"A Simple Life", which is based on a true story, scooped five gongs for best film, director, screenplay, actor and actress at the star-studded event considered Hong Kong's equivalent of the Oscars.
"I would like to thank Hong Kong," Ann Hui said after grabbing the best director award.
"I grew up here and I received my education here. This city has given me a lot of inspirations," she said during the glittering ceremony held at the harbourfront Hong Kong Cultural Centre.
The best actor and best actress honour went to the film's lead characters played by Andy Lau and Deanie Ip.
Ip, 64, played a servant who wants to move into a nursing home after suffering a stroke in "A Simple Life", a role that also won her the best actress award at the Venice film festival and Asian Film Awards.
"I only won this award in my 60s -- this could be the first and last time," she said in an emotional speech, referring to the Hong Kong Film Awards.
Lau, one of Asia's most successful stars who is branded by the media as one of the Four Heavenly Kings of Cantopop, was crowned best actor for the third time.
"This is an acknowledgement of my contribution to Hong Kong's film industry," Lau said to loud applause from hordes of cheering fans.
Tsui Hark's 3D extravaganza "Flying Swords of Dragon Gate", which starring Kung fu superstar Jet Li, led the race with 13 nominations and won five prizes.
It snapped up honours for best film editing, action choreography, art direction, sound design and visual effects.
The annual Hong Kong Film Awards -- celebrating its 31st edition this year -- is one of the two Chinese film's industry most prestigious events, alongside Taiwan's Golden Horse Awards.
The southern Chinese city which became an international movie powerhouse in the 1970s remains a rich source of film talent, with its stars enjoying huge popularity across Asia.
There have been increasing collaborations between Hong Kong, Taiwan and mainland filmmakers in recent years to tap the lucrative market of movie-goers in China.
In recognition of the regional film industry, the award this year added the new "Best Film of Mainland and Taiwan" category-- won by the hit Taiwanese teen romance "You are the Apple of My Eye".
The low-budget film, which marked the directorial debut of popular novelist Giddens -- the pen name of Ko Ching-teng -- has generated a buzz around southeast Asia besides topping the box office in Taiwan and Hong Kong.
Taiwanese singer Jam Hsiao, who rose to stardom through a TV reality show, won the award for best new performer for his role in "The Killer Who Never Kills", which is also based on a popular novel by Giddens.
31st Hong Kong Film Awards 2012 (Winner List)
Best Film : A Simple Life
Best Director : Ann Hui (A Simple Life)
Best Screenplay : Susan Chan (A Simple Life)
Best Actor : Andy Lau (A Simple Life)
Best Actress : Deanie Ip (A Simple Life )
Best Supporting Actor : Lo Hoi Pang (Life Without Principle)
Best Supporting Actress : So Hang Shuen (Life Without Principle)
Best New Performer : Hsiao Ching Teng (The Killer Who Never Kills)
Best Cinematography : Jake Pollock, Lai Yiu Fai (Wu Xia)
Best Film Editing : Yau Chi Wai (Flying Swords Dragon Gate)
Best Art Direction : Yee Chung Man, Lau Man Hung (Flying Swords of Dragon Gate)
Best Costume/Makeup Design : Willian Chang (Let the Bullets Fly)
Best Action Choreography : Yuen Bun, Lan Hai Han, Sun Jian Kui (Flying Swords of Dragon Gate)
Best Original Film Score : Chan Kwong Wing, Peter Kam, Chatchai Pongprapaphan (Wu Xia)
Best Original Film Song : Sandy Lam "Leung Sum Fa" (Hi, Fidelity)
Best Sound Design : Kim Suk Won (Flying Swords of Dragon Gate)
Best Visual Effects : Wook Kim, Josh Cole, Frankie Chung (Flying Swords of Dragon Gate)
Best New Director : Tsang Tsui Shan (The Big Blue Lake)
Best Film of Mainland & Taiwan : You Are the Apple of My Eye (Taiwan)
Lifetime Achievement Award : Ni Kuang (Screenwriter, Novelist)
Professional Achievement Award : Fong Ho Yuen (Cinematographer)
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