return to pre-pandemic levels by the end of 2024, despite pressures from high U.S. interest rates and China's economic downturn[150] - The Hong Kong government has implemented measures to encourage high-skilled talent to move to Hong Kong, enhancing the region's competitiveness[150] Operational Adjustments and Strategies - The company is actively adjusting its organizational structure and repositioning projects to attract new tenants in response to market challenges[13] - The company has successfully launched the HONKWORK shared workspace concept, attracting new tenants and regaining market share[13] - The company plans to enhance property pre-sales and sales to accelerate cash flow recovery amid a slowing property market[43] - The company is focusing on sustainable growth and exploring opportunities in zero-carbon emissions and advanced transportation technologies[26] - The company plans to reopen its flagship hotel in Hong Kong by the end of 2024 and launch a joint venture project in South Bay by the end of 2025[3] Investment and Acquisitions - The company has acquired five hotel properties in Tokyo and Osaka, with four of them already fully booked, benefiting from a surge in tourism following the lifting of COVID-19 restrictions[21] - The company is actively pursuing more hotel-related transactions in Japan, viewing this as a potential area for future growth[21] - The company acquired five hotel properties in Japan during the fiscal year, capitalizing on the booming tourism industry[89] - The company aims to diversify its property investment portfolio, having purchased a commercial property in Shanghai in 2022 for rental income[89] Corporate Governance and Compliance - The company has complied with the corporate governance code, with the exception of certain deviations regarding director rotation and the scope of the remuneration committee[141] - The company has adopted a revised terms of reference for the remuneration committee, which includes deviations from corporate governance code provisions[143] - The audit committee has regularly held meetings since its establishment, with at least two meetings per year to review and monitor the group's financial reporting procedures and internal controls[144] - The preliminary announcement of the consolidated financial statements for the year ending March 31, 2024, has been agreed upon by the company's auditor, Ernst & Young[145] Employee and Operational Metrics - The group employed approximately 370 employees as of March 31, 2024, consistent with the previous year[130] - The company manages 26 parking lots as of March 31, 2024, with a total of approximately 1,810 parking spaces[117]
建业实业(00216) - 2024 - 年度业绩