Financial Performance - For the year ended March 31, 2019, the Group's revenue was approximately HK$561.9 million, a decrease of 3.9% compared to HK$584.8 million in the previous year[7] - Profit attributable to owners of the Company was approximately HK$195.1 million, down from HK$297.1 million in 2018, primarily due to decreased revenue and increased finance costs[7] - Basic earnings per share for the year were HK2.02 cents, compared to HK3.34 cents in 2018, reflecting the decrease in profit[7] - The Group recorded imputed interest expenses of HK$96.7 million from convertible bonds issued by Get Nice Financial Group Limited, an increase from HK$57.7 million in the previous year[7] - Loss on redemptions of convertible bonds amounted to HK$38.9 million during the year, with total principal amounts of HK$262.5 million[7] - Impairment losses on loans to securities margin clients and loans and advances were HK$20.1 million and HK$16.5 million, respectively, compared to nil in the previous year[7] - The decrease in revenue was mainly attributed to a reduction in brokerage commission due to lower turnover during the year[7] - Interest income from margin financing, money lending, debt securities, and property rental income recorded an increase compared to the last financial year[7] - The Group's financial performance was impacted by the loss on redemptions and recognition of impairment losses during the current year[7] - The slight decrease in revenue was offset by increases in interest income from various business segments[7] Market Conditions - The Hang Seng Index closed at 29,051 points at the end of March 2019, down from 30,093 points at the end of March 2018, reflecting a decline in market performance[10] - The average daily turnover on the Main Board and GEM during the year ended 31 March 2019 was approximately HK$96.4 billion, a decrease of 9.2% compared to approximately HK$106.2 billion for the previous year[10] - The Hong Kong stock market experienced a decline in monthly turnover trends during the current year, reflecting global economic and political issues[10] - Concerns over decelerating economic activity in China contributed to increased market pessimism and a decline in credit to the real economy[10] Business Segments Performance - The broking business reported a profit of approximately HK$15.2 million for the year ended 31 March 2019, a decrease of 76.6% from HK$64.9 million in 2018[12] - Revenue from broking decreased by 41.8% to approximately HK$56.6 million in 2019, down from HK$97.2 million in 2018[12] - The underwriting, placing, and proof of funds business contributed approximately HK$12.7 million in 2019, compared to HK$26.1 million in 2018, due to a decrease in the number of deals[12] - Money lending business recorded profit before tax of HK$85.6 million for the year ended 31 March 2019, compared to HK$99.3 million in 2018[15] - The investments division reported a profit of HK$59.2 million for the year, up from HK$29.8 million in 2018[17] Investment and Property - The Group's portfolio of investment properties had a total fair value of HK$881.9 million as at 31 March 2019, an increase from HK$788.1 million in 2018[17] - The investment portfolio's total fair value decreased to HK$815.1 million as at 31 March 2019, down from HK$894.3 million in 2018[17] - The Group acquired two investment properties in Hong Kong for a total consideration of HK$40 million during the year[17] - Rental income increased to HK$12.6 million in 2019, compared to HK$8 million in 2018[17] Corporate Governance - The Company has complied with the Corporate Governance Code provisions throughout the year ended 31 March 2019, except for a deviation from Code Provision A.4.1 regarding the appointment term of independent non-executive Directors[47] - The independent non-executive Directors are subject to retirement by rotation and re-election at least once every three years, rather than being appointed for a specific term[47] - The roles of the chairman and CEO are performed by the same individual, which is a non-compliance with Code Provision A.2.1, but the Board believes this structure does not impair the balance of power[51] - The Company is committed to good corporate governance practices to maintain and promote investor confidence[47] - The Board has established a Nomination Committee, Remuneration Committee, and Audit Committee with defined terms of reference[82] Risk Management - The Board established a risk management policy and risk appetite statement, defining the types of risks the Group is prepared to pursue, retain, or tolerate[110] - A risk register was maintained to document risks and actions for ongoing management, ensuring effective communication to the Board and senior management[110] - Senior management is responsible for maintaining and reviewing the effectiveness of the Group's risk control to minimize operational risks[110] Environmental, Social, and Governance (ESG) - The Group's commitment to environmental issues is reflected in its acknowledgment of being part of the 'global village' and its efforts to utilize resources more efficiently[141] - The Group's ESG report is prepared in accordance with the "Comply or Explain" provisions, focusing on key performance indicators and material issues[141] - The Group emphasizes the importance of sustainable development as a key element of its vision and aims to reduce its environmental impact[141] - The Group has implemented measures to promote stakeholder relations and communications, including issuing annual and interim reports and arranging stakeholder meetings[139] Employee Welfare and Diversity - The Group had 78 full-time employees at the end of the Reporting Period, indicating a commitment to hiring talent with financial experience from various countries[178] - Employee gender distribution shows 42% male and 58% female, reflecting a diverse workforce[180] - The Group emphasizes equal employment opportunities regardless of gender, race, or disability, ensuring fair treatment in recruitment and promotion[183] - The Group encourages female participation in top management and managerial roles, promoting diversity in leadership[185] Future Outlook - The Group remains cautiously optimistic about future business development despite a competitive environment, with opportunities expected from the Greater Bay Area and China's Belt & Road initiative[24] - Management plans to continue seeking quality investment properties in Asia and Europe, as well as securities with good potential to enhance the investment portfolio[23]
结好控股(00064) - 2019 - 年度财报