Financial Performance - For the year ended March 31, 2020, the Group's revenue was approximately HK$524.5 million, a decrease of 6.7% compared to HK$561.9 million in the previous year[9]. - Profit attributable to owners of the Company was approximately HK$118.3 million, down from HK$195.1 million in 2019, primarily due to decreased revenue and increased net impairment losses[10]. - Basic earnings per share for the year were HK1.22 cents, a decrease from HK2.02 cents in the previous year[11]. - The decrease in revenue was mainly due to lower brokerage commissions and reduced turnover during the year[9]. - Interest income from margin financing and debt securities also decreased compared to the last financial year[9]. - The Group recorded a net impairment loss on accounts receivable from margin clients of HK$110.9 million, significantly higher than HK$20.1 million in the previous year[10]. - Imputed interest expenses from convertible bonds issued by GNFG were HK$31.2 million, down from HK$96.7 million in 2019[10]. - The Group did not record any loss on redemption of convertible bonds during the year, compared to a loss of HK$38.9 million in the previous year[10]. - The broking business posted a profit of approximately HK$1.4 million for the year ended 31 March 2020, a decrease of 90.8% from HK$15.2 million in 2019[27]. - Revenue from broking decreased by 26.9% to approximately HK$41.4 million in the year ended 31 March 2020, down from HK$56.6 million in 2019[27]. - Total interest income from securities margin financing dropped by 4.4% to approximately HK$325.2 million in the year ended 31 March 2020, compared to HK$340.3 million in 2019[27]. - The investments division reported a loss of HK$62.6 million for the year, compared to a profit of HK$59.2 million in 2019, primarily due to fair value losses on investment properties of HK$86.6 million[29]. Market Conditions - The market outlook remains cautious due to ongoing US-China trade tensions and political events affecting investor confidence[18]. - The Hang Seng Index closed at 23,603 points at the end of March 2020, a decrease of 18.8% compared to 29,051 points at the end of March 2019[24]. - Average daily turnover on the Main Board and GEM during the year ended 31 March 2020 was approximately HK$92.2 billion, a decrease of 4.4% from approximately HK$96.4 billion for the prior financial year[24]. - The COVID-19 pandemic caused disruptions in various business segments globally, leading to a liquidity crunch and panic selling in the markets[20]. - The local property market in Hong Kong shrank, with overall residential property prices dropping due to various economic pressures including the US-China trade war and the COVID-19 pandemic[24]. - The overall economic environment is expected to remain weak, with uncertainties from the potential restart of the US-China trade war and the impact of COVID-19 on business operations[34]. Business Strategy and Outlook - The Group aims to enhance its market position through strategic initiatives and potential market expansions in response to current economic conditions[17]. - The company will continue to maintain a balance on yield relative to risk and adopt a cautious approach to credit control in its margin financing business[27]. - The Group's management remains cautiously optimistic about future business development and overall performance, focusing on quality investment properties in Asia and Europe[38]. - The Group aims to enhance its investment portfolio and provide steady rental income while managing risks prudently[38]. Corporate Governance - The company has complied with the Corporate Governance Code throughout the year ended 31 March 2020, except for a deviation from Code Provision A.4.1 regarding the appointment of non-executive directors[66]. - The board is committed to establishing good corporate governance practices to ensure transparency and accountability to shareholders[64]. - The independent non-executive directors have extensive experience in finance and investment, contributing to the company's governance[59]. - The Company aims to be a transparent and responsible organization, fostering trust among its investors[64]. - The Board currently comprises six Directors, with more than one-third being non-executive and independent of management[77]. - The Board has adopted a board diversity policy to enhance effectiveness, considering factors such as gender, age, culture, and professional experience[80]. - The Company has arranged liability insurance for its Directors and officers, reviewed annually to ensure adequate protection against potential legal liabilities[84]. - The Company has established a Nomination Committee, Remuneration Committee, and Audit Committee with defined terms of reference[108]. - The Company considers various factors, including reputation and experience, when assessing the suitability of director candidates[114]. Financial Position - As of March 31, 2020, the Group's net current assets amounted to HK$5,244.3 million, an increase from HK$4,986.5 million in 2019, with a current ratio of 9 times compared to 3.97 times in 2019[41]. - The Group's bank balances and cash on hand increased to HK$905.2 million from HK$505.9 million in 2019, primarily due to the redemption of an unlisted redeemable note of HK$300 million and a decrease in gross loans and advances by approximately HK$415.3 million[41]. - The Group had no bank borrowings as of March 31, 2020, down from HK$50 million in 2019, with unutilized banking facilities of approximately HK$1,083 million compared to HK$1,033 million in 2019[41]. - The equity attributable to owners of the Company was approximately HK$5,467.1 million as of March 31, 2020, reflecting a slight increase of approximately HK$2 million or 0.04% from the previous year[38]. - The Group's gearing ratio as of March 31, 2020, was 0.01, a decrease from 0.06 in 2019, indicating a stronger equity position[41]. Remuneration and Dividends - The total remuneration cost for employees was HK$24.5 million for the year, up from HK$23.4 million in 2019[44]. - The Board recommended a final dividend of HK0.4 cents per share, leading to total dividends of HK1.15 cents per share for the financial year[44]. - The Company has adopted a dividend policy to maintain adequate cash reserves for future growth when recommending or declaring dividends[107]. - The Board has the discretion to declare and distribute dividends, subject to Shareholders' approval for any final dividend for a financial year[107]. Risk Management - The Group's risk management policy and risk appetite statement were established, defining the types of risk the Group is prepared to pursue, retain, or tolerate[147]. - The internal audit personnel presented a report to the Audit Committee, confirming the adequacy and effectiveness of the Group's internal controls, including financial, operational, and compliance aspects[147]. - The Board confirmed that the risk management and internal control systems were reviewed and considered effective and adequate[148]. - The Group's independent audit function assists in regular reviews to ensure compliance with relevant laws and regulations[146].
结好控股(00064) - 2020 - 年度财报