Financial Performance - For the financial year ended 30 June 2025, the Group reported total revenue of HK$64,952,000, a decrease of approximately 9% compared to HK$71,573,000 in 2024[19] - Gross profit for the same period was HK$41,362,000, down about 8% from HK$44,965,000 in 2024, with a gross profit margin of approximately 64%[19] - The Group recognized other income and gains totaling HK$9,039,000, significantly higher than HK$3,083,000 in 2024, primarily from bank interest income of HK$7,588,000[20] - A significant decrease in the fair value of investment properties was recorded, amounting to HK$114,974,000, compared to HK$23,927,000 in 2024, due to stagnant property sentiment[21] - Administrative expenses were reduced to HK$27,100,000 from HK$47,566,000 in 2024, mainly due to decreased expenses related to joint ventures[21] - The Group did not record any share of profit from joint ventures during the year, contrasting with a one-off fair value gain of HK$12,635,773,000 recognized in the previous year[22] - The net exchange gain for the year was HK$562,000, down from HK$4,297,000 in 2024[20] - The Group's loss attributable to shareholders for the year was HK$62,594,000, compared to a profit of HK$5,353,955,000 in 2024, resulting in a basic loss per share of HK$0.263[21] - The decrease in performance was primarily attributed to reduced rental income from investment properties in Mainland China[19] - The Group's financial results reflect the impact of the challenging real estate market, particularly in the office sector[21] Rental Income and Occupancy Rates - The rental income from investment properties in Shanghai and Beijing decreased by approximately 9% to RMB59,626,000 (2024: RMB65,215,000), with a corresponding HK$64,952,000 (2024: HK$71,573,000) [33] - The average occupancy rate in Beijing was approximately 87% (2024: 86%), with rental income of RMB25,405,000 (2024: RMB26,579,000), reflecting a decline of about 4% [36] - In Shanghai, the average occupancy rate for the premium office building decreased to about 70% (2024: 83%), with total rental income of RMB34,221,000 (2024: RMB38,635,000), showing an 11% decline [38] - In Beijing, rental income decreased to RMB25,405,000, a decline of about 4% year-over-year, accounting for 43% of total revenue[39] - In Shanghai, rental income fell to RMB34,221,000, representing an 11% decrease compared to the previous year, with an average occupancy rate dropping to 70%[40] Investment Properties and Development - The fair value of the Group's investment properties decreased by RMB105,547,000 (equivalent to HK$114,974,000) compared to a decrease of RMB21,802,000 (equivalent to HK$23,927,000) in 2024 [33] - The property rental segment recorded a loss of RMB67,969,000 (equivalent to HK$74,039,000) compared to a profit of RMB18,326,000 (equivalent to HK$20,113,000) in 2024 [33] - The fair value of investment properties in Shanghai decreased by RMB70,599,000, resulting in a loss of HK$50,241,000 for the year[40] - The Group is developing a land parcel in Shenzhen for residential and commercial use, which has not yet generated any revenue, resulting in a loss of HK$4,988,000 for the year [35] - The Group commenced development of a new land plot in Shenzhen, covering approximately 65,000 square meters for multi-purpose development[45] - The developable gross floor area of the Shenzhen land is approximately 179,000 square meters, including 143,000 square meters for residential use[46] Corporate Governance - The Company has been continuously reviewing and enhancing its corporate governance practices with reference to local and international best practices, contributing to business growth and sustainability[100] - The corporate governance principles emphasize creating long-term sustainable growth for shareholders and delivering long-term value to all stakeholders[99] - The Company has established an internal corporate governance code to facilitate compliance with the Corporate Governance Code and guide directors and senior management[102] - The Board is responsible for setting overall corporate objectives, monitoring business performance, and ensuring sound corporate governance and ethical culture[107] - The Company has adhered to the Corporate Governance Code, with some deviations disclosed, and has met several recommended best practices[101] Board Composition and Diversity - The Board currently consists of six executive directors, four independent non-executive directors, and one alternate director, ensuring a diverse governance structure[108] - The Company has four independent non-executive directors, representing more than one-third of the Board, with relevant professional qualifications[106] - The Board's diversity policy includes considerations of ethnicity, age, gender, and cultural background when selecting candidates[139] - The Board currently consists of four female members and seven male members, indicating a diversified gender composition[144] Risk Management and Internal Controls - The Group's risk management and internal control systems were reviewed and deemed effective and adequate based on the annual review results[180] - The risk assessment framework included five core stages: risk identification, prioritisation, risk responses, risk monitoring, and risk reporting[174] - The Audit Committee is responsible for monitoring the effectiveness of the risk management and internal control systems[171] - The internal audit function did not identify any material control failures or significant areas of concern during the reviews[181] Shareholder Communication and Engagement - Communication with Shareholders and investors is regarded as essential for enhancing transparency and collecting feedback[190] - The Company Secretary is responsible for facilitating good information flow and advising Directors on governance matters[188] - The Company will hold its annual general meeting on 12 December 2025, allowing for direct communication with Shareholders[191] - The Company has reviewed the implementation and effectiveness of its shareholders communication policy during the year[190]
达力集团(00029) - 2025 - 年度财报