Financial Performance - The Group's consolidated revenue increased by approximately HK$49.1 million or 12.5%, from HK$391.9 million in the previous year to HK$441.0 million[20] - Profit attributable to owners of the Company was HK$43.7 million, a significant decrease from HK$354.8 million in the previous year[20] - The decrease in profit was primarily due to the absence of a one-off gain from the disposal of a 50% joint venture in a shopping mall in Shanghai, which amounted to approximately HK$363.2 million[20] - The profit sharing from the joint venture recorded in 2018 was approximately HK$68.9 million, which was not present in the current year[20] - Basic earnings per share decreased to HK$0.64 cent from HK$5.19 cent in the previous year[20] Revenue Segments - The Group's jewellery revenue increased by approximately HK$32.9 million or 8.5%, from HK$386.3 million to HK$419.2 million[25] - The segment result decreased from HK$7.7 million to approximately HK$5.2 million for the year ended 30 June 2019[25] - The revenue increase is attributed to the expansion of the jewellery business in the UK initiated in November 2018[25] - The prolonged US-China trade tensions are expected to significantly impact the luxury market, particularly with a drop in jewellery sales in the USA due to tariffs imposed in September 2019[35] - The jewellery business in the UK is expected to deliver better results due to higher efficiency and cost savings from combined operations[35] Investments and Acquisitions - The Group has acquired 12 floors of the Yuen Long Properties for HK$129 million, with a gross floor area of approximately 14,508 sq. ft.[30] - The redevelopment of the Wan Chai Property is expected to be completed in 2021, with a total gross floor area of approximately 86,970 sq. ft.[30] - The Group invested HK$18 million into the Metropolitan Opportunity Fund SPC, focusing on repositioning underperforming assets[32] - The expected completion date for the redevelopment of the Cheung Wah Property is around the second quarter of 2022[32] - The Group acquired 90% interests in Equal Glory Limited for approximately HK$159,912,000, making Equal Glory a 90% owned subsidiary[47] Financial Position - As of June 30, 2019, the Group's gearing ratio was 0.0692, indicating a low level of debt relative to equity[41] - Cash and cash equivalents decreased to HK$621,380,000 as of June 30, 2019, down from HK$1,128,664,000 in 2018, primarily due to property acquisitions and loan repayments[41] - The Group's investment properties and other assets had a net carrying value of HK$1,823,879,000 as of June 30, 2019, up from HK$1,320,921,000 in 2018[41] - The Group's bank loans amounted to HK$743,575,000 as of June 30, 2019, an increase from HK$611,000,000 in 2018[41] - The Group's total borrowings are denominated in Hong Kong Dollar and Renminbi, with interest rates linked to the Hong Kong Interbank Offered Rate and the People's Bank of China's benchmark lending rate[43] Corporate Governance - The company has complied with the Corporate Governance Code during the financial year ended 30 June 2019, with deviations from provisions A.2.1, A.4.1, A.6.7, and C.2.5 explained in subsequent paragraphs[99] - The Board held six meetings during the financial year ended 30 June 2019, with full attendance from executive directors[105] - The company has arranged Directors and Officers Liability Insurance for its Directors and Officers[109] - The Company is committed to maintaining high standards of corporate governance practices to maximize shareholder benefits[98] - The Company has established a Nomination Committee responsible for formulating nomination policy and making recommendations to the Board on the nomination and appointment of Directors[126] Risk Management - The Group employs conservative strategies for financial risk management, keeping market risk to a minimum, with all transactions primarily denominated in US Dollar, Hong Kong Dollar, and Renminbi[69] - The Group entered into foreign exchange forward contracts to minimize exchange rate risk due to fluctuations in the British Pound[69] - The Group's risk management and internal control systems have been evaluated on an ongoing basis, with no significant weaknesses identified[158] - The Audit Committee is responsible for overseeing the financial reporting system, risk management, and internal control systems[164] - The effectiveness of the Group's risk management and internal control systems is regularly reviewed by the Audit Committee[164] Shareholder Communication - The Company maintains a corporate website to publish financial reports and shareholder information, enhancing communication with shareholders[189] - The proposed final dividend will be paid on or about January 2, 2020, subject to shareholder approval at the AGM[73] - All resolutions at general meetings will be conducted by poll, except for procedural matters allowed by the Chairman[196] - The Chairman of the AGM will explain the voting procedures at the start of the meeting, with results published the following business day[200] - The Company ensures that all Directors receive adequate and reliable information in a timely manner[112]
恒和集团(00513) - 2019 - 年度财报