Business Strategy and Performance - The Group's business strategy focuses on diversifying into different sectors to strengthen and expand revenue streams[12] - The Group aims to maintain a prudent approach while focusing on core business and seizing emerging opportunities for better shareholder results[19] - The Group is committed to generating sustainable returns and enhancing shareholder value[12] - The Group's strategic focus remains on property development and related services, reallocating resources to enlarge its business scale in these sectors[22] - The Group's strategy includes diversifying business models and expanding revenue streams to improve overall performance[55] - The Group is optimistic about the properties development industry in China and aims to capture potential opportunities in the market[41] Financial Performance - For the year ended 31 March 2021, the Group recorded a revenue of approximately HK$29,542,000, representing a decrease of approximately 58% compared to HK$71,177,000 for the year ended 31 March 2020[24] - The Group recorded a loss from continuing operations of approximately HK$15,428,000 for the year ended 31 March 2021, a decrease of approximately 38% compared to HK$24,694,000 for the year ended 31 March 2020[24] - Revenue from properties development for the year ended 31 March 2021 was derived from the sale of remaining completed properties of the Xiguan Project, achieving total contracted sales of approximately HK$23,018,000, which is a decrease from HK$65,873,000 for the year ended 31 March 2020[31] - Revenue from properties investment decreased by approximately 14% to HK$919,000 for the year ended 31 March 2021, compared to HK$1,072,000 for the previous year[45] - The Group recorded a segment loss of approximately HK$4,639,000 for the year ended 31 March 2021, compared to a segment loss of approximately HK$1,656,000 for the year ended 31 March 2020[45] - The Group's finance costs increased by approximately 11% to HK$3,427,000 for the year ended 31 March 2021, compared to HK$3,077,000 for the year ended 31 March 2020[24] Project Developments - Three property development projects in northern PRC are expected to reinforce the Group's premium market positioning[14] - The Xiguan Project, completed in the year ended 31 March 2019, includes 775 residential units and 30 commercial units, with a total floor area of 46,242.6 sq.m.[30] - Bagua Town Project I is expected to be completed and sold in the third and last quarter of 2021, comprising 3 main buildings and about 38 commercial units[32] - Bagua Town Project II is currently in the preliminary stage of preparation ahead of construction, with a floor area of approximately 9,188.2 sq.m.[37] - The Bagua Town Project I and II are expected to enhance future business performance and generate continuous growth for the Group[38] Renewable Energy - The renewable energy business, including two hydroelectric power stations, provides stable income and supports environmental sustainability[18] - The Group's renewable energy investments are characterized by long lifespans and relatively low operational costs[18] - Revenue from the hydroelectric power business increased to approximately HK$5,144,000 for the year ended 31 March 2021, up from approximately HK$3,916,000 for the previous year, with a segment profit of approximately HK$1,232,000[49] - The Group believes that continued investments in renewable energy will provide sustainable revenue in the long run[54] Cost Management - The Group implemented cost control measures and optimized business management processes to enhance performance during the pandemic[13] - Administrative expenses decreased from approximately HK$41,499,000 for the year ended 31 March 2020 to approximately HK$18,152,000 for the year ended 31 March 2021, mainly due to cost-saving measures[24] - The total employee costs from continuing operations for the year ended March 31, 2021, were approximately HK$1,612,000, down from HK$5,761,000 in 2020[71] Corporate Governance - The Company has established a robust governance structure with various committees to oversee its operations[99] - The Company has adopted all code provisions in the Corporate Governance Code as its own practices, ensuring compliance during the year ended 31 March 2021[108] - The Board consists of three executive Directors and three independent non-executive Directors, with more than one-third being independent, facilitating independent decision-making[117] - The Company is committed to maintaining high standards of corporate governance to safeguard shareholder interests and enhance performance[107] - The Board meets regularly, approximately quarterly, to review the Group's financial and operational performance[140] Shareholder Communication - The Company emphasizes timely communication with shareholders through various channels, including interim and annual reports, and encourages attendance at general meetings[187] - The Board is committed to enhancing investor relations and maintains open dialogue with institutional investors and analysts to keep them informed of the Group's developments[189] - Shareholders holding at least one-tenth of the paid-up capital can requisition a special general meeting, while those holding one-twentieth can propose items for discussion[193][194] Dividend Policy - The Board does not recommend the payment of a final dividend for the year ended March 31, 2021[83] - The dividend policy aims to balance shareholders' interests with prudent capital management, allowing for special dividends in addition to interim and annual dividends, subject to Board discretion[183] - The Board will review the dividend policy periodically to ensure it remains aligned with the Group's financial performance and capital requirements[183]
中国华星(00485) - 2021 - 年度财报