Financial Performance - The group's audited consolidated profit attributable to shareholders for the year ended March 31, 2024, was HKD 41,133,258, a decrease from HKD 48,869,383 for the year ended March 31, 2023[27]. - Basic and diluted earnings per share for the year ended March 31, 2024, were both HKD 0.045, compared to HKD 0.052 for the previous year[27]. - The group's pre-tax profit decreased by 36% to approximately HKD 42,000,000 due to a significant increase in financial expenses of HKD 73,000,000 resulting from rising market interest rates[39]. - The proposed final dividend for the year ended March 31, 2024, is HKD 0.012 per share, down from HKD 0.018 per share for the previous year[50]. - As of March 31, 2024, the group's total bank deposits and cash amounted to approximately HKD 475,000,000, a decrease from HKD 852,000,000 in the previous year[43]. - The group has a total shareholder equity of approximately HKD 2,549,000,000 as of March 31, 2024[63]. - As of March 31, 2024, the reserves available for distribution to shareholders amounted to HKD 334,101,138, an increase from HKD 216,090,797 in 2023[97]. - Retained earnings increased to HKD 243,247,099 from HKD 125,236,758 in the previous year[97]. Investment Properties - The fair value of the group's investment properties recorded an increase of approximately HKD 223,000,000, down from HKD 299,000,000 in the previous year[41]. - The fair value of the group's investment properties reached HKD 5,059,548,397 as of March 31, 2024, with a fair value increase of HKD 223,301,069 recognized in the consolidated income statement for the year[194]. Borrowings and Financial Management - The group's capital debt ratio is 1.34, compared to 1.37 in 2023, with long-term borrowings of approximately HKD 3,408,000,000[63]. - The total borrowings of the group as of March 31, 2024, amount to approximately HKD 4,929,000,000, an increase of about HKD 82,000,000 from the previous year[82]. - The group has no significant investment plans currently, and any acquisitions will be financed through internal resources and bank borrowings[66]. - As of March 31, 2024, the group has approximately HKD 7,417,000,000 in properties and fixed deposits pledged as collateral for bank financing[85]. - The group maintains a reasonable level of cash resources and standby credit facilities to meet its obligations and working capital needs[83]. - All borrowings are floating rate loans, and the group will prudently monitor foreign exchange and interest rate risks[84]. - The group has a long-term repayment period for borrowings of 20 years, with HKD 1,521,000,000 due within one year[82]. Business Operations - The hotel operations segment's profit increased by 73% to approximately HKD 74,000,000, benefiting from the return of business and leisure travelers[42]. - The group is involved in manufacturing, assembling, and selling electronic watches and watch accessories, as well as property development and hotel operations[77]. - The group plans to focus on traditional watch products while exploring new technologies, including smart and hybrid watches[36]. - The group is set to launch a new series of hybrid smartwatches, featuring modern design and advanced smart technology[61]. - The latest version of the hybrid smartwatch application features enhanced connectivity for multiple watches and supports multiple languages to improve user experience[38]. - The group has completed the shell construction of the mixed-use project at 88 Queen Street East in Toronto, Canada[54]. Corporate Governance - The board held four meetings and one annual general meeting during the year, with full attendance from committee members[111]. - The board composition includes 90% male and 10% female directors, ensuring diverse perspectives[123]. - 80% of the board members have over three years of service, providing a balance of experience and fresh ideas[123]. - The company has established a diversity policy for board members to enhance governance and effectiveness[122]. - The audit and risk management committee reviewed the effectiveness of the group's risk management and internal control systems[112]. - The company maintains a strong focus on compliance with legal and regulatory requirements as part of its governance practices[122]. - The company is committed to continuous professional development for all directors to ensure they remain informed and capable of contributing effectively[145]. - The company has a gender diversity rate of approximately 50.24%, with 104 female employees[150]. - The audit committee has recommended the reappointment of the external auditor at the upcoming annual general meeting[129]. Risk Management and Compliance - The audit and risk management committee has confirmed the effectiveness and adequacy of the group's risk management and internal control systems[153]. - The board believes that the current risk management and internal control systems are sufficient and effective[127]. - The company identified and assessed risks of material misstatement in the consolidated financial statements due to fraud or error, implementing audit procedures to address these risks[199]. - The overall presentation, structure, and content of the consolidated financial statements were evaluated, including disclosures, to ensure they fairly reflect relevant transactions and events[200]. - The company must ensure that all shareholders have equal rights to access information for informed decision-making[158]. - The company is committed to maintaining compliance with disclosure regulations and applicable laws[158]. Audit and Financial Reporting - The independent auditor's report confirms that the consolidated financial statements reflect the group's financial position fairly as of March 31, 2024, in accordance with Hong Kong Financial Reporting Standards[192]. - The total fees for audit and non-audit services amounted to HKD 2,326,000, with audit services costing HKD 2,000,000 and non-audit services costing HKD 326,000[155]. - The company incurred approximately HKD 1,324,000 in audit fees for the year from external auditors[184]. - The company employs a simplified approach under Hong Kong Financial Reporting Standard 9 for accounts receivable, recognizing lifetime expected losses upon initial recognition[156]. - The company has appointed external independent professionals to perform internal audit functions due to the scale, nature, and complexity of its business[126]. - The board is responsible for assessing the group's ability to continue as a going concern and must disclose relevant matters if applicable[197]. - The valuation of investment properties is considered a key audit matter due to significant unobservable inputs and management estimates involved[194]. - The board reviews the effectiveness of shareholder communication policies annually, finding them sufficient and effective[186]. - The company has established multiple communication channels for shareholders, including an official website and direct contact options[186].
NATIONAL ELEC H(00213) - 2024 - 年度财报