Financial Performance - The company reported revenue of HKD 143,233,000 for the year, a decrease of 22.5% from HKD 184,601,000 in 2022[10] - The net loss for the year was HKD 683,448,000, compared to a loss of HKD 88,159,000 in the previous year, indicating a significant increase in losses[10] - For the fiscal year ending June 30, 2023, the gross profit margin was approximately 73.8%, down from 79.8% in 2022, primarily due to rental and service fee reductions for over 275 tenants affected by the pandemic, totaling approximately HKD 23,025,000[29] - Other income and losses amounted to approximately HKD 28,476,000 for the fiscal year ending June 30, 2023, a decrease from HKD 33,156,000 in 2022, mainly due to the expiration of receivable loans[32] - The impairment loss on rental deposits was approximately HKD 19,247,000 for the fiscal year ending June 30, 2023, attributed to certain banks seizing parts of stores, increasing credit risk[33] - The group reported a loss of approximately HKD 683,448,000 for the year ended June 30, 2023, with a loss rate of 477.2%, significantly higher than the previous year's loss of HKD 77,683,000 and a loss rate of 42.1%[53] - The fair value of investment properties, including Jiachao Shopping Center, decreased by approximately HKD 720,225,000 during the year, compared to a decrease of HKD 162,651,000 in the previous year[53] - The group recorded an impairment loss on receivables of approximately HKD 184,361,000, significantly up from HKD 51,551,000 in 2022, due to increased credit risk from overdue loans[86] - The fair value of investment properties decreased to approximately HKD 995,699,000 from HKD 1,843,529,000 in 2022, reflecting a loss of approximately HKD 720,225,000 due to slowing rental growth[88] - The net loss from fair value changes of investment properties, after deferred tax liabilities, was approximately HKD 540,169,000, compared to HKD 121,988,000 in 2022[88] - The total equity of the group as of June 30, 2023, was approximately HKD 268,442,000, a significant decrease from HKD 1,012,424,000 in the previous year[69] Property Operations - Approximately 99.0% of the leasable area at the Jiachao Shopping Center has been rented out, with around 134 tenants operating retail stores, restaurants, and entertainment facilities[11] - The C Zone Shopping Center has approximately 95.0% of its leasable area rented out to 106 tenants, providing various services and products[24] - The company plans to enhance property operations by leasing to more well-known brands and diversifying tenant types to meet customer needs[16] - The company aims to explore potential investment opportunities in property operations, driven by China's large population and strong consumer power[16] - The company plans to focus on property operations to enhance shareholder returns and explore future market opportunities[38] - The group aims to expand its tenant base and enhance the shopping experience through marketing and promotional activities to generate stable revenue and cash flow[64] - The group plans to continue focusing on property operations and management services, leveraging its existing team to minimize additional operational costs while maximizing rental income[51] - The group plans to invest approximately HKD 203,000 in property, plant, and equipment, a substantial decrease from HKD 3,981,000 in 2022, suggesting a shift in capital expenditure strategy[101] - The group aims to leverage growth opportunities in the property operation market, particularly in Zhengzhou, a regional economic center in China[95] Cost Management and Financial Stability - The company continues to implement prudent cost management policies to improve operational efficiency and maintain a stable financial position[17] - The management believes that the company will achieve more robust performance in the future through strict cost control and financial planning[14] - The company aims to maintain sustainable financial performance in property operations and is closely monitoring the effectiveness of its strategic initiatives[45] - The group continues to implement strict cost control measures to manage operational costs and capital expenditures effectively[94] - Administrative expenses were approximately HKD 21,766,000, accounting for 15.2% of total revenue for the year, compared to 12.8% in the previous year, reflecting strict cost control measures[55] - Financial expenses were approximately HKD 43,761,000, representing 30.6% of total revenue, consistent with the previous year's 25.8%[59] Governance and Compliance - The company has established an audit committee, a remuneration committee, and a nomination committee to oversee its operations[164] - The company has committed to best corporate governance practices, adhering to the principles outlined in the Corporate Governance Code[153] - The company has established strict written guidelines for employees regarding trading in securities to prevent violations of insider trading regulations[154] - The board believes that the governance mechanisms in place are effective[186] - The independent non-executive directors confirmed their independence, with each serving a term of one year[155] - The company is committed to maintaining effective communication with shareholders through various channels, including web announcements and annual general meetings[1] Employee and Shareholder Information - The group employs a total of 144 employees across China and Hong Kong, providing competitive compensation and benefits packages[126] - The company has a total of 597,280,000 shares held by Chairman Chen Jin Yan, representing 22.21% of the issued share capital[138] - The company has a total of 369,100,000 shares held by Ms. Lin Lin, representing 13.73% of the issued share capital[167] - Mr. Chen Jinqing holds 188,315,000 shares, accounting for 7.00% of the issued share capital[167] - Dresdner VPV N.V. holds 139,755,200 shares, which is 5.20% of the issued share capital[167] - The group reported that the sales from the top five customers accounted for 29% of total sales, down from 30% in the previous year, with the largest customer contributing approximately 17% of total sales[146] - The group’s procurement from the top five suppliers represented 37% of total procurement, slightly up from 36% in the previous year, with the largest supplier accounting for about 14% of total procurement[146] Future Outlook - The company expects stable business development in the future, with a cautious approach to developing existing projects and exploring new opportunities[46] - The board anticipates that the reopening of the economy will positively impact sales and foot traffic in shopping malls, leading to increased tenant confidence and eliminating the need for rent reductions[68] - The board believes existing financial resources will be sufficient for future expansion plans, with the potential to secure additional financing on favorable terms if necessary[98] - The company has not purchased, sold, or redeemed any of its listed securities during the fiscal year ending June 30, 2023[147] - The company has reached an agreement with borrowers on a revised repayment schedule for extended loans, with the final repayment date set for January 31, 2024[176] Audit and Financial Reporting - The company’s financial statements for the fiscal year ending June 30, 2023, were audited by Kaiyuan Xinde CPA[177] - The financial statements for the fiscal year ending June 30, 2023, were prepared in accordance with statutory requirements and applicable accounting standards, ensuring a true and fair view of the company's financial position and performance[1] - The Audit Committee held a total of seven meetings during the fiscal year ending June 30, 2023, with attendance recorded for all members[195] - The Board of Directors reviewed the effectiveness of the internal control system and found it to be effective and adequate, with no significant issues affecting shareholders identified[197] - The Audit Committee assessed the risk environment and internal control procedures, concluding that the current internal control and risk management systems are effective and sufficient[196] - The company has no significant uncertainties that would cast doubt on its ability to continue as a going concern[1]
锦艺集团控股(00565) - 2023 - 年度财报