东方企控集团(00018) - 2023 - 年度业绩

Financial Highlights This section provides a concise overview of the Group's financial performance and position for the reporting period Consolidated Statement of Profit or Loss and Other Comprehensive Income For the year ended March 31, 2023, the Group's total revenue decreased by 7.9% to HKD 677.16 million, yet profit for the year slightly increased by 1.8% to HKD 171 million, with EPS flat at HKD 6.95 cents Consolidated Statement of Profit or Loss Key Data (HKD thousands) | Indicator | 2023 | 2022 | Year-on-Year Change | | :--- | :--- | :--- | :--- | | Revenue | 677,165 | 735,782 | -7.9% | | Profit Before Tax | 212,778 | 199,387 | +6.7% | | Profit for the Year | 170,923 | 167,874 | +1.8% | | Profit Attributable to Owners of the Company | 166,564 | 166,744 | -0.1% | | Total Comprehensive Income for the Year | 129,572 | 165,392 | -21.7% | | Earnings Per Share (Basic & Diluted) | HKD 6.95 cents | HKD 6.95 cents | 0.0% | - Despite a decline in publishing and advertising revenue, a net gain of approximately HKD 11.3 million from the sale of Australian property, coupled with Hong Kong government subsidies and stringent cost control, led to a slight increase in overall profit compared to the previous year[8][102] Consolidated Statement of Financial Position As of March 31, 2023, the Group's total assets decreased by 8.1% to HKD 1.89 billion, primarily due to investment property disposals, while net assets declined to HKD 1.73 billion, maintaining a robust financial position with HKD 1.03 billion in net current assets and HKD 665 million in cash Consolidated Statement of Financial Position Key Data (HKD thousands) | Indicator | March 31, 2023 | March 31, 2022 | Change | | :--- | :--- | :--- | :--- | | Non-current Assets | 772,362 | 774,260 | -0.2% | | Total Current Assets | 1,119,815 | 1,283,628 | -12.8% | | Total Assets | 1,892,177 | 2,057,888 | -8.1% | | Total Current Liabilities | 86,163 | 121,689 | -29.2% | | Non-current Liabilities | 76,159 | 72,144 | +5.6% | | Net Assets | 1,729,855 | 1,864,055 | -7.2% | | Cash and Cash Equivalents | 665,196 | 633,593 | +5.0% | Business Review and Outlook This section provides an overview of the Group's operational performance across its segments and its strategic future plans Business Review During the reporting period, the Group faced macroeconomic challenges, with media business revenue declining by 8%, yet overall profit slightly increased due to property sales, government subsidies, and strict cost control, while financing business remained stable and property investment showed mixed performance Media Business Affected by a weak Hong Kong economy, media business revenue declined by approximately 8%, with publishing and advertising revenue down 6% and digital media revenue down 14%, despite a 27% rise in raw material costs, mitigated by a 2% reduction in staff costs and a 22% decrease in other operating expenses - Oriental Daily News publishing and advertising revenue decreased by 6% year-on-year to HKD 510 million; digital media business revenue decreased by 14% year-on-year to HKD 115 million[107] - Printing media raw material costs increased by 27% year-on-year, but staff costs decreased by approximately 2%[107] - The Group's on.cc mobile application accumulated over 10 million downloads, and the financial platform on.cc Money18 has nearly 1 million registered users, demonstrating strong digital media influence[90][91] Financing Business The financing business demonstrated stable performance, with outstanding loans at approximately HKD 300 million and total interest income increasing by 1% to HKD 30.98 million, maintaining a prudent strategy focused on first mortgage short-term property loans with no bad debt recorded Financing Business Key Indicators | Indicator | 2023 | 2022 | Change | | :--- | :--- | :--- | :--- | | Loans Receivable (HKD) | ~299.8 million | ~302.7 million | -1% | | Total Loan Interest Income (HKD) | 30,975,000 | 30,612,000 | +1% | - The Group's financing business operates prudently, carefully selecting quality clients, primarily focusing on first mortgage property loans, and continuously monitoring collateral market values to control risk[109] Property Investment The property investment portfolio showed mixed performance, with Australian hotel property valuations rising by 28% due to tourism recovery and a successful sale of an investment property for AUD 38 million, while Hong Kong commercial property valuations declined by 5% due to market weakness despite full occupancy - Successfully sold a portion of Australian investment property for AUD 38 million, distributing a special interim dividend to shareholders in the current year[87][93] - Australian hotel property valuation increased by AUD 8.4 million (+28%) due to tourism recovery[93] - Hong Kong North Point commercial property valuation decreased by approximately HKD 6.5 million (-5%) due to market weakness[93] Business Outlook The Group anticipates a recovery in advertising revenue with Hong Kong's economic rebound and border reopening, continuing to develop digital media and diversified paid content, while steadily expanding financing operations and actively seeking buyers for Australian hotel properties to lock in profits - Hong Kong's economic recovery and border reopening with mainland China are expected to stimulate increased advertising by clients, driving a rebound in the Group's advertising revenue[112] - Resources will continue to be invested in developing new media businesses, improving advertising formats for e-commerce marketing, and developing diversified paid content platforms[112][114] - The financing business outlook is optimistic, with expected steady expansion and capital allocation for higher returns[113] - The Group will continue to actively seek buyers for its Australian hotel properties to lock in profits and prudently select high-return local investment projects[96] Dividend Policy The Board resolved not to declare a final dividend for the year ended March 31, 2023, resulting in a total annual dividend of HKD 5 cents per share, including interim and special interim dividends, lower than the previous year's HKD 9 cents per share Annual Dividend Comparison | Dividend Type | FY2023 (Per Share) | FY2022 (Per Share) | | :--- | :--- | :--- | | Interim Dividend | 3 HK cents | 3 HK cents | | Special Interim Dividend | 2 HK cents | N/A | | Final Dividend | N/A | 3 HK cents | | Special Final Dividend | N/A | 3 HK cents | | Total Annual Dividend | 5 HK cents | 9 HK cents | - The Board resolved not to declare a final dividend for the year ended March 31, 2023[60][103] Notes to the Financial Statements This section provides detailed explanations and disclosures for various items presented in the financial statements Basis of Preparation and Changes in Accounting Policies These financial statements are prepared in accordance with HKFRS, with the Group adopting several new and revised HKFRS standards during the year, which had no significant impact on the financial statements, and no material impact is expected from future adoptions - The financial statements are prepared in accordance with Hong Kong Financial Reporting Standards issued by the Hong Kong Institute of Certified Public Accountants, generally accepted accounting principles in Hong Kong, and the Companies Ordinance[24] - The Group has initially applied several revised standards effective on or after January 1, 2022, including amendments related to onerous contracts costs and references to the Conceptual Framework[13][25] - The adoption of these new or revised standards has not had any significant impact on the consolidated financial statements[17] Revenue and Segment Information The Group's total revenue is primarily derived from three operating segments: newspaper publishing, loan business, and other operations, with newspaper publishing being the largest contributor at HKD 625 million, and the majority of revenue and non-current assets located in Hong Kong External Customer Revenue by Segment (HKD thousands) | Operating Segment | 2023 | 2022 | Year-on-Year Change | | :--- | :--- | :--- | :--- | | Newspaper Publishing | 625,062 | 676,039 | -7.5% | | Loan Business | 30,975 | 30,612 | +1.2% | | All Other Operating Segments | 21,128 | 29,131 | -27.5% | | Total | 677,165 | 735,782 | -7.9% | External Customer Revenue by Geographical Region (HKD thousands) | Region | 2023 | 2022 | | :--- | :--- | :--- | | Hong Kong | 664,796 | 715,779 | | Australia | 12,369 | 20,003 | | Total | 677,165 | 735,782 | - During the reporting period, the Group received approximately HKD 22.28 million in government grants, primarily from the Hong Kong Government's "Employment Support Scheme"[39][40] Key Financial Items Notes This section details key financial items including income tax, earnings per share, trade receivables and payables, borrowings, and asset disposals, noting increased tax expense, stable EPS, significantly reduced payables, a low-interest related-party loan, and the sale of an Australian investment property Income Tax Expense Income tax expense for the year increased by 32.8% to HKD 41.86 million, comprising HKD 20.38 million in Hong Kong profits tax and HKD 14.67 million in Australian corporate income tax Income Tax Expense Breakdown (HKD thousands) | Item | 2023 | 2022 | | :--- | :--- | :--- | | Hong Kong Profits Tax | 20,376 | 25,908 | | Australian Corporate Income Tax | 14,671 | – | | Deferred Tax | 6,808 | 5,605 | | Total | 41,855 | 31,513 | Earnings Per Share Basic earnings per share for the year ended March 31, 2023, remained flat at HKD 6.95 cents, with diluted earnings per share being identical due to the absence of any dilutive potential shares during the year - Basic earnings per share are calculated based on profit attributable to owners of the Company of approximately HKD 166.6 million and 2,397,917,898 ordinary shares in issue[61] - Diluted earnings per share are the same as basic earnings per share as there were no potentially dilutive shares[81] Trade Receivables and Payables As of the reporting period end, trade receivables net of impairment allowance were HKD 58.77 million, with an increased proportion of amounts over 90 days, while trade payables significantly decreased by 45.7% to HKD 11.38 million, primarily due within 60 days Trade Receivables Aging Analysis (HKD thousands) | Aging | 2023 | 2022 | | :--- | :--- | :--- | | 0–60 Days | 25,933 | 27,567 | | 61–90 Days | 7,852 | 12,018 | | Over 90 Days | 24,989 | 17,322 | | Total | 58,774 | 56,907 | Trade Payables Aging Analysis (HKD thousands) | Aging | 2023 | 2022 | | :--- | :--- | :--- | | 0–60 Days | 10,980 | 19,255 | | 61–90 Days | 158 | 1,084 | | Over 90 Days | 238 | 635 | | Total | 11,376 | 20,974 | Borrowings As of March 31, 2023, the Group's borrowings totaled HKD 7.57 million, representing an unsecured AUD loan from a non-controlling shareholder of a subsidiary, bearing an annual interest rate of 4% and repayable on demand - Borrowings consist of an other loan of HKD 7.57 million, unsecured, provided by a non-controlling shareholder of a subsidiary, bearing an annual interest rate of 4%, and repayable on demand[66][68] Sale of Investment Property The Group completed the sale of a portion of its Australian investment property on June 23, 2022, for a total consideration of AUD 38 million, generating a net gain of approximately HKD 11.3 million for the current year - The sale of an Australian investment property was completed on June 23, 2022, for a consideration of AUD 38 million (approximately HKD 207 million)[87][100] - This disposal generated a net gain of approximately AUD 2.087 million (approximately HKD 11.3 million)[70] Other Important Information This section covers additional crucial details regarding the Group's financial resources, liquidity, and corporate governance practices Financial Resources and Liquidity The Group maintains ample liquidity, with net current assets of HKD 1.03 billion and cash and cash equivalents of HKD 665 million as of March 31, 2023, and a very low gearing ratio of 0.4%, indicating a robust financial structure Liquidity and Capital Structure (HKD thousands) | Indicator | March 31, 2023 | March 31, 2022 | | :--- | :--- | :--- | | Net Current Assets | 1,033,652 | 1,161,939 | | Cash and Cash Equivalents | 665,196 | 633,593 | | Gearing Ratio | 0.4% | 0.4% | - Capital expenditure for the current year was approximately HKD 4.71 million, a significant decrease from HKD 9.66 million in the previous year[116] Corporate Governance and Compliance During the reporting period, the company complied with all applicable Corporate Governance Code provisions, with the Audit Committee reviewing the annual results, and no purchases, sales, or redemptions of the company's listed securities by the company or its subsidiaries occurred - The company has complied with all applicable code provisions set out in Appendix 14 of the Listing Rules, "Corporate Governance Code"[98] - The Audit Committee, in conjunction with management, reviewed the Group's adopted accounting standards and practices and the full-year results for the reporting period[99] - During the reporting period, neither the company nor any of its subsidiaries purchased, sold, or redeemed any of the company's listed securities[122]