Financial Performance - The company reported an annual loss of HKD 26,983,000 for the fiscal year ending March 31, 2020, compared to a loss of HKD 19,880,000 in the previous year[11]. - The company recorded revenue of HKD 14,869,000 for the fiscal year, a decrease of 51.4% from HKD 30,594,000 in the previous year[22]. - Revenue from property sales in China was HKD 4,264,000, down 82.7% from HKD 24,673,000 in the previous year[23]. - Rental income decreased to HKD 3,776,000 from HKD 4,199,000, reflecting a decline of 10.0%[23]. - Interest income from financial lending increased significantly to HKD 6,829,000, up 296.5% from HKD 1,722,000[23]. - The annual loss was HKD 26,983,000, compared to a loss of HKD 19,880,000 in the prior year, primarily due to a 6.6% depreciation of the Renminbi and a fair value loss of HKD 7 million on investment properties[22][23]. - The total comprehensive loss for the year amounted to HKD 35,549,000, significantly higher than the previous year's comprehensive loss of HKD 13,081,000, marking an increase of around 171.5%[165]. - The company reported a basic and diluted loss per share of HKD 1.38, compared to HKD 1.02 in the prior year, representing an increase of approximately 35.3%[165]. - The gross profit for the year was HKD 11,663,000, down from HKD 20,737,000, indicating a decrease of about 43.7%[165]. - The company incurred a tax expense of HKD 2,361,000, a decrease from HKD 8,372,000 in the previous year, indicating a reduction of approximately 71.8%[165]. Dividend Policy - The company did not declare an interim dividend for the six months ending September 30, 2019, nor a final dividend for the year ending March 31, 2020[12][13]. - The group did not declare any interim or final dividends for the fiscal year ending March 31, 2020[49][50]. - The company has no predetermined dividend payout ratio, and the board will consider operational performance, financial condition, and future prospects when declaring dividends[119]. Property Sales and Rental Income - The company sold 5 residential units in Zhongshan during the review year, a decrease from 28 units sold in the previous year[16]. - Rental income from the property "Yongsheng Plaza" decreased by approximately 47% compared to the previous year[16]. - As of March 31, 2020, there were 61 unsold residential units remaining, with 16 of those units rented out[16]. - The company generated rental income of HKD 1,872,000 in the current year from existing lease agreements, compared to HKD 1,956,000 in the previous year[81]. - The new lease agreement with Li Yongqiang has a monthly rent of HKD 155,000, down from HKD 163,000 in the previous agreement[80]. Financial Lending Business - The financial lending business, acquired through X8 Finance Limited, has shown satisfactory growth, but the COVID-19 outbreak has created unpredictable impacts on the economy and real estate market in Hong Kong[17]. - The management plans to cautiously conduct financial lending operations in Hong Kong, focusing on first mortgage loans for residential properties[17]. - The company aims to generate stable interest income from its financial lending business[18]. - The company plans to cautiously expand its financial lending business in Hong Kong while enhancing risk management policies[20]. Corporate Governance - The board consists of experienced members with over 20 years in finance and accounting, enhancing corporate governance[64][65][66]. - The company emphasizes the importance of good corporate governance to ensure proper use of funds and effective resource allocation[142]. - The independent non-executive directors have confirmed their independence according to the Hong Kong Stock Exchange Listing Rules[60]. - The board is responsible for reviewing and monitoring compliance with legal and regulatory requirements[100]. - The company is committed to maintaining and enhancing the quality of its corporate governance practices[142]. Risk Management and Internal Controls - The company emphasizes the importance of internal control and risk management, with the board responsible for the effectiveness of these systems[123]. - A formal risk assessment review will be implemented to regularly monitor and reassess significant risks faced by the company[125]. - The company has established a robust risk management policy to address operational and compliance risks[124]. - The internal audit function is conducted by an external professional firm, with a three-year internal audit plan approved by the board[131]. - No significant control deficiencies were identified during the internal control review conducted in 2020[132]. Shareholder Information - Major shareholders include Lee & Leung (B.V.I.) Limited, holding 1,252,752,780 shares, representing 63.99% of the issued share capital[78]. - The largest customer accounted for approximately 13.1% of the group's revenue, while the top five customers contributed about 40.4%[43]. - Shareholders have the right to request the convening of special general meetings and propose business transactions[139]. Audit and Financial Reporting - The financial statements for the year ending March 31, 2020, were audited by PricewaterhouseCoopers, following Deloitte's audit for the previous two years[92]. - Deloitte resigned as the company's auditor effective March 3, 2020, due to a disagreement over audit fees for the fiscal year ending March 31, 2020[120]. - The new auditor, PwC, was appointed effective March 4, 2020, to fill the vacancy left by Deloitte[120]. - The independent auditor confirmed that the consolidated financial statements fairly reflect the group's financial position as of March 31, 2020[144]. Assets and Liabilities - Total assets decreased from HKD 970,484,000 to HKD 933,687,000, a decline of approximately 3.8%[169]. - Non-current assets decreased from HKD 669,493,000 to HKD 623,770,000, a decline of about 6.9%[169]. - Current assets decreased from HKD 264,194,000 to HKD 346,714,000, a decline of approximately 23.7%[169]. - The company’s total liabilities increased, impacting its financial stability, although specific figures were not disclosed in the provided content[165]. - The company’s total liabilities decreased slightly from HKD 26,158,000 to HKD 25,327,000, a decline of about 3.2%[170]. Accounting Standards - The group adopted HKFRS 16 "Leases" effective from April 1, 2019, which resulted in the recognition of lease liabilities amounting to HKD 1,136,000[188]. - The group did not adopt any new or revised standards that would significantly impact the financial statements for the current or future reporting periods[187]. - The group has not early adopted several new accounting standards and interpretations that are not yet mandatory[187].
TERMBRAY IND(00093) - 2020 - 年度财报