Financial Performance - Revenue for the year 2022 was HK$817,867,000, a decrease of 45.2% compared to HK$1,492,385,000 in 2021[7] - Profit from operations for 2022 was HK$85,579,000, down 65.7% from HK$249,466,000 in 2021[7] - Underlying loss for 2022 was HK$75,167,000, compared to a profit of HK$147,646,000 in 2021[7] - Profit for the year was HK$17.5 million, representing a decrease of 88.2% from HK$149.0 million in the previous year[11] - The underlying loss for the year was HK$75.2 million, compared to an underlying profit of HK$147.6 million in FY 2020/21[11] - Consolidated gross profit dropped by 81.4% to approximately HK$61.7 million, down from HK$331.1 million in the previous year[35] - Net profit for FY 2021/22 fell by 88.2% to approximately HK$17.5 million, compared to HK$149.0 million in FY 2020/21[36] Revenue Breakdown - Construction revenue for 2022 was HK$395,521,000, down 65.1% from HK$1,133,711,000 in 2021[7] - Revenue from the construction business decreased by approximately 65.1% to HK$395.5 million, down from HK$1,133.7 million in FY 2020/21[15] - Property leasing revenue increased to HK$200,687,000 in 2022 from HK$164,674,000 in 2021, a growth of 21.8%[7] - Revenue from the data centre leasing segment increased by 18.4% to HK$195.0 million, up from HK$164.7 million in FY 2020/21[16] Dividends - Dividends declared for 2022 amounted to HK$397,472,000, significantly higher than HK$113,564,000 in 2021[7] - The Board recommended a final dividend of 4.0 HK cents per share, bringing the total dividends for FY 2021/22 to 28.0 HK cents per share[14] - The total dividends for the year amounted to 28.0 HK cents per share, subject to shareholder approval at the upcoming annual general meeting[64] Liquidity and Leverage - Current ratio decreased to 0.63 in 2022 from 0.84 in 2021, indicating reduced liquidity[7] - Gearing ratio increased to 230.9% in 2022 from 161.6% in 2021, reflecting higher leverage[7] - Net gearing ratio rose to 198.1% in 2022 compared to 116.4% in 2021, indicating increased debt levels[7] - The Group's outstanding bank borrowings as of March 31, 2022, were approximately HK$4,907 million, an increase from approximately HK$4,005 million in the previous year[38] Assets and Liabilities - The Group's total assets as of 31 March 2022 were HK$10.67 billion, an increase from HK$9.84 billion in the previous year[8] - Total liabilities increased to HK$8.55 billion from HK$7.36 billion in the previous year[8] - As of March 31, 2022, the Group's total bank borrowings amounted to approximately HK$4,837 million, with net current liabilities of approximately HK$3,149 million, resulting in a current ratio of 0.63 times[39][41] Future Projects and Developments - The Group plans to develop a luxury residential project in Nanning City, Guangxi Province, with an estimated gross floor area of approximately 1,100,000 square feet[27] - The Grand Marine project is expected to contribute revenue and profits in the financial year 2022/23 following the hand-over of pre-sold units[28] - The construction project at Pau Chung Street is scheduled for completion in the first half of 2023, with a gross floor area of approximately 31,000 square feet[23] Corporate Governance - The Company has complied with all provisions of the Corporate Governance Code throughout FY 2021/22[129] - The Company emphasizes the importance of good corporate governance practices, including sound internal controls and accountability to shareholders[163] - The Board currently comprises eight members, ensuring diverse expertise and governance[166] - The Company has established three Board committees: Remuneration Committee, Audit Committee, and Nomination Committee[188] Environmental and Social Responsibility - The Group's construction and data center leasing segments have established environmental management systems to protect the environment[72] - The Company has established an environmental management system certified to ISO 14001:2004 standards[74] - The Company plans to publish its Environmental, Social and Governance Report within five months after the financial year-end date[76] Employee and Director Information - The total remuneration for employees for FY 2021/22 was approximately HK$144.4 million, with a total of 181 employees as of March 31, 2022[52][56] - The company has a diverse board with members having extensive experience in finance, banking, and corporate governance[146] - The company secretary, Mr. Leung Wai Chuen, has over 31 years of experience in auditing, accounting, and financial management[158] Related Party Transactions - The Company was involved in a connected transaction where a residential unit was sold for HK$15,333,000 to an associate of Mr. Lau Chi Wah[103] - The connected transaction was subject to reporting requirements but exempt from circular and independent shareholders' approval due to the applicable percentage ratios being below 5%[103] - The Company complied with relevant disclosure requirements for related party transactions during FY 2021/22[104]
佳明集团控股(01271) - 2022 - 年度财报