Financial Performance - Revenue for the year ended March 31, 2024, was HKD 1,103,944, a decrease of 8.7% compared to HKD 1,209,602 in 2023[2] - The net loss attributable to equity holders for the year was HKD 212,132, significantly improved from a loss of HKD 294,169 in 2023[3] - The company reported a total comprehensive loss of HKD 249,096 for the year, compared to HKD 485,225 in the previous year, indicating a reduction of 48.7%[3] - The basic and diluted loss per share was HKD 48.33, improved from HKD 67.01 in 2023[3] - The company reported a total loss of HKD 212,132 for the year, compared to a loss of HKD 294,169 in the previous year, showing an improvement in financial performance[40] - The overall revenue for the fiscal year ending March 31, 2024, decreased by 8.7% to approximately HKD 1,103,944,000 from HKD 1,209,602,000 in the previous fiscal year[75] - The overall gross profit increased by 11.1% to HKD 140,710,000, with a gross profit margin of approximately 12.7%, compared to 10.5% in the previous fiscal year[77] Assets and Liabilities - Total assets decreased to HKD 1,824,338 from HKD 2,096,213, representing a decline of 12.9%[11] - Non-current assets totaled HKD 721,398, down from HKD 1,001,611, a decrease of 28.0%[9] - Current assets increased slightly to HKD 1,102,940 from HKD 1,094,602, a growth of 0.8%[9] - The company’s total liabilities decreased to HKD 968,749 from HKD 991,528, a reduction of 2.3%[11] - The total assets as of March 31, 2024, were HKD 1,824,338, down from HKD 2,096,213 in the previous year, reflecting a decrease of approximately 12.9%[42] - The company’s total liabilities were HKD 968,749, reflecting a slight increase from HKD 991,528 in the previous year, indicating a stable liability management[42] Business Segments - The company has three reportable business segments: electrical and electronic products, electrical machinery, and real estate development, with performance assessed based on operating profit or loss[33] - The electrical and electronic products segment generated revenue of HKD 438,556, while the machinery segment contributed HKD 660,150, indicating a significant reliance on machinery for overall revenue[40] - The revenue breakdown by business segment shows that the electronics segment generated HKD 438,556,000 (39.7% of total revenue), while the electrical segment accounted for HKD 660,150,000 (59.8% of total revenue) in the current fiscal year[76] - The electronics segment's external revenue decreased by 4.6% to approximately HKD 438,556,000, with a profit of HKD 51,451,000 after accounting for specific impairment provisions[83] - The business segment recorded a loss of HKD 163,095,000, compared to a profit of HKD 322,000 in the previous fiscal year, due to impairment losses of HKD 139,408,000[88] - The real estate segment reported a loss of HKD 39,746,000, an improvement from a loss of HKD 257,521,000 in the previous fiscal year[91] Impairment and Provisions - The impairment loss on property, plant, and equipment was HKD 148,921,000 for the year ended March 31, 2024, significantly higher than HKD 50,790,000 in 2023[56] - The group recognized impairment losses of HKD 17,117,000 on development properties for the year ended March 31, 2024, a significant decrease from HKD 191,304,000 in 2023[57] - The company recognized an impairment loss of HKD 139,408,000 on non-financial assets, primarily due to the electrical segment, which included property, plant, and equipment impairments of HKD 131,040,000[79] - The group recorded a net decrease in inventory provisions of HKD 24,360,000 for the year ended March 31, 2024, compared to a provision of HKD 5,801,000 in 2023[56] Cash Flow and Financing - As of March 31, 2024, the group's cash and bank balances amounted to HKD 118,810,000, a decrease of 41.6% from HKD 203,372,000 on March 31, 2023[105] - The group's net current assets were HKD 180,992,000, down 29.8% from HKD 257,905,000 a year earlier[105] - The total bank borrowings due within one year as of March 31, 2024, amounted to HKD 369,146,000, an increase from HKD 269,065,000 in 2023[72] - The total bank borrowings as of March 31, 2024, were HKD 369,146,000, an increase of 5.0% from HKD 351,265,000 on March 31, 2023[106] - The average annual interest rate on bank borrowings decreased to 4.0% for the year ended March 31, 2024, down from 5.3% in 2023[71] - The current ratio was 1.20 as of March 31, 2024, compared to 1.31 a year earlier, indicating a decline in liquidity[106] - The capital debt ratio increased to 43.1% from 31.8% year-on-year, reflecting a higher reliance on debt financing[106] Future Plans and Developments - The company plans to expand its production facilities in Malaysia to meet increasing customer demand for flexible production setups[84] - The electrical segment has expanded its product offerings to include larger motor drivers and brushless DC motors, aligning with the latest technology trends[85] - The company plans to prioritize completing remaining small-scale construction works and obtaining final compliance certificates for the Montessori Garden project[100] - The company aims to expand its production capacity in Malaysia while implementing strict cost control measures to manage operational expenses[103] Corporate Governance and Compliance - The group has adopted several new accounting standards effective from April 1, 2023, including HKFRS 17 for insurance contracts and HKAS 1 for disclosure of accounting policies[18] - The group has not early adopted new and revised standards that are effective after April 1, 2024, indicating a cautious approach to upcoming regulatory changes[20] - The board decided not to declare a final dividend for the year, consistent with the previous fiscal year[104] - The board's audit committee has reviewed the group's consolidated performance for the year, including the consolidated financial statements[129] - The scope of work for PwC accounting firm has been outlined, indicating a thorough examination of financial practices[130] Employment and Operations - The group employed approximately 3,900 full-time employees as of March 31, 2024, with most based in China and Malaysia[113] - The company entered into a lease renewal agreement for its Hong Kong office with a monthly rent of HKD 124,800, effective from April 1, 2023, to March 31, 2026[120] - The group did not engage in any significant acquisitions or disposals of subsidiaries during the year[119] - There were no major events occurring after the reporting period up to the date of the annual report[125]
广和通(00638) - 2024 - 年度业绩