Financial Performance - For the fiscal year ended June 30, 2020, the Group's consolidated revenue decreased by approximately HK$20.7 million or 4.7% from HK$441.0 million to HK$420.3 million[16] - The loss attributable to owners of the Company was HK$15.3 million, compared to a profit of HK$43.7 million in the previous year[16] - The decrease in revenue and gross profit was approximately HK$20.7 million and HK$17.0 million respectively[16] - A loss of approximately HK$5.3 million was recognized due to changes in the fair value of investment properties, compared to a gain of approximately HK$37.4 million in the previous fiscal year[16] - The basic loss per share was HK$0.22, compared to basic earnings per share of HK$0.64 in 2019[16] - The Group's revenue from trading fine jewellery decreased by approximately HK$16.2 million or 3.9% from HK$419.2 million to HK$403.0 million for the year ended June 30, 2020[22] - The jewellery segment recorded a loss of approximately HK$20.6 million, down from a profit of approximately HK$5.2 million in the previous year[22] Strategic Initiatives - The Group has enhanced its digital marketing and ecommerce platform to further penetrate the online shopping market, which is one of the fastest-growing channels during the pandemic[22] - The Group plans to strategically strengthen its market position in the UK and USA to benefit from market transformation and increased regional demand[27] - The newly acquired US jewellery companies are expected to enhance the Group's market share in the online retail segment, particularly through efficient drop shipping services[27] - The Group anticipates increased contributions from existing commercial and residential redevelopment projects in the near future, reflecting management's optimism about future growth and potential returns[29] Project Developments - The Group holds 75% interest in a land parcel at No. 232 Wan Chai Road, Hong Kong, which is being redeveloped into a premium grade office and retail composite building with a gross floor area of approximately 86,908 sq. ft[25] - The foundation work for the Wan Chai project was completed in September 2019, and the superstructure work commenced in October 2019, with expected completion in 2021[25] - The Group also owns 90% interests in sites at Nos. 7, 7A, 9, and 9A Cheung Wah Street, with plans to redevelop into a 25-storey residential development with a proposed gross floor area of approximately 29,110 sq. ft[25] - The demolition of the existing building at Cheung Wah Street was completed in July 2019, and foundation works commenced in September 2019, with expected completion around the third quarter of 2022[25] Financial Management - The Group has implemented stringent cost control measures across all offices due to market uncertainties and unprecedented impacts[25] - As of June 30, 2020, the Group's gearing ratio was 0.1344, an increase from 0.0692 in 2019[35] - The cash and cash equivalents decreased to HK$468,521,000 as of June 30, 2020, down from HK$621,380,000 in 2019, primarily due to cash outflows from operating activities, acquisitions, and loan repayments[35] - The Group's bank loans denominated in HK$ amounted to HK$719,289,000 as of June 30, 2020, compared to HK$743,575,000 in 2019[40] - The Group's total borrowings included approximately HK$751,663,000 in bank loans denominated in HK$ and US$ as of June 30, 2020[35] - The Group's financial management strategy includes the use of foreign exchange forward contracts to minimize exchange rate risk[39] Corporate Governance - The company is committed to maintaining high standards of corporate governance practices to maximize shareholder benefits[83] - The Board comprises five Executive Directors, one Non-executive Director, and four Independent Non-executive Directors as of June 30, 2020[106] - 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[116] - The Company has adopted a Board Diversity Policy to ensure a balance of skills, experience, and diversity among Board members, considering factors such as gender, age, and professional experience[183] - The Company has established various communication channels with shareholders to encourage their participation and feedback[181] Management and Leadership - The Group's Executive Director, Dr. Chan Sing Chuk, has over 60 years of experience in the jewellery industry and is responsible for strategic planning and corporate development[65] - Ms. Cheng Siu Yin, the Managing Director and Co-Founder, has over 45 years of experience in the jewellery industry, focusing on daily operations and financial management[65] - The Group's leadership is focused on long-term sustainability and innovation within the jewellery sector[65] - The Group's management team is committed to enhancing sales and marketing strategies to drive growth[65] Employee and Shareholder Engagement - The Group employs approximately 623 employees, primarily located in the PRC, and has granted 12,000,000 share options to certain employees during the year[47] - A total of 132,000,000 share options have been granted since the adoption of the share option scheme, representing 2.65% of the shares in issue as of June 30, 2020[47] - The Company plans to propose a new share option scheme at the upcoming annual general meeting, as the previous scheme expired on July 12, 2020[49] - The Company expresses gratitude to shareholders, customers, and business partners for their support and trust during challenging times[59] Risk Management - The management does not anticipate the need to change the capital structure given the current financial position[41] - The ongoing COVID-19 pandemic may adversely impact the Group's future financial performance, despite some effects already being reflected in the results for the year ended June 30, 2020[45] - The Group's management is cautious about the ongoing impact of the COVID-19 pandemic, expecting a prolonged economic slowdown and a challenging market recovery[27]
恒和集团(00513) - 2020 - 年度财报