Financial Performance - The audited consolidated profit attributable to shareholders for the year ended March 31, 2020, was HKD 120,824,879, a decrease from HKD 221,825,779 for the year ended March 31, 2019[19]. - Basic and diluted earnings per share for the year ended March 31, 2020, were HKD 0.12, down from HKD 0.217 for the previous year[19]. - Total revenue for the year ended March 31, 2020, was HKD 673,878,931, a decrease of 23.5% compared to HKD 881,447,549 in 2019[182]. - Gross profit decreased to HKD 114,026,154, down 29.2% from HKD 160,943,090 in the previous year[182]. - The company reported a net profit of HKD 120,786,082, a decline of 45.6% from HKD 221,825,779 in 2019[184]. - The company experienced a decrease in pre-tax profit, reporting HKD 123,738,236 for 2020, down from HKD 299,910,448 in 2019, reflecting a decline of approximately 58.8%[197]. - Financial expenses increased to HKD 115,362,915 in 2020, up from HKD 90,375,429 in 2019, representing a rise of about 27.7%[197]. - The company recorded a significant loss from joint ventures of HKD 73,452,208 in 2020, compared to a profit of HKD 3,910,784 in 2019[197]. - The fair value loss on investment properties was HKD 138,831,295 for the year, compared to a loss of HKD 415,178,334 in the previous year, indicating a reduction in losses[197]. - The company reported a decrease in inventory write-downs, with a gain of HKD 224,365 in 2020, compared to a loss of HKD 2,299,244 in 2019[197]. Dividends and Reserves - The board proposed a final dividend of HKD 0.03 per share for the year ended March 31, 2020, consistent with the previous year's final dividend[20]. - The company declared an interim dividend of HKD 0.005 per share, totaling HKD 5,053,360, and proposed a final dividend of HKD 0.03 per share, amounting to approximately HKD 29,745,000[65]. - As of March 31, 2020, the company's distributable reserves amounted to HKD 177,257,863, a decrease from HKD 231,295,347 in 2019[70]. - The company aims to balance sufficient capital maintenance for business development and shareholder returns, considering various factors such as actual and expected performance, liquidity, and future expansion plans when determining dividends[148]. Operational Challenges - The watch manufacturing and trading segment experienced a decline in revenue and profit due to ongoing US-China trade tensions and the COVID-19 pandemic[21]. - The hotel operations segment also saw a decrease in revenue and profit due to social unrest in Hong Kong and the COVID-19 outbreak[25]. - The group has taken various remedial measures to manage operational costs effectively due to the negative impacts of social unrest and the COVID-19 outbreak on hotel operations[44]. Investments and Projects - The group completed the sale of two villas in a joint venture project in Hong Kong, with sales mentioned in the interim report[26]. - The group completed the sale of part of the land and property located at 88 Queen Street East, Toronto, Canada for CAD 107,000,000[42]. - The group sold two villas at the luxury residential development project at 45 Dapeng Road, Hong Kong, for a total consideration of HKD 916,000,000[42]. - The group has initiated foundation works for a luxury residential project in Hong Kong, expected to complete in Q1 2021[31]. - The group expects the first phase of the residential development project at 88 Queen Street East, Toronto, to complete transactions in Q4 2020, with proceeds of approximately HKD 430,000,000 to be used for repaying bank loans[43]. - The group is developing a new series of hybrid smartwatches that combine traditional watch aesthetics with digital functionalities[39]. Financial Position - As of March 31, 2020, the total borrowings of the group amounted to approximately HKD 4,025,000,000, an increase of about HKD 149,000,000 from the previous year[45]. - The group's capital-to-debt ratio as of March 31, 2020, was 1.19, compared to 1.35 in 2019, calculated based on long-term borrowings of approximately HKD 2,858,000,000[45]. - As of March 31, 2020, the group's bank deposits and cash totaled approximately HKD 1,090,000,000, an increase from HKD 812,000,000 in 2019[45]. - The group has approximately HKD 4,955,000,000 of properties and fixed deposits pledged as collateral for bank financing as of March 31, 2020[51]. - The company’s total equity increased to HKD 2,403,276,021 from HKD 2,374,345,714, a rise of 1.2%[190]. - The company’s total equity as of March 31, 2020, was HKD 2,401,735,729, a slight increase from HKD 2,374,345,714 in the previous year[192]. Governance and Compliance - The company has complied with the corporate governance code as per the listing rules, with some deviations noted in the annual report[94]. - The company has established three committees to assist the board in fulfilling its responsibilities: Audit and Risk Management Committee, Nomination Committee, and Remuneration Committee[109]. - The company has a robust internal control and risk management system in place, which was reviewed during the year[117]. - 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[102]. - The independent auditor's report was issued on June 24, 2020, by the auditing firm, which is responsible for the audit direction, supervision, and execution[181]. Audit and Financial Reporting - The company is responsible for preparing financial statements that are true and fair according to the Hong Kong Financial Reporting Standards[170]. - The auditor's responsibility includes obtaining reasonable assurance that the financial statements are free from material misstatement due to fraud or error[173]. - The auditor evaluates the appropriateness of accounting policies and the reasonableness of accounting estimates made by management[176]. - The auditor communicates with governance regarding the planned scope and timing of the audit and any significant audit findings[179]. - The total fees for audit services amounted to HKD 1,950,000, while non-audit services totaled HKD 302,000, leading to a combined total of HKD 2,252,000[145].
NATIONAL ELEC H(00213) - 2020 - 年度财报