雅居投资控股(08426) - 2020 - 年度财报

Company Information Characteristics of GEM and Disclaimer This section outlines the characteristics of the GEM market, including higher investment risks and potential market volatility, clarifies the Exchange's disclaimer of responsibility for annual report content, and affirms directors' accountability for the report's accuracy and completeness - GEM market provides a listing platform for small and medium-sized companies, but involves higher investment risks, with securities potentially subject to significant market volatility and illiquidity[2] - Hong Kong Exchanges and Clearing Limited and the Stock Exchange assume no responsibility for the content of this annual report, make no representation, and accept no liability for any loss[2] - The company's directors collectively and individually assume full responsibility for the information contained in this report, confirming its accuracy and completeness in all material respects, without misleading or fraudulent elements[2] Board of Directors and Key Advisors This section lists the company's Board of Directors, compliance officer, authorized representatives, company secretary, committee members, auditor, legal counsel, principal bankers, registered office, head office, Hong Kong principal place of business, share registrars, company website, and stock code - The Board of Directors includes Chairman Mr. Ho Chu Ming, CEO Mr. Ng Fook Wah, and two other Executive Directors, Ms. Tam Mo Kit as Non-Executive Director, and Dr. Chan Man Wai, Mr. Wong Siu Fai, and Mr. Ng Kee Fat as Independent Non-Executive Directors[4] - The Audit Committee is chaired by Mr. Wong Siu Fai, the Remuneration Committee by Mr. Ng Kee Fat, and the Nomination Committee by Dr. Chan Man Wai, all composed of Independent Non-Executive Directors[4] - The company's auditor is PricewaterhouseCoopers, with principal bankers including The Hongkong and Shanghai Banking Corporation Limited and Bank of China (Hong Kong) Limited[4] Chairman's Statement Business Review Despite 2020's challenges, the Group maintained competitiveness with 28 public housing estates and 3 Home Ownership Scheme courts under management, achieving a 10.98% year-on-year revenue increase to HK$459.42 million and a 197.45% operating profit surge to HK$22.19 million, driven by new contract pricing, service fee adjustments, cost control, and government anti-epidemic subsidies - As of December 31, 2020, the Group managed 28 public housing estates and 3 Home Ownership Scheme courts[8] 2020 Financial Highlights | Metric | 2020 (million HKD) | 2019 (million HKD) | Y-o-Y Growth Rate | | :--------- | :---------------- | :---------------- | :--------- | | Total revenue | 459.42 | 413.96 | 10.98% | | Operating profit | 22.19 | 7.46 | 197.45% | | Basic and diluted earnings per share | 2.43 HK cents | 0.90 HK cents | 170% | - Operating profit growth was primarily attributed to increased pricing for new property management service contracts, upward adjustments in service fees for existing contracts, control over employee benefits and operating expenses, and receipt of government anti-epidemic fund subsidies[8] - The Board recommended a final dividend of HK$0.015 per share for the year ended December 31, 2020, totaling HK$12.00 million (2019: HK$4.00 million)[9] Outlook The company anticipates Hong Kong's population and residential property growth will drive property management business expansion; despite intense competition, minimum wage adjustments, and inflation-driven cost increases, the Board remains confident in increasing market share and plans to expand its property management portfolio by seizing opportunities in public and private residential and/or commercial properties - Strong housing demand in Hong Kong is expected to drive the expansion of the property management business[10] - The Board is confident in the Group's ability to increase market share and will continue to expand its property management portfolio, seizing opportunities in both public and private residential and/or commercial properties[10][11] Management Discussion and Analysis Business Review and Future Prospects The Group primarily provides public housing-focused property management services in Hong Kong, with the Hong Kong Housing Authority as its sole client, encompassing estate management, security, and cleaning; despite industry challenges, the economic downturn and pandemic are expected to have limited impact, and the Group will implement aggressive marketing, human resource investment, and cost control for long-term growth - The Group primarily provides property management services in Hong Kong, focusing on public housing, with the Hong Kong Housing Authority as its sole client, accounting for 100% of total revenue[15] - Property management services include estate management (general management, tenancy management, financial management, minor repairs and maintenance, project management), security services, and cleaning services[15] - To address challenges, the Group will implement aggressive marketing strategies, invest more human resources, and strengthen cost control measures to promote long-term business growth[15] Financial Review The Group's FY2020 revenue grew by 10.98% to HK$459.42 million, primarily due to new contract pricing and increased service fees, while other income significantly rose from anti-epidemic subsidy administration fees and government employment support scheme subsidies; operating expenses saw increased employee benefits due to new hires but a lower revenue proportion, reduced cleaning material costs from outsourcing, and decreased other operating expenses due to pandemic-related activity reductions and lower compliance costs, leading to substantial profit growth influenced by revenue, cost control, and government subsidies 2020 Financial Year Revenue and Other Income | Metric | 2020 (million HKD) | 2019 (million HKD) | Y-o-Y Growth Rate | | :------- | :---------------- | :---------------- | :--------- | | Revenue | 459.42 | 413.96 | 10.98% | | Other income | 9.05 | 0.25 | 3520% | - Revenue increase was primarily due to higher pricing for new property management service contracts and upward adjustments in service fees for existing contracts[16] - The significant increase in other income was mainly due to higher administration fees for distributing anti-epidemic subsidies to employees and the receipt of government employment support scheme subsidies[19] 2020 Financial Year Key Expense Changes | Metric | 2020 (million HKD) | 2019 (million HKD) | Y-o-Y Change Rate | | :------------- | :---------------- | :---------------- | :--------- | | Employee benefit expenses | 392.67 | 376.87 | 4.19% | | Cleaning material costs | 6.64 | 7.47 | -11.11% | | Other operating expenses | 16.26 | 17.95 | -9.42% | | Net finance costs | 0.22 | -1.13 (income) | N/A | | Income tax expense | 2.54 | 1.40 | 81.43% | | Profit for the year | 19.44 | 7.19 | 170.37% | - Employee benefit expenses increased mainly due to new hires for new property management service contracts and annual salary increments, but their proportion of revenue decreased from 91.04% to 85.47%[23] - Cleaning material costs decreased primarily due to the outsourcing of cleaning services for three estates starting from July 2020[24] - Other operating expenses decreased mainly due to reduced community activities during the pandemic, lower compliance costs, and reduced insurance and guarantee fees[25] - Net finance costs shifted from net finance income in 2019 to a cost, primarily due to a decrease in the amount and interest rates of bank time deposits[30] - Profit for the year significantly increased to HK$19.44 million, primarily attributed to revenue growth, cost control, and government subsidies[32] - The Board recommended a final dividend of HK$0.015 per share, totaling HK$12.00 million (2019: HK$4.00 million)[33] Liquidity and Financial Resources The Group's current ratio decreased from 3.56x in 2019 to 3.27x in 2020, mainly due to increased borrowings and lease liabilities, while cash and bank balances significantly rose to HK$29.79 million; the debt-to-equity ratio increased to 4.93%, also impacted by higher borrowings and lease liabilities, yet the Board considers the Group's financial position robust and liquidity ample, supported by available cash and bank balances and banking facilities 2020 Financial Year Liquidity and Financial Resources | Metric | 2020 (thousand HKD) | 2019 (thousand HKD) | | :------------- | :-------------- | :-------------- | | Current assets | 179,394 | 146,182 | | Current liabilities | 54,872 | 41,012 | | Net current assets | 124,522 | 105,170 | | Total assets | 190,339 | 153,444 | | Total liabilities | 57,661 | 41,682 | | Borrowings | 2,802 | - | | Cash and bank balances | 29,789 | 15,444 | | Pledged bank deposits | 36,731 | 32,845 | | Total equity | 132,6