Financial Performance - For the fiscal year ending March 31, 2024, the total revenue increased to HKD 88,291,000 from HKD 80,068,000, representing a growth of approximately 15.4%[3] - The net profit for the year was HKD 34,991,000, a significant recovery from a loss of HKD 43,888,000 in the previous year[5] - The profit from continuing operations increased to HKD 25,688,000, compared to HKD 16,855,000 in the prior year, marking a growth of about 52.5%[4] - The company reported a significant loss from discontinued operations of HKD 531,000, compared to a loss of HKD 60,743,000 in the previous year, indicating improved performance in this segment[4] - The company reported a pre-tax profit from continuing operations of HKD 28,631,000, an increase from HKD 26,077,000 in 2023, representing a growth of 9.8%[28] - The company recorded a profit attributable to owners of HKD 22,413,000, a turnaround from a loss of HKD 36,866,000 in the previous year, mainly due to reduced losses from discontinued operations and increased fair value gains from investment properties[67] Revenue Breakdown - Total revenue for the year 2024 reached HKD 88,733,000, an increase of 9.4% compared to HKD 80,913,000 in 2023[22] - Interest income from mortgage and unsecured personal loans was HKD 72,744,000, slightly up from HKD 72,491,000 in the previous year[26] - Rental income from investment properties totaled HKD 15,288,000, down from HKD 15,530,000 in 2023, reflecting a decrease of 1.6%[26] - Total revenue increased by 10.3% to HKD 88,291,000, driven by interest income from lending business of HKD 72,744,000 and rental income from property investment of HKD 15,288,000[61] Asset and Liability Management - Total assets as of March 31, 2024, amounted to HKD 1,279,760,000, compared to HKD 1,177,215,000 in the previous year, reflecting an increase of approximately 8.7%[6] - The total assets of the company amounted to HKD 2,036,187,000, down from HKD 2,081,374,000 in the previous year[23] - The total liabilities decreased to HKD 134,262,000 in 2024 from HKD 201,900,000 in 2023, a reduction of 33.5%[23] - The company maintained a rigorous control over overdue receivables, with total receivables from leasing increasing to HKD 1,242,000 in 2024 from HKD 357,000 in 2023[43] - The total receivables from loans and interest decreased to HKD 741,494,000 in 2024 from HKD 827,996,000 in 2023, with a provision for impairment losses increasing to HKD 16,978,000[46] Impairment and Credit Risk - The company reported a net impairment loss on loans and interest of HKD 12,405,000, up from HKD 2,794,000 the previous year, indicating increased credit risk[3] - The company recognized impairment losses of HKD 12,623,000 for mortgage loans and HKD 25,559,000 for collateral assets due to adverse market conditions[56] - The total amount of receivables classified as defaulted (Stage 3) reached HKD 95,787,000, with an impairment provision of HKD 13,824,000[49] - The lending division recorded a significant profit decrease of 62.1% to HKD 20,766,000 (2023: HKD 54,730,000) due to impairment losses on collateral assets totaling HKD 25,559,000 (2023: HKD 1,941,000)[73] Investment Properties - The fair value gain on investment properties was HKD 10,149,000, a recovery from a loss of HKD 12,292,000 in the previous year[3] - The group achieved a net fair value gain of HKD 10,149,000 from investment properties (2023: fair value loss of HKD 12,292,000)[76] - The company achieved a fair value gain of HKD 23,280,000 from properties in Singapore, highlighting the advantages of its diversified property portfolio[56] Business Operations and Strategy - The company plans to continue its market expansion and product development strategies, although specific figures were not disclosed in the earnings report[9] - The group has three reportable operating segments: lending, property investment, and securities trading[19] - The lending segment provides mortgage and unsecured personal loans, while the property investment segment focuses on high-quality office units and commercial properties with rental income potential[19] - The group assesses segment performance based on adjusted profit or loss before tax, excluding bank interest income and certain corporate expenses[17] Employee and Administrative Expenses - Administrative and operating expenses rose to HKD 46,731,000 from HKD 44,104,000, mainly due to an increase in employee benefits expenses by HKD 1,959,000 and overseas travel expenses by HKD 417,000[63] - The group recorded employee benefit expenses of HKD 22,663,000 for the year, an increase of 9.5% from HKD 20,704,000 in the previous year[93] - The group has 32 employees as of March 31, 2024, compared to 31 employees in the previous year[93] Discontinued Operations - The company terminated its cruise leasing service business in March 2023 and sold its indirect non-wholly owned subsidiary KML, completing the sale on April 28, 2023[32] - For the year ended March 31, 2024, the terminated business reported revenue of HKD 705,000, a decrease of 74.3% from HKD 2,746,000 in the previous year[33] - The loss from the terminated business for the year was HKD 531,000, compared to a loss of HKD 60,743,000 in the previous year, indicating a significant improvement[33] - The company recognized a gain of HKD 9,834,000 from the sale of the subsidiary, contributing positively to the overall financial results[33] Risk Management - The group focuses on lending to high-quality clients and conducts due diligence to mitigate credit risk[89] - The group actively monitors property market trends and collateral valuations to manage risks associated with mortgage loans[89] - The group plans to maintain rigorous risk management practices and cautiously expand its lending business in response to expected economic recovery[59] Compliance and Governance - The financial statements are prepared in accordance with the Hong Kong Financial Reporting Standards and are reported in Hong Kong dollars (HKD), with amounts rounded to the nearest thousand[10] - The group complies with all corporate governance codes as per the Hong Kong Stock Exchange listing rules[99] - The group does not fall under the scope of the OECD's Pillar Two model rules, thus the recent amendments regarding international tax reform have no impact on the group[16]
新世纪集团(00234) - 2024 - 年度业绩