Financial Performance - For the fiscal year ending March 31, 2021, the company's consolidated revenue was HKD 1,278 million, an increase from HKD 639 million in the previous year[20] - The net profit attributable to shareholders was HKD 78 million, compared to a net loss of HKD 45 million in the previous year[20] - Excluding fair value losses on investment properties, the adjusted net profit attributable to shareholders was HKD 91 million, up from HKD 38 million in the previous year[20] - Basic earnings per share for the year were HKD 0.14, compared to a loss per share of HKD 0.08 in the previous year[20] - As of March 31, 2021, total equity attributable to shareholders was HKD 8,234 million, up from HKD 7,722 million the previous year[20] - The net asset value per share increased to HKD 14.93 from HKD 14.01 year-over-year[20] - The increase in equity was primarily due to the net profit attributable to shareholders and foreign exchange gains from the appreciation of the Renminbi against the Hong Kong dollar[20] - The group’s profit and financial position as of March 31, 2021, are detailed in the financial statements on pages 51 to 159[131] - The group's revenue increased by 100% from HKD 639 million to HKD 1,278 million, with 74.9% from property sales, 22.8% from property leasing, and 2.3% from property and parking management[136] - As of March 31, 2021, the total interest-bearing debt was approximately HKD 6,477 million, with 25% classified as current liabilities[137] - The total cash and bank balances amounted to approximately HKD 2,000 million, including restricted bank deposits of HKD 114 million[137] - The debt-to-equity ratio was calculated at 36%, compared to 37% in the previous year[138] Dividends and Shareholder Matters - The board proposed a final dividend of HKD 0.05 per share, consistent with the previous year's dividend[21] - The annual general meeting is scheduled for August 26, 2021, to approve the proposed dividend and other matters[22] - The company reported a proposed final dividend of HKD 27,568,000 for the year ending March 31, 2021, subject to shareholder approval[158] - The company's available reserves for distribution as of March 31, 2021, amounted to HKD 708,878,000[158] - The company's board remuneration is subject to shareholder approval at the annual general meeting[166] Operational Highlights - The company plans to continue expanding its property sales and related profit contributions in the upcoming fiscal year[20] - Han Guo Group recorded revenue of HKD 1,276 million for the fiscal year 2020/21, a significant increase from HKD 638 million in the previous year, driven by higher sales from development projects[26] - Sales from the residential project Yao Yao Green Oasis contributed HKD 957 million in revenue, up from HKD 193 million in the previous year, reflecting strong demand[33] - The average occupancy rate for the commercial/office building in Guangzhou was 74% during the year, improving to 96% by March 31, 2021, compared to 86% a year earlier[27] - The average occupancy rate for the retail portion of the Han Guo City Commercial Center in Shenzhen increased to 78%, up from 64% in the previous year, while office units rented out increased to 37% from 24%[37] - The total floor area of the Yao Yao Green Oasis project is approximately 273,000 square meters, with the third phase completed in December 2020, providing around 550 units[33] - The company plans to start the presale of a redevelopment project in Dongguan by the end of 2021, with a total floor area of approximately 58,000 square meters[56] Market and Economic Outlook - The company expects the real estate market to continue growing in the coming years due to strong demand and government efforts to maintain stability[66] - The local GDP grew by 7.9% year-on-year in the first quarter of 2021, indicating a recovery in the economy[66] - The company remains cautious about uncertainties related to the pandemic and geopolitical instability affecting economic recovery[64] - The residential market remains robust, supported by pent-up demand and a low-interest-rate environment[66] - The company acknowledges the impact of COVID-19 restrictions on the hotel, tourism, and retail sectors in Hong Kong[66] Corporate Governance - The company has maintained high standards of corporate governance and continuously reviews and improves its governance practices[86] - The board of directors is responsible for the overall development strategy and monitors the financial performance and internal controls of the group[90] - The company held two board meetings during the fiscal year ending March 31, 2021, which is below the recommended frequency of four meetings per year[91] - The independent non-executive directors confirmed their independence in accordance with the listing rules[90] - The company has a diverse board with members having extensive experience in investment, finance, and real estate[88] - The management team has over 30 years of experience in accounting and finance, ensuring strong financial oversight[82] - The company is committed to maintaining transparency and providing adequate information to its directors for informed decision-making[90] - The board includes members with significant experience in multinational business management and financial advisory[79] - The company has adopted a standard code for securities trading by directors, ensuring compliance with regulations[87] - The board's composition includes both executive and independent directors, promoting a balance of power and independent judgment[90] - The company has established a clear division of responsibilities between the Chairman and the CEO, ensuring effective board operations and smooth business management[94] - The company encourages continuous professional development for all directors, with training records maintained for each director's participation in training sessions[98] - The Audit Committee held two meetings during the review year, focusing on financial reporting, internal controls, and risk management systems[106] - The company’s remuneration committee reviewed the current remuneration of all directors during the year, ensuring compliance with governance standards[102] - The board of directors is collectively responsible for reviewing and updating corporate governance policies and practices[101] - The company’s governance practices include ensuring that one-third of the directors retire at each annual general meeting, in compliance with its articles of association[96] - The company has not adhered to certain provisions of the corporate governance code regarding the re-election of directors, citing the importance of leadership continuity[96] - The company’s independent auditors attended all Audit Committee meetings, ensuring transparency and accountability in financial reporting[106] - The company’s governance report indicates that all directors participated in at least two board meetings during the fiscal year[109] - The company’s governance framework includes a commitment to compliance with legal and regulatory requirements, as well as adherence to the corporate governance code[101] Risk Management and Financing - The group faces risks related to the property market in mainland China, including policy changes and currency fluctuations[145] - The group maintains a prudent financing policy, with surplus funds primarily held in cash deposits[140] - The company is operating well above the safety line amid the government's tightening of real estate financing activities[64] - The company has arranged appropriate directors' and senior management liability insurance for its directors and senior personnel during the year[200] Staffing and Resources - The group employed approximately 380 staff as of March 31, 2021, an increase from 340 the previous year[143] - The group has taken measures to save energy consumption and promote the recycling of office supplies[136] Transactions and Agreements - The company completed the sale of a 35% stake in an overseas holding company for RMB 35 million, realizing a gain of approximately HKD 36.4 million during the review year[56] - The total contract amount for the foundation construction project in Hong Kong is HKD 210,000,000, which was approved by independent shareholders[182] - The fixed fee for the consultancy agreement with Shun Cheung Data Center Development Limited is HKD 16,200,000, which has been fully paid[184] - The total development cost paid to Jianye Construction for the data center project as of March 31, 2021, is HKD 39,235,000[187] - A loan agreement for HKD 1,500,000,000 was established for refinancing existing loans and general corporate funding needs, with a term of 48 months[188] - A domestic loan agreement for RMB 450,000,000 was signed for refinancing and general operating funds, with a repayment period of five years[191] - The company has entered into a loan agreement for a maximum principal amount of HKD 100,000,000 with a Hong Kong bank, intended for refinancing existing inter-company loans[192] - A loan agreement for HKD 800,000,000 has been established with a syndicate, with a term of 48 months, aimed at refinancing an outstanding balance of HKD 500,000,000 and meeting general corporate funding needs[194] - If the chairman or his family members cease to maintain control or ownership of at least 50% of the company's equity, it will constitute a breach of the HKD 800,000,000 loan agreement[195] - At least 25% of the company's issued shares are held by the public as of the last practicable date before the publication of the annual report[196] - The chairman is considered to have interests in companies engaged in property investment, which may compete with the group[197] - The company did not purchase, sell, or redeem any of its listed securities during the year ending March 31, 2021[157] - There was no change in the company's share capital during the year[156] - The company’s largest customer group accounted for less than 30% of total sales, indicating a diversified customer base[159] - The company has not disclosed any significant transactions involving directors or their associates that would impact the group’s business[167] - The company’s financial performance summary for the past five fiscal years is available on page 160 of the annual report[155]
建业实业(00216) - 2021 - 年度财报