Financial Performance - For the year ended March 31, 2023, the Group's revenue was approximately HK$157.0 million, an increase of 10.4% from HK$141.7 million in 2022[10]. - The Group recorded a net loss of approximately HK$3.6 million for the year, compared to a net loss of approximately HK$1.5 million in the previous year, primarily due to increased fair value losses and impairment losses[11]. - Gross profit for the year ended 31 March 2023 was approximately HK$43.4 million, an increase of approximately HK$3.8 million or 9.6% from approximately HK$39.6 million for the year ended 31 March 2022[36][29]. - The gross profit margin for the year was approximately 27.6%, slightly down from approximately 27.9% for the year ended 31 March 2022[36]. - Other gains for the year were approximately HK$0.5 million, down from approximately HK$2.4 million for the year ended 31 March 2022, primarily due to increased fair value losses on financial assets[37]. Revenue Breakdown - Revenue from Hong Kong contributed approximately HK$149.5 million, accounting for about 95.2% of total revenue, up from 90.9% in 2022[19]. - Revenue from the Scandinavian market increased to approximately HK$5.2 million, representing about 3.3% of total revenue, compared to 1.7% in 2022[20]. - Revenue from the manufacturing and trading of DTH rockdrilling tools accounted for approximately 93.3% of total revenue for the year, up from approximately 82.1% in the previous year[24][27]. - The Group did not generate any revenue from the trading of piling and drilling machineries during the year, which accounted for approximately 7.1% of total revenue in the previous year[25][28]. Expenses and Losses - Selling and distribution expenses rose by approximately HK$2.1 million or 27.9% to approximately HK$9.5 million, primarily due to increased freight, transportation, and storage costs[45]. - Administrative expenses increased by approximately HK$4.0 million or 11.1% to approximately HK$39.8 million, mainly due to higher staff costs[46]. - Fair value loss in financial assets at fair value through profit or loss increased to approximately HK$1.7 million, compared to a gain of approximately HK$1.6 million in 2022[18]. - Impairment loss of trade receivables rose to approximately HK$4.3 million, up from approximately HK$0.8 million in the previous year[18]. - Impairment losses under the expected credit loss model increased to approximately HK$4.3 million for the year, compared to approximately HK$0.8 million in the previous year[26][29]. Cash and Borrowings - As of March 31, 2023, the group's total cash and cash equivalents amounted to approximately HK$66.0 million, an increase from approximately HK$64.6 million the previous year[55]. - The group's gearing ratio increased to approximately 22.4% as of March 31, 2023, up from 17.7% the previous year, mainly due to increased bank borrowings[57]. - The group had bank borrowings of approximately HK$13.2 million as of March 31, 2023, compared to nil the previous year[56]. - The net proceeds from the public offer were approximately HK$88.3 million, fully utilized by March 31, 2023[76][83]. - The Group invested HK$50.4 million in a new manufacturing facility, with no unused amounts remaining[86]. Workforce and Operations - The Group increased its workforce to approximately 87 employees as of March 31, 2023, up from approximately 80 employees a year earlier[87]. - The Group maintains a reasonable liquidity buffer to meet liquidity requirements at all times[74]. - The Group's operations are primarily in Hong Kong and the PRC, with most transactions denominated in Hong Kong dollars and Renminbi, resulting in insignificant foreign exchange risk[75][79]. Corporate Governance - The corporate governance structure complies with the Listing Rules, although the roles of chairman and chief executive are not separated as per Code Provision C.2.1[90][91]. - The Board consists of two Executive Directors and three Independent Non-executive Directors, ensuring at least one-third independence[98]. - The Company complies with Listing Rules by having at least three Independent Non-executive Directors, with one possessing professional qualifications in finance management[100]. - All Independent Non-executive Directors confirmed their independence, ensuring no material relationships among Board members[101]. - The Board has delegated responsibilities to various committees, including the Audit and Compliance Committee, to enhance oversight and governance[107]. Risk Management - The Group's risk management and internal control systems are considered effective and adequate, with no significant compliance or financial risks identified[171][185]. - The Group has established an enterprise risk management framework following the COSO Integrated Framework to manage various risks effectively[178][179]. - The Board has conducted an annual review of the effectiveness of the risk management and internal control systems through discussions with the Audit and Compliance Committee[172]. - The Group's risk management framework includes identifying, assessing, prioritizing, and treating risks, including ESG-related risks[182]. - The effectiveness of the Group's risk management framework is evaluated at least annually, ensuring alignment with corporate goals[195].
煜荣集团(01536) - 2023 - 年度财报