Financial Performance - The consolidated profit after taxation attributable to shareholders for the year ended December 31, 2019, was HK$172,513,000, a decrease of approximately 57.68% compared to HK$407,681,000 in 2018[19]. - Basic earnings per share for 2019 amounted to 8.59 HK cents, down from 20.45 HK cents in 2018[19]. - The Group reported an operating profit before taxation of HK$357,195,000 for 2019, a slight decrease of approximately 2.46% from HK$366,207,000 in 2018[21][23]. - Total profit from property development and investment in Shanghai and Macau was HK$342,666,000, compared to HK$570,344,000 in 2018[27]. - Dividend receipts from long-term equity investments decreased to HK$27,134,000 in 2019, down from HK$90,393,000 in 2018[20]. - An interim dividend of 11 HK cents per share was declared for the year ended December 31, 2019, down from 18 HK cents per share in 2018[22][24]. Property Development and Investment - The property development and trading segment contributed a segment profit of HK$189,344,000, significantly up from HK$78,985,000 in 2018[25]. - The property investment segment generated a segment profit of HK$153,322,000, down from HK$491,359,000 in 2018, primarily due to lower unrealized gains on fair value changes[25]. - The property development and sales segment generated total revenue of HK$866,837,000, accounting for approximately 92.41% of the Group's total operating revenue for the year 2019[30]. - The property development and sales segment contributed a profit of HK$189,344,000, an increase from HK$78,985,000 in 2018, primarily due to property sales in Shanghai and Macau[29]. - The total profit contribution from property investment was HK$153,322,000, down from HK$491,359,000 in 2018, due to changes in rental income and fair value adjustments[29]. Operational Highlights - The Group's operations are primarily based in Mainland China, particularly Shanghai[25]. - Other business segments reported losses during the year under review, except for the securities trading business in Hong Kong, which reported an insignificant profit[26]. - The Group recorded an unrealized gain on fair value changes of investment properties in Shanghai amounting to HK$17,226,000 at year-end[30]. - Rental income and management fees from the commercial and industrial property portfolio in Pudong generated steady recurrent revenue of HK$107,000,000, representing approximately 11.41% of the Group's total operating revenue for the year[36]. Financial Position - The Group's total assets decreased by approximately 9.46% to HK$19,852,038,000 as of December 31, 2019, compared to HK$21,926,186,000 in 2018[72]. - Cash and cash equivalents decreased by approximately 14.40% to HK$3,654,035,000, down from HK$4,268,775,000 in 2018[73]. - The Group's equity attributable to owners decreased by approximately 5.89% to HK$12,259,425,000, with equity per share at HK$6.22, a slight decrease of approximately 0.64%[72]. - Borrowings amounted to HK$1,293,510,000, representing approximately 10.55% of equity attributable to owners, down from 10.96% in 2018[76]. - Current ratio improved to 2.04 times from 1.94 times in 2018, while gearing ratio decreased to 59.38% from 66.35%[77]. Corporate Governance - The Group's corporate governance practices comply with the Corporate Governance Code, with a focus on transparency and accountability[98]. - The Board consists of seven members, including four executive Directors and three independent non-executive Directors[102]. - The Company has not established a nomination committee as required by the CG Code, emphasizing the importance of executive Directors' participation in the nomination process[104]. - The Board has adopted a diversity policy, ensuring a mix of skills, experience, and perspectives, with one female member out of seven[103]. - The Audit Committee conducted three meetings in 2019 to review interim and annual financial statements, evaluating risk management and internal control systems[119]. Future Outlook - The impact of COVID-19 and trade disputes on the Group's operations is still being assessed, with potential negative effects on the property leasing and sales markets[87]. - The Group remains optimistic about the long-term demand for high-end residential properties catering to high-income middle class and high net-worth individuals in Mainland China[88]. - Tomson Riviera and One Penha Hill are anticipated to be the principal sources of profit for the Group in 2020[88]. - The Group aims to resume construction on the first phase of the Jinqiao-Zhangjiang project in Pudong, Shanghai in 2020, which is expected to be a significant component of its property development and investment segment[88]. Employee and Director Information - The Group's total emoluments paid to staff and directors during the year amounted to HK$77,849,000[93]. - Madam Hsu Feng has been an executive director since January 1990 and was appointed Managing Director in December 2001[172]. - Mr. Albert Tong has been an executive director since December 2001 and held various roles in business development and corporate management[176]. - Mr. Yeung Kam Hoi has been an executive director since August 2010 and serves as Chief Deputy General Manager[180]. Shareholder Engagement - The Company aims to provide stable and sustainable returns to shareholders through its dividend policy, with the payout ratio determined at the Board's discretion[164]. - The Company has established a website to enhance communication with shareholders, providing timely updates and corporate information[158]. - Shareholders holding at least 5% of the total paid-up capital can request the Board to convene an Extraordinary General Meeting (EGM)[159].
汤臣集团(00258) - 2019 - 年度财报