• Abstract and Figures
• Public Full-text

About FSE Services Group Limited FSE Services Group Limited (Hong Kong Stock Code: 331) is one of the leading diversified service providers in Hong Kong, which has 5 major competences: electrical and mechanical (“E&M”) engineering, environmental services, cleaning and waste management, professional laundry services as well as property and facility management. FSE Services’ competences are being delivered through 5 major groups of companies which have all been the market leaders in the respective industries. They include FSE Engineering Group, FSE Environmental Technologies Group, Waihong Services Group (“Waihong”), New China Laundry Group (“NCL”) and FSE Property and Facility Management Services Group which comprises Urban Group (“Urban”) and Kiu Lok Service Management Group (“Kiu Lok”). With their professionalism and expertise, together with the extensive synergies generated among the companies under FSE Services, the Group is able to build up a strong network and offer a full range of professional services to renowned clients and main contractors who are often engaged in property developments, public infrastructures, education and transportation facilities as well as entertainment and travel industries in Hong Kong, Macau and the Mainland China. Our Vision Better Life, Better Home, Better Quality to You Everyday. Our Mission We offer superior service, we create an integrated, convenient and safe living environment. We are devoted to serve: Our Customers — We provide customised service and maintain long term partnership. Our Staff — We promote work-life balance and create a strong sense of belonging. Our Community — We maintain sustainable development and contribute to community. Our Core Values Quality Teamwork Integrity Caring Passion Innovation Contents Financial Highlights 2 Major Events and Accolades 4 Chairman’s Statement 8 Board of Directors and Senior Management 11 Corporate Governance Report 18 Management Discussion and Analysis 31 Report of the Directors 51 Independent Auditor’s Report 75 Consolidated Income Statement 79 Consolidated Statement of Comprehensive Income 80 Consolidated Statement of Financial Position 81 Consolidated Statement of Changes in Equity 83 Consolidated Statement of Cash Flows 84 Notes to the Consolidated Financial Statements 85 Five-Year Financial Summary 178 Corporate Information 180 This annual report is printed on environmental paper 本 年 報經由環保紙印製 Where the English and the Chinese texts conflict, the English text prevails. Financial Highlights 2020 2019 % Change (restated)(i) HK$M HK$M Revenue 4,882.1 5,422.7 -10.0% Gross profit 760.4 769.5 -1.2% Profit attributable to shareholders of the Company 309.6 307.4 +0.7% Basic earnings per share HK$0.68 HK$0.68 – The Board recommended the declaration of a final dividend of HK14.4 cents (2019: HK11.9 cents) per ordinary share to the ordinary shareholders of the Company for the year ended 30 June 2020(ii). Note (i) Comparative figures have been restated for the Group’s application of merger accounting for business combinations under common control. Details of the restatements are set out in Note 2.1(iv) to the consolidated financial statements. Note (ii) Together with the interim dividend of HK12.8 cents (2019: HK10.1 cents) per ordinary share paid in March 2020, total distribution of ordinary share dividends made by the Company to its ordinary shareholders for the year ended 30 June 2020 will be HK27.2 cents (2019: HK22.0 cents) per share, representing an increase of 23.6% compared with last year’s and a dividend payout ratio of 45.7% (2019: 40.0%), calculated based on the Group’s adjusted profit for the year ended 30 June 2020 attributable to ordinary shareholders of HK$267.7M (i.e. after excluding the profit of HK$37.3M made by the property and facility management services business during the period from 1 July 2019 to 16 December 2019, the day of completion of the Group’s acquisition of the property and facility management services business as described in Note 2.1(iv) to the consolidated financial statements, and preferred distribution to the holder of convertible preference shares of HK$4.6M for the year ended 30 June 2020 from profit attributable to shareholders of the Company of HK$309.6M) (For the year ended 30 June 2019: 40.0%, calculated based on the Group’s profit for the year ended 30 June 2019 attributable to shareholders of the Company of HK$247.5M as previously reported in the Group’s consolidated financial statements for the year ended 30 June 2019 which does not include the profit of HK$59.9M made by the property and facility management services business during the year ended 30 June 2019 accounted for pursuant to its application of merger accounting for business combinations under common control as mentioned in Note (i) above). 2 FSE Services Group Limited Financial Highlights FSE SERVICES GROUP — CONSOLIDATED Revenue by Region Profit Attributable to Shareholders of the Company For the year ended 30 June For the year ended 30 June HK$’million HK$’million 6,000 350 492 5,000 465 474 417 300 1,129 59 4,000 1,016 56 250 63 58 3,938 3,000 3,914 4,171 200 2,368 2,843 51 52 2,000 310 237 248 150 174 1,000 405 163 477 659 793 699 382 0 380 354 200 329 100 2016* 2017* 2018* 2019* 2020 2016* 2017* 2018* 2019* 2020 Hong Kong — Reported gures with no restatements** Reported gures with no restatements** Hong Kong — Restatements for cleaning and laundry*** Restatements for cleaning and laundry*** Hong Kong — Restatements for property and facility management**** Restatements for property and facility management**** Mainland China Macau E&M ENGINEERING & ENVIRONMENTAL SERVICES SEGMENT Revenue by Region Profit for the Year For the year ended 30 June For the year ended 30 June HK$’million HK$’million 4,000 220 203 200 3,000 185 180 180 174 163 2,843 2,746 2,000 2,368 2,744 160 2,379 140 1,000 405 120 477 659 793 382 699 380 354 200 329 0 100 2016 2017 2018 2019 2020 2016 2017 2018 2019 2020 Hong Kong Mainland China Macau INTEGRATED PROPERTY & FACILITY SERVICES SEGMENT Revenue by Region Profit for the Year For the year ended 30 June For the year ended 30 June HK$ million HK$ million 2,000 130 125 1,801 125 1,800 1,696 120 1,645 1,595 114 1,600 115 113 110 1,434 110 1,400 105 104 1,200 100 2016* 2017* 2018* 2019* 2020 2016* 2017* 2018* 2019* 2020 Hong Kong * Restated for the Group’s application of merger accounting for business combinations under common control ** Reported figures per respective years’ published annual results without including subsequent restatements caused by business acquisitions *** Restatements for the amounts of cleaning and laundry services businesses acquired in April 2018 **** Restatements for the amounts of property and facility management services business acquired in December 2019 Annual Report 2019-2020 3 Major Events and Accolades JULY 2019 FSE Services Group Limited (the “Company”) garnered the “Outstanding Listed Company Award 2019” from The Hong Kong Institute of Financial Analysts and Professional Commentators Limited (“IFAPC”) for the fourth consecutive year, affirming the Company’s dedication in maintaining high level of transparency and delivering sustainable business performance throughout the year. The Company and its volunteer team received the “Gold Award for Volunteer Service (Organization)” and “Gold Award for Volunteer Service (Group)” from the Social Welfare Department respectively in appreciation of its contribution of over 1,000 hours of volunteer service to the community in 2019. SEPTEMBER 2019 2 properties managed by Urban — Rhythm Garden and The Merton received a total of 4 awards in the presentation ceremony of “International Facility Management Association (“IFMA”)’s Asia Pacific Awards of Excellence 2019.” organised by the IFMA. In particular, Rhythm Garden was presented the highest level of award — “Winner” in the category of Asia Pacific Facility Management Operations. 4 FSE Services Group Limited Major Events and Accolades OCTOBER 2019 23 properties under the Urban received the “Excellence in Facility Management Award” presented by The Hong Kong Institute of Facility Management, in recognition of the outstanding facility management services provided by it including technological advancement, green initiatives, carbon reduction, barrier-free access, and high occupational health and safety standard. NOVEMBER 2019 Majestic Engineering Company Limited (“Majestic Engineering”) won the “Gold Prize” at the ”Outstanding Registered Electrical Contractor Competition 2019” organised by the Electrical and Mechanical Services Department (“EMSD”). DECEMBER 2019 The Company, together with its subsidiaries, received awards under the volunteer team and enterprise categories at “The 10th Hong Kong Outstanding Corporate Citizenship Awards Presentation Ceremony” for their outstanding achievements in implementing and promoting corporate social responsibility. Annual Report 2019-2020 5 Major Events and Accolades DECEMBER 2019 FSE Engineering Group Limited (“FSEE”) participated in the “Construction Innovation Expo (“CIExpo”) 2019” which was co- organised by the Development Bureau of the Government of the Hong Kong Special Administrative Region and various organisations with an aim to increase the construction productivity and develop Construction 2.0. FSEE garnered the “Merit Award of the Best Exhibitor 2019”. JANUARY 2020 Waihong was awarded the “Gold Award” for “Best Property Contractor in Occupational Safety and Health — The Palazzo” in the award presentation ceremony of “The 7th Best Property Safety Management

Load more

  183

Copy Link