Financial Performance - The Group incurred a loss of approximately HK$809 million for the Year, compared to a loss of approximately HK$208 million in 2023 [117]. - The total revenue for the year was approximately HK$228 million, a decrease of approximately HK$84 million or 27% compared to HK$312 million in the previous year [191]. - The decrease in revenue was mainly attributed to reduced sales from construction machinery and spare parts, as well as rental income from construction machinery [191]. - The revenue of the financial services business was approximately HK$7 million for the year, down from approximately HK$10 million in 2023, representing about 3% of the total revenue [162]. - The segment profit for the financial services business decreased to approximately HK$5 million from approximately HK$15 million in 2023 [162]. - The loss was mainly due to net fair value losses in financial assets at fair value through profit or loss of approximately HK$242 million, up from approximately HK$82 million in 2023 [117]. - The fair value loss on investment properties indicates a significant increase in market volatility and potential risks associated with real estate investments [120]. Assets and Liabilities - Current assets as of March 31, 2024, were approximately HK$1,265 million, down from approximately HK$1,945 million in 2023, while current liabilities decreased to approximately HK$2,214 million from HK$2,855 million [28]. - The Group's loans receivable amounted to approximately HK$47 million as of March 31, 2024, down from HK$145 million in 2023 [149]. - The carrying amount of overdue loans was approximately HK$47 million, with 10 loans supported by personal guarantees and/or secured by collaterals [155]. - The largest borrower accounted for approximately 43% of the total loans receivable, with an outstanding amount of HK$20 million [155]. Business Strategy and Operations - The Group plans to phase out the money lending business while expanding its corporate financial advisory and asset management services in the future [42]. - The Group aims to enhance its revenue stream by exploring involvement in share placement activities within its securities brokerage services business [42]. - The Group is exploring opportunities in Malaysia, which has shown strong GDP growth, indicating significant investment potential [55]. - The Group is actively seeking more business opportunities in Cambodia, leveraging its favorable investment environment and market liberalization [45]. - The Group's long-term business strategy includes diversifying into financial services, property leasing, property development, and construction machinery [159]. Risk Management - The Group's liquidity position has been maintained throughout the year, with ongoing credit assessments to reduce exposure to credit risk [33]. - The Group's exposure to foreign currency risk arises from financial instruments denominated in US$ and EUR, with management continuously monitoring this risk [32]. - The expected credit loss (ECL) rate for loans receivable ranged from 34% to 100%, significantly higher than the previous year's range of 3% to 61%, reflecting increased default risk [119]. - The company adopted HKFRS 9 for determining impairment loss allowances, considering factors such as default probability, repayment history, and macroeconomic conditions [119]. - The company has adopted a credit risk policy to manage its money lending business, including compliance with applicable laws and credit assessments [155]. Corporate Governance - The Group is committed to maintaining sound corporate governance practices consistent with the Corporate Governance Code [62]. - The Board is collectively responsible for the long-term success of the Group, focusing on leadership, strategic planning, risk management, and financial performance [67]. - The Audit Committee oversees risk management and internal control systems, ensuring the effectiveness of the internal audit program [70]. - The Remuneration Committee reviews and recommends remuneration policies for Directors and senior management, ensuring alignment with company performance [70]. - The Nomination Committee assesses the independence of independent non-executive Directors and recommends appointments to the Board [70]. Market Conditions - The global economic environment faced challenges including high inflation and geopolitical tensions, impacting the company's operations and strategic decisions [128]. - The global economic environment remains fragile, influenced by geopolitical tensions and high inflation, impacting the Group's operations [160]. - The company actively explored new development opportunities despite the complicated external environment [128]. Construction Machinery and Rental Income - The Group maintained approximately 171 units of construction machinery in its rental fleet during the year [137]. - Sales of construction machinery and spare parts decreased, primarily due to reduced demand for new cranes manufactured in Japan [137]. - Rental income from construction machinery declined, attributed to the completion of major construction projects such as the Hong Kong International Airport 3rd runway [137]. - Rental income from construction machinery fell to approximately HK$136 million this year from approximately HK$160 million in 2023, with occupancy rates decreasing to 85% from 90% due to the completion of major construction projects [200].
信铭生命科技(00474) - 2024 - 年度财报