Financial Performance - For the fiscal year ended June 30, 2021, the Group's consolidated revenue increased by approximately HK$116.0 million or 27.6% from HK$420.3 million to HK$536.3 million[19] - Profit attributable to owners of the Company was HK$19.9 million, a turnaround from a loss of HK$15.3 million in the previous year[19] - Basic earnings per share for the year was HK2.91 cents, compared to a basic loss per share of HK2.25 cents in the previous year[19] - The Group recognized a profit of approximately HK$77.7 million from the change in fair value of investment properties, partially offset by an impairment loss on mining rights of HK$59.9 million[19] - The Group's cost management measures and government subsidies related to COVID-19 contributed to improved financial performance[26] Jewellery Division Performance - The jewellery division's revenue increased by approximately HK$123.4 million or 30.6% to HK$526.4 million for the year ended June 30, 2021[26] - The Group successfully reversed a loss of approximately HK$20.6 million in the previous year to a profit of approximately HK$34.2 million in the jewellery division[26] - The jewellery segment's revenue increased by approximately HK$123.4 million or 30.6%, from HK$403.0 million to HK$526.4 million for the year ended June 30, 2021[27] - The jewellery segment turned around from a loss of approximately HK$20.6 million to a profit of approximately HK$34.2 million for the year ended June 30, 2021[27] Market and Sales Strategy - The Group enhanced collaboration with e-retailers to boost online sales and marketing, adapting to changing consumer behavior due to COVID-19[26] - The global economic recovery in 2021 led to positive growth in jewellery retail sales in the US and Europe[26] - The Group's market expansion efforts included leveraging online and digital solutions to reach customers effectively[26] - The Group's proactive adaptation to customer behavior included a pivot towards online sales and marketing, enhancing its presence on e-commerce platforms[27] Real Estate and Property Development - The redevelopment of the Wan Chai Road Property is expected to be completed by the end of 2021, with a gross floor area of approximately 86,970 sq. ft.[31] - The Cheung Wah Street Property redevelopment is progressing well, with an expected completion date in late 2022 and a proposed gross floor area of approximately 29,147 sq. ft.[33] - The Group's Glassview Commercial Building continues to generate stable income despite the pandemic, with all units fully let[33] - In May 2021, the Group acquired properties at Hart Avenue, Kowloon, with a gross floor area of approximately 5,100 sq. ft., which are fully let and generating stable rental income[33] Financial Position and Capital Management - As of June 30, 2021, the Group's gearing ratio was 0.1996, an increase from 0.1344 in 2020[47] - The Group's cash and cash equivalents decreased to HK$340,207,000 from HK$468,521,000 in 2020[48] - Other borrowings related to amounts due to joint ventures and related companies increased to approximately HK$114,188,000 from HK$84,347,000 in 2020[47] - Bank and other loans amounted to approximately HK$836,210,000, up from HK$751,663,000 in 2020[47] - The decrease in cash was primarily due to the acquisition of a property at Hart Avenue, Kowloon, and construction costs for projects at Cheung Wah Street and Wan Chai Road[48] Corporate Governance and Management - The Company has complied with the corporate governance code effective from April 1, 2012, with some deviations noted in specific clauses[120] - The board of directors believes that good corporate governance can maximize shareholder benefits[121] - The Company emphasizes the importance of Board diversity, considering factors such as gender, age, cultural background, and professional experience in its composition[155] - The Company has established a formal and transparent procedure for the appointment of new directors, enhancing governance practices[148] - The Company ensures that all Directors are provided with timely and adequate information to make informed decisions[171] Audit and Risk Management - The Audit Committee is responsible for monitoring the financial reporting system, risk management, and internal control systems, as well as reviewing annual reports and financial statements[198] - The Audit Committee ensures fair and independent investigations of reported concerns[199] - The Board confirmed that there was no significant weakness in the risk management and internal control systems, and areas for improvement have been identified with appropriate measures taken[192] - Arrangements are in place for employees to raise concerns about financial reporting improprieties[199] Employee and Community Engagement - The Group employs approximately 567 employees, with the majority located in China, and has adopted share option schemes to attract and retain qualified personnel[56] - The Group is actively involved in community services and has leadership roles in various associations, enhancing its corporate social responsibility profile[102] - The Group's involvement in various community and charitable organizations demonstrates its commitment to social impact and community engagement[102]
恒和集团(00513) - 2021 - 年度财报