Financial Performance - The company reported revenue of approximately HKD 19.5 million for the fiscal year ending March 31, 2024, a decrease of about 46.5% compared to HKD 36.5 million for the fiscal year ending March 31, 2023[11]. - The company improved its loss to HKD 91.2 million for the current fiscal year, compared to a loss of approximately HKD 332.9 million in the previous fiscal year[11]. - The decline in revenue was primarily attributed to the market contraction in the environmental consulting services sector and adjustments in health product sales[11]. - The environmental consulting services segment generated approximately HKD 19.5 million in revenue for the year, a decrease of about 43.8% compared to HKD 34.7 million in the previous fiscal year[21]. - The health products segment recorded sales of approximately HKD 20,000, down about 98.8% from HKD 1.6 million in the previous fiscal year, primarily due to a focus on adjusting raw material sources and improving processing technology[23]. - The group recorded a loss of approximately HKD 91.2 million for the year, an improvement compared to a loss of HKD 332.9 million in the previous fiscal year, attributed to reduced sales costs and significant decreases in expected credit loss provisions[65]. - The group reported a net loss of approximately HKD 104,776,000 for the fiscal year ending March 31, 2024[187]. Cost Management - The company implemented cost-saving measures, resulting in a significant reduction in administrative expenses and a decrease in sales costs[11]. - The group's sales cost for the year was approximately HKD 9.6 million, a decrease of about 61.2% from HKD 24.8 million in the fiscal year 2023[55]. - Administrative expenses decreased to HKD 26.0 million, down approximately 15.5% from HKD 30.8 million in fiscal year 2023[59]. - Financial costs for the year amounted to approximately HKD 66.9 million, a year-on-year increase of about 35.5% from HKD 49.3 million, primarily due to overdue interest related to borrowings[64]. Market Conditions - The environmental consulting services industry in China is experiencing increased competition due to the government's relaxation of qualification controls and rising marketization[16]. - The government has introduced policies to support the development of the environmental consulting services industry, providing a broad market space for growth[16]. - The company is expected to benefit from the increasing emphasis on environmental protection and sustainable development, leading to a more favorable market environment[16]. - Future trends in the environmental consulting services industry include specialization, refinement, and the adoption of digital and intelligent technologies[16]. - The demand for healthcare products remains strong, with significant growth potential for imported health products as disposable income in China increases[19]. Business Strategy - The company aims to explore new business growth points while maintaining existing operations, with a focus on improving operational performance in the upcoming fiscal year[11]. - The company continues to invest resources to stabilize and develop its environmental consulting services amidst market challenges[21]. - The group aims to explore new business growth points while recovering accounts receivable to improve operational conditions in the next fiscal year[69]. - The company is expanding its health product offerings to include chewable functional snacks and dietary fiber products targeting the younger generation in China[23]. - The group plans to launch new health products, including a Japanese natto kinase dietary supplement, to attract demand from the younger generation in China[69]. Legal and Compliance Issues - The company is actively pursuing legal actions to recover outstanding receivables from downstream distributors in the publishing segment[24]. - The group is currently pursuing legal actions against borrowers and/or guarantors under the P2P business model[50]. - The company has engaged external auditors to ensure the accuracy and completeness of financial disclosures[187]. - The auditors expressed a disclaimer of opinion regarding the group's financial statements due to uncertainties about going concern[186]. - The company has acknowledged a delay in publishing its preliminary results for the fiscal year ending March 31, 2024, which constitutes a violation of GEM Listing Rule 18.49(1)[195]. Governance and Management - The board includes independent non-executive directors with diverse backgrounds in economics, finance, and media, enhancing governance and strategic oversight[107][110]. - The company emphasizes maintaining high standards of business ethics and corporate governance as a key objective[118]. - The board consists of six directors, including one executive director and three independent non-executive directors, ensuring a balance of power[125]. - The company has established committees, including an audit committee, remuneration committee, and nomination committee, to oversee specific areas of governance[124]. - The company has implemented training programs to reinforce ethical standards and compliance among employees[121]. Employee and Workforce Management - The group employed approximately 72 employees, a slight decrease from 73 employees as of March 31, 2023[102]. - The group maintains employee compensation policies at market levels, reviewed annually by management, based on responsibilities, performance, and industry practices[102]. - The group views its employees as its most important asset, providing regular training and development programs to enhance effectiveness[102]. - The company is committed to employee development, workplace safety, and sustainable growth, which are essential for attracting and retaining top talent[122]. - The board's diversity policy considers factors such as gender, age, cultural background, and professional experience to support strategic goals[155]. Financial Position - The group's total assets as of March 31, 2024, were approximately HKD 689.4 million, down from HKD 713.3 million a year earlier, with accounts receivable and other receivables decreasing to HKD 645.6 million from HKD 680.1 million[71]. - The group's debt as of March 31, 2024, was approximately HKD 584.6 million, a decrease of about 3.4% from HKD 605.4 million a year earlier, primarily due to currency exchange adjustments[73]. - Current liabilities exceeded current assets by approximately HKD 452,280,000 as of March 31, 2024[187]. - The group has outstanding borrowings of approximately HKD 584,634,000, with cash and cash equivalents of only about HKD 12,987,000[187]. Future Outlook - The company aims to recover receivables and other amounts through judicial procedures to improve operational cash flow and financial condition[192]. - The company is seeking further financing from investors, lenders, and shareholders, including shareholder loans, equity financing, and bank loans to enhance liquidity[192]. - The company intends to sell non-core businesses and/or financial assets to raise operating capital[192]. - Management has implemented several plans and measures to improve liquidity and financial conditions, although their success remains uncertain[191].
大地国际集团(08130) - 2024 - 年度财报