Financial Performance - For the fiscal year ending March 31, 2023, the profit attributable to equity holders was HKD 19,756,175, a decrease of 49% from HKD 38,980,362 in 2022[18] - The earnings per share for the year was HKD 0.16, down from HKD 0.32 in the previous year[18] - The group's revenue for the year ended March 31, 2023, was HKD 38.6 million, a 390% increase compared to the previous year, primarily due to the sale of a property interest and increases in rental and interest income[20] - Profit attributable to equity holders decreased by 49.3% to HKD 19.8 million, with earnings per share at HKD 0.16, down from HKD 0.32 last year[20] - The group recorded a fair value loss of HKD 20.8 million on investment properties, compared to a profit of HKD 3 million in 2022[20] - Rental income from operations showed a slight improvement, contributing an additional HKD 0.8 million to the group's net profit[22] - The group experienced a foreign exchange loss of HKD 9.7 million due to the depreciation of the RMB against the HKD[24] Dividends - The board proposed a final dividend of HKD 0.11 per share and a special dividend of HKD 0.12 per share, consistent with the previous year's dividends[19] - The total dividend for the year amounts to HKD 0.34 per share, unchanged from 2022[19] - The company is committed to maintaining its dividend policy despite the decline in profits, reflecting a stable cash flow management strategy[19] - The board will consider various factors, including financial performance and capital needs, when determining dividend distribution[41] Ownership and Structure - The company maintains a 100% ownership in its subsidiaries, which include property management and investment firms[15] - The company has a diversified portfolio with joint ventures holding between 25% to 50% in various property development and investment companies[15] - The board of directors includes experienced professionals with extensive backgrounds in property management and finance[4][5][6] Economic Environment - The local economy showed signs of recovery with GDP growth of 2.7% and private consumption growth of 13% in the first quarter of 2023[27] - The group plans to prudently utilize its resources to ensure sustainable returns for shareholders amid global economic uncertainties[27] Corporate Governance - The company has been actively working on improving its corporate governance standards to enhance investor confidence and support sustainable growth[154] - The company has adopted the corporate governance code as per the listing rules, with some deviations noted regarding the roles of the chairman and CEO[155] - The company has established a comprehensive internal control system to ensure transparency and accountability to shareholders[154] - The board promotes an open culture to encourage contributions from all directors, ensuring that decisions reflect the consensus of the board[165] - The board held nine meetings during the fiscal year 2022/2023, with all executive directors attending all meetings[175] Environmental, Social, and Governance (ESG) Initiatives - The company emphasizes the importance of sustainable development and integrates environmental, social, and governance (ESG) factors into its business model[80] - The board is responsible for determining and reporting the company's ESG strategy and performance[81] - The company has implemented energy efficiency measures, resulting in a reduction in electricity and water consumption, as well as waste generation[95] - The company conducts annual climate risk assessments to identify and manage climate-related risks effectively[102] - The company has developed emergency plans to mitigate disruptions and financial losses due to extreme weather events[102] Employee and Labor Practices - The company reported zero employee turnover in the current year, maintaining a competitive compensation level for employees[106] - The company emphasizes the importance of employee training and development, funding educational programs and encouraging participation in workshops[109] - The company has implemented regular reviews to ensure compliance with labor laws and regulations, with no significant impacts reported[111] Shareholder Information - The total shareholding of the chairman, Mr. Zhong Qiwei, is 19,323,600 shares, representing 15.98% of the issued share capital[65] - Mr. Zhong Renwei holds 23,221,680 shares, accounting for 19.20% of the issued share capital[65] - Mr. Zhong Yingwei owns 22,579,680 shares, which is 18.67% of the issued share capital[65] - The company received valid acceptances for a total of 46,953,629 shares, representing approximately 38.82% of the total issued shares during the voluntary unconditional cash offer period[147] Compliance and Legal Matters - The company has not faced any corruption litigation cases during the reporting period[147] - The company has not reported any significant legal cases related to compliance with environmental regulations during the reporting year[118] Supplier and Customer Relations - The top five customers accounted for 72.7% of total revenue, with the largest customer contributing 59.6%[76] - The total amount procured from the top five suppliers was less than 30% of the total procurement[77] - The company employed 27 suppliers in Hong Kong during the year, a decrease from 34 suppliers in the previous year[112]
华厦置业(00278) - 2023 - 年度财报