Financial Performance - Revenue for the year ended June 30, 2025, was HK$168.5 million, a decrease from HK$188.0 million in 2024[19] - The company reported a loss attributable to owners of HK$989.2 million for 2025, compared to a profit of HK$171.7 million in 2024[19] - The consolidated loss after income tax for the year ended June 30, 2025, is HK$1,144,071,000, compared to a profit of HK$171,004,000 in 2024, indicating a significant decline in performance[52][56] - Basic loss per share was HK$1.52, a decline from earnings per share of HK$0.26 in 2024[151][152] - Total equity attributable to owners decreased by 13.7% to approximately HK$5,771,409,000 from HK$6,684,368,000 in 2024[153][154] - Gross profit for the year was HK$42,646,000, down from HK$106,795,000 in the previous year[146][149] - Administrative expenses increased by 412.0% to HK$289,646,000, primarily due to provisions for properties under development[147][150] - Negative change in fair value of investment properties amounted to HK$914,881,000, compared to a decrease of HK$154,070,000 in 2024[147][150] Liquidity and Financial Ratios - The cash ratio stood at 59.2%, indicating a strong liquidity position[10] - The net gearing ratio was reported at 11.8%, indicating low financial risk[12] - The total debt to equity ratio increased to 22.1% (2024: 20.1%) and the net debt to equity ratio rose to 7.5% (2024: 6.9%) due to a decrease in net asset value[166] - Interest expenses for the year were HK$53,855,000, slightly higher than HK$53,831,000 in the previous year, with an average interest rate of 4.1% (2024: 4.5%)[168] Property and Market Performance - Total property value was HK$7,453.8 million, with a significant portion located in Hong Kong (43%) and Shenzhen (25%)[11][17] - The residential market in Hong Kong shows signs of recovery, with home sales reaching a four-year high and residential transactions expected to increase by 13% to 64,000 units in 2025[54][59] - The residential rental market has recorded seven consecutive months of growth, with the official index reaching 195.6, nearing levels last seen in September 2019[60][62] - The occupancy rate for the residential project "One Kowloon Peak" is currently at 50%, with plans to market the properties for sale in early 2026[61][65] - The occupancy rate for "Villa Cecil Phase II" is maintained at 60%[66][68] - The occupancy rate for "Villa Cecil Phase III" has reached 90%[72][73] - In Shenzhen, a total of 835 units were sold, generating aggregate sales of RMB 4,092 million[84] - The average residential property prices in Shenzhen have stabilized due to local support measures, with modest improvement in transaction volumes, particularly in the mid to high-end segment[86] - Hangzhou's residential market has shown robust sentiments, with improved transaction volumes in both primary and secondary markets following recent policy adjustments[88] Dividends and Shareholder Information - Dividends declared for the year amounted to HK$40.8 million, an increase from HK$34.3 million in 2024[19] - The proposed final dividend is HK2.00 cents per share, down from HK4.00 cents in 2024, resulting in a total distribution of HK4.25 cents per share for the year, a decrease of 32% compared to last year[52][57] - The authorization for the Directors to allot additional shares during the Relevant Period is generally and unconditionally approved, not exceeding 20% of the aggregate issued share capital[40] - Shareholders may appoint proxies to attend and vote at the meeting, and a proxy need not be a member of the Company[48] Strategic Plans and Market Expansion - The company plans to continue its market expansion in China, particularly in Shenzhen and Hangzhou[15] - The company will maintain a prudent strategy while monitoring market developments closely to capture opportunities in key markets like Shenzhen and Hangzhou[81] - The company continues to explore potential sales or joint ventures for the Cecil Central Residence project, which has a total approved gross floor area of 1,708,648 square feet[102] Management and Governance - The Company Secretary is responsible for the notice of the Annual General Meeting[45] - The company has appointed an external professional firm to review internal controls, identifying some minor weaknesses that will be addressed[182] - The environmental policy is aligned with all relevant environmental legislation, and a performance review has been conducted[183] - The collective efforts of the management team and staff have strengthened the company's market position and created sustainable value for shareholders[110] Economic Context - The Malaysian economy achieved a growth of 4.4% in Q2 2025, driven by robust domestic demand and increased household spending[100] - The Central Government has implemented supportive measures to stabilize the property market, including relaxing home purchase restrictions and lowering mortgage rates[79] - The Hong Kong property market is expected to see a 3-5% rise in home prices, reflecting a cautiously optimistic outlook despite global economic challenges[106][107] Key Personnel - Dr. Chao has focused on investment, asset management, coding, and digital assets as key areas of research[127] - Mr. Sun has over 30 years of experience in marketing and distribution of consumer products in Hong Kong and Southeast Asia[135] - Mr. Lee is the Chairman and CEO of DH International Group Holdings Ltd and has been a Chartered Valuation Surveyor since 1973[136]
卓能(集团)(00131) - 2025 - 年度财报