Financial Performance - The company recorded a consolidated loss attributable to shareholders of approximately HKD 78 million for the year ended March 31, 2019, compared to a loss of approximately HKD 122 million for the previous year [8]. - Total revenue for the year was HKD 2,485 million, an increase from HKD 2,401 million in the previous year, with the food business accounting for 96% of total revenue [11]. - The food business segment generated revenue of HKD 2,397 million, up from HKD 2,316 million in the previous year, primarily from wholesale and distribution of fast-moving consumer goods [13]. - The food business segment recorded a profit of HKD 975 million after accounting for the sale, significantly up from HKD 159 million in the previous year [14]. - Other operating expenses increased to HKD 394 million, primarily due to increased distribution costs and sales and marketing expenses [12]. - The company proposed a total dividend of HKD 0.027 per share, with a payout ratio of approximately 18.6% based on the share price at the report date [8]. - The total dividend for the year will be HKD 248,000,000, equating to HKD 2.7 per share, compared to HKD 0.7 per share in the previous year [44]. Investments and Divestitures - The company completed the sale of its interests in certain subsidiaries within the food distribution business for a total consideration of approximately SGD 215 million, resulting in a non-recurring gain of approximately HKD 858 million [14]. - The group received dividend income of HKD 6,000,000 from GSH during the year [19]. - The group recorded an unrealized fair value loss of HKD 56,000,000 on its investment in PPD due to regulatory changes affecting the internet finance industry in China [25]. - The group has established an investment committee to review various investments and set corresponding investment limits to mitigate investment risks [173]. Healthcare Sector - The company remains optimistic about the long-term prospects of the healthcare sector, having invested in Healthway Medical Corporation Limited, which operates a large network of medical centers and clinics in Singapore [7]. - The group holds approximately 40.82% equity in Healthway, a private healthcare provider in Singapore, which operates nearly 100 medical centers and clinics [30]. - Healthway's losses were reduced to HKD 16 million in the current year from HKD 23 million in 2018, aided by business optimization measures and a brand restructuring plan [30]. - The group's equity in Healthway decreased to HKD 424 million as of March 31, 2019, down from HKD 454 million in 2018, influenced by the depreciation of the Singapore dollar [30]. Property and Securities Investments - The property investment segment generated total revenue of HKD 35,000,000 in the current year, down from HKD 42,000,000 in 2018 [15]. - Fair value gains from investment properties amounted to HKD 35,000,000, compared to HKD 87,000,000 in 2018, resulting in a profit of HKD 55,000,000 for the segment, down from HKD 99,000,000 in the previous year [15]. - The financial and securities investment segment recorded total revenue of HKD 45,000,000, an increase from HKD 35,000,000 in 2018, primarily from interest and dividend income [16]. - The segment experienced a net fair value loss of HKD 193,000,000 due to stock market volatility, compared to a loss of HKD 38,000,000 in 2018 [16]. Corporate Governance - The company is committed to maintaining high standards of corporate governance and compliance with regulatory requirements [57]. - The company has established a compensation committee and a nomination committee to oversee executive remuneration and board appointments, ensuring transparency [58]. - The company has a diverse board with members holding various qualifications and extensive experience in law and finance, enhancing governance [61][62]. - The board consists of seven members, including three executive directors and four non-executive directors, with a majority being independent [119]. Risk Management - The company identified major risks and uncertainties that may affect its financial condition and operational performance, detailed in the risk management report [108]. - The group has integrated ESG risks into its risk management framework for the year ending March 31, 2019 [156]. - The risk management strategy includes enhancing corporate governance through a robust internal control system [159]. - The group categorizes risks into four main categories: strategic, operational, financial, and compliance [171]. Employee and Operational Management - Employee costs for the year amounted to HKD 491,000,000, an increase from HKD 426,000,000 in the previous year [38]. - The group maintains competitive compensation packages to attract and motivate employees, regularly reviewing these packages to align with market standards [105]. - The company has 1,051 full-time employees as of March 31, 2019, a decrease from 1,765 full-time employees on March 31, 2018 [38]. Sustainability and Social Responsibility - The company emphasizes sustainable development through careful resource management and adherence to environmental commitments [110]. - The company has established anti-corruption and whistleblowing policies to maintain high ethical standards and product quality [198]. - The company is committed to providing quality products and services, ensuring compliance with privacy, health, safety, and advertising regulations [199]. - The company will continue to explore different communication methods to enhance stakeholder interaction and create mutually beneficial relationships [196].
力宝华润(00156) - 2019 - 年度财报