Financial Performance - Total revenue for the year ended March 31, 2024, was approximately HKD 177.3 million, a decrease of about HKD 164.5 million or 48.1% compared to HKD 341.8 million for the year ended March 31, 2023[4] - The toy segment's revenue decreased by approximately HKD 164.2 million or 49.7% to about HKD 166.4 million, while the financial services segment's revenue was approximately HKD 10.8 million, a decrease of about HKD 0.4 million or 3.3%[4] - Gross profit for the year was approximately HKD 28.0 million, down about HKD 16.9 million or 37.7% from HKD 44.9 million in the previous year[4] - The net loss for the year was approximately HKD 74.0 million, an increase of about HKD 1.7 million or 2.4% from a net loss of HKD 72.3 million in the previous year[5] - The company proposed not to declare a final dividend for the year ended March 31, 2024[5] - The basic and diluted loss per share was HKD 5.02 for the year ended March 31, 2024, compared to HKD 4.91 in the previous year[7] - The company reported a total loss before tax of HKD 73,968,000 for the fiscal year ending March 31, 2024[24] - The company reported a loss attributable to shareholders of approximately HKD 73,941,000 for the year ended March 31, 2024, compared to a loss of HKD 72,321,000 in 2023, reflecting an increase in loss of about 2.24%[58] Assets and Liabilities - Total assets decreased significantly from HKD 141.4 million in 2023 to HKD 93.9 million in 2024, reflecting a substantial reduction in non-current assets[9] - The company's total liabilities decreased from HKD 102.5 million in 2023 to HKD 82.7 million in 2024, indicating improved liquidity[9] - Cash and cash equivalents decreased from HKD 61.9 million in 2023 to HKD 57.5 million in 2024[8] - The total liabilities for the toy manufacturing segment were HKD 11,583,000, while financial services had liabilities of HKD 69,944,000, totaling HKD 81,527,000[32] - The company's debt-to-equity ratio increased to approximately 66.1% as of March 31, 2024, compared to 30.9% on March 31, 2023, due to a decrease in total equity[152] - The current ratio as of March 31, 2024, was approximately 2.1, up from 1.8 on March 31, 2023[152] Revenue Breakdown - For the fiscal year ending March 31, 2024, external revenue from toy manufacturing and sales was HKD 166,431,000, while financial services generated HKD 10,828,000, totaling HKD 177,259,000[24] - Revenue from toy manufacturing and sales was HKD 166,431,000, down 50% from HKD 330,600,000 in the previous year[47] - North America revenue dropped to HKD 102,726,000 from HKD 187,651,000, representing a decline of 45%[38] - Major customer A contributed HKD 132,442,000 in revenue, down 52% from HKD 273,628,000 in 2023[43] - The financial services division's revenue decreased by approximately HKD 0.4 million or 3.3% to about HKD 10.8 million, mainly due to a decline in corporate finance consulting revenue by approximately HKD 1.1 million or 18.8%[126] Impairment and Goodwill - The goodwill impairment loss increased by approximately HKD 9.3 million, contributing to the overall net loss[5] - The financial services segment incurred a goodwill impairment loss of approximately HKD 45,508,000 for the fiscal year ending March 31, 2024[28] - The goodwill impairment loss recognized for the year was approximately HKD 42,208,000, an increase from HKD 36,161,000 in 2023, due to adverse market conditions affecting cash flow forecasts[64] - The recoverable amount of the cash-generating unit related to a subsidiary was reduced to zero as of March 31, 2024, down from HKD 49,000,000 in 2023[64] Inventory and Receivables - Inventory decreased from HKD 51,727,000 in 2023 to HKD 16,428,000 in 2024, representing a decline of approximately 68.3%[70] - Trade receivables from the financial services segment decreased from HKD 9,949,000 in 2023 to HKD 6,293,000 in 2024, a reduction of about 36.5%[72] - Trade receivables from the manufacturing and sales of toys segment decreased from HKD 28,405,000 in 2023 to HKD 18,661,000 in 2024, a decline of approximately 34.5%[78] Expenses and Costs - Administrative expenses decreased by approximately HKD 13.6 million or 22.0% to about HKD 48.0 million, primarily due to reduced employee costs and lower office rental expenses[140] - Financing costs decreased by approximately 56.8% to about HKD 5.5 million, primarily due to a reduction in interest expenses on convertible bonds[143] - The total employee cost for the year ending March 31, 2024, was approximately HKD 26.6 million, down from HKD 33.6 million in 2023[164] Market Conditions and Future Outlook - The geopolitical tensions between major economies, particularly the US-China trade disputes, have led to increased tariffs and supply chain disruptions, negatively impacting the toy manufacturing sector's profit margins[115] - Economic fluctuations caused by interest rate hikes and inflation have suppressed consumer confidence and disposable income, leading to weakened demand in several toy categories[115] - The company anticipates growth in the economies of mainland China and Hong Kong following the end of COVID-19 quarantine measures, although this is tempered by ongoing geopolitical tensions[114] - The company expects a significant revenue increase of 50% in investment advisory and management services due to strong performance in the U.S. stock market[168] Stock Options and Convertible Bonds - The company granted a total of 10,800,000 stock options on March 17, 2014, with an exercise price of HKD 1 per share[100][101] - The company issued HKD 31 million in promissory notes with a fixed annual interest rate of 10%, due on May 16, 2026[85] - The company issued HKD 9,000,000 of unsecured convertible bonds with a conversion price of HKD 0.081 per share[91] - The actual interest rate for the liability portion of the 2023 convertible bonds is 25.53% per annum[91] Audit and Reporting - The audit committee, along with auditors, reviewed the annual audited consolidated financial statements, confirming they are prepared in accordance with applicable accounting standards and fairly present the group's financial position and performance for the year[175] - The annual report for 2024 will be published around mid-July 2024, in compliance with listing rules, and will be available on the Hong Kong Stock Exchange and the company's website[176]
滉达富控股(01348) - 2024 - 年度业绩