杜甫酒业集团(00986) - 2024 - 年度业绩

Financial Performance Summary In FY2024, total revenue slightly decreased, but gross profit increased; however, significant impairment losses on expected credit expanded the annual loss to HKD 18.51 million Consolidated Statement of Profit or Loss and Other Comprehensive Income In FY2024, total revenue slightly decreased, while gross profit increased; however, significant impairment losses on expected credit expanded the annual loss to HKD 18.51 million | Metric | 2024 (HKD thousands) | 2023 (HKD thousands) | | :--- | :--- | :--- | | Revenue | 66,052 | 68,472 | | Cost of sales | (36,178) | (40,440) | | Gross Profit | 29,874 | 28,032 | | Other income | 2 | 304 | | Net other gains and losses | (23) | (1,574) | | Impairment losses on expected credit losses | (30,723) | (21,826) | | Administrative expenses | (11,030) | (10,501) | | Finance costs | (1,655) | (1,054) | | Loss before tax | (18,587) | (13,506) | | Loss for the year | (18,513) | (14,461) | | Other comprehensive expense for the year | (16,047) | 1,378 | | Total comprehensive expense for the year | (34,560) | (13,083) | - Basic loss per share was 1.43 HK cents, compared to 1.12 HK cents in the prior year. Diluted loss per share was not presented as the Company had no potential dilutive ordinary shares[12][52] Consolidated Statement of Financial Position As of March 31, 2024, total assets decreased to HKD 387.4 million, total liabilities increased, and net assets declined to HKD 332.0 million, notably reducing net current assets | Assets | 2024 (HKD thousands) | 2023 (HKD thousands) | | :--- | :--- | :--- | | Non-current assets | 229,381 | 115,953 | | Of which: Loans receivable | 216,586 | 85,002 | | Of which: Financial assets at fair value through other comprehensive income | 12,279 | 28,419 | | Current assets | 158,037 | 298,090 | | Of which: Inventories | 98,202 | 83,227 | | Of which: Loans and interest receivables | 32,020 | 168,558 | | Total Assets | 387,418 | 414,043 | | Liabilities and Equity | 2024 (HKD thousands) | 2023 (HKD thousands) | | :--- | :--- | :--- | | Current liabilities | 43,181 | 38,449 | | Non-current liabilities | 12,233 | 9,030 | | Total Liabilities | 55,414 | 47,479 | | Net Assets | 332,004 | 366,564 | | Total Equity | 332,004 | 366,564 | Notes to Consolidated Financial Statements General Information and Basis of Preparation The Company, listed on HKEX, primarily engages in jewellery design and money lending, with consolidated financial statements prepared under HKFRS - The Company is an investment holding company, and the Group primarily engages in two main businesses: jewellery design and marketing, and money lending[2] - The financial statements are prepared in accordance with Hong Kong Financial Reporting Standards (HKFRS) issued by the Hong Kong Institute of Certified Public Accountants, and comply with the disclosure requirements of the Hong Kong Listing Rules and the Companies Ordinance[3] Changes in Accounting Policies The Group adopted new and amended HKFRSs this year, including HKFRS 17, with no significant impact on financial statements, and has not yet applied certain future standard amendments - Several new and amended Hong Kong Financial Reporting Standards were first applied this year, including amendments to accounting policy disclosures, the definition of accounting estimates, and deferred tax[4][25] - The application of new and amended standards had no significant impact on the Group's consolidated financial position and results for the current and prior years[4] - The Group has not yet applied several issued but not yet effective standard amendments, and the Directors do not expect these amendments to have a significant impact on the financial statements in the foreseeable future[6][7] Revenue Analysis Total revenue for FY2024 was HKD 66.05 million, a decrease from the prior year, with jewellery sales and money lending interest income as primary contributors | Revenue Source | 2024 (HKD thousands) | 2023 (HKD thousands) | | :--- | :--- | :--- | | Sales of jewellery | 37,900 | 41,806 | | Interest income from money lending | 28,152 | 26,666 | | Total | 66,052 | 68,472 | Segment Information The Group's jewellery segment turned profitable despite revenue decline, while money lending recorded a loss due to increased credit loss provisions; operations are primarily in Hong Kong with two major customers By Business Segment In FY2024, the jewellery business segment turned profitable, while money lending shifted to a loss of HKD 5.13 million, primarily due to a significant increase in expected credit loss impairment for loans receivable | By Business Segment | Jewellery Design and Marketing (HKD thousands) | Money Lending (HKD thousands) | Total (HKD thousands) | | :--- | :--- | :--- | :--- | | 2024 Segment Revenue | 37,900 | 28,152 | 66,052 | | 2024 Segment Results | 278 | (5,127) | (4,849) | | 2023 Segment Revenue | 41,806 | 26,666 | 68,472 | | 2023 Segment Results | (4,493) | 2,740 | (1,753) | | Segment Assets and Liabilities (March 31, 2024) | Jewellery Design and Marketing (HKD thousands) | Money Lending (HKD thousands) | Total (HKD thousands) | | :--- | :--- | :--- | :--- | | Segment Assets | 125,585 | 215,251 | 340,836 | | Segment Liabilities | 9,460 | 316 | 9,776 | - The money lending business segment recognized a goodwill impairment loss of HKD 1 million, and impairment losses on expected credit losses for loans and interest receivables of HKD 32.07 million[42] By Geographical Area The Group's primary operations and revenue generation are located in Hong Kong - The Group's operating businesses are primarily located in Hong Kong[42] - The geographical market for the Group's revenue is determined by the location where services are provided or goods are delivered, primarily in Hong Kong[39] Major Customer Information In the jewellery business, Customer A and Customer B each contributed over 10% of the Group's total revenue, with HKD 18.12 million and HKD 7.44 million respectively | Customer | Business Segment | 2024 Revenue (HKD thousands) | 2023 Revenue (HKD thousands) | | :--- | :--- | :--- | :--- | | Customer A | Jewellery Design and Marketing | 18,117 | 19,720 | | Customer B | Jewellery Design and Marketing | 7,442 | N/A | Analysis of Key Profit or Loss and Tax Items This fiscal year, other income decreased and net other gains turned positive; however, a substantial increase in expected credit loss impairment was the primary driver of the expanded overall loss, with finance costs also rising - Other income decreased from HKD 0.304 million to HKD 0.002 million, primarily due to HKD 0.206 million in government subsidies last year[46] - Total impairment losses on expected credit losses for trade receivables and loans and interest receivables amounted to HKD 30.72 million, a significant increase from HKD 21.83 million last year[47] - Finance costs increased from HKD 1.05 million to HKD 1.66 million, primarily due to increased estimated interest on non-convertible bonds[49] - An income tax credit of HKD 0.074 million was recorded for the year, compared to an income tax expense of HKD 0.955 million last year[49][77] Analysis of Key Balance Sheet Items At period-end, listed equity securities' market value significantly decreased; total loans receivable increased but with substantial credit loss provisions; trade receivables and payables balances also significantly reduced Financial Assets at Fair Value Through Other Comprehensive Income (FVOCI) The Group's listed equity securities, held for long-term strategic purposes, saw their market value significantly decline from HKD 28.42 million to HKD 12.28 million | Item | 2024 (HKD thousands) | 2023 (HKD thousands) | | :--- | :--- | :--- | | Listed equity securities | 12,279 | 28,419 | - These investments are not held for trading but for long-term strategic purposes[79] Trade Receivables Net trade receivables significantly decreased from HKD 26.01 million to HKD 8.25 million, with an improved aging structure and a 90-day credit period | Aging | 2024 (HKD thousands) | 2023 (HKD thousands) | | :--- | :--- | :--- | | Within 3 months | 6,898 | 10,467 | | 4 to 6 months | 876 | 6,179 | | Over 6 months | 475 | 9,362 | | Total | 8,249 | 26,008 | Loans and Interest Receivables Total loans and interest receivables increased to HKD 312 million, but expected credit loss provisions significantly rose to HKD 63.10 million, reducing net book value, with annual interest rates from 8% to 11% | Item | 2024 (HKD thousands) | 2023 (HKD thousands) | | :--- | :--- | :--- | | Loans and interest receivables | 311,606 | 284,600 | | Less: Provision for expected credit losses | (63,100) | (31,040) | | Net book value | 248,506 | 253,560 | | Less: Non-current portion | (216,586) | (85,002) | | Current portion | 32,020 | 168,558 | - The fixed annual interest rate for loans receivable ranges from 8% to 11%, with an effective annual interest rate ranging from 9% to 11%[59] Trade Payables Trade payables balance significantly decreased from HKD 3.50 million to HKD 0.50 million, with a credit period ranging from 30 to 180 days | Aging | 2024 (HKD thousands) | 2023 (HKD thousands) | | :--- | :--- | :--- | | Within 90 days | 141 | – | | 91 to 180 days | 22 | 3,270 | | Over 180 days | 338 | 228 | | Total | 501 | 3,498 | Loss Per Share and Dividends In FY2024, the loss attributable to owners was HKD 18.51 million, resulting in a basic loss per share of 1.43 HK cents, and no dividends were recommended | Item | 2024 | 2023 | | :--- | :--- | :--- | | Loss for the year attributable to owners of the Company (HKD thousands) | (18,513) | (14,461) | | Weighted average number of ordinary shares (thousands) | 1,294,706 | 1,289,492 | | Basic loss per share (HK cents) | (1.43) | (1.12) | - No dividends were paid or proposed for the year ended March 31, 2024[77][112] Management Discussion and Analysis Financial Review In FY2024, revenue slightly decreased, but gross profit margin improved; however, increased expected credit loss provisions expanded the annual loss to HKD 18.51 million, despite cost control measures - Revenue decreased by 3.53% year-on-year to approximately HKD 66.05 million[89] - Gross profit increased by 6.56% to HKD 29.87 million, with gross profit margin improving to 45.22%, primarily due to higher demand for money lending[64] - Loss for the year increased to HKD 18.51 million, mainly due to an increase in expected credit loss provisions for loans and interest receivables from HKD 21.82 million to HKD 30.72 million[65][90] - Selling, distribution, and administrative expenses decreased by 7.59%, reflecting the Group's proactive cost control measures[91] Business Review and Outlook The Group operates in an uncertain macroeconomic environment; jewellery business turned profitable despite revenue decline, while money lending increased income but raised credit loss provisions, with future focus on risk management - Management believes that geopolitical conflicts, global inflation, and rising interest rates add uncertainty to the market, and revenue expectations will continue to face significant pressure[69][117] - Looking ahead, the Group will continue to strengthen risk management to address external risks and seize opportunities[70] Jewellery Design and Marketing Business This fiscal year, jewellery business revenue decreased to HKD 37.90 million but successfully turned profitable, recording a pre-tax operating profit of HKD 0.27 million, primarily due to conservative consumer spending | Item | 2024 (HKD thousands) | 2023 (HKD thousands) | | :--- | :--- | :--- | | Revenue | 37,900 | 41,800 | | Operating profit/(loss) before tax | 270 | (4,490) | - Despite the lifting of pandemic restrictions in mainland China, economic uncertainty continues to affect consumption, especially for non-essential items like jewellery, preventing the business from recovering[95] Money Lending Business The money lending business grew, with interest income increasing to HKD 28.15 million and total loan principal to HKD 310 million; however, significant expected credit loss provisions were made due to increased global economic risks | Metric | March 31, 2024 | March 31, 2023 | | :--- | :--- | :--- | | Interest income | Approx. HKD 28,150,000 | Approx. HKD 26,660,000 | | Number of borrowers | 122 | 87 | | Total loan principal | Approx. HKD 310,140,000 | Approx. HKD 276,570,000 | | Average annual interest rate | 10.58% | 9.70% | - The Group has established comprehensive credit assessment, due diligence, and loan monitoring mechanisms to manage credit risk[73][98][99] - Due to increased global economic risk factors, expected credit losses for loans and interest receivables of approximately HKD 30.72 million were recognized this year. Despite this accounting provision, the Group incurred no actual bad debts this year[100] - Total expected credit loss provisions for loans receivable increased to HKD 63.10 million, with the default provision rate rising from 11.22% to 20.34%[101] Material Investments The market value of listed equity investments significantly shrank to HKD 12.28 million, recording a fair value loss of HKD 16.14 million this year, and the Group will continue a diversified investment strategy | Investment Name (Stock Code) | Principal Business | Market Value as of March 31, 2024 (HKD millions) | Net Change in Fair Value During the Period (HKD millions) | | :--- | :--- | :--- | :--- | | Wellong Holdings Limited (8021) | Scaffolding, decoration, money lending, etc. | 8.62 | (15.07) | | Other listed equity securities | - | 3.66 | (1.07) | | Total | | 12.28 | (16.14) | - The Group will continue to adopt a diversified investment strategy and refer to professional advice to monitor investment performance to achieve better shareholder returns[127] Liquidity and Financial Resources As of March 31, 2024, the Group's liquidity tightened, with net current assets significantly decreasing to HKD 115 million and cash and cash equivalents at HKD 0.35 million, while the gearing ratio increased | Metric | March 31, 2024 | March 31, 2023 | | :--- | :--- | :--- | | Net current assets | Approx. HKD 114,850,000 | Approx. HKD 259,640,000 | | Cash and cash equivalents | Approx. HKD 350,000 | Approx. HKD 1,350,000 | | Total interest-bearing borrowings | Approx. HKD 26,260,000 | Approx. HKD 20,130,000 | | Gearing ratio | 6.77% | 4.87% | Risk Management The Group primarily operates in Hong Kong and mainland China, facing foreign exchange risks, but management considers USD exchange rate risk low due to HKD peg, and no derivative instruments were used for hedging this year - The Group's principal operations are in Hong Kong and mainland China, with transactions, assets, and liabilities primarily denominated in HKD, USD, and RMB[131] - Management considers the USD exchange rate risk not significant, and no derivative contracts were entered into to hedge foreign exchange risk[131] Other Information Dividend Policy The Board of Directors did not recommend any dividend distribution for the fiscal year ended March 31, 2024, consistent with the previous year - The Board of Directors did not recommend the declaration of any dividend for the year ended March 31, 2024[77][112] Employees and Remuneration Policy As of March 31, 2024, the Group's employee count nearly halved to 25, with remuneration determined by work nature, experience, and market conditions - As of March 31, 2024, the Group had 25 employees, compared to 47 in 2023[114] Significant Acquisitions and Future Plans The Group had no significant acquisitions or disposals this fiscal year and currently has no other major investment or capital asset future plans, but will continue to seek suitable investment opportunities - For the year ended March 31, 2024, the Company had no significant acquisitions or disposals[128] - As of March 31, 2024, the Group had no other major investment or capital asset future plans[129] - The Directors will continue to seek suitable investment opportunities to continuously broaden the Group's revenue sources and diversify its business portfolio[130]