Financial Performance - The group's consolidated revenue for the year ended March 31, 2023, was HKD 88 million, an increase from HKD 87 million in 2022[15]. - The group recorded a loss of HKD 192 million for the year, compared to a loss of HKD 39 million in 2022, primarily due to a weak commercial property market in Hong Kong[15]. - Basic and diluted loss per share was HKD 0.504, compared to HKD 0.093 in 2022[15]. - The total employee compensation for the year was HKD 33 million, up from HKD 29 million in 2022[37]. - The group did not declare an interim dividend during the year and does not recommend a final dividend for the year ending March 31, 2023[187]. - The company's distributable reserves as of March 31, 2023, include a share premium of HKD 400,859,000 and retained earnings of HKD 840,854,000, totaling HKD 1,241,713,000[193]. Assets and Liabilities - Total assets of the group as of March 31, 2023, amounted to HKD 1.358 billion, a decrease from HKD 1.591 billion in 2022[14]. - Current assets reached HKD 0.698 billion, up from HKD 0.595 billion in 2022, representing a current ratio of 3.01 times compared to 1.66 times in the previous year[14]. - The equity attributable to ordinary shareholders was HKD 1.036 billion, down from HKD 1.234 billion in 2022[14]. - As of March 31, 2023, the group's bank deposits and cash amounted to HKD 167 million, representing 12.3% of total assets, up from 6.9% in 2022[18]. - The total debt ratio as of March 31, 2023, was 23.0%, up from 20.8% in 2022[32]. - The net debt as of March 31, 2023, was HKD 145 million, down from HKD 221 million in 2022[32]. - The total bank borrowings as of March 31, 2023, were HKD 313 million, a decrease from HKD 332 million in 2022[33]. Real Estate Development - The pre-sale rate for the Xie Fei Road project exceeded 76% as of March 31, 2023, despite a challenging market environment[12]. - The group launched two real estate redevelopment projects in Hong Kong, both of which progressed as planned and received strong market interest[12]. - Over 76% of the saleable units in the Shek Pai Tau project have been pre-sold as of March 31, 2023[27]. - The Anoakia project is expected to be completed in Q3 2023, with a total area of 11,335 square feet[26]. - The Graphite project in the UK is expected to be completed by the end of Q1 2025 and has received strong interest from overseas buyers[26]. - The Huang Zukeng project has won multiple awards and is being marketed to potential buyers in 2023[27]. - The group is exploring the inclusion of affordable housing elements in its Monterey Park Towne Centre project to enhance returns[26]. Market Outlook - The hotel business showed signs of recovery in the second half of the fiscal year, encouraged by a rebound in the tourism sector[9]. - The group is optimistic about the long-term outlook, anticipating improvements in the real estate market as interest rate hikes slow down in the second half of 2023[10]. - The company maintains a cautious optimism regarding potential opportunities in the second half of 2023 despite ongoing market challenges[31]. Governance and Management - The board of directors has authorized the delegation of daily management and operations to the CEO and senior management, while retaining decision-making power on major matters[43]. - The board consists of executive directors including the CEO and COO, and independent non-executive directors, ensuring a diverse composition[44][45]. - The company has maintained at least one independent non-executive director with appropriate professional accounting qualifications, in compliance with listing rules[48]. - The company has adopted a board diversity policy, considering various factors such as gender, age, and professional experience to promote sustainable development[47]. - The company has established three committees: the Remuneration Committee, the Nomination Committee, and the Audit Committee to oversee specific areas of governance[59]. - The Audit Committee is responsible for reviewing the completeness, accuracy, clarity, and fairness of the group's consolidated financial statements[66]. Risk Management - The company has established a risk management policy to manage risks associated with achieving business objectives[76]. - The risk management system includes risk identification, analysis, assessment, and treatment procedures to monitor and address the highest risks faced by the company[77]. - Key risks faced by the group include business risks, operational risks, and financial risks, influenced by economic conditions and regulatory changes in regions such as Hong Kong, the United States, and the United Kingdom[183][184]. Environmental, Social, and Governance (ESG) - The environmental, social, and governance (ESG) report covers property development and investment, as well as distribution of construction and interior decoration materials, with a focus on operations in Hong Kong, the United States, and the United Kingdom[95]. - The company has identified and assessed key ESG issues that are crucial for stakeholders, ensuring that historical data and key performance indicators are quantifiable[93]. - The company has committed to disclosing quantitative information in its reports to enhance stakeholder understanding of its ESG performance[93]. - The company promotes sustainable development principles in its property development business, ensuring compliance through responsible design and construction practices[141]. - The company has implemented strict anti-corruption measures to maintain high ethical standards and zero tolerance for bribery and fraud[102]. Employee Relations - Total employee count as of March 31, 2023, is 110, with an overall employee turnover rate of 26.9%[133]. - The employee turnover rate by gender shows 45.5% for males and 13.3% for females[133]. - Full-time employees enjoy various benefits, including medical insurance and multiple types of leave, enhancing employee satisfaction and retention[129]. - The company emphasizes a non-discriminatory recruitment process, utilizing multiple channels to attract suitable candidates[121]. - The company encourages employee development through internal and external training opportunities, offering up to HKD 6,000 in funding for relevant courses annually[126]. Community Engagement - The company participated in community service activities, contributing 30 hours to a program for visually impaired individuals in January 2023[158]. - The company has established compensation policies to encourage employee participation in community welfare activities[158]. - The company has a focus on community investment in areas such as education, health, and culture[168].
宏基资本(02288) - 2023 - 年度财报