Financial Performance - For the fiscal year ending March 31, 2024, the group's revenue was approximately HKD 49,960,000, a decrease of about 24.8% compared to HKD 66,397,000 for the fiscal year ending March 31, 2023[15]. - The gross profit margin for the fiscal year ending March 31, 2024, was approximately 31%, compared to 14% for the previous year[15]. - The group recorded a profit of approximately HKD 1,960,000 for the fiscal year ending March 31, 2024, compared to a loss of approximately HKD 26,448,000 for the fiscal year ending March 31, 2023[16]. - Basic earnings per share for the fiscal year ending March 31, 2024, were approximately HKD 0.1905, compared to a basic loss per share of HKD 0.0093 for the previous year[15]. - The total comprehensive income for the fiscal year ending March 31, 2024, was HKD 3,252,000, compared to a total comprehensive loss of HKD 32,113,000 for the previous year[16]. - The group reported a net loss of HKD 3,052,000 from other income/expenses for the fiscal year ending March 31, 2024, compared to a net gain of HKD 90,000 for the previous year[16]. - The group recognized a net loss of HKD 1,961,000 for the year ended March 31, 2024, compared to a loss of HKD 26,300,000 for the year ended March 31, 2023[85]. - The group incurred a pre-tax loss of HKD 26,374,000, with sales and distribution expenses amounting to HKD 149,000[55]. Expenses and Costs - The group’s administrative expenses decreased from HKD 12,256,000 to HKD 8,790,000 for the fiscal year ending March 31, 2024[16]. - Financing costs decreased from HKD 576,000 to HKD 259,000 for the fiscal year ending March 31, 2024[16]. - Total employee costs decreased from HKD 9,129,000 for the year ended March 31, 2023, to HKD 5,406,000 for the year ended March 31, 2024[80]. - Selling and distribution expenses rose from approximately HKD 100,000 for the year ended March 31, 2023, to approximately HKD 200,000 for the year ended March 31, 2024, primarily due to increased logistics costs[103]. - The group's cost of sales decreased by approximately 39.6% from HKD 57,100,000 for the year ending March 31, 2023, to approximately HKD 34,500,000 for the year ending March 31, 2024, resulting in an increase in gross margin from approximately 14.0% to approximately 31.0%[129]. Revenue Breakdown - Total revenue for the year was HKD 49,960,000, with the two-way radio segment contributing HKD 40,275,000[36]. - Revenue from baby monitors significantly increased from approximately HKD 47,000 for the year ended March 31, 2023, to approximately HKD 5,900,000 for the year ended March 31, 2024, due to increased demand[99]. - Revenue from other communication equipment dropped 100% from approximately HKD 3,300,000 for the year ended March 31, 2023, to zero for the year ended March 31, 2024, due to decreased demand[100]. - Revenue from two-way radios decreased by approximately 33.1% from HKD 60,200,000 for the year ending March 31, 2023, to approximately HKD 40,300,000 for the year ending March 31, 2024, due to a reduction in procurement orders received from customers[127]. - Revenue from plastic products increased by approximately 33.4% from HKD 2,800,000 for the year ending March 31, 2023, to approximately HKD 3,800,000 for the year ending March 31, 2024[128]. Goodwill and Impairment - The group incurred a goodwill impairment loss of HKD 34,227,000 in the previous fiscal year, which was not present in the current fiscal year[16]. - The goodwill recorded was HKD 679,000, down from HKD 15,855,000 in 2023, reflecting potential impairment[19]. - The goodwill generated from the acquisition of Fook Cheung Overseas Limited amounted to HKD 50,082,000, allocated to the cash-generating unit representing the entire business of Fook Cheung Overseas[67]. Liquidity and Financial Position - Current liabilities decreased to HKD 10,225,000 from HKD 21,986,000, indicating improved liquidity[18]. - The company’s total equity increased to HKD 6,309,000 from a deficit of HKD 5,703,000 in the previous year[18]. - As of March 31, 2024, the group's current liabilities exceeded current assets by HKD 10,225,000, with cash and cash equivalents amounting to HKD 4,848,000, raising significant doubts about the group's ability to continue as a going concern[47]. - The independent auditor's report indicates that the consolidated financial statements fairly reflect the group's financial position as of March 31, 2024, but notes a significant uncertainty regarding the group's ability to continue as a going concern due to current liabilities exceeding current assets by HKD 10,225,000[152]. Corporate Governance and Future Plans - The group has established a corporate governance framework and policies to enhance the board's governance and oversight capabilities[133]. - The company is focused on expanding its product lines in two-way radios, baby monitors, and other communication devices[39]. - The group plans to continue exploring market expansion opportunities and new product development strategies in the upcoming fiscal year[14]. - The company has adopted the corporate governance code as per GEM listing rules and will regularly review and improve its governance practices[146][147]. Share Placement and Financing - The company completed a placement agreement on April 12, 2024, issuing 172,350,000 new shares at HKD 0.034 per share, raising net proceeds of HKD 5,772,000[29]. - A placement agreement was entered into on April 12, 2024, to place up to 172,350,000 new shares at a price of HKD 0.034 per share[122]. - The group has a total credit financing from related companies amounting to approximately HKD 10,000,000, which has not been drawn down as of the report date[48]. Taxation - The effective tax rate for the group is 16.5% for profits exceeding HKD 2,000,000, with a total tax expense of HKD 963,000 reported[61]. Dividends - The group did not declare or recommend any final dividends for the reporting period, consistent with the previous year[83]. - The board does not recommend the payment of a dividend for the year ending March 31, 2024, compared to zero dividend for the previous year[106]. Accounting Standards - The group has not applied the revised Hong Kong Financial Reporting Standards that have been issued but are not yet effective, and is currently assessing their potential impact[44]. - The company has implemented new accounting standards that did not significantly impact the financial performance for the current and prior years[40]. Management and Monitoring - Management is actively monitoring the group's financial performance and liquidity, implementing cost control measures including rent negotiations and salary reductions[49].
善裕集团控股(08245) - 2024 - 年度业绩