Financial Performance - The financial year ending June 30, 2024, is reported with significant developments in the company's performance[5]. - For the financial year ended 30 June 2024, the Group reported total revenue of HK$71,573,000, a decrease of approximately 10% compared to HK$79,734,000 in 2023[8]. - The gross profit for the year was HK$44,965,000, reflecting an 18% decline from HK$54,752,000 in the previous year, with a gross profit margin of 63% (2023: 69%) due to reduced rental revenue from investment properties in mainland China[8][10]. - The Group recorded other income, gains, or losses of HK$3,083,000, down from HK$17,346,000 in 2023, primarily from bank interest income of HK$7,032,000 and a net exchange gain of HK$4,297,000[9]. - The profit attributable to shareholders for the year was HK$5,353,955,000, significantly up from HK$6,634,000 in 2023, with basic earnings per share of HK$22.52 compared to HK$0.028 in the previous year[10]. - The other comprehensive income for the year was HK$18,460,000, a turnaround from an expense of HK$156,787,000 in 2023, due to a 1% appreciation of RMB against HKD[10]. Market and Operational Insights - The company aims to enhance its market presence through strategic expansions and potential acquisitions[5]. - New product and technology developments are underway, focusing on innovation to drive future growth[5]. - The rental income from investment properties in Shanghai and Beijing was RMB65,215,000, down about 8% from RMB71,093,000 in 2023, contributing to the overall revenue[15]. - The average occupancy rate in Beijing improved to 86% from 78% in the previous year, contributing to the increase in rental income[19]. - The average occupancy rate in Shanghai dropped to 83% from 89% in the previous year, primarily due to a weak leasing market and tenant defaults[20]. - The Group's total revenue composition shifted, with Beijing's contribution increasing and Shanghai's decreasing compared to the previous year[19][20]. Corporate Governance - The company is committed to maintaining transparency and good corporate governance practices[2]. - The board of directors includes key executives such as Dr. Tan Lucio C. as Chairman and Chiu Siu Hung, Allan as CEO[2]. - The company has established a robust audit committee led by independent directors to ensure financial integrity[2]. - The Company has established an internal corporate governance code to facilitate compliance with the Corporate Governance Code[62]. - The Board is responsible for setting the overall strategic direction and monitoring the financial performance and internal controls of the group[66]. - The Company has adopted a shareholders communication policy to enhance transparency and regularly collects feedback from shareholders[114]. Risk Management - The Group faces significant financial risks due to fair value fluctuations of investment properties, which constitute the highest proportion of total assets[138]. - The Group is exposed to higher risks from macroeconomic factors, particularly volatility in the Renminbi and market interest rates, which could significantly affect operational results[150]. - The Company aims to enhance its enterprise risk management framework and policies as part of its sustainable development goals[106]. - The ongoing litigation regarding relocation compensation claims may lead to significant financial liabilities for the Group[144]. - The Group's proactive measures include optimizing tenant mix and providing competitive rental packages to mitigate risks in property leasing[147]. Shareholder Information - The annual general meeting is scheduled for December 13, 2024, with a last registration date of December 9, 2024[4]. - The final dividend payment is set for January 7, 2025, following the last registration date of December 16, 2024[4]. - A final dividend of 0.5 Hong Kong cents per share was paid on January 9, 2024, for the year ended June 30, 2023, with an interim dividend of 0.5 Hong Kong cents per share totaling HK$1,189,000 paid during the year[161]. - The total dividends for the year ended June 30, 2024, will amount to 1 Hong Kong cent per share, aggregating to HK$1,189,000[161]. - The company's distributable reserves as of June 30, 2024, amounted to HK$163,303,000 in retained profits[170]. Board Composition and Diversity - The Board currently consists of three female members and seven male members, indicating a diversified gender composition[88]. - The Company has established three committees: Remuneration Committee, Nomination Committee, and Audit Committee, each with defined terms of reference[82]. - The Nomination Committee is responsible for reviewing the composition, structure, and diversity of the Board, ensuring candidates meet the standards set out in the Listing Rules[84]. - All Independent Non-executive Directors confirmed their independence annually, with those serving over 9 years requiring separate shareholder approval for further appointment[80]. - The independent non-executive directors have extensive senior managerial experience in various industries, including banking and aluminum products[59][60]. Financial Position and Liquidity - As of June 30, 2024, the equity attributable to the owners amounted to RMB 6,712,492,000, a significant increase from RMB 1,830,193,000 on June 30, 2023[31]. - The net asset value per share increased to HK$30.94 as of June 30, 2024, compared to HK$8.35 on June 30, 2023[33]. - The Group maintained a total bank borrowing of nil as of June 30, 2024, consistent with the previous year[33]. - The Group's net current assets rose to HK$13,057,439,000 as of June 30, 2024, compared to HK$346,741,000 on June 30, 2023, reflecting improved liquidity[34]. - The current ratio increased to 74.17 as of June 30, 2024, up from 3.82 in the previous year, indicating enhanced financial stability[34]. Development and Future Outlook - The Group is actively collaborating with various parties to explore development options for the Group Allocated Land in line with city planning and infrastructure optimization[23]. - The Group Allocated Land is designated for multi-purpose development, including residential and commercial use[22]. - The Group plans to actively adjust leasing and market strategies to maintain occupancy rates and recurring income amid a challenging economic environment[36]. - The Chinese government is expected to implement policies to stabilize the real estate sector and support domestic consumption, which may positively impact the Group's operations[36]. - Future development value of the Group Allocated Land is expected to be enhanced by optimized city planning and infrastructure projects near the opera house in Shenzhen[43].
达力集团(00029) - 2024 - 年度财报