GUOCO GROUP(HK:00053)2021-10-06 10:10Financial Performance - GuocoGroup reported a total revenue of HKD 5.2 billion for the fiscal year, representing a 12% increase compared to the previous year[25]. - The company achieved a net profit of HKD 1.1 billion, which is a 15% increase year-over-year[25]. - The company's revenue for the fiscal year ending June 30, 2021, was HKD 10,253 million, a decrease of 30% from HKD 14,641 million in 2020[36]. - Operating profit for the same period was HKD 891 million, compared to a loss of HKD 1,145 million in 2020, indicating a significant recovery[36]. - Profit attributable to shareholders was HKD 2,501 million, a turnaround from a loss of HKD 873 million in the previous year[36]. - Earnings per share increased to HKD 7.69 from a loss of HKD 2.68 in 2020[36]. - The total dividend declared for the year was HKD 2.00 per share, down from HKD 2.50 in 2020, representing a 20% decrease[36]. - The company reported a profit attributable to shareholders of HKD 2.501 billion for the year ended June 30, 2021, compared to a loss of HKD 873 million in the previous year, indicating a significant turnaround in performance[42]. - The group recorded a net profit attributable to shareholders of HK$2.501 billion for the year ending June 30, 2021, compared to a loss of HK$873 million the previous year[99]. Property Development - GuocoLand has successfully developed 35 residential projects in Singapore, providing approximately 11,000 apartments and residences[26]. - The company plans to expand its property development and investment operations into new markets, including the UK and Australia, through strategic partnerships[26]. - The company has developed a large property portfolio across major cities in China, including Beijing, Shanghai, Nanjing, and Tianjin, and is currently constructing large-scale development projects in Shanghai and Chongqing[28]. - The Singapore residential market is expected to remain strong, with a 0.8% increase in the overall private residential property price index in Q2 2021[73]. Financial Services - GuocoGroup's financial services segment continues to grow, with a focus on managing financial risks and optimizing liquidity[26]. - The financial services segment, under Hong Leong Financial Group, employs over 10,000 staff and operates approximately 260 branches across Malaysia, Singapore, and Hong Kong[28]. - The company is focused on expanding its Islamic banking services through Hong Leong Islamic Bank, providing comprehensive financial products compliant with Islamic law[28]. - The company has a strong presence in the investment banking sector through Hong Leong Investment Bank, which engages in securities brokerage and related financial services[28]. - The company’s asset management division offers unit trust management and Islamic fund management services, indicating a diversified financial service portfolio[28]. - The company has a significant stake in Chengdu Bank, holding 17.99%, which strengthens its foothold in the Chinese market[28]. - The group anticipates continued growth in its main markets, supported by improved service quality and asset quality[60]. Risk Management - The company has established a strong risk management system to control major financial risks and hedge strategies[26]. - The company continuously reviews and strengthens its risk management and internal control systems to align with best practices and regulatory changes[110]. - The board is responsible for identifying key risks and ensuring appropriate measures and control systems are implemented[111]. - The company has established a corporate risk management framework to continuously identify and assess risks and implement mitigation procedures[153]. Dividends and Shareholder Returns - The company has proposed a final dividend of HKD 1.50 per share, pending approval at the annual general meeting[8]. - The company maintained a cautious approach to dividends, proposing a final dividend of HKD 1.50 per share, consistent with the previous year, amidst uncertain economic conditions[43]. - The company aims to balance dividend distribution and retention of sufficient liquidity to meet operational needs and seize future growth opportunities[128]. - The board of directors has the discretion to recommend or declare dividends based on current financial performance and future financial needs[128]. Corporate Governance - The board of directors has adopted a corporate governance code based on the principles of the Hong Kong Stock Exchange's Listing Rules, ensuring compliance and enhancing business performance[110]. - The board held a total of five meetings during the fiscal year ending June 30, 2021, with all directors confirming adherence to the established standards of conduct for securities trading throughout the year[126]. - The attendance rate for board meetings was 100% for the executive chairman and independent non-executive directors, indicating strong engagement in governance[124]. - The company has established various board committees to assist in fulfilling its responsibilities, including reviewing and approving corporate objectives and overall strategies[111]. - The company has received declarations of independence from all independent non-executive directors, affirming their status as independent individuals[115]. - The company has implemented a diversity policy for the board, considering various factors such as gender, age, cultural background, and professional experience in the selection of candidates[142]. Market Expansion - The company is actively pursuing market expansion strategies in Southeast Asia, particularly in Malaysia and Singapore, to enhance its property development and financial services[28]. - The company aims to deliver sustainable returns to shareholders while enhancing capital value through its diversified investment portfolio[25]. Challenges and Recovery - GLH Hotels Group Limited recorded a post-tax loss of GBP 55.1 million for the year ended June 30, 2021, due to the ongoing impact of COVID-19 restrictions[48]. - Rank's casino business was closed for 59% of operational days, leading to a 48% decrease in net gaming revenue to GBP 32.96 million[89]. - The group remains cautiously optimistic about the economic recovery for the fiscal year 2021/2022, despite ongoing uncertainties related to the pandemic and geopolitical risks[52]. - The group has temporarily postponed non-essential capital expenditures to preserve operational funds and liquidity during the pandemic[49]. Charitable Contributions - The group made charitable donations totaling USD 1,790,000 during the year, compared to USD 2,086,000 in the previous year[176].