Financial Performance - For the year ended March 31, 2024, the Group achieved revenue of HK$1,612.7 million, representing an increase of approximately 30.8% compared to the previous year (2023: HK$1,232.8 million) [20] - The consolidated loss attributable to owners of the Company was HK$216.0 million, compared to a loss of HK$38.4 million in 2023, primarily due to revaluation losses of investment properties and write-downs of properties under development totaling approximately HK$187.4 million [20] - The basic and diluted loss per share for the year ended March 31, 2024, were both HK19.9 cents, compared to HK3.5 cents for the previous year [21] - As of March 31, 2024, the Group's net asset value was HK$3,766.5 million, down from HK$4,072.7 million in 2023, with a net asset value per share of HK$3.51 [21] - Shareholders' funds decreased from HK$4,072.7 million in 2023 to HK$3,766.5 million in 2024 [17] - Interest expenses amounted to approximately HK$65.6 million due to rising interest rates, contributing to the overall loss [20] Dividends - The Board has resolved not to declare a second interim dividend for the year ended March 31, 2024, compared to HK5.0 cents per share in 2023 [26] - The first interim dividend declared was HK$0.01 per share, down from HK$0.025 per share in the previous year [29] Market Conditions - The Group's financial performance reflects challenges in the property market, impacting asset valuations and development projects [20] - The overall economic outlook remains cautious due to high interest rates and geopolitical tensions, impacting property market dynamics [46] - The global economy is projected to grow by 3.2% in 2024, maintaining the pace seen in 2023, despite ongoing challenges such as high interest rates and geopolitical tensions [27] - China's economy grew by 5.3% year-on-year in Q1 2024, driven by investment and net exports contributing 0.8 percentage points to GDP growth [28] - The property market is expected to stabilize by early 2025, coinciding with the completion of several ongoing projects [43] - The high interest rate environment has led to a 7.0% year-on-year decline in domestic property prices by December 2023, despite a slight recovery earlier in the year [158] - The property market faced a 5% contraction in transaction volume due to the high interest rate environment [158] Construction Division Performance - The increase in revenue was mainly driven by the Construction Division, indicating a positive trend in this segment [20] - The revenue for the Construction Division was HK$1,124.0 million for the year ended March 31, 2024, compared to HK$906.4 million last year, representing a growth of approximately 24.1% [66] - The total amount of contracts on hand for the Construction Division as of March 31, 2024, was HK$4,400.7 million [66] - The Group's construction-related business achieved project wins and contracts on hand totaling approximately HK$4.7 billion by the end of the financial year [40] - The construction industry in Hong Kong is projected to grow by 2.3% annually from 2025 to 2028, supported by government investments in transport, electricity, and housing [49] - The Group's Construction Division aims to improve operational efficiency through innovative construction technology and digitalization [96] Property Development - The Property Development Division recorded no revenue for the year ended March 31, 2024, consistent with the previous year [148] - The Group's property development projects made good progress during the year despite the challenging market conditions [158] - A total of 222 Sale and Purchase Agreements for Commodity Flats were signed for the joint venture project LUXÉAST, with all units delivered to customers [149] - The development of the residential project with Sun Hung Kai Properties at So Kwun Wat, Tuen Mun, is currently in progress [150] - The property at No. 57A Nga Tsin Wai Road, Kowloon Tong, is being developed into a premium residential project, with lease modification completed and premium fully settled [150] Interior and Renovation Division - The revenue for the Interior and Renovation Division was HK$293.3 million for the year ended March 31, 2024, up from HK$229.9 million the previous year, indicating an increase of about 27.7% [60] - The Group's Interior and Renovation Division experienced a decline in project enquiries and approvals due to the economic downturn, with many major renovation projects being put on hold [118] - The Group aims to enhance its reputation as a respected provider of interior and renovation services, focusing on continuous improvement and exceeding customer expectations [120] - The Group's Interior and Renovation Division is expected to have a positive outlook as new prospects emerge with the recovery of the construction industry [120] Property Investment - The Property Investment Division recorded a revenue of HK$80.2 million for the year ended March 31, 2024, compared to HK$64.1 million last year, representing a growth of approximately 25.1% [170] - The Group's investment properties contributed rental income during the financial year, including PeakCastle, The Mercer, and Hollywood Hill, among others [172] - The Group completed the disposal of certain shops and loading bays in the "West Park" residential development on December 29, 2023 [171] Strategic Focus - The Group's operational strategies may need to adapt to the current market conditions to mitigate losses and enhance profitability [20] - The Group is focusing on securing more public sector construction projects to enhance its market position [51] - The Group has adopted a cautious approach to property development and investment, focusing on existing projects amid market uncertainties [38] - The Group plans to increase investment in attracting and retaining talent, recognizing the importance of human resources for sustainable returns [51] - The Group is committed to developing effective marketing strategies and targeted campaigns to drive interest and facilitate property sales or rentals [189] Challenges and Opportunities - Labour shortages in the construction industry have led to higher costs for skilled workers, prompting the Group to invest in digitalization and recruitment initiatives [40] - The competitive landscape remains fierce, with price, service quality, project timelines, and track record being key factors for property owners when selecting service providers [119] - The uncertain economy and elevated financing costs are expected to continue affecting investment sentiment in the near term [159] - The introduction of talent admission schemes by the Government is expected to create additional demand for residential properties in Hong Kong [163]
兴胜创建(00896) - 2024 - 年度财报