Financial Performance - The Group's revenue decreased to approximately HK$6.6 million for the Financial Year, down from approximately HK$8.1 million in the Previous Financial Year, reflecting a decline of about 18.5%[12] - Profit attributable to the owners of the Company for the Financial Year was approximately HK$103.4 million, compared to a loss of approximately HK$245.7 million in the Previous Financial Year, marking a significant turnaround[12] - The gain on modification of convertible bonds amounted to HK$330.2 million, contributing to the profit for the Financial Year[12] - Profit before income tax for 2024 is HK$98,707,000, a significant improvement from a loss of HK$254,671,000 in 2023[47] - The tax expense calculated at the domestic income tax rate of 16.5% for 2024 is HK$16,287,000, compared to a tax loss of HK$42,021,000 in 2023[47] - The profit attributable to owners of the Company for the year 2024 is HK$103,403,000, compared to a loss of HK$245,698,000 in 2023, representing a significant turnaround[106] Product Development - The launch of the oral insulin product has been postponed to the first quarter of 2026 due to delays in sample drug production[12] - The Group expects to obtain regulatory approvals and launch the product in Q1 2026, assuming no unforeseen circumstances[33] - The Group aims to commercialize the Product by the first quarter of 2026, with close collaboration with the CRO and strengthened project team oversight[98] - Clinical Trial testing for the Product commenced in July 2020, with improvements noted in the progress since the last annual report[97] - The Group's research and development efforts are focused on a product expected to be the first commercially available oral insulin, with a ten-year cash flow forecast period[141] Financial Position - Total borrowings of the Group as at 31 March 2024 were approximately HK$1,054.2 million, down from approximately HK$1,236.5 million as at 31 March 2023[76] - The Group's current assets to current liabilities ratio improved to 0.03 as at 31 March 2024 from 0.01 as at 31 March 2023[77] - The gearing ratio decreased to 0.77 as at 31 March 2024 from 0.90 as at 31 March 2023, based on total liabilities of approximately HK$1,063.6 million and total assets of approximately HK$1,383.0 million[77] - As of March 31, 2024, the Group's bank and cash balances were approximately HK$3.1 million, an increase from approximately HK$1.3 million as of March 31, 2023[143] Taxation - No Hong Kong Profits Tax and PRC Enterprise Income Tax were incurred for the year ended March 31, 2024[72] - The tax effect of income not taxable for tax purposes in 2024 is HK$54,500,000, compared to HK$30,000 in 2023[47] - Current and deferred tax are recognized in profit or loss, except when related to items recognized in other comprehensive income or directly in equity[29] - The Group did not recognize any deferred tax asset related to tax losses due to the unpredictability of future profit streams[155] Employee Compensation - Total remuneration for directors for the year ended 31 March 2024 was HK$2,378,000, an increase from HK$2,288,000 for the year ended 31 March 2023[51] - Total staff costs, including Directors' remuneration, amounted to approximately HK$6.1 million for the Financial Year, down from approximately HK$6.3 million in the previous Financial Year[81] - The remuneration of employees and Directors is aligned with market standards and commensurate with their responsibilities[81] Corporate Governance - The Group has critical judgments that significantly affect amounts recognized in the consolidated financial statements[32] - The Group's accounting policies require directors to make judgments and estimates about the carrying amounts of assets and liabilities[32] - The management team includes professionals with extensive experience in administrative management and investment, particularly in the field of genetic engineering[194][195] Segment Information - The Group has two reportable segments: trading of beauty products and research, development, and commercialization of the oral insulin product[35] - The Group's trading segment revenues and profit margins have remained relatively stable, with expectations for gradual recovery in trading business[96] - Over 90% of the Group's non-current assets are located in China, indicating a concentrated market presence[40] Debt and Financing - The liability component of Convertible Bonds as of March 31, 2024, totaled HK$911,150,000, with HK$255,804,000 classified as current liabilities[157] - The effective interest rates for all liability components of convertible bonds ranged from 21.23% to 35% per annum in 2024, compared to 23.44% to 27.28% per annum in 2023[179] - The company reported a loan from a substantial shareholder, Dr. Mao, amounting to HK$62,300,000 in 2024, an increase from HK$51,000,000 in 2023[174] Collaboration and Partnerships - The collaboration agreement with Tsinghua University has been renewed until June 30, 2027, allowing exclusive commercialization rights for the product[117] - The Group has a collaboration agreement with Tsinghua University that allows for the commercialization of a patented method for oral insulin formulation[137] - The Group entered into a second supplemental agreement with Tsinghua University to renew the collaboration arrangement until June 30, 2027[139] Risk Management - The Group maintains a prudent strategy in foreign exchange risk management, with no financial instruments used for hedging during the Financial Year[81] - The Group assesses contingent liabilities continuously to determine if an outflow of resources embodying economic benefits has become probable[28]
领航医药生物科技(00399) - 2024 - 年度财报