新耀莱(00970) - 2023 - 年度业绩

Annual Results Announcement The group reported a revenue decline and a shift from profit to loss for the year ended March 31, 2023, alongside a decrease in total assets and an increase in gearing ratio Consolidated Statement of Comprehensive Income For the year ended March 31, 2023, the Group's revenue decreased by 7.6% to HKD 3.998 billion, gross profit fell by 32.5% to HKD 578 million, and the company recorded a loss of HKD 53.62 million compared to a profit of HKD 31.51 million in the prior year Consolidated Statement of Comprehensive Income Summary (Thousand HKD) | Indicator | 2023 | 2022 | Year-on-Year Change | | :--- | :--- | :--- | :--- | | Revenue | 3,997,656 | 4,324,487 | -7.6% | | Gross Profit | 578,128 | 856,432 | -32.5% | | Operating Profit | 36,416 | 82,267 | -55.7% | | (Loss)/Profit Before Income Tax | (59,852) | 9,619 | - | | (Loss)/Profit for the Year | (53,623) | 31,514 | - | | (Loss)/Profit Attributable to Owners of the Company | (53,127) | 34,052 | - | Per Share (Loss)/Earnings | Indicator | 2023 | 2022 | | :--- | :--- | :--- | | Basic (Loss)/Earnings Per Share | (15.5) HK cents | 10.0 HK cents | | Diluted (Loss)/Earnings Per Share | (15.5) HK cents | 10.0 HK cents | Consolidated Statement of Financial Position As of March 31, 2023, the Group's total assets decreased by 15.7% to HKD 3.986 billion, total liabilities were HKD 1.758 billion, and net assets were HKD 2.228 billion, with the gearing ratio increasing to 45.2% Consolidated Statement of Financial Position Summary (Thousand HKD) | Indicator | 2023 | 2022 | | :--- | :--- | :--- | | Non-current Assets | 2,253,825 | 2,693,652 | | Current Assets | 1,732,135 | 2,034,032 | | Total Assets | 3,985,950 | 4,727,684 | | Non-current Liabilities | 630,710 | 642,553 | | Current Liabilities | 1,127,330 | 1,359,808 | | Total Liabilities | 1,758,040 | 2,002,361 | | Total Equity | 2,227,920 | 2,725,323 | - As of March 31, 2023, the Group's gearing ratio (total borrowings and convertible bonds divided by total equity) increased to approximately 45.2% from approximately 39.4% as of March 31, 2022[246] Notes to Financial Statements This section provides detailed breakdowns of the Group's segment performance, revenue sources, changes in financial assets, and dividend policy Segment Information The Group's three segments are automobile distribution, non-automobile distribution, and property management and others, with automobile distribution remaining the primary revenue source at 87.5% of total revenue, while its segment result declined by 47.3% to HKD 231 million Segment Results (Thousand HKD) | Segment | 2023 | 2022 | | :--- | :--- | :--- | | Automobile Distribution | | | | Revenue | 3,497,614 | 3,800,194 | | Result | 230,559 | 437,642 | | Non-Automobile Distribution | | | | Revenue | 422,022 | 437,458 | | Result | (63,376) | (75,046) | | Property Management and Others | | | | Revenue | 78,020 | 86,835 | | Result | (40,252) | (202,461) | Revenue Total revenue for the year decreased by 7.6% to HKD 3.998 billion, primarily due to an 8.2% decline in automobile sales to HKD 3.404 billion, while after-sales and property management services saw slight increases Revenue by Product or Service Line (Thousand HKD) | Revenue Source | 2023 | 2022 | | :--- | :--- | :--- | | Automobile Sales | 3,404,431 | 3,709,351 | | Other Goods Sales | 422,022 | 437,458 | | Provision of After-sales Services | 93,183 | 90,843 | | Provision of Property Management Services | 1,561 | 1,059 | | Interest Income from Lending Services | 1,942 | 5,652 | | Provision of Property Leasing Services | 74,517 | 80,124 | | Total | 3,997,656 | 4,324,487 | Financial Assets at Fair Value Through Other Comprehensive Income As of March 31, 2023, financial assets at fair value through other comprehensive income significantly decreased to approximately HKD 158 million from HKD 320 million, mainly due to a decline in the market price of shares held in Bang & Olufsen A/S - The fair value of the Group's listed equity securities decreased from HKD 320 million to HKD 158 million, primarily invested in Denmark-listed Bang & Olufsen A/S[113] - These equity investments are designated as at fair value through other comprehensive income because the Group considers them strategic investments[99] Dividends The Board did not recommend a final dividend for the year ended March 31, 2023, nor were any interim dividends distributed, to retain funds for existing business operations and development - The Company did not pay, declare, or propose any dividends for the years ended March 31, 2022, and 2023[146][235] Management Discussion and Analysis This section provides management's insights into the Group's operational performance, strategic initiatives, and financial position, highlighting key drivers and future outlook Chairman's Statement The Chairman's Statement highlights a revenue decline from approximately HKD 4.32 billion to HKD 4 billion and a shift from net profit to a loss attributable to owners of approximately HKD 53.1 million, while expressing confidence in the long-term growth potential of China's luxury market Performance Overview (HKD) | Indicator | Current Fiscal Year | Previous Fiscal Year | | :--- | :--- | :--- | | Revenue | Approx. 3,997,700,000 | Approx. 4,324,500,000 | | Gross Profit | Approx. 578,100,000 | Approx. 856,400,000 | | (Loss)/Net Profit Attributable to Owners | Approx. (53,100,000) | Approx. 34,100,000 | - The report cites research from Bain, PwC, and McKinsey, forecasting that China's luxury market will gradually recover and continue to grow, reaching a market size of RMB 816 billion by 2025, accounting for approximately 25% of the global market share[120][121][122] Business Review This section reviews the performance of each business segment, including automobile distribution, non-automobile distribution, other operations, and equity investments, detailing revenue changes and key operational highlights Automobile Distribution Automobile distribution revenue decreased by 8.0% to approximately HKD 3.5 billion, with Lamborghini sales growth offset by declines in Bentley and Rolls-Royce, leading to a 42% drop in overall gross profit from car sales due to rising costs and falling average selling prices Ultra-Luxury Automobile Brand Sales Performance | Brand | Current Fiscal Year Sales Revenue (HKD) | Year-on-Year Change | Sales Volume (Units) | Year-on-Year Change | | :--- | :--- | :--- | :--- | :--- | | Lamborghini | Approx. 408 million | +10.6% | 111 | +19.4% | | Bentley | Approx. 1.587 billion | -7.0% | 455 | +2.9% | | Rolls-Royce | Approx. 1.409 billion | -13.8% | 202 | -10.2% | - After-sales service revenue increased by approximately 2.6%, with gross profit margin significantly rising from 33.4% to 50.8%[127] Non-Automobile Distribution Non-automobile distribution revenue decreased by 3.5% to approximately HKD 422 million, with gross profit margin falling from 30.3% to 24.1% primarily due to increased inventory write-downs of approximately HKD 28 million, while Bang & Olufsen was the top contributor - Non-automobile distribution segment sales revenue decreased by 3.5% from approximately HKD 437.5 million to approximately HKD 422 million[128] - Gross profit margin decreased from 30.3% to 24.1%, primarily due to increased inventory write-downs[156] - To expand its business, the Group collaborated with Chuanjiu Group to produce its own brand, "Longquan 1979"[157] Other Businesses Other businesses revenue decreased by 10.2% to approximately HKD 78 million, with property management revenue down 6.3% due to reduced sub-lease income, while film and TV investment generated no revenue and faced legal issues, and lending interest income declined with ongoing default lawsuits - Property management business revenue decreased by 6.3% to approximately HKD 76.1 million, with impairment provisions made for overdue sub-lease receivables[132] - Investment in film and television programs generated no revenue this year, and legal proceedings have commenced due to the producer's failure to repay[159] - Lending business interest income was approximately HKD 1.9 million (last year: HKD 5.7 million), with both loans in default and subject to legal proceedings[160] Equity Investments The Group's 11.45% stake in B&O saw its share price drop by approximately 49.8%, significantly reducing the investment's book value with no dividends received, while the acquisition of a 2.97% stake in New Idea Group is seen as an opportunity to expand into high-end cigar and wine lounge club businesses - The Group holds 14,059,347 B&O shares, representing approximately 11.45% of its total issued shares[136] - B&O's share price decreased from DKK 19.35 to DKK 9.72 per share, a decline of approximately 49.8%[194] - The Group acquired 2,670,000 shares in New Idea Group, representing approximately 2.97% of its shareholding[195][164] Recent Developments and Prospects The Group maintains a cautious outlook, expecting stable automobile sales but facing downward pressure on profitability, a moderate decline in B&O product sales, continued inventory reduction in other non-automobile distribution, ongoing challenges in property management, and no new expansion or investment plans for lending and film businesses - The automobile business faces challenges from global economic uncertainty and a slower-than-expected economic recovery in China, with anticipated downward pressure on profitability[140] - In non-automobile distribution, B&O product sales are expected to decline moderately, while the watches, jewelry, and fine wine businesses will continue to seek opportunities to reduce inventory[197] - The property management business is expected to remain challenging; there are no new expansion or investment plans for the lending and film businesses in the next fiscal year[167] Financial Review This fiscal year saw revenue decline by 7.6% to HKD 3.998 billion due to exchange rate fluctuations and pandemic-affected auto sales, gross profit fell by 32.5% with margin dropping to 14.5%, finance costs rose by 32.5%, impairment losses were recorded on receivables, inventory turnover days increased to 139, and the gearing ratio rose to 45.2% Financial Metrics Changes | Indicator | 2023 Fiscal Year | 2022 Fiscal Year | Change | | :--- | :--- | :--- | :--- | | Revenue | HKD 3.998 billion | HKD 4.325 billion | -7.6% | | Gross Profit | HKD 578 million | HKD 856 million | -32.5% | | Gross Profit Margin | 14.5% | 19.8% | -5.3pp | | Finance Costs | HKD 96.3 million | HKD 72.6 million | +32.5% | | Inventory Turnover Days | 139 days | 109 days | +30 days | | Gearing Ratio | 45.2% | 39.4% | +5.8pp | - Impairment losses of approximately HKD 12.7 million were recorded on loans and interest receivable, and approximately HKD 5.9 million on trade receivables[171][174] - As of March 31, 2023, the Group had pledged assets totaling approximately HKD 1.67 billion to secure bank financing[221] Significant Events This section details key corporate actions and events, including a significant acquisition, ongoing legal proceedings due to loan defaults, and the termination of a proposed share placement Significant Acquisition In January 2023, the Group acquired an additional 26.1% equity interest in Beijing Wenfuxintiandi Property Co., Ltd. for RMB 81.56 million, increasing its stake to 96.5% in the company whose primary asset is a property in Chaoyang District, Beijing - The Group's indirect wholly-owned subsidiary agreed to acquire a 26.1% equity interest in Beijing Wenfuxintiandi Property Co., Ltd. for a consideration of RMB 81.56 million[223] - Upon completion of the acquisition, the Group's shareholding in the target company increased to 96.5%[252] Borrower Default on Loan Agreements Borrowers of two loans, totaling HKD 58 million and HKD 32 million respectively, defaulted on principal and interest repayments, leading the Group to initiate legal proceedings against both borrowers and their guarantors, with one case restarting after a failed settlement and the other proceeding to judgment enforcement - For the first loan of HKD 58 million, the borrower failed to repay on the due date; although a settlement was reached, legal proceedings have been re-initiated due to non-fulfillment by the counterparty[225][256] - For the second loan of HKD 32 million, the borrower failed to repay on the due date; the Group has obtained a judgment against the borrower and guarantor and is currently enforcing it[258][230] Proposed Placing of New Shares and Its Termination The company entered a placing agreement in September 2022 to place up to 538 million new shares, aiming to raise approximately HKD 49.1 million net, but the placing was terminated on October 19, 2022, by mutual agreement due to a key placee requiring more time for legal advice - The Company originally planned to place up to 538 million new shares at HKD 0.093 per share, with an expected net proceeds of approximately HKD 49.1 million[232] - The Company and the placing agent mutually agreed to terminate the placing due to a key placee requiring more time and the uncertainty of completion time[233] Corporate Governance and Other Information This section outlines the Group's adherence to corporate governance standards, including a noted deviation regarding the Chairman and CEO roles, and provides details on the upcoming Annual General Meeting Corporate Governance Practices The Group is committed to high corporate governance standards, complying with the Listing Rules' Corporate Governance Code during the reporting year, with the only deviation being Mr. Zheng Haojiang's dual role as Chairman and CEO, which the Board believes enhances decision-making efficiency - The Group has complied with the Corporate Governance Code throughout the year ended March 31, 2023, with the exception of Code Provision C.2.1[267] - Mr. Zheng Haojiang serves concurrently as the Chairman of the Board and Chief Executive Officer, an arrangement the Board believes ensures consistent leadership and decision-making efficiency, and will be reviewed periodically[237] Annual General Meeting and Closure of Register of Members The upcoming Annual General Meeting is scheduled for September 5, 2023, at 4:30 PM, with the register of members to be closed from August 31 to September 5, 2023, to determine eligibility for attendance and voting - The Annual General Meeting is scheduled for September 5, 2023, at 4:30 PM[1] - The register of members will be closed from August 31 to September 5, 2023 (both dates inclusive)[2]