Financial Performance - Total revenue for 2019 was HK$613,410,000, a decrease of 57.0% from HK$1,423,933,000 in 2018[7] - Underlying profit for 2019 was HK$129,581,000, down 24.4% from HK$171,292,000 in 2018[7] - Construction segment revenue decreased to HK$264,918,000 from HK$1,274,528,000, a decline of 79.2%[7] - Property leasing revenue increased slightly to HK$157,460,000 from HK$149,405,000, a growth of 5.7%[7] - Property development revenue was HK$191,032,000, with no prior year comparison available[7] - The Group's profit for the year was HK$149.0 million, a decrease of HK$22.8 million or 13.3% compared to HK$171.8 million in FY 2017/18[11] - The Group's net profit for FY 2018/19 was approximately HK$149.0 million, representing a decrease of 13.3% from HK$171.8 million in FY 2017/18[34] - The underlying profit, excluding changes in fair value of investment properties, was approximately HK$129.6 million, a decrease of 24.4% compared to the previous year's underlying profit of HK$171.3 million[34] Liquidity and Financial Ratios - Current ratio decreased to 2.62 from 3.79 in 2018, indicating reduced liquidity[7] - Gearing ratio increased to 141.1% from 129.7% in 2018, reflecting higher leverage[7] - Net gearing ratio rose to 135.3% from 116.0% in 2018, indicating increased debt levels[7] - Total cash balances as of March 31, 2019, were approximately HK$162.7 million, a decrease from HK$378.2 million the previous year[36] - The current ratio was 2.62 times, indicating sufficient working capital for present operations and future business expansion[36] - The Group's liquidity ratio was 2.62 times as of March 31, 2019, compared to 3.79 times a year earlier[39] Revenue Breakdown - Revenue from the construction business decreased by approximately 79.2% or HK$1,009.6 million, from HK$1,274.5 million in FY 2017/18 to HK$264.9 million in FY 2018/19[18] - Revenue from data centre premises leasing increased by approximately 5.0% or HK$7.2 million, from HK$145.0 million in FY 2017/18 to HK$152.2 million in FY 2018/19[20] - Revenue from the building construction segment decreased by 79.2%, while revenue from the property development segment partially offset this decline due to sales from the Cristallo properties[32] Assets and Liabilities - The Group's total assets as of 31 March 2019 were HK$7,050.8 million, an increase from HK$6,725.4 million in the previous year[9] - The Group's total liabilities as of 31 March 2019 were HK$4,236.3 million, up from HK$3,960.3 million in the previous year[9] - The value of construction projects in hand as of 31 March 2019 amounted to approximately HK$1.63 billion[19] Dividends and Shareholder Returns - The total dividends for FY 2018/19 will amount to 9.8 HK cents per share, representing a payout ratio of approximately 53.7%[15] - The Group's interim dividend was 4.0 HK cents per share, and a final dividend of 5.8 HK cents per share is proposed for payment[46] - The Group's policy is to reward shareholders while retaining adequate capital for business development, with dividends declared based on operational results and financial conditions[46] Corporate Governance - The Company has complied with all code provisions set out in the Corporate Governance Code throughout FY 2018/19[114] - The Company emphasizes accountability to all shareholders as a core element of its corporate governance principles[148] - The Board is responsible for corporate governance duties, including policy development and compliance monitoring[167] - The Company has established three committees: Remuneration Committee, Audit Committee, and Nomination Committee to oversee specific aspects of the Group's affairs[169] - The Remuneration Committee consists of all four independent non-executive Directors, ensuring no Director determines their own remuneration[171] Management and Team Experience - The Company has a strong management team with extensive experience in construction, property development, and data center leasing[120][121][123] - The management team includes members with qualifications from recognized institutions, enhancing the Company's credibility and expertise[122][125] - Mr. Yuen Ying Wai has over 35 years of experience in quantity surveying and construction project management, including 11 years in high-tier data center construction[121] - Mr. Kwan Wing Wo has over 28 years of experience in auditing, accounting, and finance, previously holding a management position in a listed company for 12 years[123] Risk Management - The Board has established a risk management system based on the "Three Lines of Defence" model to manage risks effectively[183] - The Audit Committee reviewed the adequacy and effectiveness of the Group's risk management and internal controls, finding no significant areas of concern[188] - The Group's internal control and risk management system is designed to manage risks rather than eliminate them, providing reasonable assurance against material misstatement[188] Shareholder Communication - The company emphasizes the importance of effective communication with shareholders to enhance investor relations and transparency[192] - The company maintains a website for public access to updates on business developments, financial information, and corporate governance practices[194] - The company has established a shareholders' communication policy that will be regularly reviewed for effectiveness[194]
佳明集团控股(01271) - 2019 - 年度财报