Financial Performance - Revenue for the year ended March 31, 2024, increased by 40% to HKD 176,944,000 compared to HKD 126,362,000 in 2023[3] - Gross profit rose by 56% to HKD 68,995,000 from HKD 44,318,000 year-on-year[3] - Loss before tax decreased by 37% to HKD 21,354,000 from HKD 33,904,000 in the previous year[4] - Loss attributable to owners of the company reduced by 15% to HKD 20,158,000 compared to HKD 23,765,000 in 2023[4] - Basic and diluted loss per share improved to HKD (1.03) from HKD (1.21) year-on-year[4] - The group reported a loss of HKD 20,398,000 for the year ending March 31, 2024, with a net current liability of HKD 2,740,000[37] - The group reported a pre-tax loss of HKD 11,026 thousand for the hotel operations segment in 2024, an improvement from a loss of HKD 14,751 thousand in 2023[44] - The group reported a loss of approximately HKD 20.4 million after tax, a reduction of 14.6% from HKD 23.9 million in the previous year, mainly due to increased revenue[106] Assets and Liabilities - Total assets decreased to HKD 459,591,000 from HKD 485,288,000, reflecting a decline in current liabilities[6] - Non-current liabilities decreased to HKD 80,778,000 from HKD 86,077,000, indicating improved financial stability[7] - The group reported a decrease in total liabilities to HKD 176,414 thousand in 2024 from HKD 203,145 thousand in 2023, a reduction of 13.2%[44] - The total amount of unfulfilled performance obligations as of March 31, 2024, was approximately HKD 64,900,000, down from HKD 92,000,000 in 2023[55] - The group’s total assets decreased to HKD 555,227 thousand in 2024 from HKD 602,356 thousand in 2023, reflecting a decline of 7.8%[44] - The group’s net asset value as of March 31, 2024, was approximately HKD 378.8 million, a decrease from HKD 399.2 million in the previous year, primarily due to depreciation and impairment losses on investment properties[107] Cash Flow and Financing - The company reported cash and bank balances of HKD 42,642,000, down from HKD 50,212,000 in the previous year[6] - The total bank financing obtained by the group as of March 31, 2024, amounts to HKD 225 million, with HKD 107 million yet to be utilized[41] - The total borrowings amounted to approximately HKD 128.6 million, down from HKD 143.4 million in the previous year[107] - The total bank loans increased to HKD 118,035,000 in 2024 from HKD 113,406,000 in 2023, with a notable portion being secured by commercial and hotel properties[81] - The group has a provision for long service payments totaling HKD 4,364,000 in 2024, up from HKD 640,000 in 2023, reflecting increased employee retention costs[82] Revenue Segments - External revenue from hotel operations increased to HKD 74,443 thousand in 2024, up from HKD 44,702 thousand in 2023, representing a growth of 66.7%[42] - The construction and renovation services segment reported revenue of HKD 102,501,000, an increase of 25.5% from HKD 81,660,000 in the previous year[52] - Hotel room sales generated HKD 71,540,000 in 2024, up from HKD 39,607,000 in 2023, reflecting an increase of 80.5%[52] - The group aims to continue increasing hotel revenue from travel agencies, providing a relatively stable income source[41] - The company recorded revenue of approximately HKD 102.5 million from its building materials trading and renovation construction business during the review year[96] Operational Challenges and Market Conditions - The group anticipates that the economic environment will remain weak and uncertain, impacting the construction industry and increasing competition[37] - The company faces intense competition in the construction industry, which has weakened project profit margins amid sluggish economic growth[93] - The company’s customer base has shifted from local long-term residents to overseas and mainland Chinese tourists, reflecting changing travel patterns[94] - The group has acknowledged significant uncertainties regarding its ability to continue as a going concern, which may affect its capacity to realize assets and settle liabilities[39] Accounting and Reporting Standards - The company has adopted revised Hong Kong Financial Reporting Standards, which did not significantly impact its financial position or performance[11] - The amendments to Hong Kong Accounting Standard No. 12 clarify that the initial recognition exemption for deferred tax assets and liabilities does not apply to transactions that give rise to equal taxable and deductible temporary differences[17] - The group expects that the application of the amendments will not have a significant impact on its consolidated financial statements for the current year[18] - The amendments to Hong Kong Accounting Standard No. 1 classify liabilities as current or non-current based on rights existing at the end of the reporting period, regardless of the entity's expected timing of settlement[21] Employee and Operational Expenses - The group has recognized an increase in administrative expenses amounting to HKD 3,612,000 and an increase in financing costs of HKD 111,000, leading to a total increase in year-end losses of HKD 3,723,000[34] - The company incurred employee costs of HKD 52,050,000, which included a one-time subsidy of HKD 2,233,000 from the Hong Kong government[58] - The administrative and other operating expenses were approximately HKD 36 million, an increase from HKD 34.6 million in the previous year, primarily due to higher hotel operating expenses[104] Future Outlook - The company anticipates strong demand for building materials and renovation projects due to the completion of new residential units, estimated to provide around 20,550 private housing units in the upcoming years[92] - The government announced the expansion of the "Individual Visit" scheme to 8 additional cities in mainland China, increasing potential customer reach to over 33 million people[91] - The group has prepared a cash flow forecast for the next 18 months, indicating sufficient cash resources to meet future operational and financing needs[38]
茂盛控股(00022) - 2024 - 年度业绩