EMPEROR INT'L(HK:00163)2023-06-23 14:31Financial Performance - The group experienced a significant annual loss of HKD 2,201,586,000 compared to a loss of HKD 739,642,000 in the previous year[11]. - Total revenue for the year ended March 31, 2023, was HKD 1,210,682,000, a decrease of 48% from HKD 2,329,324,000 in 2022[23]. - The group reported a gross profit of HKD 590,026,000 for 2023, down from HKD 813,293,000 in 2022, reflecting a significant decline in profitability[23]. - The annual loss attributable to the company’s owners was HKD 2,141,983,000 in 2023, compared to a loss of HKD 469,329,000 in 2022, indicating a substantial increase in losses[23]. - The group reported a total loss before tax of HKD 2,299,228,000 for the year ended March 31, 2023[82]. - The annual loss for the year ended March 31, 2023, was HKD 2,201,586,000[82]. - The company reported a loss attributable to shareholders of HKD 2,141,983,000 for the fiscal year 2023, compared to a loss of HKD 469,329,000 in 2022, indicating a significant increase in losses[92]. - Revenue from customers for the year ended March 31, 2023, was HKD 1,210,682,000, down from HKD 2,329,324,000 in 2022, reflecting a decline of approximately 48%[109]. Assets and Liabilities - As of March 31, 2023, the group reported a total asset value of HKD 37,056,800,000, a decrease from HKD 40,516,300,000 in 2022[5]. - Current liabilities exceeded current assets by HKD 2,778,920,000, with total current liabilities amounting to HKD 11,156,911,000, including HKD 7,803,510,000 in bank borrowings due within one year[12]. - The group's net asset value as of March 31, 2023, was HKD 23,887,200,000, down from HKD 26,765,800,000 in 2022, with a net asset value per share of HKD 6.50 compared to HKD 7.28 in 2022[16]. - The company’s non-current assets as of March 31, 2023, totaled HKD 42,580,436,000, a decrease from HKD 46,192,706,000 in 2022, indicating a reduction in asset value[109]. - The group’s total liabilities decreased from HKD 889,347,000 in 2022 to HKD 801,982,000 in 2023, indicating a reduction of approximately 9.8%[139]. Revenue Sources - Rental income remained relatively stable at HKD 870,769,000, accounting for 71.9% of total revenue, compared to 38.8% in the previous year[37]. - Revenue from property sales dropped to HKD 79,240,000, representing 6.6% of total revenue, down from 44.0% in 2022[37]. - Hotel and related services revenue decreased to HKD 260,673,000, making up 21.5% of total revenue, compared to 17.2% in the previous year[36]. - The group’s revenue from external customers for the year ended March 31, 2023, was HKD 870,769,000 from property leasing, HKD 79,240,000 from property development, and HKD 260,673,000 from hotel-related businesses[82]. Strategic Initiatives - The group aims to generate positive operating cash flow from property sales and rental income from investment properties over the next twelve months[14]. - The group plans to seek investment properties in the market to improve liquidity through new financing or sales if necessary[3]. - The group has appointed a new vice chairman to enhance long-term strategic development and explore emerging business opportunities[6]. - The group will continue to adjust its strategies based on market changes to maintain a balanced property portfolio and mitigate business risks[9]. - The group plans to complete a redevelopment project at 24-30 Baanham Road in 2024, which will be a 27-story residential building with a total floor area of approximately 105,400 square feet[28]. Market Conditions - The reopening of borders in Hong Kong, Macau, and mainland China is expected to boost tourism and business travel, positively impacting consumption and investment[32]. - The office leasing market continues to face intense competition due to increased supply, while retail leasing is expected to benefit from a recovery in consumer sentiment[32]. Employee and Operational Costs - The group’s employee costs totaled HKD 434,400,000 in 2023, a decrease from HKD 513,500,000 in 2022, with the number of employees reduced to 850 from 1,208[19]. - The group has adopted a share option scheme to incentivize employees, details of which will be included in the annual report[19]. Investment and Development Projects - The group has launched a luxury residential project in Central, expected to be completed in 2024, enhancing its property development portfolio[62]. - The group has increased its stake in the Shoushan Mountain project from 40% to 50% after acquiring an additional 10% equity, which is expected to generate more revenue in the future[77]. - A new residential and retail building with a total floor area of approximately 50,300 square feet is set to be completed in 2024, with pre-sales expected in the second half of 2023[77]. - The redevelopment of the former Emperor Jockey Club Hotel into a 27-story residential building with a total floor area of approximately 58,100 square feet is underway, with completion planned for 2024 or later[78]. Financial Risks and Management - The group is closely monitoring its overall foreign exchange risk due to exposure in RMB and GBP, and will take appropriate measures to mitigate currency risks as needed[4]. - The group acknowledges significant uncertainty regarding its ability to secure sufficient funding through refinancing or property sales based on market conditions[15]. - The group has a strong track record with banks, which enhances its ability to restructure borrowing financing[13]. Audit and Compliance - The independent auditor provided an unqualified audit opinion on the consolidated financial statements for the year ended March 31, 2023[143].