Financial Performance - The group's consolidated revenue increased significantly to HKD 8,810 million for the year ended March 31, 2019, compared to HKD 4,080 million in 2018[15]. - Gross profit rose to HKD 4,170 million, with a gross margin of 47.4%, up from HKD 1,090 million and 26.7% in 2018, respectively[15]. - Net profit for the year was HKD 3,230 million, compared to HKD 350 million in 2018, with profit attributable to ordinary shareholders increasing to HKD 3,300 million from HKD 310 million[15]. - Basic and diluted earnings per share were HKD 0.691, a significant increase from HKD 0.065 in 2018[15]. - The board declared a final dividend of HKD 0.06 per share, up from HKD 0.03 per share in 2018[16]. - The company reported a comprehensive financial statement for the year ending March 31, 2019[154]. Assets and Liabilities - The total asset value of the group as of March 31, 2019, was HKD 202.4 billion, down from HKD 263.9 billion in 2018[14]. - Current assets amounted to HKD 105.2 billion, compared to HKD 160.2 billion in 2018, with a current ratio of approximately 1.94 times, up from 1.29 times in 2018[14]. - As of March 31, 2019, the group's bank deposits and cash amounted to HKD 4,360 million, representing 21.5% of total assets, compared to 15.1% in 2018[18]. - The group's total borrowings decreased to HKD 338 million, down from HKD 831 million the previous year, resulting in a debt-to-asset ratio of 16.7%[33]. - The group's cash net amount as of March 31, 2019, was HKD 93 million, compared to a net debt of HKD 456 million the previous year, indicating a significant improvement in financial health[33]. Investments and Projects - The company successfully completed two landmark industrial redevelopment projects in Hong Kong during the fiscal year[13]. - The company has signed contracts for two private equity funds with institutional investors, aimed at funding the construction of the Wong Chuk Hang project and the planning of the Cheung Sha Wan project[13]. - The company is actively exploring residential, industrial, and commercial properties in Hong Kong and overseas that align with its investment criteria[13]. - The company achieved a net internal rate of return of 47% from the development of the Hutchins Capital Building project[6]. - The company plans to leverage opportunities related to the economic development plans of the Greater Bay Area in the future[9]. - The group completed and delivered multiple property development projects, including the successful delivery of the Hong Kong industrial properties, namely the Yongkang Street and Maple Street projects[26]. Corporate Governance - The board of directors has authorized the delegation of certain functions to the management team while retaining decision-making power on major matters, including policies, strategies, and significant transactions[45]. - The board consists of executive directors, including the CEO and COO, and independent non-executive directors, ensuring a diverse composition[46][47]. - The company adheres to the corporate governance code, maintaining at least three independent non-executive directors, with one possessing relevant financial expertise[50]. - The chairman and CEO roles are held by the same individual, which deviates from corporate governance guidelines, but the board believes this arrangement serves the company's best interests[51]. - All directors are required to undergo formal training upon appointment to understand the company's operations and regulatory responsibilities[54]. - The company has established three committees: the Remuneration Committee, the Nomination Committee, and the Audit Committee to oversee specific aspects of governance[59]. Risk Management - The board is responsible for the overall risk management and internal control systems, ensuring they are adequate and effective[76]. - The company has established a risk management policy to manage risks associated with achieving business objectives[77]. - The company faces key risks including business, operational, and financial risks, particularly in markets such as Hong Kong, the PRC, the US, and the UK[160][161]. - The company has not identified any significant uncertainties that may cast doubt on its ability to continue as a going concern[73]. Sustainability and Corporate Social Responsibility - The company is committed to sustainable development by incorporating green building and energy-saving elements in its business activities[9]. - The company emphasizes corporate social responsibility practices that benefit both the group and society[93]. - Stakeholder engagement and materiality assessment are crucial for identifying key environmental, social, and governance management strategies[97]. - The company collaborates closely with contractors to ensure proper management and disposal of hazardous waste on construction sites[99]. - The company strictly prohibits forced labor and child labor, viewing these as critical issues in its operations[99]. Employee Engagement and Development - The total employee compensation for the year was HKD 48 million, an increase from HKD 45 million in the previous year, reflecting the company's commitment to employee remuneration[39]. - The company provides annual training funding of up to HKD 6,000 and up to three days of paid leave for exam preparation for employees[128]. - The total training hours for non-management staff on construction sites is 18,412 hours, significantly higher than for senior management at 5.4 hours[130]. - The company organizes various corporate events annually to enhance employee engagement and belonging[119]. - Employee turnover rate is 22.2% for office staff and 2.3% for construction site workers[122]. Compliance and Legal Matters - The company has complied with applicable laws and regulations without any violations during the year[159]. - The company has not reported any significant violations of environmental laws and regulations during the reporting period[111]. - The company has not identified any significant legal violations related to health and safety, advertising, labeling, or privacy matters during the review year[136]. Shareholder Engagement - The company emphasizes effective communication with shareholders and investors, maintaining transparency and timely disclosure of information[82]. - The company engages with customers and suppliers through various communication channels to gather feedback and suggestions[157].
宏基资本(02288) - 2019 - 年度财报