Financial Performance - For the financial year ended 30 June 2020, the Group recorded total revenue of HK$92,054,000, a decrease of approximately 13% compared to HK$106,206,000 in 2019[10]. - Gross profit for the same period was HK$65,587,000, down 19% from HK$80,799,000 in 2019, with a gross profit margin of 71% (2019: 76%) due to reduced rental income from investment properties in mainland China[14]. - The loss attributable to shareholders for the year was HK$28,413,000, contrasting with a profit of HK$48,730,000 in 2019, resulting in a basic loss per share of HK$0.12[16]. - The total comprehensive expense attributable to shareholders was HK$105,884,000, compared to HK$40,919,000 in 2019, reflecting the impact of currency translation losses[17]. - The profit for the year ended June 30, 2020, was HKD 48,730,000, with total comprehensive income showing a loss of HKD 105,884,000[196]. - The basic loss per share was HK$12.0 compared to earnings of HK$21.5 per share in 2019[193]. Rental Income and Property Valuation - The Group's total rental income from investment properties in Beijing and Shanghai was RMB83,011,000, representing a 10% decrease compared to RMB92,474,000 in 2019[20]. - The average occupancy rate for the community mall in Chaoyang District, Beijing, was approximately 89%, down from 91% in 2019, with rental income totaling RMB28,912,000, a decline of about 10% from RMB32,019,000 in 2019[23]. - The rental income from the Group's premium office building in Shanghai was RMB54,099,000, reflecting an 11% decrease from RMB60,454,000 in 2019, with an average occupancy rate dropping to about 79% from 90%[22]. - The fair value of the Group's investment properties decreased by RMB72,440,000, translating to HK$80,332,000, compared to an appreciation of RMB3,100,000 in 2019[20]. - The segment results for property rental recorded a loss of RMB13,949,000, down from a profit of RMB73,596,000 in 2019[20]. - The fair value of investment properties decreased in fair value by HK$168,560,000, contrasting with an increase of HK$3,560,000 in the previous year[193]. Currency and Exchange Impact - The Group experienced a 3.8% devaluation of the renminbi against the Hong Kong dollar during the year, compared to a 4.3% devaluation in 2019, affecting financial results[12]. - The net exchange loss due to currency fluctuations was HK$3,951,000, down from HK$5,841,000 in 2019, indicating some improvement in currency risk management[15]. - The comprehensive expense due to exchange differences amounted to HK$78,898,000, a decrease from HK$91,249,000 in the previous year[29]. - The exchange differences arising on translation resulted in a loss of HKD 89,649,000 for the year[196]. - The Group experienced an exchange loss of HKD 77,471,000 during the year[196]. Administrative and Operational Efficiency - Administrative expenses decreased to HK$37,053,000 from HK$43,730,000 in the previous year, indicating cost management efforts[15]. - The Group's net current assets increased to HK$169,050,000 as of June 30, 2020, from HK$77,356,000 in the previous year, resulting in a current ratio of 2.21 compared to 1.32[31]. - The Group maintained un-utilised credit facilities of HK$11,000,000 as of June 30, 2020, compared to HK$16,000,000 in the previous year[31]. - The Group has not made any significant capital expenditure commitments during the year[31]. Corporate Governance and Management - The Company has established an internal corporate governance code to facilitate compliance with the Corporate Governance Code[61]. - The Board believes that its efforts in enhancing corporate governance practices have contributed to sustained business growth in past years[59]. - The Company has adopted a code for securities transactions by Directors in line with the Listing Rules, confirming compliance by all Directors for the year ended 30 June 2020[62]. - The Board consists of five Independent Non-executive Directors, representing more than one-third of the Board, with several possessing relevant professional qualifications in accounting or financial management[67]. - The Company has established three committees: Remuneration Committee, Nomination Committee, and Audit Committee to oversee specific aspects of the Group's affairs[81]. Future Outlook and Market Conditions - The overall economic downturn due to COVID-19 led to increased vacancy rates and lower effective rental income, impacting the profitability of the Group[20]. - The economic outlook remains challenging due to uncertainties from the COVID-19 pandemic and trade tensions, but recovery is anticipated driven by strong domestic demand and digital innovation[34]. - Despite challenges, it is anticipated that China's economy will rebound, driven by robust domestic demand and digital innovation, leading to gradual improvements in leasing activities in the office and retail sectors in Beijing and Shanghai[37]. - In Beijing, retail operations are gradually resuming, with expectations of improved retail leasing and turnover volumes as consumer confidence returns post-pandemic[39]. - The Group will continue to adopt competitive rental strategies to attract new tenants and retain existing ones, including property refurbishment and value-added services[39]. Shareholder and Dividend Information - The Group did not recommend a final dividend for the year ended June 30, 2020, compared to a dividend of 4 Hong Kong cents per share in 2019[19]. - The Group's retained earnings available for distribution to shareholders amounted to HK$125,913,000 as of 30 June 2020[138]. - A final dividend of 4 Hong Kong cents per share was paid to shareholders for the year ended June 30, 2019[135]. - An interim dividend of 2 Hong Kong cents per share totaling HK$4,754,000 was distributed during the year[135]. Risks and Challenges - The Group faces significant risks due to economic uncertainties, particularly from the ongoing COVID-19 pandemic and trade frictions between the US and China, impacting the property rental segment in Beijing and Shanghai[36]. - The Group is actively monitoring the progress of land swaps and related approvals, although there is no assurance against significant delays or impediments[41]. - The assets of Zhen Wah are expected to be sold through public auction or other means, with complexities involved in the compulsory liquidation process that may lead to delays and disputes[42].
达力集团(00029) - 2020 - 年度财报