Financial Performance - For the fiscal year ended June 30, 2023, the Group's consolidated revenue decreased by approximately HK$148.3 million or 24.56% from HK$603.9 million to HK$455.6 million[20]. - The loss attributable to owners of the Company was HK$98.3 million, compared to a profit of HK$12.1 million in the previous year[22]. - The substantial decrease in gross profit of approximately HK$78.9 million was mainly due to a write-down of approximately HK$49.9 million for properties under development[22]. - The Group recognized a loss of approximately HK$27.8 million from the change in fair value of investment properties, compared to a gain of approximately HK$98.5 million in the previous fiscal year[22]. - Finance costs increased by approximately HK$29.1 million, as a significant portion was not capitalized as part of property development costs but recorded directly as expenses[22]. - Basic loss per share was HK14.39 cents, compared to basic earnings per share of HK1.78 cents in 2022[22]. Jewellery Segment - The Group specializes in manufacturing fine jewellery in precious metals set with various gemstones, targeting the middle to upper segments of the market[14]. - The Group's revenue from the jewellery segment decreased by approximately HK$157.3 million or 26.6% from HK$592.2 million last year to HK$434.9 million for the year ended June 30, 2023[27]. - The jewellery segment recorded a profit of approximately HK$2.7 million for the year ended June 30, 2023, down from approximately HK$35.6 million last year, primarily due to decreased revenue and unavoidable fixed operating expenses[27]. Property Segment - Revenue from rental income in the property segment amounted to approximately HK$15.7 million, an increase of HK$7.4 million from HK$8.3 million in 2022[32]. - The Group currently holds 75% interest in "One Continental," a 28-storey premium office and retail building with a gross floor area of approximately 86,970 sq.ft[33]. - The Group owns 90% interest in a site developed into a 25-storey residential project named "Amber Place," with a gross floor area of approximately 29,147 sq.ft, and obtained the occupation permit in July 2023[34]. - The Group's focus in the first half of 2023 was on securing high-quality tenants, resulting in consistent rental income and enhanced real estate portfolio value[46]. Market Outlook - The Group expects a continuous challenging macro backdrop in the second half of 2023, with a modest recovery anticipated in 2024[44]. - The real estate market in Hong Kong faced challenges due to rising interest rates and a slower economic recovery in China, impacting the residential, investment, and land sectors[46]. - The Group plans to adopt a prudent approach in real estate business development and financial positions to provide stable returns to shareholders[46]. Financial Position - As of June 30, 2023, the Group's gearing ratio was 0.3215, an increase from 0.2903 in 2022, indicating a rise in financial leverage[65]. - Cash and cash equivalents decreased to HK$97,101,000 as of June 30, 2023, down from HK$144,008,000 in 2022, primarily due to increased financial and construction costs[66]. - Bank loans denominated in HK$ and US$ amounted to approximately HK$1,058,377,000 as of June 30, 2023, compared to HK$1,027,421,000 in 2022[65]. - The Group's other borrowings, including amounts due to joint ventures and related companies, were approximately HK$122,007,000 as of June 30, 2023, compared to HK$117,216,000 in 2022[65]. Share Option Schemes - The 2010 Share Option Scheme had 12,200,000 options valid and outstanding as of June 30, 2023, following a share consolidation[89]. - The total number of shares available for issue under the 2020 Share Option Scheme is 68,311,825 shares, representing 10% of the shares of the Company in issue as of September 26, 2023[113]. - The 2020 Share Option Scheme is valid for ten years from December 22, 2020, and aims to incentivize eligible persons to enhance the Company's value[106][107]. - No share options have been granted under the 2020 Share Option Scheme since its adoption[111]. Corporate Governance - The Company has adopted the Corporate Governance Code and complied with it during the year ended June 30, 2023, with some deviations explained[175]. - The roles of the Chairman and the Chief Executive Officer are not separated, which is a deviation from Code provision C.2.1[177]. - The Company does not have an internal audit function as of June 30, 2023, but believes its current organizational structure provides sufficient internal control and risk management[178]. - The Board comprises four Executive Directors and five Non-executive Directors, including four Independent Non-executive Directors, meeting the requirement of at least one-third representation[186][198]. Management and Leadership - The Chairman has been with the Group since 2000 and has been instrumental in strategizing its direction[129]. - The Managing Director has over 50 years of experience in the jewellery industry and is responsible for daily operations and strategic planning[135]. - The Group's management team includes individuals with diverse backgrounds in various industries, enhancing strategic decision-making capabilities[145]. - The Group aims to leverage the extensive experience of its directors to navigate market challenges and seize growth opportunities[145].
恒和集团(00513) - 2023 - 年度财报