标准发展集团(01867) - 2024 - 年度业绩

Financial Performance The Group's FY2024 financial performance reflects declining revenue, expanded losses, and shifts in its financial position Consolidated Statement of Profit or Loss and Other Comprehensive Income Revenue declined 25.9% to HKD 490 million, gross profit fell 82.7%, and loss expanded to HKD 20.13 million Consolidated Statement of Profit or Loss and Other Comprehensive Income (Thousand HKD) | Indicator | 2024 (Thousand HKD) | 2023 (Thousand HKD) | Year-on-Year Change | | :--- | :--- | :--- | :--- | | Revenue | 489,794 | 661,230 | -25.9% | | Gross Profit | 3,816 | 22,116 | -82.7% | | Loss Before Tax | (20,353) | (7,351) | +176.9% | | Loss for the Year | (20,133) | (8,829) | +128.0% | | Loss Attributable to Owners of the Company | (19,940) | (8,829) | +125.8% | | Basic Loss Per Share (HK cents) | (1.33) | (0.63) | +111.1% | Consolidated Statement of Financial Position Total assets slightly increased to HKD 292 million, but net current assets and net assets decreased, with total liabilities rising Consolidated Statement of Financial Position (Thousand HKD) | Indicator | March 31, 2024 (Thousand HKD) | March 31, 2023 (Thousand HKD) | Change | | :--- | :--- | :--- | :--- | | Non-current Assets | 145,973 | 14,992 | +873.7% | | Current Assets | 145,737 | 258,983 | -43.7% | | Total Assets | 291,710 | 273,975 | +6.5% | | Current Liabilities | 124,278 | 103,930 | +19.6% | | Non-current Liabilities | 13,042 | 727 | +1694.0% | | Total Liabilities | 137,320 | 104,657 | +31.2% | | Net Assets | 154,390 | 169,318 | -8.8% | | Cash and Cash Equivalents | 23,921 | 153,344 | -84.4% | Notes to the Financial Statements Detailed notes on accounting policy changes, revenue breakdown, and key financial items provide context to the financial statements 2. Application of New and Revised Hong Kong Financial Reporting Standards The Group adopted new and revised HKFRS, including changes related to accounting estimates and deferred tax, with no significant financial impact - The Group first applied several new and revised Hong Kong Financial Reporting Standards this year, including HKAS 8, 12, and 1, but these amendments had no significant impact on the Group's financial statements[9][12][14] - In response to the abolition of the MPF offsetting mechanism against long service payments in Hong Kong, the Group changed its accounting policy, recognizing an adjustment of HKD 73,000 in the current period due to its minor financial impact, without retrospective adjustment[19][20][23] 3. Revenue Total revenue decreased to HKD 490 million, primarily due to a decline in petroleum business, partially offset by growth in construction and agriculture Revenue by Business Segment (Thousand HKD) | Business Segment | 2024 (Thousand HKD) | 2023 (Thousand HKD) | Year-on-Year Change | | :--- | :--- | :--- | :--- | | Construction and Engineering Related | 202,411 | 153,871 | +31.5% | | Petroleum Business | 222,971 | 503,207 | -55.7% | | Agricultural Business | 59,015 | 1,101 | +5259.2% | | Total Revenue from Contracts with Customers | 484,397 | 658,179 | -26.4% | Revenue by Geographical Market (Thousand HKD) | Geographical Market | 2024 (Thousand HKD) | 2023 (Thousand HKD) | Year-on-Year Change | | :--- | :--- | :--- | :--- | | Hong Kong | 201,526 | 127,486 | +58.1% | | Mainland China | 282,871 | 530,693 | -46.7% | | Total | 484,397 | 658,179 | -26.4% | Notes on Key Financial Items The Group recorded a net reversal of expected credit loss allowance, increased finance costs, an income tax credit, and no dividend distribution - A net reversal of impairment loss allowance under the expected credit loss model of HKD 5.143 million was recorded, compared to an impairment loss of HKD 6.161 million in the prior year, primarily due to reversal of impairment on trade receivables[32] - Finance costs increased to approximately HKD 1.34 million from approximately HKD 0.7 million in the prior year, mainly due to increased interest on other borrowings[34] - No dividends were paid or proposed for the current year[38] Management Discussion and Analysis Management's review of business operations, financial performance, liquidity, key risks, future outlook, and strategic initiatives Business Review and Outlook Revenue declined due to reduced petroleum trading, offset by agriculture and construction growth, as the Group develops bio-energy and seeks new income streams amid economic challenges - Annual revenue decreased to HKD 489.8 million, primarily due to reduced petroleum trading business in mainland China, partially offset by growth in agricultural and construction businesses[43] - The Group is actively expanding its bio-energy business, investing in a rural biomass comprehensive utilization project in Shandong Province, which aims to convert organic waste into green natural gas, aligning with national rural revitalization and green development strategies[43][44] - Looking ahead, macroeconomic slowdown and rising interest rates will pressure business, prompting the Group to adopt a cautious strategy and actively seek new opportunities to expand revenue sources[46] Financial Review Revenue declined 25.9% to HKD 490 million, gross profit fell 82.7% to HKD 3.8 million, and loss expanded to HKD 20.1 million Financial Review (Million HKD) | Item | FY2024 (Million HKD) | FY2023 (Million HKD) | Year-on-Year Change | | :--- | :--- | :--- | :--- | | Revenue | 489.8 | 661.2 | -25.9% | | Direct Costs | 486.0 | 639.1 | -24.0% | | Gross Profit | 3.8 | 22.1 | -82.7% | | Loss for the Year | 20.1 | 8.8 | +128.4% | - A reversal of expected credit loss of approximately HKD 5.1 million was recorded, compared to a loss of HKD 6.2 million last year, mainly due to the settlement of credit-impaired trade receivables during the year[57] - Finance costs increased due to higher borrowings during the year[60] Liquidity and Financial Resources Cash and bank balances significantly decreased, total borrowings increased, leading to a sharp rise in gearing ratio and a decline in current ratio Liquidity and Financial Resources | Indicator | March 31, 2024 | March 31, 2023 | | :--- | :--- | :--- | | Bank Balances and Cash | Approx. HKD 23.9 million | Approx. HKD 153.3 million | | Total Interest-bearing Borrowings and Lease Liabilities | Approx. HKD 75.3 million | Approx. HKD 16.6 million | | Current Ratio | Approx. 1.2 times | Approx. 2.5 times | | Gearing Ratio | Approx. 48.8% | Approx. 9.8% | - The gearing ratio (total borrowings and lease liabilities divided by total equity) significantly increased, primarily due to the increase in total borrowings during the year[66][67] - As of March 31, 2024, approximately HKD 6 million in bank deposits, approximately HKD 3.4 million in life insurance policies, and approximately HKD 9.2 million in cash collateral were pledged for bank financing or guarantees[69][71] Principal Risks and Uncertainties The Group faces operational, financial, and market risks, including contract dependency, litigation, cost volatility, labor supply, macroeconomic shifts, and agricultural specific challenges - Business risks include the non-recurring nature of contracts, potential legal disputes, cost fluctuations, and reliance on labor supply[48] - Macroeconomic risks include global energy price volatility due to geopolitical pressures, such as the Russia-Ukraine conflict, impacting petroleum business performance[48] - Agricultural business faces natural risks (e.g., extreme weather, pests and diseases) and market risks (e.g., cyclical fluctuations in agricultural product and raw material prices)[48] Significant Investments, Acquisitions, and Litigations The Group increased equity in bio-energy subsidiaries through capital injection and is involved in multiple civil litigations with provisions made for some cases - The Group injected RMB 30 million into Biaofa Ecological (Juye) Co Ltd, increasing its equity interest to 90% to advance its bio-energy business[79] - Yingxin Construction, an indirect wholly-owned subsidiary of the Group, is involved in multiple civil litigations ranging from hundreds of thousands to millions of HKD, with provisions made for some cases expected to be unsuccessful[75][78] Corporate Governance and Other Information Overview of the Group's corporate governance practices, including deviations from the code, and the Audit Committee's review of financial results Corporate Governance Practices The company applied the Corporate Governance Code with deviations, including the Chairman and CEO being the same person, insufficient board meetings, and no director liability insurance - The company deviated from the Corporate Governance Code, with the Chairman and Chief Executive Officer positions held by the same person, Mr. Liu Zhan Cheng, which the Board believes ensures consistency in strategic planning and execution[88] - Other deviations include the Chairman's absence from the Annual General Meeting, fewer than four regular Board meetings during the year, and no liability insurance purchased for directors[88][89] Audit Committee and Results Review The Audit Committee, composed of independent non-executive directors, reviewed the financial statements, confirming compliance with accounting standards and Listing Rules - The Audit Committee, comprising three independent non-executive directors, reviewed the annual results and deemed the financial statements compliant with applicable accounting standards and Listing Rules[93] - The company's auditor has reconciled the financial data in this results announcement with the annual audited consolidated financial statements[94]