Financial Performance - For the year ended March 31, 2021, the Group's loss attributable to owners was approximately HK$180,793,000, a decrease from HK$206,192,000 in the previous year, representing a reduction of about 12.7%[10] - The gross profit margin for the year was approximately 95.3%, compared to 94.8% in 2020[10] - Consolidated revenue for the year was approximately HK$80,253,000, reflecting a slight decrease of approximately 0.5% from HK$80,682,000 in the previous year[18] - The basic and diluted loss per share for the year was HK19.41 cents, a significant improvement from HK70.68 cents in 2020[18] - The decrease in loss was primarily due to a reduction in fair value losses of investment properties and a net gain on changes in fair value of financial assets[17] - Loss before taxation for the year was approximately HK$190,743,000, an improvement from a loss of approximately HK$209,657,000 in the previous year[69] - The Group recorded a segment loss in loan financing of approximately HK$35,799,000 for the year, compared to a profit of approximately HK$6,060,000 in 2020[61] - The total carrying amount of the Group's properties in Hong Kong was approximately HK$775,500,000 as of March 31, 2021, slightly down from HK$777,100,000 in 2020[40] - The Group's total bank borrowings as at 31 March 2021 were approximately HK$1,514,933,000, compared to approximately HK$1,431,740,000 in 2020[80] - The Group's current ratio as at 31 March 2021 was approximately 5.5, down from approximately 5.9 in 2020[80] Property Development and Investment - The Group successfully acquired properties at Nos. 93 and 95 Catchick Street and was the successful bidder for Fung Wah Factorial Building, indicating a focus on expanding its industrial and non-residential sectors[11] - The Group owns the site at Matheson Street, with a total area of approximately 2,857 square feet, expected to provide a gross floor area of approximately 42,778 square feet upon completion in February 2022[25] - The Wing Cheong Factory Building, with a site area of approximately 5,483 square feet, is planned for redevelopment into a modern industrial building, expected to complete in December 2023[26] - The Group owns approximately 93.33% of the Fung Wah Factorial Building and plans to redevelop it into a high-rise modern industrial building[34] - The Group's core businesses include property development and investment, with a focus on maximizing the usage and potential of its properties[23] - The Group's capital expenditure for the year ended March 31, 2021, was approximately HK$295,000 for property, plant, and equipment, and approximately HK$4,873,000 for investment properties[115] Rental and Management Income - The Group's total rental and management fee income for the year was approximately HK$61,309,000, representing an increase of approximately 0.3% compared to HK$61,142,000 in 2020[39] - In Hong Kong, the Group recorded property rental income of approximately HK$36,160,000, a decrease of approximately 9.5% from HK$39,945,000 in 2020[40] - In the PRC, property rental income increased by approximately 28.1% to HK$6,420,000, and management fee income increased by approximately 19.2% to HK$16,033,000 compared to 2020[42] - The Group's rental income from properties in China increased by approximately 28.1% to HK$6,420,000, and management fee income rose by approximately 19.2% to HK$16,033,000[46] - The Group's rental income from properties in Singapore decreased by approximately 1.6% to HK$2,696,000[45] Investment Activities - As of March 31, 2021, the Group's investment in equity securities listed in Hong Kong and the USA amounted to approximately HK$84,616,000, an increase from approximately HK$39,606,000 in 2020[55] - The Group recorded a fair value gain in securities and other investments of approximately HK$18,744,000 for the year, compared to a loss of approximately HK$20,429,000 in 2020[48] - The Group's segment profit from securities investments was approximately HK$18,814,000, a significant recovery from a segment loss of approximately HK$22,450,000 in the previous year[52] - The Group received dividend income from listed securities of approximately HK$1,569,000 during the year[52] - The Group acquired a total of 3,800,000 shares of China Construction Bank Corporation for an aggregate purchase price of approximately HK$22,534,000, averaging HK$5.93 per share[53] - The Group purchased 394,275 American Depository Shares of RLX Technology Inc. at US$12.00 per share, totaling approximately HK$36,668,000, and later disposed of 210,929 shares at an average price of approximately US$21.93, realizing a gain of approximately HK$16,236,000[51] - The Group acquired 680,000 shares of Chinese Energy Holdings Limited for an aggregate purchase price of HK$489,600, averaging HK$0.72 per share[54] - The Group's investment portfolio comprised 7 equity securities as of March 31, 2021, up from 5 in 2020[55] Corporate Governance - The Board of Directors consists of six members, including three executive directors and three independent non-executive directors[160] - The Company has fully complied with the Corporate Governance Code, except for certain disclosed deviations[151] - The roles of Chairman and Chief Executive Officer are held by the same individual, Mr. Lai Law Kau, since October 1, 2020, which is deemed efficient for long-term strategy execution[153] - The Group does not have an internal audit function; however, the Board reviewed the internal control system and identified areas for improvement[158] - The Company is committed to maintaining transparency, accountability, and independence to maximize shareholder value[149] - The Board is responsible for strategic decisions and operational performance, ensuring objective consideration of all issues[159] - The Company has a Remuneration Committee and a Nomination Committee, with independent directors serving on these committees[161] - The Board will review the current governance structure when appropriate, considering the balance of power and authority[153] - The Company provides comprehensive induction packages for newly appointed directors to ensure they understand the Group's operations and governance policies[179] - The Board focuses on the growth and financial performance of the Group, delegating day-to-day operations to executive directors and senior management[177] Future Outlook and Strategy - The Group aims to strengthen its income base and competitive edge to create long-term value for shareholders[11] - The company plans to continue focusing on property development, investment, securities investment, and loan financing, while exploring new potential projects[129] - The company remains cautiously optimistic about the property and securities markets in Hong Kong despite global economic uncertainties[130] - The company will continue to identify suitable investment and divestment opportunities to enhance its property portfolio[131]
高山企业(00616) - 2021 - 年度财报