Financial Performance - The company's revenue for the year was approximately HKD 19.5 million, a decrease of about 46.5% compared to HKD 36.5 million for the fiscal year ending March 31, 2023[16]. - The company reported an improved loss of HKD 91.2 million for the year, compared to a loss of approximately HKD 332.9 million in the previous fiscal year[16]. - The environmental consulting services segment contributed approximately HKD 19.5 million in revenue, down about 43.8% from HKD 34.7 million in the previous fiscal year[26]. - Sales in the health products segment recorded approximately HKD 20,000, a significant decline of about 98.8% from HKD 1.6 million in the previous fiscal year[28]. - The group's revenue for the year was approximately HKD 19.5 million, a decrease of about 46.5% compared to HKD 36.5 million in the fiscal year 2023[57]. - The group recorded a sales cost of approximately HKD 9.6 million, a decrease of about 61.2% from HKD 24.8 million in the fiscal year 2023, primarily due to a reduction in business scale[60]. - The group's gross profit decreased by approximately 15.0% to HKD 9.9 million from HKD 11.6 million in the fiscal year 2023, attributed to a reduction in business scale without a corresponding decrease in labor costs[63]. - The gross profit margin increased from approximately 31.9% in the fiscal year 2023 to about 50.7% in the current year, mainly due to a decrease in sales costs[63]. - The company recorded a net loss of approximately HKD 91.2 million for the year, an improvement from a loss of HKD 332.9 million in the previous fiscal year[70]. - The expected credit loss provision net amount for the year was approximately HKD 9.3 million, with accounts receivable and other receivables contributing about HKD 7.1 million and HKD 2.2 million, respectively, accounting for 76.2% and 23.8% of the total expected credit loss provision[65]. - The group recorded a cumulative expected credit loss provision of approximately HKD 109 million for loans and other receivables under the financial services segment[55]. Operational Challenges - The company experienced a challenging fiscal year due to the lingering effects of the COVID-19 pandemic, which led to continued contraction in various industries, including environmental consulting services[15]. - The company faced operational disruptions as two executive directors were taken by the Shanxi Provincial Commission for Discipline Inspection, impacting business development efforts[15]. - The overall economic environment remains challenging, but the company is committed to maintaining stable revenue sources while reducing operational costs[25]. - The publishing, procurement, and distribution of books have been suspended due to tight cash flow and unfavorable industry conditions, with significant receivables from downstream distributors[29]. - The financing leasing business has been on hold, with plans to resume operations in compliance with new regulations issued by the National Financial Supervisory Administration[31]. - Other financial services, including currency lending and P2P operations, have been permanently ceased due to deteriorating financial conditions of various businesses exacerbated by the COVID-19 pandemic[32]. Future Plans and Strategies - The company plans to prudently assess industry prospects and actively explore new business growth points to improve operational performance in the upcoming fiscal year[16]. - The health products market is expected to grow significantly due to rising disposable income and increased public awareness of health, despite current challenges[24]. - The company is focusing on adjusting raw material sources and improving processing technology to better meet market demands[28]. - The environmental consulting services industry is anticipated to benefit from increased government investment and supportive policies aimed at environmental protection and sustainable development[21]. - The company aims to expand its product offerings to cater to the younger generation's growing interest in health and dietary supplements[28]. - The company plans to launch new health products, including Japanese natto kinase supplements, to expand its product portfolio and attract demand from the younger generation in China[74]. - The company aims to enhance its revenue drivers and overall financial performance amid global political and economic instability[74]. Governance and Compliance - The company is committed to adhering to the GEM listing rules and ensuring the accuracy and completeness of the information provided[8]. - The company has established a dedicated audit committee to oversee financial reporting and compliance[118]. - The board consists of six directors, including one executive director and three independent non-executive directors, ensuring a balance of power and oversight[130]. - The company faced governance challenges due to the resignation of two executive directors in June 2023, which necessitated interim leadership arrangements[133]. - The board has established committees for audit, remuneration, and nominations to enhance governance and oversight[130]. - The company has taken corrective actions to address governance code deviations, including clarifying the roles of the chairman and CEO[135]. - The board is committed to ensuring that independent non-executive directors provide independent opinions and are evaluated annually for their independence[133]. - The company emphasizes maintaining high standards of business ethics and corporate governance as a key objective[123]. - The company has adhered to all applicable provisions of the corporate governance code as outlined in the GEM Listing Rules[124]. Employee and Management Practices - The company emphasizes employee training and development, covering topics such as industry advancements and compliance[107]. - The management team is focused on mitigating business risks by monitoring market trends and employee retention strategies[100]. - The company aims to attract and retain key personnel by offering competitive rewards and ensuring a conducive work environment[100]. - The company has established a clear framework for evaluating board candidates, ensuring they possess relevant business, financial, and management skills[171]. - The company is committed to maintaining gender diversity and equality across its workforce and aims to achieve gender balance in senior management within the next year[164]. - The company has implemented measures to ensure timely and accurate information is provided to all directors for informed decision-making[139]. Financial Position and Liquidity - Current liabilities exceeded current assets by approximately HKD 452,280,000 as of March 31, 2024[192]. - The company has outstanding borrowings of approximately HKD 584,634,000 as of March 31, 2024, with cash and cash equivalents of only about HKD 12,987,000[192]. - The company is taking measures to improve liquidity and financial conditions due to uncertainties regarding going concern, including potential asset impairment adjustments[196]. - The company plans to establish settlement arrangements with creditors, including offsetting loan principal based on court rulings[197]. - Legal actions will be initiated to recover receivables to improve operational cash flow and financial status[197]. - The company is seeking further financing from investors, lenders, and shareholders to enhance liquidity[197]. - Non-core businesses and/or financial assets may be sold to raise operational funds[197]. - The audit committee supports management's position and emphasizes the need to resolve uncertainties related to going concern[198].
大地国际集团(08130) - 2024 - 年度业绩