Financial Performance - Total revenue for the year ended September 30, 2019, was HK$1,082,854,000, a decrease of 17.6% from HK$1,314,270,000 in 2018[9] - Financing revenue decreased to HK$940,016,000 from HK$1,085,879,000, representing a decline of 13.4%[9] - Brokerage revenue fell to HK$102,020,000, down 23.9% from HK$133,844,000 in the previous year[9] - The net loss reported was HK$258,706,000, compared to a profit of HK$549,195,000 in 2018[9] - Adjusted net profit was HK$630,578,000, down 16.5% from HK$754,773,000 in the prior year[9] - Basic loss per share was HK(3.84), compared to earnings of HK8.15 per share in 2018[9] - The loss attributable to owners of the Company was HK$258.7 million, compared to a profit of HK$549.2 million in 2018, indicating a significant downturn in financial performance[21] - Adjusted profit, excluding impairment allowances, decreased by 16.5% to HK$630.6 million from HK$754.8 million in 2018[21] - Basic loss per share was HK3.84 cents, a decline from basic earnings per share of HK8.15 cents in the previous year[21] Operational Overview - The company operates 4 branches in Hong Kong and 3 liaison offices in mainland China, indicating a stable operational footprint[12] - The Group's revenue decreased to HK$1,082.9 million for the year ended September 30, 2019, down from HK$1,314.3 million in 2018, reflecting a decline of approximately 17.6%[21] - The Group has diversified its income streams, transitioning to an interest income-based financial institution over the past decade[12] - The Group operates 4 branches in Hong Kong and 3 liaison offices in mainland China, enhancing its market presence[31] Market Conditions - The year faced challenges due to the US-China trade war, Brexit uncertainties, and emerging market currency crises, impacting investor sentiment[16] - The Group has implemented stricter scrutiny of loan approval procedures and adjusted interest charges and loan-to-value ratios in response to market conditions[27] - The local government's policy to raise the mortgage cap for first-time buyers is expected to stimulate property transactions, prompting the Group to allocate more resources to this market[39] - The Group plans to adopt a prudent approach and strengthen credit control measures to minimize potential risks amid increasing demand for property mortgages[39] Financial Position - As of September 30, 2019, the Group's current assets were HK$9,440.2 million, down from HK$10,470.3 million in 2018, while current liabilities decreased to HK$2,584.4 million from HK$3,524.6 million[21] - The Group's bank balances, cash, and pledged bank deposits totaled HK$1,905.5 million as of September 30, 2019, an increase from HK$1,043.0 million in 2018[21] - The Group's total borrowings amounted to HK$3,044.7 million, with a gearing ratio of 59.5% as of September 30, 2019[23] - Short-term bank borrowings decreased to HK$231.2 million as of September 30, 2019, down from HK$460.2 million in the previous year[23] - The Group has sufficient working capital for its operation and future development, with available unutilised banking facilities of HK$2,722.8 million[23] Revenue Breakdown - Revenue from the financing segment decreased by 13.4% to HK$940.0 million in the year, accounting for 86.8% of total revenue[26] - Revenue from the brokerage segment decreased to HK$102.0 million, representing 9.4% of total revenue, down from HK$133.8 million in the previous year[31] - Revenue from the placing and underwriting segment was HK$34.5 million, accounting for 3.2% of total revenue, a decrease from HK$75.9 million in the previous year[34] - Revenue from the corporate finance segment generated HK$6,365,000, a significant drop from HK$18,627,000 in the previous year, reflecting market conditions[9] Shareholder Information - The Group did not pay any interim dividend for the Year, compared to HK$148.97 million (HK2.21 cents per share) in 2018[62] - The Board did not recommend any final dividend for the Year, whereas in 2018, it was HK$43.1 million (HK0.64 cent per share)[62] - The Company's reserves available for distribution to Shareholders as of 30 September 2019 amounted to approximately HK$101.9 million in contributed surplus and HK$89.2 million in retained profits, compared to HK$101.9 million and HK$50.3 million in 2018[65] - The Group's five largest customers accounted for 20% of total turnover in the Year, down from 24% in 2018, with the largest customer contributing 6% of total turnover, down from 10% in 2018[78] Corporate Governance - The Company fully complied with the Corporate Governance Code except for the deviation from code provision A.2.1, which requires the roles of chairman and chief executive officer to be separate[158] - The Board comprised six Directors as of September 30, 2019, including three Executive Directors and three Independent Non-Executive Directors[159] - The emoluments of the Directors are determined by the Board based on a written remuneration policy aligned with business strategy and shareholder interests[145] - The Company has adopted various policies to ensure compliance with the Corporate Governance Code[158] - All Independent Non-executive Directors (INEDs) have confirmed their independence, and their terms are subject to re-election provisions[165] Director and Executive Information - The remuneration package for Directors includes basic salaries, Directors' fees, pension contributions, discretionary bonuses, and competitive fringe benefits[150] - The Managing Director provides strong leadership while leading the management in effective planning and execution of long-term business strategies[160] - The Company is led by a Board responsible for strategic direction and monitoring financial performance to promote success in the interest of shareholders[165] - The Executive Committee, comprising all Executive Directors, manages day-to-day operations and has delegated powers except for specific reserved matters[165] Compliance and Risk Management - The Company ensures compliance with legal and regulatory requirements through approved policies and practices[167] - The Board is responsible for approving major changes and financial reporting as per Listing Rules[167] - The Company Secretary ensures that Board procedures and applicable rules are followed, with meeting notices sent at least 14 days in advance[176] - The Company has established clear written terms of reference for all Board Committees to assist in effective management[183]
英皇资本(00717) - 2019 - 年度财报