Revenue and Profitability - The Group's revenue for the Reporting Period was approximately HK$2,406,000 from the e-commerce live streaming and promotion segment, with a gross profit margin of approximately 87.3%[29]. - The Group recorded a revenue decrease of approximately HK$26,793,000 or 8.5%, totaling approximately HK$288,654,000 for the year ended March 31, 2024, compared to HK$315,447,000 for the year ended March 31, 2023[48]. - Revenue from foundation construction works contributed approximately 76.1% to the total revenue during the Reporting Period, down from approximately 80.9% in the previous year[52]. - Revenue from ground investigation services accounted for approximately 22.7% of total revenue, an increase from approximately 18.3% in the previous year[52]. - The gross profit from the e-commerce live streaming and promotion segment was approximately HK$2,406,000, with a gross profit margin of 87.3%[32]. - The Group's overall gross profit margin during the Reporting Period was approximately 18.4% (YR2023: approximately 17.1%) despite a decrease in gross profit from approximately HK$53,789,000 to approximately HK$53,073,000[58]. - Gross profit for the year was HK$53.07 million, slightly down from HK$53.79 million, indicating a gross margin of approximately 18.4%[163]. Expenses and Losses - The Group's general and administrative expenses and impairment losses decreased by approximately 20.7% to HK$65,326,000 compared to HK$82,350,000 for the year ended 31 March 2023[31][33]. - The impairment losses on financial and contract assets decreased by approximately HK$3,887,000, from HK$26,786,000 in the previous year[31][33]. - The Group recorded a net loss of approximately HK$20,622,000 for the Reporting Period, compared to a net loss of approximately HK$46,996,000 for the year ended 31 March 2023[87]. - Loss for the year was HK$20.10 million, a significant improvement compared to a loss of HK$46.99 million in the previous year, representing a reduction of 57.3%[163]. - General and administrative expenses increased to HK$61.44 million from HK$55.56 million, reflecting an increase of 10.5%[163]. Financial Position and Cash Flow - As of March 31, 2024, the Group had cash and bank balances of approximately HK$138,286,000, an increase of approximately HK$21,808,000 from HK$116,478,000 as of March 31, 2023[120]. - The net cash generated from operating activities during the Reporting Period amounted to approximately HK$42,295,000, primarily from foundation construction works and ground investigation services[120]. - The net cash used in financing activities was approximately HK$20,358,000, mainly due to repayments of HK$10,000,000 to a related company and approximately HK$8,678,000 to a director of a subsidiary[120]. - Cash and cash equivalents at the end of the year reached HKD 138,285,822, up from HKD 116,478,368, marking an increase of 18.7%[199]. - The total cash flow from operating activities reflects a strong operational performance, contributing positively to the overall cash position[199]. Strategic Initiatives and Future Plans - The Group has expanded its business into e-commerce live streaming and promotion, indicating a strategic shift towards digital platforms[29]. - The Group plans to expand its e-commerce live streaming and promotion business, currently operating 4 broadcasting rooms and employing around 30 live streamers[48]. - The Group aims to seek cooperation and investment opportunities with high-quality companies in emerging industries to diversify and expand its business[48]. - The Group's future strategy will depend on the recovery of the economy, with a cautious approach to tendering potential projects[48]. - The Group will explore resuming the trading business with a broader focus on general consumer products after settling outstanding trade receivables[60]. Credit and Loan Management - The company adopted a prudent approach to measure the expected credit loss (ECL) related to the receivable[71]. - The loan application process includes thorough evaluations of the borrower's financial standing, legal history, collateral, and repayment ability to mitigate default risks[84]. - The Credit Committee, consisting of Mr. Yan Shuai and Mr. Chong Ka Yee, oversees all credit-related matters and must approve all loans[85]. - The Group emphasizes ongoing monitoring of loan recoverability and may revise repayment terms or initiate legal proceedings to mitigate credit losses[85]. - The expected credit loss provision for Loan receivable A was approximately HK$7,964,000 with a gross carrying amount of approximately HK$15,054,000, all outstanding balances have been settled during the reporting period[78]. Share Capital and Financing Activities - The Board did not recommend the payment of a final dividend for the Reporting Period (YR2023: nil) [89]. - Net proceeds from the placing of 160,000,000 new ordinary shares raised approximately HK$134.0 million [89]. - The company plans to utilize part of the net proceeds for investment, financing, and lending services, with HK$134.0 million allocated [89]. - The Group has issued a demand letter against the Fund, the Manager, and the Investment Manager, considering legal actions to recover the outstanding redemption amount[103]. - The Group has maintained a healthy liquidity position throughout the Reporting Period by adopting a prudent financial management approach[120]. Risk Management - The Group's key risk exposures include a concentrated clientele base and dependency on senior management, which may adversely affect operations and financial results[130]. - The Group has not experienced significant foreign exchange risks as most transactions are settled in Hong Kong dollars[95]. - The Group had no material contingent liabilities as of 31 March 2024 and 2023[96].
宏基集团控股(01718) - 2024 - 年度财报