Financial Performance - For the year ended March 31, 2019, the Group's revenue was approximately HK$830,347,000, an increase of approximately HK$498,826,000 or 150.5% compared to the previous year[16]. - The profit attributable to the Company's shareholders for the year was approximately HK$315,959,000, compared to HK$297,163,000 in the previous year[16]. - The gross profit margin for the year was recorded at 42.6%[16]. - Basic and diluted earnings per share amounted to HK$3.52 for the year ended March 31, 2019[16]. - The Group's net profit margin decreased to 38.0% from 89.6% in the previous year[142]. - The profit for the year ended March 31, 2019 was approximately HK$315,814,000, representing an increase of approximately 6.3% compared to the previous year[150]. - Gross profit for the year was approximately HK$353,892,000, representing an increase of approximately 103.2% from approximately HK$174,169,000 in 2018, with a gross profit margin of 42.6% (2018: 52.5%), a decrease of approximately 9.9%[147]. - Profit before taxation was approximately HK$354,985,000, compared to HK$319,809,000 in the previous year, mainly due to increased profit from property sales[147]. Dividends - The Board recommended a final dividend of HK$0.05 per share for the year ended March 31, 2019[16]. - The Board recommends a final dividend of HK5 cents per share for the year ended 31 March 2019, unchanged from 2018[5]. - The proposed final dividend is expected to be distributed to shareholders on 2 September 2019[5]. - The Registers of Members will be closed from 14 August 2019 to 19 August 2019 for the purpose of ascertaining shareholders' entitlement to the proposed final dividend[30]. - All properly completed transfer forms for the proposed final dividend must be lodged by 4:30 p.m. on 13 August 2019[31]. - The final dividend recommendation is subject to approval at the forthcoming 2019 annual general meeting[5]. Property Development and Investment - The Group aims to diversify its property portfolio and invest in high-quality assets to strengthen its income base[18]. - The Group is focusing on expanding its property development and investment business in both commercial/industrial and residential sectors[17]. - The Waterloo Site, with a site area of approximately 9,800 sq. ft., is being developed into luxurious residential accommodation with an estimated gross floor area of approximately 48,998 sq. ft., expected to be completed in late 2021[35]. - The Group's major projects during the year include the Waterloo Site, which is currently under construction[35]. - The Group completed the acquisition of Inverness Road Property, a residential building with a total saleable area of approximately 40,943 sq. ft.[41]. - Inverness Road Property is expected to be completed before the end of 2019, enhancing the Group's residential development portfolio[41]. - The acquisition of Chatham Road North involved over 80% interest in properties with a total site area of approximately 4,685 sq. ft., aiming for 100% ownership for redevelopment[37]. - The estimated gross floor area after redevelopment of Chatham Road North is expected to be approximately 42,160 sq. ft.[37]. - The Group has extensive experience in property redevelopment, particularly in acquiring old buildings for renewal and redevelopment[35]. Transactions and Investments - The Group completed significant transactions, including the disposal of No. 6 La Salle Road Property and Easy Tower, and the acquisition of Inverness Road Property[17]. - The Group completed the disposal of La Salle Road Property, generating gross proceeds of approximately HK$680,685,000[37]. - The Group successfully disposed of Easy Tower, an industrial building, due to increasing maintenance costs[44]. - Easy Tower was considered a mature investment, prompting the decision for its disposal[44]. - The Group acquired the Inverness Road Property for HK$1,035,000,000, which was lower than its valuation, enhancing the Group's residential asset portfolio and potential development profits[165]. - The Group disposed of Easy Tower for HK$470,000,000, which was a mature investment with high maintenance costs, allowing the Group to acquire the Inverness Road Property without raising all necessary cash[174]. Financial Position and Ratios - Bank borrowings as of 31 March 2019 amounted to approximately HK$1,285,984,000, an increase from approximately HK$1,151,742,000 in 2018[150]. - The current ratio improved to 2.8 as of 31 March 2019, compared to 2.5 in the previous year[150]. - Net current assets as of 31 March 2019 were approximately HK$1,690,736,000, up from approximately HK$1,029,394,000 in 2018[150]. - The Group's total rental income from investment properties for the year was approximately HK$54,892,000, representing a 3.7% increase from HK$52,958,000 in 2018[41]. - The Group maintained a high occupancy rate of 100% for its commercial and residential investment properties as of March 31, 2019[41]. Securities Investments - The Group's securities investments amounted to HK$105,666,000 as of March 31, 2019, a decrease from approximately HK$209,759,000 in 2018[46]. - The decrease in securities investments was attributed to a net disposal of securities of approximately HK$125,511,000 and a net decrease in market value of approximately HK$27,572,000[46]. - The total loss from securities investments was approximately HK$10,245,000 for the year[133]. - Dividend income from listed securities during the year was approximately HK$7,409,000[46]. - The Group's significant securities investments included various companies, with a total investment value of HK$122,695,000 as of March 31, 2019[133]. - The Group's investment strategy focuses on capital appreciation, dividend payments, risk exposure, and diversification of the existing investment portfolio[46]. Corporate Governance and Leadership - The company has a diverse board with members holding significant qualifications and experience in accounting and law, enhancing governance and oversight[196]. - The independent non-executive directors play key roles in various committees, including Audit, Remuneration, and Nomination, ensuring robust corporate governance[192][197][200]. - The company emphasizes the importance of experienced leadership in navigating market challenges and opportunities[196]. - The board's composition reflects a commitment to maintaining high standards of accountability and transparency in financial reporting[198]. - The directors' extensive backgrounds in their respective fields contribute to strategic decision-making and risk management[199]. - The company continues to leverage the expertise of its board members to drive growth and enhance shareholder value[196]. Employee and Operational Insights - As of March 31, 2019, the Group had 33 employees, with staff costs amounting to approximately HK$63,647,000, a significant increase from approximately HK$24,164,000 in 2018[181]. - The Group's investment in staff and resources reflects its commitment to performance-based remuneration and employee motivation through a share option scheme[181]. - The Group plans to adopt a prudent approach when acquiring and disposing of properties to ensure steady recurring income and capital appreciation[181]. - The Group's financial resources and corporate strategy are expected to support continued growth[181].
永义国际(01218) - 2019 - 年度财报