Financial Performance - The net profit attributable to shareholders decreased by 67.3% to HKD 801 million in 2020, compared to HKD 2.45 billion in 2019[11]. - The basic net profit for 2020 was HKD 1.299 billion, a decrease of 50.0% from HKD 2.6 billion in 2019[12]. - The total revenue for the year 2020 was HKD 5,012 million, a decrease from HKD 11,624 million in 2019, representing a decline of approximately 56.9%[16]. - Shareholders' profit attributable to the company was HKD 801 million in 2020, down from HKD 2,450 million in 2019, reflecting a decrease of about 67.3%[16]. - The basic earnings per share for 2020 was HKD 0.68, compared to HKD 2.08 in 2019, indicating a decline of approximately 67.3%[16]. - The total comprehensive income for the year was HKD 1,296,884,000, compared to HKD 2,465,156,000 in 2019, a decrease of about 47.5%[191]. - The company reported a profit of HKD 800,868,000 for the year 2020, compared to HKD 2,449,733,000 in 2019, a decrease of about 67.3%[191]. - Operating profit for 2020 was HKD 943,198,000, down 65.1% from HKD 2,705,740,000 in 2019[183]. Dividends - The proposed final cash dividend per share is HKD 0.56, with a total annual cash dividend of HKD 0.80 per share for 2020[12]. - The company declared a cash dividend of HKD 0.80 per share for 2020, compared to HKD 0.78 per share in 2019, representing an increase of 2.6%[16]. - The company declared a dividend of HKD 282,392,000 for the year 2020, down from HKD 588,316,000 in 2019, a reduction of approximately 52%[191]. - The company issued a special interim dividend in 2020, distributing 2.67 shares of Polydata Asset Holdings for every share held[145]. Assets and Liabilities - The total assets of the company were HKD 34,104 million in 2020, down from HKD 52,132 million in 2019, reflecting a decrease of about 34.6%[17]. - The net asset value per share decreased to HKD 14.85 in 2020 from HKD 23.00 in 2019, a decline of approximately 35.8%[17]. - Total non-current assets decreased from HKD 30,527,043,000 in 2019 to HKD 17,114,126,000 in 2020, a decline of approximately 44%[186]. - Current assets decreased from HKD 21,604,549,000 in 2019 to HKD 16,990,351,000 in 2020, representing a decline of approximately 21.5%[186]. - Total liabilities decreased from HKD 14,025,817,000 in 2019 to HKD 7,352,239,000 in 2020, a decrease of about 47.6%[187]. - Net asset value decreased from HKD 31,321,348,000 in 2019 to HKD 17,588,193,000 in 2020, a decline of approximately 43.7%[187]. Land Bank and Development Projects - The attributable gross floor area of the landbank in Hong Kong and Mainland China amounts to approximately 3.7 million sq m as of December 31, 2020[3]. - The Group has ongoing projects in Shenyang, Huizhou, Foshan, and Wuxi, among others, with a total development land reserve of 3.406 million sq m in Mainland China[10]. - The total land bank available for development as of December 31, 2020, was approximately 3.7 million square meters[33]. - The total area managed by the group as of December 31, 2020, was approximately 1,475,000 square meters, down from 1,632,000 square meters in 2019[83]. Investment Properties - The Group's investment properties and property development projects experienced a decline in revaluation gains due to fewer billable development projects during the year[11]. - The total rental income from the Hong Kong investment property portfolio decreased to HKD 293 million in 2020, down 17.9% from HKD 357 million in 2019[24]. - The fair value of developed investment properties and properties under development was assessed based on independent valuations amounting to HKD 1,811,800,000[179]. - The net revaluation gain recognized in the consolidated income statement for the year ended December 31, 2020, was HKD 31,700,000[179]. Corporate Governance - The company has adhered to all provisions of the corporate governance code, except for the separation of the roles of chairman and CEO[102]. - The company emphasizes the importance of good corporate governance as a key factor for sustainable long-term success[101]. - The board of directors consists of 10 members, with 40% being executive directors and over one-third being independent non-executive directors[105]. - The company has a commitment to transparency and accountability to its shareholders[101]. Environmental and Social Responsibility - The company has committed to high standards of environmental protection and is developing environmental performance goals[89]. - The group has established a waste recycling system and is promoting sustainable development awareness among employees[88]. - The company has taken multiple measures to safeguard the health of stakeholders, including providing personal protective equipment during the COVID-19 pandemic[92]. - The group has conducted annual surveys to gauge stakeholder views on significant environmental and social issues[90]. Financial Management - The company has sufficient financial resources to meet its obligations and future funding needs through existing credit facilities and recurring income from investment properties[93]. - The company aims to declare dividends twice a year, subject to financial performance, with no preset dividend payout ratio[143]. - The company has implemented a risk management and internal control system, regularly reviewing compliance with legal and regulatory requirements[116]. - The company confirmed the responsibility for maintaining proper accounting records and preparing financial statements that fairly reflect the group's financial position and performance for the fiscal year[136]. Employee and Workforce - The total number of employees decreased to 2,906 as of December 31, 2020, from 3,062 in 2019, with 2,782 employees in Hong Kong and 124 in mainland China[92]. - Employee costs increased to HKD 670 million in 2020, compared to HKD 410 million in 2019[92]. - The company has a comprehensive human capital strategy to ensure competitive compensation and development opportunities for employees[92]. Risks and Challenges - The group faces risks related to property development, including market conditions, construction costs, and regulatory changes[85]. - The group faced risks related to fluctuations in the RMB exchange rate for investments in mainland China projects[93]. - The company has implemented a risk management and internal control system based on the "three lines of defense" model to manage operational risks effectively[134].
九龙建业(00034) - 2020 - 年度财报