Consolidated Financial Statements Consolidated Statement of Profit or Loss and Other Comprehensive Income For the year ended March 31, 2024, the Group's revenue increased 16.2% to HKD 423 million, with profit attributable to owners rising to HKD 6.178 million Annual Consolidated Performance Summary | Metric | 2024 (HKD thousands) | 2023 (HKD thousands) | Year-on-Year Change | | :--- | :--- | :--- | :--- | | Revenue (Continuing Operations) | 422,733 | 363,764 | +16.2% | | Gross Profit | 37,237 | 33,787 | +10.2% | | Profit from Continuing Operations | 6,178 | 4,619 | +33.7% | | Profit for the Year Attributable to Owners of the Company | 6,178 | 816 | +657.1% | | Basic Earnings Per Share (HK cents) | 1.77 | 0.27 | +555.6% | - The FY2023 results included a loss from discontinued operations of approximately HKD 3.803 million, while FY2024 had no such impact, which was one of the reasons for the significant improvement in annual profit6263 Consolidated Statement of Financial Position As of March 31, 2024, the Group's total assets were HKD 205 million, with net assets at HKD 118 million and a current ratio improving to 2.3 times, reflecting a stable financial position Financial Position Summary | Metric | 2024 (HKD thousands) | 2023 (HKD thousands) | | :--- | :--- | :--- | | Non-current Assets | 11,291 | 11,811 | | Current Assets | 193,558 | 200,172 | | Total Assets | 204,849 | 211,983 | | Current Liabilities | 85,858 | 92,747 | | Non-current Liabilities | 1,034 | 3,366 | | Total Liabilities | 86,892 | 96,113 | | Net Assets (Total Equity) | 117,957 | 115,870 | - Current assets primarily include bank and cash balances of HKD 79.75 million, other receivables, deposits and prepayments of HKD 90.83 million, and trade receivables of HKD 10.17 million64 Notes to the Consolidated Financial Statements Segment Information The Group's core business is gold processing and trading in China, which constitutes all revenue, with previous outsourced business process management and money lending services terminated in FY2023 - The Group currently has only one reportable segment: gold processing and trading, which contributed all HKD 423 million in revenue in FY20249681 - Outsourced business process management and money lending services were classified as discontinued operations in prior years7997 - Geographically, all of the Group's revenue is derived from the Chinese market88 Key Financial Data Notes This section provides detailed explanations of key financial items, noting a significant increase in trade receivables and no recommended dividend for the current year - The Board does not recommend the payment of any dividend for the year ended March 31, 2024, consistent with the prior year2132 Earnings Per Share Calculation | Metric | 2024 | 2023 | | :--- | :--- | :--- | | Profit Attributable to Owners of the Company (HKD thousands) | 6,178 | 816 | | Weighted Average Number of Ordinary Shares (thousands) | 349,520 | 301,510 | | Basic Earnings Per Share (HK cents) | 1.77 | 0.27 | - Total trade receivables surged from HKD 1.528 million to HKD 12.541 million, with a significant portion overdue by more than 90 days, and an impairment provision of HKD 2.373 million was recognized56121 - Net proceeds of approximately HKD 71.3 million from the rights issue completed in June 2022 were originally intended for establishing a gold ore processing plant; however, most funds remain in bank accounts due to site selection delays27 Management Discussion and Analysis Financial Review In FY2024, revenue grew 16.2% to HKD 423 million, but gross margin declined to 8.8% due to lower ore grades, and administrative expenses increased, resulting in a net profit of HKD 6.2 million Revenue by Business Segment | Business Segment | FY2024 Revenue (HKD millions) | FY2023 Revenue (HKD millions) | Year-on-Year Change | | :--- | :--- | :--- | :--- | | Gold-loaded Carbon Processing | 153.8 | 134.7 | +14.2% | | Gold Ore Processing | 268.9 | 228.7 | +17.6% | | Total | 422.7 | 363.8 | +16.2% | - Gross profit margin decreased from 9.3% in the previous fiscal year to 8.8% in the current fiscal year, primarily due to lower gold ore grades supplied by vendors, leading to a decline in the gross profit margin for gold ore processing47 - Administrative and other operating expenses increased by 24.4% year-on-year to HKD 28.6 million, mainly due to increased depreciation from new processing plant leases, higher impairment losses on trade receivables, and increased directors' remuneration49 Liquidity, Financial Resources and Foreign Currency Risk The Group maintains a robust financial position with HKD 79.8 million in cash, a current ratio of 2.3 times, and zero gearing, adopting a prudent treasury policy without hedging foreign exchange risk Liquidity Indicators | Metric | As of March 31, 2024 | As of March 31, 2023 | | :--- | :--- | :--- | | Cash and Cash Equivalents | HKD 79.8 million | HKD 91.8 million | | Current Ratio | 2.3 times | 2.2 times | | Gearing Ratio | Zero | Zero | - The Group's foreign exchange risk primarily stems from its USD and RMB bank deposits, which management will closely monitor and consider hedging when necessary5455 Use of Proceeds from Rights Issue The company raised HKD 67.2 million from a 2022 rights issue for a new beneficiation plant, with HKD 64.1 million unutilized and expected to be used by June 30, 2025 Use of Proceeds from Rights Issue (As of March 31, 2024) | Item | Intended Use (HKD thousands) | Actual Use (HKD thousands) | Remaining Funds (HKD thousands) | | :--- | :--- | :--- | :--- | | Preparation Costs | 3,100 | 3,100 | – | | Construction Costs | 64,100 | – | 64,100 | | Total | 67,200 | 3,100 | 64,100 | Future Development of the Group's Business The Group monitors gold price trends, with its planned Henan plant suspended due to land issues, now evaluating a new plant in Yunnan to achieve higher revenue and profits - The Group's profitability is highly dependent on gold prices, which are influenced by geopolitical factors such as US interest rates and the global economic environment8 - The original plan to establish a new gold ore processing plant in Luanchuan County, Henan, has been suspended, primarily due to land and tailings dam construction approval issues138 - To advance its own processing plant construction plan, the Group is actively considering and evaluating the possibility of establishing a new plant in Yunnan Province, currently engaged in preliminary discussions with local governments1389 Principal Risks and Uncertainties The Group faces strategic, operational, financial, and compliance risks, including economic instability, staff turnover, and liquidity issues, which management monitors and manages - Strategic risks: Economic, governmental, and political instability may lead to business stagnation or delays in new business expansion164143 - Operational risks: Include loss of key operating personnel and crisis events that could lead to business interruption20144159 - Financial risks: Encompass liquidity risk, foreign exchange rate risk, and credit risk, managed by the Group through monitoring cash flow, maintaining sufficient cash, and assigning teams for credit control21166 Corporate Governance and Other Information Corporate Governance The company complies with Listing Rules' Corporate Governance Code, with the Audit Committee reviewing annual results, noting only the Chairman's absence from the 2023 AGM as a deviation - The company has adopted the Corporate Governance Code in Appendix C1 and the Model Code for Securities Transactions by Directors in Appendix C3 of the Listing Rules16 - Mr. Liu Shiwei, the Chairman of the Board, was unable to attend the 2023 Annual General Meeting due to other business commitments, constituting a deviation from Corporate Governance Code provision F.2.22417 - The Audit Committee has reviewed the annual results and discussed the Group's accounting principles, internal controls, and financial reporting matters148
胜龙国际(01182) - 2024 - 年度业绩