EMPEROR INT'L(HK:00163)2023-06-26 04:01Financial Performance - The total revenue for the year ended March 31, 2023, was HKD 1,210,682,000, a decrease of 48.0% from HKD 2,329,324,000 in 2022[10]. - The company recorded a gross profit of HKD 590,000,000, down from HKD 813,300,000 in the previous year[2]. - The loss attributable to the company’s owners for the year was HKD 2,142,000,000, compared to a loss of HKD 469,300,000 in 2022[2]. - The group reported a loss before tax of HKD 2,299,228,000 for the year, compared to a loss of HKD 831,145,000 in 2022[50]. - The total loss for the year was HKD 2,201,586,000, reflecting the challenging market conditions faced by the company[74]. - The company reported a basic loss attributable to shareholders of HKD (2,141,983,000) in 2023, compared to a loss of HKD (469,329,000) in 2022, indicating a significant increase in losses[89]. Revenue Breakdown - Rental income remained relatively stable at HKD 870,769,000, accounting for 71.9% of total revenue, compared to 904,402,000 in 2022[12]. - The property development sales revenue dropped to HKD 79,240,000, representing only 6.6% of total revenue, down from HKD 1,025,152,000 in 2022[12]. - Revenue from hotel and related businesses was HKD 260,673,000, a significant drop from HKD 399,770,000 in 2022, reflecting a decline of approximately 35%[66][74]. - Service revenue from gaming operations decreased to HKD 87,740,000 from HKD 260,581,000, marking a decline of around 66%[68][74]. - Revenue from the Hong Kong market decreased to HKD 701,720,000 in 2023 from HKD 1,638,801,000 in 2022, a decline of approximately 57.2%[77]. Asset and Liability Management - As of March 31, 2023, the group's cash, bank balances, and deposits amounted to HKD 2,367,900,000, an increase from HKD 1,567,200,000 in 2022[36]. - The total external borrowings (excluding payables) were approximately HKD 22,444,000,000, a slight decrease from HKD 22,711,000,000 in 2022, with a net debt ratio of 39.3%, up from 38.7% in 2022[36]. - The company's cash and cash equivalents increased from HKD 1,252,888 thousand in 2022 to HKD 2,311,133 thousand in 2023, representing a growth of about 84.4%[53]. - The total liabilities related to trade and other payables decreased to HKD 801,982,000 in 2023 from HKD 889,347,000 in 2022, a reduction of 9.8%[103]. - The company has a significant portion of current liabilities, with HKD 7,803,510 thousand attributed to bank borrowings due within one year[55]. Investment and Development - The company plans to enhance property value through redevelopment projects, including a new Grade A office building in Wanchai with a total floor area of approximately 126,600 square feet[18]. - The group has completed the reconstruction of a retail and office complex on Oxford Street, London, with a total floor area of approximately 112,500 square feet, enhancing its presence in a prime retail location[24]. - The group plans to pre-sell a new residential and retail building in Aberdeen with a total floor area of approximately 50,300 square feet in the second half of 2023, with completion expected in 2024[29]. - The company sold a non-core investment property in Tuen Mun for approximately HKD 1,141,200,000, realizing an asset appreciation of about HKD 882,600,000[5]. - The group has increased its stake in the luxury residential project at 15 Shouson Hill from 40% to 50%, allowing for greater future income generation[28]. Market Conditions and Future Outlook - The reopening of borders in Hong Kong, Macau, and mainland China is expected to boost tourist and business traveler numbers, positively impacting consumption and investment sentiment[34]. - The office leasing market is experiencing increased inquiries, although it will continue to face intense competition due to a large supply of available space[34]. - The retail leasing sector, particularly in tourist areas, is anticipated to benefit from the recovery of the retail market[34]. - The company plans to focus on market expansion and new product development to improve future performance[72]. - The company anticipates generating positive operating cash flow from property sales and rental income over the next twelve months[57]. Corporate Governance and Compliance - The independent auditor's report confirmed that the consolidated financial statements fairly present the group's financial position as of March 31, 2023, in accordance with applicable accounting standards[111]. - The audit committee, consisting of three independent non-executive directors, reviewed the audited financial statements and confirmed their compliance with applicable accounting standards[115]. - The company has adhered to all provisions of the corporate governance code as set out in the Listing Rules Appendix 14 during the year[116]. - The board of directors confirmed compliance with the securities trading code throughout the year[117]. - The company has adopted its own code of conduct for securities trading, which meets or exceeds the standards set out in the Listing Rules Appendix 10[117].