中国海洋发展(08047) - 2024 - 年度业绩

Financial Performance The group experienced significant revenue and gross profit growth, but persistent net losses and a critical decline in cash balances highlight ongoing liquidity challenges Consolidated Statement of Profit or Loss and Other Comprehensive Income The Group achieved substantial revenue and gross profit growth, improving gross margin, while narrowing its operating and net losses despite increased impairment losses on trade receivables Consolidated Statement of Profit or Loss and Other Comprehensive Income | Metric | 2024 (HKD thousands) | 2023 (HKD thousands) | YoY Change | | :--- | :--- | :--- | :--- | | Revenue | 398,173 | 225,855 | +76.3% | | Gross Profit | 45,269 | 13,787 | +228.4% | | Loss from Operations | (20,455) | (23,347) | -12.4% | | Loss for the Year | (44,024) | (50,015) | -12.0% | | Loss Attributable to Owners of the Company | (37,401) | (45,753) | -18.3% | | Basic Loss Per Share | (0.59) HK cents | (0.75) HK cents | Narrowed by 21.3% | - A net impairment loss on trade receivables of approximately HKD 32.3 million was recorded this year, compared to a reversal of HKD 1.63 million in the prior year, significantly impacting operating results[85] Consolidated Statement of Financial Position As of March 31, 2024, total assets and net assets increased, but a critical decline in bank balances and cash, coupled with high current borrowings, indicates severe liquidity pressure Consolidated Statement of Financial Position | Metric | 2024 (HKD thousands) | 2023 (HKD thousands) | | :--- | :--- | :--- | | Assets | | | | Non-current Assets | 247,525 | 301,605 | | Current Assets | 813,947 | 635,311 | | Total Assets | 1,061,472 | 936,916 | | Liabilities | | | | Current Liabilities | 490,810 | 393,918 | | Non-current Liabilities | 45,543 | 54,259 | | Total Liabilities | 536,353 | 448,177 | | Net Assets | 525,119 | 488,739 | - The Group's bank balances and cash sharply decreased from approximately HKD 4.13 million in the prior year to approximately HKD 0.243 million, a drop of over 94%[103][76] Consolidated Statement of Changes in Equity As of March 31, 2024, total equity increased, primarily driven by HKD 119 million from new share subscriptions, offsetting the annual loss and negative exchange differences - Share capital and share premium collectively increased by approximately HKD 119 million during the year due to the issuance of new shares from subscriptions[106] - Total comprehensive expense attributable to owners of the Company was HKD 73.6 million, primarily comprising loss for the year (HKD 37.4 million) and exchange differences (HKD 36.2 million)[106] Management Discussion and Analysis The Group's management discusses the financial and operational performance, liquidity, and future outlook, highlighting revenue growth, ongoing challenges in marine fishing, and strategic plans for diversification Financial Review The Group's financial performance showed revenue and gross profit growth, driven by the aquatic product supply chain business, with improved gross margin, despite increased administrative expenses due to fishing vessel depreciation Financial Review | Financial Metric | 2024 | 2023 | | :--- | :--- | :--- | | Revenue | Approx. HKD 398.2 million | Approx. HKD 225.9 million | | Gross Profit | Approx. HKD 45.3 million | Approx. HKD 13.8 million | | Gross Profit Margin | 11.4% | 6.1% | | Loss Attributable to Owners of the Company | Approx. HKD 37.4 million | Approx. HKD 45.8 million | - Administrative expenses increased from HKD 43.9 million last year to HKD 53.2 million, primarily due to an increase in fishing vessel depreciation from HKD 14.4 million to HKD 25.5 million[8] Operations Review The Group continues to focus on aquatic product supply chain management and upstream fishing, despite challenges in marine fishing operations due to vessel upgrades and overseas license renewal issues - Supply chain management services remain a business focus, providing intermediary services to SMEs across various industries to reduce operating costs[7] - Due to fishing vessel upgrade policies, the renewal of overseas fishing licenses is hindered, prompting management to explore other overseas fishing grounds and seek alternative procedures[7] Outlook The company plans to diversify revenue by seeking new investment and business opportunities while leveraging its deep-sea fishing expertise to enhance shareholder value - Management will closely monitor existing business performance while actively seeking other investment and business opportunities to broaden revenue streams[9] - The Group will explore further opportunities in deep-sea fishing through investments or acquisitions of promising businesses or projects, leveraging team experience to enhance shareholder value[9] Liquidity, Financial Resources and Capital Structure The Group faces extremely tight liquidity with minimal cash, relying on internal funds, share issuance, and borrowings, though its gearing ratio has decreased Liquidity, Financial Resources and Capital Structure | Metric | March 31, 2024 | March 31, 2023 | | :--- | :--- | :--- | | Total Assets | Approx. HKD 1.061 billion | Approx. HKD 937 million | | Bank Balances and Cash Equivalents | Approx. HKD 0.243 million | Approx. HKD 4.129 million | | Total Bank Borrowings | HKD 51.86 million | HKD 61.67 million | | Gearing Ratio | 4.9% | 6.6% | - The Group primarily uses its own working capital, proceeds from share issuance, and borrowings to fund its operations[76] Significant Events The Group lost an arbitration case against COFCO, incurring legal fees and financing restrictions, while most transactions are in HKD and RMB with no foreign exchange hedging - The arbitration ruling against COFCO was unfavorable to the company, including restrictions on future financing terms, prohibition of issuing securities below HKD 0.24 per share, and payment of approximately HKD 5 million in legal fees and interest[78] - Most of the Group's transactions are denominated in HKD and RMB, and no foreign exchange contracts or other financial derivatives are used for hedging[79] - During the year, the Group had no significant investments, major acquisitions, or disposals of subsidiaries and associated companies[80] Notes to Financial Statements This section provides detailed explanations and breakdowns of key accounting policies, financial statement line items, and significant events, offering further insights into the Group's financial position and performance Company Information and Going Concern Assessment Significant uncertainty exists regarding the Group's going concern ability due to substantial losses, low cash, and high current borrowings, though management has implemented cost control and fundraising measures - The auditor's report highlights that as of March 31, 2024, the loss attributable to owners of the Company was approximately HKD 44.02 million, cash balance was only HKD 0.243 million, and current borrowings amounted to HKD 149 million, indicating significant uncertainty that may cast substantial doubt on the Group's ability to continue as a going concern[74][108] - Management has implemented cost control measures and is actively considering fundraising activities (such as new bank loans) to improve the financial position, believing the Group has sufficient resources to continue operations[93][122][94] Segment Information The Group's revenue is entirely from supply chain management, which is profitable, while marine fishing generated no revenue and incurred losses, with most revenue and assets concentrated in China and from a single major customer Segment Information | Reportable Segment | Revenue (HKD thousands) | Segment Results (HKD thousands) | | :--- | :--- | :--- | | Supply Chain Management Services | 398,173 | 328 | | Marine Fishing Business | – | (20,828) | - Geographically, all revenue (HKD 398 million) this year was derived from customers in the Chinese market[115] - Customer concentration is very high, with revenue from the single largest customer (Customer A) amounting to HKD 365 million, accounting for 91.6% of the Group's total revenue[47][128] Key Accounting Items This section details key financial statement items, including loss before tax components, income tax credit, narrowed loss per share, and increased bad debt provisions due to longer aging trade receivables Loss Before Tax Loss before tax was HKD 44.31 million, primarily driven by cost of goods sold, depreciation, and significant impairment losses on trade receivables, while employee benefits decreased Loss Before Tax | Item | 2024 (HKD thousands) | 2023 (HKD thousands) | | :--- | :--- | :--- | | Employee Benefit Expenses | 8,278 | 9,791 | | Finance Costs | 23,851 | 23,325 | | Cost of Goods Sold | 352,904 | 212,068 | | Depreciation | 25,451 | 14,437 | | Net Impairment Loss on Trade Receivables | 32,315 | (1,634) | Income Tax The Group recorded an income tax credit this year, primarily from prior year refunds, with details on applicable tax rates and exemptions for Chinese fishing subsidiaries, subject to license renewal - This year, an income tax credit of HKD 0.285 million was recorded, primarily from Hong Kong profits tax refunds from prior years[65] - Chinese subsidiaries engaged in fishing operations are exempt from Chinese corporate income tax, but their marine fishing licenses expired on March 31, 2023, after which corporate income tax will be payable[25] Loss Per Share Basic and diluted loss per share narrowed to HKD 0.59 cents due to reduced loss attributable to owners, with no dilutive adjustment for anti-dilutive convertible bonds Loss Per Share | Metric | 2024 | 2023 | | :--- | :--- | :--- | | Loss Attributable to Owners of the Company (HKD thousands) | (37,401) | (45,753) | | Weighted Average Number of Ordinary Shares in Issue | 6,361,798,256 | 6,064,478,097 | - As the effect of outstanding convertible bonds was anti-dilutive, the diluted loss per share was the same as the basic loss per share[29] Accounts and Other Receivables Net trade receivables increased, with 45% over one year old, indicating high collection risk, and the year-end loss allowance balance also increased Aging Analysis of Trade Receivables (Net of Loss Allowance) | Aging | 2024 (HKD thousands) | 2023 (HKD thousands) | | :--- | :--- | :--- | | Under 90 days | 109,765 | 3,539 | | 91 to 180 days | 68,303 | 15,530 | | 181 to 270 days | 2,154 | 32,228 | | 271 to 365 days | – | 47,162 | | Over 1 year | 148,344 | 202,195 | | Total | 328,566 | 300,654 | - Advances to suppliers significantly increased from HKD 356 million to HKD 513 million to secure aquatic product supply[2][8] Accounts and Other Payables Total accounts and other payables increased significantly, with trade payables surging, and most new payables having an aging profile within 180 days Aging Analysis of Trade Payables | Aging | 2024 (HKD thousands) | 2023 (HKD thousands) | | :--- | :--- | :--- | | 1 to 180 days | 76,629 | – | | Over 1 year | 21,942 | 23,189 | | Total | 98,571 | 23,189 | Corporate Governance and Other Information This section outlines the Group's adherence to corporate governance practices, the role of the audit committee and auditor, and details regarding employee numbers and remuneration policies Corporate Governance Practices The company confirms compliance with the GEM Listing Rules' Corporate Governance Code and its own code of conduct for directors' securities transactions throughout the year - The company has adopted and complied with the Corporate Governance Code as set out in Appendix 15 to the GEM Listing Rules throughout the year[21] - The company has adopted a code of conduct for directors' securities transactions, and all directors confirmed compliance with it throughout the year[51][68] Audit Committee and Auditor The Audit Committee reviewed the financial statements, and the auditor issued an unmodified opinion with an "Emphasis of Matter" paragraph highlighting significant uncertainty related to going concern - The Audit Committee, comprising four independent non-executive directors, chaired by Mr. Jin Xiaoxian, has reviewed this year's financial statements[117][53] - The auditor issued an unmodified opinion but added a paragraph on "Material Uncertainty Related to Going Concern," noting that the Group's losses, low cash levels, and high current liabilities may cast significant doubt on its ability to continue as a going concern[74][54][118] - The auditor has agreed that the financial figures contained in this results announcement are consistent with the Group's draft consolidated financial statements[75][131] Employee and Remuneration Policy As of March 31, 2024, the Group's employee count and staff costs decreased, with remuneration based on market levels and performance, including MPF and social insurance benefits Employee and Remuneration Policy | Metric | 2024 | 2023 | | :--- | :--- | :--- | | Number of Employees (including directors) | 36 | 43 | | Total Staff Costs (excluding directors' emoluments) | Approx. HKD 4.7 million | Approx. HKD 6 million |