Financial Performance - The group's audited consolidated profit attributable to shareholders for the year ended March 31, 2021, was HKD 116,262,504, a decrease of 5% from HKD 120,824,879 for the year ended March 31, 2020[7]. - Basic and diluted earnings per share for the year ended March 31, 2021, were both HKD 0.118, compared to HKD 0.120 for the previous year[7]. - Total revenue for the year ended March 31, 2021, was HKD 1,442,829,063, an increase from HKD 1,282,228,074 in the previous year, representing a growth of approximately 12.5%[163]. - Gross profit for the year was HKD 160,600,989, compared to HKD 114,026,154 in the previous year, indicating a significant increase of about 40.9%[163]. - The company reported a net profit of HKD 116,186,190 for the year, slightly down from HKD 120,786,082 in the previous year, reflecting a decrease of around 3.3%[166]. - Total comprehensive income for the year was HKD 218,290,835, a significant increase from HKD 71,272,927 in the previous year, representing a growth of about 206.5%[166]. Dividend and Shareholder Returns - The board proposed a final dividend of HKD 0.03 per share, consistent with the previous year's final dividend[8]. - The company declared an interim dividend of HKD 0.005 per share, totaling approximately HKD 4,886,490, and proposed a final dividend of HKD 0.03 per share, amounting to about HKD 29,067,000[56]. - The company aims to balance sufficient capital for business development and shareholder returns when determining dividend distribution[135]. - The company paid dividends totaling HKD 34,578,659, down from HKD 45,544,919 in the previous year[185]. Impact of COVID-19 - The watch manufacturing and trading segment was negatively impacted by the COVID-19 pandemic during the review period[9]. - The hotel operations segment experienced a decrease in revenue and profit due to severe restrictions on international travel caused by the pandemic[13]. - The group recognized approximately HKD 101,000 in rental reductions related to COVID-19 in the profit and loss statement for the year ended March 31, 2021[193]. - The group anticipates gradual improvement in the watch manufacturing and trading business as global vaccination rates increase[18]. - The hotel operations segment saw a decline in revenue and profit due to the adverse effects of the COVID-19 pandemic, prompting the group to shift focus towards long-term tenants to improve occupancy rates and stabilize revenue[35]. Property and Investment Activities - The group completed the sale of a residential property in Canada and is undergoing significant renovations on another property to enhance its capital value[14]. - The group is exploring development opportunities in the luxury residential sector in London and low-density townhouses in the Greater Toronto Area[23][24]. - The fair value of the group's investment properties in Hong Kong and China recorded moderate growth during the review period[34]. - The fair value of the group's investment properties reached HKD 3,946,422,950 as of March 31, 2021, with a fair value increase of HKD 89,949,145 recognized in the consolidated income statement for the year[145]. - The group's available-for-sale development properties amounted to HKD 792,036,770 as of March 31, 2021, with significant management estimates involved in determining their recoverable amounts[148]. Financial Position and Borrowings - As of March 31, 2021, the group's total borrowings amounted to approximately HKD 4.092 billion, an increase of about HKD 67 million from the previous year, with a capital-to-debt ratio of 1.24[36]. - The group's cash and bank balances totaled approximately HKD 1.095 billion as of March 31, 2021, compared to HKD 1.090 billion in the previous year[36]. - As of March 31, 2021, approximately HKD 4.898 billion of the group's properties and fixed deposits were pledged as collateral for bank financing[42]. - The company incurred audit fees of HKD 1,950,000 for audit services and HKD 487,000 for non-audit services, totaling HKD 2,437,000 for the year[130]. - New bank loans amounted to HKD 1,169,015,240, an increase from HKD 683,313,430 in the previous year[185]. Corporate Governance - The company has maintained compliance with the corporate governance code as per the listing rules, with some deviations noted in the annual report[84]. - The board of directors consists of nine members, including five executive directors, one non-executive director, and three independent non-executive directors[99]. - The company is committed to maintaining high standards of corporate governance and has complied with the relevant codes[96]. - The company has established a remuneration committee to review and recommend compensation policies for directors and senior management, ensuring a transparent process[112]. - The board has confirmed the independence of all independent non-executive directors based on annual independence confirmation letters received[118]. Audit and Risk Management - The independent auditor's report confirmed that the consolidated financial statements fairly reflect the group's financial position as of March 31, 2021[141]. - The audit was conducted in accordance with Hong Kong auditing standards, ensuring compliance with ethical responsibilities[142]. - The company believes it has sufficient resources and expertise in accounting and financial reporting functions to manage risks effectively[126]. - The board has reviewed the effectiveness of the internal control and risk management systems, ensuring they are adequate and effective[126]. - An independent professional has been appointed to perform internal audit functions, assessing various business and operational risks[127].
NATIONAL ELEC H(00213) - 2021 - 年度财报