成都海贼王644集

1HongKongExchangesandClearingLimitedandTheStockExchangeofHongKongLimitedtakenoresponsibilityforthecontentsofthisannouncement,makenorepresentationastoitsaccuracyorcompletenessandexpresslydisclaimanyliabilitywhatsoeverforanylosshowsoeverarisingfromorinrelianceuponthewholeoranypartofthecontentsofthisannouncement.
CHEVALIERINTERNATIONALHOLDINGSLIMITED其士國際集團有限公司*(IncorporatedinBermudawithlimitedliability)(StockCode:25)ANNOUNCEMENTOFRESULTSFORTHEYEARENDED31MARCH2019RESULTSTheDirectorsofChevalierInternationalHoldingsLimited(the"Company")arepleasedtoannouncetheauditedconsolidatedresultsoftheCompanyanditssubsidiaries(together,the"Group")fortheyearended31March2019,togetherwiththecomparativefiguressummarisedasfollows:CONSOLIDATEDINCOMESTATEMENTFORTHEYEARENDED31MARCH201920192018NoteHK$'000HK$'000Revenue56,892,7146,980,400Costofsales(6,005,433)(6,105,507)Grossprofit887,281874,893Otherincome,net668,32773,878Othergains,net7182,400154,484Gainondisposalsofsubsidiaries7231715,075Sellinganddistributioncosts(157,438)(146,941)Administrativeexpenses(357,347)(330,318)Operatingprofit623,4541,341,071Shareofresultsofassociates125,00357,918Shareofresultsofjointventures171,448(60,490)919,9051,338,499Financeincome843,21621,636Financecosts8(123,239)(92,309)Financecosts,net8(80,023)(70,673)220192018NoteHK$'000HK$'000Profitbeforetaxation9839,8821,267,826Taxation10(140,480)(296,344)Profitfortheyear699,402971,482Attributableto:ShareholdersoftheCompany654,561907,929Non-controllinginterests44,84163,553699,402971,482Earningspershare–basicanddiluted(HK$pershare)112.
173.
013CONSOLIDATEDSTATEMENTOFCOMPREHENSIVEINCOMEFORTHEYEARENDED31MARCH201920192018HK$'000HK$'000Profitfortheyear699,402971,482Othercomprehensive(expenses)/incomefortheyearItemsthatwillnotbereclassifiedtoprofitorlossChangeinfairvalueofinvestmentsatfairvaluethroughothercomprehensiveincome(16,154)–Fairvaluegain/(loss)ofpropertiesforownuse1,447(22,447)ItemsthatmaybereclassifiedsubsequentlytoprofitorlossExchangedifferenceontranslationofoperationsofoverseassubsidiaries,associatesandjointventures(251,026)393,900Changeinfairvalueofavailable-for-saleinvestments–1,248Impairmentlossonavailable-for-saleinvestmentstransferredtoconsolidatedincomestatement–3,377Fairvalueadjustmentsonthederivativefinancialinstrumentsdesignatedascashflowhedge1622,443Othercomprehensive(expenses)/incomefortheyear,netoftax(265,571)378,521Totalcomprehensiveincomefortheyear433,8311,350,003Attributableto:ShareholdersoftheCompany406,9601,259,846Non-controllinginterests26,87190,157433,8311,350,003Note:Itemsshownwithinothercomprehensiveincome/(expenses)aredisclosednetoftax.
4CONSOLIDATEDSTATEMENTOFFINANCIALPOSITIONASAT31MARCH2019Note20192018HK$'000HK$'000Non-currentassetsInvestmentproperties3,769,8353,791,245Property,plantandequipment3,161,3252,784,738Goodwill684,138681,839Otherintangibleassets63,52131,352Interestsinassociates474,452468,411Interestsinjointventures1,258,3181,112,486Investmentsatfairvaluethroughothercomprehensiveincome47,404–Available-for-saleinvestments–265,766Investmentsatfairvaluethroughprofitorloss331,013–Investmentsatamortisedcost30,851–Propertiesunderdevelopment434,051642,713Deferredtaxassets29,91642,171Othernon-currentassets107,61589,53610,392,4399,910,257CurrentassetsAmountsduefromassociates18,37118,575Amountsduefromjointventures569,085Amountsduefromnon-controllinginterests41,38239,025Investmentsatfairvaluethroughprofitorloss415,261430,805Investmentsatamortisedcost3,970–Inventories326,865344,577Propertiesforsale366,619578,665Propertiesunderdevelopment1,779,6461,485,581Debtors,contractassets,depositsandprepayments131,375,6431,466,445Amountsduefromcustomersforcontractwork–88,563Derivativefinancialinstruments397373Prepaidtax23,0699,138Bankbalancesandcash1,833,0841,723,4526,184,3636,194,284Assetsheld-for-sale18516,549–6,700,9126,194,2845Note20192018HK$'000HK$'000CurrentliabilitiesAmountsduetojointventures6,4907,524Amountsduetonon-controllinginterests259,713325,166Amountsduetocustomersforcontractwork–639,791Derivativefinancialinstruments66233Creditors,billspayable,deposits,contractliabilitiesandaccruals142,523,0471,642,245Unearnedinsurancepremiumsandunexpiredriskreserves47,02859,536Outstandinginsuranceclaims237,913255,438Deferredincome–22,403Currentincometaxliabilities66,27669,028Bankandotherborrowings1,109,840767,6704,250,3733,789,034Liabilitiesdirectlyassociatedwithassetsheld-for-sale1834–4,250,4073,789,034Netcurrentassets2,450,5052,405,250Totalassetslesscurrentliabilities12,842,94412,315,507CapitalandreservesSharecapital377,411377,411Reserves8,644,0738,355,324Shareholders'funds9,021,4848,732,735Non-controllinginterests620,589603,005Totalequity9,642,0739,335,740Non-currentliabilitiesAmountduetoanon-controllinginterest118,137–Unearnedinsurancepremiums89,50030,606Bankandotherborrowings2,630,3702,608,832Deferredtaxliabilities362,864340,3293,200,8712,979,767Totalequityandnon-currentliabilities12,842,94412,315,5076NOTESTOTHECONSOLIDATEDFINANCIALSTATEMENTS1BasisofpreparationTheconsolidatedfinancialstatementsoftheGrouphavebeenpreparedinaccordancewithHongKongFinancialReportingStandards("HKFRS")issuedbytheHongKongInstituteofCertifiedPublicAccountants("HKICPA").
ThesefinancialstatementsalsocompliedwiththedisclosurerequirementsoftheHongKongCompaniesOrdinance(Cap.
622)andtheapplicabledisclosureprovisionsoftheRulesGoverningtheListingofSecuritiesonTheStockExchangeofHongKongLimited.
Theconsolidatedfinancialstatementshavebeenpreparedunderthehistoricalcostconvention,asmodifiedbytherevaluationofinvestmentproperties,staffquarters,investmentsatfairvaluethroughothercomprehensiveincome("FVOCI")andfinancialassetsandfinancialliabilities(includingderivativefinancialinstruments)atfairvaluethroughprofitorloss("FVPL").
2Accountingpolicies(a)Newstandards,amendments,interpretationandimprovementstoexistingstandardsthatareeffectivefortheGroup'sfinancialyearbeginningon1April2018TheHKICPAhasissuedthefollowingnewstandardsandamendmentwhichareeffectiveforaccountingperiodbeginningon1April2018:HKFRS9,"Financialinstruments"("HKFRS9")HKFRS15,"Revenuefromcontractswithcustomers"("HKFRS15")HKFRS15(amendment),"ClarificationsofHKFRS15Revenuefromcontractswithcustomers"Theimpactoftheadoptionofthesestandardsandamendmentisdisclosedinnote3below.
Thefollowingamendments,interpretationandimprovementstoexistingstandards,thatarerelevanttotheGroup'soperation,arealsomandatoryforthefinancialyearoftheGroupbeginningon1April2018:HKAS40(amendment),"Transfersofinvestmentproperty"HKFRS4(amendment),"ApplyingHKFRS9FinancialinstrumentswithHKFRS4Insurancecontracts"HK(IFRIC)-Int22,"Foreigncurrencytransactionsandadvanceconsideration"AmendmentstoHKFRS1andHKAS28aspartoftheAnnualImprovementstoHKFRS2014-2016CycleTheadoptionoftheseamendments,interpretationandimprovementstoexistingstandardsneitherhavesignificantimpactontheGroup'sconsolidatedresultsandfinancialpositionnoranysubstantialchangesintheGroup'saccountingpoliciesandthepresentationoftheconsolidatedfinancialstatements.
(b)Newstandards,amendments,interpretationandimprovementstoexistingstandardsthathavebeenissuedbutnotyeteffectiveandhavenotbeenearlyadoptedbytheGroupThefollowingnewstandards,amendments,interpretationandimprovementstoexistingstandards,thatarerelevanttotheGroup'soperation,havebeenissuedbutnotyeteffectiveforthefinancialyearoftheGroupbeginningon1April2018andhavenotbeenearlyadopted:HKAS1andHKAS8(amendment),"Definitionofmaterial"2HKAS19(amendment),"Employeebenefits"1HKAS28(amendment),"Longterminterestsinassociatesandjointventures"1HKFRS3(amendment),"Businesscombinations"2HKFRS9(amendment),"Prepaymentfeatureswithnegativecompensation"17HKFRS10andHKAS28(amendment),"Saleorcontributionofassetsbetweenaninvestoranditsassociateorjointventure"4HKFRS16,"Leases"1HKFRS17,"Insurancecontracts"3HK(IFRIC)-Int23,"Uncertaintyoverincometaxtreatments"1AnnualImprovementsProject-ImprovementstoHKFRS2015-2017Cycle1ConceptualFrameworkforFinancialReporting2018–"Revisedconceptualframeworkforfinancialreporting2018"21Effectiveforannualperiodsbeginningonorafter1January20192Effectiveforannualperiodsbeginningonorafter1January20203Effectiveforannualperiodsbeginningonorafter1January20214EffectiveforannualperiodsbeginningonorafteradatetobedeterminedHKFRS16,"Leases"("HKFRS16")NatureofchangesHKFRS16willresultinalmostallleasesbeingrecognisedontheconsolidatedstatementoffinancialposition,asthedistinctionbetweenoperatingandfinanceleasesisremoved.
Underthenewstandard,anasset(therighttousetheleaseditem)andafinancialliabilitytopayrentalsarerecognised.
Theonlyexceptionsareshort-termandlow-valueleases.
PotentialimpactThestandardwillaffectprimarilytheaccountingfortheGroup'soperatingleases.
Asattheendofthereportingperiod,theGrouphasnon-cancellableoperatingleasecommitmentsofHK$105million.
Basedonthepreliminaryassessmentundertakentodate,itisestimatedthattheadoptionofHKFRS16wouldresultinrecognitionofright-of-useassetsandfinancialliabilitiesintheconsolidatedstatementoffinancialpositionprimarilyarisingfromleasesoflandandbuildings.
Theinterestexpensesontheleaseliabilitiesandthedepreciationexpensesontheright-of-useassetsunderHKFRS16willreplacetherentalchargeunderHKAS17,"Leases"intheprofitorloss.
Thenewstandardismandatoryforfinancialyearscommencingonorafter1January2019.
TheGroupwilladoptthestandardfrom1April2019andwillnotrestatecomparativeamountsfortheyearpriortofirstadoption.
Theaccountingforlessorswillnotsignificantlychange.
TheGroupdoesnotexpectanysignificantimpactontheconsolidatedfinancialstatements.
However,someadditionaldisclosureswillberequirednextyear.
HKFRS17,"Insurancecontracts"("HKFRS17")HKFRS17willreplacethecurrentHKFRS4,"Insurancecontracts".
HKFRS17includessomefundamentaldifferencestocurrentaccountinginbothinsurancecontractmeasurementandprofitrecognition.
Thegeneralmodelisbasedonadiscountedcashflowmodelwithariskadjustmentanddeferralofunearnedprofits.
Aseparateapproachappliestoinsurancecontractsthatarelinkedtoreturnsonunderlyingitemsandmeetcertainrequirements.
Additionally,HKFRS17requiresmoregranularinformationandanewpresentationformatforthestatementofcomprehensiveincomeaswellasextensivedisclosures.
TheGroupisyettoundertakeadetailedassessmentofthenewstandard.
Thestandardismandatorilyeffectiveforfinancialperiodsbeginningonorafter1January2021,howeverinNovember2018,IASBproposedtodeferIFRS17andtemporaryIFRS9exemptionavailabletoinsurersuntilthefinancialperiodbeginningonorafter1January2022.
Theproposeddeferralissubjecttopublicconsultation,whichisexpectedin2019.
Otherthantheabove,theGroupanticipatesthattheapplicationofamendments,interpretationandimprovementstoexistingstandardsthathavebeenissuedbutarenotyeteffectivemayhavenomaterialimpactontheresultsofoperationsandfinancialposition.
83Changesinsignificantaccountingpolicies(a)ImpactontheconsolidatedfinancialstatementsTheadoptionofHKFRS9andHKFRS15from1April2018resultedinchangesinaccountingpoliciesandadjustmentstotheamountsrecognisedintheconsolidatedfinancialstatements.
InaccordancewiththetransitionalprovisionsinHKFRS9andHKFRS15,comparativefigureshavenotbeenrestated.
Thereclassificationsarethereforenotreflectedintheconsolidatedstatementoffinancialpositionasat31March2018,butarerecognisedintheopeningconsolidatedstatementoffinancialpositionasat1April2018.
Thefollowingtableshowstheadjustmentsrecognisedforeachindividualfinancialstatementlineitem.
Financialstatementlineitemsthatwerenotaffectedbythechangeshavenotbeenincluded.
Theadjustmentsareexplainedinmoredetailsasbelow.
31March2018AspreviouslyreportedEffectonadoptionofHKFRS9EffectonadoptionofHKFRS151April2018AsadjustedHK$'000HK$'000HK$'000HK$'000Consolidatedstatementoffinancialposition(extract)Interestsinassociates468,411–314468,725InvestmentsatFVOCI–63,558–63,558InvestmentsatFVPL430,805193,380–624,185Investmentsatamortisedcost–33,182–33,182Available-for-saleinvestments265,766(265,766)––Inventories344,577–15,498360,075Debtors,contractassets,depositsandprepayments1,466,445(24,354)78,5701,520,661Amountsduefromcustomersforcontractwork88,563–(88,563)–Amountsduetocustomersforcontractwork639,791–(639,791)–Creditors,billspayable,deposits,contractliabilitiesandaccruals1,642,245–660,8872,303,132Deferredincome22,403–(22,403)–Currentincometaxliabilities69,028–1,12470,152Investmentrevaluationreserve62,407(28,596)–33,811Retainedprofits6,505,17728,5966,0026,539,775(b)HKFRS9andHKFRS15–ImpactofadoptionHKFRS9replacestheprovisionsofHKAS39,"Financialinstruments:Recognitionandmeasurement"thatrelatetotherecognition,classificationandmeasurementoffinancialassetsandfinancialliabilities,derecognitionoffinancialinstrumentsandimpairmentoffinancialassets.
HKFRS15replacesboththeprovisionsofHKAS18,"Revenue"("HKAS18")andHKAS11,"Constructioncontracts"("HKAS11")andtherelatedinterpretationsthatrelatetotherecognition,classificationandmeasurementofrevenueandcosts.
Detailsofaccountingpolicieswillbesetoutintheannualreport.
9ThetotalimpactonapplicationofHKFRS9andHKFRS15ontheGroup'sretainedprofitsasat1April2018isasfollows:NoteHK$'000Closingretainedprofitsat31March20186,505,177Reclassifyinvestmentrevaluationreserve(i)(a)28,596Adjustmentsforunbilledrevenue(iii)(b)6,812Adjustmenttointerestsinassociates(iii)(a)314Taxeffect(iii)(b)(1,124)Openingretainedprofitsat1April2018–HKFRS9andHKFRS156,539,775(i)HKFRS9–ClassificationandmeasurementOn1April2018,theGroup'smanagementhasassessedwhichbusinessmodelsapplytothefinancialassetsheldbytheGroupandhasclassifieditsfinancialinstrumentsintotheappropriateHKFRS9categories.
Themaineffectsresultingfromthisreclassificationareasfollows:Available-for-saleFVPLFVOCIAmortisedcostFinancialassetsNoteHK$'000HK$'000HK$'000HK$'000Closingbalanceat31March2018–HKAS39265,766430,805––Reclassifyinvestmentsfromavailable-for-saletoFVPL(a)(202,208)202,208––Reclassifyequitysecuritiesfromavailable-for-saletoFVOCI(b)(63,558)–63,558–ReclassifydebtsecuritiesfromFVPLtoamortisedcost(c)–(33,182)–33,182ReclassifyincomeprovidentfundfromotherdebtorstoFVPL(d)–24,354––Openingbalanceat1April2018–HKFRS9–624,18563,55833,18210Theimpact(netoftax)ofthesechangesontheGroup'sequityisasfollows:Effectoninvestmentrevaluationreserve(available-for-sale)Effectoninvestmentrevaluationreserve(FVOCI)EffectonretainedprofitsNoteHK$'000HK$'000HK$'000Openingbalance–HKAS3962,407–6,505,177Reclassifyinvestmentsfromavailable-for-saletoFVPL(a)(28,596)–28,596Reclassifyequitysecuritiesfromavailable-for-saletoFVOCI(b)(33,811)33,811–Totalimpact(62,407)33,81128,596Openingbalance–HKFRS9–33,8116,533,773**TheamountisbeforetheadjustmentsfromtheapplicationofHKFRS15.
Notes:(a)Reclassificationfromavailable-for-saletoFVPLCertaininvestmentswerereclassifiedfromavailable-for-saleinvestmentstofinancialassetsatFVPL.
Relatedfairvaluegains(netoftax)ofHK$28,596,000werereclassifiedfrominvestmentrevaluationreservetoretainedprofitson1April2018.
(b)Equitysecuritiespreviouslyclassifiedasavailable-for-saleTheGroupelectedtopresentintheothercomprehensiveincomechangesinthefairvalueofitsequitysecuritiespreviouslyclassifiedasavailable-for-sale,becausetheseinvestmentsareheldaslong-termstrategicinvestmentsthatarenotexpectedtobesoldintheshorttomediumterm.
Asaresult,assetswithafairvalueofHK$63,558,000werereclassifiedfromavailable-for-saleinvestmentstoFVOCIandfairvaluegains(netoftax)ofHK$33,811,000wererecognisedfromtheavailable-for-salereservetotheFVOCIreserveon1April2018.
(c)ReclassificationfromFVPLtoamortisedcostCertainlisteddebtsecuritieswerereclassifiedfromFVPLtoamortisedcost.
AtthedateofinitialapplicationoftheGroup'sbusinessmodelistoholdtheseinvestmentsforcollectionofcontractualcashflows,andthecashflowsrepresentsolelypaymentsofprincipalandinterest.
ThefairvalueofHK$33,182,000asat1April2018approximatedtotheamortisedcostoftheseassets.
Therewasnoimpactonretainedprofitsat1April2018.
11(d)ReclassificationfromotherdebtorstoFVPLTheGroup'smoneyplacedinincomeprovidentfundinMainlandChinaforcardealershipbusinesswasreclassifiedfromotherdebtorstoFVPL.
ItdoesnotmeetthecriteriatobeclassifiedasamortisedcostandFVOCIbecauseitscashflowsdonotrepresentsolelypaymentsofprincipalandinterest.
(e)OtherfinancialassetsCertainequitysecurities,debtsecurities,andmutualandhedgefunds–heldfortradingarerequiredtobeheldatFVPLunderHKFRS9,buttherewasnoimpactontheamountsrecognisedinrelationtotheseassetsfromtheadoptionofHKFRS9.
(ii)HKFRS9–ImpairmentoffinancialassetsTheGroup'ssignificantfinancialassetswhicharesubjecttoHKFRS9'snewexpectedcreditlossmodelinclude:tradedebtorsandcontractassets;otherdebtorsandamountsduefromassociates,jointventuresandnon-controllinginterests;debtinvestmentscarriedatamortisedcost;andbankbalancesandcash.
TheGroupwasrequiredtoreviseitsimpairmentmethodologyunderHKFRS9foreachoftheseclassesofassets.
Thelossallowancesforfinancialassetsarebasedonassumptionsaboutriskofdefaultandexpectedlossrates.
TheGroupusesjudgementinmakingtheseassumptionsandclassifytheinputstotheimpairmentcalculation,basedonGroup'spastexperience,existingmarketconditionsaswellasforwardlookingattheendofeachreportingperiod.
Theresultsoftherevisionat1April2018aredescribedbelow:WhilebankbalancesandcasharealsosubjecttotheimpairmentrequirmentsofHKFRS9,theidentifiedimpairmentlosswasimmaterial.
TradedebtorsandcontractassetsTheGroupappliestheHKFRS9simplifiedapproachtomeasuringexpectedcreditlosseswhichusesalifetimeexpectedlossallowancefortradedebtorsandcontractassets.
TheadoptionofthesimplifiedexpectedlossapproachunderHKFRS9hasnotresultedinanyadditionalimpairmentlossfortradedebtorsandcontractassetsasat1April2018.
Otherdebtorsandamountsduefromassociates,jointventuresandnon-controllinginterestsThelossallowanceforotherdebtorsandamountsduefromassociates,jointventuresandnon-controllinginterestsasaresultofapplyingtheexpectedcreditriskmodelwasimmaterialasthereisnoincreaseincreditriskduringtheyear.
DebtinvestmentscarriedatamortisedcostAlloftheGroup'sdebtinvestmentsatamortsiedcostareconsideredtohavelowcreditrisk,andthelossallowancerecognisedduringtheperiodwasthereforelimitedto12monthsexpectedlosses.
Managementconsider"lowcreditrisk"fordebtinvestmentswhentheyhavealowriskofdefaultandtheissuershaveastrongcapabilitytomeetitscontractualcashflowobligationsinthenearterm.
12(iii)HKFRS15–ClassificationandmeasurementThefollowingtableshowstheadjustmentsmadetotheamountsrecognisedintheconsolidatedstatementoffinancialpositionat1April2018.
Financialstatementlineitemsthatwerenotaffectedbythechangeshavenotbeenincluded.
31March2018AspreviouslyreportedEffectonadoptionofHKFRS151April2018AsadjustedNoteHK$'000HK$'000HK$'000Consolidatedstatementoffinancialposition(extract)Interestsinassociates(a)468,411314468,725Inventories(b)344,57715,498360,075Debtors,contractassets,depositsandprepayments(b)1,466,44578,5701,545,015*Amountsduefromcustomersforcontractwork(b)88,563(88,563)–Amountsduetocustomersforcontractwork(c)639,791(639,791)–Creditors,billspayable,deposits,contractliabilitiesandaccruals(c)&(d)1,642,245660,8872,303,132Deferredincome(d)22,403(22,403)–Currentincometaxliabilities(b)69,0281,12470,152Retainedprofits(a)&(b)6,505,1776,0026,511,179**TheamountsarebeforetheadjustmentsfromtheapplicationofHKFRS9.
Notes:(a)TheneteffectarisingfromtheintialapplicaitonofHKFRS15byanassociateoftheGroupresultedinanincreaseinthecarryingamountofinterestsinassociatesofHK$314,000withcorrespondingadjustmenttoretainedprofits.
(b)UnderHKFRS15,contractcoststhatrelatedtosatisfiedperformanceobligationsareexpensedasincurred.
TheunbilledrevenueofHK$72,656,000includedascontractassetsunderdebtors,contractassets,depositsandprepaymentswerecreditedtoretainedprofitswhilecontractcostsofHK$65,844,000incurredunderHKAS11werechargedtoretainedprofits.
TherelatedtaxeffectofHK$1,124,000wasrecognisedincurrentincometaxliabilitiesandincludedinadjustmenttoretainedprofits.
ConstructionmaterialsnotyetdeliveredofHK$15,498,000werereclassifiedfromamountsduefromcustomersforcontractworktoinventories.
(c)Thereclassificationfromamountsduetocustomersforcontractworktoaccruedcontractcostsundercreditors,billspayable,deposits,contractliabilitiesandaccrualsunderHKFRS15.
(d)Thereclassificationfromdeferredincometocontractliabilitiesundercreditors,billspayable,deposits,contractliabilitiesandaccrualsunderHKFRS15representedtheGroup'sobligationstotransfertothecustomersoftheservicesandtheGrouphasreceivedconsiderationfromthecustomers.
TheamountbyeachfinancialstatementlineitemsaffectedinthecurrentyearandyeartodatebytheapplicationofHKFRS15ascomparedtoHKAS18andHKAS11thatwerepreviouslyineffectbeforetheadoptionofHKFRS15isasfollows:13Fortheyearended31March2019AmountsbeforetheadoptionofHKFRS15EffectonadoptionofHKFRS15AmountsasreportedHK$'000HK$'000HK$'000Consolidatedincomestatement(extract)Revenue6,932,163(39,449)6,892,714Costofsales(6,035,983)30,550(6,005,433)Shareofresultsofassociates118,4546,549125,003Taxation(141,948)1,468(140,480)ProfitfortheyearattributabletoShareholdersoftheCompany655,443(882)654,561EarningspershareBasicanddiluted(HK$pershare)2.
17–2.
17At31March2019AmountsbeforetheadoptionofHKFRS15EffectonadoptionofHKFRS15AmountsasreportedHK$'000HK$'000HK$'000Consolidatedstatementoffinancialposition(extract)Interestsinassociates467,9036,549474,452Debtors,contractassets,depositsandprepayments1,309,65465,9891,375,643Amountsduefromcustomersforcontractwork74,888(74,888)–Amountsduetocustomersforcontractwork(679,290)679,290–Creditors,billspayable,deposits,contractliabilitiesandaccruals(1,751,888)(771,159)(2,523,047)Deferredincome(91,869)91,869–Currentincometaxliabilities(67,744)1,468(66,276)Reserves(8,644,955)882(8,644,073)Fortheyearended31March2019AmountsbeforetheadoptionofHKFRS15EffectonadoptionofHKFRS15AmountsasreportedHK$'000HK$'000HK$'000Consolidatedstatementofcashflows(extract)Profitbeforetaxation842,232(2,350)839,882Adjustmentfor:Shareofresultsofassociates(118,454)(6,549)(125,003)Changesinworkingcapital:Debtors,contractassets,depositsandprepayments210,639(65,989)144,650Amountsduefromcustomersforcontractwork(74,888)74,888–Amountsduetocustomersforcontractwork679,290(679,290)–Creditors,billspayable,deposits,contractliabilitiesandaccruals(563,489)771,159207,670Deferredincome91,869(91,869)–144SegmentinformationManagementhasdeterminedtheoperatingsegmentsbasedonthereportsreviewedbytheDirectors,thechiefoperatingdecision-maker,thatareusedtomakestrategicdecisions.
TheDirectorsconsiderthebusinessfromaproduct/serviceperspective.
Principalactivitiesofthesegmentsareasfollows:Constructionandengineering:Constructionandengineeringworkforaluminiumwindowandcurtainwalls,buildingconstruction,buildingsupplies,electricalandmechanicalandenvironmentalengineering,liftandescalatorandpipetechnology.
Propertyinvestment:Propertiesrentalbusiness.
PropertydevelopmentandOperations:Propertydevelopmentandmanagement,coldstorageandlogisticsandhoteloperations.
Healthcareinvestment:Seniorhousingbusinessandmedicalofficebuildinginvestment.
Cardealership:Retailing,tradingandservicingofmotorvehicles.
Others:Saleandservicingofinformationtechnologyequipmentandbusinessmachines,foodtrading,generalinsurancebusiness(exceptaircraft,aircraftliabilitiesandcreditinsurance),investmentinsecuritiesandrestaurantandbar.
Segmentrevenueismeasuredinamannerconsistentwiththatintheconsolidatedincomestatement,exceptthatitalsoincludestheGroup'sshareofrevenueofassociatesandjointventuresonaproportionateconsolidatedbasis.
ThesalesfromassociatesandjointventurestotheGroupandsalesbetweenindividualassociatesandjointventuresarenoteliminated.
TheDirectorsassesstheperformanceoftheoperatingsegmentsbasedonameasureofsegmentresults.
ThismeasurementincludestheGroup'sshareofresultsofassociatesandjointventuresonaproportionateconsolidatedbasis.
Unallocatedcorporateexpenses,financeincomeandcosts,taxationandothermajoritemsthatareisolatedandnon-recurringinnaturearenotincludedinsegmentresults.
Segmentassetsmainlyconsistofcurrentassetsandnon-currentassetsasdisclosedintheconsolidatedstatementoffinancialpositionexceptprepaidtax,unallocatedbankbalancesandcash,deferredtaxassetsandotherunallocatedassets.
Segmentliabilitiesmainlyconsistofcurrentliabilitiesandnon-currentliabilitiesasdisclosedintheconsolidatedstatementoffinancialpositionexceptcurrentincometaxliabilities,bankandotherborrowings,deferredtaxliabilitiesandotherunallocatedliabilities.
15(a)RevenueandresultsConstructionandengineeringPropertyinvestmentPropertydevelopmentandoperationsHealthcareinvestmentCardealershipOthersTotalHK$'000HK$'000HK$'000HK$'000HK$'000HK$'000HK$'000Fortheyearended31March2019REVENUETotalrevenue2,678,957140,579719,428743,0182,127,864556,7246,966,570Inter-segmentrevenue––(44,765)––(29,091)(73,856)Grouprevenue2,678,957140,579674,663743,0182,127,864527,6336,892,714Shareofrevenueofassociatesandjointventures1,657,039–346,529122,669467,672151,0532,744,962Proportionaterevenuefromajointventureeliminated(74,387)74,387)Segmentrevenue4,261,609140,5791,021,192865,6872,595,536678,6869,563,289Revenuefromcontractswithcustomers:–recognisedatapointintime34,335–366,104–2,113,721349,0722,863,232–recognisedovertime2,644,587–301,535743,018–28,9663,718,106Revenuefromothersources35140,5797,024–14,143149,595311,376Grouprevenue2,678,957140,579674,663743,0182,127,864527,6336,892,714RESULTSSegmentprofit293,763269,219217,798144,109(9,610)46,817962,096Includedinsegmentprofit/(loss)are:Shareofresultsofassociates127,452–873––(3,322)125,003Shareofresultsofjointventures428–17,361150,4873,172–171,448Increaseinfairvalueofinvestmentproperties–166,406––––166,406Depreciationandamortisation,netofcapitalisation(8,254)(457)(55,555)(66,491)(20,921)(2,595)(154,273)Unrealisedlossonderivativefinancialinstruments(129)129)Unrealisedlossoninvestmentsatfairvaluethroughprofitorloss12)(12)Provisionwrittenback/(recognised)forinventoriestonetrealisablevalue,net28–––(1,182)(71)(1,225)Provisionwrittenback/(recognised)ontradeandotherdebtors,net1,497––(6,187)–(309)(4,999)16ConstructionandengineeringPropertyinvestmentPropertydevelopmentandoperationsHealthcareinvestmentCardealershipOthersTotalHK$'000HK$'000HK$'000HK$'000HK$'000HK$'000HK$'000Fortheyearended31March2018REVENUETotalrevenue2,582,734136,4301,097,095582,7692,276,770394,8267,070,624Inter-segmentrevenue––(41,662)––(48,562)(90,224)Grouprevenue2,582,734136,4301,055,433582,7692,276,770346,2646,980,400Shareofrevenueofassociatesandjointventures1,607,212–49,22215,515477,488186,7622,336,199Proportionaterevenuefromajointventureeliminated(15,456)15,456)Segmentrevenue4,174,490136,4301,104,655598,2842,754,258533,0269,301,143RESULTSSegmentprofit172,173278,834859,5163,0984,83272,5881,391,041Includedinsegmentprofit/(loss)are:Shareofresultsofassociates56,789–99––1,03057,918Shareofresultsofjointventures235–(29,730)(32,849)1,854–(60,490)Increaseinfairvalueofinvestmentproperties–190,683––––190,683Depreciationandamortisation,netofcapitalisation(5,512)(404)(40,089)(48,456)(21,447)(1,659)(117,567)Impairmentlossonproperty,plantandequipment(1,572)1,572)Impairmentlossonavailable-for-saleinvestments3,377)(3,377)Unrealisedlossonderivativefinancialinstruments932)(932)Unrealisedgainoninvestmentsatfairvaluethroughprofitorloss13,16113,161Provisionwrittenback/(recognised)forinventoriestonetrealisablevalue,net33–––(3,342)(761)(4,070)Provisionwrittenback/(recognised)ontradeandotherdebtors,net8,993(2,500)–(4,382)–(106)2,005Provisionforimpairmentlossonpropertiesforsale––(22,015)22,015)Impairmentlossonretentionreceivables(8,597)8,597)Inter-segmentrevenueischargedatpricesdeterminedbymanagementwithreferencetomarketprices.
17TotalsegmentrevenuearereconciledtotheGroup'srevenueintheconsolidatedincomestatementasfollows:20192018HK$'000HK$'000Totalsegmentrevenue9,563,2899,301,143Add:Proportionaterevenuefromajointventureeliminated74,38715,456Less:ShareofrevenueofassociatesandjointventuresConstructionandinstallationcontracts1,086,8361,102,179Salesofmotorvehiclesandothers467,672477,488Maintenanceandotherservices570,573527,362Foodandbeverage151,053164,709Hoteloperations36,51837,525Salesandleasingofproperties432,31026,9362,744,9622,336,199Totalrevenueintheconsolidatedincomestatement(note5)6,892,7146,980,400Reconciliationofsegmentprofittoprofitbeforetaxationisprovidedasfollows:20192018HK$'000HK$'000Segmentprofit962,0961,391,041Unallocatedcorporateexpenses(42,191)(52,542)Financeincome43,21621,636Financecosts(123,239)(92,309)Profitbeforetaxation839,8821,267,82618(b)AssetsandliabilitiesConstructionandengineeringPropertyinvestmentPropertydevelopmentandoperationsHealthcareinvestmentCardealershipOthersTotalHK$'000HK$'000HK$'000HK$'000HK$'000HK$'000HK$'000At31March2019ASSETSSegmentassets1,584,1594,295,1945,521,1142,806,9041,015,7041,456,84516,679,920Includedinsegmentassetsare:Interestsinassociates431,656–1,381––41,415474,452Interestsinjointventures12,506–516,578651,06078,174–1,258,318Amountsduefromassociates17,684––––68718,371Amountsduefromjointventures50–6–––56Additionstonon-currentassets(note)13,8851,077522,450551,61521,4759,9291,120,431LIABILITIESSegmentliabilities1,615,00168,067462,093223,650403,534460,6883,233,033Includedinsegmentliabilitiesare:Amountsduetojointventures––6,299–191–6,490At31March2018ASSETSSegmentassets1,528,4404,399,8425,041,4822,319,6741,126,6801,096,73715,512,855Includedinsegmentassetsare:Interestsinassociates425,719–626––42,066468,411Interestsinjointventures12,076–500,494516,45283,464–1,112,486Amountsduefromassociates18,57518,575Amountsduefromjointventures9,068–17–––9,085Additionstonon-currentassets(note)51,519344,334164,058300,23919,4488,491888,089LIABILITIESSegmentliabilities1,508,95737,619413,708138,743409,177440,1382,948,342Includedinsegmentliabilitiesare:Amountsduetojointventures––6,730–794–7,524Note:Inthisanalysis,thenon-currentassetsexcludefinancialinstruments(includinginterestsinassociatesandjointventures)anddeferredtaxassets.
19Reconciliationofsegmentassetsandliabilitiestototalassetsandliabilitiesisprovidedasfollows:20192018HK$'000HK$'000Segmentassets16,679,92015,512,855Prepaidtax23,0699,138Unallocatedbankbalancesandcash351,116524,647Deferredtaxassets29,91642,171Otherunallocatedassets9,33015,730Totalassets17,093,35116,104,541Segmentliabilities3,233,0332,948,342Currentincometaxliabilities66,27669,028Bankandotherborrowings3,740,2103,376,502Deferredtaxliabilities362,864340,329Otherunallocatedliabilities48,89534,600Totalliabilities7,451,2786,768,801(c)GeographicalinformationTheGroup'soperationsinconstructionandengineeringbusinessesaremainlycarriedoutinHongKong,MainlandChina,MacauandAustralia.
PropertyinvestmentbusinessesaremainlycarriedoutinHongKong,MainlandChina,CanadaandSingapore.
PropertydevelopmentandoperationsbusinessesaremainlycarriedoutinHongKong,MainlandChinaandCanada.
HealthcareinvestmentbusinessesarecarriedoutinHongKongandtheUS.
CardealershipbusinessesarecarriedoutinMainlandChinaandCanada.
OtherbusinessesaremainlycarriedoutinHongKong,theUSandThailand.
Theassociates'andjointventures'operationsinconstructionandengineeringbusinessaremainlycarriedoutinHongKong,MainlandChina,SingaporeandMacau.
PropertydevelopmentandoperationsbusinessesaremainlycarriedoutinHongKongandMainlandChina.
HealthcareinvestmentbusinessesarecarriedoutintheUS.
CardealershipbusinessesarecarriedoutinMainlandChina.
OtherbusinessesaremainlycarriedoutinHongKong,MainlandChinaandAustralia.
20SegmentrevenuebygeographicalareasCompanyandsubsidiariesAssociatesandjointventures2019TotalCompanyandsubsidiariesAssociatesandjointventures2018TotalHK$'000HK$'000HK$'000%HK$'000HK$'000HK$'000%HongKong2,809,371905,08413,714,455392,960,677625,29813,585,97539MainlandChina2,115,2161,284,5213,399,737362,666,2791,353,3634,019,64243TheUS981,846122,6691,104,51511690,68715,515706,2028Macau418,89734,261453,158585,96827,102113,0701Canada390,443–390,4434400,740–400,7404Singapore12,101295,666307,767311,949270,509282,4583Australia110,96827,938138,9061107,72428,536136,2601Thailand53,872–53,872156,376–56,3761Others–436436––420420–6,892,7142,670,5759,563,2891006,980,4002,320,7439,301,1431001Theproportionaterevenuefromajointventureiseliminated.
TheGroupmaintainsahealthyandbalancedportfolioofcustomers.
Nocustomerisaccountedfor10%ormoreofthetotalrevenueoftheGroupfortheyearsended31March2019and2018.
Thefollowingisananalysisofthecarryingamountsofnon-currentassetsotherthanfinancialinstruments(includinginterestsinassociatesandjointventures)anddeferredtaxassetsanalysedbygeographicalareas:Non-currentassets20192018HK$'000HK$'000HongKong3,462,1813,555,346MainlandChina1,988,8592,168,161TheUS2,021,4881,511,024Singapore475,082469,146Canada215,542207,764Macau48,81445,189Thailand8,1718,502Others3484318,220,4857,965,563215Revenue20192018HK$'000HK$'000Revenuerepresentsamountsreceivedandreceivablefrom:Constructionandinstallationcontracts2,505,7952,399,483Saleofinformationtechnologyequipment,motorvehiclesandothers2,233,6282,462,214Seniorhousingoperations743,018582,769Salesandleasingofproperties437,519843,978Warehouseandlogisticsservices372,176214,570Maintenanceandpropertymanagementservices392,207355,012Hoteloperations50,14647,953Insurancepremium133,41333,601Interestincomefrominvestments13,04014,747Dividendincomefrominvestments2,55518,974Leasingofvehiclesandequipment9,2177,099Totalrevenue(note4)6,892,7146,980,4006Otherincome,net20192018HK$'000HK$'000Gainoninvestmentsatfairvaluethroughprofitorloss88711,912Lossonderivativefinancialinstruments(590)(993)Salesandmarketingservicesincomefromanassociate31,90129,906Managementfeeincomefromanassociateandjointventures22,93622,664Otherinvestmentgain/(loss)2,263(1,893)Others10,93012,28268,32773,878227Othergains,net20192018HK$'000HK$'000Increaseinfairvalueofinvestmentproperties166,406190,683Remeasurementgainontransferfrompropertiesforsaletoinvestmentproperties25,838–Gain/(loss)ondisposalofproperty,plantandequipment105(3,721)Provision(recognised)/writtenbackontradeandotherdebtors(4,999)2,005Gainondisposalofanassociate–4,848Deemeddisposallossonstep-upacquisitionofanassociateandbecomeasubsidiary–(3,004)Impairmentlossonproperty,plantandequipment–(1,572)Remeasurementofgoodwill–4,686Impairmentlossoninterestinanassociate–(18,101)Impairmentlossonavailable-for-saleinvestments–(3,377)Provisionforimpairmentlossonpropertiesforsale–(22,015)Impairmentlossonretentionreceivables–(8,597)Exchange(loss)/gain(4,950)12,649182,400154,484Gainondisposalsofsubsidiaries20192018HK$'000HK$'000Gainondisposalsof–ChinafordandDolceField(note15(g))–619,941–TalentLuck(note15(i))–92,927–othersubsidiaries2312,207231715,0758Financecosts,net20192018HK$'000HK$'000Interestexpensesonbankoverdraftsandbankandotherborrowings142,500100,323Less:Amountscapitalisedtopropertiesunderdevelopment(note)(19,261)(8,014)123,23992,309Less:Interestincomefrombankdepositsandajointventure(43,216)(21,636)80,02370,673Note:Thecapitalisationrateappliedtofundsborrowedandusedforthedevelopmentofpropertieswasbetween1.
6%and3.
0%perannum(2018:between5.
5%and5.
8%perannum).
239Profitbeforetaxation20192018HK$'000HK$'000Profitbeforetaxationhasbeenarrivedataftercharging/(crediting)thefollowing:Depreciationofproperty,plantandequipment137,290111,880Less:Amountcapitalisedtocontractwork(2,002)(2,085)135,288109,795Staffcosts1,148,7521,034,119Less:Amountcapitalisedtocontractwork(186,154)(206,121)962,598827,998Operatingleasepaymentsinrespectofleasingof–premises15,10854,168–equipment2,8322,29017,94056,458Auditors'remuneration–auditservices14,11514,741–non-auditservices4,3143,194–under-provisioninprioryears4701,09818,89919,033Amortisationofotherintangibleassets18,9857,772Provisionforinventoriestonetrealisablevalue,net1,2254,070Provisionrecognised/(writtenback)ontradeandotherdebtors,net4,999(2,005)Provisionforimpairmentlossonpropertiesforsale–22,015GrossrentalincomeofHK$156,322,000(2018:HK$148,236,000)frompropertieslessdirectoperatingexpenses(134,479)(124,252)2410Taxation20192018HK$'000HK$'000CurrenttaxHongKong52,55248,390MainlandChina20,046195,767Overseas25,92623,502(Over)/under-provisioninprioryears(8,366)3,42190,158271,080DeferredtaxOriginationandreversaloftemporarydifferences50,32225,264140,480296,344HongKongprofitstaxiscalculatedattherateof16.
5%(2018:16.
5%)ontheestimatedassessableprofits.
TaxationonMainlandChinaandoverseasprofitshasbeencalculatedontheestimatedassessableprofitsfortheyearattheratesoftaxationprevailinginthecountriesinwhichtheGroupoperates.
11EarningspershareTheearningspershareiscalculatedbydividingtheprofitattributabletoshareholdersoftheCompanybytheweightedaveragenumberofordinarysharesinissueduringtheyearended31March2019.
20192018HK$'000HK$'000ProfitattributabletoshareholdersoftheCompany654,561907,92920192018Weightedaveragenumberofordinarysharesinissue('000shares)301,928301,928Basicanddilutedearningspershare(HK$)2.
173.
01Therewerenopotentialdilutedordinarysharesinexistenceduringtheyearsended31March2019and2018.
12Dividends20192018HK$'000HK$'000InterimdividendofHK$0.
15(2018:HK$0.
10)persharepaid45,28930,193FinaldividendofHK$0.
35(2018:HK$0.
25)pershareproposed105,67575,482Specialinterimdividendofnil(2018:HK$1.
40)persharepaid–422,700150,964528,375FinaldividendofHK$0.
35persharetotalingHK$105,675,000hasbeenproposedbytheDirectorsandissubjecttoapprovalbytheshareholdersintheforthcomingannualgeneralmeeting.
Theamountwillbereflectedasanappropriationofretainedprofitsfortheyearending31March2020.
2513Debtors,contractassets,depositsandprepayments20192018HK$'000HK$'000Tradedebtors553,658448,707Less:Provisionforimpairment(30,865)(33,644)Tradedebtors,net522,793415,063Retentionreceivables297,254288,760Less:Provisionforimpairment(9,186)(9,186)Retentionreceivables,net288,068279,574Contractassets61,702–Otherdebtors,depositsandprepayments503,080771,8081,375,6431,466,445TheGrouphasestablisheddifferentcreditpoliciesforcustomersineachofitscorebusinesses.
Theaveragecreditperiodgrantedtotradedebtorsis60days,exceptforinsurancebusinesswherecreditperiodgrantedtocertaindebtorsisover60days.
Theageinganalysisoftradedebtors,netofimpairmentprovision,ispresentedbasedontheinvoicedateasfollows:20192018HK$'000HK$'0000-60days360,692366,83261-90days74,61112,719Over90days87,49035,512522,793415,0632614Creditors,billspayable,deposits,contractliabilitesandaccruals20192018HK$'000HK$'000Tradecreditorsandbillspayable287,318282,234Retentionpayables208,431202,491Depositsreceived177,44196,399Contractliabilities97,431–Accruedcontractcosts1,246,367578,798Othercreditorsandaccruals506,059482,3232,523,0471,642,245Theageinganalysisoftradecreditorsandbillspayableisasfollows:20192018HK$'000HK$'0000-60days265,795257,58761-90days6,2616,628Over90days15,26218,019287,318282,23415Acquisitionsanddisposals(a)AcquisitionsofseniorhousingpropertiesOn25May2018,theGroupannouncedtheacquisitionoftenseniorhousingpropertiesintheUSattheconsiderationofUS$65,000,000(equivalenttoapproximatelyHK$509,600,000).
ThetransactioncompletedinJanuary2019.
2019HK$'000Purchaseconsiderationsatisfiedby:Cashpaid509,600Fairvalueofnetassetsacquired:Property,plantandequipment458,640Intangibleassets50,960509,600Acquisitionrelatedexpenses(includedinadministrativeexpenses)11,342Netcashoutflowarisingfromtheacquisition:Cashconsiderationpaid(509,600)TheacquiredbusinesscontributedrevenueofHK$122,617,000,earningsbeforeinterest,tax,depreciationandamortisation(beforedeductingtheacquisitionrelatedexpensesofHK$11,342,000)ofHK$4,454,000andnetlossofHK$35,684,000totheGroupfortheperiodfrom1July2018to31March2019.
Iftheacquisitionhadoccurredon1April2018,consolidatedpro-formarevenueandnetlossfortheyearended31March2019wouldhavebeenHK$214,352,000andHK$48,488,000respectively.
Theinformationisforillustrativepurposeonlyanddoesnotrepresentactualresultsfortheyear.
27On3April2017,theGroupenteredintoanagreementtoacquire100%interestintwoseniorhousingpropertieslocatedinMichigan,theUS,attheconsiderationofUS$33,000,000(equivalenttoapproximatelyHK$257,400,000).
ThetransactioncompletedinJune2017.
2018HK$'000Purchaseconsiderationsatisfiedby:Cashpaid257,785Fairvalueofnetassetsacquired(asshownbelow)(221,346)Goodwill36,439Fairvalueofnetassetsacquired:Property,plantandequipment191,896Intangibleassets29,396Debtors,depositsandprepayments54221,346Acquisitionrelatedexpenses(includedinadministrativeexpenses)2,293Netcashoutflowarisingfromtheacquisition:Cashconsiderationpaid(257,785)(b)Acquisitionof100%equityinterestinSilverProsperHoldingsLimited("SilverProsper")On18May2017,theGroupenteredintoaprovisionalagreementtoacquire100%equityinterestinSilverProsperwheretheprincipalassetisthepropertylocatedatDavisStreet,HongKong,whichisforresidentialandcommercialuseataconsiderationofapproximatelyHK$228,000,000.
ThetransactioncompletedinAugust2017.
2018HK$'000Purchaseconsiderationsatisfiedby:Cashpaid225,212Fairvalueofnetassetsacquired:Investmentproperty228,000Debtors,depositsandprepayments59Creditors,depositsandaccruals(2,768)Currentincometaxliabilities(79)225,212Acquisitionrelatedexpenses(includedinadministrativeexpenses)2,630Netcashoutflowarisingfromtheacquisition:Cashconsiderationpaid(225,212)28(c)AcquisitionofdevelopmentrightforthelandOn13June2017,UrbanRenewalAuthority("URA")notifiedtheGroupthatURAhasacceptedtheoffersubmittedbyandawardedthedevelopmentrightinrespectofthedevelopmentsiteatFukChakStreet/LiTakStreetatTaiKokTsui,KowloonataconsiderationofHK$680,000,000.
(d)Acquisitionof100%equityinterestinMoonColourHoldingsLimited("MoonColour")On10August2017,theGroupenteredintoanagreementtoacquire100%equityinterestinMoonColourwheretheprincipalassetisthepropertylocatedatTaiYipStreet,KowloonwhichisanindustrialbuildingataconsiderationofapproximatelyHK$360,000,000.
ThetransactioncompletedinAugust2017.
2018HK$'000Purchaseconsiderationsatisfiedby:Cashpaid360,272Fairvalueofnetassetsacquired:Propertyunderdevelopment357,084Deferredtaxassets2,916Debtors,depositsandprepayments272360,272Netcashoutflowarisingfromtheacquisition:Cashconsiderationpaid(360,272)(e)AcquisitionofresidentialpropertiesatNos.
292A-DPrinceEdwardRoadWest,KowloonOn3November2017,theGroupsubmittedtheoffertoacquiretheresidentialpropertiesatNos.
292A-DPrinceEdwardRoadWest,Homantin,KowloonataconsiderationofHK$333,800,000throughpublictenderprocess.
ThetransactioncompletedinNovember2017.
29(f)Step-upacquisitionofChevalierAOCFreightExpressHoldingsLimited(formerlyknownas"AOCLimited")("AOC")andbecomeasubsidiaryOn13December2017,theGroupexerciseditsoptiontoacquireadditional30%equityinterestinAOCataconsiderationofHK$9,450,000.
AOCbecamea60%subsidiaryoftheCompanysincethen.
2018HK$'000Totalconsiderationsatisfiedby:Fairvalueofthepreviouslyheldequityinterestinanassociateattheacquisitiondate9,450Cashpaid9,45018,900Fairvalueofnetassetsacquired:Property,plantandequipment1,940Debtors,depositsandprepayments19,060Bankbalancesandcash18,186Creditors,depositsandaccruals(15,924)Non-controllinginterests(9,305)13,957Goodwill4,943Netcashinflowarisingfromthestep-upacquisition:Cashconsiderationpaid(9,450)Bankbalancesandcash18,1868,736Thenon-controllinginterestofAOCwasdeterminedbasedonproportionateofnetassetsofAOC.
30(g)DisposalofChinafordInvestmentLimited("Chinaford")andDolceFieldLimited("DolceField")On1June2017,theGroupenteredintoaframeworkagreementtodisposeoftheentireissuedsharecapitalinChinafordandDolceField(investmentholdingcompanieswhichholdtheentireinterestin成都其士房地產發展有限公司("CCPD"))andassignmentofdebtatanaggregatecashconsiderationofRMB1,570,000,000(equivalenttoapproximatelyHK$1,815,000,000).
ThetransactioncompletedinAugust2017.
2018HK$'000Cashconsideration1,815,109Less:professionalfeesandotherexpenses(44,616)1,770,493Netassetsdisposedof:Assetsheld-for-sale1,233,787Liabilitiesdirectlyassociatedwithassetsheld-for-sale(148,268)Exchangefluctuationreservereleasedupondisposal65,0331,150,552Gainondisposal(note7)619,941Taxation(160,196)Gainondisposal,net459,745Netcashinflowarisingfromthedisposal:Cashconsiderationreceived1,554,256Professionalfeesandotherexpenses(36,427)1,517,829(h)Disposalof40%interestinNC1SandhillLimited("NC1Sandhill")withoutlossofcontrolOn25September2017,theGroupdisposedof40%interestinNC1SandhillataconsiderationofHK$12,000,000.
TheeffectofchangeintheownershipinterestofNC1SandhillontheequityattributabletoshareholdersoftheCompanyduringtheyearissummarisedasfollows:2018HK$'000Considerationreceivedfromnon-controllinginterests12,000Less:netliabilitiesof40%interestdisposed64Gainondisposalrecognisedwithinequity12,064ThetransactioncompletedinSeptember2017andtheGroupcontinuestopossessthecontroloverNC1Sandhill.
31(i)DisposalofTalentLuckLimited("TalentLuck")On30August2017,theGroupenteredintoaframeworkagreementtodisposeoftheentireissuedsharecapitalinTalentLuckatacashconsiderationofHK$610,000,000.
ThetransactioncompletedinOctober2017.
2018HK$'000Cashconsideration610,022Less:professionalfeesandotherexpenses(1,517)608,505Less:Netassetsdisposedof:Property,plantandequipment605,360Debtors,depositsandprepayments97Bankbalancesandcash6Creditors,depositsandaccruals(81)Deferredtaxliabilities(89,804)515,578Gainondisposal(note7)92,927Netcashinflowarisingfromthedisposal:Cashconsiderationreceived610,022Professionalfeesandotherexpenses(1,517)Bankbalancesandcash(6)608,49916ContingentliabilitiesTheGrouphadcontingentliabilitiesinrespectofguaranteesissuedforutilisedborrowingsinrelationto:20192018HK$'000HK$'000Bankingfacilitiesgrantedtoassociates1,3983,008Bankingfacilitiesgrantedtoajointventure–318,645Guaranteesgiventobanksandhousingretirementfundmanagementcentresformortgagefacilitiesgrantedtocertainbuyersofproperties521,960545,738523,358867,391TheGroup'sshareofcontingentliabilitiesofitsjointventureswasasfollows:20192018HK$'000HK$'000Guaranteesgiventobanksformortgagefacilitiesgrantedtocertainbuyersofthejointventures'properties2872,7393217CommitmentTheGrouphadcommitmentasfollows:20192018HK$'000HK$'000Contractedbutnotprovidedforintheconsolidatedfinancialstatementsinrespectof–propertydevelopmentprojects342,284733,446–acquisitionofproperty,plantandequipment1,0835,773343,367739,219TheGroup'sshareofcommitmentofitsjointventureswasasfollows:20192018HK$'000HK$'000Contractedbutnotprovidedfor8,69912,38118Assetsheld-for-sale/liabilitiesdirectlyassociatedwithassetsheld-for-saleInDecember2018,theGroupenteredintoasaleandpurchaseagreementwithanindependentthirdpartytodisposeoftheGroup'sentireinterestinMoonColourHoldingsLimitedanditswhollyownedsubsidiaries(together,"MoonColourgroup",thegroupengagedinthepropertydevelopmentprojectlocatedatTaiYipStreet,KwunTong),ataconsiderationofHK$540millionasdisclosedinnote19(a).
InMarch2019,theGroupenteredintoanoptionagreementwithanindependentthirdparty.
Undertheoptionagreement,thecounterpartyhasrighttoacquireNewRisePropertiesLimited("NewRise",awhollyownedsubsidiaryoftheGroupwhichholdstheinterestinthepropertysituatedattheGroundFloorofBlockAandtheGroundFloorofBlockB,EastSunIndustrialCentretogetherwithCarParkSpaceNos.
23and24,GroundFloor,EastSunIndustrialCentre,KwunTong)asdisclosedinnote19(b).
Asaresultofthesetransactions,theassetsandliabilitiesofMoonColourgroupandNewRisewerereclassifiedasassetsandliabilitiesheld-for-salerespectivelyasat31March2019.
2019HK$'000AssetsInvestmentproperties146,000Propertiesunderdevelopment367,498Deferredtaxassets3,028Debtors,depositsandprepayments23Assetsofsubsidiariesreclassifiedasheld-for-sale516,549Liabilitiesofsubsidiariesreclassifiedasheld-for-saleCreditors,depositsandaccruals343319Eventsaftertheendofthereportingperiod(a)DisposaloftheentireequityinterestinapropertydevelopmentprojectlocatedatTaiYipStreet,KwunTongInDecember2018,theGroupenteredintoasaleandpurchaseagreementwithanindependentthirdpartytodisposeoftheGroup'sentireinterestinMoonColourgroupataconsiderationofHK$540million.
ThetransactioncompletedinApril2019,resultinginagainondisposalofapproximatelyHK$165million(netoftransactioncosts)recognisedintheconsolidatedincomestatementfortheyearending31March2020.
(b)DisposaloftheentireequityinterestinapropertylocatedatKwunTongInMarch2019,theGroupenteredintoanoptionagreementwithanindependentthirdparty.
Undertheoptionagreement,thecounterpartyhasrighttoacquireNewRise.
InJune2019,thecounterpartyhasexercisedtheoptiontoacquireNewRiseataconsiderationofHK$187million.
Thetransactioncompletedinthesamemonth,resultinginagainondisposalofapproximatelyHK$39million(netoftransactioncosts)recognisedintheconsolidatedincomestatementfortheyearending31March2020.
(c)DisposaloftheentireequityinterestinapropertylocatedatDavisStreet,HongKongInJune2019,theGroupenteredintoaprovisionalagreementwithanindependentthirdpartytodisposeoftheGroup'sentireinterestinJumboRainbowLimitedanditssubsidiaryataconsiderationofHK$280million.
Thetransactionwillbetakenplaceonorbefore31October2019subjecttotheduediligenceinvestigationbythepurchaser.
Uponcompletion,thegainondisposalofapproximatelyHK$71million(netoftransactioncosts)willberecognisedintheconsolidatedincomestatementfortheyearending31March2020.
DIVIDENDTheBoardofDirectorsrecommendsthepaymentofafinaldividendofHK$0.
35(2018:HK$0.
25)persharepayableincashtoshareholderswhosenamesappearontheRegisterofMembersoftheCompanyonWednesday,11September2019.
TogetherwithaninterimdividendofHK$0.
15(2018:HK$0.
10andaone-offspecialinterimdividendofHK$1.
40)persharepaidonFriday,21December2018,thetotaldividendsfortheyearamountedtoHK$0.
50(2018:HK$1.
75)pershare.
SubjecttotheapprovalbyshareholdersattheforthcomingannualgeneralmeetingoftheCompanytobeheldonWednesday,28August2019(the"AGM"),theproposedfinaldividendwillbepayableincashtoshareholdersonoraboutWednesday,18September2019.
CLOSUREOFREGISTEROFMEMBERSFordeterminingtheentitlementtoattendandvoteattheAGM,theRegisterofMembersoftheCompanywillbeclosedfromThursday,22August2019toWednesday,28August2019,bothdaysinclusive,duringwhichperiodnotransferofshareswillbeeffected.
InordertobeeligibletoattendandvoteattheAGM,alltransferdocumentsaccompaniedbytherelevantsharecertificatesmustbelodgedwiththeCompany'sbranchshareregistrarinHongKong,TricorStandardLimited,atLevel54,HopewellCentre,183Queen'sRoadEast,HongKongforregistrationnotlaterthan4:30p.
m.
onWednesday,21August2019.
34Fordeterminingentitlementtotheproposedfinaldividend(subjecttothepassingofanordinaryresolutionbytheshareholdersoftheCompanyattheAGM),theRegisterofMembersoftheCompanywillbeclosedfromThursday,5September2019toWednesday,11September2019,bothdaysinclusive,duringwhichperiodnotransferofshareswillbeeffected.
Inordertoqualifyfortheproposedfinaldividend,alltransferdocumentsaccompaniedbytherelevantsharecertificatesmustbelodgedwiththeCompany'sbranchshareregistrarinHongKong,TricorStandardLimited,Level54,HopewellCentre,183Queen'sRoadEast,HongKongforregistrationnotlaterthan4:30p.
m.
onWednesday,4September2019.
MANAGEMENTDISCUSSIONANDANALYSISTheGroup'sconsolidatedrevenuewasHK$6,893million(2018:HK$6,980million),representingaslightdecreaseof1%whencomparedwiththelastfinancialyear.
Takingintoaccountitsshareofrevenueinitsassociatesandjointventures,totalsegmentrevenuewasHK$9,563million(2018:HK$9,301million),representinganincreaseof3%.
Excludingtheone-offgainsresultingfromthedisposalofaninterestintheChengduprojectandthedisposalofaninterestinawholly-ownedsubsidiaryinHongKonginthelastfinancialyear,profitfortheyearended31March2019reportedahealthyincreaseof67%toHK$699million.
ProfitattributabletotheCompany'sshareholdersfortheyearended31March2019wasHK$655million(2018:HK$908million),andearningspersharewasHK$2.
17(2018:HK$3.
01).
CONSTRUCTIONANDENGINEERINGTheConstructionandEngineeringsegment'srevenuefortheyearended31March2019recordedaslightlyincreaseof2%toHK$4,262million(2018:HK$4,175million)whilesegmentprofitincreasedby71%fromHK$172milliontoHK$294million.
TheincreaseinprofitwasmainlyduetotheincreaseinthecontributionfromtheGroup'sassociates.
Privateandpublicsectorsprojectsremainedasthecorebusinessesofourbuildingconstructiondivision.
InnovativeconstructionmethodssuchasBuildingInformationModellinghasbeenusedtoenhancetheproductivitywhiletheapplicationofautomationtechnologylikepre-fabricatedpartsortheModularIntegratedConstruction(MiC)haseasedthesetbackcausedbymanpowershortageintheindustry.
Throughinnovationsandtechnologies,webelievethattheconstructionindustrycansavecostsandimproveworkforceproductivityinthelong-run.
ContributionfromtheelectricalandmechanicalengineeringdivisionmaintainedsteadygrowthinHongKongandMacau.
ThedivisioncontinuedtosecuremajorcontractsfromGalaxyResort&CasinoatCotaiCity,Macaufortheprovisionofmechanical,electricalandplumbingworksduringtheyearunderreview.
Thealuminiumwindowsandcurtainwallsdivisionmaintainedsteadygrowthinprofitduringtheyearinspiteofstretchedlaboursupply.
ThisdivisionwillactivelylookforopportunitiesinbothHongKongandAustraliainthecomingyear.
35Thebuildingsupplydivisionexperienceddecreaseinbothrevenueandprofitduetokeenmarketcompetitionduringtheyear.
Thisdivisionwillcontinuetoseekreliablesupplierstoexploreandexpandbusinessopportunities.
Theenvironmentalengineeringdivisionreportedlossduringtheyearduetotheincreaseinlabourcost.
Withseasonedexpertsinthisfield,thisdivisionhasformedjointventureswithpartnersincarryingoutsewagetreatmentandwatertreatmentworksprojectsfortheDrainageServicesDepartmentandWaterSuppliesDepartment,respectively.
Giventherewillbeanumberoflarge-scalesewageandwatertreatmenttenderstobeissuedbytheGovernmentoftheHKSARinthecomingfinancialyear,itisexpectedthatthecontributionperformanceofthisdivisionwillturnaroundinthecomingyear.
AsaresultofpositivecontributionfromassociatesinMainlandChina,theliftandescalatordivisionrecordedanencouragingresultduringtheyear.
WithanincreaseintheawarenessofliftsafetyandtheadvocacyforrehabilitationofliftsinageingbuildingsinHongKong,itisanticipatedthatthedemandforthesupplyandinstallationofliftsandrelatedequipmenttoreplaceagedliftsundertheGovernmentLiftModernisationSubsidySchemewillincrease.
TheGroupbelievesthatitwillbringlotsofopportunitiestothisdivisioninthecomingyears.
Asat31March2019,thetotalvalueofalloutstandingconstructionandengineeringcontractsoftheGroup'ssubsidiariesamountedtoHK$5,885million.
Majorcontractsinclude:1.
ConstructionoftheextensionofOperatingTheatreBlockforTuenMunHospital,NewTerritories;2.
ConstructionofCommercialDevelopmentatA.
I.
L.
462YipKanStreet&WongChukHangRoad;3.
ConstructionofHeatedSwimmingPoolatMorsePark;4.
UpgradeofKwunTongPreliminaryTreatmentWorks;5.
MechanicalandElectricalworksforGalaxyResort&CasinoPhase3CMulti-FunctionalHallConventionComplexandHotelatCotaiCity,Macau;6.
Design,supplyandinstallationoftowerandpodiumfacadeforNo.
3,AKungNgamVillageRoad,ShauKeiWan,HongKong;and7.
SupplyofkitchencabinetsforresidentialunitsatLohasPark6,TseungKwanO,NewTerritories.
PROPERTYINVESTMENTThePropertyInvestmentsegmentprimarilycomprisedofthepropertiesrentalbusinessesinHongKong,SingaporeandMainlandChinaduringtheyearunderreview.
ThissegmentexperiencedaslightincreaseinrevenuefromHK$136milliontoHK$140million,representinganincreaseof3%whileprofitdecreasedby4%fromHK$279milliontoHK$269million.
Theslightincreaseinrevenuewasmainlyattributablefromthestableincomearisingfromthelettingoftheproperties.
36TheGroupacquiredapropertylocatedat1Band1CDavisStreet,HongKonginthelastfinancialyear.
Thepropertycomprisesofresidentialandcommercialunitsandhasatotalgrossfloorareaofabout9,100squarefeet.
ThepropertyprovidedstablerentalincomeduringtheyearandofferspotentialcapitalappreciationofthepropertiestotheGroup.
Subsequenttothefinancialyear,theGroupdisposedthepropertyattheconsiderationofHK$280million.
Thetransactionwillbecompletedonorbefore31October2019subjecttothesatisfactionofduediligence.
PROPERTYDEVELOPMENTANDOPERATIONSDuringtheyearunderreview,thePropertyDevelopmentandOperationssegmentrecordedadecreaseinbothrevenueandprofitby8%fromHK$1,105milliontoHK$1,021millionandby75%fromHK$859milliontoHK$218million.
Thedeclineoftheresultsweremainlyduetotheexclusionofthedisposalofaninterestin(i)theChengduprojectandawholly-ownedsubsidiaryinHongKong,and(ii)thereducedrecognitionofthesalesofresidentialpropertiesinChangchun.
CityHub,aprojectofadevelopmentrightgrantedtoa50-50jointventureoftheGroupbyUrbanRenewalAuthority("URA")fortheredevelopmentofthesitelocatedatChiKiangStreet/HaHeungRoad,ToKwaWan,Kowloon.
Itisa28-storeybuildingwhichcomprisesresidentialunitsandtwo-levelshoppingcenter.
Saleableareaoftheresidentialunitsfallbetween221to1,551squarefeet.
Almost90%ofthetotalresidentialunitshavebeensoldsincetheissuanceoftheCertificateofComplianceinJanuary2018.
Theremainingresidentialunitsandshoppingcenterareopentomarketforsale.
FoundationworksoftheredevelopmentprojectjointlydevelopedbyURAandtheGroupat8FukChakStreet,TaiKokTsui,KowloonwascompletedattheendofMay2019andsuperstructureworkscommencedinJune2019.
Leasedsiteareaofthisprojectisapproximately8,200squarefeetandtheprojectwillbedevelopedintosmalltomediumsizedresidentialunitswithgrossfloorareaofabout55,000squarefeetandcommercialareaof7,000squarefeet.
Theprojectisscheduledforcompletionby2020/2021.
TheGroupcommencedandcompletedrelevantdemolitionworkattheredevelopmentprojectlocatedat4TaiYipStreet,Kowloonduringtheyear.
ThesitewassubsequentlysoldtoHongKongBaptistHospitalinApril2019andtheGrouphassincethedisposalbeenappointedasProjectManagerforthisproject.
Demolitionworksoftheredevelopmentprojectat292A-DPrinceEdwardRoadWest,Homantin,Kowloonwascompletedduringtheyearunderreview.
FoundationworkscommencedinApril2019.
SincethesiteissituatedinanupmarketareainKowloon,theGroupintendedtoredevelopitintoaluxuriousresidentialblockwithatotalgrossfloorareaofapproximately39,000squarefeet.
Theprojectisexpectedtocompletein2021/2022.
Demolitionworksfortheredevelopmentprojectat5HangLokLane,ShatincompletedinApril2019andtheGroupintendedtoredevelopthisprojectintoaluxuriousresidentialdevelopment.
TheGroupbelievesthat,inviewofdemandsoftheHongKongpropertymarket,togetherwiththeGroup'spastexperienceinrealestateprojects,theacquisitionrepresentsagoodopportunityfortheGrouptofurtherexpanditspropertydevelopmentbusiness.
37Unitsof"MyVilla"inBeijingandunitsofPhaseIIof"ChevalierCity"inChangchunremainforsaleinthemarketduringtheyear.
ConstructionworkofPhaseIIIof"ChevalierCity",coveringapproximately100,000squaremetresandprovidingabout1,100residentialunits,commencedduringtheyear.
Itisexpectedtocompleteby2020/2021.
Thecoldstorageandlogisticsbusinessmaintainedgrowthbothinitsturnoverandprofit.
TheimprovementintheoccupancyrateoftwocoldstoragewarehouseslocatedatKwaiChungledtotheriseincontributionfromthisdivisionisarisingduringtheyearunderreview.
Forthelogisticsbusiness,theGroupwillcontinuetofocusonitscoldchainlogisticsbusinessininternationalfreightforwarding,andmaintaincloseco-operationwithkeyaccountclientsbyprovidingadditionalqualityin-storeserviceandall-in-onetotallogisticsreeferservicesolutiontobackthoseclientsinfacingthekeencompetitiveanddemandingmarket.
HEALTHCAREINVESTMENTThissegment'srevenueexperiencedanincreaseinrevenueby45%fromHK$598milliontoHK$866millionandanincreaseinprofitfromHK$3milliontoHK$144millionaftertakingintoconsiderationthetransactioncostsoftheacquisitionofvariousnewinvestmentsinthissegment.
Duringtheyear,theGroupcompletedtheacquisitionof10seniorhousingpropertieswithanaggregateofapproximately1,000units.
Asat31March2019,theGroupowned35seniorhousingfacilitiesacross6statesintheUnitedStatesprovidingover3,000unitsorbedscoveringawidespectrumofindependentliving,assistedlivingandmemorycareandskillednursingservices;whichareinadditionto3medicalofficebuildingslocatedinNewYork,PennsylvaniaandRhodeIslandcomprisingatotalgrossfloorareaofapproximately428,000squarefeet.
Inviewoftheexpectedriseinagedpopulationandincreaseinhealthcarespending,theGroupbelievesthatdemandforseniorhousingfacilitiesandmedicalofficebuildingswillcontinuetogrowintheUnitedStates.
LeveragingonourexperienceinthehealthcarebusinessintheUnitedStates,theGrouphaspartneredwithMitsui&Company(HongKong)LimitedandHongKong-MacaoConferenceLimited,toengageintheredevelopmentofVentriaResidenceinHappyValley,HongKong.
Constructionworksareunderwayandthetargetopeningdateoftheresidenceisin2021/2022.
CARDEALERSHIPDuringtheyear,revenueofthissegmentreportedaslightdecreaseby6%fromHK$2,754milliontoHK$2,595million.
AccordingtotheChinaAssociationofAutomobileManufacturers,China'sautosalesnegativegrowthratein2018was2.
8%,makingitthefirstnegativegrowthinthepast28years.
AdversefactorsofSino-UStradedispute,slowingmacroeconomicgrowth,exitofcarpurchasetaxpreferentialpolicy,stockclearanceofNationalVEmissionStandardvehiclesinordertomeettheimplementationoftheNationalSixEmissionStandardson1July2019andlackoftaxincentivesfornewenergyvehiclebuyersinChengduaffectedtheresultsofthissegment.
38InChengdu,agroupofcompanieswhichgeneratesover86%revenueofthissegmentprovidescoverageof6importanddomesticcarbrandsandoperatesatotalof124Sshops.
About14,000unitsofcarsweresoldduringtheyearputtingusinaleadingpositioninChengdu'sdomesticcarmarket.
InCanada,theoverallperformanceofourtwoautomobiledealershipswasalsoaffectedbytheslowingofthemacroeconomicgrowthfortheyearunderreview.
OurCanadateamwillcontinuetoexploreopportunitiesforcardealershipbusiness.
OTHERSDuringtheyear,segmentrevenuerecordedanincreasefromHK$533milliontoHK$679million.
Segmentprofitrecordeddecreaseof36%fromHK$73milliontoHK$47million.
Thedecreaseofprofitwasmainlyduetothedecreaseintherealisedandunrealisedgainininvestment.
ThecontributionoftheTotalGrossPremiumWrittenoftheinsurancemaintainedasteadyincreaseduringtheyearunderreview,supportedbyexpandingEmployees'CompensationInsurancebusinesswithunderwritingnumerousconstructionprojectsincludingtheconstructionofIntegratedRetail,DiningandEntertainmentDevelopmentinSKYCITYatHongKongInternationalAirport.
TheperformanceoftheEmployees'CompensationInsuranceandPropertyInsurancemaintainedpositiveandcontinuestocontributesignificantlytothissegment'srevenueandprofit.
Todiversifytherisksandtoprotectagainstextremeevents,theGroupalwaysreviewsandensuresitsreinsuranceprogramsaresufficientinmeetingcurrentandfuturesituations.
InthevolatileandcompetitivemarketinHongKong,thebusinesswillcontinuetoadoptaprudentialunderwritingapproachandfocusonbuildingitscapabilitytoensuresustainablegrowth.
FINANCIALREVIEWAsat31March2019,theGroup'snetassetsattributabletoshareholdersoftheCompanyamountedtoHK$9,021million,anincreaseofHK$288millionwhencomparedwith31March2018ofHK$8,733million.
SuchincreasewasmainlyresultedfromtheprofitattributabletoshareholdersoftheCompanyofHK$655millionoffsetbyexchangedifferenceontranslationofoperationsofoverseassubsidiaries,associatesandjointventuresofHK$233millionanddividendpaymentofHK$121million.
Asat31March2019,bankbalancesandcashincreasedtoHK$1,833million(2018:HK$1,723million).
BankandotherborrowingsincreasedtoHK$3,740millionasat31March2019(2018:HK$3,377million)asaresultofpaymentforacquiringtenseniorhousingpropertiesduringtheyear.
57.
8%and38.
3%ofthebalanceasat31March2019(2018:62.
1%and33.
8%)weredenominatedinHongKongdollarandUSdollarrespectively.
TheGroup'swithinoneyearbankandotherborrowingsinrespectoftheportionwasincreasedfrom22.
7%asat31March2018to29.
7%asat31March2019.
39EMPLOYEESANDREMUNERATIONPOLICIESTheGroupemployedapproximately4,000full-timestaffunderitssubsidiariesgloballyasat31March2019.
TotalstaffcostsamountedtoHK$1,149millionfortheyearended31March2019.
TheremunerationpoliciesoftheGrouparereviewedperiodicallyonthebasisofthenatureofjob,markettrend,companyperformanceandindividualperformance.
Otherstaffbenefitsincludebonusesawardedonadiscretionarybasis,medicalschemesandretirementschemes.
PURCHASE,SALEORREDEMPTIONOFLISTEDSECURITIESTherewasnopurchase,saleorredemptionoflistedsecuritiesoftheCompanybytheCompanyoranyofitssubsidiariesduringtheyear.
CORPORATEGOVERNANCEPRACTICESIntheopinionoftheDirectors,theCompanyhascompliedwiththecodeprovisionsassetoutintheCorporateGovernanceCode("CGCode")containedinAppendix14oftheRulesGoverningtheListingofSecurities(the"ListingRules")onTheStockExchangeofHongKongLimited(the"StockExchange")throughouttheyearended31March2019,exceptforthefollowingdeviations:CodeProvisionA.
2.
1stipulatesthattherolesofchairmanandchiefexecutiveshouldbeseparateandshouldnotbeperformedbythesameperson.
TheChairmanisresponsibleforoverseeingtheBoardwhiletheManagingDirectorisresponsibleformanagingtheGroup'sbusinesses.
Mr.
KuokHoiSangservesasboththeChairmanandManagingDirectoroftheCompany.
TheBoardbelievesthatwithMr.
Kuok'scomprehensiveknowledgeinthehistoryandvariousbusinesssegments,andhisextensiveexperienceintheoperationoftheGroup,vestingtherolesofbothChairmanandManagingDirectorinMr.
KuokprovidestheCompanywithstrongandconsistentleadershipandfacilitatestheimplementationandexecutionoftheGroup'sbusinessstrategieswhichisinthebestinterestoftheCompany.
CodeProvisionA.
4.
1stipulatesthatNon-ExecutiveDirectorsshouldbeappointedforaspecifictermandsubjecttore-election.
AlltheNon-ExecutiveDirectorsoftheCompanyarenotappointedforaspecifictermbutareinsteadsubjecttoretirementbyrotationandre-electionatannualgeneralmeetingsoftheCompanyinaccordancewiththeCompany'sBye-Laws.
CodeProvisionA.
6.
7stipulatesthattheIndependentNon-ExecutiveDirectorsandotherNon-ExecutiveDirectorsshouldattendgeneralmeetingsanddevelopabalancedunderstandingoftheviewsofshareholdersoftheCompany.
ThelateIr.
Dr.
ChowMingKuen,JosephwasunabletoattendtheannualgeneralmeetingoftheCompanyheldon29August2018duetohealthcondition.
40FollowingthepassingofIr.
Dr.
ChowMingKuen,Joseph,anIndependentNon-ExecutiveDirector,chairmanoftheRemunerationCommittee,andamemberofeachoftheAuditCommitteeandtheNominationCommitteeoftheCompany,on13October2018,thenumberoftheindependentnon-executivedirectorsoftheCompanyfellbelowtheminimumnumberrequiredunderRules3.
10Aand3.
21oftheListingRules.
Inaddition,theCompanynolongermeetsthecompositionrequirementoftheRemunerationCommitteeunderRule3.
25oftheListingRulesandthecompositionrequirementoftheNominationCommitteeunderCodeProvisionA.
5.
1oftheCGCode.
FollowingtheannouncementoftheCompanymadeon26February2019regardingtheappointmentofMr.
SunLelandLiHsunasIndependentNon-ExecutiveDirectorandamemberoftheAuditCommitteeoftheCompany,ProfessorPoonChungKwongasamemberandchairmanofRemunerationCommitteeandamemberoftheNominationCommittee,andMr.
IronsSzeasamemberoftheAuditCommitteeoftheCompany,theCompanyisnowincompliancewithRule3.
10A,Rule3.
21andRule3.
25oftheListingRulesandCodeProvisionA.
5.
1oftheCGCode.
MODELCODEFORSECURITIESTRANSACTIONSTheCompanyhasadoptedtheModelCodeforSecuritiesTransactionsbyDirectorsofListedIssuers(the"ModelCode")assetoutinAppendix10oftheListingRules.
Followingaspecificenquiry,eachoftheDirectorsconfirmedthathe/shehascompliedwiththeModelCodethroughouttheyear.
AUDITCOMMITTEETheAuditCommitteecomprisesoffourIndependentNon-ExecutiveDirectorsoftheCompany,namelyMr.
YangChuenLiang,CharlesasCommitteeChairman,Ir.
Dr.
ChowMingKuen,Joseph(deceasedon13October2018),ProfessorPoonChungKwong,Mr.
IronsSze(appointedon26February2019)andMr.
SunLelandLiHsun(appointedon26February2019).
Duringtheyear,theAuditCommitteereviewedwiththemanagementtheaccountingpoliciesandpracticesadoptedbytheGroupanddiscussedauditing,riskmanagement,internalcontrolssystemsoftheGroupandfinancialreportingmattersincludingtheauditedconsolidatedfinancialstatementsoftheGroupfortheyearended31March2019.
Theyalsoreviewedandapprovedtheengagementofexternalauditorsforprovidingnon-auditservices,theremunerationinrespectofauditandnon-auditservicesprovidedbyexternalauditors,riskmanagementandinternalcontrolsystemsandtheeffectivenessoftheinternalauditfunction.
PUBLICATIONOFANNUALRESULTSONTHESTOCKEXCHANGE'SWEBSITETheannualresultsannouncementoftheCompanyfortheyearended31March2019ispublishedontheStockExchange'swebsiteathttp://www.
hkexnews.
hkandtheCompany'swebsiteathttp://www.
chevalier.
com.
TheannualreportoftheCompanyfortheyearended31March2019containingallapplicableinformationrequiredbytheListingRuleswillbedespatchedtotheshareholdersoftheCompanyandpublishedontheabovewebsitesinduecourse.
41APPRECIATIONOnbehalfoftheBoard,Iwishtoextendmysincereappreciationtomyfellowdirectors,ourmanagementandallemployeesoftheGroupfortheirpassionandprofessionalism,aswellastoallstakeholdersfortheirunwaveringsupport.
ByorderoftheBoardChevalierInternationalHoldingsLimitedKUOKHoiSangChairmanandManagingDirectorHongKong,26June2019Asatthedateofthisannouncement,theBoardofDirectorsoftheCompanycomprisesMessrsKuokHoiSang(ChairmanandManagingDirector),TamKwokWing(DeputyManagingDirector),HoChungLeung,MaChiWingandMissLilyChowasExecutiveDirectors;Mr.
YangChuenLiang,Charles,ProfessorPoonChungKwong,Mr.
IronsSzeandMr.
SunLelandLiHsunasIndependentNon-ExecutiveDirectors;Dr.
KoChanGock,WilliamandMr.
ChowVeeTsung,OscarasNon-ExecutiveDirectors.
*Foridentificationpurposeonly