世纪集团国际(02113) - 2024 - 年度业绩

Financial Highlights The company reported a substantial revenue decline and continued losses for the year ended March 31, 2024, with no dividend proposed Annual Financial Summary for the Year Ended March 31, 2024 | Indicator | Year Ended March 31, 2024 | Year Ended March 31, 2023 | | :--- | :--- | :--- | | Revenue from Continuing Operations | Approximately HKD 47,500,000 | Approximately HKD 127,200,000 | | Gross Loss from Continuing Operations | Approximately HKD 5,400,000 | Approximately HKD 22,800,000 | | Loss Attributable to Owners of the Company | Approximately HKD 12,900,000 | Approximately HKD 22,500,000 | | Basic and Diluted Loss Per Share | Approximately HKD 0.02 | Approximately HKD 0.03 | | Proposed Dividend | No dividend proposed | Nil | Consolidated Financial Statements Consolidated Statement of Profit or Loss and Other Comprehensive Income For FY2024, the Group's revenue from continuing operations significantly decreased, yet gross loss narrowed and total loss reduced to HKD 12.91 million due to greater service cost reductions Key Items from Consolidated Statement of Profit or Loss (HKD thousands) | Item | 2024 | 2023 (Restated) | | :--- | :--- | :--- | | Continuing Operations | | | | Revenue | 47,543 | 127,188 | | Gross Loss | (5,375) | (22,763) | | Loss Before Tax | (7,532) | (22,562) | | (Loss) Profit for the Year from Discontinued Operations | (5,381) | 18 | | Loss for the Year | (12,913) | (22,544) | | Basic and Diluted Loss Per Share (HK cents) | (2) | (3) | Consolidated Statement of Financial Position As of March 31, 2024, the Group's financial position deteriorated with total assets decreasing to HKD 41.88 million, net current liabilities expanding to HKD 14.16 million, and total equity becoming negative HKD 13.90 million, indicating insolvency Key Items from Consolidated Statement of Financial Position (HKD thousands) | Item | As at March 31, 2024 | As at March 31, 2023 | | :--- | :--- | :--- | | Total Assets (Non-current + Current) | 256 + 41,627 = 41,883 | 791 + 67,252 = 68,043 | | Current Liabilities | 55,784 | 68,944 | | Net Current Liabilities | (14,157) | (1,692) | | Net Liabilities | (13,901) | (901) | | Total Equity | (13,901) | (901) | Notes to the Consolidated Financial Statements The notes detail the company's primary business in construction and site formation, the termination of LNG trading, significant uncertainties regarding going concern due to net loss and net liabilities, and high revenue concentration from a few key clients in Hong Kong Going Concern Assessment The report highlights significant uncertainties regarding the Group's going concern due to a net loss of HKD 12.91 million and net current liabilities of HKD 14.16 million as of March 31, 2024, despite management's mitigation efforts - As of March 31, 2024, the Group recorded a net loss of approximately HKD 12,913,000, with net current liabilities and net liabilities of HKD 14,157,000 and HKD 13,901,000 respectively, indicating significant uncertainties that may cast substantial doubt on the Group's ability to continue as a going concern[18] - To address going concern risks, management has taken measures including a subsidiary director agreeing not to demand repayment of approximately HKD 15.5 million owed until the company's financial position allows, a HKD 15 million loan facility successfully renewed for 18 months, and expectations for the construction segment to generate profit and cash inflow in FY2025 following the substantial completion of a loss-making project in June 2023[21] Revenue and Segment Information All of the Group's revenue for the year, totaling HKD 47.54 million, was derived from Hong Kong public sector construction and site formation services, with the LNG trading business terminated and revenue highly concentrated among three major clients - The Group's business segments have been simplified to a single reportable segment, "Building and Site Formation," with all revenue derived from Hong Kong, as the "Trading of Liquefied Natural Gas" operating segment was discontinued during the year[26] Major Customer Revenue Contribution (HKD thousands) | Customer | 2024 | 2023 | | :--- | :--- | :--- | | Customer A | 17,542 | 73,837 | | Customer B | 15,482 | 26,654 | | Customer C | 14,518 | 25,749 | - As of March 31, 2024, the transaction price allocated to unfulfilled performance obligations for construction contracts was approximately HKD 12,786,000, a significant decrease from HKD 47,612,000 last year, indicating a substantial reduction in future order backlog[25] Discontinued Operations The Group formally terminated its liquefied natural gas trading business during the year, resulting in a HKD 5.38 million loss for FY2024, primarily due to the write-off of HKD 9.82 million in other receivables - The Board of Directors resolved to discontinue the Group's trading of liquefied natural gas business during the current year[32] Results of Discontinued Operations (HKD thousands) | Item | 2024 | 2023 | | :--- | :--- | :--- | | Revenue | - | 5,233 | | Write-off of Other Receivables | (9,820) | - | | Write-off of Other Payables | 4,436 | - | | (Loss) Profit for the Year | (5,381) | 18 | Management Discussion and Analysis Business Review and Outlook The Group's core business in Hong Kong construction and site formation saw a reduction in project volume and contract value, while the LNG trading business was terminated due to market conditions, with management remaining optimistic about Hong Kong market demand and focusing on cost control Building and Site Formation Works Services As a Hong Kong subcontractor, the Group's active projects decreased from three to two, and total contract value declined from approximately HKD 437 million to HKD 324 million, indicating a contraction in business scale - As of March 31, 2024, the Group had 2 projects on hand with a total contract value of approximately HKD 324 million, compared to 3 projects with a total contract value of approximately HKD 437 million in the prior year[50] Trading of Liquefied Natural Gas The Group terminated its liquefied natural gas trading business due to high market volatility, unstable gas sources, and significant seasonal and regional supply-demand imbalances in China - The Group has ceased its liquefied natural gas trading business in China due to high market volatility, a weak foundation for securing stable gas sources, and expanding seasonal and regional supply-demand imbalances[53] Prospects Management remains optimistic about the demand for site formation works in Hong Kong's public and private sectors, with future strategies focusing on strict cost control, efficiency improvements, and enhanced project management to address intense market competition - The Directors remain optimistic about the construction industry but acknowledge intense competition, with the Group aiming to enhance competitiveness by delivering quality works, strictly controlling costs, improving efficiency, and strengthening project management[54] Financial Review For FY2024, the Group's revenue sharply declined by 62.6% to HKD 47.5 million due to intense competition, yet gross loss narrowed by 76.4% to HKD 5.4 million and administrative expenses decreased by 28.7%, collectively reducing the annual loss to HKD 12.9 million - The decrease in revenue was primarily due to a significant reduction in the number of awarded projects caused by intense competition and high material prices[55] Financial Performance Summary (HKD) | Item | Reporting Period (FY2024) | Prior Period (FY2023) | Change | | :--- | :--- | :--- | :--- | | Revenue | Approximately 47,500,000 | Approximately 127,200,000 | -62.6% | | Gross Loss | Approximately 5,400,000 | Approximately 22,800,000 | -76.4% | | Administrative Expenses | Approximately 4,800,000 | Approximately 6,700,000 | -28.7% | | Loss for the Year | Approximately 12,900,000 | Approximately 22,500,000 | -42.7% | Liquidity, Financial Resources and Capital Resources As of the reporting period, the Group's liquidity was severely constrained, with bank balances significantly reduced, interest-bearing debts increased, and a negative total equity resulting in a negative gearing ratio, indicating a highly fragile capital structure and high financial risk Liquidity and Capital Structure | Indicator | As at March 31, 2024 | As at March 31, 2023 | | :--- | :--- | :--- | | Bank Balances | Approximately HKD 2,100,000 | Approximately HKD 6,900,000 | | Interest-bearing Debts | Approximately HKD 5,100,000 | Approximately HKD 3,300,000 | | Gearing Ratio | (0.37) | (3.64) | Employees and Remuneration Policy In response to business contraction, the Group optimized its workforce, reducing the number of employees from 150 to 118 and consequently decreasing total employee costs (excluding directors' emoluments) by over 50% to approximately HKD 33.2 million for the year Employee and Cost Changes | Indicator | As at March 31, 2024 | As at March 31, 2023 | | :--- | :--- | :--- | | Number of Employees | 118 | 150 | | Total Employee Costs for the Year | Approximately HKD 33,200,000 | Approximately HKD 69,000,000 | Corporate Governance and Other Information Corporate Governance The company largely complied with the Corporate Governance Code during the reporting period, with one deviation where the roles of Chairman and Chief Executive Officer were combined, though the board believes existing arrangements ensure power balance - The company did not comply with Corporate Governance Code provision C.2.1, which stipulates that the roles of Chairman and Chief Executive Officer should be separate, though the company explained that all major decisions are made after consulting Board members and senior management, ensuring sufficient power balance[70] Review of Financial Information The Audit Committee, comprising three independent non-executive directors, reviewed the annual consolidated financial statements and results, confirming compliance with applicable accounting standards and adequate disclosures, with the financial statements also audited by the Group's auditor - The Audit Committee, composed of three independent non-executive directors, has reviewed the Group's consolidated financial statements and annual results, concluding that the company has complied with applicable accounting standards and regulations and made adequate disclosures[73]