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Public company info - Vantage International (Holdings) Ltd. , 00015.HK
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Vantage International (Holdings) Ltd., 00015.HK - Company Profile
Chairman NGAI Chun Hung
Share Issued (share) 1,683,000,000
Par Currency Hong Kong Dollar
Par Value 0.025
Industry Construction & Decoration
Corporate Profile Business Summary: The Group is engaged in the following principal activities: • construction, maintenance and other contract works in public and private sectors in Hong Kong • property investment and development • provision of finance Performance for the year: For the year ended 31 March 2020, the Group’s loss attributable to owners of the parent amounted to approximately HK$217 million compared to profit of HK$705 million in last year. The basic loss per share for this year was HK12.89 cents compared to earnings of HK41.86 cents in last year. In addition, the equity attributable to owners of the parent as at 31 March 2020 amounted to HK$3,954 million (approximately HK$2.35 per share), representing a decrease of 6% (31 March 2019: HK$4,206 million (approximately HK$2.50 per share)). Business Review Contract Works Market review In recent years, the Hong Kong Special Administrative Region (the “HKSAR” or “Hong Kong”) Government demonstrated its dedication to increase land and housing supply, especially in public housing. As mentioned in 2019 Policy Address, the HKSAR Government expedited planning work by invoking the “Lands Resumption Ordinance” (Cap. 124 of the Laws of Hong Kong) to resume three types of private land for developing public housing and Starter Homes and set aside of HK$5 billion to provide a total of 10,000 transitional housing units, recently increased to 15,000 units, within the next three years. In addition, the HKSAR Government targeted to increase the proportion of public housing in the overall housing supply to 70% under the revised Long Term Housing Strategy, and has also earmarked HK$500 billion for Hospital Authority to implement two “10-year Hospital Development Plans”. All these plans indicate project workload of the construction industry in medium to long term is well supported by the HKSAR Government. However, the progress in funding approval of various public building and infrastructure projects in the Legislative Council of the HKSAR was delayed by various reasons and lead to the workload peaks and troughs for government projects became unpredictable in short term. Recent market data also shows that the industry is suffering from contraction due to disruption caused by outbreak of COVID-19. The Group’s performance The Group currently carries on its contract works business through the Able Group in Hong Kong. The contract works segment can be further divided into two businesses according to nature of contracts, being building construction and RMAA works. As of 31 March 2020, the Group’s substantial contracts on hand were mainly related to building construction works from the public sector. For the year ended 31 March 2020, external revenue earned from the contract works segment amounted to approximately HK$1,546 million (2019: approximately HK$2,385 million), representing a decrease of 35% from that of last year. The decrease in revenue was mainly due to the projects of Able Group in current year were in their preliminary stage of development while the projects in last year were in their mature stage of development. In addition, certain site works of the Group were suspended in February 2020 to prevent the spread of COVID-19 which affected the progress of the projects and reduced the amount of revenue. The gross profit margin of this segment increased slightly from 9.9% for the year ended 31 March 2019 to 10.1% for the year ended 31 March 2020. Under the adoption of HKFRS 15, the gross profit margin of the Group’s individual contract works projects will not remain constant but will fluctuate over different reporting periods, depending on the actual revenue certified for and the respective costs incurred for individual performance obligations completed. Property Investment and Development Market review The social and political unrest in Hong Kong since the second half of the 2019 made more potential home buyers and investors started taking a wait-and-see approach on the property market. The outbreak of COVID-19 even deepened market concerns on the economic outlook. Corporations have tried to cut retail space or office leases to keep their entity survive and their employees employed while landlords are expected to fulfil their social responsibility by providing rental relief to certain tenants, in particular for those in sectors most hard-hit by the epidemic. As so, rent for both retail and commercial properties recorded a slump in this year. The Group’s performance Property investment During the year ended 31 March 2020, the Group’s gross rental income decreased from approximately HK$85 million for the year ended 31 March 2019 to approximately HK$80 million. The decrease in rental income was mainly due to (i) the drop in rental income from the Man Shung Building and properties at No. 1 & No. 1A Wood Road, as all leases were terminated/expired as planned for redevelopment of the properties in current year; (ii) the drop in rent for certain properties when tenancies were renewed in the last quarter of 2019/20; and (iii) the temporary rental concessions granted to certain independent tenants due to the outbreak of COVID-19 in the last quarter of 2019/20. The Group’s “Investment properties” were valued amounting to HK$2,149 million in aggregate as of 31 March 2020 (31 March 2019: HK$2,138 million) by an independent professional valuer. Based on the independent valuation performed, the Group recorded loss on changes in fair value of investment properties of approximately HK$151 million for the year ended 31 March 2020 (31 March 2019: approximately HK$93 million of net gain). The net increase in balance of “Investment properties” in this year was mainly resulted from the net effect of (i) the acquisition of and additions to the Wiltshire Road Property (as defined in this announcement) for a cost of HK$149 million (excluding stamp duty); (ii) the design, planning and alteration works did for other investment properties during this year for approximately HK$13 million; and (iii) the loss on changes in fair value of approximately HK$151 million. Property development The Group recognised nil revenue from property sales in this year (2019: HK$1,055 million). All sales of the “Pokfulam Peak” project were completed in previous years. As at 31 March 2019 and 31 March 2020, the Group’s “Properties held for sale” in the consolidated statement of financial position was referring to the only completed ready-forsale property project “Belfran Peak”, which is located at No. 9 Belfran Road, Kowloon. The “Belfran Peak” project consists of a 20-storey residential building, which contains six duplex apartments, a triplex apartment, car parking spaces and recreational facilities. The Group’s “Properties under development” included residential development projects at No. 1 & No. 1A Wood Road, Wanchai and No. 28 Lugard Road, The Peak. These two development projects are currently at their early stage of development and expected to be completed in the year of 2022 and 2023, respectively. Provision of Finance Market review COVID-19 pandemic has driven the world’s economy into a slowdown. Despite large-scale bailout packages have been introduced by governments and central banks around the world, it is uncertain when the global economy will be recovered. In Hong Kong, uncertain economic environment and increasing unemployment rate adversely affected the creditworthiness of corporations and individuals. The money lending market is inevitably facing an increasing risk of the loan default and delinquency in loan repayments. The Group’s performance A wholly-owned subsidiary of the Group has been granted a licence under the “Money Lenders Ordinance” to carry on the provision of finance business in Hong Kong since September 2015. During this year, interest at rates ranging from approximately 2% to 30% per annum (2019: approximately 2% to 30% per annum) were charged to borrowers and interest income of approximately HK$11 million was earned (2019: approximately HK$20 million). After accessing the credit risk and default risk of individual borrowers, and the securities held by the Group at current year end, the Group recognised an impairment (Expected Credit Losses, “ECLs”) on loans and interest receivables for approximately HK$7 million for this year. Prospects: Facing the triple blow of the US-China trade tensions, the social unrest and the COVID-19 pandemic brought forward from 2019/20, it is expected that the year of 2020/21 will be challenging for Hong Kong and the Group. Although China and the U.S has signed the “phase-one” trade deal in early 2020, the outbreak of COVID-19 in Hong Kong has appeared to be under control and the HKSAR Government has launched three rounds of measures to provide totaling HK$287.5 billion to assist the public and industries affected by COVID-19, Hong Kong is still expected to be under a difficult situation for an extended period as the deep-rooted social conflicts in Hong Kong and the worldwide outbreak of COVID-19 are unlikely to be resolved in short term. Looking ahead, the Group expects the property market of retail, hospitality, commercial and highend residential sectors in Hong Kong will continue to suffer a massive blow from the economic downturn and change in social and business practices due to COVID-19. Accordingly, the rental income of the Group's investment properties and the selling price and profit of the Group's ready-for-sale properties will be under pressure in the year 2020/21. The Group will be cautious about exploring investment opportunities to create favourable conditions for sustainable growth. Regarding the contract works business, the Group believes the volume of construction contracts will be stable in the coming years as the industry is supported by both short-term and long-term measures of the HKSAR Government to increase land and housing supply. The Group expects the turnover from this segment in the coming year will be maintained with reference to the amount of expected outstanding contract values of the substantial contract works projects at current year end and that awarded subsequent to the year end. Contract works is one of the key business of the Group, the Group will continue to put sufficient resources in enhancing the Group's work safety and work efficiency in order to stay competitive in the industry.

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