Financial Performance - The company recorded a consolidated loss attributable to shareholders of approximately HKD 361 million for the year ended March 31, 2020, compared to a loss of HKD 78 million for the year ended March 31, 2019[11]. - Revenue decreased to HKD 856 million for the year, down from HKD 2,485 million in 2019, primarily due to the sale of food distribution and dining center businesses[11]. - The food business remained the main revenue source, accounting for 92% of total revenue in the current year, down from 96% in the previous year[11]. - Other operating expenses decreased to HKD 183 million from HKD 394 million in 2019, primarily due to the completion of the sale of the food distribution and dining center businesses[12]. - The food business segment recorded revenue of HKD 785 million, a significant drop from HKD 2,397 million in 2019, mainly due to the sale of the food distribution and dining center businesses[13]. - The food business segment reported a profit of HKD 278 million, down from HKD 975 million in 2019, influenced by the sale of subsidiaries and a non-recurring gain of HKD 287 million from the sale of FJM Group[13]. - The total assets of the food business segment decreased to HKD 851 million from HKD 2,320 million in 2019, while liabilities slightly decreased to HKD 479 million from HKD 490 million[14]. - The property investment segment's total revenue was HKD 29 million, down from HKD 35 million in 2019, with a net fair value loss of HKD 95 million due to market downturns[16]. - The financial and securities investment segment recorded total income of HKD 31 million, down from HKD 45 million in 2019, with a net loss of HKD 129 million compared to a loss of HKD 170 million in the previous year[17]. - The total value of financial assets at fair value was HKD 827,948,000, with a net loss of HKD 156,870,000 for the year ended March 31, 2020[20]. Dividends and Shareholder Returns - The company proposed a final cash dividend of HKD 0.5 per share and a special final cash dividend of HKD 0.3 per share, totaling HKD 1 per share for the year[7]. - The total dividend for the year will be HKD 91.9 million, down from HKD 248 million in the previous year, with a total dividend per share of HKD 1.0 compared to HKD 2.7[44]. - The company aims to provide stable and sustainable returns to shareholders through a progressive dividend policy, which was approved in January 2019[158]. - The board will consider the group's financial performance, financial condition, investment and funding requirements, and future prospects when deciding on dividend distribution[158]. Business Strategy and Expansion - The company plans to expand its food retail business by opening new stores under the "Chatterbox Café" brand in Hong Kong and "Maxx Coffee" in Singapore[4]. - The group plans to expand its food retail business in Hong Kong and Singapore, including opening new stores under the "Chatterbox Café" brand and a franchise agreement for "Maxx Coffee" in Singapore[15]. - The company will continue to adjust its asset portfolio and create recurring income sources in response to the ongoing economic challenges[6]. - The company remains optimistic about the healthcare sector's prospects due to the increasing demand for medical services in the Asia-Pacific region[5]. - The company plans to focus on enhancing the value of existing businesses and seeking suitable opportunities to increase shareholder returns and sustainable long-term value[38]. Impact of COVID-19 - The COVID-19 pandemic significantly impacted global economic activities, leading to increased uncertainty and volatility in the stock market[6]. - The group recorded a loss of HKD 38 million from its investment in TIH Limited, a significant decline from a profit of HKD 5 million in 2019, primarily due to the adverse effects of the COVID-19 pandemic[29]. - The operational risk from COVID-19 has led to measures such as ensuring a clean working environment and flexible working hours[177]. Governance and Management - The company has appointed Dr. Li Chong as the chairman and Mr. Li Lianwei as the CEO, both of whom have been in their roles since January 1, 2015[57]. - The company has established employment agreements with its directors, which can be terminated with three months' written notice[55]. - The company has received annual confirmation letters regarding the independence of its independent non-executive directors, affirming their independent status[58]. - The company has a strong governance structure with independent non-executive directors serving on various committees, ensuring oversight and compliance[65]. - The board consists of seven members, including three executive directors and four non-executive directors, with three non-executive directors classified as independent[128]. - The board has established three committees: Audit Committee, Remuneration Committee, and Nomination Committee, to oversee specific matters within the group[132]. - The company has adopted a policy for fair disclosure and investor relations to ensure timely and equitable information dissemination[160]. - The company has established a risk management and internal control system, which is reviewed annually for effectiveness[151]. Risk Management - The company has established a risk governance structure to clarify roles at all levels in the risk management process[167]. - The group identified major risks for the year, including financial credit risk and operational risks related to COVID-19, with specific countermeasures implemented[177]. - The group has set up a credit risk management function to address financial credit risks, including default management and recovery procedures[177]. - The company has integrated ESG risks into its risk management framework for the fiscal year ending March 31, 2020[165]. - The board has confirmed the effectiveness and adequacy of the risk management and internal control systems for the year, emphasizing that these systems are designed to manage rather than eliminate risks[183]. Environmental, Social, and Governance (ESG) - The environmental, social, and governance (ESG) report covers the company's performance in these areas for the fiscal year ending March 31, 2020, highlighting ongoing efforts in sustainability[184]. - The company has established a working group to implement ESG policies and strategies, conducting materiality assessments and preparing the ESG report[190]. - The company emphasizes the importance of stakeholder feedback on its ESG report to continuously improve its performance in this area[189]. - The company has identified 22 relevant issues related to environmental, social, and governance (ESG) factors, with 11 issues deemed significant for reporting and management[196][197]. - The company is committed to ensuring suppliers adhere to its social and environmental standards during the selection and evaluation process[195]. Financial Position - The group's total assets decreased to HKD 5 billion as of March 31, 2020, from HKD 6.9 billion a year earlier, mainly due to loan repayments and the sale of subsidiaries[32]. - Cash and bank balances decreased to HKD 1.1 billion as of March 31, 2020, down from HKD 2.39 billion a year earlier[32]. - Total liabilities fell to HKD 1.4 billion as of March 31, 2020, from HKD 1.9 billion a year earlier, due to loan repayments and the sale of subsidiaries[33]. - The capital debt ratio as of March 31, 2020, was 23.1%, a decrease from 29.0% as of March 31, 2019[35]. - The equity attributable to equity holders as of March 31, 2020, was HKD 3.2 billion, down from HKD 3.9 billion as of March 31, 2019[35].
力宝华润(00156) - 2020 - 年度财报