Financial Performance - The Group recorded total revenue of approximately HK$31,921,000, a decrease of 38.3% compared to approximately HK$51,708,000 for the corresponding year[15]. - Revenue from property sales was approximately HK$3,332,000, representing a significant decrease of 90.5% from approximately HK$35,198,000 in the previous year[15]. - Management fee income increased by 249.3% to approximately HK$20,471,000 due to the acquisition of three property management companies during the year[15]. - Rental income decreased by 37.3% to approximately HK$6,677,000 compared to approximately HK$10,650,000 for the corresponding year[15]. - The Group recorded a loss on revaluation of investment properties of approximately HK$62,958,000, an increase of 1,728.6% from approximately HK$3,443,000 in the previous year[16]. - The loss attributable to equity holders for the year amounted to approximately HK$222,262,000, compared to a profit of approximately HK$1,421,817,000 for the corresponding year[22]. - Finance costs decreased by 22.6% to approximately HK$40,218,000 due to the reversal of approximately HK$7 million in interest on other borrowings[22]. - Impairment loss on other receivables was approximately HK$36,154,000, primarily reflecting impairment loss on receivables due from the Disposal Group[22]. - The Group's cash and cash equivalents amounted to approximately HK$17,685,000 as of March 31, 2024, down from HK$35,083,000 in 2023[60]. - The Group's current ratio improved to 0.72 times as of March 31, 2024, compared to 0.67 times in 2023[60]. - For the year ended March 31, 2024, the Group recorded a net loss of approximately HK$222,262,000 and net current liabilities of approximately HK$355,132,000[105]. - The total borrowings, including amounts due to a shareholder and related parties, amounted to approximately HK$609,301,000, which will be due in the coming twelve months[105]. - Administrative expenses decreased to approximately HK$46.6 million, down approximately 14.2% from approximately HK$54.4 million in the previous period[104]. Property Development and Management - The Group is engaged in the development of high-end residential properties, contributing to its diversified property portfolio[13]. - The Company is actively involved in property management, enhancing operational efficiency and service quality[13]. - The Yinchuan Project includes a commercial portion with a gross floor area of 74,350 sq.m, fully owned by the Group, with phases 1 and 2 completed and available for lease[10]. - The Qinhuangdao Project has a total gross floor area of 672,110 sq.m, also fully owned, with phase 1 partially completed[10]. - The Group completed the acquisition of 100% equity interests in Ningxia Guanling and Wuhan Yuejing property management companies, with total property management areas of approximately 330,000 sq.m. and 73,816 sq.m. respectively as of March 31, 2024[30][33]. - The Yinchuan Commercial Properties Project consists of three commercial buildings with a total gross floor area of over 90,000 sq.m., achieving an occupancy rate of approximately 90% as of March 31, 2024[43][44]. - The total property management area managed by Ningxia Jinguan and Ningxia Guanling was approximately 551,800 sq.m. as of March 31, 2024[48]. - The property management business segment generated revenue of approximately HK$20.5 million during the reporting period, representing an increase of approximately 249% compared to the previous year[98]. - The management expects revenue from the property management business segment to increase to at least approximately HK$33 million for the year ending March 31, 2025[98]. - The Group's acquisitions are aimed at expanding its property management business amid a challenging property development market in China[30][33]. Strategic Initiatives and Future Outlook - The Company aims to expand its market presence through strategic development and investment in commercial properties[12]. - The Group is exploring new strategies for market expansion and potential acquisitions to enhance its competitive edge[12]. - The Group's strategic cooperation aims to establish a comprehensive and deep-level cooperation mechanism to promote the Qinhuangdao Project as a first-class health care and vacation demonstration city[35][39]. - The Group is exploring opportunities outside of China, particularly in the Southeast Asia region, which has high growth potential[84]. - Future development will depend on enhancing cooperation with financing institutions and government agencies to activate various projects[85]. - The Group plans to continue identifying and negotiating various financing options for working capital and commitments, including a memorandum of understanding with a potential investor for the Qinhuangdao Project[116]. - The Group is actively exploring investment opportunities in mainland China and Southeast Asia related to property development and upstream or downstream businesses[121]. Challenges and Risks - The Group has faced challenges in adapting to industry policies and market trends, leading to lower-than-expected fund usage rates and returns[79]. - The financing environment is expected to remain tight, with a focus on controlling capital flow and reducing liabilities[79]. - There are material uncertainties regarding the Group's ability to achieve its plans due to volatility in the property sector in Mainland China and uncertainties in obtaining continuous support from banks and creditors[124]. - The Group's income sources are primarily from property sales and rental income, posing significant challenges amid rising mortgage interest rates[83]. - The Qinhuangdao Project did not record any sales during the reporting period due to weak market sentiment and lack of capital investment[91]. Shareholder and Corporate Governance - The Board of Directors includes Li Yi Feng as Chairman and CEO, and Chen Wei as Vice President, ensuring strong leadership[4]. - The Company received annual confirmation of independence from each of the independent non-executive Directors[160]. - There were no interests or short positions in shares held by Directors or the Chief Executive as of 31 March 2024[162]. - The Company had no service contracts with Directors that are not determinable within one year without compensation[155]. - The Company maintained a sufficient public float as required under the Listing Rules throughout the year[191]. - The Group will not pay a final dividend for the Year, consistent with the previous year (31 March 2023: Nil)[146].
裕田中国(00313) - 2024 - 年度财报