EMPEROR INT'L(HK:00163)2021-07-12 09:59Financial Performance - The Group reported a gross profit of HK$647,342,000 for the year ended March 31, 2021, compared to HK$1,506,653,000 in the previous year, indicating a significant decrease[12]. - Total revenue decreased to HK$1,317.1 million, down 44.4% from HK$2,365.4 million in 2020[16]. - Rental income fell to HK$898.7 million, representing 68.2% of total revenue, compared to 42.6% in 2020[16]. - Revenue from property sales was HK$82.2 million, contributing 6.2% to total revenue, down from 6.1% in 2020[17]. - Hospitality segment revenue declined to HK$336.2 million, accounting for 25.5% of total revenue, down from 51.3% in 2020[18]. - Gross profit decreased to HK$647.3 million, with a significant reduction in fair-value loss on investment properties to HK$1,210.6 million from HK$4,129.5 million[19]. - Loss attributable to the owners of the Company decreased to HK$767.4 million, compared to HK$3,644.4 million in 2020[19]. - Basic loss per share improved to HK$0.21 from HK$0.99 in the previous year[19]. - The Company has not entered into any new equity-linked agreements during the Year, aside from the existing share option scheme[137]. - The Directors' report includes a summary of the Group's financial performance over the last five years, providing insights into trends and changes[137]. Dividends - The annual results announcement was made on June 22, 2021, with a final dividend of HK$0.012 per share declared[7]. - The Board recommended a final dividend of HK$0.012 per share, down from HK$0.035 in 2020, resulting in total dividends of HK$0.024 per share[19]. - A special dividend of HK$0.01 per share, totaling approximately HK$36.8 million, was declared to shareholders[84]. - The Group paid an interim dividend of HK$0.012 per share for the Year, totaling approximately HK$44.1 million, a decrease from HK$0.035 per share and HK$128.7 million in the previous year[128]. - The Directors recommended a final dividend of HK$0.012 per share, amounting to approximately HK$44.1 million, subject to shareholder approval[129]. Property Development and Investments - The Group disposed of several properties, primarily retail complexes and industrial units, for a total consideration of HK$889.5 million, unlocking asset value and saving reserves for future investments[39]. - Subsequent to the year, the New Media Tower was sold for HK$508.0 million, further enhancing the Group's financial position[40]. - The Emperor Group Centre in Beijing, with a gross floor area of approximately 1,062,000 square feet, has attracted reputable office tenants and premium brands, marking a significant milestone in mainland China[41]. - The redevelopment project at No. 27 Oxford Street in London was completed in early 2021, transforming it into a 9-storey retail and office building with a gross floor area of approximately 19,000 square feet[49]. - The Group is transforming two adjacent buildings at Nos. 75-85 Lockhart Road, Wan Chai, into a Grade-A office building with a gross floor area of approximately 96,000 square feet, scheduled for completion in 2021[53]. - A 14-storey industrial building at No. 4 Kin Fat Lane, Tuen Mun, has been successfully converted into a commercial building with a gross floor area of approximately 179,000 square feet, supporting diverse functions[54]. - The Emperor Star City in Shanghai is set to be developed into a shopping arcade and hotel or serviced apartment complex, with an expected gross floor area of approximately 1,300,000 square feet[58]. - As of March 31, 2021, 45 units of the Central 8 residential tower were sold at an average price of over HK$30,000 per square foot, with a total gross floor area of approximately 34,000 square feet[60]. - Peak Castle, a luxurious low-rise development in Tuen Mun, has seen all houses sold subsequent to the year[61]. - Seaside Castle project comprises 8 luxury detached houses with a gross floor area of approximately 29,000 square feet, completed and launched to the market after the year[62]. - The project at No. 15 Shouson Hill Road West has a gross floor area of approximately 88,000 square feet and is 40% owned by the Group, completed during the year and soon to be launched[68]. - The redevelopment at Nos. 20-26 Old Bailey Street & No.11 Chancery Lane is planned for a 26-storey luxury residential tower, completion expected in 2023[70]. - The site at No. 1 Wang Tak Street, Happy Valley, will be redeveloped into a 27-storey residential tower with a gross floor area of approximately 58,000 square feet, planned for completion in 2023[71]. - The existing building at Nos. 24-30 Bonham Road will be redeveloped into a 27-storey residential complex with a gross floor area of approximately 104,000 square feet, completion planned for 2023[72]. - The Group acquired investment properties at a cost of approximately HK$193.4 million and incurred costs of approximately HK$339.2 million on investment properties under development during the Year[137]. Financial Position and Funding - As of March 31, 2021, the Group's net asset value was HK$27,069.5 million, a slight decrease from HK$27,200.2 million in 2020, with net asset value per share at HK$7.36 compared to HK$7.40 in 2020[91]. - The Group's cash, bank balances, and bank deposits increased to HK$4,133.9 million in 2021 from HK$3,924.1 million in 2020[92]. - Total external borrowings amounted to approximately HK$27,284.4 million, up from HK$27,087.3 million in 2020, with a net gearing ratio of 38.4%, unchanged from the previous year[92]. - The Group issued unsecured notes totaling US$250.0 million with a coupon interest rate of 4.5% and a maturity of three years due in September 2023[93]. - As of March 31, 2021, assets with a carrying value of HK$45,617.8 million were pledged as security for banking facilities, an increase from HK$44,534.8 million in 2020[94]. - The Group maintains multiple funding sources, including bank borrowings and bond issuances, to finance its operations[93]. Market Outlook and Strategy - The Group remains cautiously optimistic about the local residential property market outlook, supported by limited land supply and underlying demand for residential units[87]. - The macro economy is expected to gradually recover, aided by vaccination programs and government fiscal support[85]. - The Group plans to enhance its investment properties portfolio and expand its land bank for future property development[83]. - The Group remains cautiously optimistic about the local residential property market due to limited land supply and strong demand, alongside a low-interest environment[89]. - The Group has established a robust project development timeline for property development in the coming years and will initiate sales at the appropriate time[89]. - The Group continues to pursue commercial development opportunities to maintain a balanced investment property portfolio[89]. - The Group has expanded its property portfolio in Greater China and overseas, including a mega commercial complex in Beijing and the largest beach-front lifestyle shopping complex in Hong Kong[113]. - The Group is actively developing smart facility solutions, integrating innovative technologies to enhance market expansion[113]. - The management team has over 40 years of combined experience in property investment, development, and management across various regions[110]. - The Group's strategic planning includes diverse business segments such as financial services, retail, and entertainment production[113]. Corporate Governance and Management - The Company has a strong focus on corporate governance, with independent directors overseeing key committees[119][120][121]. - The Company has introduced innovative ideas to enhance its business operations and capitalize on new opportunities[113]. - The management team is involved in evaluating new business opportunities and strategic planning for growth[113]. - The Group's executive directors hold significant qualifications and experience in their respective fields, ensuring effective leadership[110][119][120]. - The remuneration of employees is determined based on individual responsibilities, skills, experience, and market pay levels[154]. - The company has a written remuneration policy ensuring alignment with business strategy and shareholder interests[152]. - Directors' fees are paid in line with market practices, ensuring no individual determines their own remuneration[152]. - The Company considers all Independent Non-executive Directors to be independent as per Rule 3.13 of the Listing Rules[182]. Shareholding Structure - Ms. Semon Luk holds a deemed interest in 2,747,610,489 shares, representing 74.71% of the issued voting shares[156]. - Mr. Alex Yeung also holds a deemed interest in the same 2,747,610,489 shares, equating to 74.71% of the issued voting shares[156]. - Ms. Vanessa Fan owns 10,500,000 shares, which is 0.29% of the issued voting shares[156]. - The company has a total of 2,747,610,489 shares held by a wholly-owned subsidiary, reflecting significant ownership concentration[159]. - As of March 31, 2021, Ms. Semon Luk holds 851,352,845 shares in Emperor E Hotel, representing 70.38% of the issued voting shares[164]. - Mr. Alex Yeung has deemed interests in 2,747,610,489 shares, which is 74.71% of the voting shares, through a private discretionary trust[177]. - The shares held by AY Holdings and Dr. Albert Yeung are the same as those held by Ms. Semon Luk and Mr. Alex Yeung, totaling 2,747,610,489 shares[177]. Legal and Compliance - The Group's principal risks and uncertainties are outlined in the Corporate Governance Report, highlighting the importance of compliance with relevant laws and regulations[131]. - The company maintains permitted indemnity provisions for potential liabilities associated with legal proceedings against directors[147]. - The Company has not entered into any arrangements for Directors or chief executives to acquire benefits through shares or debentures during the year[169]. - The Directors believe that the Group's interests are adequately safeguarded despite some Directors having interests in competing businesses[181].