Financial Performance - The audited consolidated profit attributable to owners for the year ended March 31, 2019, was HKD 221,825,779, compared to HKD 218,708,930 for the year ended March 31, 2018, representing a slight increase of 0.97%[8] - Basic and diluted earnings per share for the year ended March 31, 2019, were both HKD 0.217, compared to HKD 0.215 and HKD 0.213 for the year ended March 31, 2018, indicating a year-on-year increase of 0.93%[8] - The company's revenue for the year ended March 31, 2019, was HKD 881,447,549, a decrease of 37.2% compared to HKD 1,405,711,077 in 2018[173] - Gross profit for the year was HKD 160,943,090, down from HKD 174,694,714 in the previous year, reflecting a decline of 7.8%[173] - The company reported a net profit of HKD 221,825,779, slightly up from HKD 218,708,930 in 2018, indicating a growth of 1.0%[176] - The total comprehensive income for the year was HKD 242,274,451, compared to HKD 200,992,867 in the previous year, reflecting an increase of approximately 20.5%[183] Dividends - The board proposed a final dividend of HKD 0.03 per share and a special cash dividend of HKD 0.01 per share, consistent with the previous year's dividends[9] - The company declared an interim dividend of HKD 0.005 per share, totaling HKD 5,101,510 for the year ended March 31, 2019[55] - The proposed final dividend is HKD 0.03 per share and a special cash dividend of HKD 0.01 per share, amounting to approximately HKD 40,526,000[55] - The company aims to balance sufficient capital for business development and shareholder returns, considering actual and expected performance, liquidity, and future expansion plans when determining dividends[140] - The company reported a decrease in dividends paid, totaling HKD (45,770,629) for the year, slightly lower than HKD (46,102,109) in the previous year[183] Revenue and Profit Segments - The watch manufacturing and trading segment experienced a decline in revenue and profit due to the adverse effects of the US-China trade war[10] - The hotel operations segment continued to grow, with improved revenue and profit performance compared to the previous year, driven by enhanced brand recognition[14] - The group anticipates continued weak demand for quartz watches and accessories, expecting another challenging year due to the ongoing trade war[19] - The group continues to improve hotel operations to enhance room rates and occupancy, resulting in satisfactory growth in revenue and profit from the hotel business[33] Investments and Assets - The group entered into a sale agreement for the second phase of a mixed-use development project in Toronto, Canada, for CAD 107,000,000, with a net book value of approximately CAD 56,700,000 as of February 28, 2019[31] - The fair value of the group's investment properties reached HKD 3,816,951,052, with an increase of HKD 415,178,334 recognized in the consolidated income statement for the year[151] - The group's available-for-sale development properties amounted to HKD 881,054,373 as of March 31, 2019, with significant management estimates involved in determining their recoverable amounts[157] - The valuation of available-for-sale development properties is based on the lower of cost and net realizable value, which is estimated by deducting estimated completion costs and selling costs from actual or estimated selling prices[157] Financial Position and Borrowings - The total borrowings of the group as of March 31, 2019, were approximately HKD 3,876 million, an increase of about HKD 423 million from HKD 3,453 million in 2018[34] - The capital-to-debt ratio as of March 31, 2019, was 1.35, up from 1.20 in 2018, calculated based on long-term borrowings of approximately HKD 3,202 million and shareholders' equity of approximately HKD 2,374 million[34] - The group had cash and bank balances totaling approximately HKD 812 million as of March 31, 2019, down from HKD 865 million in 2018[34] - The company’s long-term bank loans rose to HKD 3,201,974,212 from HKD 2,679,999,609, an increase of 19.4%[181] Corporate Governance - The company has complied with the corporate governance code as per the listing rules, with some deviations noted in the annual report[85] - The board of directors consists of nine members, including five executive directors, one non-executive director, and three independent non-executive directors[101] - The attendance rate for board meetings was 100% for all directors, with four meetings held during the year[105] - The company has established a set of standards for securities trading by directors, ensuring compliance with the relevant regulations[99] Audit and Compliance - The independent auditor's report confirms that the consolidated financial statements fairly reflect the group's financial position as of March 31, 2019, in accordance with Hong Kong Financial Reporting Standards[147] - The audit report for the year was conducted by Guo Wei CPA Limited, which will be proposed for reappointment at the upcoming annual general meeting[93] - The independent auditor's report emphasizes the importance of professional judgment and maintaining professional skepticism throughout the audit process[165] - The auditor identified and assessed risks of material misstatement due to fraud or error, designing audit procedures to address these risks[165] Market and Strategic Outlook - The group is exploring strategies to diversify its product offerings, including the development of other electronic products, in response to the changing global trade environment[26] - A new multifunctional sports watch with Bluetooth connectivity and various tracking features is being developed to enhance the product lineup[28] - The group is carefully monitoring the market to determine the optimal timing for launching sales of its luxury residential development project in Hong Kong[21]
NATIONAL ELEC H(00213) - 2019 - 年度财报