Financial Performance - The Group's revenue from continuing operations for the year ended March 31, 2024, was approximately HK$227,114,000, representing a 161.8% increase from HK$86,762,000 in the previous year[6]. - The consolidated loss attributable to shareholders for the year was approximately HK$253,235,000, compared to a profit of HK$13,280,000 in the previous year[6]. - The gross profit margin decreased to 25.6% from 68.0% in the previous year, reflecting a significant decline in profitability[2]. - The consolidated loss from continuing operations for the year was approximately HK$414,214,000, compared to a profit of HK$25,341,000 in the previous year[6]. - The basic and diluted loss per share from continuing operations was HK$3.50 and HK$4.20 respectively, compared to earnings per share of HK$0.18 in the previous year[9]. - The Group's rental income from continuing operations for the year was approximately HK$43,101,000, a decrease of about 0.4% compared to HK$43,255,000 in the previous year[42]. - A loss on changes in fair value of investment properties was approximately HK$47,333,000, compared to a gain of approximately HK$191,361,000 in the previous year, resulting in a segment loss of approximately HK$60,725,000[42]. - The fair value loss from continuing operations was approximately HK$9,563,000, compared to a gain of approximately HK$78,967,000 in 2023[61]. - The loss from continuing operations for the year was HK$218,804,000, compared to a profit of HK$58,970,000 in the previous year[80]. Assets and Liabilities - The Group's total assets as of March 31, 2024, were approximately HK$8,739,039,000, a decrease of 4.9% from HK$9,188,964,000 in the previous year[2]. - As of March 31, 2024, the total bank borrowings amounted to approximately HK$3,671,861,000, up from approximately HK$3,529,177,000 in 2023, indicating a growth of 4.0%[61]. - The gearing ratio for the year was approximately 0.8, compared to 0.7 in 2023, reflecting an increase in leverage[61]. - The current ratio decreased to approximately 2.3 from 3.0 in 2023, indicating a decline in short-term liquidity[61]. - Cash and cash equivalents as of March 31, 2024, were approximately HK$307,435,000, a decrease of approximately 22.9% from HK$398,894,000 in 2023[61]. - The Group's secured bank borrowings included amounts repayable within one year of approximately HK$2,323,047,000, an increase from HK$1,615,464,000 in 2023[62]. - The annual interest rates for secured bank borrowings ranged from 4.375% to 6.785% as of March 31, 2024, compared to 4.21% to 5.86% in 2023[62]. - The net asset value of the Group was approximately HK$7,341,709,000 as of March 31, 2024, down from HK$7,851,249,000 in 2023[64]. Property and Development - The occupancy rates for the Group's investment properties remained high at 100% for residential, 99.2% for commercial, and 95.0% for industrial units as of March 31, 2024[15]. - The Group's prestigious residential project "Ayton" achieved contracted sales of approximately HK$862,981,000, with 49 units sold[12]. - Another residential project "Garden Crescent" launched in November 2023 has recorded contracted sales of approximately HK$208,303,000, with 17 units sold[13]. - The Group's attributable land bank in Hong Kong amounted to approximately 21,000 square feet, all under development for sales purposes[16]. - The Group anticipates that easing interest rates in Hong Kong will gradually restore market confidence in the property sector, supporting property sales and potentially stabilizing or slightly rebounding property prices[26][32]. - The Group will continue to focus on selling remaining units in "Ayton" and "Garden Crescent" and plans to launch Project Chatham Road North when available[26][32]. - The anticipated completion dates for new properties include May 2024 for industrial use and February 2024 for commercial use[59]. Market Conditions - The Hong Kong economy and property market faced challenges in 2023, including geopolitical tensions, high interest rates, and below-expectation GDP growth, prompting government measures to stimulate the property market in early 2024[22][23]. - The government measures included lifting property sale restrictions, suspending mortgage stress tests, and relaxing loan-to-value ratios, which led to satisfactory sales performance for new property developments[22][23]. - The local market in Hong Kong is showing signs of recovery due to the resurgence of tourism and government initiatives to boost consumer confidence[68]. - The Hong Kong retail market continued to recover, but changes in tourist spending patterns and competition pose challenges for the office and retail leasing business[124]. - The geopolitical tensions and high interest rates have pressured the Hong Kong property market, but recent government measures are expected to benefit local residents and encourage investment[122]. Corporate Governance - The Board consists of five Directors, including two executive Directors and three independent non-executive Directors[139]. - The Board meets at least four times a year and is responsible for corporate strategies, financial performance, and major operational decisions[141]. - The Company has a clear division of responsibilities, with the President and CEO roles held by the same individual, Ms. Koon Ho Yan Candy[141]. - The Audit Committee's principal functions include overseeing financial reporting and compliance[151]. - The Company has maintained a high standard of corporate governance practices, ensuring accountability, robust internal controls, and transparency for all stakeholders[156]. - The independent auditor, Deloitte Touche Tohmatsu, has been recommended for re-appointment for the upcoming fiscal year at the 2024 AGM[179]. - The Company has fully complied with the Corporate Governance Code throughout the year, with the exception of the separation of the roles of president and CEO[159]. - The Board comprises experienced individuals, with half being independent non-executive directors, ensuring a balance of power and authority[160]. Shareholding and Capital Structure - The Group held an aggregate of 1,097,157,506 shares of Eminence, representing approximately 51.60% of the total issued share capital of Eminence as of April 1, 2023[74]. - Eminence entered into a placing agreement on May 29, 2023, for a maximum of 50,000,000 new shares at a price of HK$0.50 per share, diluting the Group's shareholding from approximately 51.60% to 26.59%[76]. - The completion of the placing agreement occurred on August 3, 2023, following approval from shareholders[76]. - On January 23, 2024, Eminence entered into a second placing agreement for up to 235,000,000 new shares at HK$0.18 per share, constituting a very substantial disposal[77]. - The second placing agreement was completed on April 17, 2024, further diluting the Group's shareholding in Eminence from approximately 26.59% to 8.11%[77]. - Following the completion of the second placing, Eminence's financial results will no longer be consolidated in the Group's financial statements[77]. Employee and Operational Insights - As of March 31, 2024, the Group had 62 employees, with staff costs amounting to approximately HK$73,399,000[101]. - The Group continues to optimize its tenant portfolio to adapt to changing market trends and evolving business environments[100]. - The Company provides continuous professional development for all Directors to ensure their contributions remain informed and relevant[189].
永义国际(01218) - 2024 - 年度财报