Financial Performance - The company recorded revenue of HKD 238,400,000 for the fiscal year ending March 31, 2023, a decrease from HKD 263,000,000 in the same period last year, primarily due to challenges in the Hong Kong office market[50]. - Operating profit for the year was HKD 157,600,000, down from HKD 191,400,000 in the previous year, attributed to reduced rental income and increased leasing agency commissions and utility expenses[50]. - The group’s annual profit decreased to HKD 64,400,000, down from HKD 234,400,000 in the previous year, with attributable profit to shareholders at HKD 59,800,000, compared to HKD 211,800,000 last year[53]. - The company reported a share of results from joint ventures of HKD 5,300,000, a decrease from HKD 23,300,000 in the same period last year, mainly due to losses from the Hong Kong hotel operations[50]. - The group recorded a loss of HKD 50,800,000 for the fiscal period, primarily due to loan interest and operating losses, compared to a profit of HKD 28,300,000 in the previous year[59]. Dividends and Reserves - The company reported a total distributable reserve of HKD 1,258,559,000 as of March 31, 2023, compared to HKD 1,197,683,000 in 2022, reflecting an increase of approximately 5.06%[21]. - The company proposed a final dividend of HKD 0.015 per share for the year ended March 31, 2023, down from HKD 0.020 per share in 2022[20]. Customer Concentration - The top five customers accounted for approximately 33% of the total revenue, consistent with the previous year, while the largest customer represented about 12% of total revenue, up from 11%[29]. Credit Risk and Financial Instruments - The company assumes a significant increase in credit risk if contractual payments are overdue by more than 30 days, unless there is reasonable evidence to the contrary[8]. - The company’s financial instruments are classified and measured at fair value through other comprehensive income under specific conditions[1]. - The company’s major accounting policies include assessing credit risk based on both quantitative and qualitative data, including external market indicators[6]. - The company’s financial assets are subject to impairment under the expected credit loss model, which considers significant increases in credit risk since initial recognition[5]. Market Conditions - The office rental market in Hong Kong faced significant challenges, with rental rates and occupancy levels declining, marking the lowest levels in nearly 20 years[50]. - The company anticipates continued resilience in the Hong Kong office market, supported by low interest rates, despite the expected increase in new office supply[50]. - The tourism sector in Thailand showed signs of recovery, with over 11,000,000 tourists visiting in 2022 compared to only 428,000 in 2021, although still far from the pre-pandemic level of nearly 40,000,000 tourists in 2019[50]. Property Performance - The company’s investment properties in Thailand recorded a profit of HKD 38,800,000 for the year, compared to a loss of HKD 11,800,000 in the previous year[50]. - The rental income from the property in Central, Hong Kong, was HKD 56,900,000, slightly up from HKD 57,400,000 in the previous year, despite a drop in average rent[53]. - The occupancy rate of the property at 68 Yee Wo Street, Causeway Bay, was 89%, up from 86% a year earlier, with rental income of HKD 100,000,000, down from HKD 115,100,000[53]. - The average occupancy rate of Pullman Bangkok Hotel G was 55%, significantly improved from 24% in the previous year, with revenue of THB 400,700,000 (approximately HKD 91,000,000)[59]. - The investment in the two hotels in Thailand has returned to profitability, reflecting improvements in the tourism sector following the lifting of travel restrictions[59]. Governance and Compliance - The company emphasizes compliance with laws and regulations, employing external compliance and legal advisors to ensure transactions are conducted within applicable legal frameworks[96]. - The board has adopted anti-corruption policies to enhance business conduct standards and protect the group's reputation[69]. - 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[157]. - The independent auditor confirmed that there were no related party transactions constituting connected transactions, except as disclosed[126]. Risk Management - The risk management and internal control system consists of five components, designed to manage risks associated with achieving business objectives[192]. - The board has reviewed the effectiveness of the group's risk management and internal control systems, finding the evaluation results satisfactory[194]. Corporate Social Responsibility - The company is committed to environmental sustainability, participating in green office initiatives and promoting energy-saving and waste recycling programs[111]. - The group made charitable and other donations of approximately HKD 748,000 during the fiscal year, an increase from HKD 336,000 in 2022[115].
建生国际(00224) - 2023 - 年度财报