Financial Performance - The group recorded a revenue of approximately HKD 38,029,000 for the fiscal year, an increase of about 14.0% compared to HKD 33,353,000 in the previous fiscal year[7]. - The group's loss before tax was approximately HKD 69,352,000, a decrease of about 51.7% from HKD 143,517,000 in the previous fiscal year[7]. - The company’s revenue for the fiscal year ending June 30, 2023, was HKD 38,029,000, an increase from HKD 33,353,000 in the previous year, representing a growth of approximately 14.8%[162]. - The company reported a loss before tax of HKD (69,352,000) for the fiscal year, an improvement from a loss of HKD (143,517,000) in the previous year[162]. - Total assets as of June 30, 2023, were HKD 1,839,235,000, a decrease from HKD 1,959,069,000 in the previous year, reflecting a decline of about 6.1%[163]. - The company's net asset value decreased to HKD 1,616,943,000 from HKD 1,685,587,000, indicating a reduction of approximately 4.1%[163]. - The company did not recommend a final dividend for the year, consistent with the previous year where no dividend was declared[158]. - The company’s reserves available for distribution to shareholders were approximately HKD 1,448,885,000, down from HKD 1,574,495,000 in the previous year, a decrease of about 8.0%[169]. - Total liabilities decreased to HKD (222,292,000) from HKD (273,482,000), reflecting a reduction of approximately 18.7%[163]. Property Market Insights - The local GDP grew by 1.5% year-on-year during the fiscal year, indicating a continued recovery in the Hong Kong economy[11]. - The total number of residential property sale agreements received by the Land Registry decreased by 18% compared to last year[12]. - Overall unit prices in the residential property market fell by 1% in the last quarter, while overall unit rents increased by 3%[12]. - The average rental yield for residential properties rose to 2.5% by June[12]. - The total supply of private units is expected to remain high at an estimated 105,000 units as of June 2023, reflecting the government's efforts to increase land and housing supply[12]. - The group holds a cautious optimistic view on the property market despite the uncertain global economic outlook[8]. - The group remains optimistic about the long-term prospects of commercial, industrial, and residential property markets in Hong Kong, the UK, and Japan[31]. Investment Strategies - The group plans to adopt a prudent approach to property acquisitions and sales, while continuously exploring potential investment properties and development projects to increase recurring income[8]. - The group aims to expand its securities investment and trading business as well as its loan financing business to achieve stable recurring income growth[8]. - The group aims to continue exploring potential property development opportunities both in Hong Kong and overseas to enhance shareholder value[17]. - The group expects the property investment segment to provide substantial and stable income sources in the long term[31]. - The group has implemented credit policies and procedures to mitigate credit and investment risks, including due diligence and collateral requirements[38]. Securities and Loan Financing - The securities investment and trading segment reported a net fair value loss of approximately HKD 55,428,000, compared to HKD 46,542,000 in the previous year[34]. - Interest income from the securities investment segment was approximately HKD 4,230,000, down from HKD 10,771,000 in the previous year[34]. - The loan financing segment recorded interest income of approximately HKD 3,526,000, representing 9.3% of total income, an increase from 2.2% in the previous year[36]. - The group’s receivables from loan financing increased to approximately HKD 33,507,000, up from HKD 6,565,000 in the previous year[36]. - The group’s fixed-rate loans have interest rates ranging from 3.33% to 20%[36]. Corporate Governance - The company has adopted the corporate governance code as per the Stock Exchange Listing Rules, ensuring compliance throughout the year[69]. - The roles of Chairman and CEO are clearly separated, with Mr. Pang Wei Xin serving as Chairman and Mr. Li Yong Xian as CEO[70]. - The company has maintained strict adherence to the code of conduct regarding securities trading by directors, with no violations reported during the year[71]. - The company has a diverse board with independent non-executive directors, enhancing its governance structure[63][64][66][67]. - The company is committed to sustainable development, with various committees in place to oversee these initiatives[63][67]. - The company has established appropriate insurance coverage for directors against liabilities arising from corporate activities[83]. Risk Management - The board is responsible for maintaining effective risk management and internal control systems to ensure the achievement of strategic objectives[120]. - The internal control system is designed to protect the group's assets from unauthorized use and ensure compliance with applicable laws and regulations[121]. - The board has reviewed the effectiveness of the internal control system and found no significant issues, although areas for improvement have been identified[122]. - The company is committed to ensuring compliance with legal and regulatory requirements related to corporate governance[119]. Shareholder Communication - The company aims to provide high levels of disclosure and financial transparency to its shareholders and investors[129]. - The board will ensure the presence of external auditors at the annual general meeting to address questions related to auditing practices and independence[129]. - The company aims to promote effective communication with shareholders through its updated shareholder communication policy, ensuring timely and reliable information is provided[131]. - The board of directors is responsible for maintaining ongoing dialogue with shareholders, particularly during annual general meetings[134]. Employee and Director Compensation - The total employee cost for the year was approximately HKD 17,977,000, a decrease from HKD 18,663,000 in the previous year[58]. - Executive director Mr. Pang has a service agreement with a monthly remuneration of HKD 570,000, plus discretionary bonuses[74]. - Executive director Mr. Lee has a service agreement with a monthly remuneration of HKD 114,000, plus discretionary bonuses[75]. - The remuneration committee held two meetings to review the compensation packages of all directors and senior management[86]. Shareholder Structure - As of June 30, 2023, the total number of shares held by director Pang Wei Xin is 54,429,600, representing approximately 9.60% of the total issued shares[177]. - Pang Wei Xin's controlled corporation, Virtue Partner Group Limited, holds 334,641,966 shares, accounting for approximately 59.03% of the total issued shares[177]. - Major shareholder Dong Jing Yi holds a total of 389,071,566 shares, which is approximately 68.63% of the total issued shares[183]. - The total number of shares held by director Li Yong Xian is 4,318,000, representing approximately 0.76% of the total issued shares[177].
宏辉集团(00183) - 2023 - 年度财报