中国海洋发展(08047) - 2024 - 年度业绩

Financial Summary This section provides an overview of the Group's financial performance and position for the year Consolidated Statement of Profit or Loss and Other Comprehensive Income For the year, the Group's revenue increased by 76.3% to approximately HKD 398 million, with gross profit surging by 228.4% to HKD 45.27 million, while loss for the year narrowed to HKD 44.02 million, and loss attributable to owners of the Company was HKD 37.40 million, resulting in a basic and diluted loss per share of 0.59 HK cents Consolidated Statement of Profit or Loss Key Data (For the year ended March 31) | Indicator | 2024 (HKD Thousands) | 2023 (HKD Thousands) | Year-on-Year Change | | :--- | :--- | :--- | :--- | | Revenue from contracts with customers | 398,173 | 225,855 | +76.3% | | Gross Profit | 45,269 | 13,787 | +228.4% | | Loss from operations | (20,455) | (23,347) | Loss narrowed | | Loss for the year | (44,024) | (50,015) | Loss narrowed | | Loss attributable to owners of the Company | (37,401) | (45,753) | Loss narrowed | | Basic and diluted loss per share | (0.59) Cents | (0.75) Cents | Loss narrowed | - Administrative expenses increased from approximately HKD 43.9 million last year to approximately HKD 53.2 million, primarily due to increased depreciation of fishing vessels[12][54] Consolidated Statement of Financial Position As at March 31, 2024, the Group's total assets increased to approximately HKD 1.061 billion, and total liabilities rose to HKD 536 million, with net current assets increasing from HKD 241 million to HKD 323 million, though bank balances and cash significantly decreased to only approximately HKD 243 thousand from HKD 4.129 million in the prior year Consolidated Statement of Financial Position Summary (As at March 31) | Indicator | 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 and Equity | | | | 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 | | Equity attributable to owners of the Company | 485,539 | 440,138 | - Bank balances and cash significantly decreased from approximately HKD 4.129 million to approximately HKD 243 thousand[14][79] Consolidated Statement of Changes in Equity As at March 31, 2024, equity attributable to owners of the Company increased from HKD 440 million to HKD 486 million, primarily due to HKD 119 million raised from share subscriptions during the year, which partially offset the negative impact of loss for the year and exchange differences - During the year, the issuance of shares by subscription brought in HKD 119 million in capital, which was the main reason for the increase in equity[82] - The loss attributable to owners of the Company for the year was HKD 37.40 million, while exchange differences on consolidation resulted in a HKD 36.20 million reduction in equity[82] Notes to Financial Statements This section provides detailed explanations and disclosures supporting the financial statements Company Information and Going Concern Assessment The Company primarily engages in investment holding, with its subsidiaries focusing on supply chain management services and marine fishing; the auditor's report highlights significant uncertainty regarding the Group's going concern ability due to losses, extremely low cash balances, and substantial current borrowings, though management has formulated cost control and financing plans to address these issues and prepared financial statements on a going concern basis - The Company's principal business is investment holding, with subsidiaries engaged in supply chain management services and marine fishing[64] - The auditor noted that as at March 31, 2024, the Group recorded a loss attributable to owners of approximately HKD 44.02 million, with cash and cash equivalents of only HKD 243 thousand and current borrowings of up to HKD 149 million, which raise significant doubt about the Group's ability to continue as a going concern[48][65] - To improve its financial position, management has implemented cost control measures and is actively considering fundraising activities, such as new bank loans, to raise fresh capital[66][85] Segment Information The Group's operations are divided into two segments: supply chain management services and marine fishing; all revenue for the year, approximately HKD 398 million, came from supply chain management services, which also accounts for the vast majority of the Group's total assets, while the marine fishing business generated no revenue and recorded a segment loss of approximately HKD 20.83 million, mainly due to asset depreciation and other expenses Segment Results Summary (2024) | Segment | Revenue (HKD Thousands) | Segment Results (HKD Thousands) | Segment Assets (HKD Thousands) | | :--- | :--- | :--- | :--- | | Supply Chain Management Services | 398,173 | 328 | 783,480 | | Marine Fishing | – | (20,828) | 251,529 | | Consolidated | 398,173 | (20,500) | 1,035,009 | - Depreciation expense for the marine fishing segment was HKD 25.44 million for the year, which is one of the primary reasons for its loss[73] - The Group's business is highly concentrated in the Chinese market, which contributed all of its revenue, and customer concentration is high, with one customer contributing over 10% of total revenue, amounting to HKD 365 million[74][36][75] Revenue and Other Income For the year, the Group's total revenue and other income amounted to approximately HKD 405 million, comprising HKD 398 million from contracts with customers (primarily supply chain management services) and HKD 6.88 million from other income (mainly government grants and sundry income) Revenue and Other Income Details | Item | 2024 (HKD Thousands) | 2023 (HKD Thousands) | | :--- | :--- | :--- | | Revenue from contracts with customers | 398,173 | 225,855 | | Other income | 6,881 | 4,266 | | Total Revenue and Other Income | 405,054 | 230,121 | Loss Before Tax The loss before tax for the year was HKD 44.31 million, a narrowing from HKD 50.01 million last year, with major expense items including HKD 353 million for cost of goods sold, HKD 25.45 million for depreciation, HKD 23.85 million for finance costs, and HKD 32.32 million for impairment loss on trade receivables - Finance costs for the year were HKD 23.85 million, a slight increase from HKD 23.33 million last year[109] - Impairment loss on trade receivables shifted from a reversal of HKD 1.63 million last year to a recognized loss of HKD 32.32 million this year, significantly impacting the loss[109][54] - Employee benefit expenses (including directors' emoluments) decreased from HKD 9.79 million last year to HKD 8.28 million[109] Income Tax For the year, the Group recorded an income tax credit of HKD 285 thousand, compared to an expense of HKD 8 thousand last year, primarily from a refund of Hong Kong Profits Tax for prior years, with no taxable profits generated in China, Mozambique, or Cambodia during the reporting period, thus no related corporate income tax was provided - The total income tax credit for the year was HKD 285 thousand, mainly from a refund of Hong Kong Profits Tax for prior years[112] - The statutory corporate income tax rate in China is 25%, but enterprises engaged in fishing are exempt, while Hong Kong Profits Tax adopts a two-tiered system with rates of 8.25% and 16.5%[40][97][110] Loss Per Share For the year ended March 31, 2024, basic and diluted loss per share narrowed to 0.59 HK cents from 0.75 HK cents in the prior year, primarily due to a decrease in loss attributable to owners of the Company, with diluted loss per share being the same as basic loss per share due to the anti-dilutive effect of convertible bonds Loss Per Share Calculation | Indicator | 2024 | 2023 | | :--- | :--- | :--- | | Loss attributable to owners of the Company (HKD Thousands) | (37,401) | (45,753) | | Weighted average number of ordinary shares in issue (Basic) | 6,361,798,256 | 6,064,478,097 | | Weighted average number of ordinary shares in issue (Diluted) | 6,365,971,557 | 6,095,650,097 | Trade and Other Receivables As at March 31, 2024, net trade receivables increased to HKD 329 million from HKD 301 million last year, with a significant portion of HKD 148 million being overdue for more than one year, and prepayments to suppliers substantially rose to HKD 513 million, reflecting deposits paid to secure aquatic product supply Trade and Other Receivables Summary (As at March 31) | Item | 2024 (HKD Thousands) | 2023 (HKD Thousands) | | :--- | :--- | :--- | | Net trade receivables | 328,566 | 300,654 | | Prepayments to suppliers | 513,314 | 355,944 | | Other receivables, net | 491,441 | 351,671 | - Trade receivables aging analysis shows that amounts less than 90 days are HKD 110 million, while amounts over 1 year are HKD 148 million, indicating certain collection risks[4] Management Discussion and Analysis This section provides management's perspective on the Group's performance, financial condition, and future outlook Operating and Financial Review For the year, the Group's core business was aquatic product supply chain management services, which drove total revenue to HKD 398 million and gross profit to HKD 45.3 million, improving the gross profit margin from 6.1% to 11.4%; the fishing business generated no revenue due to vessel license issues, and despite revenue and gross profit growth, increased administrative expenses from vessel depreciation led to an overall loss for the Group, though the loss narrowed compared to the prior year - Supply chain management services are the business focus, with a concentration on aquatic products this year and vertical integration with fishing subsidiaries[9] Financial Performance Summary | Indicator | 2024 | 2023 | | :--- | :--- | :--- | | Revenue | Approx. HKD 398 million | Approx. HKD 226 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 | - The fishing business encountered difficulties in renewing overseas government fishing licenses due to the need to update and replace 10-year-old fishing vessels, preventing operations from restarting; management is seeking other overseas fishing grounds and alternative solutions[9] Outlook Management will closely monitor and review existing business performance to adapt to the changing business environment, while continuing to actively seek promising investment and business opportunities, including further exploring the Group's experienced deep-sea fishing business, to broaden revenue streams and create shareholder value - Management will continue to monitor and review the overall operational and financial performance of the Group's businesses[13] - The Company will actively seek other investment and business opportunities to broaden its revenue streams and may enhance shareholder value through investments or acquisitions[13] - The Group will further explore opportunities in the deep-sea fishing business[13] Liquidity, Financial Resources and Capital Structure As at March 31, 2024, the Group's total assets were approximately HKD 1.061 billion, but bank balances and cash equivalents were only HKD 243 thousand; the Group primarily relies on its own working capital, proceeds from share issuance, and borrowings to fund operations, with the gearing ratio (total bank borrowings/total assets) decreasing from 6.6% last year to 4.9%, indicating a lower proportion of bank borrowings relative to total assets Financial Position Summary (As at March 31) | Indicator | 2024 | 2023 | | :--- | :--- | :--- | | Total Assets | Approx. HKD 1.061 billion | Approx. HKD 937 million | | Bank Balances and Cash | Approx. HKD 243 thousand | Approx. HKD 4.129 million | | Total Bank Borrowings | Approx. HKD 51.86 million | Approx. HKD 61.67 million | | Gearing Ratio | Approx. 4.9% | Approx. 6.6% | - The Group has been granted general bank facilities of RMB 51 million, of which RMB 48.23 million has been utilized[14] Significant Litigation and Risk Management In the arbitration case with COFCO Capital, the Company was ruled to have breached a subscription agreement, requiring it to pay approximately HKD 5 million in legal fees and facing certain financing restrictions; regarding risk management, the Group conducts most transactions in HKD and RMB and adopts a prudent inventory policy to mitigate foreign exchange risk, currently holding no hedging financial instruments - The arbitration ruling with COFCO requires the Company to pay approximately HKD 5 million in legal fees and restricts the Company's future financing activities, such as issuing new shares or bonds below specific conditions[17] - The Group conducts most transactions in HKD and RMB, and bank deposits are also held in local currencies to mitigate foreign exchange risk; as at the end of the reporting period, no foreign exchange hedging instruments were held[51] - Aside from the disclosed information, there were no other significant investments, acquisitions, or disposals during the year[18] Employees and Remuneration Policy As at March 31, 2024, the Group's number of employees decreased from 43 to 36, and total annual staff costs (excluding directors' emoluments) also fell from HKD 6 million to HKD 4.7 million; remuneration policy refers to market levels and individual performance, and provides statutory benefits Employees and Remuneration Overview | Indicator | 2024 | 2023 | | :--- | :--- | :--- | | Number of Employees (including directors) | 36 | 43 | | Total Staff Costs (excluding directors' emoluments) | Approx. HKD 4.7 million | Approx. HKD 6 million | Corporate Governance and Audit This section details the Company's adherence to corporate governance principles and the auditor's findings Corporate Governance and Directors' Dealings During the reporting period, the Company adopted and complied with the Corporate Governance Code set out in Appendix 15 to the GEM Listing Rules, and also adopted a code of conduct regarding directors' securities transactions, with all directors confirming compliance with the code - The Company complied with the code provisions of the Corporate Governance Code throughout the year[23] - All directors confirmed compliance with the code of conduct regarding securities transactions throughout the year[24] Audit Committee and Independent Auditor's Report The Audit Committee, comprising four independent non-executive directors, reviewed the financial statements for the year; the independent auditor issued an unmodified opinion, deeming the financial statements to fairly present the Group's financial position, but included an "Emphasis of Matter" paragraph regarding significant uncertainty related to going concern, noting the Group's losses, extremely low cash levels, and high current liabilities, without modifying the audit opinion - The Audit Committee has reviewed the Group's financial statements for the year and considers them to be adequately disclosed and prepared in accordance with applicable standards[27] - The independent auditor believes that the financial statements fairly and truly reflect the Group's financial position and performance[43] - The auditor specifically highlighted "material uncertainty related to going concern" due to the Group's recorded loss, extremely low cash balance (HKD 243 thousand), and high current borrowings (HKD 149 million), which may cast significant doubt on the Group's ability to continue as a going concern; this was an emphasis of matter and did not lead to a modification of the audit opinion[44][48]