Financial Performance - For the fiscal year ending March 31, 2022, the total revenue recorded by the company was HKD 263,000,000, a slight decrease from HKD 274,400,000 in the previous year[7] - The operating profit for the year was HKD 191,400,000, down from HKD 208,600,000 in the previous year, attributed to reduced rental income and increased maintenance costs[7] - The net profit attributable to shareholders for the year was HKD 211,800,000, compared to HKD 292,500,000 in the previous year, reflecting a significant decline[7] - Revenue for the year ended March 31, 2022, was HKD 263,023,000, a decrease of 4.9% from HKD 274,383,000 in the previous year[196] - Operating profit for the same period was HKD 191,428,000, down 8.2% from HKD 208,596,000[196] - Net profit for the year was HKD 234,422,000, a decline of 33.9% compared to HKD 354,911,000 in the prior year[200] - Earnings per share decreased to HKD 18.35 from HKD 25.35, reflecting a 27.0% drop[196] - Total comprehensive income for the year was HKD 211,909,000, down from HKD 422,821,000, indicating a 50.0% decrease[200] - The company reported a significant increase in property operating expenses to HKD 45,862,000 from HKD 39,137,000, representing a 17.5% rise[196] - Financial costs decreased to HKD 44,362,000 from HKD 66,856,000, a reduction of 33.6%[196] - The share of profits from associates was HKD 23,253,000, down from HKD 31,303,000, reflecting a 25.7% decline[196] - The company recognized a fair value loss on equity instruments of HKD 5,263,000 compared to a loss of HKD 968,000 in the previous year[196] Property Occupancy and Rental Income - The occupancy rate of the company's property in Kwun Tong was 80% as of March 31, 2022, down from 100% in the previous year, contributing rental income of HKD 59,500,000[9] - The property located at 68 Yee Wo Street, Causeway Bay, had an occupancy rate of 86% and contributed rental income of HKD 115,100,000, slightly down from HKD 119,600,000 in the previous year[9] - The occupancy rate of the Western Club Building in Central decreased to 86% from 92% in the previous year, generating rental income of HKD 57,400,000[10] - The commercial platform at Qiao Fa Building in Hong Kong achieved a rental rate of 100%, contributing rental income of HKD 20,600,000 for the year ended March 31, 2022, up from HKD 15,500,000 in the previous year[11] - The property in Shanghai, with a 7.7% stake, recorded an occupancy rate of 99% and contributed a profit of HKD 15,100,000, compared to HKD 8,900,000 in the previous year[12] - The three commercial buildings in Tokyo, with a 5.1% stake, had occupancy rates of 97%, 80%, and 70%, showing a decline from the previous year's rates of 93%, 91%, and 90% respectively[12] - The group's investment in Xianle Square in Shanghai had an occupancy rate of 79%, down from 84% in the previous year, with a fair value increase of HKD 3,900,000[13] Challenges and Market Conditions - The company faced challenges due to high inflation and rising interest rates, impacting the rental income from investment properties[7] - The overall economic recovery in Hong Kong has been slow, with the local economy significantly affected by the COVID-19 pandemic and related restrictions[7] - The group plans to cautiously invest in the coming year due to the ongoing border closures and rising interest rates[15] - The group is optimistic about the performance of its hotels in Thailand, expecting improvements this year[15] Corporate Governance and Management - The company emphasizes strong corporate governance, adhering to the corporate governance code as per the listing rules, ensuring effective management and higher shareholder value[97] - The board consists of experienced members with over 40 years of management experience across various industries, including banking and finance[91] - The independent non-executive directors bring diverse expertise, enhancing the company's strategic decision-making capabilities[91] - The company has established a framework for effective management and a healthy corporate culture, which is essential for long-term success[97] - The board consists of eight directors, including five executive directors and three independent non-executive directors, meeting the requirement of having more than one-third independent directors[101] - The chairman and the managing director roles are clearly separated to enhance independence and accountability[102] - The company has arranged appropriate directors' and officers' liability insurance to protect against risks arising from the group's business[106] - The board regularly reviews corporate governance practices and compliance with regulations[100] - The company encourages directors to participate in professional development courses related to corporate governance and regulatory updates[112] Financial Position and Reserves - The group maintained a healthy financial position with cash and bank balances of HKD 227,300,000 as of March 31, 2022, compared to HKD 186,800,000 on March 31, 2021[15] - Total bank borrowings amounted to HKD 2,281,000,000 as of March 31, 2022, unchanged from the previous year[15] - The group's total liabilities to total assets ratio was 20.5% as of March 31, 2022, slightly down from 20.8% a year earlier[15] - The net debt to total assets ratio was 18.4% as of March 31, 2022, compared to 19.1% on March 31, 2021[15] - The group’s distributable reserves amounted to HKD 1,197,683,000 as of March 31, 2022, up from HKD 1,099,403,000 a year earlier[28] Shareholder Information - The final dividend proposed is HKD 0.02 per share, compared to zero in the previous year, with a total payout of HKD 11,540,000 for the interim dividend[24] - As of March 31, 2022, the total number of shares held by the directors amounts to 528,683,206, representing 45.81% of the total shares[41] - The largest shareholder, Forward Investments Inc., holds 283,200,215 shares, accounting for 24.54% of the total shares[48] - The second-largest shareholder, Intercontinental Enterprises Corp., possesses 215,768,260 shares, which is 18.70% of the total shares[48] - The company allows shareholders holding at least 10% of the paid-up capital to request a special general meeting[158] Environmental and Social Responsibility - The company emphasizes environmental sustainability through energy management and waste reduction initiatives[54] - The company promotes the use of electronic billing and receipts among tenants to enhance environmental practices[54] - The company is actively involved in community and educational initiatives, reflecting its commitment to corporate social responsibility[88] - The group made charitable donations of approximately HKD 336,000 in the fiscal year, down from HKD 660,000 in the previous year[61] Audit and Compliance - The financial statements for the year ended March 31, 2022, were audited by Zheng Zheng CPA Limited, which is eligible for reappointment[81] - The audit committee held two meetings during the fiscal year to review the interim and annual financial statements and ensure the integrity of financial reporting[147] - The external auditor received a fee of HKD 620,000 for statutory audit services for the fiscal year ending March 31, 2022, compared to HKD 600,000 in the previous year[152] - The company ensures that all reasonable measures are taken to prevent breaches of disclosure regulations related to insider information[129]
建生国际(00224) - 2022 - 年度财报