HKR INT'L(HK:00480)2020-07-16 10:14Awards and Recognition - HKR International Limited received the Employer of Choice Award 2019 and was recognized as the Influential Leader of the Year at the 2019 China Real Estate Fashion Awards[71] - The company achieved significant recognition with the CLP Smart Energy Award 2019 and the Joint Energy Saving Award, highlighting its commitment to sustainability[71] - HKR International Limited was awarded the Best Developer (Hong Kong) at the Asia Property Awards 2019, showcasing its leadership in the real estate sector[71] - The company was recognized as the Shopping Destination of the Year at the 2019 Lifestyle Awards, reflecting its strong market presence[71] - HKR International Limited's Managing Director, Mr. Victor Cha, received the Executive of the Year Award for Real Estate, underscoring his leadership and impact in the industry[71] - The company was honored with the Corporate Green Governance Award for Stakeholder Engagement at the Hong Kong Green Awards 2019, emphasizing its corporate social responsibility efforts[71] - HKR International Limited's shopping center was rated as a Five Star Shopping Center by the Commercial Cultural Tourism Committee of China Real Estate Association, indicating high standards in customer experience[71] - The company achieved the Silver Award for Volunteer Work from the Social Welfare Department, reflecting its commitment to community service[71] - HKR International Limited was recognized as a Good MPF Employer for five consecutive years, demonstrating its dedication to employee welfare[71] - The company received multiple awards at the 2019 China Finance Summit, including Business Leader in New Era, highlighting its influence in the financial sector[71] Company Overview and Strategy - HKR International Limited was established in 1989 after a series of reorganizations, becoming a new listed holding company[82] - The company has diversified interests in real estate development, property management, luxury hotels, and healthcare services across Hong Kong, mainland China, and Asia[82] - The company aims to create a healthy, stylish, and distinctive living experience through innovation and teamwork[78] - The company emphasizes high ethical standards, innovation, and excellence as part of its core values[81] - The Group is focused on expanding its market presence and enhancing its portfolio through strategic investments and developments[82] Financial Performance - The Group's turnover for the financial year ended March 31, 2020, was HK$4,696.5 million, representing an increase of 22.2% compared to HK$3,844.0 million in the previous year[97] - Profit attributable to the Company's shareholders for the year was HK$1,624.6 million, a decrease of 26.4% from HK$2,206.9 million in 2018/2019[97] - Basic earnings per share were HK109.4 cents, down from HK148.6 cents last year[97] - As of March 31, 2020, the net asset value attributable to shareholders was HK$22,067.4 million (HK$14.9 per share), compared to HK$21,300.4 million (HK$14.3 per share) last year[97] - The Board recommended a final dividend of HK7 cents per share, bringing the total dividend for the year to HK12 cents per share, up from HK10 cents per share in 2018/2019[97] Market Impact and Response to COVID-19 - The Group's two key markets, mainland China and Hong Kong, were significantly impacted by the COVID-19 pandemic, with mainland China's GDP dropping by 6.8% in the first quarter[101] - The Group maintained stable operations and cash flow despite external challenges, adjusting business priorities and implementing cost containment measures[101] - The Group continues to focus on high-quality property development and investment, which strengthens its resilience against short-term market shocks[101] - The Group's operations in mainland China were suspended for a period due to the nationwide lockdown, impacting business performance[114] - Hong Kong's economy is expected to remain weak, with rising unemployment affecting consumer confidence[103] - The Group anticipates that the property market in Hong Kong will not experience a free fall, with transaction numbers and prices gradually stabilizing[105] - The Hong Kong Government's relaxation of certain mortgage financing requirements is expected to provide a boost to the sluggish market[105] - The Group remains cautious and will adopt a prudent and flexible approach in Thailand and Japan due to heightened risks from the coronavirus[105] - The Group's management team established a dedicated task force to handle operational crises and ensure efficient coordination of resources[114] Property Development and Projects - HKR International Limited's flagship project, Discovery Bay, has a total gross floor area of approximately 11,000,000 sq. ft., featuring various residential and recreational facilities[84] - HKRI Taikoo Hui in Shanghai has a total gross floor area of approximately 3,500,000 sq. ft., comprising a retail center, office towers, boutique hotels, and event venues[86] - The CDW Building in Tsuen Wan has a total gross floor area of approximately 980,000 sq. ft., including a shopping mall and office tower, well-connected to public transport[84] - La Cresta in Sha Tin offers low-density residential units with a total gross floor area of approximately 135,000 sq. ft., located in a prestigious area[85] - The Group acquired Wellgan Villa in Kowloon Tong for HK$760 million, enhancing its residential portfolio[93] - The Group's project Oasis One in Hangzhou offers approximately 663,000 sq. ft. of residential space, providing around 400 units[91] - The Group launched new residential and commercial projects in Discovery Bay, enhancing community facilities[116] - A new low-density development in Tai Po is scheduled to launch in 2021, in a joint venture with Hysan Development Company Limited[126] Sales and Occupancy Rates - As of March 31, 2020, 87 units of the residential project Poggibonsi were sold, with a total gross floor area of approximately 187,000 square feet[125] - The Group's luxury residential property La Cresta recorded sales of 52 out of 61 units, with revenue recognized from 14 units during the year[125] - The retail podium at 8½ in Tsuen Wan achieved a 100% occupancy rate as of March 31, 2020, while the overall CDW building maintained a 96% average occupancy rate[133] - Wellgan Villa, acquired in August 2019, has an occupancy rate of 81% as of March 31, 2020, generating stable rental income[134] - City One in Jiaxing, Zhejiang Province, has achieved a sales performance of 99.7% for approximately 580 apartment units as of March 31, 2020[138] - Riviera One, adjacent to City One, has nearly sold out all 702 apartments, with revenue from 680 units recognized during the year[138] - HKRI Taikoo Hui achieved a 98% commitment rate for its office towers as of March 31, 2020[146] - The Exchange in Tianjin maintained an average occupancy rate of 88% for its retail mall and 86% for its office towers during the year[149] - In Japan, the Group's five investment properties achieved occupancy rates ranging from 92% to 100% as of March 31, 2020[154] Sustainability and Corporate Social Responsibility - The Group established a formal Environmental, Social and Governance (ESG) Committee in September 2019 to integrate ESG considerations into decision-making processes[169] - The Group identified six areas in the United Nations Sustainable Development Goals relevant to its business to build a sustainable development agenda in the coming years[169] - The Group recorded a 9.6% decrease in electricity consumption and a 25.6% decline in water consumption intensity compared to the previous year[180] - 98% of food waste from the hospitality operation was recycled during the year, showcasing the Group's commitment to sustainability[180] - The Group's environmental policies include integrating eco-friendly concepts in business operations and property development, promoting green technology advancements[176] - The "Sponge City" concept was deployed in some projects in mainland China to manage climate-related risks and reduce urban heat island effects[178] - The Group received the "15 Years Plus Caring Company" Logo and the Silver Award for Volunteer Service, recognizing its commitment to corporate social responsibility[173] - Various community support initiatives were implemented, including engaging underprivileged children and fostering environmental awareness through the "All-in" theme[173] - A new CSR program "HKRI • Design with Love" was launched to refurbish a school for children of migrant workers, enhancing the learning environment[174] Employee Welfare and Health Measures - The Group had a total of 1,719 employees as of March 31, 2020, emphasizing employee well-being and competitive remuneration packages[182] - The "PRI2DE Wellness" program included various events aimed at supporting the physical and mental health of employees[182] - The Group maintained a zero workplace fatality record and implemented measures to mitigate COVID-19 risks, including remote work arrangements and intensive cleaning[183] - The Group implemented enhanced preventive measures against COVID-19, including increased cleaning frequency and compliance with health regulations to protect customers[186] Economic Outlook and Market Strategy - The Group's key markets, including mainland China, Hong Kong, and Thailand, are expected to face severe economic strain, with Hong Kong potentially recording negative growth in 2020[191] - The unemployment rate rise and overall dampened sentiment may affect consumer purchasing power in the short term, but long-term property market demand is expected to remain stable due to housing supply shortages and low interest rates[192] - The macro-economic outlook remains uncertain and not overly positive, prompting the Group to focus on high-quality developments and cautious investment opportunities[194] - The Group's commitment to sustainability extends to addressing supply chain risks in quality, compliance, and environmental areas[189] - The Group's premium properties are expected to benefit from the growing consumer trend towards seeking quality living spaces[193] - The Group will continue to take cost containment measures to maintain healthy liquidity amid uncertain economic conditions[194] - The management emphasizes the importance of effective cost control measures to maintain a healthy liquidity level[196] - The company expresses gratitude to shareholders, customers, and business partners for their trust and support, which drives the company towards greater achievements[195]