Financial Performance - For the financial year ended 30 June 2021, the Group reported total revenue of HK$86,719,000, a decrease of approximately 6% compared to HK$92,054,000 in 2020[12]. - Gross profit for the same period was HK$58,614,000, down about 11% from HK$65,587,000 in 2020, with a gross profit margin of 68% (2020: 71%) due to reduced rental income from investment properties in mainland China[12][9]. - Other income increased to HK$32,419,000 from HK$16,180,000 in 2020, primarily driven by imputed and bank interest income of HK$19,525,000[13]. - The loss attributable to shareholders for the year was HK$14,065,000, an improvement from HK$28,413,000 in 2020, with a basic loss per share of HK$0.059 (2020: HK$0.12)[14]. - The total comprehensive income for the year was HK$187,028,000, compared to a loss of HK$105,459,000 in the previous year[192]. - The Group's overall comprehensive income attributable to shareholders was HK$181,050,000, compared to a total comprehensive expense of HK$105,884,000 in 2020[10]. Investment Properties - The decrease in fair value of investment properties amounted to HK$22,069,000, significantly lower than HK$80,332,000 in 2020[13]. - The Group's investment properties amounted to HK$2,074,921,000, representing approximately 75% of the Group's total assets as of June 30, 2021[188]. - The fair value of investment properties in Beijing increased by RMB66,200,000, compared to RMB51,560,000 in 2020, resulting in a profit of HK$98,650,000 for the segment, up from HK$74,864,000 in 2020[25]. - The fair value of investment properties in Shanghai depreciated by RMB85,000,000, compared to RMB124,000,000 in 2020, leading to a segment loss of HK$59,146,000, improved from a loss of HK$90,333,000 in 2020[26]. - The valuations of residential portions and carparks under direct comparison approach amounted to HK$326,291,000, dependent on key inputs including market unit sales rate[188]. - The valuations of commercial portions and office units under income capitalization approach amounted to HK$1,748,630,000, reliant on key inputs including capitalization rates and market unit rents[188]. Rental Income - The decline in rental income was primarily due to subdued market conditions affecting investment properties in mainland China[12]. - The Group's rental income from investment properties in Shanghai and Beijing was RMB73,874,000, a decrease of 11% compared to RMB83,011,000 in the previous year[21]. - The average occupancy rate for community shopping malls in Beijing dropped to 80%, down from 89% in the previous year, leading to rental income of RMB24,906,000, a decline of approximately 9%[23]. - The rental income from the Group's premium office building in Shanghai was RMB48,968,000, reflecting a 9% decline from RMB54,099,000 in the previous year[24]. - The average occupancy rate of the community mall in Chaoyang District, Beijing, was about 80%, down from 89% in 2020, leading to a rental income of RMB24,906,000, a decrease of approximately 9% compared to RMB28,912,000 in 2020[25]. - In Shanghai, the average occupancy rate of "Eton Place" was about 82%, up from 79% in 2020, with rental income totaling RMB48,968,000, also a decline of 9% from RMB54,099,000 in 2020[26]. Exchange Gains and Losses - The Group recognized a net exchange gain of HK$9,629,000, compared to a net exchange loss of HK$3,951,000 in 2020, attributed to the appreciation of RMB against HKD[13]. - The Group reported a net exchange gain of HK$9,629,000 due to RMB appreciation against HKD, compared to a net exchange loss of HK$3,951,000 in 2020[32][34]. Dividends - The final dividend recommended by the Board is 1 Hong Kong cent per share, totaling 2 Hong Kong cents per share for the year, including the interim dividend[19]. - The total dividend for the year is subject to approval at the upcoming annual general meeting scheduled for December 17, 2021[19]. - An interim dividend of HK$2,377,000 was paid to shareholders, with a final dividend of HK$2,377,000 recommended, totaling 2 Hong Kong cents per share for the year ended 30 June 2021[142]. Corporate Governance - The Company has established an internal corporate governance code to facilitate compliance with the Corporate Governance Code and provide guidance to Directors and senior management[72]. - The Board believes that its efforts in enhancing corporate governance practices have contributed to sustained business growth in past years[70]. - The Company has adhered to the principles and code provisions of the Corporate Governance Code, with some deviations disclosed[71]. - The Board is responsible for establishing overall strategic development and monitoring the performance of the business and senior management[75]. - The Company continuously reviews and enhances its corporate governance practices with reference to local and international best practices[70]. - The Company aims to ensure transparency and accountability to its stakeholders, including shareholders, customers, suppliers, employees, and the public[69]. Management and Directors - Dr. TAN Lucio C. has been the Chairman and Executive Director since 2019, with extensive experience in real estate, banking, and other industries[50]. - Mr. CHIU Siu Hung has served as the Chief Executive Officer since 2019 and has over 30 years of experience in real estate and finance[51]. - The management team has a strong background in various sectors, including real estate, banking, and manufacturing, enhancing the company's strategic capabilities[52]. - The Board of Directors currently comprises seven Executive Directors and four Independent Non-executive Directors, with the latter representing more than one-third of the Board[74]. - The Company has established three committees: Remuneration Committee, Nomination Committee, and Audit Committee, each with defined terms of reference[85]. Risk Management and Internal Control - The Board is responsible for establishing and overseeing the Group's risk management and internal control systems, ensuring their effectiveness is reviewed regularly[107]. - The Audit Committee is tasked with reviewing and monitoring corporate governance functions delegated by the Board[106]. - The risk management and internal control systems provide reasonable assurance against material misstatement or loss, and the Board considers them effective and adequate based on the annual review results[113]. - For the year ended June 30, 2021, the Board and Audit Committee conducted an annual review of the effectiveness and adequacy of the risk management and internal control systems, covering all material controls[111]. Environmental and Social Responsibility - The Group is committed to supporting environmental sustainability and complying with applicable laws and regulations regarding environmental protection[133]. - Further details of environmental, social, and governance reporting will be disclosed in the "Environment, Social and Governance Report 2020-2021" within three months after the publication of the annual report[185]. - The Company will upload the environmental, social, and governance report to the Stock Exchange and its website no later than three months after the annual report publication[185].
达力集团(00029) - 2021 - 年度财报