Financial Performance - Profit for the year attributable to owners of the Company decreased significantly from HK$1.01 billion in 2018 to HK$162.56 million in 2020, a decline of 84%[5] - Basic earnings per share dropped from HK$2.68 in 2018 to HK$0.43 in 2020, a decrease of 84%[5] - For the year ended December 31, 2020, the Group recorded a profit of HK$173.5 million, representing a decrease of 61% compared to 2019[22] - Revenue for 2020 was HK$771,622,000, down 40% from HK$1,276,508,000 in 2019[85] - Profit for the year attributable to owners of the Company was HK$162,560,000, down 62% from HK$429,984,000 in 2019[85] Dividend and Payout - Dividend per share was reduced from HK$0.70 in 2018 to HK$0.25 in 2020, a decrease of 64.3%[5] - The total dividend per share decreased by 33% to HK$0.40 from HK$0.60 in 2019[85] - The dividend payout ratio increased to 93% from 53% in the previous year[85] - The Group proposed a final cash dividend of HK$0.25 per share, totaling HK$0.40 per share for the year 2020[22] Assets and Liabilities - Total assets increased from HK$13.72 billion in 2016 to HK$14.94 billion in 2020, representing a growth of 8.9%[5] - Total liabilities decreased from HK$2.80 billion in 2016 to HK$2.27 billion in 2020, a reduction of 18.5%[5] - Total net assets rose from HK$10.92 billion in 2016 to HK$12.67 billion in 2020, an increase of 15.9%[5] Market and Economic Conditions - In 2020, the US economy contracted by 3.5% and employment levels decreased by 3% compared to 2019[1] - The EU and UK economies contracted by approximately 7% and 9% respectively, with a severe recession in Q2 followed by a rebound in Q3[1] - The Hong Kong economy contracted by more than 6% in 2020, with an unemployment rate of 6.6% in Q4, the worst in 16 years[18] - Mainland China was the only major economy to achieve positive growth of 2.3% in 2020, with quarterly growth rates of 3.2%, 4.9%, and 6.5% in Q2, Q3, and Q4 respectively[14] Property Development and Sales - The Group's property development project in Foshan, The Grand Riviera, achieved sales of 99%, 100%, and 100% for residential units of Phase 1, 2, and 3 respectively, with total sale proceeds of HK$5.9 billion by the end of 2020[24] - For the year ended December 31, 2020, the Group recorded sales revenue of approximately HK$226.0 million, with 72 residential units and 328 carpark units sold[101] - As of December 31, 2020, a total of 5,171 residential units out of 5,264 units (representing 98%) and 1,651 carpark units out of 4,670 units (representing 35%) were successfully sold, fetching accumulated sale proceeds of approximately HK$5.9 billion[101] Corporate Governance - The Company has confirmed compliance with the Model Code for Securities Transactions by Directors throughout the review period[46] - All directors have confirmed their independence as per the Listing Rules[46] - The company intends to comply with the Corporate Governance Code regarding director re-election[46] - The Audit Committee is satisfied with the company's internal control procedures and financial reporting disclosures[76] Environmental Sustainability - The Group signed the "Energy Saving Charter 2020," promoting energy efficiency and aiming to reduce carbon emissions in Hong Kong[192] - The Chong Hing Finance Centre in Shanghai received LEED gold certification in June 2020, demonstrating the Group's commitment to sustainable building practices[192] - The Group's operations at Chong Hing Bank Centre, Chong Hing Square, and Fairview Court adhered to ISO 14001:2015 standards for environmental management[194] - The Group focused on integrating environmental considerations into business operations, including minimizing pollution and reducing waste[192] Employment and Staff Costs - The Group employed 472 staff as of December 31, 2020, with total employee costs of approximately HK$133.2 million, down from HK$144.0 million in the previous year[126] - The Group's remuneration policy links total rewards, including basic salary and bonuses, to employee performance, ensuring competitive pay levels in the market[126] Risk Management - The Group is committed to implementing effective risk management policies and internal control procedures to identify and manage potential risks[159] - The Audit Committee monitored the external auditors' independence and reviewed the internal control system of the Company[79] - The Group utilizes derivative instruments for hedging purposes to manage interest rate and foreign exchange exposures[119] Shareholder Communication - The Company emphasizes the importance of regular communication with shareholders to ensure informed assessments of its strategy, operations, and financial performance[174] - The Company maintains a website to promote effective communication, where announcements, financial information, and corporate governance practices are posted[181] - The Company encourages shareholders to participate in the annual general meeting and allows for proxy voting[180]
廖创兴企业(00194) - 2020 - 年度财报