Financial Performance - Revenue for the year ended June 30, 2020, was HK$552,880,000, a significant increase from HK$201,541,000 in 2019, representing a growth of 174%[6] - Profit attributable to the owners of the Company decreased to HK$47,696,000 in 2020 from HK$572,899,000 in 2019, reflecting a decline of 91%[6] - Earnings per share dropped to HK$0.08 in 2020 from HK$0.99 in 2019, a decrease of 92%[6] - The net assets of the Company as of June 30, 2020, were HK$6,731,916,000, slightly down from HK$6,829,709,000 in 2019, a decrease of 1.4%[6] - Fixed assets totaled HK$7,127,240,000 in 2020, down from HK$7,698,535,000 in 2019, representing a decline of 7.4%[6] - The net current assets increased to HK$655,203,000 in 2020 from HK$402,637,000 in 2019, showing a growth of 62%[6] - Dividends declared for the year amounted to HK$135,910,000, up from HK$129,348,000 in the previous year, indicating a growth of 5%[6] - The dividend cover ratio significantly decreased to 0.36 times in 2020 from 4.50 times in 2019, indicating a reduction in profitability relative to dividends[6] Shareholder Matters - The Company plans to hold its Annual General Meeting on November 17, 2020, to discuss the financial results and declare the final dividend[10] - The company seeks general approval from shareholders for a mandate to repurchase shares[42] - The Directors have no immediate plans to issue any new shares, but are seeking general authorization in compliance with Listing Rules[42] - Shareholders can appoint proxies to attend and vote at the meeting, with specific rules for joint holders of shares[42] - The company must hold its next Annual General Meeting within the legally required timeframe[25] - The resolution can be revoked or varied by ordinary resolution of the shareholders at a general meeting[25] - The company is required to submit proxy forms at least 48 hours before the meeting[42] - The notice of the Annual General Meeting includes provisions for the appointment of representatives by shareholders[42] COVID-19 Impact - The company reported a significant impact from the COVID-19 pandemic, with expectations of a bankruptcy rate increase in Hong Kong by over 35%[57] - Demand for retail, hotel, food and beverage, and tourism-related industries in Hong Kong has been severely affected, leading to a shift towards smaller office spaces outside the central business district[58] - The bankruptcy rate in Hong Kong is anticipated to exceed 35% due to the weakened effectiveness of relief measures amid the Covid-19 outbreak[61] - The demand for hotel and short-term accommodation in Kuala Lumpur has drastically decreased following the Covid-19 outbreak[74] - Shareholders are advised to consider the risks of attending the AGM in an enclosed environment and to follow government guidelines regarding COVID-19[2] - The company strongly encourages shareholders to appoint the Chairman as a proxy for voting instead of attending the AGM in person due to ongoing COVID-19 risks[3] - Precautionary measures for the AGM include compulsory temperature checks and mandatory wearing of surgical masks for all attendees[1] - The company will not serve refreshments or distribute corporate gifts at the AGM[5] Property Development - The first phase of the residential project at 8 Ting Kau, Tsuen Wan, consists of a 21-story building with 49 residential units and 39 parking spaces, with unit sizes ranging from approximately 1,075 to 2,095 square feet[53] - Eleven units have been sold, and most of the remaining units have been leased out[56] - The occupancy rate for Villa Cecil Phase II is maintained at 85%, with 10 out of 29 residential units sold, and a total marketable gross floor area of approximately 50,000 square feet[65] - The occupancy rate for the two blocks in Villa Cecil Phase III has reached 95%, contributing good rental income to the Group[65] - The total marketable gross floor area for the New Villa Cecil project is approximately 58,000 square feet, with Phase I comprising 19 blocks of 2-storey residential villas already leased out[68] - The application for the Certificate of Compliance for the entire One Kowloon Peak development has been submitted, which includes 49 residential units[63] - A total of 783 units have been sold in Shenzhen, achieving a sales transaction amount of RMB3,813 million[68] - The construction of the Hangzhou project is completed, providing 849 residential units and 22 deluxe villas, with a total net floor area of 122,483 square meters (1,318,407 square feet)[71] Financial Management - The total investment in perpetual notes and debentures as of June 30, 2020, is HK$190,704,000, with HK$31,593,000 purchased and HK$3,996,000 sold during the year[74] - The market value of investments in Hong Kong stocks as of June 30, 2020, is HK$31,168,000, with HK$6,115,000 sold and HK$38,638,000 purchased during the year[74] - The Group's investment properties and properties under development were valued at HK$5,428,781,000 and HK$1,656,094,000 respectively, totaling HK$7,084,875,000 as of June 30, 2020, a decrease from HK$7,659,411,000 in 2019[148] - The fair value of investment properties increased by HK$5,840,000, compared to a significant increase of HK$683,397,000 in the previous year[119] - Cash and bank balances rose significantly to HK$1,236,667,000 from HK$595,454,000, reflecting improved liquidity[137] - The total debt to equity ratio increased to 22.0% from 20.1%, while the net debt to equity ratio decreased to 3.1% from 11.1%[137] Corporate Governance - The Board is responsible for leading and controlling the business operations of the Group, formulating strategic directions, and monitoring financial performance[197] - Major decisions reserved for the Board include matters related to conflict of interest for substantial shareholders and directors, and formulation of key business and financial objectives[198] - The Board oversees financial controls, compliance, and risk management, including the approval of annual operating and capital expenditure budgets[198] - Changes to the Company's capital structure, such as share buy-backs or issuance of new securities, are also under the Board's purview[198] - The Board's responsibilities include the adoption and review of corporate governance policies and practices[200] - The Board monitors the training and continuous professional development of directors and senior management[200] - The Board reviews and monitors the issuer's compliance with legal and regulatory requirements[200]
卓能(集团)(00131) - 2020 - 年度财报