Audit and Financial Reporting - The independent auditor's report confirms that the consolidated financial statements of Capital Strategy Real Estate Limited fairly reflect the group's financial position as of March 31, 2023, in accordance with Hong Kong Financial Reporting Standards[11]. - The auditor has assessed the appropriateness of the accounting policies adopted by the directors and the reasonableness of accounting estimates and related disclosures[4]. - The auditor has identified and evaluated the risks of material misstatement in the consolidated financial statements due to fraud or error, and designed audit procedures to address these risks[2]. - The auditor's conclusion is based on sufficient and appropriate audit evidence obtained up to the date of the auditor's report, indicating that future events may affect the group's ability to continue as a going concern[7]. - The auditor has evaluated the overall presentation, structure, and content of the consolidated financial statements, including disclosures, to ensure they reflect the transactions and events fairly[7]. - The audit partner responsible for the independent auditor's report is Ms. Hung Shuk Fan[9]. - The auditor has maintained professional skepticism and exercised professional judgment throughout the audit process[2]. - The auditor has communicated with the governance team regarding the planned audit scope, timing, and significant audit findings[7]. - The auditor has confirmed independence and complied with relevant ethical requirements throughout the audit[8]. - The auditor's report does not provide separate opinions on key audit matters but describes them based on professional judgment[13]. Financial Performance - The total revenue for the fiscal year ending March 31, 2023, was approximately HKD 804.3 million, an increase of 91.3% compared to HKD 420.5 million in the previous year[37]. - The profit attributable to the company's owners was HKD 335.7 million, a decrease of 71.0% from HKD 1,156.2 million in the previous year, primarily due to the absence of fair value gains from properties sold[37]. - The company's total external borrowings amounted to HKD 11,151.9 million, with a debt-to-asset ratio of 40.2%, up from 39.0% the previous year[37]. - The basic earnings per share for the reporting year was HKD 3.58, down from HKD 12.26 in the previous year[38]. - The group maintained a solid liquidity position with bank balances and cash of approximately HKD 3,162 million, compared to HKD 3,479.3 million the previous year[37]. - The company proposed a final dividend of HKD 0.42 per share, consistent with the previous year[38]. - The company reported a consolidated profit attributable to shareholders of approximately HKD 340 million for the fiscal year ending March 31, 2023[59]. Property Valuation and Investments - As of March 31, 2023, the group has properties held for sale valued at HKD 6,386,824,000, with interests in joint ventures amounting to HKD 6,956,267,000, and development properties held for sale valued at HKD 10,423,927,000[15]. - The group's investment properties, located in mainland China, are valued at HKD 3,356,142,000, representing 12.09% of the total assets[18]. - The valuation of properties held for sale involves significant management estimates, particularly referencing independent qualified property valuers[15]. - The group’s valuation assessment includes understanding the valuation process, methods used, and the qualifications of the valuers involved[18]. - The total value of properties held for sale and investment properties is significant to the overall consolidated financial statements, necessitating careful evaluation[18]. Corporate Governance - The company has committed to high standards of corporate governance and compliance with the listing rules[37]. - The company complies with the Bermuda Companies Act and the Hong Kong Stock Exchange Listing Rules, ensuring high standards of corporate governance[125]. - All independent non-executive directors have confirmed their independence, and the nomination committee conducts an annual review of their independence[132]. - The board's composition considers diversity in terms of age, experience, culture, gender, and educational background[115]. - The company has a policy to ensure that all directors must retire at least once every three years[128]. - The audit committee's main role includes reviewing financial reports, risk management, and maintaining appropriate relationships with external auditors[121]. - The company has established four committees, including the audit committee and remuneration committee, to oversee specific matters and ensure effective governance[144]. - The board is responsible for setting corporate governance policies and monitoring compliance with legal and regulatory requirements[152]. Employee and Diversity Initiatives - The total number of employees as of March 31, 2023, was 106, down from 115 the previous year[42]. - The company maintains a gender diversity in its workforce, with 48% male and 52% female employees as of March 31, 2023[119]. - The board is satisfied with the effectiveness of its diversity policy, having appointed a female director on April 20, 2023, representing 9.1% of the board[166]. - The company actively recruits female employees to promote a diverse workplace[119]. Environmental and Social Responsibility - The company aims to integrate sustainable practices into its business operations, creating long-term value for customers, employees, business partners, shareholders, investors, and the community[194]. - The company is committed to exploring additional strategies to support the transition to a carbon-neutral economy[193]. - The company has engaged with stakeholders to understand their expectations and priorities regarding environmental, social, and governance issues[194]. - The company has implemented environmental initiatives by utilizing technology, such as replacing business travel with virtual meetings and promoting a paperless office[193]. - The company is focused on achieving carbon neutrality goals set by Hong Kong and China by 2050 and 2060, respectively[191]. Future Projects and Market Outlook - The luxury residential sector achieved significant sales performance despite the impact of the pandemic in Hong Kong and mainland China[60]. - Upcoming residential projects include developments near MTR Wong Chuk Hang Station and Yau Tong Station, with a focus on well-designed units in prime locations[61]. - The Novotel hotel redevelopment project is progressing well, with residential units expected to begin pre-sales by the end of 2023[64]. - The company remains cautiously optimistic about the real estate market in first-tier cities, particularly in retail properties, amid anticipated government policies to stimulate the economy[64]. - The group is making steady progress on a joint commercial development project in Central, expected to provide approximately 432,000 square feet of premium office space and luxury hotel facilities, with completion anticipated by the end of 2025[67].
资本策略地产(00497) - 2023 - 年度财报