Financial Results - The company announced its annual results for the year ended March 31, 2019, on June 26, 2019[8]. - The financial highlights for the year include a significant increase in revenue compared to the previous year, although specific figures are not provided in the extracted content[2]. - The Group's revenue increased by 6.4% to HK$262.3 million, and gross profit rose by 5.4% to HK$117.1 million due to improvements in the hotel business[20]. - Contributions from associates and joint ventures surged to HK$567.5 million, up from HK$167.6 million in the previous year[29]. - Net profit attributable to owners decreased to HK$140.6 million from HK$182.5 million in the last financial year[29]. - Basic earnings per share were HK15 cents, down from HK20 cents[20]. - The total dividend for the year is HK22 cents per share, comprising a first interim dividend of HK10 cents and a second interim dividend of HK12 cents[21]. - The retained profit decreased to HK$2,742,011,000 in 2019 from HK$2,869,097,000 in 2018, representing a decline of approximately 4.4%[132]. Dividends and Shareholder Information - The second interim dividend's ex-dividend date is set for July 16, 2019, with a record date for dividend entitlement on July 19, 2019[8]. - The company will pay the second interim dividend on or about August 30, 2019[8]. - The Board declared a second interim dividend of HK12 cents per share for the year, consistent with the previous year[121]. - The total dividend for the year is HK22 cents per share, consistent with the previous year, which also had a total dividend of HK22 cents per share[124]. - The Register of Members will be closed from July 18 to July 19, 2019, for the purpose of ascertaining shareholders' entitlement to the Second Interim Dividend[124]. - The Company cannot declare or pay any dividend if it is unable to pay its liabilities as they become due or if the realizable value of its assets would be less than its liabilities[131]. Business Strategy and Outlook - The company is focusing on market expansion and new product development as part of its growth strategy[2]. - The management discussion indicates a positive outlook for the upcoming fiscal year, with expectations of continued growth[2]. - The company is actively pursuing potential acquisitions to enhance its market position[2]. - The presale of remaining blocks in Sky Oasis and Grand Oasis will be a focus to secure revenue for the coming years[23]. - The Group plans to expand its business further into Canada and the United Kingdom while being selective in replenishing its portfolio[23]. Corporate Governance - The board of directors includes experienced professionals, which strengthens corporate governance[3]. - The Company emphasizes corporate governance through its various committees, ensuring compliance and oversight[107]. - The Company has a policy for the re-election of directors at the annual general meeting, ensuring compliance with corporate governance codes[144]. - All independent non-executive directors have confirmed their independence in accordance with the listing rules[145]. - The board of directors has received confirmations regarding the independence of all independent non-executive directors[145]. Risks and Challenges - The group faces risks from government cooling measures on property markets, which may pressure effective prices for property sales or rentals[82]. - Competition risks include numerous developers in the property market and pricing pressure from other developers and hotels[83]. - Development projects require government approvals, which may lead to delays and additional costs for compliance with new regulations[84]. - The global economic outlook remains uncertain, with Hong Kong facing adverse impacts from social movements and weak consumer confidence[88]. - The PRC economy is under downward pressure due to sluggish foreign demand, excess production capacity, and the Sino-US trade war[88]. - The Group's financial position may be adversely affected by global economic uncertainties, including Brexit and trade tensions[88]. Investments and Acquisitions - The Group successfully acquired 80% ownership of properties at Nos. 21, 23, 25, 27, 29, and 31 Sheung Heung Road, To Kwa Wan, with a total site area of approximately 9,100 sq. ft., planned for residential redevelopment[41][43]. - The Group acquired a 31.5% interest in a joint venture owning portions of Dabiao International Centre in Guangzhou, with a total floor area of approximately 640,000 sq. ft.[46][49]. - The joint venture in Macau confirmed a significant attributable profit of HK$634.7 million for the year, compared to HK$104.2 million in 2018, driven by the successful delivery of residential units[42]. Financial Position and Capital Management - As of March 31, 2019, the Group held total bank borrowings of HK$1,479.5 million and loan notes of HK$1,547.1 million, resulting in a net gearing ratio of 0.47, up from 0.44 in 2018[71]. - The Group had unused banking facilities of HK$352.0 million available for property construction and working capital[72]. - A total of HK$758.4 million in bank borrowings was drawn down during the year to finance redevelopment projects and working capital[72]. - The Group's total equity and fund investments amounted to HK$191.9 million, with 64% in unlisted securities and funds[68]. Management and Personnel - The total number of employees as of March 31, 2019, was 318, down from 329 in 2018[80]. - The remuneration policy for Directors and top management is aligned with market conditions and includes discretionary bonuses and other benefits[200]. - The Company will review its remuneration policy periodically to ensure competitiveness and alignment with performance[200]. Share Options and Director Interests - The total number of shares available for issuance under the Share Option Scheme as of March 31, 2019, was 93,771,273, representing approximately 9.69% of the existing total number of shares in issue[157]. - The maximum number of shares that may be issued upon exercise of share options in any 12-month period shall not exceed 1% of the total number of shares in issue unless shareholder approval is obtained[159]. - The Company granted a total of 27,020,000 share options with an exercise price of HK$2.57 per share on April 4, 2018[164]. - Dr. Charles Chan holds 191,588,814 shares, representing 19.64% of the company's total shares[185]. - The largest customer accounted for approximately 18% of the Group's total turnover, while the five largest customers contributed about 46% of the total turnover[196].
德祥地产(00199) - 2019 - 年度财报