Despite ongoing geopolitical tensions and market uncertainties, the Group achieved solid returns. Our consolidated revenue was HK$1,478 million (2018: HK$1,781 million) and net profit attributable to shareholders was HK$1,159 million (2018: HK$2,980 million), including an increase in fair value of investment properties net of deferred tax charges of HK$707 million (2018: HK$233 million). The decrease in revenue reflects the expected reduction in property sales attributable to two of the Group’s development projects in Mainland China, namely The Botanica in Guangzhou at its completion stage and Metropolitan Oasis in Nanhai at the beginning of its phase 3 construction. The decrease in profitwas mainly due to the recognition of gain on disposal of a bare site in Guangzhou amounting to HK$2.4 billion in the prior year which was non-recurring in nature. Basic earnings per share was HK$1.61 (2018: HK$4.14).As at 31 March 2019, shareholders’ equity amounted to HK$11,874 million (as at 31 March 2018: HK$11,372 million) and net assets per share attributable to shareholders was HK$16.48 (as at 31 March 2018: HK$15.79). The increase in shareholder’s equity at year end was partly set off by the translation difference caused by the depreciation of Renminbi against Hong Kong Dollars during the year.
DIVIDEND
The Directors recommend the payment of a final dividend of 12.5 Hong Kong cents per ordinary share for the year ended 31 March 2019 (2018: final dividend of 12.5 Hong Kong cents and a special dividend of 5.0 Hong Kong cents) to shareholders whose names appear on the Company's register of members on 6 September 2019. Subject to the approval by the shareholders at the forthcoming annual general meeting, the dividend cheques are expected to be despatched to shareholders on or before 23 September 2019.
CLOSURE OF REGISTER OF MEMBERS FOR ANNUAL GENERAL MEETING
The annual general meeting of the Company is scheduled to be held on 29 August 2019. For determining the entitlement to attend and vote at the annual general meeting, the register of members of the Company will be closed from 26 August 2019 to 29 August 2019 (both days inclusive), during which period no share transfers will be registered. In order to be eligible to attend and vote at the annual general meeting, all transfer forms accompanied by relevant share certificates must be lodged with Tricor Tengis Limited at Level 22, Hopewell Centre, 183 Queen's Road East, Hong Kong (which will be relocated to Level 54, Hopewell Centre, 183 Queen’s Road East, Hong Kong with effect from11 July 2019) not later than 4:30 p.m. on 23 August 2019.
CLOSURE OF REGISTER OF MEMBERS FOR DIVIDEND
The proposed final dividend for the year ended 31 March 2019 is subject to the approval by the shareholders at the annual general meeting. For determining the entitlement to the proposed final dividend, the register of members of the Company will be closed from 5 September 2019 to 6 September 2019, during which period no share transfers will be registered. The last day for dealing in the Company's shares cum entitlements to the proposed final dividend will be 2 September 2019. In order to qualify for the proposed final dividend, all transfer forms accompanied by relevant share certificates must be lodged with Tricor Tengis Limited at Level 22, Hopewell Centre, 183 Queen’s Road East, Hong Kong (which will be relocated to Level 54, Hopewell Centre, 183 Queen’s Road East, Hong Kong with effect from 11 July 2019) not later than 4:30 p.m. on 4 September 2019.
OUTLOOK
In the year ahead, economic growth in advanced countries is expected to be moderate amidst continuing widespread trade protection and uncertainties. The US-China trade conflicts have intensified, stemming from the raising of additional tariffs by the United States on US$200 billion worth of imports from China, leading to the affirmative countermeasures announced by China. The ongoing trade conflicts severely disrupt global supply chains and cloud the global economic sentiment. In the United States, GDP growth is expected to decline from 3 percent as recorded in 2018 due to an expected economic slowdown. Foreseeing that inflation will remain benign, the Federal Reserve is likely to adopt a cautious approach in setting the interest rate as they attempt to maintain growth without triggering inflation. In all, the global economy remains volatile and highly susceptible to external uncertainties including the Brexit and trade negotiation.In the mainland China, GDP expanded by 6.4 percent in the first quarter of 2019, within the government's range of target GDP for 2019. Nevertheless, the economy is forecasted to soften under the prevailing uncertain external environment and heightened trade conflicts. To boost near-term economic growth, the Central Government is likely to adopt accommodative measures to stimulate domestic demand in tandem with debt deleveraging policies to mitigate financial risks. Meanwhile, to curb speculative activity in the real estate market, the Central Government will continue to adhere to the city-specific housing policy of "one policy for one city" in major cities, with the aim towards stabilizing the property market and to enable long term healthy growth.In Hong Kong, economic growth has softened reflecting the impact of external uncertainties (in particular, the US-China trade disputes) on market sentiment and export demand. Fortunately, our local property market is strongly underpinned by a stable employment and income market, low interest environment, and the Government's long term measures to increase housing supply. Coupled with the recent release of the outlined development plans for the Greater Bay Area, which highlights Hong Kong's role as an international centre for finance, transportation, trade and aviation, the local economy will likely benefit from ample opportunities and massive infrastructure works in the long run.Consequently we are cautiously optimistic about the future and will continue to closely monitor market developments and adjust investment strategies to maximize return for our investors.
A NOTE OF THANKS AND APPRECIATION
On behalf of the Board, I would like to thank our shareholders and business partners for their tremendous support and loyalty.Finally, I would like to thank my fellow directors for their valuable advice and all staff members for their efforts during the year under review.
