Financial Performance - The group reported a consolidated profit attributable to shareholders of HKD 91,356,972 for the year ended March 31, 2022, a decrease of 21.5% from HKD 116,262,504 for the previous year[17]. - Basic and diluted earnings per share for the year were HKD 0.095, down from HKD 0.118 in the previous year[17]. - Total revenue for the year ended March 31, 2022, was HKD 694,563,912, a decrease of 51.8% compared to HKD 1,442,829,063 in the previous year[178]. - Gross profit for the year was HKD 87,821,864, down 45.4% from HKD 160,600,989 in the prior year[178]. - The net profit for the year was HKD 91,277,986, representing a decline of 21.5% from HKD 116,186,190 in the previous year[178]. - The company reported a total comprehensive income of HKD 113,954,070 for the year, down from HKD 218,290,835 in the previous year[182]. - The company’s total equity attributable to owners was HKD 2,558,209,285 as of March 31, 2022, compared to HKD 2,403,276,021 the previous year, reflecting a growth of 6.4%[190]. Dividends and Shareholder Returns - The board proposed a final dividend of HKD 0.03 per share, consistent with the previous year's final dividend[18]. - A mid-term dividend of HKD 0.005 per share was distributed, totaling HKD 4,827,490, with a proposed final dividend of HKD 0.03 per share, amounting to approximately HKD 28,450,000[65]. - The company aims to balance sufficient capital for business development and shareholder returns, considering factors such as actual and expected performance, liquidity, and future expansion plans when determining dividends[145]. Investments and Acquisitions - The group completed the acquisition of residential property at 26 Royal Bay, 8 Whitehead Road, for long-term investment purposes[41]. - The group expects the project at 1 South Bay Road to be topped out around Q4 2022 and completed in Q2 2023[31]. - The group plans to launch a new hybrid smartwatch series designed and developed in-house, to be sold under licensed and proprietary brands[38]. - The group aims to seek safe and high-value investment opportunities in various regional markets amid global inflation and rising interest rates[32]. - The group completed the sale of three villas in a joint venture project at 45 Tai Tam Road, with the revenue included in the consolidated results for the year[24]. Financial Position and Borrowings - As of March 31, 2022, the total borrowings of the group amounted to approximately HKD 4,620,000,000, an increase of about HKD 528,000,000 compared to the previous year[44]. - The capital-to-debt ratio as of March 31, 2022, was 1.25, slightly up from 1.24 in the previous year, calculated based on long-term borrowings of approximately HKD 3,281,000,000 and shareholder equity of approximately HKD 2,615,000,000[44]. - The total cash and bank balances as of March 31, 2022, were approximately HKD 1,100,000,000, compared to HKD 1,095,000,000 in the previous year[44]. - 85% of the group's borrowings were in HKD, with 11% in CAD, 2% in GBP, 1% in JPY, and 1% in USD as of March 31, 2022[48]. - As of March 31, 2022, approximately HKD 6,058,000,000 worth of properties and fixed deposits were pledged as collateral for bank financing[50]. Corporate Governance - The company has maintained compliance with the corporate governance code as per the listing rules, with some deviations noted in the annual report[94]. - The board consists of nine members, including five executive directors, one non-executive director, and three independent non-executive directors[108]. - The company has established three committees to assist the board in fulfilling its responsibilities, including the audit and risk management committee, nomination committee, and remuneration committee[107]. - The board has confirmed the independence of all independent non-executive directors according to the guidelines set out in the listing rules[128]. - The company has adopted a board diversity policy since 2016, considering factors such as gender, race, language, culture, and professional experience[132]. Audit and Risk Management - The independent auditor's report confirms that the consolidated financial statements fairly reflect the group's financial position as of March 31, 2022[155]. - The audit identified the valuation of investment properties as a key audit matter due to the significant estimates and judgments involved[159]. - Management is responsible for preparing financial statements that are free from material misstatement due to fraud or error, and for maintaining effective internal controls[166]. - The auditors assessed the appropriateness of accounting policies and the reasonableness of accounting estimates and disclosures made by management[172]. - The board believes that the current risk management and internal control systems are sufficient and effective[135]. Operational Highlights - The watch manufacturing and accessories segment experienced growth in both revenue and profit during the review period[19]. - The hotel operations showed improvement with increased occupancy rates and rental income compared to the previous year[23]. - The company reported a net cash outflow from operating activities of HKD 417,390,159 for the year, compared to an inflow of HKD 632,294,503 in the previous year[195]. - The company reported a decrease in inventory of HKD 6,004,903, contrasting with an increase of HKD 67,426,886 in the previous year[195]. Shareholder Rights - Shareholders holding at least 10% of the paid-up capital have the right to request the board to convene a special general meeting[146]. - A minimum of 5% of voting shareholders or at least 100 shareholders is required to propose a resolution at the annual general meeting or special general meeting[149].
NATIONAL ELEC H(00213) - 2022 - 年度财报